Introduction
The proposed business, in this case, is a 24-hour spa, massage, and wellness centre. A 24-hour spa, massage, and wellness centre is a type of business arrangement that offers services to customers needing relaxation during the day and at night. In the world today, people are more concerned about their general health. Therefore, they seek ways to help them relieve stress and improve their mental and physical health. A spa helps these individuals by providing the necessary services. This feasibility analysis aims at determining whether the proposed business is feasible by analyzing the product feasibility, financial viability, organizational viability, and market viability.
Product/Services Viability
A 24-hour spa, massage therapy, and wellness centre provides unique services to people willing to relax their minds and for physical wellness, especially those with busy schedules. As mentioned earlier, people today are much more aware and concerned about their general well-being. Therefore, the proposed business is much more desirable. In addition, the global spa market is also expected to reach $154.6 billion. It shows that the demand for spa services is increasing with time. Hence, it presents an excellent opportunity for the business to expand.
Market Viability
The spa business is in great demand. Therefore, many people strive to enter the markets to meet increased demand. It means that there is increased competition for the same business. However, the need for spa services is expected to increase with time. According to research, the spa market might have an annual increase of 6% from 2021 – 2025 (Schmidt, 2021). Therefore, it presents opportunities for new businesses to enter the markets to thrive in meeting the increasing demand. The business targets people seeking relaxation services, including people with busy schedules, those who work late at night, and those with insomnia.
Organizational Viability
The organizational feasibility of a spa business accounts for the management and resources. Regarding management, a spa business requires a team with capabilities and good experience in managing and operating a similar business. The team should understand the businesses’ customers, regulatory environment, and industry trends. Further, the management should possess strong leadership skills, such as practical management skills and the ability to motivate employees. Regarding human resources, a spa business would require well-trained and competent staff. The business needs licensed therapists, receptionists, cleaners, and security personnel. Human resources should receive proper training to ensure they provide high-quality services. Further, the business should have a robust human resource management plan, which includes plans regarding recruitment, training, and development programs.
Financial Viability
There are various factors to consider when setting up a 24-hour spa, massage, and wellness centre, including services offered, the size of the business, and the location. Generally, the total initial investment cost of starting the business could range from $500,000 to $1,000,000. On the other hand, the anticipated revenue would depend on various factors such as the number of customers served, pricing strategy, and services offered. The business would generate revenue by charging membership fees, service fees, and other retail sales. According to market research, the average customer fee for one visit is $169. This means that if the business receives 20 visitors in a day, then the annual revenue for the company would be $1,233,700.
Conclusion
A 24-hour spa, massage, and wellness centre would be a viable business that could bring in significant profits. Increasing demand for spa services shows that the company can improve its revenues and expand as it thrives on meeting the demand. Further, even though the increasing demand attracts more similar businesses in the industry, with well—trained and competent employees who provide high-quality services, the company can survive the growing competition and maintain a competitive position in the market. Moreover, having an efficient management tea which is motivated and committed to making the business operations successful by providing all required resources and encouraging employees to offer their best services can influence the performance improvement of the business.
References
Schmidt, S. (2021, November 17). The growth of the Global Spa Industry. Market Research Blog. Retrieved March 19, 2023, from https://blog.marketresearch.com/the-growth-of-the-global-spa-industry
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