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How to start a spa business in Singapore

How to start a spa business in Singapore

Thursday, December 20th, 2012

Spa business has been growing rapidly in Singapore, mainly due to the surge in demand from stressed out folks who want to pamper themselves. The best part about serving a growing industry is that there is enough money in the market to go around. Even without being the market leader, there is enough demand for any spa business to earn profits, given that they get their business right. In this first of its kind guide on how to set up a spa business in Singapore, we are giving away for free, all the business secrets you need to make your spa business a success. The following is an outline on the different things you need to be aware of when learning how to start a spa business. For details, please click on the links that will take you to a greater coverage of particular topics.


Business planning

Spa market research: We will start with a indepth look into how to do market research on the spa business without spending a single cent on any business reports. We will teach you how to use free tools offered by Google to analyze the different market segments of your customers. This is to help you pick up a niche that is less competitive so that you have a higher chance to succeed. This stage might also reveal untapped opportunities for a spa business to capitalize on.

Business option: Next, we will look at the different options that a spa business owner can consider. There are 3 general options to consider. First option is buying an established spa business. The second option is to open an entirely new operation. Finally, there is also the spa franchise model to consider.  Each of these options have its pros and cons, which we will covered. We will also be examining how much does it cost to start a spa business under the 3 options.

Naming your business: We will talk aboout how to name your spa business. This might sound trivial but your company name has a lot of marketing implications down the road. For example, in terms of advertising, a short and memorable name tends to be a higher recall by consumers. In addition, you also need to consider whether the name you have choose can be registered for the website. This chapter will cover the different criteria on how to name your spa business.

Budgeting and finance: Financing will be another topic that we will provide info on. There are various options for a spa business own to raise money.These include funding from families to bank loans and even government grants. Depending on what is your plan, some of these financing options might be more suitable to your needs. One form of financing, for example is equipment leasing and they are suitable for people who have good relationships with equipment vendors.

Setting up the spa business

This section covers how to set up your spa business after the planning stage.

Location:It all starts with getting an ideal location for your store. We will list out all the factors that is needed to secure a good location with traffic.

Interior design: Once the location has been secured, you need to first determine what is the size of your store.A good design takes into consideration the functions of the different rooms as well as the movement of the people including your staff and customers.

Regulation: A spa business needs to acquire certain licenses and permits before operation can begin. We will share with you what are the permits that are required and which government body oversees the application of these permits.

Product offering: Depending on the niche that you identified earlier, you need to create product packages that has different price points. This will help to draw in more customer segments who might be looking for different types of packages. Once that is done, it is prefer that you create a proper product menu that customers can read and choose from.

Human resource: The first thing to do is to know your staffing needs, which in turns comes from knowing the kind of services your spa is providing. Once that is determined, you need to know where to find qualified people to fill those positions. Lastly, you also need to know what kind of salary they should be receiving and how to motivate them with additional bonuses if they achieve their personal targets.

Running the spa business

In this section, we will be covering the necessary information you need to keep a spa business moving smoothly. These includes functions such as human resource, housekeeping, store maintenance.

Housekeeping: A spa owner needs to set up a regular maintenance schedule to ensure the store can function properly. This includes keeping the hygiene level of the place, having a laundry schedule as well as a equipment maintenance schedule. A checklist will be provided to help you better get a handle on what you need to do to keep things in order.

Sales cycle: Every business has a sales cycle and spa business is no different. To be efficient, the sale cycle needs to be smooth and preferably automated. The typical sales cycle for a spa business involves: appointment booking, customer arrival, rendering of service, payment and checkouts. Of course, there must also be planning around customer complaints which will happen no matter how good is your customer service.

Book keeping: It is important that your financial accounts are well recorded.

Getting customers to your spa business

We have dedicate a section on getting customers. This is the most important factor that will determine whether your business will be successful. Without knowing how to market a spa business, most owners will not receive enough sales to cover their running costs.

Marketing materials: Before you run any form of marketing campaign, it is important to have your marketing materials on hand for potential customers. This includes a whole range of things include website, business cards and brochures. We will go in detail on how to create spa websites as modern consumers are doing a lot of shopping online. If you want their business, you need to have a website that receives traffic.

Get traffic to your website: In the previous section, we mention how to set up a website. In this section, we will go into details on how to generate traffic. The techniques we will be discussing includes search engine optimisation, paid traffic and social media. Each of these areas represent a huge field in itself so the learning curve might be steep.

Conversion: How to structure your website so that it functions more as your virtual sales person. Most spa websites made the mistake of treating their portal as an information access. They missed the opportunity of making a convincing argument to their visitors on why their spa is the preferred choice for customers.  Hence, this section will offer tips and guidelines on what goes into a good converting landing page that can help your business get more customers through online.