Business plan for a wood-fired sauna: ready-made financial calculations

Every person at least once in his life has thought about opening his own business, thereby dreaming of stopping working “for his uncle” and significantly increasing his income. One good idea is a sauna. Here you can relax not only your body, but also your soul, so there will definitely be customers. The main thing is the right approach. We will talk about how to open a bath complex below.

Our business plan for a wood-fired sauna consists of several points:

• bath format;
• business development;
• list of required documents;
• business specifics;
• choosing a structure for a bathhouse;
• bathhouse equipment;
• search for colleagues;
• business profitability;
• how to increase income from a bath business.

Market analysis

Before you start your own business, you need to analyze the market - competitors, risks and threats are constant components of any business, especially such a competitive one as the provision of services in the leisure sector.

Despite the fact that the solvency of many citizens has not only not increased, but also decreased, the demand for visiting a bathhouse or sauna has not decreased. And here you need to pay attention to the target audience - saunas have recently become more in demand, since the majority of visitors to such establishments are people aged 20-45 years.

Next are the competitors:

• Large enterprises – this includes establishments that provide a range of services. As a rule, these are not individual baths or saunas, but large recreation complexes - several baths (of different price segments), massage services, spa treatments, cooking, barbecue rental, etc. At the initial stage, it will be almost impossible to compete with such organizations, so it is better to locate yourself away from them.
• Small organizations - at the moment they make up the majority of the market and, subject to a competent approach, competing with them will not be difficult.

Please note that this is only a general analysis - before opening a sauna or bathhouse for public use, be sure to analyze the market in your city. This is important - at this stage there is no need to use template solutions, since there are regional nuances in any business.

Entertainment and wellness programs

Alcohol is considered to be one of the most banal and frequent entertainment elements of visiting a bathhouse in Russia. With a high degree of probability, it will become a permanent source of income for the enterprise. However, other entertainment options are also worth considering. For example, one bathhouse in St. Petersburg is located right on board the boat - as part of an additional service, visitors to the establishment are offered to dive into the water with scuba gear.

The wellness program, in turn, can be represented by some special services such as massage or tanning. It is important to remember that just visiting a bathhouse already gives the human body some healing and relaxes it. An interesting option would be to open a complex near a fitness center that does not have its own steam rooms or their cost is not competitive. This way you can find regular customers for your own bath business. In addition, it is permissible to enter into an agreement with representatives of the gym so that they conduct an advertising campaign in their establishment.

SWOT analysis

SWOT analysis means identifying external and internal factors that in one way or another can affect the development of a business. External factors include the following:

• Increasing the relevance of the offer.
• Offer of additional services.
• Increasing consumer demand.
• Low level of fixed costs.

Be sure to pay attention to the threats:

• High and possible further increase in competition.
• Changing customer preferences.
• High requirements for business organization.
• A somewhat complex technological process if you are considering a business plan for a Russian bath.

There are factors that, when implemented, can develop your business and leave competitors behind without much effort:

• Using quality materials and providing good services.
• In-depth preliminary market analysis.
• Using effective advertising tools.
• Work using modern equipment.

The rule is simple - the better the services you provide, the more stable clients you will have and the wider market coverage.

Based on this analysis, we can draw the following conclusion: a bathhouse design for a business should be based on the following:

• Selection and arrangement of premises.
• Development of a promotion plan.
• Development of profitable, special offers. This will especially work well at the initial stage of work in order to attract more clients.
• Selection of high-quality equipment and related products for the bath.

If you don’t want to open your own bathhouse right away or don’t have the opportunity, then you can start small: start developing a business on goods for baths and saunas.

Demand

The success of the entire endeavor depends on how correct the choice of the type and format of the bathhouse is. This is the basis of success. The most popular in our country, which is quite logical, is the Russian bathhouse. Having given preference to one of the options, you should not dwell on it. Explore other areas and gradually implement them into life.

For example, the Japanese bathhouse is quite unique for Russia. Its essence boils down to immersing a person first in one barrel containing a decoction of medicinal herbs, and then in another - with sawdust heated at a temperature of 45 degrees Celsius. The final stage of this procedure is a massage using sea stones.

If your budget is limited, then it’s fashionable to try installing a hot tub. Most models are designed for 10 people, so it will be a good place to relax after a hard week of work with friends.

