Spa Business Strategies Workbook
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1 Spa Business Strategies Workbook Second Edition Janet M. D Angelo Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United States
2 Spa Business Strategies Workbook, 2e Janet M. D Angelo President: Milady Dawn Gerrain Publisher: Erin O Connor Acquisitions Editor: Martine Edwards Senior Product Manager: Philip Mandl Editorial Assistant: Elizabeth Edwards Director of Beauty Industry Relations: Sandra Bruce Senior Marketing Manager: Gerard McAvey Production Director: Wendy Troeger Senior Content Project Manager: Nina Tucciarelli Senior Art Director: Joy Kocsis 2010 Milady, a part of Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher. For product information and technology assistance, contact us at Professional & Career Group Customer Support, For permission to use material from this text or product, submit all requests online at cengage.com/permissions. Further permissions questions can be ed to permissionrequest@cengage.com. Library of Congress Control Number: ISBN-13: ISBN-10: Milady 5 Maxwell Drive Clifton Park, NY USA Cengage Learning products are represented in Canada by Nelson Education, Ltd. For your lifelong learning solutions, visit milady.cengage.com Visit our corporate website at cengage.com. NOTICE TO THE READER Publisher does not warrant or guarantee any of the products described herein or perform any independent analysis in connection with any of the product information contained herein. Publisher does not assume, and expressly disclaims, any obligation to obtain and include information other than that provided to it by the manufacturer. The reader is expressly warned to consider and adopt all safety precautions that might be indicated by the activities described herein and to avoid all potential hazards. By following the instructions contained herein, the reader willingly assumes all risks in connection with such instructions. The publisher makes no representations or warranties of any kind, including but not limited to, the warranties of fitness for particular purpose or merchantability, nor are any such representations implied with respect to the material set forth herein, and the publisher takes no responsibility with respect to such material. The publisher shall not be liable for any special, consequential, or exemplary damages resulting, in whole or part, from the readers use of, or reliance upon, this material. Printed in United States XXX
3 CONTENTS PREFACE IV CHAPTER 1: WHAT IS YOUR VISION? CHAPTER 2: THE SPA BUSINESS CHAPTER 3: GETTING DOWN TO BUSINESS CHAPTER 4: PURCHASING A DAY SPA CHAPTER 5: ARCHITECTURE AND DESIGN OF YOUR SPA CHAPTER 6: PURCHASING PROFESSIONAL PRODUCTS AND EQUIPMENT CHAPTER 7: COMMUNICATION SYSTEMS CHAPTER 8: DEVELOPING A MARKETING PLAN CHAPTER 9: PRESENTATION IS EVERYTHING CHAPTER 10: SALES AND SERVICE CHAPTER 11: POLICIES AND PROCEDURES III
4 PREFACE This workbook is a companion to Spa Business Strategies: A Plan for Success, written by Janet M. D Angelo. It is designed to help you review the topics that appear in the text in a thoughtful and logical manner. In using practical examples, introspective questions, and targeted worksheets to simplify what is often dry and complex subject matter, it is hoped that you will gain a more meaningful understanding of the business matters that are vital to the success of day-to-day day spa business operations. Many will find this format is easily adapted to navigating their own entrepreneurial journey and may use this as a journal to identify their individual goals and objectives. While this workbook covers many of the general business and financial management topics relevant to starting, owning and managing a spa business, and may be useful in helping the prospective day spa owner focus on their own intentions, it is not meant to be a substitute for professional accounting, legal or other professional services. Individual business circumstances vary and should be addressed by qualified professionals familiar with your specific business needs. For personalized advice seek expert counsel in all business matters. NOTICE TO THE READER The author has taken care in the preparation of this workbook but makes no express or implied warranty of any kind to the reader and assumes no responsibility to the reader for errors or omissions. The author shall have no liability to the reader for incidental or consequential damages in connection with or arising out of the use of the information contained herein. IV
