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Advanced management & operations
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Advanced Operations and Management
June 23,24,25 2008
http://www.youtube.com/watch?v=GbweiP4_Mfs
Welcome
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DAY 1:Operational Success- 9 to 5
Attitude & Motivation
“The Secret”
Leadership & Management
Getting your Operational Platform Right!
“Show Me the Money”
25 Strategies for SuccessDAY 2:Management Success- 9 to 5
Leadership Skills Sets
Hiring the Best
Train the Trainer
Multiunit Management “MUM”
DAY 3:Raising the Bar- 9 to 2
Managing the Goal
Through Accountability
Following Up & Following Through
Time Management
Everyone Must Be In The Race
Extra Nuggets:
10 Thoughts on Management
J.P.’s 100 Tips for Success
Business & Leasing Terminology
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DAY 1:Operational Success- 9 to 5
Attitude & Motivation
“The Secret”
Leadership & Management
Getting your Operational Platform Right!
“Show Me the Money”
25 Strategies for Success
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Brandy,
I recently attended the Advanced Sales Classes, and have already seen a difference. I came back from the classes with much enthusiasm and created excitement in my sales team by holding numerous "classes" to implement the new techniques learned. Our overall sales have increased 15%, when compared to last May!! The largest improvement has been in Membership Sales. I think a light went off in their heads...they finally got it!! They have even admitted how easier it is to sell a membership with these simple changes. I just got off the phone with my Spa Consultant and she informed me that they each sold three Spa Memberships this week alone! What fun!Anyone who doesn't take advantage of this great tool is foolish. Thanks again for the help.
Monica Wolf
Testimonial: Advanced Sales Training
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Steve,
I sent a friend, Gretchen, into your store with my business card for three complimentary sessions two days ago. I am thrilled to tell you that she phoned me last night and went on and on about how she fell in love with it! She said that the staff was very attentive, informative, and friendly. The best part is that she originally wanted to go in because she had never tanned before and wanted to try it out but she came out completely sold on hydration (she called this a full body steam cleaner) and lumiere. You should pass on kudos to your new manager for effectively communicating our overall concept and converting a “tanner” to a wellness enthusiast simply by caring enough to educate them. Gretchen is going back today planning on signing up on an EFT and is bringing another one of our friends with her.Way to go uptown!
Alicia L. Conforto
Testimonial: Advanced Sales Training
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OperationsOperations
The nuts and bolts of operational issues of the company
Composed of a wide range of day to day activities including:o Hiring, motivating, and firing employeeso Developing compensation planso Keeping relations with vendors/outside resourceso Deciding on who will do the accounting/ book keeping for the companyo And many more…
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LEADERSHIP
Management & Operations is like running a tight ship
….and That Takes LEADERSHIP!
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The Price of Leadership is Responsibility
….and part of that responsibility is to stay positive whether you feel like it or not.
The Attitude of the Leader will determine the Attitude of the team!
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Leadership
“GIVE A MAN A FISH- YOU FEED HIM FOR A
DAY”
Teach him how to fish and you feed him for a life time.
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How to Manage & Operate a Successful Planet Beach Contempo
Spa
It ’s About…
ATTITUDE!
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Running a successful business is like a SPORT…It takes courage, commitment, conviction, and
confidence to win!
You Must Be In It To Win It
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The longer I live, the more I realize the impact of attitude on life. Attitude, to me, is more important than facts. It is more important that the past, than education, than money, than circumstances, than failures, than successes, than what other people think or say or do. It is more important than appearance, giftedness or skill. It will make or break a company…a church…a home.
Attitude
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The remarkable thing is we have a choice every day regarding the attitude we embrace for that day. We cannot change out past…we cannot change the fact that people will act in a certain way. We cannot change the inevitable. The only thing we can do is play on the one string we have, and that is our attitude…I am convinced that life is 10% of what happens to me and 90% how I react to it. And so it is with you…we are in charge of out Attitudes. -Charles Swindoll
Attitude
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‘You’ve Got To Be a Fighting Rooster’
“You’ve got to be a fighting rooster. You’ve got to get out there and preen those feathers and look like you know what you’re doing and hope you know what you’re doing and have a good time.”
-Pierce Brosnan
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‘You’ve Got To Be a Fighting Rooster’
“You struggle with money. You struggle without money. You struggle with love. But it’s how you manage. You have to keep laughing, you have to be fun to be with, and you have to live with style-not fancy-schmancy, but in a way which is present and meaningful and has some beauty to it.
-Pierce Brosnan
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What it Takes to be Number ONE
http://mk1.netatlantic.com/t/765377/8627015/3178/0
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The Secret
http://www.youtube.com/watch?v=_b1GKGWJbE8
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When you bought the Franchise, no one ever taught you how to be a
franchisee.
You’re not opening a Planet Beach Contempo Spa, you’re opening a
BUSINESS!
I Thought I Would Get a Plan?
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WHAT ARE THE 4 SKILLS AND WHAT ARE THE 4 SKILLS AND QUALITIES THAT A SMALL QUALITIES THAT A SMALL BUSINESS OWNER MUST ACQUIRE BUSINESS OWNER MUST ACQUIRE OR POSSESS TO BE SUCCESSFUL?OR POSSESS TO BE SUCCESSFUL?
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““ AN EXPERT IS A MAN WHO KNOWS AN EXPERT IS A MAN WHO KNOWS JUST THAT MUCH MORE ABOUT HIS JUST THAT MUCH MORE ABOUT HIS SUBJECT THAN HIS ASSOCIATES. MOST SUBJECT THAN HIS ASSOCIATES. MOST OF US ARE NEARER THE TOP THAN WE OF US ARE NEARER THE TOP THAN WE THINK. WE FAIL TO REALIZE HOW THINK. WE FAIL TO REALIZE HOW EASY IT IS, HOW NECESSARY IT IS TO EASY IT IS, HOW NECESSARY IT IS TO LEARN THAT FRACTION MORE.”LEARN THAT FRACTION MORE.”
-WILLIAM N. HUTCHIN-WILLIAM N. HUTCHIN
It's Easier Than You Think
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1) Sales Skills1) Sales Skills- Always selling someone (whether it ’s your
customers employees, or vendors
2) Management & Operations2) Management & Operations
- - Employees must have a good leader & operational platform
3) Budgeting & Finance3) Budgeting & Finance- Budgeting/Business Performa/Plan- Reporting on financial performance of company
4) Marketing Skills4) Marketing Skills- Everyone has to market her product…no one is
exempt
4 Skills to be Successful4 Skills to be Successful
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Challenges of Small Business Owners
According to the U.S. Small Business According to the U.S. Small Business Administration, roughly 50% of small businesses Administration, roughly 50% of small businesses
fail within the first five years.fail within the first five years.
Some of the top reasons for failure include:1) Lack of Experience2) Poor location3) Unexpected Growth4) Insufficient Capital
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The Hard Work Will Pay Off!
oHave a sense of accomplishment
oKnow the thrill of creation
oFeel the pride of watching your creation grow
oRealize that your work & vision have filled an identifiable void for your customers, employees, and family
Once Successful, you willOnce Successful, you will:
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“WHAT IS THE MOST CENTRAL TO BUSINESS?”
They joy of creativity; teaching our people how to create
business. How to win, how to be top
producers!
Winning is Everything
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To satisfy the customer is the mission and purpose of every
business!
“What is Our Business?”
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What is PROFIT?
If you don’t have it…You won’t have a Business
A day is surely sadly done when you do a day’s business just for fun.
Henry David Thereau
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You Cannot Change Today, You can Only Change Tomorrow. What is happening today is
already in motion.
Spa Directors and Assistant Spa Directors have to create
tomorrow!
Creating Tomorrow
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Effectiveness is the foundation of success– Efficiency if a
condition of survival after success has been achieved.
Efficiency is concerned with doing things right–
effectiveness is doing the right things
Efficiency & Effectiveness
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Management & OperationsManagement & Operations
ManagementManagement= most important of all business plan categories!
oThe success/failure of a business hinges on the quality of its management & operation platform
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These 3 days will be manager focused.
Great Management is a Taught Discipline: It is a
sum of knowledge to perform tasks through
people.
Manager Focused
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Without action all is wasted!
Specific and concrete work assignments with clear defined goals, with
deadlines and clear accountability is the end product of analysis.
Unless objectives are converted into action, they are not
objectives and goals, they are only DREAMS!
From Objective To Doing
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Manage to Our Mission
For the benefit of our customers and the communities we serve. We will remain dedicated to
the continued success of each Planet Beach franchise.
Our franchise locations will provide superior customer service with an inspiring, alternative
atmosphere
Planet Beach will deliver premier wellness, relaxation, UV Therapy and skin rejuvenation
services that enhance the contempo spa experience.
Mission Statement
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Manage to Values
Good PEOPLE who BELIEVE in the product, who have
professional INTEGRITY and know how to FOCUS on
achieving all GOALS.
Statement of Values
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OUR MEMBERS & GUESTS
FRONT LINE STAFF
SPA DIRECTOR/
ASST. SPA DIRECTOR
FRANCHISEE
Planet Beach Organization Chart
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Organization Chart Explained
The Inverted Pyramid Model
Most organizations are pyramidal in nature with owner at the top.
There’s nothing wrong with the pyramid but who’s at the bottom? The people who do all the work!
What IS wrong is when people see the pyramid as each level working
for the level above them.
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Organization Chart Explained
We turn the pyramid upside down so that no one staff person is on top.
