How to Save Your Failing Spa Business in 2021
Entrepreneurship is often challenging, and running a business comes with many added risks. For instance, your business failure could be due to a lack of proper planning or poor cash flow management. Or, it could even be that you hired the wrong employees. Whatever the case, a struggling business is always heartbreaking.
Around 90% of business startups fail, but you don't have to be one of them.¹ Due to the recent pandemic, most spas are struggling. Some of them even had to close shop. The good news is that you can still save your spa.
5 Tips to Revamp Your Failing Spa Business
If your spa business is on the verge of failure, don't just give up on it. Look into implementing these five effective spa business growth tips and save your business.
Start Offering Virtual Consults
A failing spa business is a clear indication that you're doing something wrong. Sometimes with a change in strategy, you could turn the tables around. If the main reason your business is struggling is due to a lack of walk-in clients, you could start venturing into the digital space by offering virtual consultations.
People are hungry for information, and you need to give it to them. Start by offering virtual services. This will also increase your market reach and widen your audience base.
Introduce Complementary Services
If you only offer tanning services, get a cryotherapy machine and introduce cryotherapy services as an added benefit. This will help you capture a wide audience who are interested in both services. The cryo machine cost is not high when considering its Return on Equity. Plus, you can easily get financing. This way, you can transform your spa into a cryotherapy and tanning spa.
You also have a physical location, so you may not even incur a lot of extra expenses, like having to rent an additional room. You'll simply be making the most out of the underutilized space in the office.
Reduce Expenses and Overhead Costs
More than 80% of businesses fail due to poor cash flow management.² Trim the unnecessary costs and divert the extra finances to the high-performing areas of your spa. For example, if you're paying too much rent, move into a cheaper location. The same applies to discretionary spending. Let go of the utilities you don't need.
Unless you are expanding and aiming to gain more market share, make sure that your expenses are lower than your receivables.
Conduct a SWOT Analysis
Go back to the basics and overhaul your entire strategy. The business environment is dynamic and changes often. This means that strategies that were previously effective may not work anymore. Be unbiased and take an honest look at your business.
This will help you identify the best way to take your spa back on solid ground.
Look for New Investors
If it's proving difficult to save your business alone, don't shy away from asking others for help. There are various types of investors who may see your business potential. If your pitch is convincing, they will give you the much-needed financial backing.
Enhance the Profitability of Your Failing Spa Business Today
Just because your spa is failing doest mean that you can’t save it from going out of business. You simply need to change the trajectory of your business by implementing the above business tips.
Founded on facts: for peer-reviewed articles, scholarly journals, and articles cited above please see the below sources.
Crowdinvesting: Businesses tempt customers to be investors - https://www.bbc.com/news/business-22759262
Here's why small businesses fail - https://www.businessinsider.com/why-small-businesses-fail-infographic-2017-8?r=US&IR=T
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