You need an exit strategy for your spa business, even if you don’t plan on retiring soon.
Let’s face it, sh*t happens and life can change so drastically that selling your spa may need to happen a.s.a.p.
Maybe your partner has an incredible job opportunity in another city.
Maybe you and your partner want a completely different lifestyle and want to simplify; to live on a farm, by the beach, in the city, or (insert what lifestyle makes you melt with happiness).
Maybe, heaven forbid, you become ill and can no longer be a spa owner.
In all of these scenarios, you can either walk away from your investment or sell your spa and be relieved of the pressures of being an entrepreneur.
But if your business isn’t turning a profit or has systems that are missing in your documentation or have a company culture that no on wants to deal with…the price you can command is limited.
Selling your spa requires it to have value: profitability, turn-key and easy transitioning. Tweet this!
And because what you are selling is mostly goodwill (your client list), it’s essential you set your business up to be as smooth and profitable as possible.
Creating an Exit Strategy is much the same as creating a business-building strategy. In fact, this is what I work on with my private clients when they come to me looking to take their business to the next level:
• Cash Flow Forecasting and committing to systems that increase revenues.
• Documenting all your business processes so they are clear, implemented and easily repeatable by your whole team
• Cleaning up your Company Culture so you have staff that is working towards a committed and collaborative environment.
When I had my son, 14 years ago, I immediately realized I wanted to sell my spa and be at home with him more (both mentally & physically). But I also realized my business was financially worthless on paper at the time. Preparing my spa to sell was hard work, but I was incredibly motivated and was able to “whip it into shape” and sell it within one year. I pulled it off in a relatively short timeframe, but it was stressful, and I wouldn’t recommend the pressure.
This is why I want you to prepare your business to sell…just in case you need to.
But before you dismiss this post because you don't plan on changing your entrepreneurship anytime soon, there is a fantastic bonus to creating an Exit Strategy well before you need one!
By increasing your profitability, improving your business system and cleaning up your company culture, you will experience the ease and confidence of running a spa that’s making money & providing a fulfilling career until it’s time to make your next move. Wouldn't you rather be operating like this as long as possible?
Then when the time does come to sell, you will feel empowered and in control of the whole process.
Although there may be some final tweaks to your spa business just before you put it on the market, by planning and delivering your Exit Strategy now, you will be able to command a higher price in the future.
I want you to have choices in your life.
Unfortunately, when we're strapped for cash then faced with life-changing situations, selling your spa will be stressful and much more challenging to create the same opportunities you could have, if you were more organized years before.
Starting April 18th, and for the next 5 Mondays after that, I'm teaching an online course specifically for spa owners called Cash-Strapped to Cash Flow, a program to understand spa-specific Cash Flow Forecasting, industry benchmarks plus tools and tactics to increase your sales and profits. This is the exact information I used to turn my business (and many others!) around.
Giving wonderful services isn't enough anymore. Spa owners need to understand & practice financial literacy to be in control of their revenues, rather than hoping it will all work out. You don't need to go back to college for accounting or bookkeeping, but you do need to know the relevant financial skills to have opportunities and choices and to create the business you envisioned.
If you have any questions about creating your Exit Strategy (or want to get started whipping your spa biz into shape now!), reach out to me and schedule a complimentary 30 min coaching call.
Want to know more about Cash-Strapped to Cash Flow for spa owners? You can go here for more info or email me at firstname.lastname@example.org.