Starting up your own business is in most cases an easy process, especially in today’s society where we have access to countless sources of knowledge banks via the internet, where we can learn pretty much everything about anything.
No, the hard part isn’t creating a business, the hard part is creating a successful one where you can make it flourish and grow in both size and revenue throughout the years.
In this guide we will cover the necessary steps you need to take in order to start your own successful luxury spa or day spa and how to make it flourish and appeal to the high-end customers looking for a luxurious spa to relax. Starting and owning a luxury spa business will be challenging, but it will also be a rewarding experience with its own unique perks.
The 6 steps you need to walk through to create a successful luxury spa business
Step 1: Create a business plan
The first step of starting a luxury spa business, or any business for that matter, is mapping out a business plan. A business plan is in essence, a guide – a roadmap that outlines your goals and details about how you plan to reach those goals. A business plan includes:
- A list of the services and complementary services you want to offer at your luxury salon
- The type of luxury spa you want to create
- A list of equipment you will need to start with, and what you need later on to help the business grow
- A detailed description of your target audience
- Employees you need to hire to run your luxury spa
Here are the reasons why you need to create a business plan for your luxury spa or day spa business:
- A plan is essential if you’re seeking a loan or financial support for your luxury spa business. It shows you have a well-structured model and allows potential investors, partners and supporters to get a good insight into your business, and how you plan to grow and tackle obstacles.
- Research shows that a business plan will help a business grow 30 percent faster.
- You’ll be able to make big spending decisions for your luxury spa with confidence since you’re going to have better information and a good overview of the potential of your business.
- Having a business plan minimises your risks as you have a solid ground to stand on and a clear path and direction in which you are heading.
- A business plan for starting a luxury spa is a solid foundation for strategic planning and prioritisation, such as setting out what spa equipment you will need to begin with, and what you will need to invest in down the line.
- It will help you set clear and achievable goals and milestones for your luxury spa business.
- If you ever want to sell your luxury salon down the line, a business plan is an asset which will help you make the case for a higher valuation, since it allows potential buyers to better understand your business model, target market and overall potential and growth aspects.
Here is a generic template of how a luxury day spa business plan could look like.
Step 2: Determine a market strategy
Follow-up the business plan with a marketing strategy for your luxury spa business. A well-defined marketing strategy, targeting high end customers, will help put your luxury spa business on the map and attract customers as well as potential partners, investors and supporters.
The type of marketing strategy you’d like to invest in is up to you, as there are dozens of different marketing options for the spa industry out there:
- Social Media
- Video tutorials
- SEO (Search engine optimization)
- Ads on Facebook and other social media
- Affiliate programs
- Email marketing
- … and many more
As we’re in the age of the internet, we suggest something along the lines of social media marketing, email marketing or SEO. The ideal marketing strategy would be a mix of all of them to cover all the bases and maximize your reach.
Step 3: Find an attractive location for your luxury spa
This is one of the trickier steps, as it can be quite difficult finding a location for your luxury spa resort that ticks all the boxes. Things you should think about when choosing a location are:
- Easy accessibility
- Close to your clientele
- A lot of parking space for your customers to park since they will be spending hours enjoying your services
- A relaxing and attractive environment to reflect your luxury day spa business and give your customers a holistic experience
- A spot in the center of activity
We would suggest getting in contact with a local real estate broker and seek their advice on what the best spot for a luxury salon would be. The better the spot, the better visibility, which in turn will save advertising expenses.
Step 4: Gather funding
The start-up cost to open a luxury spa might not come cheap, depending on what size and the type of luxury salon you are planning to open. To stay ahead in a very competitive scene and to attract new customers, you need to offer both a wide variety of luxury spa services of the highest quality, as well as the markets best tools, equipment, staff and supplies.
You will need a significant start-up capital to pay for the following:
- Your lease
With a concrete business plan, you will increase your chance of attracting investors, supporters, partners or getting your bank loan request approved to gather the funds you need to start your dream luxury spa.
Step 5: Create the perfect luxury spa environment and customer experience
The best customers are the ones that return. To achieve this, you need to provide your high-end clients with an amazing experience every time they visit your luxury spa establishment. The most successful luxury spas always keep a line of communication open between themselves and their customers, receiving feedback on what’s good and how they can improve the experience for the clients.
Your goal as a luxury day spa is to create a holistic experience based on your customers needs and demands, and create the perfect prerequisites for them to relax and give them an overall enjoyable experience.
Here’s a few tips on how you can create the great experience your high-end customers desire when they visit your luxury spa:
- Provide extra amenities for your customers convenience and enjoyment, e.g. lockers, fitness rooms, gift shop
- Sound-proof your rooms to create a quiet and relaxing atmosphere
- Invest in high-quality equipment and keep it maintained to provide luxurious treatments
- Buy high-quality materials, products and supplies
- Create a flexible establishment where you can adjust lighting and music according to your customers’ needs and demands
Step 6: Hire professional staff
Last, but not least: hire professional staff.
A luxury spa business is all about human treatment and interaction with high-end customers. This means you will need to hire professional staff who are experienced and trained in handling a wide variety of clients from a rich background.
Your clients will have certain standards based on their previous experiences and will expect a high-quality service, where you and your staff must be prepared to meet these expectations.
Your team is your luxury day spa business face outwards, they need to be skillful enough, and possess the right attitude and temperament to be able to reflect your luxury day spa business, in the best way possible. Be selective in your hiring process and perform careful interviews and tests to find the best and most professional staff out on the market.
Contact Spa Business Education by Raison d’Etre for more information
Follow these steps and you will be able to create the luxury salon of your dreams and be able to compete with the best in the spa industry.
Contact Spa Business Education by Raison d’Etre today for more information and enroll in our spa management course to take the next step in your spa career. Our course gives you all the tools, strategies and inspiration for you to start up and run your own luxury spa salon and become a spa manager with confidence and ease. You’ll learn all about the spa industry, the best luxury spa treatments on the market, luxury massage therapy and more. You can also find more information about us; our spa consultant services, how to open a luxury day spa and other kinds of spa businesses directly here on our website.