How much does it cost to open a spa, day spa or massage spa?
Running your own company nowadays is not always the easiest thing to do, even though it’s become easier to start a business with the tools of the modern society – namely the internet. It acts as both a source for inspiration, as well as a knowledge bank where you can pretty much learn everything about anything, including how to start a spa of different types, and how much it costs to open a spa.
Now, onwards to answering the question: “How much does it cost to open a spa?”.
The short answer is: It’s impossible to say and give you an exact amount on how much it costs to open your spa.
Why? Because there’s dozens upon dozens of variables affecting what the spa start-up cost will be. And inside these variables there are even more complex layers that affect how much it will cost to open a day spa.
The long answer will be in the rest of this article where we will be covering what different variables there are that affects how much it costs to open a spa.
The definition of a “hard cost” is expenses that are directly connected to the facility such as:
– Construction or renovation of the facility
– Furniture, fixtures and other equipment
– Inventory and materials for professional as well as retail use
– Office supplies
– Administrative supplies
– All kinds of signage are included in hard costs
But even within these it’s not straightforward how much it will cost to open your spa. Will you for example rent a space in a shopping center, will you buy a plot of land and start from scratch, or simply take over an existing spa business and transform it into your own ideal image?
Another big factor is where you’re planning to start your spa business. The price can vary significantly depending on if you’re going to set up your spa business in an urban, suburban or rural environment.
As mentioned, there are dozens more hard costs to think about, and every miniscule detail is as important as the next one.
Soft costs are just as important as hard costs. They are referring to the expenses that come from the services and structural components required for your spa business to operate smoothly. Soft costs include:
– Professional fees: You need the help of an architect to lay out your space for maximizing revenue production as well as ergonomic flow; you need an interior designer to help you furnish and decorate your spa business to be inviting for your clients; a lawyer to review legal structures, contracts and agreements; an accountant to… You see where this is going.
You will simply need the help of experienced professionals who will be able to guide you in creating a fully functioning spa business out of your original vision. So, how much will this cost to open your spa? Once again, it’s impossible to say with the sheer amount of different ways to open your own spa.
– Subscriptions: To be able to run a smooth spa business you will need a few systems such as spa software that lets you handle transactional, client and inventory databases. Other necessary systems usually include such systems as a separate accounting software package, security system with cameras, and a subscription to some sort of payroll service.
– Miscellaneous: Additional items for marketing and support such as printed spa menus, blankets, towels, robes, staff uniforms and similar are also things to consider regarding how much it costs to open a day spa.
– Training: As you’re offering a service, one of the most important expenses will be in hiring the right staff. But unfortunately, they rarely arrive with all the knowledge they need to know for your business to run smoothly. Technical staff will need training on such things as product knowledge and treatment protocols. Support staff will need to learn the ins and outs of operating software, telephones and security systems.
It’s also recommended that the entire staff engage in team-building training and sales and service exercises.
– Operating capital: Last but not least (and probably the most important one) is a budget for operating capital. Once everything has fallen into place and the spa is designed, built and equipped with all necessary tools, and finally open, you will need a big enough budget to fund your daily operations for the time between when you opened your doors, until the day you will be able to generate enough funds to pay the bills out of the cash flow.
Want to learn how to start your own spa business?
Then contact Raison d’Etre today and let us help you. We offer both spa consultancy services and spa business courses online where you get to learn everything there is to know about the business, how to open your own spa, and everything there is to know about how much it costs to open a massage spa, day spa or luxury spa.
We’re not going to lie and say it’s easy to start your own spa, but we can guarantee you it’s a very rewarding experience. But, by using Raison d’Etres services you can make it much easier to understand what is required of you and get a good insight into how big the spa start-up cost could be.