We put members and guests at the top because most service organizations fail because the staff is spending all their time responding to the top boss instead of responding to the member!
The management works for their people. They are responsive to the staff. Managers help their staff win!
The staff is responsible for high quality SERVICE MAGIC.
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Our Commitment
The spa’s success is based on your job satisfaction and the relationship you have with your co-workers and the members. We will provide you with appropriate training, recognition for a job well done, and an equitable opportunity to meet your personal financial goals so you can become a happy, productive team member. With a productive team, we can stay focused on the spa’s primary goal: Keeping our members first in everything we do.
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Commitment
To do this, our management and staff are committed to the following:
1) Hiring talented and dedicated people and paying them competitive salaries
2) Creating an atmosphere of trust, teamwork, and confidence so each team member can excel and grow as an individual
3) Working together to create a financially strong company that continues to invest in its members and staff. The team members also provide support for each other as they achieve individual & company goals
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Commitment
4) Accepting the changes that come with personal and professional growth
5) Agreeing to negotiate resolutions to all complaints and concerns
6) Having pride in the work and service we provide to our members
7) Consistently exceeding our members’ expectations
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It is fashionable today to talk of revolt against authority and
proclaim that everybody should “Do your own thing.”
What One Man Can Do Another Can Do!
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I’m sorry that this advanced operations & management training will completely go
against this train of thought.
I will not talk about rights; but I will stress responsibility
WITH A CLEAR FOCUS ON PERFORMANCE & PROFITABILITY !
Stress Responsibility & Performance
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SHOW ME THE SHOW ME THE MONEY!MONEY!
$1,000,000 $1,000,000 SPASPA
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Jerry MaguireJerry Maguire
http://www.youtube.com/watch?v=OaiSHcHM0PA
Show Me the Money!
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Million Dollar Million Dollar Spa!Spa!
Longview, TXLongview, TX
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Are you making too much Money?I am confident the answer is NO. We have solutions to improve your bottom line. If you have not looked at the rankings on ORION we challenge you to do so immediately.
TX055 Longview. Texas put $94,600.93 in the bank for May 2008 and a total of $467,445.00 from January-May. That is more than most locations do in a year. That’s $93,489.00 per month, projecting $1,121,868 for the year!!! Planet Beach Contempo Spa’s 1st Million Dollar Spa! This location has not been airlifted to another spot to increase traffic. They have the true essence of SPA. They have skincare and retail sales over $132,799 for the year, or $26,600 per month average. Ask yourself do you want to have results like that? What are they doing that you are not?
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How are they doing it??
The answer…They are a true Contempo Spa and you are still operating as a tanning
salon. Just because you have SPA equipment does not mean you are operating as a Contempo SPA. There are two huge MUST HAVES to achieve these results. Staffing for Success and Education on How to Operate a True Contempo Spa!!
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Getting Your Operational Platform Right
1) Make the Invisible- Visible
2) Staffing for Spa Success
3) Operating a Contempo Spa Not a Tanning Salon
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“Make a physical change and a mental change will take place!”
-Pat Riley
Make the invisible- Visible
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You Must use your imagination to picture a
True Contempo Spa.
Contempo Spa The Movie
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“The most common form of stupidity is forgetting
what one is trying to do.”
“What ’s Your main focus?”
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If you chase two If you chase two rabbits, you will rabbits, you will certainly catch certainly catch
neither.”neither.”
J.P.J .P.
Focus on Your Main Goal
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Contempo Spa History
We have been selling,
the same product;
the same way,
to the same people for some time
But hey wait…things are pretty good- why change? Or Are they????
Because a huge opportunity exists in our industry and is very powerful
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TANNING IS DED!TANNING IS DED!
• DARK TANNING IS DARK TANNING IS OUT!OUT!
• HEALTHY GLOW IS IN!HEALTHY GLOW IS IN!
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CORPORATE E-MAIL (STEVE CORPORATE E-MAIL (STEVE SMITH)SMITH)
I was reading a new tanning trade publication yesterday and I was amazed at how the tanning industry is still in utter denial of marketplace reality. In an article about the
German tanning market (Germany is the mother land of indoor tanning), out of 8000 tanning salons, 1800 went
bankrupt in 2006 alone. The article blames the decline on price wars and poor quality...how about supply and
demand stupid! The publication is full of statements such as "today's tanning customer is more demanding"...duh! Nobody drives a horse carriage anymore. Fortunately, we
asked ourselves why this was happening to UV tanning two years ago and then we went about changing our market position to that of a "Contempo Spa", as you all know.
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Corporate E-mail (cont…)Corporate E-mail (cont…)
Additionally, in this new publication it is reported that according to a Smart Tan customer survey in May of 2005, “From 1998 to 2005,
consumer confidence in tanning has dropped in the U.S. from 70% to 16%.” In spite of evidence such as this from the industry educational leader, the tanning industry as a whole remains stumped as to why their market is in decline. They can’t seem to see that no industry
can sustain that much bad press for that long. Needless to say, PB in on the right track.
May, 2008-What’s the popularity of tanning now?
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WANT A SEASONAL BUSINESS?WANT A SEASONAL BUSINESS?
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THE BUGGY WHIP THE BUGGY WHIP
QUESTION: WHAT IS IT?QUESTION: WHAT IS IT?
http://youtube.com/watch?v=MfL7STmWZ1c
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“Failure to Realize what the Public Wants”
Gas Mileage!
GM * Ford * Chrysler
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We are in a battle for our very existence.
There is “do” or “do not”. There is no “try”.
Yodahttp://www.youtube.com/watch?v=1FLgLJnZgjE
Win or Win or Die!Die!
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We are in a recession-2008We are in a recession-2008
Stocks Plummet as Oil Prices SoarGas approaching $5 per gallonMassive layoffs projectedInterest Rates- Where will they be?Who will be our President? Our Leader? Can he save us?War in Iraq-Iran? When? How Long? How much$$?Housing Market in the tank. Losing Money. Foreclosures.
People are stressed out of their mind with uncertainty. Fear, Fear, Fear
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The last recession wiped out 500,000 small businesses. The recession is going to dramatically effect you and your Planet Beach Contempo Spa business. When you are prepared for change, you
won’t just survive, you’ll thrive.
How to profit during the recession of 2008 and beyond?
If life gives you lemons, make lemonade!
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Ready to Relax?Ready to Relax?We have the ultimate stress reducer at Planet Beach Contempo Spa.
Where people can immerse themselves in total tranquility, where they can relax, rejuvenate, recharge themselves.
Planet Beach Contempo Spa is the ultimate retreat from the everyday. A place to relax and to revitalize the mind, body and spirit.
We have the perfect prescription for anti-recession!!
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Stress! Stress! Stress!
Planet Beach Contempo Spa is a Stress Buster
Don’t kid yourself, stress ages you faster than anything else:Stress is a killer…
In fact the world health organization
estimates that 80% of ALL ILLNESSES are directly or indirectly caused by STRESS.
Therefore, if you’re not proactive in busting stress, it’s very likely to come back
and bust you!
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Whack-A-Mole
http://www.youtube.com/watch?v=A2pUe8FiHFA&feature=related
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Organizational Chart & Job Descriptions
Who Is Going
To Do
What By
When And How?
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Motivation and Teamwork & your Operational Platform are the Keys to Total Success
for your Planet Beach Contempo Spa
T = Together
E = Everyone
A = Achieves
M = More
T.E.A.M.
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Danger in the Comfort Danger in the Comfort ZoneZone
Our comfort zones can be Our comfort zones can be our greatest enemy to our our greatest enemy to our
potential and success. potential and success. We must embrace the We must embrace the
change from Tanning Salon change from Tanning Salon to Tanning Spa to total to Tanning Spa to total
Contempo Spa.Contempo Spa.
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WALK THE TALK NEWSWALK THE TALK NEWS
The Daily MotivationThe Daily Motivation
““ In life, Change is the In life, Change is the inevitable.inevitable.In business, change is vital.”In business, change is vital.”
Warren G. Warren G. BennisBennis
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Tell It Like It Is!
Level with your people, tell it like it is.
We are going to be going through a change– Its going to be challenging.
It may be better for some of you to move on.
It’s about accountability & individual performance.
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The “4” Truths of The “4” Truths of ChangeChange
1.) Change in business is necessary. Or Die!
2.) Change is an absolutely critical part of business!
3.) Only true believers in change will succeed!
4.) Ferret out resistors, even if their performance is satisfactory or you will not succeed!
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“Perhaps the biggest pitfall you face is assuming that what has made you
successful to this point in your career will continue to do so. The dangers of
sticking with what you know, working extremely hard at doing it , and then failing miserably are very
real.”- Michael Watkins
Change
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Business Model Change?
Franchise Times (April 2008 Article)“The Numbers Game” by Wendy Webb
Sometimes companies start out doing one thing and end up
specializing in another.
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Changes in the demand for your product or service.
Companies that are impacted positively or negatively by a
change in demand need to stay ahead of that curve.
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Rebirth of an Eagle
http://www.youtube.com/watch?v=J65MycJKwgw
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John Kotter: John Kotter: Our Iceberg is Our Iceberg is MeltingMelting
http://www.youtube.com/watch?v=Gh2xc6vXQgk
How to Lead Bold ChangeHow to Lead Bold Change
“More and more people have to understand how the world is changing, the need for change, and how change
works when it works well…” - J. Kotter
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Transforming Organizations Must Do’s
1) URGENCY = focus on what matters and DO IT! NOW!!
