Are you a wellness professional or spa owner looking to build your business in a more sustainable way? Do you wish you could have profit guaranteed in your business? This article is taken from an interview that I did with the author of Profit First™, Mike Michalowicz. Profit First is the book that I wholeheartedly recommend to all of my students.
Mike Believes the biggest source of entrepreneurial stress (and even depression) is the lack of cash reserves. This article will give you tips to avoid this and create the business of your dreams in 2020 and beyond.
How I Discovered Mike & Profit First™
I discovered Profit First™ when I had just started Spapreneur™. In the beginning, I had trouble grasping the concepts. The thought came to my mind, “Why not reach out to profit first professionals?” And so I did. What I was able to learn has changed my life.
Because I implemented profit first, I was able to sustain my business and profits through the hardest time for business owners, 2020. There was no harder hit industry than the spa industry. Nevertheless, with Profit First strategies in place, my business is still running. Needless to say, Mike offered up pure gold advise in our interview. Here are some of the highlights from our conversation about what we all can do to thrive in a pandemic!
How to Put Profit First When Revenue is Down
First of all, Mike says, “You never change your parent percentages, you’re artificially extending the life of the company.” If you cut into your profit your business will hit a cliff sooner or later, and worse of all, you have no profit stored up. There are two things you need to do. First, cut any and all unnecessary costs. Second, become inventive.
Smart Moves in a Pandemic
We need to change the notion that the spa business is dead. For one thing spas and other business are opening back up and we are starting to feel a bit of normalcy. However, what are some ideas for when you are in lock down or people are still hesitant about stepping out?
Have you considered offering shipping out products? Some spa owners are reinventing their spa experience for at home. They might create “The at home spa kit.” They say, “You can buy it from us, we include our products, and it’s a online consultation.”
Another option is starting a subscription service. Some spa owners and massage therapists have sending out their products on a weekly or monthly basis.
#2 The One Step Back Method
Here’s an example: Imagine you are a restaurant owner. Here is what you’d do. You look at your current offering, putting food on the table. You’d simply start unwinding one step back at a time. You then consider all of the things you did leading to that final delivery. The restaurant put food on the table. Well, what happens one step back from that? Well, you carry food to the table. One more step back and the obvious solution is carry out and take out.
Some restaurants got really innovative. They became collaborative. They teamed up with a food truck, and the food truck is doing deliveries to neighborhoods. The former restaurant is now a cooking center. I have seen businesses that are actually increasing their profits by using this method!
A New Book
Mike is releasing a new book entitled Fix This Next. Here is a quote from Mike regarding the purpose of his new book.
“One of my greatest privileges as an author has been to connect with over a million entrepreneurs (so far). From live presentations, to social media connections, to in person sit downs I have witnessed the landscape of the small business. And it’s clear: The biggest challenge we face is knowing what our biggest challenge is. As a result most businesses stay stuck in a pattern of 2 steps forward and 3 steps back.
The method is simple. Identify which of your company’s Core Needs are not currently being satisfied. Determine which one of these is the Vital Need, and fix it next. With that Vital Need resolved and your business moving forward, repeat the process to grow even more.
Business growth only happens when you do the right things… at the right time. This book will show you exactly how to do it.” – Fix This Next Book – Mike Michalowicz
Ready to increase your profits and build a sustainable spa business? Here is where to head next…
Join a Community of Other Professionals In The Spa Industry
Listen to The Spapreneur Podcast