5 CHAPTER 1 WHAT IS YOUR VISION? To begin the exercises in this chapter, you will need a pen or pencil and a quiet space to work. Choose an area that inspires your creativity and one that is free from distractions. Don t forgot to turn off your cell phone, close your , and set limits with anyone who might have access to your personal space. This is your personal development time! Before tackling the exercises, take a few minutes to clear your mind and focus your concentration. One of the best ways to do this is to sit quietly in a meditative posture. Choose a comfortable chair and sit with your feet planted firmly on the ground, knees a comfortable distance apart, and hands resting gently on your legs. Now focus on your normal breathing pattern until you begin to feel relaxed. If stressful or interfering thoughts enter your mind, let them go by acknowledging that they are only thoughts and focus on the affirmation for success suggested in Chapter 1 of the text. ENERGY FOLLOWS THOUGHT Creating the right atmosphere is an important part of staying focused. Some find it helpful to include certain rituals, for example playing soothing music, burning incense, lighting candles, or placing articles nearby that inspire beauty and creativity, for example plants, stones, shells, crystals, etc. A space that invites the positive flow of energy will help you to stay focused on your intention. PLANTING THE SEED The exercises in this chapter are multi-purpose and are designed to help you step into your new role as spa owner or manager with confidence. Look at them as opportunities to assess your personal qualifications, increase your awareness, take ownership of your destiny, and sharpen your vision. As you work through each task do not concern yourself with setting concrete goals, or let your mind race ahead to the actual planning, there will be ample opportunity to create and tend to a to-do list in the following chapters. 1
6 2 SPA BUSINESS STRATEGIES: A PLAN FOR SUCCESS For now, settle into the vision and allow the energy to flow in and through you. It is from this dynamic space that everything takes form. CHARACTER TRAITS The first exercise in this chapter is not meant to minimize your perception of yourself nor is it intended to inflate your ego. This is simply an exercise in self-awareness. Identifying the strengths and weaknesses in your character will help you to build upon your positive qualities and recognize those areas where you may need support, traits that will ultimately help you to be a better spa owner or manager. PERSONAL INVENTORY CHECKLIST My Top Five Strengths My Top Five Weaknesses After completing this exercise, take a few minutes to rate your personal attributes against the following: CHARACTER TRAITS OF THE SUCCESSFUL ENTREPRENEUR Rating Scale 1 Excellent; 2 Very Good; 3 Average; 4 Less than Adequate; 5 Need to Develop Disciplined Confident Self-motivated Passionately committed to achieving goals Possess tremendous energy Comfortable with change Recover from setbacks easily Enjoy working with people
7 CHAPTER 1 WHAT IS YOUR VISION? 3 CHARACTER TRAITS OF THE SUCCESSFUL ENTREPRENEUR ( continued) Have a strong work ethic Possess excellent organizational skills Possess excellent communication skills Have a clear vision of business goals Have a clear vision of personal goals Ability to stay focused on short- and long-term projects Ability to motivate others Ability to work cooperatively with others Ability to manage and direct others with integrity Balance work and personal life Manage stress well Practice effective time management Possess strong leadership skills ACCOMPLISHMENTS Whether this is your first entrepreneurial venture or you are a seasoned business professional, there is no doubt you have experienced a number of personal and professional triumphs. The following exercise is an opportunity to recognize and reflect upon the most significant achievements in your life. Take some time to contemplate which of these you found most rewarding and why. If your list of professional accomplishments is short, remember that life experience counts. Some of our greatest accomplishments are often related to the personal impact our lives have on others. INVENTORY OF ACCOMPLISHMENTS Personal Accomplishments Professional Accomplishments 1. Example: Volunteer for American Cancer Society 1. Example: Spa Director at Successful Day Spa for over 5 years
8 4 SPA BUSINESS STRATEGIES: A PLAN FOR SUCCESS LIFE LESSONS Overcoming obstacles is part of the everyday process of learning and growing. As you step into your new role as owner or manager you will be faced with new challenges. How you have handled challenges in the past is likely to color your day-to-day reactions. If you are not satisfied with some of the decisions you have made in the past, this is your opportunity to change the script. In the past I have been resistant to.... What I have learned from these challenges is.... Today I am confident that I can....
