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Spa Business Plan document sample
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CONSTRUCTING
YOUR SPA’S BUSINESS PLAN
Focus on Potential and Opportunity — Generate Interest and Excitement!
BY LESLIE LYON
Whether you are just starting up your Spa, or you Plan elements:
are a seasoned veteran, you need to have a Business 1. Who are the individuals on the team responsible
Leslie Lyon began her Plan. At some time or another, you will require for building and sustaining the business?
career in the Health and either outside financing; a lease agreement; be 2. What will it cost?
Beauty Industry 25 years
considering a partnership; or even looking for 3. Where are you positioned in relation to your
ago and today enjoys her
profession as an investors. To achieve any of these, a formal business offerings and opportunities?
International Consultant, presentation outlining your business objectives and 4. Why will your plan succeed – identify
Educator, Speaker and strategies must be in place. capabilities and strengths
Writer. Leslie is the
5. When will you begin to see break-even, growth,
Founder and President of
Spas2b-Lyonshare But a point not to be overlooked, is that the value profit?
Consulting, which is a full- and benefits that come to you as the Owner, from 6. How will you start, monitor, sustain and exit the
service Spa Development doing the research and constructing a viable Business business?
and Training company
Plan, are often the most important.
based in Waterloo, Ontario,
Canada. Leslie teaches A Business Owner needs to always have a clear In an effort to construct a focused, realistic Plan,
Spas2b Certificate picture of the company’s past, present and future. we can sometimes forget to infuse our personality…
Courses, which range from our creativity… our PASSION! Although the Plan
1 to 5 days and offer an
Pssst…. needs to be thorough and sensible, it should also
energetic and enlightening
mix of business systems Often, compiling a Business Plan takes a team of showcase your talents and unique slant on life – after
and life strategies. individuals. You may wish to purchase a Business all, it’s one thing to fill a need, it’s another to fill it
Students travel from Plan prototype and even require outside assistance with FLARE and turn it into a commodity!
around the world to
from professionals in marketing, finances and
experience Leslie’s unique
style of teaching, business creation. A common pitfall, or “catch 22”, So, let’s begin at the beginning. Start with the
described by some as is that in these formative stages of developing the Cover Page (Business Plan Title, the Date, Company
“mind, body, soul and Plan, funds are often not yet available and it is Legal Name, Company Logo and full contact
spirit” seminars.
therefore difficult to pay for the assistance that you information). Be sure to make it eye catching! Next
Recently, Spas2b was may require. To ease you through this process, it you will need to compile your Table of Contents.
awarded Top Honours from may be prudent to secure a small pool of funds for Use the points as set out below to guide you through
Day Spa Magazine as the this purpose. this process.
course of choice in their
“Real World Results”
Business Class Survey. Your Business Plan should focus on potential and 1. Defining Statement - Your Business Idea &
opportunity, while generating interest and excitement Goals
You can contact Leslie in those you are targeting. And whom are you Here’s where you outline the opportunity and your
Lyon at 1-519-585-0626,
targeting? philosophy. You’ve found a need, and you now need
llyon@spas2b.com, or visit
the website at 1. If it’s a Lender you are presenting your Plan to, to demonstrate how you plan to fill it. Talk about
www.spas2b.com. he/she will want to see profitability and payback your Caring Culture; the Mission Statement; the
potential, with a break-even analysis. They will “Opportunities of Employment” you will make
also expect to see collateral and cash flow to available at your place of business; and your friendly
secure the loan; Staff Policies. Without giving too much away, touch
2. If you are targeting an investor, you will want to on your proprietary advantages; trade secrets and/or
demonstrate the ability for growth in both sales business benefits that will give you the edge you need.
and profits, as well as providing a good return
on investment; 2. Industry Background
3. A prospective partner or promising individual to This shows that you have done your research.
help form your management team will want to Provide a history and overview including:
see a sound strategy, good company • Features and industry highlights
management and potential for personal growth • Size of the industry - expected volume of sales
and profit. trends & growth factors
• Challenges – Vulnerabilities - Seasonality
No matter whom you are targeting however, always • Observations and opportunities and future
remember to align your strategies with the six basic growth potential.
