Making A Spa Business Plan
The Philippines is one of the leading countries for spas. If you, too, want to put up your own spa, it would be best to first have a business plan. Having a well-made business plan may mean the difference between success and early bankruptcy for any start-up. With the tight competition, it would be unwise to just muddle along without a plan.
What is the purpose of the business plan? Is it for internal purpose only or would you need it to get a loan from a bank? Avoid analysis paralysis and getting bogged down on excessive details. Have a tentative deadline for the planning process in order for it not to take too long.
The following is a condensed guide on how to write a business plan for a spa:
Executive summary. This is a brief summary of the entire business plan. The writing style here would depend on the purpose of the business plan. For example, if it is to attract investors, the narration must be compelling enough to encourage them to invest in the project.
Company overview. This will showcase the capabilities of the company to pursue the business. The legal structure of the company is described, along with the management team and qualifications. Would it be a sole proprietorship, a partnership or a corporation? Write the inherent qualifications and strengths of your management team.
Service and product offering. What types of massage would you offer? Would there be other services, like facials? These questions also apply to products that may be sold. Decisions here would affect the basic structure of the spa, especially its costs. The more products and services, the higher the capital requirement would be; you need to be very careful that you can afford the offerings.
Marketing plan . This part deals with the major factors that affect marketing and sales. The most crucial would be your market analysis. Have a clear idea of what kind of customers you wish to target. This would affect the type of spa you should offer and also whether the location is feasible. Indicate here the intended prices for your products and services. Write the promotional strategies you plan to use as well.
Competitive strategy . Look at how you plan to beat your competition. There are many ways to find a competitive strategy. For example, if you intend to focus on the lower class market, then be aware that they would be more price-sensitive and that you may try to compete by being the lowest priced spa. You could also come up with innovative services for which you could charge a premium price.
Financial projections. This part will put into peso terms the previously discussed aspects of the plan. The capital needed to start and finance the company’s growth must be estimated and shown here. Projected financial statements like balance sheets, income statements, cash flow, budgets, etc. are fleshed out in this section. Normally, the financial projections are among the last things discussed in the business plan for they depend on the desired service and product offering, marketing plan and competitive strategy.
Making a business plan is easier than you think. However, before embarking on writing the plan, you should gather more information from those who have actual experience in the spa business.
To know more about the spa business, BusinessCoach, Inc., a leading business seminar provider, will be conducting a seminar entitled, “Starting a Spa Business.” Contact (02) 727-5628, (02) 727-8860, (0915) 205-0133 or visit www.businesscoachphil.com
Click here to view details of the seminar: Starting a Spa Business »
*Originally published by the Manila Bulletin. C-4, Sunday, June 30, 2013. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.