How much does it cost to open a spa - The complete guide

Hey there, fellow entrepreneurs! Today, we're venturing into an exciting realm of relaxation, rejuvenation, and profitability. We're talking about opening a spa business, where tranquillity meets business savvy. If you've ever wondered about the costs involved in bringing your spa dreams to life, this blog is your ultimate guide. So, take a deep breath, and let's embark on this serene venture together!

Please note the costs stated are only used as a reference, they are subject to current inflation trends.

Create a vision that reflects your spa business dreams💭

Alright, my fellow spa enthusiasts, let's take a moment to imagine the splendid possibilities! Close your eyes and envision a tranquil sanctuary, a blissful haven where every care and worry fade away. That's the essence of your dream spa.

In 2022, the spa industry witnessed a remarkable surge in demand, as people sought solace amidst the chaos of the world. According to recent statistics, the global wellness industry recorded a substantial market value reaching a staggering £61.08 billion in revenue. This surge signifies that the wellness trend is here to stay and presents an incredible opportunity for aspiring spa entrepreneurs.[1]

It's also important to take into consideration the different spa models you could base your vision on:

• Day spa: Offers a range of pampering treatments and services in a serene setting, perfect for quick getaways from daily stress.
• Medical spa: combines medical aesthetics with spa therapies, providing non-invasive cosmetic procedures and advanced skincare treatments under medical supervision.
• Wellness retreat: focuses on holistic healing and wellness programs, offering activities like yoga, meditation, and detox therapies.
• Destination spa: provides all-inclusive wellness experiences in picturesque locations, ideal for long-term relaxation and rejuvenation.
• Resort/Hotel spa: found within hotels or resorts, offering guests convenient access to a variety of spa services during their stay.

So, it is important to cater to a diverse clientele to maximise your potential customer base. Your spa could offer an array of services from rejuvenating massages that knead away stress knots to skin-nourishing facials that leave a radiant glow. Embracing the latest wellness trends, you might even consider incorporating holistic therapies like sound healing or crystal energy sessions.

Remember, your vision is the driving force behind your spa's success. As you envision your oasis of tranquility, keep an eye on the latest industry trends and market demands. The spa-goers of 2023 seek more than just pampering; they crave a transformative experience that nurtures mind, body, and soul.

So, let your imagination soar to create the ultimate haven of relaxation that captivates and delights your clients, setting your spa apart from the rest.

Key elements to consider before opening your own spa business✔️

Alright, spatrepreneurs, it's time to lay the groundwork for your tranquil paradise! The foundation of your spa business is crucial for its success and longevity. Let's dive into the essential elements you'll need to bring your spa dreams to life.

Choose the perfect spa business space

Location is key! In 2022, the spa industry experienced a seismic shift, with urban and suburban locations witnessing a surge in demand. According to research, individuals tend to prefer salons and spa centres located within a 10-15 minute radius from their residence or workplace [2]. So, choosing the right location is critical to attracting your target clientele and driving foot traffic to your sanctuary of serenity.

Top tip: Read more about the 8 essential factors to consider on our blog about how to choose a new business location

Obtain your business license and permits before you provide any spa services

When it comes to launching your dream spa business, navigating the world of permits and licenses may not be the glamorous aspect that first comes to mind. Yet, it holds tremendous importance in setting the stage for a successful and hiccup-free journey in the spa industry.

While the process of obtaining permits and licenses can be a bit tedious, it is a non-negotiable step to comply with local and state regulations. Each region may have its own set of requirements, ranging from health permits to building permits, zoning clearances, and more. The good news is that by dedicating time and effort early on to acquire these essential documents, you'll be laying a sturdy foundation for your spa's operations.

Setting the right ambience and brand for your spa business

The ambience and interior design of your spa set the tone for the entire experience. Collaborate with skilled interior designers to create a welcoming space that soothes the senses and evokes a sense of tranquillity.

Branding is your spa's identity in a crowded market. So, invest in a compelling logo, create a well-crafted website, and an engaging social media presence to captivate potential clients and build a loyal community.

Top tip: Look for some inspiration by reading through our post which highlights different brand identity examples.

Remember, the foundation you lay today will determine the future success of your spa business. By staying attuned to recent trends and statistics, you can make informed decisions and ensure your spa stands strong amidst the changing tides of the wellness industry.

Equip your wellness centre with the right spa supplies🕯️

Welcome to the heart of your spa - the place where relaxation and rejuvenation truly come to life. Creating a blissful experience for your clients requires not only skilled therapists but also top-notch equipment and furnishings. Let’s explore how investing wisely in your spa essentials can elevate your business to new heights.

Massage tables are the cornerstone of any treatment room, and investing in ergonomic and adjustable options is essential. The average price of a professional-grade massage table ranges from £235 to £1,569, depending on the features and materials [3]. While it may be tempting to opt for cheaper alternatives, investing in durable and comfortable massage tables will pay off in the long run as they enhance client comfort and withstand frequent use.

