No matter how you came to the decision, opting to start a spa and hot tub business can be a great move. But it is important to know the proper steps to take to start that business from scratch so that it can grow into a successful endeavor. Follow this guide and you will have the tools that you need to begin this new business and put yourself in a position to succeed.
Create a Business Plan
Any good business needs a business plan. Without a business plan, it isn’t feasible to believe that your business will get off the ground. The business plan is just that: an idea of what the first five years will look like from a financial standpoint, what the projected revenue will be, potential pitfalls, etc. A business helps to reduce the chance of unexpected problems, allowing the business owner to prepare for the negatives to the best of their ability. By preparing for potential problems, business owners can navigate that potential minefield with greater success. If you have never constructed a business plan of your own, consider turning to a professional business plan writer. Just keep in mind that outsourcing this responsibility doesn’t mean that you will have none during the writing process. After all, a professional business plan writer can only do so much without you inputting the information. Outsource, but remain involved to get the most accurate business plan possible.
Learn More About the Industry
How can you hope to succeed in an industry that you know nothing about? It can start with basic knowledge and branch out to more specific business-related portions of owning and operating a spa and hot tub business. Start by learning about hot tubs. Learn how to build them, why people like them, and even review the best and worst hot tubs for under $500. This applies for any business. If you wanted to do something with dogs, learn more about dogs. It is the foundation of a solid business. There are a variety of resources out there that can be quite helpful, too. For instance, Povverful is great for tech while Valuehunta is great for just about everything else.
The point being that no one can succeed in an industry if they know nothing about it. Even if you happen to own a hot tub or spa, that doesn’t mean that you know the first thing about them. Seek out fellow entrepreneurs to talk to about the business. Pick their brain and learn what they are willing to teach. Best of all, many experienced hot tub and spa business owners will be willing to share their experiences. It might take a call or two but finding help in any form can be an invaluable tool for a newbie to the business.
Know Your Competition
Another common business practice is to take a look at the competition. There are a couple of reasons to do this. The first is that you can see what works. Starting a business is not recreating the wheel. Not everything that you do will be 100% unique to you. By looking at what similar business are doing well, you can help cut down the learning curve by copying those things. You don’t want to copy a business’ name or look, but the business model can be a great place to start. Look at how they list sale items. Look at how they promote their business. Look at their inventory and try to get a feel for what moves and what doesn’t. These can be invaluable to a new business that struggles to find its footing in a new market. Moreover, you can get a better idea of who the competition is in your area. Understanding which businesses serve which areas can help you to know if an area has been saturated or if there is still room for growth. All of these factors can come together to provide invaluable information for a startup business. Particularly in the early months of the business, where things are new and finding the market is still a process, it can help make the growing pains less substantial.
Is it Easier to Buy or Start from Scratch?
Starting from scratch with a business is certainly appealing. After all, being able to build from the ground up can be appealing to our ego. Not only that, building from the ground up is a great way to put your own stamp on your business, provide completely unique branding, and so on. But starting from the ground up is also a much more difficult endeavor than simply buying an existing business. Not only that, but the scales will tip in favor of a business that is already established. And setting yourself up for success is what it is all about.
Even better, buying an established business provides a foundation. It could mean something as simple as a name but can also include inventory, vendor relationships, a storefront, and about a thousand other things that can be difficult to obtain when starting a business. Keep in mind that this may not be a viable option depending on what area you are setting up in. If there aren’t any suitable dealers in a business-for-sale transaction, you will have no choice but to start from scratch. These are all factors to keep in mind when starting a spa and hot tub business.
Knowing the difficulty of starting a business from scratch and seeing the benefits that buying an existing business, there is another thing to keep in mind: franchising. Buying into a franchise may not offer the unique, one-of-a-kind business building opportunity that you dreamed of, but it could provide the most successful path possible.
Buying into a franchise can offer quite a few things. For one, it can provide you with the baseline that you need to be successful. This means a commercial space, inventory, marketing and advertising tools, and a brand name to build on. When trying to become successful and make money off of your hot tub and spa business, having all of the tools in place from the jump can be infinitely invaluable. You may even want to start your endeavor by looking into potential franchising opportunities.
Just keep in mind that this may not be an option. Hot tub and spa franchises aren’t quite as prevalent as some other major chain stores, so you will need to look around your area to even find a potential franchising opportunity. Still, for the best path to success, there may be no better option than franchising. Having all of the tools presented to you at the start can help to eliminate the growing pains that can come with owning and operating a business.
When it comes to starting a spa and hot tub business, there is no easy path and each one offers its own unique set of challenges and benefits. Learn more about the industry, study the competition, and give yourself every tool possible to grow in the business. These are all the necessary starting blocks to get moving down the right path, establishing your business and setting it up for all the potential successes in the world.
- A Beginner’s Guide to Starting a Business in the Hot Tub Industry - September 26, 2020