In addition, salt cabins have recently become increasingly popular among bathhouse lovers. They are equipped with special lamps that permeate the air with tiny particles of salt that is beneficial to humans.

Marketing – how to start promoting?

At the initial stage of development of a bathhouse project for a business, the marketing strategy is one of the most important points, as this will bring customers. The following will work well in this area of ​​business:

• Signboard – it should be bright, informative, with a memorable original name.
• Development of your own website, group on a social network.
• Contextual and targeted advertising.
• Registration in online catalogs.
• Advertising in the media, radio and television.

You can also hold attractive promotions and sweepstakes - this will also help attract customers.

How much money do you need to start a business?

The total cost of building a bathhouse from rounded logs on a turnkey basis will be 650,000 rubles. This price will include delivery of the material and installation of the bathhouse at the customer’s site. Another approximately 220,000 rubles will be spent on preparing the site for the construction of a bathhouse and installing communications (water, electricity, gas).

The project manager plans to take on the functions of the complex administrator personally. The manager’s responsibilities will also include accounting and submitting reports to the relevant structures.

Production plan

When calculating the profitability of a sauna as a business, special and even priority attention should be paid to the production plan. Let's start with the staff - as we said above, the optimal start would be 2 administrators, who will simultaneously do the work of a cleaner. Their responsibilities may include the following:

• Client meeting.
• Providing clients with everything they need to visit the sauna/bath.
• Familiarization with the rules of conduct in the establishment.
• Acceptance of payment for services.
• Registering clients by phone, making reservations.
• Cleaning the premises, ordering necessary goods and consumables.

For additional payment (or better yet, hire a separate employee for this), you need to perform the following functions:

• Development of a group on a social network.
• Development and content of the site.

The salary of administrators is fixed, the average paycheck on the market is 35,000 rubles. So, in your sauna business plan you need to include a monthly salary of at least 70,000.

Repairing the premises, as well as purchasing everything necessary, is also the lion’s share of expenses. The room must be at least 100 sq.m. – steam room, relaxation room, massage room, shower room, utility rooms and reception desk. Additionally, a kitchen and bar can be equipped.

It is possible that the premises will have to be redesigned; the cost of the work will include the following:

• Actually, the redevelopment itself and the legitimization of this process.
• Carrying out repairs taking into account existing requirements and standards.
• Bringing the premises into an appropriate form in accordance with the requirements of SanPin.
• Equipment for shower, toilet, steam room, rest room.

As for equipment, when developing a bathhouse project for a business you will need the following:

• Jacuzzi or shower. An excellent option is a bathhouse with an outdoor pool, but then the expense item will increase significantly.
• Infrared sauna.
• Steam room stove.
• Ventilation system.

You will also need furniture:

• Tables, chairs and sofas for the rest room.
• Benches in the steam room.
• If massage services are provided, a massage table will be provided.

You will also need to select accessories for the furniture - pillows, blankets for benches and sofas.

Since people want to rest and relax after a bath, they may need some equipment: an audio system, a TV. The administrator himself will need a laptop.

Specifics of the bath business

When renovating the building in which the bathhouse will be located, or remodeling it, you should remember some important points. Firstly, about the high probability of fire. For example, if you are planning to implement a business plan for a wood-burning bathhouse, then you need to make a separate entrance for visitors and an emergency exit intended for emergency situations. Also, special attention should be paid to windows and doors - they should open freely; it is not recommended to install bars on them. In addition, the room must be equipped with a supply and exhaust system and a ventilation grill must be made at the bottom of the door (a gap of approximately 3 cm between the door and the floor is allowed).

We must not forget about the dimensions of the steam room. Its maximum permitted area is 24 square meters. m, and the ceiling height should be in the range from 1.9 to 2.4 m. The presence of smoke control and irrigation systems in this room is mandatory.

A disadvantage of the bathhouse business is the need for relatively frequent (about once every 3-3 years) major repairs of the entire building. However, with stable revenue and decent profits, these costs will be quite affordable.

Financial plan

How much does it cost to open a sauna or bathhouse? The profitability of a sauna as a business can only be calculated if there is a well-developed financial plan. Approximate costs:

• Repair of the premises, including redevelopment - 550,000 rubles.
• Purchase of equipment – ​​240,000.
• Purchase of furniture - about 70,000.
• Purchase of bath accessories – 10,000-15,000.
• Equipment – ​​about 50,000 rubles.
• Website development – ​​minimum 35,000 rubles.

