So you want to start your own spa? Even in this pandemic?
Well, people still like to look good, and spas provide a valuable service. This article will help you think about the things you need to do to get ready to have your own business.
Small businesses like spas have plenty of challenges to stay afloat these days, especially with all the social distancing rules.
Many new business owners think that all they need is a product, or idea, and some passion, and the money will start rolling in. But if you have ever run a small business, even just a home-based business, you are quite aware that it takes a lot more than that.
In order to ensure that your business is going to be a success, the first thing that you must do is research. What do I mean when I say research? I mean that you must know the landscape that you will be competing in very intimately.
For example, let's say that you wanted to go out and hunt wild elephants. Please note that I am not a hunter nor do I endorse it. However, if you just walk out into the African Savanna with whatever weapon you think is the best choice, but have no idea about the terrain and other risks that you will face, it is very likely that you will not return from this hunting trip.
You must approach starting a new business in exactly the same way. There is an incredible amount of danger to your money or the person's whose money you will be borrowing to start this business. If you do not know the lay of the land nor understand the risks that the money will be facing in its quest to multiply, it is very likely that the money will not be returning from this adventure.
So one of the first things you must know is who wants the service you will be selling. If you are operating a spa then you need to have a good understanding of who will be buying from you.
Often, we gain this knowledge by working for other shops. But if you do not have this information you need to get it.
The next thing you need to understand is exactly how much it will cost to have the business of your vision. You need to understand the cost of rent, supplies, furniture, energy costs in the summer and winter, as well as other utilities. You also need to understand the payment structure that you will have for any people who will be working in your business with you.
By researching and understanding the cost structure of the business you will be able to understand exactly how many customers you will need to have in order to cover those costs on a monthly basis. If you do not know this information or only know a part of it or are guessing when you try to go into business, this is like taking a box of fishing lures with you on your trip to the African Savanna to hunt the elephant. Once again it is very likely that the trip will be a disaster.
Once you understand exactly how much the business will cost and what it will take to get the business to the point that it can pay for itself, then you will have the information you need to know exactly how much financing you need to be able to start the business.
Whether you are financing the business on a stack of credit cards, through a bank, or through your own hard-earned savings account, knowing exactly how much you need to get the business up and running successfully will also be a large part of your success.
Without fail, almost all new businesses cost more to get to the point of profitability than the owner realized. However, if you are working with an organization such as a bank to help you finance your dream, they will be able to help you assess whether your spreadsheet of costs will be enough to meet the goal.
So, let's say you really understand your customer, know where they live, how to reach them, and what will lure them into your business.
And let's also say that you have a well laid-out plan that tells you exactly how much it will cost you to build your business to the point that these customers help your business pay for itself.
And finally let's say that you have money or someone willing to drain their pockets to help fill your business with enough cash to get started. Now, what is left to do?
The very best thing that you can do to ensure that the money that you are spending on this adventure is not put into mortal danger is to hurry up and find as many prospective customers as you can. Then contact them early and often with offers that you think will get them to come visit your shop.
This involves creating a list from some source that will allow you to inexpensively put your message in front of the people you identify as prospects.
You can either do this in an online fashion by advertising with Google or Facebook or some other online entity, or you can do this by creating flyers and walking through the neighborhood posting them on doors, windows, or cars.
Either way, what you need to do to ensure the survival of this fledgling business is to figure out a way to generate leads. A lead is a person who is a potential customer who has raised their hand in some fashion and said I am interested in what you are offering.
If you focus more than 70% of your workday on ways to generate more leads to your business in your first 6 months of existence, you will be doing nearly the maximum amount possible to ensure your business’ survival.
The only thing that matters in the first three years of a business' existence is its ability to profitably generate a new customer.
Also, while your business is generating new customers you must also make those new customers that you have created come back to your business as often as possible.
In this way you will ensure that Mom, Local Banker, Mr. Venture Capitalist, or your savings account, will see the happy and safe return of the money that risked themselves on this quest to hunt the great elephant of success.
Spending 70-90% of your time on marketing and creating ways for new customers to come back is well worth it. There is no point in buying new furniture, hardware, software, or slick supplies if you do not have a growing number of clients to practice them on.
The activities you spend your time on in your first year of business will make or break your success.
Put your training and certifications on hold for a while and get out there figuring out how to meet people and make as many contacts as possible. Put them in an email or SMS list and try your darnedest to get them in the door, then blow their minds with your service.
This is how you can guarantee your business success.