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Beginners Guide to Starting or Expanding your Spa 1
start or expand
beginners guide
Beginners Guide to Starting or Expanding your Spa2
introduction
the potential for growth
step01: the business model
step02: finance matters
step03: location
step06: your defining offering
step07: your suppliers
step08: organising the spa
step09: layout
step10: ambiance
step11: the perfect setup
step12: staff
step13: marketing
step14: Other important factors to consider
conclusion
step04: keep your enemies close
step05: revenue vs non-revenue areas
The Wellness tourism industry which involves relaxation, beauty treatments
and health maintenance is booming in sub-Saharan Africa. According to the
SRI, the Stanford Research institute, a non-profit research organisation
which publishes the Global Spa and Wellness Monitor report, the years from
2007 to 2013 saw the demand increasing some 186%.
According to South African Tourism, for the region’s spa market, South Africa, Kenya and Seychelles were the top-three countries in terms of revenues received, and South Africa, Kenya and Mauritius had the highest revenue for the region’s wellness tourist market. This involved 4.2 million wellness trips with visitors spending $3.2 billion on wellness. This was a $575-million increase over 2012.
In September 2014, according to a report released by The Global Spa & Wellness Summit the con-sumer demand for wellness services and products is at an all-time high, with the report showing that the global wellness market is now worth $3.4 trillion, making it three times larger than the $1 trillion worldwide pharmaceutical industry.
Conducted by the independent, non-profit research firm SRI International, the study confirms wellness as one of the world’s largest and fastest-growing industries. To assess the size of the industry, SRI identified and evaluated ten major wellness sectors: alternative and complementary medicine; beauty and anti-aging, fitness and mind-body, healthy eating, nutrition and weight loss; preventative and per-sonalized health; spa; thermal and mineral springs; wellness real estate; wellness tourism; and work-place wellness.
about wellness tourism
Beginners Guide to Starting or Expanding your Spa 3
Beginners Guide to Starting or Expanding your Spa4
The potential for growth
Wellness sectors seeing the most significant growth since 2010 are:
Healthy eating, nutrition and weight loss (108 percent increase to $276.5 billion) Preventative
and personalized health (78 percent increase to $243 billion) Complementary and alternative
medicine (65 percent increase to $113 billion);
Beauty and anti-aging (51 percent increase to $679 billion)
Beginners Guide to Starting or Expanding your Spa 5
Other highlights of the study include:
The spa industry grew 58 percent from $60 billion in
2007 to $94 billion in 2013, with 47 percent in-crease
in spa locations from 71,762 to 105,591.
Wellness tourism expanded to $494 billion in revenues,
rising 12.5 percent from 2012, significantly outpacing
SRI’s original growth forecast of 9 percent.
The research shows the trend in the upsurge of
revenue in the wellness industry. Particularly relevant
to Sub-Saharan Africa is the fact that South Africa
ranks as one of the three top earning countries in the
region, making this an excellent time to invest further
in your spa’s facilities and offerings or start a spa and
use specialized offerings to differentiate your business
from the competition by following the 14 steps to follow:
Beginners Guide to Starting or Expanding your Spa61.
The business model
01.step
Whether you are looking to expand your current spa business or to start up a spa offering, weigh up the pros and cons of each business model, taking into account your current budget and also the service that you wish to provide. Choose your business model from the following:
7Beginners Guide to Starting or Expanding your Spa
Franchise Operations:
Enter into an existing infrastructure and expertise of an
established business (and reputation).
Purchase Existing Business:
The advantage here is the established infrastructure
such as plumbing, electrical outlets and fixtures such as
treatment tables and reception desk. In-depth research
is needed to assess the business’s reputation, reason for
selling and commercial viability.
Independent Owner:
Establish your own spa with your own money, bank loan or
money from investors
Beginners Guide to Starting or Expanding your Spa8A.
02.step
Finance Professional Advice
matters
Beginners Guide to Starting or Expanding your Spa 9
Together with an accountant or financial expert analyse the costs and potential income
to ensure profitability of your venture. If it is an existing business, review the products and
services to see how they need to be revamped.
Get advice regarding personal insurance and finance related matters
such as VAT registrations.
Find out regulations regarding a business license and required permits. Ask your health
department about a pre-opening inspection.
Get advice regarding personal insurance and finance related matters such as VAT registrations.
