Expanding on the first two of eight myths we talked about last time:
Myth One: Build it and they will come
Business Plan & Feasibility Study
Creating a detailed business plan and a feasibility study are the foundation of your spa business venture. This is where you outline your vision, business strategies, type of spa, positioning and capital investment. The feasibility study is the financial blueprint to your new venture. It outlines all financial aspects of your business. It should include: Initial investment by room, fixed cost, variable cost, a budget, revenue projections, return on your investment, surplus needed and more.
There’s always going to be some skepticism when you start putting fantasy into reality.
Take the 1989 movie, “Field of Dreams,” for example. Ray Kinsella, a farmer, was a baseball fan who kept hearing a voice whisper, “If you build it, they will come.” Annie was skeptical of her husband’s vision of a baseball diamond. But she allowed him to plow the corn under so he could build a field for baseball players.
Simply put, just as baseball players flocked to the new field, demand can be influenced and accelerated if the supply is increased.
And, as it relates to spas, a detailed business plan and feasibility study are the backbone of your fantasy into reality dream.
It’s imperative that you ask others for advice and read success stories of the experts before you put pen to paper. And don’t be afraid to think big, take some chances and, of course, keep in mind all financial ramifications.
Myth Two: I can do it by myself
Hiring a Spa Expert
Can you do it by yourself? Yes, but how successful and how much time will it take you? You can work hard or you can work smart… Choosing the right spa expert is crucial, especially during the pre-planning phase. Beware, there are many faux spa experts giving bad advice and collecting large sums of money. How should you select a spa expert? Ask for references, work history, past projects, skills, area of expertise and specialty. The right advisor will help you build a strong foundation for your business.
There are some things in life you can’t do by yourself. Take, for example, the death of a family member. It’s something almost everyone goes through. Survivors are left to immediately deal with funeral and burial choices. Cost and communication, mainly with other family members, play a crucial role in how those decisions are made.
To get there, though, there needs to be a facilitator – someone who makes funeral and burial choices easier. These directors, or in many cases counselors, are experts in their field. They know how to deal with death and all the emotions that go with it. They take into consideration expected costs, and they must be efficient and quick at budgeting time.
When you’re in the pre-planning phase of your spa business venture, you have a little more time than the above example. There’s time to research qualifications to find the right advisor and time to weed out the faux spa experts who provide bad advice and leave you with an empty pocketbook before you’ve even opened your doors.
But, like the family dealing with death and leaning on funeral home directors and counselors for advice, why would you not want to seek out spa experts for something you’re devoting your business life to? Why would you try to be your own spa expert when you can work smart and spend your time focusing on making other, just as important, decisions?
Think about it.
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