2) LEADERSHIP = Create vision of “What business we are in” To Achieve Market Advantage
3) STRATEGY = New information. Everyone must be aware of new goals, new operator platforms, and how it is achieved.
4) PRESSURE TO PERFORM = Do it Now! Everyone is accountable for performance OR LEAVE!
Change : GET REAL
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It is not necessary for a business to grow bigger, but it is necessary that it grow
BETTER!
Change
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Kotter’s 8 Steps to Successful Kotter’s 8 Steps to Successful ChangeChange
1)1) Increase Increase urgencyurgency2)2) Build the guiding Build the guiding teamteam3)3) Get the Get the visionvision right right4)4) CommunicateCommunicate for buy-in for buy-in5)5) Empower Empower ActionAction6)6) Create short-term Create short-term winswins7)7) Don’tDon’t let up let up8)8) Make it Make it stickstick
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Step 1: Create UrgencyStep 1: Create Urgency
What You Can Do:
o Do it now! Procrastination is suicide on the installment plan.
o Examine opportunities that should be, or could be, exploited with time frames.
o Start honest discussions, and give dynamic and convincing reasons to get people working on the change with time frames.
100% of the team needs to “buy into” the change NOW!
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Step 2: Build the Guiding Step 2: Build the Guiding TeamTeam
What You Can Do:
o Convince people that change is necessary
oWork on team building within your change coalition.
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Step 3: Create a Vision for Step 3: Create a Vision for ChangeChange
What You Can Do:o Determine the values that are central to the change.
o Develop a short summary (one or two sentences) that captures what you "see" as the future of your organization.
o Ensure that your team can describe the new vision in three minutes or less.
o Practice your "vision speech change” often.
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Step 4: Communicate the Step 4: Communicate the VisionVision
What You Can Do:
o Openly and honestly address peoples' concerns and anxieties.
o Apply your vision to all aspects of operations – from training to performance. Tie everything back to the vision.
o Lead by example.
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Step 5: Remove Obstacles & Empower Step 5: Remove Obstacles & Empower ActionAction
What You Can Do:o Identify, or hire, people/eagles who will embrace and deliver change.
o Look at your organizational structure, job descriptions, and performance and compensation systems to ensure they're in line with your vision.
o Recognize and reward people for making change happen.
o Identify people who are resisting the change, and help them see what’s needed or remove them.
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Step 6: Create Short Term WinsStep 6: Create Short Term Wins
What You Can Do:
o Look for sure-fire projects that you can implement with team targets for the change.
o Don't choose early targets that are expensive. “Baby steps”
oReward the people who help you meet the targets
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Step 7: Don’t Let Up. Build on the ChangeStep 7: Don’t Let Up. Build on the Change
What You Can Do:o After every win, analyze what went right and what needs improving.
o Set goals to continue building on the momentum you've achieved.
oKeep ideas fresh by bringing and using team suggestions and strategies.
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Step 8: Make it StickStep 8: Make it Stick
What You Can Do:
o Talk about progress every chance you get. Tell success stories about the change process, and repeat other stories that you hear.
o Include the change ideals and values when hiring and training new staff.
o Publicly recognize key members of your original change team, and make sure the rest of the staff – new and old – remembers their contributions.
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John Kotter’s 8 Steps to Successful John Kotter’s 8 Steps to Successful Change have been proven valuable Change have been proven valuable to such companies as: Mastercard to such companies as: Mastercard
Worldwide, Kaiser Permanente, and Worldwide, Kaiser Permanente, and Black & Decker.Black & Decker.
Kotter’s 8 Steps Put to WorkKotter’s 8 Steps Put to Work
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Staffing for Sales Success
Consulting vs. Selling
Getting your body count right can make or break you.
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Staffing and Operational Platforms
Correct staffing and education on operating a true Contempo Spa are the KEYS to Financial
Success
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How many Employees do I need?
Spa Director Asst. Spa
Director
Spa Consultant
Spa Consultant Spa
Consultant
Spa Consultant
Receptionist Bed Cleaners
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http://www.eagleschoolmovie.com
You Can’t Send a Duck to Eagle School
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“Hire Sunshine. Your front line is your bottom line.”
Hospitality = Profit
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“A 10 usually hires a 9. Focus on getting an 11”
Talent Goes Downhill
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“You can’t train STUPID!”
Hire for Ability as Well as Hospitality
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80
Fix your people problems before you fix your marketing
problems.
What’s Your Problem?
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Staffing for Success
Recommended Spa Schedule
*see worksheet
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For the Week of:
Prepared by:
9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM Sick? TOTAL
Spa Director x x x x lunch x x x x x 9
Asst. Spa Director x x x x lunch x x x x x 9
Spa Consultant 1 0
Spa Consultant 2 x x x x lunch x x x x 8
Receptionist* x x x x x lunch x x x 8
Spa Consultant 3 x x x x lunch x x x x x 9
Total
9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM Sick? TOTAL
Spa Director x x x x lunch x x x x x 9
Asst. Spa Director x x x lunch x x 6
Spa Consultant 1 0
Spa Consultant 2 x x x x lunch x x x x 8
Receptionist* x x x lunch x x x x x 8
Spa Consultant 3 x x x x lunch x x x x 8
9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM Sick? TOTAL
Spa Director x x x x lunch x x x x x 9
Asst. Spa Director 0
Spa Consultant 1 x x x x lunch x x x x x 9
Spa Consultant 2 x x x x lunch x x x x 8
Receptionist* x x x x lunch x x x x 8
Spa Consultant 3 x x x x lunch x x x x 8
9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM Sick? TOTAL
Spa Director x x x x lunch x x x x x 9
Asst. Spa Director 0
Spa Consultant 1 x x x x lunch x x x x x 9
Spa Consultant 2 x x x x lunch x x x x 8
Receptionist* x x x x lunch x x x x 8
Spa Consultant 3 x x x x lunch x x x x 8
9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM Sick? TOTAL
Spa Director x x x x 4
Asst. Spa Director x x x lunch x x x x x 9
Spa Consultant 1 x x x x lunch x x x x 8
Spa Consultant 2 x x x x lunch x x x x 8
Receptionist* x x x lunch x x x x x 8
Spa Consultant 3 0
9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM Sick? TOTAL
Spa Director 0
Asst. Spa Director x x x lunch x x x x x 8
Spa Consultant 1 x x x x lunch x x x 7
Spa Consultant 2 0
Spa Consultant 3 x x x lunch x x x x 7
Open
9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM Sick? TOTAL
Spa Director
Asst. Spa Director x x x lunch x x x x x 8
Spa Consultant 1 x x x x lunch x x x 7
Spa Consultant 2 0
Spa Consultant 3 0
Open
**You should hire a receptionist once your Contempo Spa is open. This position is not necessary in a prev iew center.
Friday
Saturday
Sunday
Spa Schedule10/18/2004
Monday
Tuesday
Wednesday
Thursday
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Operational SuccessOperational Success
A well-defined organizational chart A well-defined organizational chart and clearly defined job descriptions and clearly defined job descriptions and duties are critical to your Spa’s and duties are critical to your Spa’s
overall success. overall success.
““ Difficulties mastered are Difficulties mastered are opportunities won.”opportunities won.”
Winston ChurchillWinston Churchill
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Operational Procedures
Few people go to work intending to perform poorly. Franchisees and Spa directors must establish high standards and operational procedures for their staff and
show them how to pursue excellence.
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Lethargy of Lethargy of EntitlementEntitlementThis company is just like one big,
happy family.
Ever heard someone say that?
Chances are, they’re stuck in entitlement.
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EntitlementEntitlement
The result of too much generosity?
We give people what they expect and don’t hold them accountable for meeting criteria’s of
excellence.
Why does that happen?
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Hugs and Warm FeelingsHugs and Warm FeelingsEntitlement Answer: Spa Directors/Franchisees are unwilling to do the work requiring work.
Spa Directors and Franchisees that are not focused on goals and rewards based on
productivity frequently create entitlement because they want to avoid discord and bad
feelings. They don’t hold people accountable for results.
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Good performance, bad performance, or no performance are all treated the same. Entitlement happens when people feel they have so much security, they don’t have to earn their rewards or pay.
Remember, we’re going to WAR with a RECESSION. Entitlement won’t cut it.
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Success… My nomination for the single most important ingredient is
energy well directed.-Louis Lundburg
Great People Great Profits
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Jim Collins: Good to Great“Why Some Companies
Make the Leap… and Others Don’t”
“Good is the enemy of GREAT”
http://www.youtube.com/watch?v=3bR2Jlgg71Q
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Are You a Fox or a Hedgehog?An ancient Greek parable
explains the differences between foxes and hedgehogs:
FOX
•Knows many things and lacks consistency
•Cunning creature
•Able to devise complex strategies
HEDGEHOG
• Knows one BIG thing and sticks with it
•Dowdier creature
•Simplifies a complex world into a single idea
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So what separates those who make the biggest
impact from all the others who are just as smart??
THEY ARE ALL HEDGEHOGS!!
Hedgehogs are not stupid!!
They understand that the essence of profound insight is SIMPLICITY
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Hedgehog Concept: The Three Circles
“It is not a goal to be the best, a strategy to be the best, an intention to be
the best, a plan to be the best. It is an
understanding of what you CAN be the best at.”
