When last we chatted, I was telling you about one of our regulars, Fran, who has the opportunity to take over directing the spa portion of a doctor’s practice. She wanted to know what to look out for and prepare for that was beyond the obvious.
This time I want to talk about ways to “speak” to the spa’s existing and potential clientele.
When you go in and take over the supervision of an existing business, the first thing you must do is find out where the business was when it began (why did the business start up?), what happened along the way and where it is now. You need to learn about the “culture.” That culture needs to be respected even if that culture is going to be changed. You also need to know how you are going to talk to the clients who have “visited” that culture.
There are three basic examples:
Business is fabulous. Clients are happy and return regularly. Therapists are happy, consistent and work together well. Gosh, it would be so great to walk into this more often.
First thing you want to do is let the clients know that the quality of care and service will not alter. Tell them about your experience. Maybe tell them why you were hired/bought the business. Then talk about what changes you may make and invite comment.
But there is always something, even in a happy business. Be proactive and ask for suggestions. Don’t waste time mailing out surveys for this. Have the receptionist or therapist (if they have time) hand out a 1/2 page, 3-5 question survey when a client comes through. Leave a box out for the clients to drop their answers into. Maybe make it very simple and ask, “What is ONE thing you would like to see added or changed at [Spa by the Sea]?” If 47 out of 100 clients really hate the color of the treatments rooms, or if 36 people ask for unscented lotion in the bathroom, your next step is very clear. Aren’t you glad you asked?
Then you need to thank clients for helping improve the business either in a sign at the door or in a postcard. What you’re saying and showing is that you respond to clients’ needs and they are helping you do it right.
Business is plodding along. There are regular clients, but not as many as you’d like. Some are devoted and some just haven’t gotten around to trying some place else. Therapists are okay with being here; it’s not bad, but greener pastures could call any day now. This is totally dealable. Clients and therapists just need a little boost and then some consistent, regular contacts.
For the therapists, you need to be sure that all of you are on the same page in terms of customer service and basics like dress, speech and personal care. Make up a list, get together and discuss it. You need to present a united, harmonious front.
Take a week and talk to different types of clients, the regulars and the occasionals. I recommend talking to them when they come in (keep it short). Tell the clients who you are and why you are there. Ask them what can be done to improve their experience (give them concrete examples: shorter wait for appointments, added services, weekend hours).
Then you send the letter out to everyone who has gotten work done in the past three years. Tell them 2-3 things you will be adding or changing. Re-introduce a therapist or two, focusing on their specialty and how their work will help the client specifically Finally introduce yourself and invite input.
Consider having a house “re-warming” celebration and be sure to budget for at least quarterly contact for the next six quarters. Also, if there are any news-worthy changes (Anybody have special/unique training? Relocated studio? Fundraising for charity?) be sure to get the press involved
Business has one foot in the grave and one foot on a banana peel. No one is happy. Clients come once or twice and never return. Therapists are demoralized and bleak. If session prices were cut any more, you would be paying the clients. The place smells funny. It’s time for a do-over.
Obviously, you’ll start with the therapists and staff. Once those who are sticking around for the ride have had their say, start contacting clients.
Contact the people who have come back at least twice. They have it in their hearts to be willing to give things another try. Acknowledge the problems of the past. What have you done to rectify them. Re-introduce a therapist or two and give concrete examples of what their work will do to improve the client’s lifestyle. Introduce yourself and make a big deal about “If there are any concerns, here are my office hours and here is my direct line (for example).”
Then start focusing on what kind of clients you want.
Take a good, hard look at your practice’s neighborhood. Start there. Is it a residential area? Who lives there? Talk to them. Are you in a business are? Who works there? Talk to them.
Is there a box store on one side of you and a state office on the other side? You can’t send both groups the same kind of message.
What is the strongest training your therapists have. Do they all excel in sports massage? Do most of them have a desire to work with elders? Capitalize on that.
