How to start a spa business

If you’ve always dreamt of running your own spa, or you’re just starting your career and have it as an end goal, you might be wondering how to start a spa business. The global spa industry is worth over $68 bn, according to the Global Wellness Institute, and the wellness sector continues to grow year on year.

The global market size of the spa industry is expected to grow to over $185bn by 2030. Moreover, the spa services market, which includes massage services, beauty and grooming, and physical fitness, is expected to grow to over $133bn. It’s a lucrative growth industry.
Want to be a part of it? Here’s how to start a spa business.

What is a spa?

Hopefully you already know what a spa is if you’re wondering how to open one, but if you’re looking for an official definition, we’ve got you.

A spa offers various health and beauty treatments and services, aimed at promoting relaxation, rejuvenation and overall wellbeing. They provide a range of therapeutic and cosmetic treatments that help individuals de-stress, unwind and improve their physical and mental health.

The types of treatments and services offered at spas can vary widely depending on the spa's focus and specialty, but some common offerings include massages, facials, body treatments, aromatherapy, saunas and steam rooms, yoga and meditation, manicures and pedicures, hair treatments, and wellness and holistic therapies.

In addition to physical relaxation, spas often incorporate elements of aromatherapy, utilising essential oils and aromatic compounds to enhance relaxation and mood. Many spas also offer heat-based therapies like saunas and steam rooms, which help detoxify the body and promote relaxation. You’ll also find more traditional beauty treatments like manicures, pedicures and facials.

Beyond the physical aspects, spas also focus on mental and emotional wellbeing. They often offer yoga and meditation sessions, encouraging mind-body practices that promote mindfulness, flexibility and stress reduction. Some also offer things like hairstyling, complementary therapies and weight loss treatments.

Spas come in all shapes and sizes, ranging from small boutique day spas to large resort spas with lots of facilities. Some spas may focus on specific themes or practices, such as wellness retreats, medical spas (medispas) that offer cosmetic procedures or destination spas located in scenic locations. It’s not unusual for them to be paired with a hotel or accommodation.

Why do people visit a spa?

Understanding your target audience is an important part of setting up any business. Let’s take a closer look at who visits a spa, and why they visit. This can help you try to narrow down what you’re going to offer as a spa treatment.

Visiting a spa is seen as a way to take a break from daily stress, pamper oneself, and prioritise self-care. It's important to note that while spas offer relaxation and therapeutic services, they aren’t medical facilities.

While there’s really no such thing as a typical spa go-er—it depends on the type of spa, its location and the services offered—there are some common characteristics and demographics to be aware of.

Spa customers come from all age groups, but there’s often a concentration of adults in their late 20s to 60s. Young professionals, middle-aged people and retirees frequently visit spas. Both men and women are typical spa customers. While spa services were traditionally associated with women, there has been a notable increase in male spa-goers seeking relaxation and grooming treatments.

The cost of spa services can vary, but many spa customers tend to be from middle to higher income brackets. Spa treatments can be considered a luxury, so customers with disposable income are more likely to indulge in these services. Spas are often located in urban centres, resorts, hotels, and upscale suburban areas, so it might be that customers book treatments during their stay or book for the spa and end up staying over.

Spas also attract customers celebrating special occasions like birthdays, anniversaries, bridal parties and pre-wedding pampering. Spas located in tourist destinations and resort areas often welcome tourists and travellers seeking relaxation and rejuvenation during their vacations.

Athletes and fitness enthusiasts are another segment of spa customers, as they may come for massages and therapies that aid in muscle recovery and injury prevention. Spas are now offering a wider range of services and accommodating various demographics, including families and younger adults. As wellness and self-care become increasingly valued, the spa customer base is likely to continue expanding and diversifying.

How to start a spa business

Starting a spa business can be a fulfilling and rewarding journey. As the demand for wellness and self-care continues to grow, there's more and more space in the industry for different types of spas and treatments.

Everyone’s approach will be different - that’s what makes spa days so popular and why there really is a spa out there for everyone. Here’s what you need to think about when it comes to starting a spa business.

Define your spa business

Begin by defining the concept and vision for your spa. Will it focus on holistic therapies, offer luxury treatments, or cater to a specific niche? Understanding your target market and the unique value you bring to the table will help you create a distinctive brand identity that sets your spa apart from the competition.

Understand your audience

Understanding your audience is crucial when starting any type of business because it lays the foundation for success. By knowing your target market's needs, preferences and pain points, you can create a spa that fits their needs. This has an impact on everything from location to spa design and the treatments you offer.  Understanding your audience is the key to being successful.

