As a small business owner, there’s no denying the economic challenges that you’re currently facing post-pandemic. From supply chain issues to labor shortages to struggles with inflation, it can be difficult for any business to stay afloat.
Further, if you run a day spa, you may run into those same issues. People are tightening up their budgets amidst a possible recession, and self-care services can often be one of the first things they let go of to save money.
Luckily, there are steps you can take to stay afloat and protect your spa through a possible recession and beyond.
Make Smart Financial Decisions
The best thing you can do to keep your business above water for the next few years is to be smart with your finances. Be deliberate with the decisions you make and carefully consider the effects those choices may have on your business, employees, and customers. Now is the time to start reducing unnecessary expenses, building up a rainy day fund, and expanding your revenue streams — that way, you’ll be ready to handle any economic downturns.
Further, as an entrepreneur facing economic uncertainty, it’s also essential to have a crisis management plan in place before disaster strikes. Understanding your greatest risks and the impacts a crisis might have on your business will force you to become better prepared. You’ll make fewer financial mistakes and have “backup” ideas in place that you can implement if your business starts to struggle. The more detailed your plan, the more confident you’ll be in your long-term success.
Though people might be trying to spend less with a recession looming, many recognize the importance of mental health and self-care. Demand for mental health treatment soared throughout the pandemic. Self-care also has become a critical part of daily life for many people, as they worked to cope with such dramatic changes and new stressors in daily life.
A day spa isn’t a replacement for professional mental health treatment, but it’s a great self-care option for people who want to manage daily stress and its impacts on their mental and physical well-being.
Focus on wellness in your marketing materials, rather than promoting your services as a luxury. By marketing the benefits of stress-reducing services, you can market your spa in a way that truly appeals to people — and even helps them as they also navigate challenging times.
Improve Customer Loyalty
It may be your goal to attract new customers to your spa, but it’s just as important to put more of your focus on your existing customers. While you shouldn’t stop marketing to new people, it’s essential to ensure your current customers and clients keep coming back. After all, the last thing you want is to lose existing business.
You can build customer loyalty by:
- Providing superior customer service
- Personalizing your services
- Engaging with feedback
- Providing benefits like customer loyalty programs
One of the great things about improving customer loyalty is that your satisfied customers are likely to share their positive experiences with friends and family. That kind of word-of-mouth advertising is worth its weight in gold. If you’re trying to cut back on your marketing budget, providing such quality service that your customers become your “ambassadors” is a win-win situation for your business.
There will undoubtedly be challenges over the next few years as the economy potentially dips into a recession. Will everything be easy? Probably not. However, by keeping these ideas in mind and knowing how to manage your business effectively, your day spa won’t just stay afloat – it may even thrive.