9 Strategies for Starting a Spa Business


Demand for spa services dropped during the COVID-19 pandemic. According to a 2021 assessment of the US spa business by the International SPA Association (ISPA), revenue and spa visits dropped by more than 35%. However, the spa business is making a comeback. Consumers are becoming more concerned with their health, stress relief, and mental health, which is driving up demand.

Starting a spa business by using tried and tested strategies in the industry may come in handy. It will give you leverage over competitors. Let’s explore some strategies for starting a spa business.

1. Craft a Business Plan

Before looking for a place and setting up your spa, you should write a business strategy. This is the first step toward launching a successful spa. A business plan is helpful if you want to seek outside funding. To begin, you may encounter a flurry of unanticipated challenges. This is usually a result of your business’s low credit and financial concerns.

As a result, a well-prepared plan can act as a road map for the success of your spa business. Consider your spa’s mission, revenue goals, and budget projections, among other things. The plan should be three to five years in the future and include a revenue-growth strategy. A good spa business plan should include the following elements:

  • Company description
  • Executive Summary
  • Organization and management
  • Market analysis
  • Services and products
  • Marketing and sales strategy
  • Financial forecast

2. Figure Out What Spa Equipment You’ll Need

Before you begin, determine how much equipment you’ll need based on the size of your spa and the services you offer. The reserved space for the bathtub and other fixtures will determine the type of equipment you source. So, you could choose spa tables, counters, and copper tubs with different ranges of inches to fit your space. But, the color and design of these pieces of equipment, especially the copper tub must blend flawlessly with the whole bathroom space.

You must also consider soundproofing the spaces alongside guest showers and lockers. You may also need the following items to start a spa business:

  • Massage tables or chairs
  • Linens
  • Towel warmers
  • Face and eye masks
  • Shower supplies (soap, conditioners, shampoo)
  • Massage oils, incense, candles, and essential oils

Conduct thorough research into your industry’s specific niche. Make a list of the equipment you’ll need before starting your business. You should also consider what you might be able to get later if space and funds permit.

3. Find the Ideal Location

Choosing the perfect location for your spa business is exciting and crucial to its success. Your spa needs to rent a suitable location. Before settling on one, you should conduct extensive research.

Determine a location that will appeal to the audience you are targeting. For example, locating your spa in a remote region will be helpful if you plan to provide outdoor services.

Furthermore, renting strategic spa locations would make your buildings more comfortable and welcoming to customers. The location of your spa and the type of community that fits your budget and lifestyle sets the tone. The majority of people assume that the location of the spa is insignificant. However, this is a must if you have the funds and are experiencing difficulties that need immediate attention.

4. Determine the Target Customers of Your Spa

Prospecting takes a lot of effort, and identifying your target clients takes a long time. Spa customers will likely leave a review of the firm, regardless of the services they received. They also provide input based on their experience and comfort level in the environment. Thus, before launching a spa business, you should conduct a consumer survey to determine which spa services will be a good fit for them.

Consider their preference in services, acceptable pricing, and personal preferences. If you plan to open a spa in a posh neighborhood, keep in mind that you’ll need equipment that appeals to that clientele. To make your spa look more luxurious, you can get copper bathtubs or copper clawfoot tubs.

5. Recruit and Hire Professionals

Nothing compares to knowing that your customers appreciate you. A spa visit is about giving your clients a top-notch experience and leaving a lasting impression. It’s vital to hire professionals to ensure that clients have a relaxed day. When you start, you can hire a small team and do most of the work yourself. But as your business grows, you’ll need to hire more employees to help with specific responsibilities.

Hiring excellent professional therapists, estheticians, and technicians is critical to providing outstanding services to your clientele. The massage rooms are only the beginning of a customer’s experience. The people at the helm of your company determine how nice and comfortable they are.

6. Consider Your Spa’s Unique Products

If you’re not sure which products are appropriate for each season, start with the best-selling ones and expand as much as possible. This will ensure that your company runs smoothly throughout the year.

If you match their wants, customers are more inclined to buy items that remind them of their visit. To improve your spa’s image, give them high-quality items. It also creates a look that has the potential to leave a lasting impression.

7. Choose the Right Spa Management Software

You must be versatile when launching a small spa business. You’re the marketing manager, HR manager, and accountant, besides being a massage therapist. Correct spa management software can ease this administrative burden.

Technology is the way of the future. According to research, scheduling software in businesses like spas increased customer satisfaction by 52% and improved marketing and sales by 30%. A decent spa scheduling software will relieve you of a few responsibilities. It will make your job easier and boost the quality of the customer experience. Some of the tasks you can perform using spa management software include:

  • Taking online appointments
  • Online payments
  • Managing staff
  • Client database

8. Estimate Start-Up Costs

Budgets are the most crucial aspect of a startup. Calculate the entire cost of beginning a new day spa business while keeping this in mind. You will need a variety of expenses to get the spa up and running efficiently.

Moreover, you’ll need to know everything from infrastructure prices to furniture and fixtures. You’ll also need to be aware of the pre-opening charges like marketing and professional graphic designer fees. Make a rough estimate of all these items, excluding incidental expenses.

9. Know Your Competitors

A successful entrepreneur is well-versed in their industry’s competition. Find information about the day spas in your city and the nearby areas. Visit the company’s website or social media profiles to learn more about the business. If at all possible, pay a discreet visit to these spas and observe the activities and customer service they provide. Have access to their service menu so you can figure out what other services your spa can provide to stand out from the crowd.

Take Away

Examining these strategies can offer valuable information to aid in your spa business decisions. Even if the information you choose does not reflect your initial beliefs, you will be conscious when you open your spa.

Your spa business will thrive if you understand the target market and your competition. Make sure the spa’s location is ideal, with enough parking space, and aggressively promote your unique spa services.