Beginners Guide to Starting or Expanding your Spa10
03.stepWhether you are buying, leasing or building, it is important to have a convenient and visible location. This will encourage foot traffic and draw attention to your offering, especially if the building is easily accessed via main roads and there is space for ample parking for your clientele. Ensure that all zoning is in place and you have written approval before committing to signing a lease or purchasing the property
Location
Beginners Guide to Starting or Expanding your Spa 11
04.step
Keep your enemies close
It is important to know what your competition is offering so that you can differentiate your services. Research your regional spa competitors from either your city or the surrounding areas by discreet visits where you can observe the spa’s décor and overall customer service practices. Take note of aspects such as service menus as a foundation to enhancing your own offerings and treatments.
Beginners Guide to Starting or Expanding your Spa12
Revenue vs non-revenue areas
05.step
Beginners Guide to Starting or Expanding your Spa 13
The space of a spa can be divided into 2 areas: one is revenue producing space
include treatment rooms, reception and retail area, manicure and pedicure
areas and the hair salon if this is included in your offering;
the other is non-revenue producing space. This includes relaxation rooms,
change rooms, hallways, bathrooms, laundry rooms, offices and storage areas.
It is important to allocate both areas in the right ratio and a safe allocation
is 75:25 or 80:20 for revenue producing space and non-revenue producing
space, respectively.
In terms of position for your manager’s office, this is best kept near
the reception area, enabling her to see what is happening in front. Any
consultation, either with a client or staff member can also be done in the
noisier front area, rather than the quiet of the treatment area of the spa.
Additional revenue can be garnered from retail sales, beverages and food.
Beginners Guide to Starting or Expanding your Spa14
06.
Your Defining offerings
step
Create a spa services menu tailored to meet the needs of your
regional target market. Include a wide range of professionally
applied facials and scrub treatments, available in other spas,
but make sure that your offering includes a special signature
application such as a treatment which enhances their overall
health or sense of well-being. It is also important to note what
qualifies you as a spa. For instance you need to have at least 1
water treatment therapy.
Beginners Guide to Starting or Expanding your Spa 15
SpecializationInclude the offering of several massage modalities and body-enhancing
treatments as part of your differentiating offering, especially those unfilled
by other day spas.
The need to provide unique offerings has given rise to specialized services
which provide new products, advanced technology and cutting edge
techniques which enhance both beauty and overall well-being.
Unique signature treatments such as Ozone Steam Therapy ensure that
you differentiate your service offering from competitors. Ozone therapy
is a revolutionary alternative medical and beauty treatment and is being
practiced in over 20 countries around the world such as Germany, Italy,
France, Japan, Spain and South Africa. The therapy focuses on getting
more oxygen into our bodies which result in various improved conditions
such as softer and healthier skin, improved sleeping patterns, reduction in
cellulite as well as numerous health benefits. Due to the steam in the sauna,
this also qualifies as a water treatment modality, without having to build
expensive showers and do costly installations
Beginners Guide to Starting or Expanding your Spa16
Your Suppliers
07.step
Spa products, fixtures and equipment such as facial steamers and
massage tables need to be ordered via a supplier. Specialty shower
and sauna equipment can also be ordered if this is going to be part of
your spa service offering. Suppliers may offer support to help blend the
fixtures into your spa’s environment. Suppliers may offer additional
support as part of their service, as in the case with the Ozone Saunas
bought from Salvagente, where they offer free Business Support
Benefits to help you become successful faster.
Suppliers may offer support to help blend the fixturs into yr spa’s environment
Beginners Guide to Starting or Expanding your Spa 17
Your Suppliers
07.
08.step
Organising the spa
All areas of the spa contribute to the décor theme and the overall ambiance experienced. Use your reception area to display beautiful welcoming flower arrangements. Treatment rooms must be clean and organised, creating a professional, inviting facility.Budget allowing, schedule a maid and laundry service on a regular basis, and have them tidy up after each client. If budget needs to be considered, then team members can rotate turns in tidying up. Treatment rooms should be immaculate with fresh sheets and towels for each new client. Hygiene must be further facilitated by using disposable gowns, head coverings and chair liners.It is also advisable to work with an interior designer in order to create a colour scheme that is conducive to soothing environment offered by a spa.