Work out your finances

Knowing your finances when setting up a business is essential because it provides the foundation for sustainable operations and growth. Understanding the financial aspects of your business, such as startup costs, operating expenses, projected revenues and potential profits, allows you to create a realistic business plan. Setting up a spa from scratch can be expensive, so you might need to obtain finance from elsewhere—getting your figures right’s an essential part of this. So’s understanding your monthly running costs.

Conduct market research

Conduct comprehensive market research to understand the demand for spa services in your area. You’re making a big commitment, so it’s important to start out with no misconceptions that end up being part of the launch. Identify potential competitors, their strengths and weaknesses and the gaps in the market that your spa can fill. Gather valuable insights to refine your services, pricing and marketing strategies.

Develop a business plan

A well-structured business plan is the foundation of your spa venture. Outline your spa's mission, objectives, target audience, service offerings, pricing, marketing plan, financial projections and growth strategies. A clear roadmap will not only guide your business decisions but also help attract investors and secure financing if needed.

Make a huge to do list

We don’t want to make you feel overwhelmed, but setting up a spa can be a big undertaking with lots of moving parts. And as the spa owner, you need to be aware of all these moving parts, especially in the run up to launch. It can be easy to forget something important or assume someone else is taking care of it. Whatever way works best for you to keep track and stay motivated, you need to do that for every detail of your spa launch (however big or small that detail is. Keep track of everything you’ve delegated too.

Select the perfect location

Choosing the right location for your spa is critical to its success. Look for a place that’s easily accessible, has parking and is situated in an area with high foot traffic or that people will go out of their way to visit. City spas will have a totally different vibe to rural getaways, so think about the environment around your spa. Consider the ambiance and surrounding environment, as customers seek relaxation from the moment they step through the door.

Obtain licences and insurance

Check out the business and legal requirements you need to set up your own spa. You’ll need to register as a business, deal with HMRC and ensure you have the right hair and beauty insurance in place. You also need to make sure that you have evidence of any insurance, training or qualifications your team have/need, but we’ll talk about that later.

Design a relaxing atmosphere

Create a serene and inviting atmosphere within your spa. Invest in soothing interior design, calming colours, comfortable furniture and soft lighting. Incorporate natural elements like plants and water features to further enhance the ambiance. You might want to work with an interior designer or spa design expert to make sure that you get the right vibe when you set up your spa.

Source the right equipment and products

Invest in high-quality spa equipment and products to ensure the best experience for your customers. From massage tables and steam rooms to skincare products and essential oils, choose reputable suppliers that align with your spa's vision and values. Don’t be scared to talk to a few different representatives from brands you love.

Recruit skilled and caring staff

Your staff is the absolute backbone of your spa, and hiring skilled spa therapists with a passion for wellness and customer service is vital. Check qualifications, get references and make sure they have relevant experience, as well as meeting them for an interview ahead of hiring them. Make sure you do your research on rates of pay and setting up contracts too - you don’t want to get left with the wrong people in place.

Develop your marketing strategy

Promote your spa business through a well-rounded marketing strategy. Create a website that showcases your services and provides easy online booking options, and make sure it’s optimised for search. Utilise social media platforms to engage with potential customers, share testimonials and run targeted ad campaigns. Consider collaborating with influencers and wellness bloggers to increase your spa's visibility, and to gain press coverage in industry, local and national publications. Being listed on spa booking website’s a great idea too.

Host a memorable grand opening

Organise a grand opening event to generate buzz around your spa. Offer introductory discounts and special packages to attract the first wave of customers. Use this opportunity to network with local businesses, publications and community members to build strong relationships. You can also invite influencers, national press and industry press if your spa is going to have clients who come from further afield.

Is setting up a spa for you?

Starting a spa business is a journey that you need to feel passionate about and have the dedication and meticulous planning. By defining your concept, conducting thorough research, developing a strong business plan, and creating an inviting atmosphere, you can set the stage for a successful spa venture.

Remember, a spa isn’t just a place of relaxation; it’s a sanctuary where individuals seek solace, rejuvenation, and a renewed sense of wellbeing. With the right strategy and commitment, your spa can become a destination for those who are seeking a soothing escape.

Specialist spa insurance through Ripe

Starting a spa business? You may want to protect it through specialist insurance for financial protection and peace of mind should the worst happen.

Through Ripe, you can get specialist spa insurance that provides up to £10m Public and Products Liability cover and up to £5m Treatment Risk cover as standard to protect you against third-party claims for injury or property damage.

You can also choose additional cover options, such as Employers' Liability and Buildings cover, so you're only ever paying for the cover you need. 

Learn more about how we can help here, or get an instant online quote.