“Our industry is changing rapidly and becoming a serious player in the economy- with approximately 15 billions in sales it is larger than the ski industry. Consolidations and mergers will reshape how business is run. In this economic downturn, staying profitable is challenging. Were do you turn to come up with fresh perspective?”
Why not start here at the DSA;
Spa and wellness executives are challenged by every day activities giving little time to reflect, network and discuss common challenges others in similar businesses encounter as well. Spa owners in a same town rarely get together because of the competitive nature of the relationship. The taxing schedule of the entrepreneur combined with the secrecy kept in small spa businesses makes it hard to see the forest from the trees.
How will an entrepreneur grow business – in this economic climate you may be content maintaining revenues and controlling expenses; get access to the type of tools large companies have? (wide experience, access to comparables, systems, employees with outstanding skills and attitude, and consultants educated in the best schools).
In this blog we will cover the questions raised above. I invite you to join me in looking at your business as your own business consultant- from the outside:
As a first step I recommend you analyze your revenues and expenses and evaluate where 80% of your revenues come from?
Second where do 80% of your profits come from?
You may find out the ad-on services and the more expensive services, especially those that take little staff time are the most profitable.
What % of your employees’ time generates revenues?
What is your revenue per square foot in the treatment rooms, in the retail area?
What if any revenue is generated by your website? (shopping cart)
Ideas about cutting costs: on-line appointments, staff training through webinars and hands- on via Skype to name a few?
Bad ways to cut cost: cutting corners will back fire! If you cut on the quality and quantity of product used, steps of a service, you run the risk of loosing customers; they are savvy and will pay for quality and value. They will not be taken for a ride.
More on that and other subjects next week.
Please give us your feedback, share your experience on the subjects we touched–on today and:
Gift certificate marketing
Create differential advantage
Simplify your marketing message and your menu
Leadership: built loyalty from clients and staff
Catherine Atzen, MBA
Cidesco Diplomat, NCEA
Ph: 408 353 2605 PST
Fax: 408 353 8517
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