Hydrotherapy tubs, saunas, and steam rooms are coveted spa amenities that can significantly elevate the guest experience. The average cost of installing a hydrotherapy tub starts at around £2,353, while a custom-built sauna or steam room can range from £7,845 to £23,536 or more [4]. While these investments may seem substantial, they offer immense potential for client satisfaction and can set your spa apart from competitors.

Lounge decor in relaxation lounges plays a vital role in allowing clients to unwind before and after their spa treatments. Comfortable furnishings like plush sofas, recliners, and cosy blankets create an inviting space that encourages guests to linger longer. A well-designed relaxation lounge can be achieved with a budget ranging from £2,353 to £7,845, depending on your spa's size and style.

Skincare equipment, such as facial machines, microdermabrasion machines, and LED therapy devices, is essential for delivering top-notch skincare treatments. The cost of professional-grade skincare equipment can vary widely, starting at £784.55 and going up to £7,845 or more for advanced multifunctional systems. Investing in high-quality skincare equipment ensures that your estheticians can provide effective and results-driven services to clients.

Once established in the spa industry, consider investing in laser hair removal equipment as it is a game-changer for spas. In 2022, the average cost of a professional-grade laser hair removal machine ranged from £9,414 to £27,459, depending on the technology and brand[5]. This cutting-edge equipment offers clients a long-term solution for hair removal, making it a highly sought-after treatment in the spa industry. With proper training and expert handling, your team can deliver exceptional results, attracting a loyal clientele seeking effective and convenient hair removal solutions.

Top tip: Boost your operational efficiency by investing just enough money into a spa POS system that allows you to control business costs more efficiently whilst empowering your spa operations with the latest technology.

By investing wisely in equipment and furnishings, you're not only creating an atmosphere of luxury and comfort but also setting the stage for memorable spa experiences that keep clients coming back for more. Embrace the opportunity to be a trendsetter in the spa industry, offering cutting-edge technologies and indulgent spaces that leave a lasting impression on your clientele.

Craft a perfect menu to showcase your spa services📖

This is where your creativity and passion for wellness come to life. Crafting a thoughtful and diverse menu of spa services is essential to cater to the unique needs and preferences of your clientele.

Start by understanding your target audience and market trends. Are you catering to busy professionals seeking a quick escape during their lunch breaks, or wellness enthusiasts in search of transformative retreats? By defining your niche, you can curate a menu that aligns with your spa's vision and your clients' desires.

Massage therapy

Massage therapy remains a staple in any spa menu and for a good reason. In the AMTA's 2023 survey, 47% of respondents listed massages as their top choice for relaxation [6]. Consider offering a variety of massage styles, such as Swedish, deep tissue, hot stone, or aromatherapy, to cater to different preferences.

Facial treatment services

Facials are another essential aspect of spa services. Customise your facials to address various skin concerns, from acne-prone skin to anti-ageing treatments, using high-quality products and advanced techniques.

Top tip: In order to meet the current market demand for medical-grade services, it would be smart to consider hiring medical aestheticians to carry out specific treatments.

Alternative and seasonal treatments

As wellness takes centre stage, consider integrating alternative therapies into your services menu. Offer yoga and meditation classes to promote mental and emotional well-being. Introduce mindfulness workshops, crystal healing, or sound baths to appeal to clients seeking holistic experiences.

Don't forget to incorporate seasonal or themed treatments to keep your menu fresh and exciting. Holiday-themed spa packages or seasonal ingredients in skincare treatments can add a touch of novelty and exclusivity to your offerings.

By staying attuned to the latest industry trends and customer preferences, you can continuously evolve and refine your services menu. Don't be afraid to experiment and seek feedback from your clients. Building a menu that resonates with your clientele ensures that they leave your spa feeling pampered, rejuvenated, and eager to return for more blissful experiences.

Building the dream team for your spa business🧑

Now that you've got the physical aspects of your spa in place, it's time to talk about the heart and soul of your business - your staff. Building the right team is like curating a group of talented individuals who possess the magic touch to create a transformative experience for your clients.

In 2022, the spa industry experienced a renewed focus on personalissed services and individualised care. According to a report conducted by Spa Business Magazine, spa-goers expressed a preference for spa operators who could tailor treatments to their unique needs and preferences [7]. This means that hiring skilled professionals with a passion for their craft and a deep understanding of customer preferences is more important than ever.

Top tip: With Epos Now's POS integrations, you can now set up automated SMS/email campaigns to remind the customer about their upcoming booking.

Step 1 - Hiring the right workforce to open a spa

When it comes to selecting your team, it's essential to prioritise qualities like empathy, attentiveness, and a genuine desire to provide top-notch service. The warmth and friendliness of your staff will go a long way in making your clients feel welcome and valued, fostering a sense of loyalty that keeps them coming back for more. Here's a list of the main employee roles in a spa:

1. Massage therapist
2. Esthetician
3. Spa receptionist
4. Spa manager
5. Spa business consultant (Ideal for business owners as consultants can offer valuable insights with specialized expertise in the industry)

Top tip: Read out our blog on how to find employees in the most efficient way

Step 2 - Provide ongoing training for your spa team

Consider investing in ongoing training and development for your staff. The spa industry is constantly evolving, with new trends, techniques, and products emerging regularly. Ensuring that your team stays up-to-date with the latest advancements will not only enhance the quality of your services but also inspire them to bring fresh ideas and creativity to the table.

