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7 Ways To Scale Spa Business (Spa Business Revenue)

It is important to have a plan when deciding how to scale a spa business. Like any business plan it is important to understand the direction and how to get there. The essentials of how to scale a spa business includes defining the terms. Don’t confuse growth with scaling.  Daniel Marcos, the co-founder and CEO of Growth Institute lays out some foundational definitions in a blog post, Growing vs Scaling: which one are you? He begins by discussing a reality that cannot be ignored, “… less than 1% of the companies that start up, actually make it. The ones that do, they don’t set out to grow – they build their company for scale.” He defines scale as “growing at a much faster rate than your expenses”. On the other hand, the business concept of growth includes increasing revenue by increasing expenses. William Liberman writing for The CEO’s RIGHT HAND® in an informative article entitled, Growth vs Scale: What is the Difference and What’s Right for You? Lays out a concise answer to this simple question. Mr. Liberman contends that “Business growth is about increasing top-line revenues at any cost, whereas scaling a business is about increasing revenues while minimizing your costs, effectively improving your bottom-line or profit margin. Economists refer to this latter phenomenon as achieving “economies of scale.” How to Apply Scale to the Spa Business To scale a spa business these general business concepts are essential starting points. Growing by continuously adding to the overhead and expenses may lead to more revenue, however it is contingent on more time, more energy and more money being invested to achieve more revenue. Scaling a spa business on the other hand is adding to revenue increase without adding more labor, constant reinvestment, and more time. The idea behind scaling a spa business is to keep expenses in check while increasing top line income.  7 Ways to Scale your Spa Business Ways to Scale a Spa Business include:

  1. Technology – Use the latest technology to streamline appointment bookings. Corporations have already done the heavy lifting and have taught consumers to rely on apps. Spa owners can have an app developed with all the bells and whistles needed by employing a company that specializes in development.
  2. Social Media – Become an active social media user to highlight new products, specialties, specials, hours and more. Be sure to respond to all comments good or bad. 
  3. Community Activist– Engage with the community at events where your services can be highlighted. Become a sponsor of sports teams and engage with parents. 
  4. Run contests – Use your social media presence or appointment app to run a regular drawing for a free or reduced service.
  5. Cross Promote– A thriving business community lifts all local businesses. Become an active member of the local business community. Partner with other businesses to offer specials to their patrons while they do the same for you. 
  6. Offer a New Service that requires a small investment with the potential for a consistent return. The FIT Bodywrap Infrared Sauna is the perfect example for all size spas. Its small footprint, minimal training, and affordable investment is an exciting new spa service. It checks all the boxes for any size spa. It can be sold as a health, beauty and relaxation experience as an add-on or standalone service.
  7. Sell Retail at Checkout – Use the Checkout space to display products that match the services that are provided. Natural product offerings for hair salons include name brand or proprietary shampoos, conditioners, and hair care products. When adding a FIT Bodywrap Infrared Sauna to the menu of services, add their line of lotions and sprays for extra labor-free revenue.
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