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The Three Circles1) What you can be the best in the world at (and what you can’t
be the best at)
-Good to Great companies understand that doing what you’re GOOD at will only make you GOOD; focusing solely on what you can potentially do BETTER than other organizations is the only path to GREATNESS.
2) What drives your economic engine
- Must find a single “economic denominator”
- If you could pick ONE ratio– profit per x for example– to systematically increase over time, what x would have the greatest and most sustainable impact on your economic engine?
3) Understanding your passion
- The idea is not to stimulate passion but to discover what MAKES you passionate
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Why Greatness??
The real question is not, “Why greatness?” but “What work
makes you feel compelled to try to CREATE greatness.”
"Be not afraid of greatness: some are born great, some
achieve greatness and some have greatness thrust upon
them".
-William Shakespeare
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Staffing for Success
The inmates do not run the asylum!
Every customer and member MUST wait to be consulted!
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Staffing for Success
You must SLOW down.Consulting is a contact sport.
You are a Contempo Spa not a Tanning
Salon.No more “Turn ‘em and
Burn ‘em!”
SLOW DOWN SPA AHEAD
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Think Hospitality and Relaxed Think Hospitality and Relaxed Ambiance Ambiance
Think Ritz Carlton, not Motel Think Ritz Carlton, not Motel 6.6.
Think Ruth Chris, not Think Ruth Chris, not McDonalds.McDonalds.
Think Vidal Sassoon Beauty Think Vidal Sassoon Beauty Salon, not SupercutsSalon, not Supercuts
Think Canyon Ranch Day Spa, Think Canyon Ranch Day Spa, not Massage Parlornot Massage Parlor
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What do you know about…What do you know about…
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Motel 6Motel 6
We’ll leave the light on for you!
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Ritz Carlton BasicsRitz Carlton Basics
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HOSPITALITY BY APPOINTMENT HOSPITALITY BY APPOINTMENT ONLYONLY
Think Contempo Spa! Not Tanning Salon!Think Contempo Spa! Not Tanning Salon!
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Services By Appointment Only… Non-Services By Appointment Only… Non-NegotiableNegotiable
“We set up our services by
appointment only. Are you available
today or tomorrow?”
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Stop The Insanity!Stop The Insanity!Slow Down; Consult Slow Down; Consult Your Customers and Your Customers and Members for Sales Members for Sales
Success and Maximum Success and Maximum Profitability.Profitability.
Movie NetworkMovie Networkhttp://http:// www.youtube.com/watch?vwww.youtube.com/watch?v
=90ELleCQvew&feature=related=90ELleCQvew&feature=related
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The Critical Path to Your SuccessThe Critical Path to Your Success
1.)Compliment and Direct
2.) Usage Consultation
3.) Skin Care Consultation
4.) Referral/Ambassador Program Consultation
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“Enough about you. Let’s hear about me.”
-Cynthia Heimel
What People Crave
Harvard school of law: People crave 2 things
more than anything else in this world…Repect and
Acceptance
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“Most of the trouble in the world is caused by people wanting to be
important.”
- T.S. Elliot
Make Your Members Feel Important…Not You
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“We are what we repeatedly do. Excellence, then is not
an act, but a habit.”Aristotle
We must guide and consult our We must guide and consult our members for maximum operational members for maximum operational
success success
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Every guest, customer, and member Every guest, customer, and member should be complimented as they should be complimented as they arrive at your spa. People buy from arrive at your spa. People buy from people they like and there is no better people they like and there is no better way to get someone’s full attention way to get someone’s full attention other than to greet them with a other than to greet them with a compliment.compliment.
You want to go where everybody knows your name:You want to go where everybody knows your name:http://http:// www.youtube.com/watch?vwww.youtube.com/watch?v=Lf5ojdakpq8&feature=related=Lf5ojdakpq8&feature=related
1.) Compliment and 1.) Compliment and DirectDirect
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“My job is to take care of you. Please sit down, relax and unwind! You deserve it.”
Ready, Set, Relax, Breathe, Indulge Yourself
It doesn’t get any better than this!
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The Opportunity
Sell the Contempo Experience
This is The Great America Industry
• We do our jobs
• We produce very little waste
• We make people happier, healthier, more relaxed, and less stressed
• We make money
SO…
Don’t just sell Memberships…
Sell the Experience, Inspire Lifestyles!
Make the Contempo Spa the Third Space in People’s Lives
• They have work
• They have home
• We want to be their third place that they not only want, but also NEED
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Consult the client on what service Consult the client on what service they are using; find out how they are they are using; find out how they are
enjoying their services, and make enjoying their services, and make recommendations on other service recommendations on other service
optionsoptions..
2.) Usage 2.) Usage ConsultationConsultation
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Planet Beach Contempo Spa is your retreat from the every day. A place to relax and revitalize the mind, body and spirit. Spend and hour or two. Our extensive range of spa and beauty treatments will give you the balance you desire and the tranquility you deserve.
Usage Consultation Usage Consultation
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Regarding our Lumiere Facial, we suggest starting off with two to three
sessions per month
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Consult the client on the products Consult the client on the products they are using with their services, they are using with their services, and ask about their satisfaction in and ask about their satisfaction in the results thus far. Suggestively the results thus far. Suggestively
sell additional products to sell additional products to provide better results.provide better results.
3.) Skin Care Consultation 3.) Skin Care Consultation
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Let me ask you this…Regarding Skin Care,
how important is looking your very best
to you?
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Planet Beach Contempo Spa is the Planet Beach Contempo Spa is the world’s leading life enhancement world’s leading life enhancement
centers. Enrich yourself today! We centers. Enrich yourself today! We believe that your skin deserves believe that your skin deserves
only the best. That’s why we offer only the best. That’s why we offer holistic solutions for those who holistic solutions for those who
choose a natural approach to choose a natural approach to health, wellness and beauty.health, wellness and beauty.
Skin Care ConsultationSkin Care Consultation
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Consult the member on the Consult the member on the status of their referrals, and status of their referrals, and
WIIFM with the current WIIFM with the current ambassador offers and ambassador offers and
incentives.incentives.
4.) Referral / Ambassador Consultation 4.) Referral / Ambassador Consultation
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Ambassador Drawing
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Referral’s have great rewards for Referral’s have great rewards for our members. Word of mouth our members. Word of mouth
advertising is the best advertising. advertising is the best advertising. It creates loyal, long-term, It creates loyal, long-term,
satisfied members.satisfied members.
Referrals=Rewards and Retention
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When your friend becomes a member you will receive
1 Month FREE
When 5 of your friends become members you will receive
1 Year FREE
Sponsor 10 people and receive a
Lifetime Membership FREE
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Spa’s do not come with customers. We have to create them.
Prospecting
Promotions
Referrals
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Prospecting: Promotions and Referrals
Your prospecting-promotions and referral goals must be linked to your spa goals with the focus on your reoccurring revenue, your EFT goals for maximum monthly and yearly
Spa revenues, as well as profitability.
80% of your sales success must come from your staff…ALWAYS! Franchisees and Spa Directors must train,
educate and hold your staff accountable for your spa’s success along with their own success!
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THOSE WHO LIVE BY THE DOOR DIE BY THE DOOR!!
Remember…
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Let’s break down the Let’s break down the Million $ Spa Goal by the Million $ Spa Goal by the
numbers…numbers…
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GOAL REVENUE GOAL REVENUE SUMMARYSUMMARY
1. Monthly Net EFT $54,000/ mo.
2. Monthly Membership Cash $20,250/ mo.
3. Monthly Retail $9,084/ mo.
Total $83,334/ mo.
x 12 months =
The $1,000,000 SpaThe $1,000,000 Spa
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How to Establish Your Monthly EFT GoalsHow to Establish Your Monthly EFT Goals
•In order to reach the $1,000,000 Spa Goal, you must have $54,000 EFT members established in 14
months (with 2 months of pre-sale) with projected average monthly dues of $69 per member.
•$54,000/ $69 avg = 780 Total Members needed @ 0% attrition rate of 13%; you must establish 900 EFT
Members.•900 EFT Members over a 14 month period = 65 EFT
Members per month or 2 EFT members per day, which includes the attrition rate of 13%.
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Let’s do the Math…
$54,000 EFT Goal for Million Dollar Spa
-$20,000 existing Spa EFT now
$34,000 needed to hit $1,000,000 goal
Assuming a $69 average EFT per member
$69/$34,000= 492 new EFT members needed.
At a factored attrition rate of 13%, then goal of 566 new members needed over a 12 month period, or 47 new EFT members per month at $69 per month average.
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Managing to your top and bottom lineBudgeting for growth in our new Contempo Spa model:
To obtain a $1,000,000 spa (or $83,333.00) per month revenue you must focus on overall (end game $1,000, 000) growth (one year process) versus immediate profitability.
Projected typical gross sales monthly, EFT goals, percent of profit, monthly and yearly targets.
* Any time you are over 25% for profitability, you rock!The sky is the limit. Go for it!!
Note: All projections and assumptions are based on normal pre-sale & grand re-openings expenses and normal overhead costs. Your profit margins may vary depending on your overhead expenses…
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I. Community Outreach: Guest Passes Prospecting:
Lead Gathering
II. Staff PromotionsCooperative Promotions
Business to Business
III. Internal Referrals:Ambassador ProgramMember Appreciation
Party
IV. Universal Promotions Marketing
4 Quadrants of Promotions
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Planet Beach Contempo Spa
When you enroll a new member what do you lose?What is your Contempo Spa’s most impor tant core asset?Answer: Current members/customers/guests and past members/customers/guests.