Thus, you need to budget at least 966,000 rubles for initial expenses.

Further costs include:

• Rent of premises including utility bills – about 70,000 rubles.
• Advertising expenses (minimum) – 10,000 rubles.
• Salary based on 2 administrators – RUB 70,000.

So the amount of monthly expenses will be at least 150,000 rubles.

Don't forget about taxes. The UTII system will be the most profitable - the tax for the quarter is approximately 6,000 rubles, that is, you will need to pay about 2,000 rubles per month, which is, in fact, pennies.

Taking into account all expenses, net profit will be about 87,100 rubles, minus 2,000 taxes - a total of 85,100 rubles.

Let's calculate the profitability: taking into account the pledged 965,800 rubles and the monthly profit, the payback can be achieved no earlier than after a year of stable operation.

Profitability of bath business

Now we can talk about how profitable the business plan for the bath complex is from an economic point of view. As we managed to find out, opening a bathhouse will require from 3 to 5 million rubles. This amount includes:

• renovation of premises;
• purchase of equipment;
• wages to employees for a month of their work;
• purchasing food and beverages;
• tax contributions to the state budget;
• unplanned expenses.

Every year you will need from 7 to 10 million. Our business plan for the bath complex assumes a cost of services of 500 rubles per hour and 2,500 rubles in the evenings for renting the entire complex. With such indicators, revenue for the year will be approximately 13 million rubles. With a profit of 3 million rubles, the payback period for the business is 2.5 years.

Selecting a bath type

Regardless of what type of bathhouse project for business you choose, remember one thing - the services must be of high quality and comply with traditions. If this is a hammam, then follow the traditions of the Turkish bath. If you have a Russian steam room, birch brooms, steam and tea with bagels are mandatory attributes. If it is a Finnish sauna, install the appropriate equipment.

We open a sauna or bathhouse for public use - select the type of establishment:

• Classic Russian steam room - the temperature in the steam room is from 50 to 90 degrees. Additional services in the form of massage, installation of a font, as well as relaxation rooms will only be a plus for your business.
• Finnish saunas have a higher temperature than Russian steam rooms, but lately they have been in demand.
• Turkish baths or hammam - to be fair, it is worth saying that there are very few Turkish steam rooms in their classic form. So there is every chance to establish your own local Ottoman Empire.

Which bathhouse is more profitable to open in 2020?

In Russia today, the Russian bathhouse, Finnish sauna, Turkish hammam and Japanese ofurro are popular.
But the first two types are more common, since the latter, especially the Japanese one, are relatively new on the service market. The most in demand are baths that have expanded functionality - bath complexes that include a swimming pool, bar or cafe, billiard room, massage parlors, etc. In recent years, a new trend has been gaining momentum - establishments with bedrooms, often located on the attic or second floor, combining the functions of a bathhouse and a guest house. Baths with an expanded terrace area are also in demand. But you need to take into account that large bath complexes quickly pay for themselves only in megacities. For a small town, a small bathhouse that includes a minimum range of services is more suitable. This is the most profitable option for opening an establishment from scratch.

Our business plan is designed to open an establishment with minimal investment in 2022.

Advantages and disadvantages

This type of business has only one main drawback: a long payback period and significant utility costs. But there are more advantages:

• The service is always in demand, and if you also organize a whole recreation complex in a picturesque place outside the city, the number of clients will increase significantly.
• A small private bathhouse can be organized even in your yard, if you have a private house.
• In fact, not much starting capital is required - 1,000,000 rubles will be enough to get started.

So a bathhouse or sauna as a business is a completely profitable project.

Project Description

The goal of the project is the construction of a Russian bathhouse in the city of N with the subsequent rental of the complex. A small marketing study of several areas of the city revealed an insufficient number of Russian baths with decent service and quality of services provided.

To implement the project, it is planned to attract own funds in the amount of 300,000 rubles and borrowed funds (bank loan) in the amount of 680,000 rubles. In total, the total cost of the project is 980,000 rubles.

Economic indicators of the project implementation:

• Net profit per year = 479,800 rubles;
• Farm profitability = 45.9%;
• Project payback = 24 months.

