Wellness centres are becoming more popular in the US and the world. The overall wellness industry is valued to be about $4.5 trillion in 2018. The US has one of the biggest market shares, amounting to almost $52 billion in revenue during the same year. It’s expected to grow by a healthy 6% in the coming years. With these numbers, it’s easy to stay that any wellness centre can succeed especially given the numbers.
However, if you’re unfamiliar with the industry, it can be tough to get into it without knowing where to start. If you’re planning to open your first wellness centre, here are some things you need to know.
If it’s your first time starting a business, you must know the basics. If you already have experience running a business, skip this part. Now, we can’t talk about this for long, so we’ll keep it brief. The basics of starting a business are that you need to have a business plan, have your finances ready, and have the requirements to run your business.
When writing a business plan, you’ll have to write the description of your business, its services and products, and its core values. Generalize it as much as you can and make sure everybody can understand after this is your finances. Generally, it’s good to have between $25,000 to $50,000 in your bank account on top of your presumed overhead cost when starting a business. Overhead costs can differ per industry, so you’ll have to do your research regarding the size of your wellness centre and how much you have to pay for it every year.
The last thing you need to do is to get the licences for your business. Licence cost can depend on your state, but it’s usually between $100 to $300. Remember that you need to pay for this every year so make sure you have the funds for it. Alright, let’s get into the industry and how to open your first wellness centre successfully.
The Wellness Industry
As stated earlier, the wellness industry is a pretty big industry earning trillions of dollars every year. What we haven’t talked about is its various sub-sectors. There are many sub-sectors in the industry. The five of the biggest sub-sectors are personal care ($1 trillion), nutrition ($720 billion), wellness tourism ($639 billion), and fitness ($595 billion).
Most wellness centres fall into the sub-sector of spa and wellness ($119 billion), which earns only a fraction of the biggest sub-sector of the wellness industry. But this doesn’t mean that you can’t include all of these sub-sectors in your centre. It’s highly suggested that you do it later, but it’s important to specialize right now. One of the growing markets we suggest you start the workplace wellness market valued at $48 billion.
Wellness for Employees
Wellness centres that have partnerships with local businesses and companies are the most successful. The workplace wellness market is one of the smallest in the industry, but don’t let it fool you, it is fast-growing (CAGR of 7%, higher than the entire industry), and the revenue you can get out is higher when compared to the other competitive sub-sectors in the industry. Two of the essential things you must have for your wellness centre to cater to employees are fitness and chiropractors. Weird combination, we know, but hear us out.
There is a huge market for osteopathy if you consider the millions of people experiencing back pain due to work every year. One of the best treatments for back pain is a chiropractor. It is a non-invasive treatment that is both satisfying and long-lasting when compared to other treatments out there. If you want to capitalize on this, you’re going to need an osteopathic clinic in your wellness centre. It’ll drive in clients from companies within your area. It’ll also help you gain other clients nearby.
Fitness for Your Wellness Center
As we all know, millennials are dominating every market in the world. They also have one of the highest spending power, amounting to $1 trillion every year. That’s almost the entire wellness industry alone! If there is another thing we know is that millennials love staying fit. If you want to take advantage of the spending power of millennials, you must open a gym with fitness instructors in your wellness centre. This will surely grab the attention of many companies in your local area, and it won’t take long before they start negotiating a membership fee.
Workplace wellness works the best when you partner with companies when it comes to your services. This should be your main goal when you open your first wellness centre. Technically, this will help you drive sales without the need to manage it since you’ll have regular clients directed into your company. Consider working with insurance companies as well, and offer free services to those who have insurance policies.
When it comes to opening a wellness centre, it’s all about capitalizing on your target audience. By having these essentials, you can capitalize on two of the biggest consumers of the wellness industry in the world: employees and millennials. Once you can capitalize on this, you can grow your wellness centre in the future.