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Prospecting for Referrals
•Prospecting and promotions is the single most important quality in the selling process.
•Franchisees are good prospectors first, and good sales people second.
Prospecting: The First Step to Sales
•Since selling is an active process, so must prospecting be.
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•Knowledge of business, sales skills, and training are linked to your income by your strength in prospecting.
•Prospecting and sales are completely interrelated and independent.
•It is all mathematics—the more people you talk TO, the more new members you will enroll.
•Unquestionably, the “Referral System” is one of the most successful prospecting methods ever developed.
Prospecting for Referrals
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•Not asking for a referral is a serious mistake because most members want to contribute and help.
•42% of sales people do not asked for referrals.
•Those who do ask for prospects, in 65% of the cases, fail to secure any new names.
This is a tragedy!
Prospecting for Referrals
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How to Break Down Your How to Break Down Your EFT Monthly Goals Using EFT Monthly Goals Using
the “4” Marketing the “4” Marketing QuadrantsQuadrants
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Quadrant #1I. Community Outreach Promotions
Guest Passes
LeadGathering
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What are the non-negotiables?
Superior Customer Service
•Each employee must show utmost respect to each guest/member.
•Follow up and Follow through with everyone!
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Hello Dolly
http://uk.youtube.com/watch?v=taNDkbHPne8
Movie Clip
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What are the non-negotiables? Returned Guest Passes
You must have 5 of your guest passes returned each month
to maintain your position.
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Quadrant I :Quadrant I :•Community Outreach: Guest Passes•Prospecting: Lead Gathering
Let’s do the Math….
•Community Outreach: Guest Passes (Non-Negotiable) Staff6 consultants x 5 passes= 30 New Guests
30 Guests @ 33% closing= 10 NEW MEMBERS!!
•Prospecting: Personal Leads Prospecting (Non-Negotiable) Staff
6 consultants x 30 names= 180 Leads180 x 33% show rate= 60 New Guests60 Guests @ 33% closing= 20 NEW MEMBERS!!
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What are the non-negotiables?
The Pre-Employment Package
Must be COMPLETELY memorized.
Is your prospective employee a true Eagle?Give them 2 hours to go into the community and col lect names and numbers of those interested in visit ing your Contempo Spa.How many wil l they col lect?
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What are the non-negotiables?
Personal Leads
You are responsible for collecting 30 names, phone numbers, and email
addresses each month of people who are interested in our experiencing our
Contempo Spa
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Quadrant #I Success
Lets do the Math
Guest Passes6 consultants x 5passes=30 new guests30 guest @ 33%closing= 10 new members!
Personal Leads6 consultants x 30names=180 180 x 33%show rate=60 new guests60 guest @ 33%closing= 20 new members!
- -You got it - -
30 new members
without a marketing $$
spent!
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Quadrant #2 SuccessII. Local Business Promotions
Cooperative Promotions
VIP Business Partners
Lead Box Placement Business of the Month
Staff Monthly Promotions
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What are the non-negotiables?
PromotionsEach employee is responsible for organizing and participating in at least one promotional event each
month
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Promotion Examples•Sporting events•Fundraisers•Bar promotions•Conventions•Wellness Shows•Bridal Fairs
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How do I get other businesses involved?
Cooperative PromotionsEstablish relationship
with local business, l ike yourself, that market to the same demographic. Maximize your marketing
dollars by setting up special incentives for
Contempo Spa Members.
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What are the non-negotiables?
Lead BoxesEach employee is responsible for maintaining their lead boxes and collecting leads on a weekly/bi-
weekly basis
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Lead Box TipsTip #1: The number 1 place to put a lead box for the most leadsThe restrooms in restaurants (especially for women) provided that they have a sink or vanity area.*Sometimes a merchant will not allow a lead box on their counter space. So ask them about a space in the restroom (vanity area). It is a better location for leads. Tip #2: If a merchant is hesitant about putting a lead box in their establishment long term, ask for a trial run of two weeks. In most cases, 2 weeks becomes months or longer once you have it in place. Tip #3:Follow up with Thank You letters or card to the store owner and manager. Tip #4:BE NICE—BE NICE—BE NICE—BE NICE—BE NICE!!!
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Lead Box Call Back Script
*See worksheet
Call each lead back and offer them a WEEK of Spa.
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How do I get other businesses involved?
Cooperative PromotionsVIP Business Partners
•Florist—10% off arrangements
•Restaurant—buy one meal, get one FREE
•Health Club—1 week free trial
•Boutique--$10 off $50 or more
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Corporate Outreach PromotionsSet up corporate
accounts *See National Corporate Wellness Program and Activity
Master List worksheet
How do I get other businesses involved?
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Corporate Outreach Promotions
You must have abusiness of the
month every month!
*See Business of the month program worksheet
How do I get other businesses involved?
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Corporate Accts
Corporate Accounts are Key!!
•The New Expanding Corporate Market Membership Potential•Opportunity for Franchisees
*See Worksheet
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Community Business Promotions•Establish trade-outs with
local businesses.
•Participate in conventions and trade shows.
•Get involved in community fundraisers
and sporting events
How do I get other businesses involved?
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Quadrant #II SuccessLets do the Math
Cooperative PromotionsMinimum of 20 VIP Business Partners along with Lead box program= 60 new guests
60 guests @ 33%closing= 20 new members!
Employee Monthly Promotion6 consultants x 1 combined event per month.The goal is to have spa consultants generate 5 guests each, equalling 30 new guests.
30 guests @ 33% closing= 10 new members!
Corporate Outreach and Business of the Month ProgramYou must have on selected business of the month and Corporate Outreach Program.The goal is to generate 30 new guests.
30 guests @ 33% closing= 10 new members!
- -You got it - -
40 new members
without a marketing $$
spent!
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Quadrant #3III. Internal Referral Promotions
Ambassador Program
Month-End Member
Appreciation Party (MAP)
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Creating and Retaining Members
Referrals Referrals Referrals
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1. Sign them UP!On the right membership—24mth Contempo Spa
2. Never Let them QUIT!By providing excellent customer service.
3.Have them Bring a Friend!Referrals are 50% of your marketing success.
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10 Step Referral Process
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1. Congratulate the new member on a great decision on joining Planet Beach Contempo Spa2. Ask Question: What do you think is the biggest reason a member stops coming to the Contempo Spa?
ANSWER: They have no friends or family that are members and they are going alone
3. Make Statement: My main objective is to see that you accomplish your goals. (Go over skin care and usage consultation.) The best insurance policy is to have someone else who is a member also come to use UV therapy and Contempo Spa services with you and it is even better if they have been sponsored by you.
10 Step Referral Process
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4. Explain guest privileges and tell them we like to have our members nominate prospective new members.5. Tell them we would like for them to give us 5 names of friends and family they would like to see using the spa. Give them 5 VIP Guest Passes.6. Schedule their New Member Skin Care Consultation (green appointment)7. Referral Rewards: Make Statement. . . “When you and your friend come in (repeat appointment time and date) and if they decide to become a Planet Beach Member, you will receive 5 chances win the $1000 drawing and additional prizes and receive a Free Month. When 5 friends
join, you get a FREE Year!
10 Step Referral Process
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Ambassador Letter Ambassador Letter HandoutHandout
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Be A Planet Beach AMBASSADOR
Sponsor a member and receive a FREE month of dues.
You will also be entered into a drawing to win lots of amazing prizes.
Prizes include: A trip for 8 days and 7 nights in a four star hotel of your choice
$ 1,000.00 CASH An overnight stay at the Cambria Suites
A 1 Year membership to Idaho Athletic Club And much much more!
Ask a spa consultant for more details
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10 Step Referral Process
8. Congratulate the new member again. Repeat their goals again and tell them how good they are going to look and feel. 9. Introduce the new member to as many Planet Beach employees that you can. 10.Follow-up with a telephone call back procedure. (2 days, 10 days, 30 days) REMEMBER – it takes 21 days to build a habit. Help your members stick to the program and they will bring you friends for life.
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MAP (Non-Negotiable)
Monthly Member Appreciation Party for close-outs.
The goal is to generate month-end excitement (invite back all missed guests and potential Members, all current Members for possible upgrades and family add on’s, as well as Community and Business of the Month promotions, etc.)
Goal is to have a minimum of 5 guests per employee x 6 employees= 30 guests (Non-Negotiable) Staff30 guests x 33% closing= 10 NEW MEMBERS!!
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PB Belle Chasse July 4th MAP
PB Marrero July 4th MAP
PB Uptown MAP
PB Uptown MAP
PB Uptown MAP
PB Terrytown Fresh Flowers
PB Sarasota MAP Opening
PB Marrero MAP
John Cena at Shreveport MAP
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Lets do the Math
Internal Member Referral Program“Ambassador Program”The goal is to create 2 referral guests per day.2 guests x 30 days= 60 guests per month x 50% closing=30 new members!
MAP5 guests per employee x 6 employees= 30 guests 30 guests x 33% closing= 10 new members!
- -You got it - -
40 new members
without a marketing $$
spent!
Quadrant III Success
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Quadrant IVIV. Universal Promotions-You Buy It!
Direct Mail
Inserts
Billboard Radio
Ads
P.R.
