In my last blog titled “In Challenging Economic Times: How Long Will a Recession Last?” I wrote that on the South Lawn of the White House on December 5, 2008, U.S. President George W. Bush Friday acknowledged for the first time that the U.S. economy was in recession.
Now I want to provide some action steps and pointers that we in the spa industry can take to combat this current economic crisis.
Action Steps and Pointers
1. Provide Leadership – the buck stops with you. You need to make every attempt to remain positive, enthusiastic and support staff. Don’t expect your team members to deal honestly with their failures if you don’t accept responsibility yourself.
2. Make the Tough Calls – Make the tough call on cutting unproductive personnel and unprofitable services. Evaluate and identify the A rated players and A profitable services in your organization. Rid yourself of B and C rated staff and unprofitable services. This is the time and the moment to make sure you’re mean and lean.
3. Increase Marketing Activity – everyone in the organization is a salesperson. Stress to staff on a consistent basis the need for marketing outreach. We cannot at times determine results but we can determine activity and everyone in the organization needs to be about marketing the spa experience of your facility. Find the means if at all possible to find and allocate capital for media buy(s) and an effective email blast during the Christmas season.
4. Cut debt and reliance on bank funding – if at all possible eliminate or reduce debt obligations. Call your banker to negotiate a better APR on your bank loan and line of credit.
5. Increase your community involvement – become engaged or increase your involvement in serving on community not for profit boards. Law of Karma at work here.
6. Take care of self – exercise, eat nutritional foods and make it a priority to spend quality time with family and friends.
7. Enhance team communication – increase your engagement in the business and institute if not in place weekly staff meetings, one on ones with senior staff and key personnel and hold quarterly all company staff meetings in order to ensure there is effective dialogue and communication on company, department and individual performance measurements and results.
8. Intellectual and business growth development – increase and expand your business knowledge base by reading business magazines, daily newspapers, attending chamber events, joining or forming a CEO Roundtable, attending industry workshops and expo’s. To quote an old saying “You get out of it what you put in it.”
Michael Carter President and Chief Executive Officer of Athena of Nashville Inc
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