Location

[chixchix]

Hi since since you areading my posting,,please help..ok prob is ..There is a prominent location in SG which is frequented by expats, and there are 2 spas on 1 level...so one of the spas has a good clientale and the other hardly has anyone frequenting it.

Now there happens to be another shopspace for rent on that same level. I am planning to rent that shop space to open up a spa. I know the traffic is good and I am interested. But am I doing the right thing of opening my shop there since , I am a regular customer of one of this spas ??

As much as i feel bad.. i am thinking of the business prospects there . Please advise.

[sundaymorningstaple]

The first question I would have to ask is why is the 2nd spa not doing so well? If there is traffic doesn't mean that it will always do good.

I had a friend who opened a Thai Food stall in the Amara Hotel several years ago. It did excellently with the high mixed traffic there. He did so well he embarked on an expansion plan and opened a second outlet in Hougang Central which also had a high traffic density. It failed miserably! Why.

Both areas high extremely high traffic. The error in his thinking was this; at the Amara the traffic was mixed and a heavy majority of his customer base were NOT singaporean but expats. This was as very important point. When he opened in Hougang Central his customer were all Aunties and Kong Kongs & Ah Ma's. the remaining were traditional Heartlanders for the most part. These types are not very adventurous and shied away from the stall causing him to close within 6 months and with heavy penalties on the lease of the stall.

The moral of the story is you need to find out not only if the traffic will support the quantity of outlets and if the traffic density is of the right mix.

Opening a successful business is not just a matter of renting a shop and putting a sign on the door saying open for business. It would be like me opening an Ice Cube Distributership in Anchorage Alaska and expecting to make big money because there are lots of people there. The business has to be right for the location else the traffic won't be the right mix.

[ksl]

Hi since since you areading my posting,,please help..ok prob is ..There is a prominent location in SG which is frequented by expats, and there are 2 spas on 1 level...so one of the spas has a good clientale and the other hardly has anyone frequenting it.

Now there happens to be another shopspace for rent on that same level. I am planning to rent that shop space to open up a spa. I know the traffic is good and I am interested. But am I doing the right thing of opening my shop there since , I am a regular customer of one of this spas ??

As much as i feel bad.. i am thinking of the business prospects there . Please advise.

SMS makes a very good point!

But what I find interesting is your view point on the two spa's!

What makes you come to the conclusion that one spa as good clientele and the other not so good!

Just because there are more customers going into one than the other, doesn't say very much about a successful business, by that, I mean making profit!

If you follow business setup protocols by the book, you may well discover the answers you are looking for!

A spa is quite a substantial investment, so I suggest not cutting any corners, or acting on your whims, that this is a good location, you have alot of homework to do.

But first, the feasibility needs to be done, preparation is the most important, get all your data together and evaluate, what you have. Including costs and breakeven point, look at how you intend to take on the competition and stay infront of them, what have you actually got to offer, that they haven't got!

If you are not capable of checking this location out, and the two spa's, that are operating, to find out what is what, are any of them actually making profit, or are the just biding their time to die!

Just becuase you see lots of people going in, means very little, without other relevant facts.

So dress up in your best spy outfit and make a list of what you need to know about your competitors, and how you are going to react to change, because if you do open, and you have something they don't, it will not be long before they aquire the same or better.

But I would think if you can give excellent service, it would be a plus in Singapore

Like SMS said ensure you have a target market!

[chixchix]

I understand ,cos I am a regualr customer of 1 of this spas.. and everytime i go to my spa... ( this 2 spas are facing each other ) .. I can see the other one empty and the therapist is always outside trying to lure customers in.... n always there is only 1 or no customer inside...

Now I tried calling the number that was outside the shop..the person who answered claimed to be a tenant.. how do I deal with a tenant...and she is allowed to decide what kind of business I should do or not ?

[AdamC]

its a make-it or break-it investment

If you have decided :
-Large investment for setting up. Better to take-over one of the not-so-well SPA to save more cost on equipment etc etc. . Rational for doing so is also to prevent entering a war-era with other spas. If You take over 1 not-so-well-doing spa, You will have 1 less competitor. Market share higher / Risk lower.

-Marketing/Advertisement - If You want to do well, its hard not to do some advertisement. Focus on Unique concept of ur spa den anything else is one of the method.