58 SPA CANADA MAGAZINE
CONSTRUCTING YOUR SPA’S BUSINESS PLAN
3. Target Market Research
Developing your target’s profile will instil a strong 5. Your Competition
sense of security into the reader. If necessary, use the Know your competition and their 4 P’s – Pricing,
services of a marketing professional who is familiar Product, Promotional Techniques and Placement.
with the industry. Outline what your competitive advantages will be
• Demographics cover such topics as gender, (quality, convenience, innovation, expertise). The
marital status, age, education, and income; reader will also want to see that you have considered
• Psychographics provides an understanding of the risks. Describe possible obstacles; competitive
their habits, lifestyles and personal preferences disadvantages and what challenges or barriers you
(where they shop; what they read, watch and might face. Finish, however, by outlining your
listen to; how they spend their spare time); tactics for gradual market gain and overcoming those
• Geographics will provide information on location obstacles.
and competitive influences in and surrounding
your area. 6. Operational Plan
Includes drawings, blueprints, renditions, the size
4. Marketing Strategies of the facility, room’s layout, your mix of services,
Your marketing strategy will demonstrate how you traffic flow and even your maintenance requirements.
will reach your target consumer and what your image As well, having the “behind the scenes” structures,
and message will be. Discuss the marketing vehicles practices and protocols in place, helps to solidify
you will use: your commitment to the project and your ability to
• Print – Newspapers; Magazines; Website, manage the business. Include your Purchasing Plan -
eNews; Brochures products, equipment & technological requirements
• Broadcast - TV, Radio needed to service the menu, as well as a preliminary
• Talk about your Public Relations Plan, Media Menu of Services. Any information available on
Events and gathering Publicity Guest Services and Handling; Facility Maintenance;
• Describe your ongoing sales strategy: Policies and Procedures and your Reporting and
• Business alliances - Community involvement Monitoring Systems will be of benefit.
• Packaging and pricing structures,
promotional events and campaigns.
SPA CANADA MAGAZINE 59
CONSTRUCTING YOUR SPA’S BUSINESS PLAN
7. Management Outline Balance Sheet
Draw up an Organizational Chart. Provide your • Annual Statements outlining Company Assets,
personal profile, indicating what you have already Liabilities and Owners’ Equity for business
researched and invested. What milestones have you year’s 1-5
achieved? What are your strengths, talents, goals
and objectives? Provide references. List other key Income Statement
management positions such as Principals, Managers • Projected Profit and Loss for business year’s 1-5
and your Board of Directors. Provide profiles,
experience and expertise.
Cash Flow Statement
8. Staffing-Up Plan • Monthly Projected Cash Requirements
What are your staffing requirements and what is • Annual Statements outlining Inflows and
your logic on staffing up? Provide individual Outflows for business year’s 1-5
profiles; required experience and expertise; Job
Descriptions; Evaluations Systems; and Staff Financial Ratios & Graphs
Compensation Structure. • Utilizing established industry benchmarks,
ratios will help to determine if your business is
9. Legal Structure (capable of) meeting and/or exceeding
This includes Business Ownership; Insurance standards.
requirements; Business Taxes; Business Registration; • Categories of ratios include Liquidity Ratios;
Licenses and Permits and Employment Standards and Profitability Ratios; Leverage Ratios; and
Legalities. Operating Ratios, including Key Performance
Indicators such as Percent Utilization; Average
10. Financial Structure
Ticket Price, etc.
This process may seem overwhelming, but it is the
most important component of your Business Plan
and must be carefully thought out and delivered. Breakeven Analysis
Your Financial Plan sets expectations, monitors • Predicts sales volumes required to cover the
progress; guides decisions; and displays results. cost of doing business
Whoever your audience is, your projections for • Clarifies how long it will take to start
revenue, growth and profitability are the main factors operating at a profit.
being considered. You may need to engage the
services of a Professional, but in doing so, you will be
assured that your Plan will be creditable and realistic Business Risk Assessment – Exit Strategy
- therefore saleable. This should demonstrate your ability to anticipate
and handle potential business risks and a possible
Personal Net Worth Assessment “Plan B” process. This may be required due to
• Are your personal finances in order? increased competition; fluctuating industry demands;
negative economic impact (recession); supplier
Business Assumptions (for Start-Up)
problems; staff challenges, etc.
• Complete site set up requirements
• Products, equipment, furniture & fixtures,
technology
• Required financing – Sources and allocation Your Business’ sustainability needs to be well
of funds planned. Don’t be intimidated by this important
assignment. The process and end result will not only
Staff Payroll Projections give you a soaring sense of accomplishment, but will
• A helpful tool in designing and managing propel you to a new level of knowledge,
your payroll model in relation to gross understanding, expertise and confidence – all
revenue. characteristics of a Successful Business Professional .
. . and that’s YOU!
Monthly Sales and Cost of Goods and Services Sold
Projections
• A clear demonstration of monthly sales SPAS2B IS OFFERING A
projections vs. monthly costs associated to **NEW 2-DAY BUSINESS PLAN COURSE**
making those sales. IN MAY, 2006
60 SPA CANADA MAGAZINE
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