How much does it cost to open a spa?

How much does it cost to open a spa

If you’re like most spa specialists, then you’ve dreamed of running your own business more than once. Just the thought of being able to lead a team, design an interior the way you see fit, or simply to have a spa that you can claim as your own – it’s these aspects that drive specialists to go out there and seek their own ventures. However, before jumping into this endeavour, it’s essential to know the cost of opening a business. So exactly how much does it cost to open a spa? Well, continue reading and find out!

The basics

The cost to open a spa is roughly around £100,000 – that is, if you’re starting from scratch, and not purchasing a business. Surprised? Well, the truth of the matter is that prices vary, depending on a number of key factors. The location of your business, required permits, renovation costs, insurance, furniture, appliances, products, staff salaries, licensing and training must be taken into account. Obviously, if you’re building your salon from the ground up, you can expect even greater expenditures. Now that we have that covered, let’s dive into the deep end!

Location, location, location!

Where your business is going to be situated can significantly influence the cost of opening. If it’s smack-dab in the middle of a busy intersection of a bustling city, expect to pay top dollar expenses for your spa. How much does it cost to open a spa in a more rural area? Obviously a bit less, however, if you’re planning on purchasing a business from someone else, it’s best to get an understanding of what their expenses looked like. Just because a spa is located on the outskirts of a busy city, tucked away in a dark corner, doesn’t mean rent, bills and permits are going to be cheap. Speaking of permits, you must register your spa and get a license from the environmental health department of your local authority. More advanced treatments (the use of lasers), may require that you register with the Care Quality Commission in the UK.

Renovation costs

If you’re purchasing a spa business from a previous owner, then if you’re lucky, renovation expenses will be minimal. Sure, you might want to tear down a wall here or there, in order to make room for an extra work station, but other than that, you’ll probably stick to petty fixes, like repainting the interior, etc. However, if you’re renting a space that wasn’t previously occupied by a hair or beauty business, well, you might have a bit of work on your hands. First off, you must get in touch with your local planning department and find out if you fulfil all of the requirements for opening a spa. Having to install additional sinks and making sure you have both cold and hot water are essential in order to operate legally!

Insurance, furniture, products and appliances

When looking for insurance groups, the location of your business and the plan you decide on can have an impact on how much you’ll have to pay. Obviously, if you plan to open your business in a location prone to natural disasters, your insurance covering them will skyrocket in price. Once you find an appropriate plan, you can start focusing on purchasing furniture and appliances, which is often the most relieving part of preparing to open a spa. If you’re planning on cutting some expenses, you might want to go after purchasing second-hand furniture or equipment, like massage tables or a waxing heater. Bear in mind that these ought to be properly cleaned, disinfected and in the case of equipment, checked to see if they function properly. If you have experience working in a spa, then you’re probably familiar with certain product lines. When choosing which brand to go with, you ought to synchronise it with the quality of your treatments and your business image. If your spa is going to be a luxury business and you plan on providing top-quality massages, then you shouldn’t utilise bottom-shelf products.

Going solo or all out?

Whether you’re planning on running your spa as a sole trader or have ambitious plans to start your own company, you have hoops to jump through. As a sole trader, you must register with the HM Revenue & Customs (HMRC) and pay off your taxes – you can sign up here. And what if you plan on starting your own company? Well, you need to register your spa with the Companies House and let the HMRC know for tax purposes. Oh, and if you plan on hiring staff, you also need to pay them as well.

Other essential expenditures

Now that we have the bulk of it covered, there are still a number of other expenditures that come with opening your spa, including:

  • Spa courses – if you have no experience in providing spa treatments or would like to introduce new ones
  • Music permits – that’s right – if you’d like to play music in your spa, you’re required to pay a PPL and PRS license
  • Hiring extra help – if running a spa starts getting out of hand, you may have to hire some extra help, especially when it comes to marketing and managing expenditures – however, there’s another option.

Whether you’re just opening your spa, or have been in the business for years, UK spa owners turn to Versum, spa software to help them effortlessly run and manage their businesses. The system works as a receptionist, accountant, manager and marketing specialist, allowing you to focus on tending to your clients’ needs. Everything from managing bookings, tracking sales and profits, to organising staff shifts, taking prepayments and sending appointment reminders – a reliable spa system is an essential tool for businesses that are looking to succeed. Sign up today – no credit card required, no booking commissions, free support forever.
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Talk to one of our salon specialists and check how Versum helps you to manage your hair and beauty business easily and effectively. 

Please, fill out with your contact information
Schedule a free demo!
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