But definately, if You are doing a SPA biz... most of the time, you will enjoy a steady growth after the first few mths, after u get a regular customer base. comparing the consumers.. its getting wider too.

[chixchix]

Yeap I dont mind, but you know shops in Holland V are hard to come by ..my main concern is that am I doing the right thing by opening a shop on the same level as the spa that I patronise... you know it might just develop some awful feelings for the owner...

[saint73]

Yeap I dont mind, but you know shops in Holland V are hard to come by ..my main concern is that am I doing the right thing by opening a shop on the same level as the spa that I patronise... you know it might just develop some awful feelings for the owner...

I feel that is not gd ideas doing the same biz with others..(SPA)
unless you are familar this type of biz...

If you are beautician, are more easily to success in this biz, or hair dressing experience...set as example JEAN YIP, why they are success in this industry? one reason is bcos they have learn from the basic and have experiences....AND YOU KNOW ,THEY ARE INVITED BY THE MEDIA , Inorder to success a biz, you must do more research and went oversea to hunt for gd biz ideas...to make your spa different from others..if you do same package compare with others, consumer willing to patronise more image SPA... Doing biz is not easy...

http://shop.rental-singapore.com/

[huggybear]

my crude analysis of asia has shown that you have to know people to succeed. As for attracting expat crowds, i think you have to find a market that is underserved (i.e. selling men's spa products...i like to buy nice shaving cream and lotions for men but found absolutely nothing). or you can find an area that is underserved (usually involves a high traffic area)

or reinventing a certain segment (i.e. offering working ladies in raffles area a 5 minute manicure?)

the needs / wants of locals vs expat is completely different. don't underestimate the importance of having a well trained loyal and competant staff. it's always difficult to find good stable reliable help.

[saint73]

my crude analysis of asia has shown that you have to know people to succeed. As for attracting expat crowds, i think you have to find a market that is underserved (i.e. selling men's spa products...i like to buy nice shaving cream and lotions for men but found absolutely nothing). or you can find an area that is underserved (usually involves a high traffic area)

or reinventing a certain segment (i.e. offering working ladies in raffles area a 5 minute manicure?)

the needs / wants of locals vs expat is completely different. don't underestimate the importance of having a well trained loyal and competant staff. it's always difficult to find good stable reliable help.

MEN OF FACE is cater of Men 's spa products....

[Kurozu]

I always think that "business is business", and one's feelings cannot get into the way.

If the location is really good, and you think you can make a profit, go ahead and make your spas. But if your feelings come into the way of blinding or hindering your business ability then I suggest you forget about it.

I have seen a lot of good prospects gone wrong because of other non-business related problems.

I think that whenever one has to make a business decision, one has work out their personal problems first before anything else. It is very difficult to have a successful business when one's personal problems keep coming back. If you are uncomfortable about the whole situation, then dont do it. There is always another opportunity.

[chixchix]

Yeah thanks for that buddy.Now i got a big stress trying to find a good location to start my biz.

[Sinvan]

Hi Chixchix!
About a location... Have you looked at East Coast area? If want to attract expats and locals this area is quite balanced mix of both and I have feeling it is undeserved. Holland vill. is full of similar places, too much competition. Also, for western expat clients health side of a spa service would be really attractive. Something like using an organic products or natural detoxification procedures using salt, like in korean spas. And your place could be different from others by different style of customer service; get an expat to work for your spa and some of your potential clients will feel like home. Good words can fly quick.
Marketing is even more crucial than location for my mind. From my point of view as a potential client, I would look for quality and variety of service with flexibility of payment, Good customer service and lastly for location.
Good luck with you business.

[chixchix]

Yeah thats true. But employing an expat would mean higher salary payout. Maybe you can tell me wch places in the East ,and I will check. Staying in the West, I am cut out from the Eastern people hehee.. thanks buddy

[Sinvan]

About East Coast, I noticed that the most mixed crowd is around Parkway Parade. There are lots of condos, shopping center, big park and other staff in this area. Keep in mind, even there, there is a competition.
Who will be you target market? What service are you going to provide? What will make you different from others? If all that staff will be the same as everywhere else, how do you make people to go to your place?Also, I believe in this business customer service is important, how you are going to make difference there?
Sorry to push about customer service, it is well known problem here and I guess I was spoiled too much by the good one back home.
Regards

[chixchix]

Hi Sinvan thanks for your ideas.. i will try to look into Parkway Parade then ..