Spa Design Spa Income

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					SPA MANAGEMENT                                      SPA DESIGN
                                                         WHEN IS THE RIGHT MOMENT TO BEGIN

                                                                   Spa Design
  Sam is involved in the SPA market
                                                                   Spa Income
  since 1996. He is regularly invited                                                   By Sam Magulies
         as a keynote speaker at the

                                                      very time I am being contacted by a          yet a business plan or a space. Some even develop a
                 ESTHETIQUE SPA                       person who has a spa project, one of the     business plan before knowing what kind of services
        INTERNATIONAL shows in                        first questions is: “when is the right       they want to offer to their clients…
    Canada, as well as in the United                  moment to begin to work on the
     States at ISPA, SPACIFICALLY,                    conception and design?”                      From a wish list to the business plan
             SPA & RESORT EXPO,                                                                    In most cases, people begin with a wish list,
     MEDICALSPA CONFERENCE.               The truth is that the design of the spa is the element   knowing what kind of treatments they want to offer
            He is writing articles for    that will have the most dramatic influence on the        to their clients. They create a business plan, and
          professional magazines as       business aspect of the spa. When I say design, I am      then look for a space. The problem is that to develop
      SPA MANAGEMENT Journal,             not talking about the colors on the walls or about       a business plan that makes sense, you need to know
                                          the type of flooring used. I am talking about the        how many treatment rooms will fit in the space,
                                          conception of the structure, the floor plan if you       including all the other spaces necessary to allow the
       MEDICAL SPAS Review, and
                                          will.                                                    treatment rooms to operate properly. Without these
    others. He was a member of the
                                              Most of the time, a spa project begins with three    elements, your business plan will not reflect your
                         jury for the
                                          elements: a business plan, a wish list and a space.      real business potential.
     "2002 SALON OF THE YEAR"             Some people have a space before having a wish list           For example, if you base your business plan on
         organized by the magazine        or a business plan, while others know what they          10 treatment rooms at 85% utilisation rate and end
   SALON TODAY. He is recognized          want to propose to their future clients but don’t have   up with a space that will not allow more than 8
   as a world leading expert in SPA
             conception and design.

              For more information,
                      please contact:

                ATMOSPHERE SPA
                     Sam Margulies
                 Tel: (514)332-8941
                Fax: (514)332-5413
                Cell: (514)219-7401

                                         SPA MANAGEMENT • February 2004                                                   
                                                                               SPA DESIGN
 rooms at only 65% utilisation rate, your potential        have also an idea of the type of treatments they
 income will be about 40% lower than your                  want to offer to their future clients. In many cases,
 expectations. At that point, you won’t be able to         they also have a business plan they developed even
 make the kind of income you thought you would,            before finding the location, but now they don’t
 and your investors and bankers will lose their            really know if the location can support their
 confidence in your business skills.                       business plan.
     In the case you have the wish list, before                At this point, it’s not possible to push the walls
 developing an unrealistic business plan, seat with        of the space. The spa designer need to assess the
 your spa designer for a couple of days. He will be        real possibilities of the space, and help the spa
 able to create with you the profile of your project       owner to revisit the wish list and set priorities as
 based on your wish list. This will help you develop a     needed.
 constructive business plan based on your wish list,           It is only after this exercise that a surface plan   It is not just the location
 with real projections with a realistic knowledge of       can be conceived and that an accurate business
 costs and potential income, as well as giving to you      plan can be recreated.                                   that makes the difference,
 the right direction to find a space that will support
 your business and not limit it.                           Maximizing the potential income                          but how the interior
                                                           It is not just the location that makes the difference,
 From the business plan to the right location              but how the interior architecture is conceived and       architecture is conceived
 When you have a business plan ready, you begin to         designed. A few months ago, a plastic surgeon sent
                                                                                                                    and designed. A few
 look for a location and a space that will fit the needs   me the plans of his future medical spa that had
 of your business plan.                                    been designed by a well known architectural firm.        months ago, a plastic
     Here too, you have to make sure that the location     After redesigning the plans within the same space,
 will support your business plan. If this business         the potential income of the new plans was raised by      surgeon sent me the plans
 plan is based on 20 treatment rooms, it means that        239%!!
 most likely, you will need also locker rooms,                  It is important to understand that it is not        of his future medical spa
 relaxation room, utility room, staff room, etc… in        always the highest number of treatment rooms that
 order to support an acceptable utilization rate of        will create the highest income.                          that had been designed by
 your treatment rooms. But how do you calculate the             It is the usability rate of each treatment room
 square footage needed for the locker rooms? Does it       that makes the difference. In order to reach the best    a well known architectural
 depend in the total dimension of the spa, does it         usability rate for each treatment room in your spa,
 have something to do with the number of treatment         your spa designer must conceive the plans                firm. After redesigning the
 rooms or does it depend in the mood of the                incorporating the correct amenities for the
                                                                                                                    plans within the same
 architect?                                                structure, creating the best traffic flow with the
     If you project to have water treatments, or if you    right supporting spaces. In general, the bigger the      space, the potential income
 want just your clients to have the possibility to take    spa is, the smaller proportionally the supporting
 showers, you might need to think of space for the         spaces need to be while including more purposes. It      of the new plans was raised
 utilities, including hot water tanks big enough to        might sound somewhat complicated, but when
 fulfil the needs of the spa.                              your spa designer knows what he does, it is pretty       by 239%!!
     In other words, for every square foot in your spa     simple.
 that will directly generate income, you need to
 calculate some more surface that won’t generate           Design your return on investment
 direct income, but without which your structure           Compare to most other types of retail and
 would not be able to operate correctly.                   service oriented businesses, a spa requires a
     A couple of days with your spa designer will help     higher up-front investment.
 you define the type and the dimensions of the space           This investment is calculated in: COST / SQ.
 you will need in order to support the projections of      FT., so you need to be able to calculate the return
 your business plan, and give you the right direction      on your investment the same way: INCOME / SQ
 to develop the kind of business that you expect to        FT.
 have.                                                         So make sure that your spa designer will
                                                           combine in the conception and design of your
 From a specific location to the business plan             spa a treatment approach, an aesthetic sense, as
 Most of the time, people have a location, and they        well as a business perspective. n                                                            February 2004 • SPA MANAGEMENT

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