If you have decided to open a beauty spa, writing a business plan will be your primary step.
Not all businesses share the same business plan. The one size fits all approach does not work because every business focuses on different considerations.
A spa in particular will definitely have a different set of challenges from a F&B business. This is why a business plan is not just about outlining goals and methods of achieving them but is also about understanding your niche market.
Now, how do you come up with a good business plan?
Beauty spa business owners, here’s exactly what you need to include in your business plan to run a successful beauty spa in Malaysia!
1. Create a Summary of Your Business Plan
In the first section of your business plan, you will need to provide a summary of your company profile and entire business plan. Where do you see your business in the next five years?
Your abbreviated five-year plan should not only consist of your long-term goals, but also the location of your business, your required and anticipated costs, estimate of your liabilities and revenue for the five years.
In Malaysia, running a spa for five long years means having to carefully choose between typical locations such as in a neighbourhood shop lot or in a shopping mall, etc.
It is best to list out 5 to 7 attainable goals along with their respective milestones. When doing this, consider the trends, pattern, and future of the local beauty industry.
2. Give a Concise Description of Your Business [restrict]
The description of your business plan must provide information on the type of beauty spa you will be having, along with the type of services and products you will be offering.
In order to state the following, you will have to provide a demographic breakdown of the particular area your spa will be serving.
Why did you choose a particular location? What makes your spa different from your competitors?
If the area comprises of high-income patrons, how will your services and products specifically cater to them? Include your unique selling proposition in the business plan.
Samantha Pang, founder, and director of Vita Spa, was featured in The Star Online, in March this year (2018). She revealed that her target customers were the upper-middle market segment and their services were priced within a range where customers can feel the value for money.
So you could ask yourself if the area your shop is located in is concentrated with a particular ethnic group or are they mixed? If you plan to open a spa and your patrons are a mix of Malays, Chinese, and Indians, you could consider tailoring your massage therapies for each ethnic group.
For instance, Malay Traditional Massage Therapy (Urut Melayu), Chinese traditional acupuncture Zhi Ya, or muscle stretching, kneading and pushing technique called Tui Na, and Ayurvedic massage techniques for the Indians.
3. Create Your Mission and Vision Statement
Your business plan must include the mission and vision of your business.
Your mission statement defines the purpose of your business. You should be able to let your readers know why you exist in just a single sentence.
Here’s an example of a mission statement by Rocky Mountain Day Spa, “We are committed to wellness for our clients, OUR TEAM and our earth by providing the highest level of customer service, by upholding the highest standard of professionalism and by incorporating green practices & organic products in truly peaceful, luxurious spa environments”.
Your vision statement describes the future aspirations and goals of your business.
An example of a vision statement would be, “To be the neighbourhood’s number one earth-friendly spa to provide a rejuvenating experience for our customers on top of our high service quality”.
4. Describe Your Market Research
It is essential for you to describe the market research you have conducted in your business plan.
You will have to demonstrate that you have a thorough knowledge of three things:
- Your target audience
- The successes and failures of every competing spa in the same city yours will be located
- How your spa is going to be an alternative to others by taking advantage of local marketing trends
Take advantage of social media trends, and capture a larger millennial customer base by having a Facebook or Instagram account.
Here’s how you can keep up-to-date with social media trends:
- Share videos and pictures on your profile or stories by featuring your customers
- Have interactive live sessions with your customers, such as Facebook/Instagram Live
- Enable appointment booking via social media account (Direct Messaging)
- Organise contests or hashtag challenges to promote your services and products
5. Elaborate On Your Marketing Plan
Every business plan should have an elaborate marketing plan.
Following the demographic breakdown, you will have to explain how you are going to compete with other spas in the area.
For example, are you going to be the only one providing traditional massage services? Will your spa be the only one to cater to mothers in your selected area?
After describing your ideal client, explain how your business will appeal to your client.
What channels will you utilise? Advertising, social media or networking apps, mobile devices, or blogs focused on content marketing?
6. Explain Your Financial Plan
Do not forget to include the financial information of your business in your business plan.
The financial information should include the following:
- Estimated budget
- Financial forecast of the 5 year period
- Estimated profit margins along with liabilities
- Amount of time that is necessary for your spa to break even
Prior to laying down a well-tailored business plan, steps must be taken to carry out the adequate and needful research in order to help your business operate at an optimal level.
So, research extensively! Optimise your resources such as the Internet, your social contacts, competitors and more.
Want to understand the Beauty, Spa and Wellness industry better? Read this article to find out about the 4 Things You Didn’t Know About the Spa Industry.