Salon and Spa Business Plan

Executive Summary

All around the world everyone goes out daily to make a living for themselves, but it is also important to know that all work and no relaxing could deal a sad blow on the body. This is one of the reasons why there has been a rise in the spa business all over the world. In Nigeria for instance, there are loads of day spas and health spas, which see to it that customers are given the best services that will give them one of the best experiences yet. One of the ways through which any spa business could capture the hearts of all and sundry and get them coming over and over again, is helping them de-stress from the hectic day to day schedules. This is one of the things that those who already run a spa business have at the back of their minds. They know that one of the ultimate reasons   why they are in business is to make life easier for people. 

Some people get to work round the clock with little or no time left for them to take care of themselves. Some do not even mind looking the way they are, since there isn’t ample time to take a second look at how they are. Yet others wouldn’t mind mustering some little time to pamper themselves. These people are the types that do not mind visiting a spa or have a spa attendant come to their home for a massage. They do not even mind paying a premium to have all these services and more. 

Over the years we have come to see that the spa business has continued to be on the rise, as the demand for it continues to increase. One of the very good things about this trade is the ability to have a spa attendant come for a private service. In the past this used to be an issue, as some attendants were skeptical. However, today, it is a different ball game entirely, as the spa business has become a no holds barred type of service rendering business. It is no wonder that very business upwardly mobile people can rest assured that they can get the best of spa services. 

Chaka Salon & Spa is a new classy neighbourhood in Egbeda, Lagos state offering a complete day spa experience. We offer seven ultra-chic, ultra-comfortable treatment rooms with the finest spa linens and equipment. We offer massage in a variety of styles - traditional Swedish massage, Deep Tissue work, Hot Stone Massage, Reflexology, Sports, Pregnancy and others. We also offer facial and body treatments, like a Vitamin C Antioxidant Facial and Pevonia's Anti-Free Radical Treatment. The day spa has the latest in anti-aging products and techniques that can effectively meet the needs of our clients. As a matter of fact, we are plan on opening a hair and nail salon, so that we are able to attract clients who would also be in need of spa services. 

Chaka Salon & Spa is a standard Spa lounge in a 300 square feet facility. It is therefore no joke to say that we have one of the biggest spas with the latest products and service techniques in Egbeda, Lagos. We have got the very best of attendants who have been well trained to make clients visit a worthwhile and fun packed one. 

We have a posh and classy environment that can attract all and sundry to come have a taste of what it means to run an ultra- chic spa. Furthermore, we have gifts for each customer who comes to patronize us. 

Our Spa will be open from 8 a.m. and close 10 p.m. from Mondays to Thursdays, and will run a   24 hour service from Friday to Sunday. We decided to operate in this format because from our market survey and feasibility studies, we realized that customers have the most flexible time schedules during the weekends. It is pertinent to state that we have the finest audio playlist in the house every single day of the week; this is intended to serenade the clients whilst they get serviced. 

Table of Content

1.0 Executive Summary

1.1 Benefits

1.2 Objectives

1.3 Mission

1.4 Keys to Success

2.0 Company Summary

2.1 Company Ownership

2.2 Location and Facilities

2.3 Startup Summary 

Table: Start-up Funding

3.0 Services

4.0 Market Analysis

4.0.1 Market Summary

4.0.2 Market Trend

4.1 Target Market

4.2 Market Segmentation

4.3 Target Market Segment Strategy

4.4 Industry Analysis

4.4.1 Barriers to Entry

4.4.2 Competition

4.4.3 Main Competitors

4.5 SWOT Analysis

4.5.1 Strengths

4.5.2 Weaknesses

4.5.3 Opportunities

4.5.3 Threats

4.6 External Environmental Analysis

4.7 Market Strategy

4.8 Sales Strategy

4.8.1 Sales Forecast

5.0 Strategy and Implementation Summary

5.1 Competitive Edge

6.0 Marketing Strategy

6.1 Web Plan Summary

6.2 Website Marketing Strategy

6.3 Development Requirements

7.0 Management Summary

7.1 Organisational Structure

7.2 Management Team

7.3 Personnel Plan

8.0 Financial Plan

8.1 Important Assumptions

8.2 Break even Analysis

Table: Break even Analysis

8.3 Profit and Loss

Table: Income Statement Year 1

Table: Income Statement Year 1-3

8.4 Projected Cash Flow 

Projected Cash Flow Statement Year One

Projected Cash Flow Statement Year Two

Projected Cash Flow Statement Year Three

8.5 Projected Balance Sheet 

Projected Balance Sheet

Operating Expenses (Year 1)

Operating Expenses (Year 1-3)

8.6 Long Term Plan

Frequently Asked Questions about Salon & Spa Business

How Profitable is Owning a Salon

Salons and Spas are typical small service businesses that may return decent profit depending on location and quality of service offered. You can expect anywhere from 8 - 20% profit margin. However it is important to note that factors such as market demand etc can affect profitability.

How to Make My Salon and Spa Business Successful

Here are several tips to help you build, grow a successful Spa or Salon business;

• Offer excellent service

• Choose a good location

• Get your pricing right

• Identify in demand niche(s) and focus. Don't be a jack of all trades

• Hire the right, skilled staff and keep them invested in the success of your business through profit share

How Do I Attract Customers to my Salon/Spa?

• Utilise the power of social media to grow your brand and attract customers

• Offer promotions

• Create loyalty programs

• Build your own email list and send personal grooming tips

• Share quality customer review