Documentation

A sauna as a business requires mandatory documentation, since otherwise the conduct of business will be illegal and you will face a large fine for this, at a minimum.

To register a bathhouse as a business, you need to collect approximately the following package of documents:

• Permission from the fire department.
• If the establishment is located in a residential building, then permission from the Housing Inspectorate.
• Permission from the sanitary and epidemiological station.
• Agreements for: garbage removal, maintenance of the ventilation system, disinfection of premises, washing of clothes.
• Lease contract.
• Service agreement for communication systems.
• Agreements with public utilities for the supply of electricity, water, heating.

And most importantly - documents for a registered enterprise - individual entrepreneur or LLC.

Where to start implementing the project

Currently, practical activities have begun to implement the “Russian bathhouse” project:

• Individual entrepreneurship has been registered with the local tax service;
• A long-term lease agreement was concluded for a land plot of 150 m2 owned by the municipality. The cost of rent is 7,000 rubles per month.
• A company has been found that supplies Russian baths. This company is engaged in the development, construction, delivery and installation of turnkey bath complexes.

Selecting a room

The choice of premises should be based on the fact that the minimum area should be 100-150 square meters, the following premises should be equipped:

• Steam room.
• Shower, possibly a swimming pool.
• Rest room.
• Locker room.
• Bathroom.
• Utility premises.
• Administrator's desk.

If it is intended to provide additional services, then separate premises are also needed for them - this must be taken into account before it is rented.

As for the location itself: take into account what the market analysis will give you. If possible, arrange a bathhouse outside the city, but in such a way that you can easily get there by public transport, that is, within the city.

A good option would be to rent premises on the territory of a health complex, hotel and restaurant complex, or sports complex.

Wide range of services

A bathhouse that consists of a vestibule, steam room, relaxation room, shower and toilet is unlikely to attract interest. If there is something additional in it, for example, a hall for health procedures, then people will not bypass such an establishment, since all of us want to try something new. This option is especially relevant if you are planning to open a public bathhouse.

In a limited space, you can definitely turn around - organize a children's corner where kids can go about their business and not disturb their parents while they relax and have fun.

Repair and decoration - what you need to consider

A bathhouse is, first of all, a room with high humidity and increased fire hazard. Therefore, when choosing a finishing material, consider the following:

• It must be hypoallergenic.
• Equipment and finishing materials, as well as accessories, must be moisture resistant. Therefore, it is better to purchase everything you need in specialized stores.
• When finishing, preference should be given to natural materials. So, in the steam room you need to choose a tree: linden, pine, cedar, oak. Linden, by the way, is not only beautiful, but also useful - when heated, it releases useful resins, so we also have aromatherapy.
• All communications must be perfectly protected from moisture, otherwise the risk of fire and short circuit will increase significantly.

When decorating, you should adhere to a colorful style - that is, follow the traditions of the bathhouse or sauna that you chose. So the room will really be a bathhouse or sauna, and not just a washing establishment.

Bath complex equipment

The list of equipment will depend on both the size of the enterprise and the type of bath premises. For example, a wood-burning stove will cost about 1,800 rubles, and its electric counterpart will cost 1,000 rubles. A steam generator can be purchased for 800-900 rubles. In addition, you will need various compressors, filters, brooms, towels, slippers and lights in the steam room.

Additional services such as a solarium and spa will require more significant investments. For example, one solarium cabin can cost about 10 thousand rubles, and spa equipment can cost more than 20 thousand rubles. This expense item of a ready-made plan for how to open a bathhouse business should undoubtedly include interior decoration, on which it is not recommended to save much, since the comfort of visitors’ stay will directly depend on it.

Staff

You can get by with only two administrators only at first, and even then, it will be difficult, and provided that you yourself have bathing skills. In the classic scheme for organizing a bathhouse as a business, there should be the following employees:

• Bathhouse attendant - one or more, depending on workload.
• Administrator.
• Cleaner, if the administrator does not do it.
• If there is a kitchen - a cook, a waiter.
• An employee who is responsible for inventory and maintaining all systems in working order.
• Massage therapist, if they provide such services.

Again, recruitment will depend on what additional services will be provided, and the scale of the business and the average level of attendance will also be taken into account.

