With as low as $15,000, you can start a small-scale mobile sauna business. If you want to start a standard sauna business, you should budget from $75,000 and above.
Apart from the rough estimate above, it is important to note that certain factors can determine the amount it will cost to start your own sauna business.
A sauna business is a business that offers heat therapy through dry or wet heat sessions, promoting relaxation, detoxification, and various health benefits.
A sauna business is a service-based business that can be operated from a single location or a client’s location (mobile sauna business).
Factors That Influence the Cost of Opening a Sauna Business
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Licensing and Permits
If you are considering starting a sauna business, the first thing that is expected of you is to secure all the needed licenses and permits.
Without that, you will not be allowed to legally start your sauna business. Note that the costs associated with obtaining licenses and permits can vary from one city or state to another.
So, it is important to research the requirements for the location you intend to start your sauna business. For example, the licenses and permits needed to operate a sauna business in the United States include:
Business licensing, health department licenses, hazardous materials permits (for handling chemicals), music licenses (if playing copyrighted music), retail sales permits, professional corporation licenses, etc.
Note that in the United States, you should have an estimate of $500 to $3,500 for all the needed licenses and permits to start a sauna business.
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The Cost of Purchasing Sauna Equipment and Supplies
Sauna equipment and supplies are a key aspect of your business. In essence, if you are planning to start a sauna business, then you should budget for equipment and supplies such as:
Sauna heater, sauna stones, sauna bench, thermometer and hygrometer, lighting fixtures, ventilation system, door and frame, flooring material, bucket and ladle, towel rack, sauna fragrances, cleaning supplies, disposable towels,
Sauna accessories (e.g., headrests, footrests), sanitizing wipes, station organizers, salon chairs for waiting area, reception desk and computer system, and personal protective equipment (PPE) (gloves, masks, and disposable aprons).
From experience, you should have a budget estimate of $7,000 to $15,000 for purchasing the needed sauna equipment and supplies to get the business up and running.
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Location Where You Want to Start the Business
Different cities have different rental and leasing rates, and also different cities require different budgets to run a business even if the business is the same.
For instance, if you have plans to start your sauna business in New York City, then you must be ready to spend far more than is required to start the same business in Branson, Missouri.
This is because New York City is one of the most expensive cities in the United States, and Branson, Missouri is among the least expensive cities to start a business.
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The Cost of Marketing and Advertising
Establishing a strong online presence, creating a website, developing marketing materials, and advertising your sauna business and services offering will attract reasonable expenses.
In essence, you should have a budget that will take care of your business website design, online marketing campaigns, printed materials, and business cards.
Depending on how big you want to announce your presence in the market, you should have a budget estimate of $1,000 to $3,000 or more.
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The Cost of Purchasing Insurance Policy Covers
To protect your business and clients, you will need insurance coverage, such as general liability insurance, health insurance, and professional liability insurance.
Note that the costs of purchasing insurance policy coverage for your sauna business will depend on your location and the coverage options you choose.
But generally, you should have a budget estimate of $1,000 to $3,000 per year for your insurance policy coverage for your sauna business.
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Staffing Cost
The only reason why you may not have a budget for staffing costs is if you choose to operate the business as a one-man show.
But, if you plan to hire massage therapists, sauna attendants, and other support staff members, then you should consider their salaries, benefits, and training costs and this can be a large chunk of your budget.
Note that your staffing expenses will vary because it will depend on the number of staff members you want to hire, and of course, their qualifications.
But generally, you should have a reasonable budget estimate that can cover this cost because it varies based on staff size and salaries.
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Operational Costs or Ongoing Expenses
There is no fixed amount you are expected to spend when it comes to operational cost especially if you are going to be operating a standard sauna business with a handful of employees.
Note that your operation costs include ongoing expenses such as office supplies, utilities, transportation costs, and maintenance expenses for your equipment and tools.
We cannot give an estimate of what you should budget for your operational costs because it will vary based on your business size and the volume of clients you handle.