Spa Industry - Starting a Spa in Columbus, Georgia

Starting a Spa in Columbus, Georgia

As mentioned in the Global Best Practices administrated by the International SPA Association (ISPA), "Spas are places devoted to overall well-being through a variety of professional services that encourage the renewal of mind, body and spirit." Here in Columbus, there are many spas that offer similar or the same service. These services have reached the peak of its maturity and have placed the spa industry at the declining stage of the life cycle. At this stage of the life cycle, the Spa industry must know what possible clients' philosophies are in order to maintain a basic competitive advantage. Meaning what are customers thinking, how do they feel, what would really make them happy when they come into your place of business? Many clients of the spa industry have begun to take advantage of luxuries that are offered by the spa service. Because of this, the shear amount of spas has amplified considerably within the past 5 years. People that visit the spas the most continue to raise daily. As it is with any other service, customers expect the best for their money. For instance, people now can step into any gym or beauty salon to receive similar "day spa services", but for a cheaper price. Services also have a lot to do with the product line that a business offer. Success can rest on this question, are the new products being used and developed and is it used to make a profit?

Many of the spa's objectives are different, but when considering the industry as whole a few are the same. The objectives are, becoming an established community spa destination for many of the population. Retain earnings and develop different strategies and use them towards gaining customer loyalty. Tailoring to each and every customer as requested. According to the International Spa Association, "Americans made 154 million visits to spas in 2008, up from 109 million in 2003, and that rate continues to grow in 2010, despite the economy." If this is true, why do people make such sacrifice for personal lavishness? According to the Spa Industry Statistics, "There were an estimated 14,615 spas in the United States in August 2007, up 6% from 13,757 spas in August of 2006." (Anitra Brown, 2007) The rate that spas grow is slowing down, in spite of the number of spas made. In 2009, in general the "Spa Industry has grown incessantly at a rate of 17.8 percent." (Brown, 2007) The focal issue concerning the spa industry is their growth is slowing down. Whether or not opening a spa here in Columbus, GA should be pursued. I asked myself these questions when I thought about if a person should venture into this market. How can the industry continue to grow and also make a profit? Is it feasible to start a spa here in Columbus and if so how marketable, profitable and accessible can a person make it? All of these questions will be illustrated and answered by my conduction of an analysis of the Spa industry.

Taking a look at the societal environment of the industry I realized that there are different aspects to running a successful business. These determinants must be acknowledged and recognized as key points to becoming an influence in the community at which the business resides. There are five distinct characteristics a company should take in consideration before, during, and even after their business life cycle. They are the key parts within a societal environment, economic, socio-cultural, technological, political-legal, and demographic.

After analyzing the economic external environment, I found interesting and useful information about the spa industry. The International SPA Association (ISPA) is considered to be the best of few top sources for information concerning the spa industry. According to the statistics of the ISPA, within the industry itself, day spas annual revenue was $5.294 billion in 2006. This is a decrease of profits from $6.794 billion that was earned in 2005. Despite the sudden decrease, the U.S. spa hard work generated $11.2 billion in 2009. This is up from $7 million back in 2003. But we're talking millions, considering the 1 billion that was lost between the year 2005 and 2006. This helps acknowledge that the rate of spas growing maybe slowing down. In fact the Spas their selves maybe gradually loosing profit annually. Regardless, the growth of the spa industry in numbers has constituted to an overall growth.

Socio-cultural is the relation or involvement of both social and cultural factors. It seems that many of the U.S spas motives are to capitalize the market and make profit only. Of course for any business increasing profit should be one of their main objectives. But the point here is that they forget about the social responsibility that they are indeed, to a large extent, accountable for. According to Paul De Vierville, "spas represent themselves as a vending, putting up for sale random cafeteria-style treatment menus that are geared primarily to sell sizzle and escape." (De Vierville 2003) Records do indicate that there are attempts and significant plans underway to give back life to the spa industry's culture. As Paul De Vierville expressed, he noted that "there is a sense of spa culture and a needed imperative for a socially responsible, environmental and ecologically sustainable position." He interprets this as being spa ecology, which supports truthful and reliable services. He contrasts the technological and economical factors of many spas in America and depicts healthful makeovers and authentic solutions that spas should bestow. All of these characteristics is what is missing in most spas and if I was to pursue the idea of starting a new spa.

Technology is the way we do things efficiently through the practical application of knowledge. Through the years advancement in technology has made many businesses profitable. The spa industry has doubled their sales when it comes to the use of modern technology. For example, the EP1226 has made its way as being equipment that most spas try to get hold of to offer as a preliminary service. The name may not be as evolutionary as the toaster, but the results will leave people feet to a most satisfactory condition. A technological aspect of doing business in the Spa industry has increased strategy and progress that initially increased competition. A good question that I found was, "Has the technology you've chosen helped your business generate transactions that result in cash and profit" (DSA/IMSA, 2008). Intriguing, but yet it sounds so simple. Many businesses pick up new technology that they have no experience in. Most of the time it result in a lost of investment into that new equipment or product and it will remain to bring problems until it is sent back or finally fixed. Think about it this way, how does a company