However you choose to contact your clients is up to you. Postcards, letters, flyers, newsletters, skywriting, whatever. Whatever your choice, you must make it based on what will get the client’s attention and make your budget fit your campaign. If letters are the best way to go, do it, even if postcards are cheaper and faster.
Any thoughts? Send them in.
All my best,
Eileen
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6 users commented in " A Spa Grows in Brooklyn: thoughts on taking over a business (pt II) "
Oh PS. She gave me the total run down about the therapist that have previously worked there. Greener pastures called for many… I will get a chance to talk to and meet people next week. Something interesting too this October will be the anniversary of the clinic and spa so it looks like fresh wind will be blowing through.
Good stuff for you to know, Fran .. and hopefully you can find out what it would take to keep therapists at *your* spa longer.
Don’t let that anniversary go by without a lot of hype and invitations to clients and potential clients. Check out the entry “It’s Your Baby — Celebrate!” And Diana wrote an article a while back that might give you a lunching point for your upcoming PR work: http://www.naturaltouchmarketing.com/NTM-Article-Archives/2007/07-Public-relations-Your-link-with-the-community.php
You might have to copy and paste that link.
Keep us posted. I know you’ll be BUSY, but I’d like to know what works and what Is To Be Avoided next time.
All my best,
Eileen
So it’s been a minute since we last spoke. What a ride. So I have been going back and forth about this spa deal and I have to tell you some very interesting things have popped up.
This is a serious banana peel/grave syndrome.
1. The owner wanted to have a percentage plus the rent. Now after I sat and ran the numbers it became apparent that I would be working to pay her and have very little for myself after paying another therapist and maybe something left to work with for expenses.
2. She was offering 950 sq. ft during the week day and about an additional 75 sq.ft.on weekend because it’s mix use space not all available during the week. $1,500 for 6 months, $2,000 after that and going up to $3,000 in a year. And once we got all the way up there she was still looking for a percentage. There are only two rooms, and inferred sauna, common waiting area and use of the exercise area and other therapy rooms (not spa like) on weekends. Oh and 50% of the phone bill since it’s tied into a system. Insurance was covered under the current insurance policy for the entire rehab practice because it is all in one office suite. The space is already to work in. And she was opening up her patient data base to market to.
I had to ask what a straight rent a looked like. It would be all of the above except patient data base. I’m tired just talking about it.
Another thing that came up when I spoke to someone is what if something happens to her, how will that effect what I’ve built up? She’s been very open to tweeking things here and there but…Ellen. I think this is not my deal. Maybe I don’t work there maybe I just have others looking for something to work there?
I was bringing to the table increased retail, because right now it’s only two shelves about three ft. long, my wellness coaching program, skincare program. Alot of which I had to go to certification trainings for. I was looking at building packages. Revamping the way appointments are booked and gift certificates are sold. That is an issue I understand. The other thing is that she’s on the 7th floor of an office building that does not allow any type of signage in the lobby or out front of the building.
My girlfriend has said to me, sometimes you need to see a different prospective in order to see what you really have to appreciate it. I have to tell you. The client base I have been building, have been coming out of the wood work over these last weeks and they would not have followed to the new location. I have decided to make magic happen in the little room I currently rent. I’ve added more spa treatments and decided to have spa parties on the weekends. Many of my clients don’t even know what that is and when i shared it they said sign me up I’ll come. I would be better off waiting for a space of my very own so I can offer all the services I want.
I find it amazing that you can have something so beautiful and not have it generate anything. 2 to 10 appointments maybe a week. It’s crazy. I guess she did not realize what it would require to have it running effectively. She in fact has two business that are two separate animals. When people are injured and need rehabilitation work, that is a totally different market than what she was hoping for. She wants to one day have a destination spa and Canyon Ranch if you will.
I realized the more I dealt with the situation the more stressed I was becoming, so something was very wrong. I started thinking about the fact that I would not be getting any rest and still have to maintain the family activities and was really looking at this as an opportunity to have two locations, slipt my time and even ween back on doing the heavier massage work. But two treatment rooms and a sauna is not going to do a whole lot I think. More money going out than in don’t you think.
