Say an entrepreneur is interested in buying your spa business. Do you know how much it is worth right now so you can set the right price?
Most small business owners do not have a definite idea of the current value of their businesses. No wonder, because that number isn’t part of day-to-day business operations. It is an exercise reserved for when you are divesting interest in your spa or salon, for example, handing it over to another or retiring.
Did you know that identifying how much your spa is worth is part of regular business processes? However, you would be better off if you do not undertake this valuation process on your own.
Chances are you will be selling only one business in your whole life. Because you are not a corporate buyer—whose job it is to routinely appraise businesses and negotiate the best price for them—you might be putting the wrong price tag on your spa.
Imagine this: You have decided that your business is worth $1 million. You believe it is a fair amount. It is also exactly the kind of money you would need to live your retirement in style. You would feel extremely cheated, however, if you discovered down the line that you could have sold your spa for $5 million instead! (I would imagine you would be crying in your cup for a long time to come!)
InSPAration Management has created an 8-part CoachMe Gold series, Financial Freedom, to avert this kind of disaster. Not only will spa entrepreneurs learn how to correctly determine how much their businesses are worth, the training will also help you sell it for top dollar. In the first module alone, you will define your “Enough is Enough Number” and learn more about the “4% Thumb-Rule.” These are important numbers that you must be familiar with.
Even if you are still having the time of your life growing your spa right now, you will want to know more about the Financial Freedom coaching series. It’s not only about crafting a business exit strategy, but more importantly, it’s all about growing your business to three, five, even 10x its size today, creating systems and structures to put spa success on auto-pilot, and securing your financial future the best way. Click here to learn more about Financial Freedom now ?
Most small business owners do not have a definite idea of the current value of their businesses. No wonder, because that number isn’t part of day-to-day business operations. It is an exercise reserved for when you are divesting interest in your spa or salon, for example, handing it over to another or retiring.
Did you know that identifying how much your spa is worth is part of regular business processes? However, you would be better off if you do not undertake this valuation process on your own.
Chances are you will be selling only one business in your whole life. Because you are not a corporate buyer—whose job it is to routinely appraise businesses and negotiate the best price for them—you might be putting the wrong price tag on your spa.
Imagine this: You have decided that your business is worth $1 million. You believe it is a fair amount. It is also exactly the kind of money you would need to live your retirement in style. You would feel extremely cheated, however, if you discovered down the line that you could have sold your spa for $5 million instead! (I would imagine you would be crying in your cup for a long time to come!)
InSPAration Management has created an 8-part CoachMe Gold series, Financial Freedom, to avert this kind of disaster. Not only will spa entrepreneurs learn how to correctly determine how much their businesses are worth, the training will also help you sell it for top dollar. In the first module alone, you will define your “Enough is Enough Number” and learn more about the “4% Thumb-Rule.” These are important numbers that you must be familiar with.
Even if you are still having the time of your life growing your spa right now, you will want to know more about the Financial Freedom coaching series. It’s not only about crafting a business exit strategy, but more importantly, it’s all about growing your business to three, five, even 10x its size today, creating systems and structures to put spa success on auto-pilot, and securing your financial future the best way. Click here to learn more about Financial Freedom now ?
When business owners first go into business they are excited, eager, motivated and can’t wait to get started. Then reality sits in and the bills start piling up, followed by pressure, tension anxiety. If you are like most owners you are always looking for ways to cut expenses and generate more revenue so it’s worth it to be in business.
The main reason entrepreneurs go into business for themselves is to be their own boss, have more freedom, and make more money. But here is the sad fact: in most cases business owners don’t pay themselves, they end up working harder and make less money. According to US census statistic an average business makes about 7% net profit. Yes there are some businesses that make more, some less, and some make none. Where do you stand? Are your overhead expenses diminishing your bottom line? If so, read the first of this 4 part series to learn strategies on gaining financial health.
1. Have a Budget
Most spa and salon owners who call our office seeking business help don’t have a budget. Without a spa budget, you are allowing your business to manage you instead of you managing it. Whether you have a large, medium, small spa or are even a solo-preneur, you must have a budget. Your budget should include a monthly breakdown of all your finances, such as:
1. Have a Budget
Most spa and salon owners who call our office seeking business help don’t have a budget. Without a spa budget, you are allowing your business to manage you instead of you managing it. Whether you have a large, medium, small spa or are even a solo-preneur, you must have a budget. Your budget should include a monthly breakdown of all your finances, such as:
- Number of spa clients you expect to see monthly
- Forecasted service revenue
- Forecasted retail revenue
- Spa product cost
- Compensation cost
- Spa Operating cost
- Spa Marketing expenses
- Budgeted profit
Are you a busy spa and salon professional who is in need of business solutions? You have heard the saying, “Time is Money.” It’s true. The more time you waste trying to create things on your own, the more money you are losing.
Whether you are looking for a spa and salon compensation model, a spa marketing plan, spa/salon operational manuals or any other systems or structure, it’s more feasible to buy proven-effective business solutions than to try to reinvent the wheel.
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