Organizational and legal issues of opening a bathhouse

In order to start working, you will need to register with government agencies. The ownership form of either an individual entrepreneur or an LLC will suit you, but the second option will be more preferable if you plan to sell alcohol. The main OKVED code that will need to be entered is:

93.04 – physical education and recreational activities.

The rest are selected depending on the areas in which the work will be carried out. In each case, this set will be individual.

Next, you will need to choose a tax system. There are two optimal options - UTII or simplified tax system.

To accept payments by bank transfer, you will need to open a bank account. Also, before registering a company, make sure that you have a complete package of documents for the premises:

• a document confirming that the premises have been removed from the housing stock, if the sauna is opened in a multiple-family home;
• official rental agreement, leasing agreement or certificate of ownership;
• redevelopment project agreed upon with the Housing Inspectorate, the organization servicing the house, state architectural and construction supervision, SES service, Fire Inspectorate and Rospotrebnadzor.

Do not forget that the premises must meet all SanPiNov requirements.

Risks

A bathhouse as a business has its own risks, just like any other type of business:

• Low attendance, which can lead to negative work. But, this can be resolved with a competent marketing strategy.
• Lack of clients due to poor quality services - there is no one else to blame but yourself, so do everything in the best way, with care for the client.

All other business troubles can be foreseen and even prevented - the main thing is to correctly calculate the business plan for a sauna or bathhouse, arrange everything correctly and launch advertising. More on the latter later.

Location

The ideal option for a bath business is, of course, the city center. But, to put it mildly, not every individual entrepreneur has the money to rent premises in such a place, much less buy it. Therefore, find a building at least near the road. If this is not possible, and the bathhouse is located in an area with little traffic, then a competent advertising campaign should be carried out.

Thus, opening a bathhouse and achieving success in this area is not so difficult. The main thing is to carefully consider all aspects of this undertaking, which, we hope, the bathhouse business plan with calculations given above helped with.

The advertisement is engine of the trade

Any business needs advertising, otherwise almost no one will know that there is such a good company with attractive offers, which means there will be no customers. Therefore, your advertising is the following:

• It should be different from competitors, but at the same time targeted. That is: you don’t need to do it like others do, even if everything is great there. Your business should have its own identity and not be a plagiarism of something.
• Having your own website with an order form, reservation, reliable and up-to-date information with original photos is a must. It wouldn’t hurt to have a blog, or even your own channel on youtube.com.
• A page or group on a social network is the same as with a website.
• Advertising in the media - newspapers, magazines, some commercials on radio and television also works well.
• Banners, signs, city lights, even billboards - such things need to be installed in areas where there are large crowds of people and preferably tired people - a person comes home from work, he is tired and wants to rest, and here is your proposal.
• Only truthful information - no need to promise something that does not exist and will not happen - low prices, imaginary promotions, and so on - these are tools of black promotion. Yes, the client will come, but only once and will tell others not to come.
• USP - offer the client something unique, something that competitors do not have and will be useful to him.

In fact, everything is simple - be original and do your work efficiently, with care for the client. If a person leaves your bathhouse rested, healthier and satisfied, then he will not only come to you, but also bring his friends and relatives.

Location

The constant flow of visitors is associated with the location of the sauna. However, opening a sauna in the busiest city center makes no sense. People don’t go to the sauna on the way, like, say, to the store.

It is advantageous to open a sauna in a neighborhood with a large number of houses or next to a large residential complex. A sauna can be a profitable addition to your existing business. If you are the owner of a restaurant, cafe, hotel or fitness room, then you can open a sauna in part of an already functioning building.

Summary

For information about what a resume should contain, read the article Structure of a Business Plan Summary.

The goal is to open the Oasis public bathhouse from scratch in the city of Perm. The establishment will be intended both for family holidays on certain days, and for separate pastimes. The bathhouse will be aimed at citizens with an average income. This class is the most actively using services of this type.

Depending on the days of the week, it will have its own program. The presence of two steam rooms: Russian and Turkish, will allow each client to choose the one they want, depending on their preferences. The presence of a small swimming pool will provide even more relaxation. The children's area on the street will provide an opportunity to have a great rest not only for adults, but also for children.

Initiator of the project

The work of opening a bathhouse will be carried out by a person who has previously worked in this field, but who has no previous experience in opening his own company. After studying the business “from the inside,” it becomes clear that this type of recreation is in great demand, and the absence of similar establishments in the area in which the activity is planned excludes the presence of strong competition.

