How Much Does It Cost to Start a Spa Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 22
- 3 min read
Starting a spa business is an exciting venture into the booming wellness industry, but it requires careful financial planning. Whether you're launching a day spa, massage therapy studio, beauty spa, or med spa, understanding the startup costs is essential for success—and for protecting your investment with the right insurance coverage.
At Wexford Insurance, we specialize in helping spa and wellness entrepreneurs secure tailored insurance solutions. If you're starting a spa business, this guide will walk you through the typical costs and help you plan your budget wisely.
Average Cost to Start a Spa Business
Startup costs for a spa business can range from $155,000 to $552,000, depending on your location, size, and services offered. Luxury spas or med spas may exceed $1 million in total investment.
Key Spa Startup Expenses
Here’s a breakdown of the major categories you’ll need to budget for:
1. Leasehold Improvements
Renovating your space to create a relaxing, functional environment can cost between $30,000 and $105,000. This includes flooring, lighting, plumbing, and treatment room buildouts.
2. Spa Equipment & Furniture
Expect to spend $40,000 to $150,000 on massage tables, facial beds, hydrotherapy tubs, pedicure chairs, and waiting area furniture.
Explore more here.
3. Technology & Software
Booking systems, POS software, and wellness apps can cost $10,000 to $22,500. These tools streamline operations and enhance customer experience.
4. Licensing & Permits
Depending on your state and services, you may need:
A general business license
Massage therapy license
Esthetician or cosmetology license
Health and safety permits
Fire department clearance
Costs range from $5,000 to $12,000.
5. Initial Inventory
Stocking skincare products, oils, towels, and treatment supplies can cost $10,000 to $45,000.
6. Staffing
Hiring licensed professionals, receptionists, and support staff may cost $15,000 to $75,000 initially, depending on your team size.
7. Marketing & Branding
Launching your brand with a website, logo, signage, and promotional campaigns can cost $10,000 to $37,500.
Need Help with Marketing, SEO, and Website for Your Spa Business?
Running a spa business is demanding—finding new clients, managing quotes, and staying visible online can be overwhelming. Contractor Back Office helps you build a strong brand and attract steady work with expert digital tools.
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Why Spa Insurance Matters
Spa businesses face unique risks—from slip-and-fall accidents to equipment damage and professional liability claims. Working with a niche-focused agency like Wexford Insurance ensures your coverage is tailored to your services and state regulations.
Wexford Insurance offers:
Expect to budget $5,000 to $18,000 annually for comprehensive coverage.
Spa Startup Cost Table
Expense Category | Estimated Cost Range |
Leasehold Improvements | $30,000 – $105,000 |
Spa Equipment & Furniture | $40,000 – $150,000 |
Technology & Software | $10,000 – $22,500 |
Signage & Branding | $5,000 – $15,000 |
Initial Marketing | $10,000 – $37,500 |
Inventory | $10,000 – $45,000 |
Insurance | $5,000 – $18,000 |
Permits & Licensing | $5,000 – $12,000 |
Utilities Setup | $10,000 – $27,000 |
Legal & Accounting | $5,000 – $15,000 |
Staffing Costs | $15,000 – $75,000 |
Contingency Fund | $10,000 – $30,000 |
Total Estimated Cost | $155,000 – $552,000 |
Final Thoughts
Starting a spa business is a rewarding opportunity to serve your community’s wellness needs—but it comes with significant startup costs and operational responsibilities. From equipment and staffing to insurance and licensing, every decision impacts your long-term success. Partnering with a niche-focused insurance agency like Wexford Insurance ensures your spa is protected from day one.
Contact us today.