Basics

• Your business plan should serve as a basic road map. Before you write your plan, decide on a business structure, which will have economic and legal effects. A business is either incorporated (e.g., corporation, nonprofit, insurance company) or unincorporated (e.g. sole proprietorship, general partnership, franchise). For instance, if you plan to open a spa with at least one other person, you might become personally liable for business debts depending on your business structure. If you open a spa as a franchisee (e.g. woodhousefranchises.com or onthegospa.com), then you face a different set of business liabilities and guidelines.
  Begin your plan by describing the spa's goal, such as if you are developing a niche or new concept within the spa industry. You generally want to select a business name before writing your plan as it will be highlighted throughout, especially if you need financing. Most investors will request a copy of your plan. Make sure to review for spelling and grammatical errors and that the plan maintains a professional tone.
  
  

Expenses

• Your business plan must describe your intended services and expenses. State whether you will open a full-service spa that will provide massage, salon, and manicure services. Discuss the cost of starting your business, including state registration as well as spa supplies (scents, lotions, shampoos) and equipment (lease vs. buy). Determine employee costs, such as for a receptionist, accountant, and accounts receivable employee. Also evaluate if you will hire spa attendants as employees or independent contractors. Remember that your business plan should anticipate all aspects of your business so that you can prepare adequately and run efficiently. You want to avoid underfunding your business, such as if you were thinking that you could open your spa using $10,000 but in reality, you need $25,000.
  
  

Projections

• As you shape your spa business, forecast sales revenues. One method involves totaling all expenses (fixed--like rental space and insurance, and variable--like utilities and supplies). Next, calculate the price of basic services. For instance, if you are running a high-end spa in an affluent part of town, then you might charge $60 for a manicure; if you are running an average spa, then you might charge something less. Consider how much your competitors (2-, 5-, and 10-mile radius from your location) are charging for similar services. Last, assess how many clients you need to break even based on your total expenses and revenues. If you need $5,000 to cover the spa's monthly expenses, and you charge $50 for manicures and $75 for massages, then you can break even with 34 massage clients and 100 manicure clients (9 and 25 clients respectively per week).
  You business plan should contain details about how you intend to run your spa. The plan differs from an operating manual as it is not intended to specify daily operations (turn off the lights, close entrance); instead, you want to project how your business can not only survive but succeed.