If I had to say the biggest problem for individuals working in the spa industry, it’s the spa worker’s relationship with money.
Rule number one for Spapreneur is ‘Don’t Fuck with the Money.’ We didn’t pick that phrase to be controversial or raise eyebrows. We don’t focus on money because we’re greedy, it’s not because we think about money only. It isn’t because money makes the world go round. No, the real reason money is our first rule is that what money is doing in your business tells us what is going on in your business.
When a business has a healthy relationship with money you see full appointment books, you see growth in retention numbers, client referrals. These are the Spapreneurs who get to try the newest modalities. Unfortunately, these Spapreneurs seem fewer and far between. Instead, I see spa professionals scared to raise rates, complain that their business doesn’t bring them money, and have to work a part-time job.
There are few things unaffected by money. It is a tool for some for great good or great pain. Money has had songs, plays, book and movies as it’s focus. Money blamed for large amounts of human suffering, and the very nature of greed can make people do terrible things. Above customer service, above your employees – money must be the priority.
Money tells us everything.
When I work with Spapreneurs one-on-one the first thing we talk about is how much are they making, how much are they charging, and how much they are spending in their businesses. What will surprise many of you is that the majority of spa professionals do not have a clue about their business finances. They seem to have plenty of appointments, charge the average going rate, and have great reviews. They don’t make any money.
Too many Spapreneurs are working not for themselves but instead for the next appointment where the money will come in and then immediately flow out. Money comes into the business without purpose or direction – and gets lost. Then after a long day, week, month, year, lifetime you look back and wonder “where is my money?”
There is something you can do about it.
First, you have to admit that you’re first in this business because you want to make money. For some reason, spa professionals seem to have difficulty attracting and keeping their money. They feel unworthy to raise their rates, charge no-show fees or invest in their education. Spa professionals then get upset when their bosses, landlords, or clients seem to have all the power because these individuals have the money. What many Spapreneurs don’t understand is that when you put purpose into your business finances money seems to come – and quickly.
You have to stop using the excuse “I’m in this business to help people” – we’re all in this business to help our clients, but your first and top priority is to ensure you are getting the income you deserve and need for your business and family. If you don’t then how can you honestly help people?
The next step – get fucking honest with yourself. Pull your credit report, gather up all those bills, look at your spending. Are you in debt – get out of it, because it will never be your money if you owe to someone else. Not able to make your monthly obligations to your family? Living only on your partner’s income all the while working full-time? Yeah, stop that shit, because you’re lying to yourself.
You have to set up a budget
Call it a spending plan if you need to but your business needs a budget – and it needs to give each dollar a job. A budget isn’t scary, but it’s a plan that allows you to grow and thrive. Trust me; my budget tells me how much I can spend in an area and how far I have saved.
Still not sure where to start? Our monthly webinar is all about DeStressing Your Dollars. The Spapreneur official money coach is Amber Dugger. She has personally helped me implement Profit First and YNAB to handle my personal and professional budgets. Because of her, I have paid off thousands of dollars in credit card debt, and my business is profitable.
Yours can be too. Join us October 18th at 12:00 pm EDT.