A remarkable amount of courage and dedication is required if you’re going to own a spa! Courage because… well, it’s risky. Make too little money and you won’t be able to pay your staff. Make no money and you won’t even be able to pay rent. And dedication because… if things aren’t going the way you want them to, you can’t exactly call it quits!
How it all began… The Ugly Truth
When I first decided to open up my spa, I knew it wasn’t going to be easy. But I truly had no idea what I was up against until I experienced it. But by the time I really knew what I was getting into, it was too late to get out of it!
I can honestly say that every obstacle in the book has been thrown my way – sometimes all I can do is look up to the sky and say “really?”. I made some major “investments” for the sake of “saving” my business, and all it did was add to my burden and mountain of debt. Then there was that one time we were kicked out of our location and only given 4 days to move (yeah totally illegal don’t get me started – but don’t worry it was actually for the better).
I’ve had staff literally steel from me… run their own side hustle on our dime… disappear from work… then deleting clients from our schedule without our knowing out of spite I guess (that was not a fun day), only to attempt to put the labour board on us as if we were in the wrong.
Oh, and I can’t forget about the time one of my other staff members decided to start her own business and brought my clients with her… to be exact, she left with about 40% of my revenue – yup that was fun. Shall I go on? No let’s keep it light… cause I think you get the picture.
Lacking Cash Flow? The Struggle Is Real…
These are just some of the challenges that I faced. The main takeaway here is, when things got tough, they were TOUGH!
Let me tell you about my lowest point as a spa owner. I felt trapped. And I really didn’t know if I’d be able to cover both payroll and rent for the next month. Frankly, the spa just wasn’t doing well. There was barely any business and I had way too many permanent staff members on my team.
The burden of it all was crushing my soul. It felt as though I was chained to this sinking business and there were all these problems that I didn’t have the solution to.
So I did seek out help… I spent even more money on coaches, training’s, conferences…now don’t get me wrong it was helpful BUT they did not give me exactly what I needed at that time to actually fix my business in the way every part of my being at the time was banking on.
I came out of that even more broke and quite frankly heart broken as well because it was just supposed to work you know? It was JUST supposed to WORK. Are you feeling me on this?
But it didn’t…
I was honestly battling the mixed feelings of wanting to run away and or get mildly hit by a car just so I can be “forced” to spend a few days in the hospital away from it all. Wait! I know what you are thinking – that line is from Bad Moms but I swear I said those EXACT words before it came out – talk about nailing your target market… p.s. Love that movie.
So anyway, after doing my fair share of crying (lot’s of crying) I knew that if I was going to forge ahead… that I needed to take it upon myself to create a strategy that could / would / should (and spoiler alert – it did) make a change for the better in my business.
How I came up with a short-term solution for my spa owner’s to earn money
I put countless hours into developing a strategy that could help my spa earn money FAST! I was incredibly lucky because my plan worked out and I was able to get through it.
They say failure is the greatest teacher… the verdict is still out on that one but I kinda think it’s true.
Whatever your situation may be, understand that it’s inevitable that you’ll run into some roadblocks here and there as a spa owner. Each obstacle I overcame taught me something important about how to effectively manage a business.
The strategy that YOU can implement to increase cashflow
If you’re in a similar position as I was, take a look at my short-term solution. I’ve created a list of strategies for you as a short-term solution to earn money fast! If you’re not sure how to go about it, here are the key things you should focus on.
1. Create an irresistible promotion
Your goal here is to use an irresistible offer to attract as many clients as you can. Next, it’s going to be all about your ability to layer on the value once these clients are in right in front of you.
What is an irresistible offer? An irresistible offer is a promotion that will appeal to your target market. It’s something that you already know that they love. Chances are, that you’re going to attract more of your ideal clients by creating a promotion out of something you already know they want!
Here’s what NOT to do:
- DON’T offer a large % off your client’s first visit because it means nothing to them if they aren’t already familiar with your prices
- DON’T offer Buy 1, Get 1 free because your client will only see the fact that they are buying something at full price
These types of promotions can easily become a hard sell. Why? At first glance, t’s not entirely clear to the client why they NEED your offer ASAP.