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Have a plan!MARKETING AND ADVERTISING INIATIVES - All Brainstorming Options & Ideas
Publication: Name and Contact Information
Distribution Information:
Include number of
households and city info
Frequency Ad size Ad dimensions
Price Information
Term: Include any
minimim requiremen
tsMonthly Rates
Publication Dates
Deadline for Ad
Submission
Additional Comments
1
Hometown Magazine Judy Anderson 303-690-0717 [email protected]
50000 homes in zip codes 80134,80138,80015,8016,80013, 80016 covers both locations
Mar, May, July, Sept Nov
1/6 1/4 1/3 1/2
3.8125H x 4.875W 7.875Wx3.25 H
495 545 645 945
5 issues 272.5 11/15/07
10/31/06
2
3
4
5
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You must be in the Marketing Parade!
Use Radio, Direct Mail , Bil lboards, Ads, Newspaper Inserts etc..
*Make you piece effective by including an expiration date, your location
address, phone number and map!
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Examples
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Quadrant IV Success
Lets do the Math
Universal Marketing & P.RThrough universal marketing and P.R. campaign,The goal is to generate a minimum of 2 guestsPer day or 60 guests per month.60 guests per month @ 33% closing= 20 new members!
--You got it-- 20 new
members
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EFT Membership Goals per Month
Quadrant I = 30 New Members
Quadrant II = 40 New Members
Quadrant III = 40 New Members
Quadrant IV = 20 New Members
100% of Goal = 130 New Members per Month!
Your Expected New Member Totals Per Month
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OK, I’ll buy that…However, let’s assume that you only hit 50% of you goals. With ½ of the
expected guests and ½ of the expected closing %, etc., you will still hit 65 New Members per month and you are on your way to your $54,000
EFT goal!
Hey! Give me a break, we’re just getting started!
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Let’s Recap!
Increased guest
traffic=increased
membership sales
Guest PassesLead Gathering
Cooperative PromotionsLead BoxesPromotions of the month
Business of the MonthCorporate Outreach
and B2B
Universal Advertising–($$You Buy It!$$)
Referrals, Referrals, Referrals, & MAP Parties
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$1,000,000 Contempo
Spa!!
You can do it!
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““ THE ONLY PEOPLE WHO ACHIEVE THE ONLY PEOPLE WHO ACHIEVE MUCH ARE THOSE WHO WANT MUCH ARE THOSE WHO WANT KNOWLEDGE SO BADLY THAT THEY KNOWLEDGE SO BADLY THAT THEY SEEK IT WHILE THE CONDITIONS SEEK IT WHILE THE CONDITIONS ARE STILL UNFAVORABLE. ARE STILL UNFAVORABLE. FAVORABLE CONDITIONS NEVER FAVORABLE CONDITIONS NEVER COME.” COME.”
-CLIVE S. LEWIS-CLIVE S. LEWIS
What’s More Important…You Gotta What’s More Important…You Gotta do It!do It!
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Wishing You All A Greater Tomorrow
““ There is no medicine like hope, There is no medicine like hope, no incentive so great, and no no incentive so great, and no tonic so powerful as expectation tonic so powerful as expectation of something better tomorrow!”of something better tomorrow!”
Orison Swett Orison Swett MardenMarden
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Our New Business Model
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“If you don’t fulfill your own joy with work-life plan, one
day you’ll wake up in a special kind of hell,
where everyone is happy but YOU.”
Do something You Love, Never Work a Day in Your Life
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“The system works…
If you work the system.”
- Macrae Ross
The System
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DAY 2:Management Success- 9 to 5
25 Strategies
16 Things to Teach Your Staff
Leadership Skills Sets
Hiring the Best
Train the Trainer
Multiunit Management “MUM”
J.P’s Thoughts on Management
10 Truths for the Boss
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The Power of Attitude
http://www.powerofattitudemovie.com/
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Secret of the Spa Business
1) Sign someone up
2) Never let them quit
3) Have them bring in one friend
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The Test of a great manager is results. Management is knowing
1st, then performance.
A great franchisee must be a great manager of people .
In our new Contempo Spa Model, an absentee
franchisee won’t cut it!!
Great Management= Great Results
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1. Management is a DisciplineAn organized body of knowledge
applied
2. Management is TasksEvery achievement of management is
the achievement of a manager. Every failure is a failure of a manager
3. Management is PeopleGood people, Good Results
Bad people, Bad Results
Great Management Takes Practice
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Every achievement then is the achievement of the manager through
people
Every failure is a failure of a manager through
people
“PEOPLE ARE YOUR GREATEST ASSET”
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Nothing Succeeds Like Hard Work
“Your Success is your own damn fault.”
-Larry Winget
http://www.youtube.com/watch?v=lNBiAn0L3NU
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“It’s called work for a REASON.”
Chapter 5
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25 Strategies Needed to Operate A Successful Planet Beach Contempo Spa
These Strategies will: Help create a fun, exciting atmosphere for management and staff to work it
Promote customer service—the backbone of any successful Contempo Spa
Build trust and respect between management and employees
Allow management/staff to do work that is challenging and meaningful
Give you the opportunities to develop and use your individual skills to the fullest extent
These strategies are a road map that your contempo
spa needs to follow to reach its desired destination—a
place where management, staff, and members will
flourish
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Strategy #1: Quality & Expectations
A. What is your definition of quality for Planet Beach Contempo Spa?
B. What are your expectations for your Planet Beach Contempo Spa?
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Strategy #2: Identify & Analyze
A. What are your operational expenses?
B. What are your salaries?
C. What are your debt sources?
D. What are your maintenance & repair expenses?
E. Do your membership sales meet your expectations?
F. Is your spa clean? REAL CLEAN!!
G. Is the equipment working?
H. Is your staff qualified?
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Strategy #3 Question Your Course
A. Why do we exist?
B. What do we want to be?
C. Review & modify business plan, if necessary.
Redefine strategic goal, if necessary
D. Generate new strategy to fulfill goals, if necessary
E. Implement new action plan, if necessary
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Strategy #4: Communication to Members
“Communication is the key to the hearts
of your membership”—Let
them know you!
A. Goals for Good Communication1. Friendly, positive member constituency2. Source of new member referral3. Reinstatement of inactivated or departed member
B. Communication Model1. Newsletter- monthly?2. Letters to members- Ambassador Program3. Survey your members once a year4. Posters and signs in spa5. Suggestion/comment box
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Strategy #5 Communication to Staff
A. Staff must feel and know the “pulse of the
membership”
B. Staff creates network—use it
C. Allow staff to be emissaries of management
D. Allow staff to communicate
E. Staff needs to feel a part of the total team
F. Staff is your best conduit from and to your members
G. Hold weekly meetings
“Find the wisdom for success by talking to the staff”
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Strategy #6 Communication to Management
A. Keep all management/franchisee informed
B. Put it in writing
C. Hold monthly accountability meetings with
staff and franchisees.
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Strategy #7: Service is JOB ONE!
Emphasis must be placed on excellent service
A. Extra effort must always be made in correcting every reasonable problem in a reasonable amount of time
B. Always enforce a “make up for mistakes” policy
C. Service excellence must be our main focus
NOTE: Members can understand certain spa limitations, but they will
never understand poor service!!
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Strategy #8 Create a Great Staff
Your staff is your greatest capital investment
A. Ongoing staff training
B. Ongoing staff re-evaluation
C. Delegate responsibility
D. Don’t skimp on pay for quality help- FIND EAGLES!
E. People and hospitality sell and retain memberships
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Strategy #9: The Brass Ring
“Let Staff reach for brass ring.”
A. Give staff freedom and responsibility to be
creative in their area of specialty
B. Establish goals, then reward for excellence
C. Support and help in achievement of goals
D. Everyone must be in the race!
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Strategy #10: Leadership“Staff, franchisees, and members
need to feel someone knows what they are doing and why”
A. Develop a written game plan.
B. Provide confident and definite leadership
C. Exude confidence with passion
D. Be firm, yet compassionate
NOTE: You must be able to lead, follow, or get out of the way! The strongest leaders do so by example.
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Strategy #11: Expenses vs. Programs“You can’t expense your
way to profitability”
A. People sell memberships
B. People retain members
C. Expense cutting is a reasonable strategy (especially is expenditures are unwarranted, frivolous and excessive)
D. Expense cutting will not yield profit without new production goals
E. The only expenses you an control are Payroll & Advertising
DON’T CUT YOUR THROAT!
NOTE: Any program expense is appropriate as long as it leads to profitability and is always within budget
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Strategy #12: Clean it!“Your spa must be clean—
enough said—CLEAN IT!!”
A. The cardinal rule…not doing so has
ruined many a good spa!
B. The spa MUST be pleasant,
comfortable, bright, and smell good at
all times!
C. Lack of cleanliness is a controllable
objection to new sales and retaining
your members
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Strategy #13: Preventive Maintenance “PM”
A. It is imperative that everything
works
B. Preventive maintenance will
decrease equipment down time
C. Create maintenance log book
and follow up
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Strategy #14: Maintenance
“Out of order is ‘out of order’”
A. Nothing is out of order—it’s under repair!
B. Everything breaks down sometime.
However, staying broken can break you.
C. Fix it fast! Do it now!
REMEMBER…IT’S “UNDER REPAIR”
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Strategy #15: Do Business with Integrity
A. Give the buyers confidence that they will
get and are getting what they paid for
B. Don’t ever promise what you know you
can’t deliver
C. Don’t wheel and deal on prices.
Price Integrity is a MUST!
