In order to start this business, it is necessary to draw up a bath business plan, which will help to take into account and determine the sequence of actions, as well as the pros and cons of this business and the expected income.
Bath business plan: what is the essence of this business?
First of all, this is the construction or reconstruction of the premises with subsequent equipment and a functional device for the provision of paid services.
In addition to the main direction — renting out — there are many additional services and goods that can be offered in combination with the main service, or as an additional paid service. The list of such services can be very extensive, it all depends on the size and possible functionality of the bath complex.
The most common additional services:
- Sale of accessories (brooms, hats, bathrobes, fragrances for stones, etc.);
- massage procedures;
- Sale of food and beverages (from ordinary tea to a mini-shop);
- Rental of disposable or reusable accessories (sheets or bathrobes, towels, slippers and much more);
- Bath attendant services.
Bath business plan: prospects for this business
The advantage of this idea is that this service will always be in demand on the market, no matter what kind of sauna you open: a small wood-fired one or a huge sauna complex.
With the right marketing strategy and good advertising, as well as a favorable location, there will definitely be customers. And if there are visitors, there will be profits.
What are the benefits of this business:
a) social demand — you should always wash;
b) lack of significant competition in the market for such services;
c) the possibility of starting a project of various scales;
e) quick return on investment and the possibility of expanding the business at the expense of profits.
Bath business plan: project implementation cost
The estimated cost of this project consists of the following main blocks:
To open a bath, you need to decide on the room. In the construction option — a bath with a total area of 50 m2 will cost $ 2,500,000, a complex of 500 m2 — about $ 25,000,000.
Further costs will be made based on the construction of a 50 m2 bath:
— construction of a bath — 2,500,000 dollars;
— steam generator and oven about $120,000;
— furniture from $250,000;
— staff salary (based on 1 year ahead) 100,000 rubles;
— intensive advertising 100,000 rubles.
The total initial investment will be about 3 million dollars.
In the option of renting the premises, the initial investment will not exceed $1 million.
Bath business plan: marketing part
For the successful development of this business, it is necessary to promote sales and recruit qualified personnel.
Employees are the tool that will attract and win a regular visitor. After all, many are now looking for not just a service, but a service. A high quality of service will quickly produce effective word of mouth advertising.
Investments in advertising must be made in large volumes at the initial development of the business. The goal is not only to attract people to the bath, but also to make your service recognizable, and to disseminate information about its existence as widely as possible.
Pitfalls of the bath business
Like any business, in this case there are also a number of disadvantages:
- slow buildup — you should not count on a large flow of customers at once. Information about your institution will be distributed gradually. But when word of mouth starts working, there will be people who will start visiting your bathhouse on the advice of friends or relatives, i.e. those people whose opinion is trusted.
- seasonality — from May to mid-September, the attendance of baths drops significantly, this is due to the temperature regime on the street and the national color of our population, who prefer to visit the bathhouse during the winter cold since ancient times.
- visible competition — there are competitors in any industry and field of activity. The bath business is no exception. However, the density of competition here is significantly less than, for example, in trade, due to the significant level of capital investment at the start. Therefore, by occupying your niche, you can earn quite well.
- high level of start-up capital — starting this type of business requires large investments, however, a well-chosen location will allow you to receive a decent income over time.
To implement a bathhouse business plan, you should follow these steps:
- Find and purchase suitable premises or land. For a bath, a place remote from the center is also suitable — on the outskirts of the city, near nature, a densely populated private sector.
- Build or rent and equip a building.
- Purchase furniture and necessary additional equipment and accessories.
- Select highly qualified staff and train them.
- Run ads.
Successful undertakings do not depend on luck, but on your focus, desire and hard work.