Spa franchises seem to be popping up everywhere, and with the easy availability of these businesses, it’s no surprise. Building a franchise takes time and effort, but before buying into a franchise, you should know what you’re getting yourself into. Even smaller companies such as Dermani Medspa franchising come with many hoops for potential owners to jump through. Investor Junkie mentions that while buying a franchise is an excellent way to get a leg-up in the business world, it’s not the only thing to consider. So, what does a businessperson need to ensure that their spa franchise manages to stay afloat and make a profit?
A Business Plan
Business plans are among the most utilized and least understood parts of a new business. The Balance SMB gives us a list of reasons why a business plan is crucial to a company’s success. For a franchise, it’s no different. You want to make sure that your company performs as well as it can by planning out its growth from inception and each milestone after that. Just because it’s a franchise-based business doesn’t mean it’s exempt from the essential development of a business plan.
Entrepreneurs sometimes avoid business plans because they don’t make an immediate impact on the business. The problem is that by avoiding implementing a business plan, a company dooms itself to a life without vision. Business plans can help a business grow in several ways, from determining its core customer base to helping with focused marketing. In the early part of a company’s formation, the organization needs to keep an eye on its expenditure since income isn’t fully established as yet. Business plans help to limit the spending options to viable channels, helping to keep the business afloat.
If you’re going to start a franchise spa, you’ll need equipment to perform the required services. Franchise spas have proprietary methods, but some allow you to use generic brands of equipment. Depending on what you intend to offer at your own outlet, your investment may be more or less. The best idea for new franchisees would be to start small and then expand upwards when you get more money.
Spa equipment isn’t a cheap expense either. One notable strategy that many new spas use is to have a “threshold figure” for regular clientele. If the business manages to have return business clients in a large enough amount, they can consider spending more on equipment to expand the range of services they offer. Additionally, these spa-specific elements aren’t a stand-alone expense and usually come with the added cost of utilities. Some of these spa equipment installations also need to run electrical or plumbing extensions, which are an additional expense. It’s a huge mistake to try to do too much too quickly. It’s better to look into expanding the business when you can support the decision financially.
While spas tend to target a specific demographic (women, usually between eighteen and sixty), that doesn’t necessarily have to be the group you aim for. The spa franchise you go with may require you to market to this group or do the marketing themselves. However, as a local franchisee, you can also sell to people within your area. If you aim for a different demographic, you might be surprised how well the audience responds to your tactics.
One of the upsides that the spa business has over other industries is that it tends to thrive in recessions. The reasoning behind this anomaly is simple. During times of economic stress, people need a way to relax. Spas offer a place where people can go to shed their worries. The audience that a spa focuses on can change, so in times of strong economic growth, the resort can focus on more higher-earning clients. In contrast, in an economic contraction, they can start offering more budget services. Knowing when to pivot into a new audience can give you a lot of depth in facing hard economic times.
The franchise spa already comes with a name, but that name only gets people in the door. Most spa franchise businesses profit from selling products that enhance the experience and enrich the lives of its customers. As the runner of a spa, you should spend time researching which products you’d personally recommend to your clientele. The products you offer are as crucial to the business’s reputation as the service you provide.
Building a Customer Base
For most franchise spas, a customer base of people who support the business is a crucial achievement. In smaller communities, it may be easier to get clients to accept and agree to visit the store often. In more urban areas, the competition may be more intense, requiring you to spend time and money on marketing. After all, it’s only by making your brand known will you stand out from the rest of the crowd offering the same types of services.