D. Stay consistent to your promotions
E. Be consistent with consistency
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Strategy #16: Reports & Records“Reports and records are
NOT a waste of time”
A. Periodic reports from all divisions of the spa provide the information to enhance what is working and alter what is not working.
B. Financial reports are most important
C. Budgets, P&L, cost of goods, marketing, forecasting, etc.
D. Retail Profit centers are cost centers, too! Watch Your Margins.
E. If you do it, track it!
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Strategy #17: Phones & Headsets…How Many??
A. To be a successful spa business,
TWO computers are as
necessary as spa equipment
B. THREE phone lines plus fax
machine Remember, you’re in a
sales driven business
C. Headsets & walkie talkies create
more efficiency & effectiveness
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Strategy #18: Spending“Spending money on needs, not desires”
A. Costs to provide quality, service,
and retention must be allocated to
increase profitability (i.e. Rules of 5
for Retention)
B. On every expense, ask this question
— “Is this necessary?”
C. Any expense that increases
profitability is ALWAYS within the
budget, and thus a good expense
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Strategy #19: Public Relations “PR”“Public relations- a cheap
means to an end”
A. Communicate with the market place without paying for it.
B. Volunteer for local paper columns on health, stress reduction, and wellness. Also radio and T.V.
C. Get involved with charity groups, etc.
D. Get involved with health fairs, etc.
E. Distribute news releases regularly
F. Remember 80% of all P.R. is Planted!
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Strategy #20: Marketing & Advertising“The purpose of advertising & marketing
is to drive in more business that you can lose by the mistakes you make”
A. Create a marketing plan and launch it.
B. Create a marketing budget and stick to it.
C. Do what works- test everything.
YOU MUST ADVERTISE FOR INCREASED BUSINESS OR
ADVERTISE YOUR SPA FOR SALE
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Strategy #21: Membership Sales“Members don’t just
happen. You have to create them one at a
time”
A. Ongoing membership sales & retail
training is a must.
B. Provide an environment for your
membership sales & referral
systems to flourish
C. Reward positive membership sales
when goals are hit and surpassed
$$BONUSES!! $$
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Strategy #22: Get Organized“The organization must be organized!”
A. Create a “Schedule for the Day” program
for everyone—use the “5 Most Important
Things to Accomplish” rule.
Accomplishment List Not a To-Do List!
B. Inspect what you expect. Create a system
of accountability
C. Trust, but verify
D. Follow up and follow through
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Strategy #23: Time Management“Rome wasn’t built in a day”
A. With proper time management,
positive results should be realized
B. Set time lines with realistic
expectations – S.M.A.R.T.
C. Delegate with time accountability
D. The request and promise system
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Strategy #24: Continuing Education
“It’s what you learn after you know everything that counts”
-John Wooden
A. Create a continuing education program- knowledge builds confidence in people
B. You must know what’s going on in our industry
C. The great aim of education is action, not knowledge
D. Knowledge= Information= Power= Success $$$
E. Attend Planet Beach Contempo Spa annual convention and continuing educational courses.
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Strategy #25: Attitude is Everything
“Any act facing us is not as important as our attitude toward it, for that determines our success of future” -Norman Vincent Peale
A. Positive attitude will breed positive results- the reverse is also true
B. Your overall positive spa attitude will be the No. 1 reason for your overall spa’s success- the reverse is also true
“You are searching for the magic key that will unlock the door to the source of power and yet you have the key in your own hands, and you may use it the moment you learn to control
your thoughts”
-Napolean Hill
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The First 16 Things You Teach Your Staff
1) The customer is always first in everything we do. Everything starts and ends with the member
2) Never say, “It’s not my job.” Try everything you can to help the member
3) Make members feel good about you, not just going to the spa. Learn the member’s names and a little about them
4) Do things for the member that you don’t get paid for. Give the member the extra touch that makes them feel special about belonging to your spa
5) Know our competitor’s spas better than he does. We can’t outsell the competition if we don’t know anything about them
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The First 16 Things You Teach Your Staff
6) Be early for everything. Being late makes a statement about you as a person and the worth of the person you are supposed to meet
7) Never bad mouth a member, a fellow staff member or the competition
8) Dress and groom yourself as if you’re the actual product we are selling
9) When it’s time to go home, talk to one more member and do one more thing nobody else would think to do
10) If you stay in the shower a long time in the morning because you don’t look forward to coming to the spa, find another job or help make this place an enjoyable place to work
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The First 16 Things You Teach Your Staff
11) Stay out of the office and away from the counter as much as possible. We don’t make money sitting in an office but from providing the best customer service in the area
12) Always tell the owners/managers the good news and the bad news you head
13) Never, ever back off of your goals
14) Listen, listen, listen to what the member is really telling you. Complaining members aren’t the problem; it’s what they’re complaining about that we need to understand
15) Strive for constant improvement in everything you do at this spa
16) Everything we do starts and ends with the member
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6 Traits of A Successful Spa 6 Traits of A Successful Spa DirectorDirector
1) STAYS FOCUSED-Stays focused on the project at hand no matter what is going on around you
2) PAYS ATTENTION TO EVERY DETAIL- Be precise!
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Details, Details, DetailsDetails, Details, Details
Robert De Niro is a Las Vegas Owner/Operator working for the mob
“I want an EQUAL number of blueberries!”
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6 Traits of A Successful Spa 6 Traits of A Successful Spa DirectorDirector
3) FOLLOWS UP - Has great follow up & follow through
4) CONFLICT RESOLUTION- very important part of the entrepreneur’s job description
5) WILLING TO GROW & LEARN- Spa Directors must be flexible to changes
6) EDUCATION & TRAINING - Spa Directors must be a great educator/teacher
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EDUCATION IS KEY!One survey states that for every dollar spent on employee training, the employer can expect a $30 return. People on your team who resist training are narrow-minded about their future and what they currently know. The business will eventually grow past their abilities. Everyone can only know so much. You can only apply what you know. If what you know is not enough to make your business grow, then you need new people who are willing to learn.
Willing to Grow and Learn
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“To be what we are and through education to become
what we are capable of becoming, is the only end of
life.”
-Robert Louis Stevenson
Education Raises the Bar
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“The teacher, if indeed wise, does not bid you to enter the house of their wisdom, but
leads you to the threshold of your own mind.”
-Kahil Gibran
Spa Manager = Teacher
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Training- Training- TrainingOngoing sales and motivational training to spa
managers and consultants.
Ongoing training on service excellence, phone excellence, and great customer retention
Ongoing motivational and communication training for the entire team
Ongoing training on spa operations, management
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“You cannot teach a person anything. You can help them
discover it within themselves.”
-Albert Schweitzer
Teaching, Training, Educating.
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What’s the true difference between
Teaching?
Training?
And Educating??
Teaching, Training, Educating.
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Train the Trainer
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You can’t train a duck to hunt like an eagle!
You can’t teach someone to smile.
You can’t teach someone to want to serve.
You can’t teach personality.
Most importantly, you can’t teach
someone to hunt like an eagle.
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What we can do however is hire people who have those
qualities and teach them about our services and our culture.
Ask yourself this question. . .
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Am I hiring a duck thinking it will
become an eagle?
I can honestly say that asking this simple question, you will save yourself from making
the most costly hiring mistakes. http://youtube.com/watch?v=xAsXtDKdU0Q
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The Duck
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Training the Trainer
1. Do things in a way that makes others feel that they did them.
2. If you don’t trust, you’ll never be trusted.3. Mules can often be lead where they can’t be driven.
Lean and teach like you would like to be led and taught.
4. Succeed quietly and know that this success is really because of their efforts. Loose the ME in search of the WE.
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Training the Trainer cont. . .
5. The words and teachings we say really mean very little – it’s our energy and passion that transforms.
6. When your training your people, you must be 100% WITH your people.
7. Who is Malcom Knowles? Father of Adult Training.
8. He wrote the famous book on How Adults Learn.
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How Adults Learn
Adults have a wealthy of experience and a great deal to contribute. Successful trainers build on this hard earned experience
Adults will devote energy to learning those things that they believe will help them perform better. Adults NEED W.I.I.F.M.
Adults are more responsive to motivations such as increased self esteem rather than higher salaries.
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You cannot teach a person anything. You can only help them discover it within themselves. -Galileo
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How do you begin?
Opening and introduction overview. WIIFM Learning objectives: List all learning content. Break
objectives down into smaller more achievable segments. Arrange the learning objectives into logical learning
sequence. Teach by doing. We retain information/knowledge when
you engage participation. You need feedback. It’s not important what you say – it’s
very important that they understand what you are saying.
TELL – SHOW - DO
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How do you begin? (cont. . .)
Summarize training and gain commitment to action.
1. Memo to themselves regarding two performance improvements they will make.
2. Collect memos and share with team.
3. Use memos for future training – “DID I DO IT?” Send them off with an encouraging word and
challenges.
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“OPPORTUNITYISNOWHERE”
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Prepare to Succeed
A. Prepare your training environment.
B. Prepare your people.
C. Prepare yourself.
D. Practice – Practice - Practice
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Are you a Trainer or Facilitator?
A trainer - conducts a training session, course or program.
A facilitator – allows people to assume responsibility the their own learning.
You Must Be BOTH!
EXPERIENCE is the best Teacher!
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The Training Myth – O.J.T.