9 CHAPTER 1 WHAT IS YOUR VISION? 5 CREATING A PATHWAY TO SUCCESS While it is important to stay in the present moment and make the most of the opportunities in front of you, when it comes to business you must also set goals. Laying the groundwork for the next five years will help you to stay focused on your goals. If you are not quite sure of your future plans, go back to the text and explore the questions presented on page 5. Future Goals Over the next five years, I would like to accomplish the following. For example: 1. Open my own spa Broaden the range of services my spa 2. currently provides. 3. Obtain additional licenses and/or education Increase the use of technology for spa operations, 4. sales, and marketing. 5. Improve my business and management skills. 5. SETTING THE STAGE If you could imagine the perfect spa setting, what would it look like? The following exercise is critical to your plan for success and is designed to help you focus more intently on your business goals. Use the questions on pages 5 and 7 of the text to help you get started in describing the type of spa setting that you would like to own or work in. Putting your vision to words is the first step in realizing it. Describe your ideal spa in 100 words or less
10 6 SPA BUSINESS STRATEGIES: A PLAN FOR SUCCESS Motivation for Becoming Self-Employed There are many reasons for wanting to own your own business. As you contemplate the following checklist, be honest with yourself. If your motivation for owning your own business includes factors that are not listed here, be sure to add them. Clarifying your personal agenda is an important exercise that will help you to stay true to your vision. Keep this list in a safe place as a positive reminder of your goals and intention. Check all that apply; then rate each of your reasons from 1 to 5, with 1 being the most important and 5 being the least important. Desire to make more money Need to feel more fulfilled Want more control over my career Dislike taking direction from someone else Desire to create my own schedule Realization that clients come to the spa to see me Frustration over the way the spa I presently work in is being managed Crave the prestige that comes from owning my own business Other What have you discovered about yourself? Write one sentence that best describes your reason for opening your own spa business. BUSINESS SKILLS ANALYSIS As the owner, president, or CEO of your spa business, you will be responsible for overseeing, supervising, or performing a number of tasks. Some of those tasks will be practical or technical in nature, and others will be administrative. Before you enter the marketplace, it is imperative that you are keenly aware of all the duties and responsibilities of spa business management. It is also important for you to understand exactly where your specific strengths and weaknesses lay. Taking stock of your skills is an important exercise that will help you to perform and/or delegate your responsibilities in the most effective way possible. Use the following checklist to identify which business skills you already possess; which you will need to acquire to accomplish or manage the specific task on your own, and which will require professional help or assistance.
11 CHAPTER 1 WHAT IS YOUR VISION? 7 Business Skill Analysis Business Task 1. Understanding of the industry 2. Accounting/bookkeeping 3. Managing information technology systems (computers, telephone, credit card machines, software, etc.) 4. Handling telephone communications 5. Conducting sales transactions 6. Scheduling appointments 7. Managing payroll 8. Scheduling employees 9. Maintaining client records 10. Developing customer policies 11. Developing employee policies 12. Handling human resources (interviewing, hiring, firing, developing compensation and benefits packages) 13. Developing procedural guidelines 14. Evaluating employee performance 15. Problem-solving 16. Resolving conflicts 17. Purchasing property/negotiating a lease 18. Managing finances 19. Maintaining inventory control 20. Complying with local and state business law 21. Understanding of the technical skills of all service providers 22. Marketing 23. Promoting sales 24. Handling public relations 25. Advertising 26. Working with product vendors 27. Merchandising 28. Managing retail sales 29. Educating clients 30. Recommending products Feel Confident Need Professional Experienced Could Learn Help
12 8 SPA BUSINESS STRATEGIES: A PLAN FOR SUCCESS WHAT IS MY PERSONAL LEARNING STYLE? As you take stock of your individual strengths and weaknesses, there are likely to be a number of tasks that require additional support or training. Whether you decide to use a consultant or seek additional education pay attention to how you learn best. The following exercise will help you access the tools you need to accomplish your best work. I prefer to: Listen (audio tapes, podcasts, etc.) Read (books, training manuals, white papers, etc.) Write (fill in the blanks) Experience firsthand Learn from my own mistakes (independent trial and error) Review my questions with someone in authority FOCUSING YOUR INTENTION On pages 2 3 of Spa Business Strategies we discuss the law of attraction. How will you apply this law to your own success? Use the following exercise to affirm and strengthen your convictions. It is my strong desire to: Affirmation for Success To help me reach this goal: I now attract an employer/employees who I now attract a spa location that is I now attract clients who I now attract consultants/advisors/teachers who I now attract the financial resources needed to
13 CHAPTER 1 9 WHAT IS YOUR VISION? Keeping the Vision Alive There are many things to think about on your road to success. A vision board that includes a complete description of your ideal spa or job position, along with a photo that depicts the type of spa you envision and your intentions for manifesting that space, can help you to stay focused on your dream. As you move forward, add pieces that inspire your vision, such as key words or phrases in your spa philosophy, paint and fabric swatches, marketing materials, etc. to mark the highlights of your journey. A strong visual reminder will help you to see the excellent progress you are making. Success f ul Day Spa Successf ul Day Spa Success f ul Day Spa FIGURE 1-1 A vision board _01_ch01_p indd 9 7/3/09 10:56:16 AM
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