5 Common Mistakes Most New Spa Business Owners Make: Avoid These

Statistics show that three out of five new businesses in the US don’t make it the first five years. Many people make mistakes when starting their businesses, and avoiding some of those mistakes can raise your chances of success.

One of the first things to think about is are you trying to reach the wrong people to sell your products or services to? Are you marketing to the wrong audience? In the spa business you are probably most interested in reaching the female demographic. But beyond that what age range are you hoping to serve? There is nothing wrong with targeting twenty-somethings, those in their thirties, or those in their forties and beyond. It is just best to decide early on which group you are going after and targeting your marketing efforts. Don’t use a shotgun, use a rifle. Advertise in the publications and on the radio stations that your intended audience reads and listens to. Don’t try to be everything to all people. Pick your target and serve them well.

The second mistake many business owners make is spending too much money. You need to be properly capitalized, with enough money in the bank to survive on – both you and the business – for several months when you first start out because it might take a while to actually get the first month of profitability under your belt. Every dollar invested in your business needs to have a purpose, because as the old saying goes, money doesn’t grow on trees. Don’t go overboard with advertising, furniture and decorations. Be realistic.

On the other hand, the third most common mistake is not spending enough. Don’t be stingy with your business cash. Buy decent equipment, good linens and create a marketing budget that is realistic, and stick with it. Make sure that the spa or business area creates a positive image in the minds of your clients.

Putting on a fake front is the fourth mistake many business people make. They refer to themselves as “we” when it is just “I”. If your business is yours, a sole proprietorship, then use that to your advantage. Be personal and upfront with your clients. They will appreciate your openness and become loyal clients in the future.

The fifth most common mistake new business owners make is assuming that they will only have to work 40 hours per week. When you own the business yourself you may be doing 50, 60, or 70 hour weeks because the business is yours and you’ll need to make hay while the sun shines. Put all the time and effort into the business that it requires and don’t be lazy. If you take care of the business now while it is young it will grow and down the road it will take care of you.