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According to the Department of Commerce, over 1 million businesses open up every year but only 40,000 of them stay open past the first 5 years. That’s a very small survival rate. Where does your business stand? This year is almost over. Did your business grow at the rate you wished it you would?
As a business development firm, we come across many medi spa and day spa businesses that are in survival mode. InSPAration Management’s mission is to help businesses like yours have great financial health. We have learned what separates successful businesses from failing ones. To be successful, a solid business model is required and a good business structure should include strategic planning, marketing and financial plans, operational systems and support.
If you’re like most entrepreneurs, you are so busy juggling many hats that assessing your business takes a backseat. I made it simple for you. Apply the following 7 assessment steps, and notice what you are doing great and what needs improvement.
1.Medical Spa And Spa Business Assessment
The first step is to conduct a S.W.O.T. analysis.
It’s an objective assessment of your current situation. Take the time to identify where you are now.
Strengths: What are you doing well? And do more of the same!
Weaknesses: What needs improvement? Make a list of all the challenges keeping you from achieving greater success.
Opportunities: What new opportunities can lead into new revenue streams?
Threats: What is holding you back?
This S.W.O.T. exercise will help you focus on your strengths and explore new opportunities.
Implement a plan to improve your challenges and build on your strengths.
2.Do You Have A Marketing Plan?
Marketing is one of the most important business functions to any business. Without a medi spa and spa marketing plan, your space capacity is minimized and leads to low revenue generation. Your marketing goal should focus on generating new leads/prospects. Marketing should compel your new leads to visit your spa, to purchase and repurchase your products and services.
Assess your capacity, number of new clients, new client cost and retention rate. We invite you to take a marketing assessment and see how effective your marketing is.
Many spa leaders are under the impression that marketing is expensive; therefore, they don’t market. Running your business without a marketing plan is like trying to drive a car without fuel. There are many effective, economical marketing strategies you can implement that will increase your spa and medi spa traffic. Examples include e-marketing campaigns, promotions, in-spa marketing, special events and business-to-business.
Need a marketing plan?  Check out the Marketing for Success Plan we have.
 Or check out the www.DoneForMeSpaMarketing.com programs we offer.
3.What Is Your Revenue Per Guest?
Focus on increasing your volume/revenue per guest.
The easiest way to increase your spa and medical spa sales is by focusing on the volume per guest. Calculate your current volume per guest for both spa treatments and retail sales, setting new goals for both. Teach your spa team how to maximize the number of treatments or upgrade opportunities. This will increase volume per guest. You can increase your volume by setting up consultations and customizing programs for your clients. Check out the Success with Guest Consultation audio.
4.Assess Your Team’s Compensation. Is it Performance-Based?
Make sure your team is set up with a performance-based compensation model. They should be able to earn their true worth. If they are great, they will earn more. If not, they will earn less. Remember to evaluate your team’s performance. Identify areas for improvement and implement training sessions to improve performance. The biggest mistake we see that medical or spa directors do is not setting targets and goals with their team. Targets should include: number of new guests, repeat guests, retention rate, retail sales, service volume, etc. Targets must be set in the beginning of each month and evaluated at the end of each month. As a spa or medi spa leader, continual monthly measurement of your spa’s performance ensures growth and success.
5.Do You Have A Process To Generate New Leads And Turning Them Into Clients?
When you are in business, you need to continually generate new leads for your Sales Funnel to ensure your pipeline is always full.
Do you track how many new leads you generate per month? Do you have a target or a goal as to how many leads you can turn into clients? How many new clients do you retain?
 Need help building your list? Check out the Build Your List CD and grow your business.
6.Do You Introduce New Revenue Streams?
Assess your menu and discover which treatments are selling and which are not. Introduce some new treatments and revenue streams to revive your medi spa and spa menu and excite your database. There are many ways to introduce new treatments by partnering with other professionals. You can have someone come certain days of the week to do medical treatments, acupuncture or nutrition. The list is endless. This strategy creates new program offerings and taps into new revenue streams.
7.Do You Have A Coach Or Are You Reinventing The Wheel?
Many business owners think they can do it all themselves. Maybe, but how good are the results? I don’t know about you, I like to work smart. I invest just under $50K per year on my education. I don’t like to reinvent the wheel. I like learning new and innovative strategies so I can stay ahead of my competition and keep sharing with you success strategies to help you grow your business! If you are tired of working on your own and need help, I invite you to check the CoachMe memberships we offer so you can elevate your success!
Take the time to assess your business and let us know how we can help!
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