Here’s the magic formula:
Step 1. Identify your ideal client: Age, gender, and occupation
- Figure out their pain points. What could they be struggling with RIGHT NOW?
- If anything was possible, what would be their dream solution?
- What are the top 3 services or products your ideal clients are already buying from you?
- What are your ideal clients saying when you get positive feedback from them?
Step 2. Create your offer
- Which of your top 3 services offer the highest profit margins?
- Which of your top 3 services is the easiest to execute?
- What are the top 2 services that you will feature in this promotion?
Step 3. Add more face value to your promotion
- What is something (that doesn’t cost you much) that you could you add on to your promotion to create a higher face value? For example, an eye treatment, hand treatment, foot massage, etc.
Step 4. Determine your promotion price
2. Email that promotion to potential clients
Now that you’ve decided on an offer, get the word out!
While marketing is very important to a growing business, don’t forget about email marketing.
With the right strategy, email marketing could be a very powerful tool in growing a brand. A number of platforms are available to assist business owners in developing strong email campaigns. For instance, Mailerlite, Convert Kit, AWeber etc.
When it comes to email marketing, 59% of B2B marketers credit it as their most effective channel in building revenue.
3. Call your customers
I know what you’re thinking.
Who calls anyone anymore? Exactly.
That’s why it means that much more that YOU put in the effort to call your clients and to make that connection with them. But don’t be pushy.
Ask your potential client some open-ended questions. Try to figure out what it is exactly that they need and how your services or products may benefit them!
This is also a good time to mention any promotions or deals that are going on at the spa. Because even if they’re not interested… chances are that they have a friend or family member that they could pass the message to.
And if they’re still not interested, it’s alright!
Don’t get too discouraged if you end up getting blown off over and over again. It happens.
Be kind and respectful, and thank them for their time!
4. Maximize your earnings by up-selling to existing clients
As a business owner, you not only want to drive traffic BUT you also want to make the most out of every single client that’s walking in through your door.
Think of some creative promotions that you can offer to your existing clients while they’re there. Chances are that most of your clients wouldn’t mind adding on an additional service while they’re already at the spa… if you can make it sound good enough.
If not a service, then recommend some products to your client based on their needs (from what they told you or from what you can observe). You may do this while you’re working on them or you can wait until the end of the session. Just make sure that you wait for an opportunity where it just naturally flows into the conversation.
5. Groupon and Facebook ads
Get your name out there.
Think about using Groupon or Facebook to advertise your business. Either platform will extend the reach of your marketing efforts to leave an impression on more people. And the more people that see your ad, the higher your chances are in converting them into clients!
For those that get chills down their spine and spit up in your mouth a little bit just by hearing the word Groupon (that was me once), before you strip me of all credibility I did figure out a way for Groupon to truly work for my business. If you are interested in hearing me out on that one you can check out my other blog on how to make Groupon work for your spa business.
6. Create a team incentive
Each staff member plays an important role in the collective success of your spa! And it makes HUGE difference if your employees’ goals are the same as yours.
So try to come up with some sort of incentive to motivate your staff to always go the extra mile with every single client.
Because if every single person on your team is on their A-game, it will have a huge impact on your numbers!
Now let’s put this plan into action!
Being a spa owner is challenging. But it can be an amazing experience. Each obstacle teaches me something new about how to effectively manage my business and grow as an entrepreneur.
At my lowest point as a spa owner, developing this short-term solution really helped me get out of a tough situation.
I still use these strategies all the time. Why? Because they work and we like to make money and not be consumed by stress.
Using these strategies alone, my business generated over $10,000 in additional revenue with only 1 full-time and 2 part-time aestheticians in the past three months!
So trust me, it definitely works.
If you want help with implementing what you’ve learned in this article. If you want a serious boost in your business. Starting on November 12, 2018 we are hosting a LIVE 10 Day Rock Your Cash Flow Challenge that will give you the surge in cash flow that you and your business needs.
To learn more about how to earn money FAST, register for our 10 DAY challenge!
We can’t wait to see you inside of the challenge!