Training also shows your willingness to invest in your staff and value them enough to go the extra mile to help them in their work. This boosts retention and morale in your team.

Step 3 - Create a healthy work environment to enhance your workforce motivation

Moreover, a harmonious and supportive work environment is crucial for staff retention and satisfaction. Encourage open communication, acknowledge their efforts, and provide opportunities for growth and advancement within your spa.

Top tip: Discover the full guide to how to manage employees to ensure you are ticking off all the boxes to drive excellence in teamwork.

To attract top talent, you can also consider offering competitive compensation packages and incentives. While budget constraints may exist, striking a balance between providing fair compensation and creating an inspiring workplace can help you attract and retain exceptional talent.

Read more about how to manage staff performance to improve productivity.

Market your own spa business efficiently🚀

Ah, the excitement of showcasing your spa to the world! Spa marketing plays a pivotal role in introducing your sanctuary of relaxation to potential clients and building a loyal community. Let's explore some key strategies to get the word out about your spa business.

Establish a strong online presence to showcase your spa services

In today's digital age, a well-designed website is your spa's online front door. Make sure your website is not only visually appealing but also user-friendly, with clear information about your services, contact details, and booking options. Optimise it for mobile devices to cater to the growing number of users who browse on smartphones and tablets.

Top tip: Read more on how to grow your online store organically to ensure you build a great site for your spa business.

Social media strategy to engage with your spa's target audience

Social media is a powerful tool for engaging with your target audience and amplifying your spa's presence. Create compelling content that showcases your services, shares wellness tips, and highlights the serene ambience of your spa. Collaborate with influencers or local wellness enthusiasts to expand your reach and gain credibility.

Listen to customer feedback to enhance your spa brand

Online reviews and testimonials hold immense sway in a consumer's decision-making process. Encourage satisfied clients to leave positive reviews on platforms like Google My Business, Yelp, and Facebook. Respond to reviews, both positive and negative, showing that you value feedback and are committed to excellent customer service.

Top tip: Learn all the Dos and Dont's by reading our blog about how to handle guest complaints to ensure you provide top-notch quality customer service.

Email marketing is a great way to nurture relationships with your clients. Send out regular newsletters featuring special offers, upcoming events, or wellness tips to keep your audience engaged and excited about your spa's offerings.

Create a spa business plan to highlight your financial projections📈

Alright, spa entrepreneurs, it's time to put on your financial hats and dive into the exciting world of financial projections. While it may not be the most glamorous part of starting a spa business, creating accurate financial forecasts is a crucial step in setting yourself up for success.

Spa startup costs

Start by estimating your startup costs. These include everything from renting a commercial space, purchasing equipment, acquiring licenses, marketing, professional fees and initial inventory. Be thorough in your calculations, considering both one-time expenses and recurring costs.

Operating costs in a spa facility

Next, project your operating capital. Factor in ongoing expenses like:

• rent
• utilities
• insurance
• payroll
• marketing

Ensure your revenue projections align with your expenses to avoid any cash flow gaps. And to ensure you maximise your spa profitability, read our blog full of top tips to reduce operating expenses.

Forecasting spa sales

Speaking of revenue, let's talk about sales forecasts. Analyse market trends, competitor performance, and your spa's unique selling points to estimate your revenue potential. Break down your revenue projections by services, retail products, and any additional income streams, such as workshops or events.

Top tip: An easy way to analyse all these different areas can be done by leveraging your POS data which is collected through your POS system integrations.

Keep in mind that business projections are not set in stone. They serve as a guide to help you make informed decisions and set realistic goals. Regularly review and update your financial projections as your spa business grows and evolves.

Securing operating capital funding

To secure funding or attract investors, a robust business plan with solid financial projections is a must. It showcases your commitment and preparedness, providing potential stakeholders with a clear understanding of your spa's financial viability.

Top tip: Become one of the thousands of businesses that already trust Epos Now and enjoy the benefits of Epos Now capital, our financing solution which has been designed to support SMEs financially up to £1M.

Embrace the art of financial planning, and don't hesitate to seek advice from financial experts or mentors. They can provide valuable insights and help you refine your financial projections. Remember, while the numbers may seem intimidating, they are essential tools in steering your spa business toward prosperity and longevity. With meticulous planning and a dash of financial know-how, you'll navigate the financial waters with confidence and achieve your spa business dreams.

Ready to relax?

Opening a spa is undoubtedly a labour of love, but with proper planning and a clear vision, it can be an immensely rewarding venture. We've explored the various aspects that contribute to the costs of setting up a spa business. Now, it's up to you to take the leap and create a haven of relaxation and bliss for your clientele. May your spa become a cherished destination for tranquillity and wellness! Happy spa-venturing!

If you wish to find out more about how Epos Now can help your dream come true, fill in the form below to get in touch with us!