It's an exciting time when you're ready to expand, but are you truly prepared for the financial side of things? Let's explore the crucial spa business metric you need to keep an eye on before taking the leap. It's easy to get swept up in the excitement of growth plans, but have you checked your financial reports to see if your business can handle the upcoming costs and expenses? Sometimes, our optimism can cloud our judgment. And the usual Profit/Loss statement from your bookkeeper or the sales from your Point of Sale are not enough to make a wise decision that’s based on calculated risk.

Numbers Are Navigators…Again!

But fear not, there's a key number hiding in your booking system that can give you a clear view of your financial readiness. Running a spa business on a budget requires mindfulness. Jumping into growth initiatives based solely on perception can lead to some sticky situations. Just think about it:

• Hiring before you're truly busy enough can strain your finances.
• Introducing new products without enough sales can hurt your cash flow.
• Expanding your space too soon adds extra expenses without boosting revenue.

Let's talk about the big KPI that sits at the critical point of growth decisions: Productivity and it’s your compass during spa growth planning. In this episode, you’ll learn:

• What Productivity tracks in your business.
• The green light Productivity number for growth.
• Where to find this metric in your spa software.
• How often to check your Productivity metric.
• What you should be looking for while you’re tracking this KPI.

I'm very much about tapping into your intuition, trusting your intuition in your business, letting that guide you hundred percent. But we also need to pair that with the data, the actual numbers. - Kirsten Foss

Time Stamps

00:02:28 - Importance of data-driven decisions and why you can’t ONLY rely on what you “think” is happening

00:07:00 - The consequences of uninformed decisions hiring before having enough clients, introducing new products without sufficient retail sales, and expanding without sustainable cash flow

00:10:40 - The Key KPI: Productivity…and what this number should look like before saying yes to a new growth initiative.

00:15:53 - Strategies for increasing Productivity on a daily basis .

00:17:48 - Spa Owner Action Steps - spa & service provider Productivity tracking, daily team huddles and ongoing coaching

What’s Your Productivity KPI At, Dear Spa Owner?

Discovering what Productivity means & how it affects your spa business and team growth outcomes is a huge eye-opener. When I first learned all of this information, you would have seen my mouth hang open in disbelief! “OH!! That’s why I’m so cash strapped. I didn’t know what to look for BEFORE I dropped thousands of dollars on that new hire that I didn’t end up staying because it wasn’t busy enough.” and “OH!! Now I see where the opportunity gaps are with my sales!!”

Now the question is “How do I increase Productivity?”

I would love to answer that for you! But it’s a big topic and I’ll make that for another podcast!

If you could use a seasoned Spa Business Strategist (that’s me!) to get eyes on your spa sales opportunities, book a complimentary Get-Acquainted Call with me. I’ll show you how to analyze and use your reports to make strategic growth decisions that will bring your more client sales and financial freedom!