Editor’s note: This article was first published in December 2018. Calling Facebook Ads the most effective form of advertising “today” and the remark that rural-style spas are “in fashion” reflect that time.
When thinking about a business, and after a period of researching how solid spa businesses are, it’s worth pointing out that this type of business is in a phase of strong growth. The question many people ask is whether a spa is profitable, what types of spa you can start, how much investment you need to set up a business like this, and so on.
A spa isn’t a low-investment business, but it is a very profitable option.
The stress of everyday life means we increasingly seek out these relaxation services and healing therapies. The leading country in this type of business is Mexico, with roughly 1,900 spas in full operation.
If you decide to start in this business, you should know that you can approach it in different ways.
See also: 17 business ideas you can start in a small town
Profitable types of spa
Urban spa
Open during the day, with appointments, and usually found in the city centre.
Destination spa
Accommodation included for one or more days, with a programmed circuit for the client.
Medical spa
Treatments supervised by a doctor, for medical treatments and more delicate conditions.
Of course, if you want to become the most sought-after destination in your city and decide to go big, you can combine all 3 types of spa in one, offering the widest range of services. Naturally, the investment would be higher that way.
Advantages of starting this business
- The main advantage is that it’s a sector with strong demand at the moment.
- A really fast return on investment.
- Very few problems with customers, since they come to relax, not to cause trouble.
See also: 5 ways to know what your customers want before they tell you
How much investment do you need to open a spa?
The investment for this type of business is high, although it is a business that recovers the capital invested quickly, especially if you’ve gone big. The minimum investment is around €200,000. That said, more homely spas are also in fashion now, even in old abandoned houses, where all you need is a light renovation and then to promote the rural setting.
If you’re going to open a spa in the city centre or on the outskirts, you’d need premises of at least 100 or 120 m² for an urban spa.
The décor is an essential part of this business and you shouldn’t skimp on it. Sauna, jacuzzi, treatment tables, qualified staff, disposable supplies, and so on.
As you can see, even a spa without great luxuries still requires a large investment.
If the initial investment is too much for you, share it
I know this will sound counterproductive, but it’s something that was done with the first spas I came across: partnering with other people who have the necessary, complementary knowledge to make the spa work.
Make each qualified, specialised employee a partner in your business. Pooling capital will reduce each person’s investment, and you’ll all be committed to your own business. But choose your partners well.
How to get your spa known
These days this is quite simple, because we’ll do it the same way as with any other business in the technological age.
Aggressive online advertising
Most of your customers will come to your business through the internet. Make sure you appear in the top positions of the main search engines for the keywords spa, relaxation, holidays, tourism and massages.
Advertise on social media
Contact travel agencies and make yourself known in clinics and hotels by leaving them discount vouchers. The most effective advertising right now is Facebook Ads, that is, Facebook’s advertising, where for a few euros you can launch a specific offer and reach the feeds of thousands of potential customers.
Fill your city with flyers advertising your spa
Even in a technological age, the oldest form of advertising, good old letterbox leafleting, will pay off handsomely for your business.
Remember that in this business, once you’ve covered the initial investment, with good advertising and good facilities and services, you’ll start making a profit from the first year onwards.
Featured image: Unique Hotels, CC BY-SA 2.0, via Flickr.