Beginners Guide to Starting or Expanding your Spa18
Layout
09.step
Depending on the extent of your expansion or your level of
experience with spas you will either need to engage the services of
an architect or a draftsperson to draw up plans for the spa, and then
hire a builder for the construction or alterations.
The spa area is divided up into different rooms used either as
changing and showering facilities, treatment rooms, consultation
rooms (for discussing treatment options and post-treatment
care) and other spa offerings. Additional areas include space for
locker rooms, relaxation areas (one for guests and one for staff),
dispensary, utility room and proper corridors to provide access to all
the different rooms.
Other layout aspects to consider are the separate treatment rooms
for wet and dry services. Allowance also needs to be made for
air conditioner and also access to hot and cold water so that the
technician can mix dry products or dampen towels during treatment
without leaving the room.
Beginners Guide to Starting or Expanding your Spa 19
Layout
09. AmbianceBefore you build your spa, research the demographics and psychographics of your target
clientele and understand what services they want. Identify the features that will attract
these clients and drive the design process.
Décor plays an essential role in creating the perfect ambiance which directly impacts on your client’s
experience. Lighting, colour, textures all play an important role in setting up your spa theme.
For more inspiration on spa décor, please visit https://www.pinterest.com/explore/
spa-room-decor. Your spa room may require additional electrical and plumbing needs,
floors may need to be reinforced, ventilation and exhaust fans may need to be installed and
permits may need to be filed.
Finally, the treatment room should have its own sound system, providing relaxing music to
create a sense of peace and well-being for the client.
Music volume and selection, together with temperature and lighting should be adjustable
according to the needs of each client. Additionally lights need to have a dimmer switch and
only turned fully on to render cleaning services before and after a client is in the room. Create
space, design and finishes which are pleasing for both male and female clients.
10.step
Beginners Guide to Starting or Expanding your Spa20
11.stepProvide hooks and a chair so clients can store any belongings they may have brought in with them. Use a treatment bed which offers features which add to the experience of comfort such as adjustable height, removable headrest, adjustable foot and headrest, and electric control.
As your client often faces the ceiling, this part of the room must also be considered. Using colours of blue or green tones facilitate further relaxation during a treatment.
The perfect setup
Beginners Guide to Starting or Expanding your Spa 21
12.stepStaff
If you are looking to expand your current staff or need professionals for the services you are intending to offer, it is best to hire people who are competent and charming as they will breathe life into your business. Ask community college cosmetology instructors to recommend their students. Look for professionals who have a clientele matching your spa’s target market. Find out about insurances needed to cover your staff’s services.
Keep your staff updated on current product or service trends by attending trade shows.
Beginners Guide to Starting or Expanding your Spa22
Marketing
13.step
Beginners Guide to Starting or Expanding your Spa 23
Develop a brand image through your logo, profiling your company and its offerings and
advertising your spa in the local press and relevant magazines.
Create a menu of treatments and pricing, with a design in keeping with your brand. Contact
a sign-making company for building signage for the outside of your spa, providing insight into
the theme of your spa, inviting people to come in and take a closer look at your offerings.
Host a luxury-filled grand opening. Customers can be introduced to your spa experience by
special sample gifts and discount opening pricing packages. Hosting a competition is a great
way to collect names for a database which you can later use as your mailing list. Key spa
experts can speak on various topics such as how to look after your skin or how to de-stress.
The opening can be advertised in the local newspapers and in relevant lifestyle magazines.
Tasteful invitations can also be placed at non-competing pharmacies, fitness centres,
upmarket clothing stores, and hair or nail salons.
Creating a website or online presence through social media is critical to increase visibility.
Salvagente offers a free website listing of their clients who offer ozone therapy to the public,
as well as exposure on social media channels and in publications.
Beginners Guide to Starting or Expanding your Spa24
14.step
Software programmes for bookings, staff records and stock monitoring.
Equipment repair or replacement. Employee training, marketing, printing costs for new treatment menus, facility updates in equipment for new services, Signage if you change the name. License fees, Business license fees and establishing vendor accounts
Other important factors to consider
Beginners Guide to Starting or Expanding your Spa 25
Opening a spa is challenging and hard work.
It is also rewarding, seeing your idea blossoming into a
business and providing a service which uplifts the
lives of others.
We wish you all the bst on your journey.
To learn more about Salvagente
and the products, services and/or
Business Support Benefits we offer