My husband is stressing me out about this too because he feels there is an opportunity here. Perhaps consulting her and getting her things up and going. We’ll see.
The main thing here was running the numbers. When I asked for information I could never get a straight answer.
1. How much does it cost to perform the service. Facials, body treatments, massages.
2. What services are generating the most money?
3. In the last 3 months, 6 months how many appointments have there been. How many spa parties.
Everything as far as the spa was all done by hand for client accounting. The Sports rehab portion got all the computerized attention. She will from time to time advise the patient to take advantage of the medical massage service. For the most part they do seem to respond to that. I’m not quite sure why other therapist who where hired to be spa managers didn’t pan out but I’d sure like to know.
IF I turned this thing around and decided to consult her spa business and get it out of the ditch what would that look like? I do enjoy a challenge not a migraine though. I’d like to propose a percentage of proceeds as the business grows and do a contract for 3-6months. Can you give me some guide lines there? : )
Hi Fran—
Wow. You’re right. A lot is going on.
First off, sorry it’s taken me so long to reply. I haven’t checked the comments too closely this week; there has been so much spam in my box I wasn’t seeing the good stuff (like yours).
It sounds like you’re pretty twirly about all this and I can totally see why. I’m sure by the time this gets to you you’ll have made a decision already.
Here’s what I’m getting from you: You have an awful lot to bring to the table. In addition to certification and experience, you are able to be an administrator and have the ability to see the Bigger Picture.
If your current clientele is blossoming and you *like* the kind of people you are currently working with and you *like* where you think the future is leading you, I would maintain your loyalty to them. And keep you eyes open for a space of your own. There is definitely one coming soon … you are calling it to you.
It does sound like the doctor currently is dealing with two completely separate animals, as you say.
To be honest, I, personally, would be reluctant to take over her spa/massage stuff. To me it sounds like an awful lot of work for a space that simply doesn’t have room for expanding to meet your goals. I think going through the process of talking with the doctor and having the opportunity to critically examine what it would take to get this part of her business off the ground is a real gift to you and your future. You have had the chance to get your priorities clear and in order.
The consulting idea is compelling. That would be a great learning experience for you IF you can make it be worth your time and money.
Consulting can be difficult for some because, while someone with your experience and drive has valuable skills to offer, maybe being authoritative doesn’t come easily. If this is you, remember now, write it down, tattoo it on your arm, that you are smart, experienced and have something of worth to offer. Keep repeating that.
I recommend charging hourly rate plus a percentage of profits through May. That will bring you through Mother’s Day. Work towards the doctor hiring a competent, motivated receptionist/PA that can follow the marketing/business plan you lay out.
If you feel like you need to just help this lady out, which is understandable — you’ve built a relationship with her, maybe start with two weeks at a flat hourly rate as you review the spa’s files and figure out what actually HAS been happening there in the last year.
Once you have an idea of where the spa has been, you can then see where it is going. At that point, you can determine
1) if you want to take this on,
2) what percentage of profit will even be available,
3) if the profit projections (if any) will be WORTH YOUR TIME.
If it is worth your time, lower your hourly rate and add a percentage. What that percentage is depends on your projections. The doctor needs to feel like you’ll be motivated and like she will see some profit, too. It’s a fine line. but, again, remember your worth. You aren’t doing this as a favor. You are an educated, talented, professional businesswoman.
If it’s not worth your time to continue, you will still have helped, and you will have had someone else pay for furthering your education as a future massage/spa magnate.
Hope this was in some way helpful.
I am VERY interested in hearing what you decide and how it works out.
All my best,
Eileen
This has been a tremendous help. You tapped every nail right on it’s head. Thank you. I will keep you posted.
That’s me, The Tapper. Look for me in comic book stores near you.
Really, I do want to hear how you’re doing. And, as always, let me know what did and didn’t work out.
Eileen
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