Spa Startups: They’re ba-aack!
The recession may have battered the spa industry and shut down many facilities, but we’re finally seeing a resurgence in startups–many of whom aren’t even using the “S” word (that would be “spa”) to describe themselves. “Wellness” is a watchword for many of these next-generation businesses, but other trends inspiring spa entrepreneurs include co-working and organic lifestyles.
Few would-be spa owners understand just how much capital they’ll need to invest to get their new spa up and running–and to nurture it through its first 18 months, the critical make-or-break period. The pressure from competition is usually underestimated in new spa business plans, and these businesses can crash quickly if spa entrepreneurs are over-optimistic and under-funded.
At the high end of the market, spa guests are seeking a new approach to luxury that’s based on authentic experiences rather than over-the-top opulence. That doesn’t always translate into a strong demand for esoteric services, though. The services that guests say that they are interested in and the ones that they actually purchase (especially on a regular basis) can be very different. Creating an appealing but unique menu is a must. It’s expensive to educate the marketplace.
Whether they’re in an urban setting or a remote one, one of the biggest impediments to new spas’ growth is finding enough talented therapists. A solid in-house training program is critical to success in every market. Not only does it improve therapist quality, it aids in employee retention: spa workers value education very highly. Lower employee turnover pays off big in customer satisfaction and pure bottom-line profit.
While there are still spas for sale–a great way to fast track a startup and reduce project cost–many of them are not listed with business brokers and identifying them can take a special approach. Sometimes a would-be spa developer is too deeply in love with their particular vision to recognize a fabulous opportunity in a distressed business. Differentiating a “distressed” business from a “toxic” one is critical.
To help this wave of entrepreneurs avoid the pitfalls of developing a spa or wellness business, a new one-day Spa Startup Workshop is being offered on Saturday, October 3, immediately prior to the Wynne Business Spa Director’s Management Intensive (October 4-6) in Philadelphia’s Historic District.
For more information about the seminars, visit our management seminars page or call 610.368.6660.
Tuition details, including earlybird and multiple registrant discounts.
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