Startup cost
$50k–$150k
TRUiC Business Ideas
How to Start a Sauna Installation Business
Decision Snapshot
Sauna Installation
Idea Score
53
Profit margin
14%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
High
Time commitment
Full time
Part 1 - How to start a Sauna Installation business - Background
A sauna installation company sells saunas to homeowners, hotel resorts, and fitness gyms and they provide services for every aspect of delivery and installation of the unit. Saunas are used by individuals who wish to enjoy a Finnish Sauna Bath experience, where they enjoy a heated room filled with steam generated by pouring water over rocks. Saunas include the heated sauna, a prep area, and are often connected to a shower room or pool. Installation services require electrical work, basic construction, sound system, lighting, and possibly plumbing. Referrals from customers will help your business grow, so it is essential to provide a positive customer service experience.
Our guide is in 3 parts:
- Part 1 - How to start a Sauna Installation business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a sauna installation business?
Expect to invest up to $250,000 to get your company up and running. Initial franchise fees often run from about $25,000 up to $50,000 depending on the area. You will need about $200,000 to be able to order the sauna kits, lighting, and accessories. In addition, you will need to invest in marketing and transportation before your income starts to roll in. If you wish to operate a storefront or a display in a big-box store, you may need an additional $10,000 to $100,000.
What are the ongoing expenses for a sauna installation business?
Marketing and sales will always be a major cost for the business. However, you must have financing in place to be able to purchase the sauna kits for delivery on the client’s schedule. Expect to carry $100,000 to $200,000 in inventory at any given time.
Who is the target market?
Your preferred clients will mostly consist of wealthy homeowners and corporations. These homeowners will generally live in wealthy suburbs or urban areas, and they will have extra money to invest on upgrades to their homes. Corporate clients that operate multiple spas or exercise gyms such as office towers, hotels, and resorts will also look for you to install saunas into their spa and pool areas. Corporate clients with multiple locations can provide a more constant stream of business for your company.
How does a sauna installation business make money?
Your business will make money by charging your clients for the sauna and for the installation service that your provide. Profit is made on the hourly rate charged for labor for the installation job. Minimal income is generated on sale of the sauna unit and a variety of accessories. New installations or upgrading existing units are the major source of income, as minimal maintenance is required for a sauna.
How much can you charge customers?
A typical sauna can be installed for as little as $3,000 while costs for larger units will can approach $25,000, depending on plumbing and electrical requirements.
How much profit can a sauna installation business make?
You will typically see a 10% profit on the cost of the sauna unit. Your real profit comes from installation fees. Experienced crews will complete the jobs faster, leaving more profit for the business. A successful sauna company can see net profits of $100,000 to $200,000 per year.
How can you make your business more profitable?
Time and consistent success will build your reputation as a reliable sauna installer. When your crew is kept busy installing units, and your marketing department continually shares your success stories, more interested customers will arrive and buy the next sauna, generating more profits.
Day-to-Day and Growth
What happens during a typical day at a sauna installation business?
Though your level of involvement will differ based on the size of your team, the duties of a typical sauna installation business owner generally include:
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Providing sales information, installation costs, and time estimates to customers interested in your product
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Scheduling installation jobs and coordinating delivery of units and crews
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Working on installations yourself using construction, electrical and plumbing knowledge
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Working with customers on their sauna design, location and required size
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Receiving payments from customers and issue checks to suppliers
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Handling payroll responsibilities
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Hiring and training additional installation technicians
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Running a vendor booth at a trade show answering questions and generating sales leads
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Creating sales opportunities through networking within your community
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Maintaining proper licensing and liability insurance for a business that works in private homes and commercial locations.
What are some skills and experiences that will help you build a successful sauna installation business?
You are primarily selling the sauna experience and the units. However, other useful skills to operate your company will include:
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Basic accounting and business knowledge
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Excellent marketing, networking, and people skills
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Knowledge of the hiring process and payroll regulations
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Understanding building codes
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Knowledge of electrical design and function
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Basic knowledge of plumbing
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Simple construction experience
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Time management skills
What is the growth potential for a sauna installation business?
Your location will dictate the number of saunas you are able to sell and install. If you are located near a resort area, like near Florida beaches or near tourist attractions in Nevada, you will be able to grow your business much faster than if you work in a rural area. Before starting your business, it is imperative that you make sure there is enough of a market in your business’ area for you to make a profit.
What are some insider tips for jump starting a sauna installation business?
Becoming familiar with a limited number of top quality saunas and only offering those select designs will ensure that you and your crew are maximally educated about the proper installation procedures for each type of sauna you offer. It can help to install a few units at a steep discount to get your crew up to speed on the quirks of each type. The fewer challenges your crew faces during installation, the easier it will be to build your reputation as fast and reliable. You must be able to backup the installed product with stellar knowledge and service.
How and when to build a team
This will be one business where you will want to have a partner from the very beginning. This will be helpful, as one of you will be able to focus on managing the business and the other will be able to focus on managing the installation crew. The two of you will be able to locate the sauna kits you with to utilize, learn about your target audience, and develop a marketing plan and schedule before you find your first client. Hire your installation crew when you are ready to install a demo unit.
Part 2 - Is a Sauna Installation business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Sauna Installation business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Sauna Installation Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Sauna Installation business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.