Entrepreneurs work too hard. Why do I say that? Because most don’t have a proven-effective business model in writing outlining all their systems, structures, policies, procedures, training, etc., so they are always repeating themselves and doing things in an inconsistent manner.
For example, during a private coaching call recently, a client was expressing frustration with the fact that she had to train yet another new employee, and it takes a lot of her time. I asked her if she has a training manual for that position. The answer was no. This is a new client to us, but she is not new to her business. As a matter of fact, she has been in business for nine years. After nine years, she still does not have departmental manuals. She is working too hard. What plan did we come up with to help free her from the repetitive tasks that took up days for her to complete? Are you in the same situation? If so, I encourage you to keep reading and implement the following business model. This will set you free, and it will also help you prepare your business to be sold in the future for a much higher price.
6 Steps to Creating an Effective Business Model
1. Establishing structure
2. Defining your spa departments and identifying your department leads
3. Manuals needed
4. Systems and operational guidelines by department
5. Training needed – Technical & business
6. Measurement – Evaluation and continuous improvement
1 Establishing Structure
Establishing structure gives the entire team clarity as to how your organization operates. Without it, you have chaos.
Every business has four main departments:
It’s best to have department manuals for each division of your company. Establish chains of command in order for your team to know who to go to with issues, training, coaching, and help. Who will train them, evaluate them, mentor them, etc.?
Publish an Organizational Structure.
2. Defining Your Departments and Identifying Your Department Leads
Including department leads within your organization structure is extremely important and helpful to the leadership of the spa/medi spa. Department leads should:
Plan for success
Train the team
Motivate the team
Implement strategies, systems, policies, etc.
Help maintain a great positive attitude within the spa
In addition, each department must have position descriptions, evaluation methods, goals, and expectations.
3. Manuals Needed
For any business to succeed, it must have operational manuals by department.
For a spa or a medi spa, you must have the following manuals:
I. Orientation Manual
II. Employee Manual
III. Therapist Manual
IV. Reception Department Manual
V. Call Center Manual
VI. Support Team Manual
VII. Injector Manual
VIII. Sales Manual
IX. Consultation Manual
X. Video and Audio Training Library
XI. Management Manual
Having these manuals will prove crucial when it’s time to sell your business. You will be able to receive a much higher valuation of the business.
4. Systems and Operational Guidelines by Department
The manuals should include training information to perform each position. For example, a therapist’s manual should have a manual for technical knowledge explaining protocols, product knowledge, rituals, guest experience, etc. Also, it must have a business section to teach the team how to recommend upgrades and home-care products, expectations, goals, and evaluation methods.
Each business process should have a system. By having systems, your team and management team will have the ability to perform their positions with clarity. Systems allow you to have consistency, accuracy, and growth.
All systems should be in writing in the manuals. This will provide you and the department leads the training tools to use with new hires. But most importantly, it helps prepare your business for an exit strategy. When someone looks at your business to purchase it – having manuals and a business model in writing will be much more appealing. In fact, it could be the deciding factor on whether you will be able to sell your business or not.
5. Training needed –
Technical & Business
Most spas focus on technical training when hiring a new employee. Of course, technical training is a must but so is business training. When you hire a new person, they need to go through orientation, technical training, and business training. This will take some time, but it will be worth it in the long run.
What business training should your team undergo? They must learn how to increase revenue per guest, retail sales, cross marketing, self marketing, asking for referrals, gaining reviews, selling memberships, gift cards, promotions, and more. When you focus on business training, you will position your team for success!
6. Measurement – Evaluation and Continuous Improvement
Yes, manuals and systems are important to have, but make sure you are continually updating and improving your model. When you measure performance, notice what is working and what is not so you can fine-tune and keep improving. Be on the lookout for new treatments, new products, new rituals…ways to improve your guest experience. Or, see how you can improve your hiring process, management process, accounting, sales, and marketing efforts. You need to always be monitoring and innovating techniques to improve all your systems and update your manuals.
Implement these six steps to prepare your business for elevated success, as well as for your exit strategy!
Written by Dori Soukup
Need help? Reach out to Info@InSPArationManagement.com and gain access to a business model. We offer 9 spa business manuals in Word documents. Begin customizing now!