Investment costs

Investment costs will amount to 4,233 rubles. Investment costs include:

• Registration of an LLC - 10 thousand rubles,
• Obtaining permits - 50 thousand rubles.
• Acquisition of a land plot and registration of its ownership - 750 thousand rubles,
• Construction of a bathhouse - 1,000 thousand rubles,
• Repair and preparation for activities, including the purchase and commissioning of specialized fire fighting and other equipment, purchase, assembly and installation of furniture and interior items - 1,500 thousand rubles,
• Installation of a swimming pool - 1,000 thousand rubles.

The bathhouse is located on a separate plot of land with access roads and has a separate entrance.

In addition to investment expenses, before reaching break-even operation, you will need to invest an additional 901 thousand rubles,

Project financing

The project will be financed partly from its own funds, and partly from the funds of the project initiator. The project organizer plans to invest 2,033.7 thousand from his own funds, of which 1,132.7 thousand rubles. will go to capital investments, and 901 thousand rubles. will be used to maintain the operation of the business until it reaches profitability. The remaining 3,100 thousand is taken out on credit at 15% per annum, the collateral for the loan will initially be the entrepreneur’s apartment and dacha, after the bathhouse is put into operation, the premises and land plot of the bathhouse will serve as collateral, and the property of the project initiator will be removed from the collateral.

Payback period

The calculation was made for 10 years. Inflation is taken at 10%. After the calculation, the following performance indicators were obtained:

• The settlement period is 10 years.
• Discount factor (WACC) - 13.66%.
• Inflation - 10%.
• The simple payback period is 4.33 years.
• The discounted payback period is 5.25 years.
• NPV - 4,018.35 thousand rubles.
• IRR - 3.0%.

Suppliers and contractors

Construction, repair work, finishing, communications will be carried out by a contractor who will provide a discount due to the amount of work. A work schedule will be drawn up taking into account production breaks. Thanks to the work being carried out by one contractor, all preparations for the opening will be completed in the shortest possible time.

Equipment and furniture for the bathhouse will be purchased from suppliers with whom the organizer previously worked. They not only sell equipment, but also provide maintenance, and the furniture offered by these suppliers is made specifically for baths, which allows it to remain like new for a long time under rather difficult operating conditions.

Services

The main purpose of the establishment is to relax in steam rooms: Russian and Turkish. An infrared sauna cabin will be installed. This variety is due to the different tastes of clients: some want it hot, some are interested in healing the body, some want to relax in a calm environment. After warming up your body, you have the opportunity to cheer up and dive into a small cool pool equipped with lighting.

The common seating area includes a large table and a kitchen corner, allowing you to bring your own food, cook it and serve it to guests. There is also a plasma TV with satellite TV and karaoke equipment.

The presence of a children's area outside will make recreation for children interesting.

Lovers of fresh air will enjoy the barbecue, gazebos and swings in the local area.

The reception sells food and alcoholic beverages, but you can bring your own food into the establishment. And although healthy relaxation is encouraged in the bathhouse, drinking alcoholic beverages is permitted, and alcohol is also available for sale.

ATTENTION !!!

Practice shows that by ordering a business plan from specialists, you will save time, increase the quality of the finished document by 4-5 times and increase the chances of receiving investment by 3 times.

Order a BUSINESS PLAN

Starting investments

To launch a project from scratch, serious investments are needed.

Here is an approximate calculation in rubles:

• rent - 40,000;
• current repairs, possible redevelopment - 120,000;
• purchase of furniture and equipment - 300,000;
• consumables - 20,000;
• wage fund (for the first month of work) - 130,000;
• business registration - 10,000;
• advertising campaign - 50,000;
• unforeseen expenses - 30,000.

Thus, to open a small bathhouse complex, you need starting capital of about 700,000 rubles.

Equipment

An impressive expense item is associated with the purchase and installation of equipment. You can do without lush indoor interiors, but equipment is something you shouldn’t skimp on. The gas or electric stove in the steam room, filters, and compressors for the pool must be of high quality and reliable.

The cost of initial capital includes: furniture for rest rooms, dressing rooms, massage tables, solarium (if it is planned to have one). In addition to global purchases that will last for years, we also need those that will have to be updated periodically: scoops, towels, disposable slippers, etc.