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Training Strategies and Tips
Practical Application (Real World) Use Actual Examples (Role playing & Simulations) Build in practice opportunities (Design training for
practice and feedback. Poll expectations (Build in W.I.I.F.M) Transfer training to O.J.T. They must take ownership of info. (They must tell
you how they will implement what they have learned)
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Training Strategies and Tips (cont. . . )
They must create self reminders (memo to themselves)
Action plan from each person. They must hold themselves accountable and to the TEAM.
What are they going to do on the job as a result of this training!
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Learning vs Performance
Learning experiences develop skills and knowledge so people can perform.
Performance occurs when people apply this skill and knowledge, accomplishing results.
The great aim of education is not knowledge – but action!
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The E Myth. Most entrepreneurs are merely technicians with an entrepreneurial seizure. Most entrepreneurs fail because you are working IN our business rather than ON your busniess.
- Michael Gerber
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WHAT IS THE BENEFIT OF TRAINING?
Training can provide many benefits. You, your customers, your employees, and your spa have much to gain-and nothing to lose-with a high-
quality training program.
Which of the following
will benefit your spa?
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Saving Money-If employees know how to do work the right way, costs will be lower; profits will be higher
Saving Employees-Employees who know how to do work according to their leaders expectations will be less anxious and turnover will be reduced
Saving Customers and Making New Ones-Customer are happy when they receive the products/services they expect.
Saving Time-A trained staff will promote efficiency. Both the manager’s time and that of employees will be saved.
Reducing Staffing Concerns-Trained employees are better prepared and more eligible for promotion opportunities.
Saving Relationships-Managers who show their concern for employees with quality training, helps motivate them and morale levels are likely to increase
*Give yourself an A+ if you checked all 6 boxes!
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W.I.I.F.M.
Trainer’s job is to demonstrate how training will benefit them. Trainers must properly explain when training and in return,
employees will want to be trained. Employees will participate in training activities and will receive maximum
benefits from their training experience.
There is an old saying, “If a trainee hasn’t learned, it’s because the trainer hasn’t trained.” Trainees who
understand the benefits they will receive from training will want to learn.
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Here are some examples of what your employees could achieve with proper training:
1. Personal knowledge that the job was well done
2. Wage/salary increase3. No anxiety about performance evaluations4. Fewer customer complaints5. Job enjoyment6. Promotion7. Freedom from on-the-job accidents8. Good first on-the-job experiences
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Here are some examples of what your employees could achieve with proper training:
9. Less stress10. Improved teamwork11. Respect/esteem from customers, peers, and boss12. Freedom from on-the-job boredom13. Less tiresome work14. Feeling of being a “professional”15. Knowledge of job security16. Participation in career development programs
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TRAINING
Definition of TRAIN - To cause to grow as desired.
The first step in becoming a successful trainer is to know your preferred style of training. Identify your training goals and
clarify what you need to learn. Always be prepared to make sure that you’re focusing on the desired solution or objective. By stating clear goals and objectives this with prevent you and
your team from heading in the wrong directions.
When training, always tell your employees what your training, and why Planet Beach operates this way, how it’s going to benefit them, and how it’s going to benefit the company as a whole.
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Walk the Talk
“We must be the change we wish to see in the world” -Gandhi
A true trainer will always lead by example. As a trainer you set the tone of the salon. The single most important way to ensure that
your employees become the best, is to “WALK THE TALK.” Set values, talk values, practice values, and demonstrate values. Your employees make judgments based on what they see you do rather than what they hear you say. Make sure your actions demonstrate
what you say.
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Albert Schweitzer
The best 3 ways to teach is by
1. By Example
2. By Example
3. By Example
“Example is Leadership.”
“Example is not the main thing in influencing others, it's the only thing.”
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Walk the Talk
Employees will believe you when you model the behaviors that you want them to practice. If you want your employees
to give your guest a great tour and ask all the power of questions, then show them how to give a great tour by
asking all the right questions. If you want them to be more organized, then you must be more organized. If you want
your employees to show up at work on time, and you start a meeting late or show up for work late, that’s saying it’s ok not to be on time. Your responsibility is to begin your
own discipline.
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Preparation
“Failure to prepare is preparing to fail” Coach John Wooden
There are a wide range of policies, procedures, activities, and other concerns that should be
addressed during the training process. Employees should not be trained to do a job until the correct way to do the work has been defined. This step is often omitted (What is there to plan? We do the
work every day and should be able to show someone how to do it. Time saved in planning can
be spent in training!) Failure to plan for training activities is a sure way to have your training ef for ts fail!!
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Preparation
Plan for training, a Trainer must! Here are several steps you can follow:
Print 2 training itineraries, one for your records and one for your employees to write notes on.
Choose what topic on the training itinerary you will be training your employees on.
Develop an agenda for 3 days of training and 1 day for a recap of training. (Remember to include breaks)
Research the topic you will be training on. Write notes next to the topic your going to train on.
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Communication for Results“Nothing in life in more important than the ability to
communicate effectively” Gerald Ford
As a trainer you need to know whether you have communicated effectively by what is understood by your employees. Good communication is the most
crucial element to sustaining creativity and motivation in the work place. When you do not communicate effectively, there will be limited
understanding.
TELL – SHOW – DO!
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Communication for Results
Communication is based on more than just spoken words and dictionary definitions. Nonverbal
communication is the part of the message that the person communicates in addition to the words that he or she speaks. Research, in fact, indicates that 7% of communication consists of the words we use (verbal), while 93% of communication is based on how we say those words, and how we look when
we say those words.
Passion – Persuades!
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Verbal Messages
The words we choose are only a minor part of the complete communication process.
They can still either enhance or stop effective communication from occurring.
Great communication takes
everything you’ve got!
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Non-verbal Messages
They consist of vocal elements (tone, non-word sounds such as sighs, rate of
speaking, emphasis, etc.) and visual elements (body language, facial
expressions, and gestures.) Remember that this is 93% of the entire communication
message!
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Below are some key tips that can increase the odds that you are heard:
Avoid blaming Beware of negative nonverbal messages Use concise, clear messages Seek feedback Ask questions and listen Present training material with enthusiasm Tell trainers they will have to feed it back. Always remember Tell – Show – Do!
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Signs when your communication is off-track
Your employees are bored and uninterested. They continue to do what they have always done without change in their behavior.
Your employees are confused and cannot train you on what you just said. They have no idea about what you said and what you want.
Your employees are overwhelmed. They are overwhelmed by too much information coupled with a lack of clarity and direction.
K.I.S.S. – Eat an elephant one bit at a time
To be an outstanding trainer who produces high performance, you must communicate with accountability!
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Signs when your communication is accountable
Employees are inspired and go into action to make things happen.
Employees re-create your message for others. They use their own words to restate what you want and the timeframe you want it.
Your employees know what’s important and have a clear understanding about their priorities.
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Effective Training Summary
A good trainer/educator must believe that:
a. People learn best when they are active rather than passive.
b. People learn best when challenged rather than talked at.
c. People learn best when involved rather than observing.
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TELL – SHOW – DO
Learning is NOT a Spectator Sport!
a. We tell them & then show them
b. Participants will then do the training back to us = The “DO!”
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Team Training:
Training with a partner is one of the most effective and enriching opportunities that will produce the best damn
training that the participant has ever had!
NOTE: “Two Heads are Better than One!”
Shows that you know your stuff and this is the
Gospel of the way it should be!
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Learning InsuranceK.I.S.S.
Learning Insurance mostly comes down from how you create a structure for the best learning experience:
The React (mnemonic) “Training the memory and assisting the memory:
Relax – and establish an informal atmosphere.
Encourage - to take control of their own learning
Accept - participants where they are.
Communicate – openly and honestly.
Tap – participants for their ideas.
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Repeat. . . Repeat. . . Repeat!!!
W.I.I.F.M
W.I.I .F.M
W.I.I .F.M
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Top 10 Tips for Outstanding Trainers
1. Be flexible. The unexpected can be your greatest moment.
2. Be well prepared. Back-up props, back-up activities, back-up agenda, back-up everything!
3. Leave your ego outside the room. Follow the flow of the group even when it goes off your course.
4. Tell personal stories that are true and make a point.
5. Ask outstanding questions (so that true learning and reflection abound.)
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Top 10 Tips for Outstanding Trainers
6. Anticipate resistance, deviations, and mistakes. How you handle these impacts the whole day and are usually where the learning takes place.
7. Pause often. Whether after a sentence, after an activity, or after a debriefing, allowing your participants to think and reflect. This is the time when they come up with their own solutions and lessons.
8. Take risks and new things. We teach what we need to learn.9. Involve the whole group. Design the learning so that the
learners focus on themselves and each other. You create the learning experience and then step back.
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Top 10 Tips for Outstanding Trainers
10. Keep the day fun, fun, fun. And always close with high impact.
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Top 10 Worst Mistakes Trainers Make
1. Forgetting to check the facility ahead of time for lighting, sound, audio-visual, room temperature, props, and overall participant comfort.
2. Starting late OR WORSE. . . running overtime.
3. Talking too much.
4. Forgetting break times.
5. Not laughing at yourself when the unexpected happens. And they will happen.
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Top 10 Worst Mistakes Trainers Make
6. Giving unclear directions.
7. Not smiling.
8. Not involving participants.
9. Not reading the audience, and therefore not knowing when to change strategies or pace.
10. The all-time worst mistake – not being real! Passion is everything! People remember the feeling they had with the trainer long after the content.
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“OPPORTUNITYISNOWHERE”
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Spa Director Skill Sets Big Picture Perspective
Company Philosophy
Company Standards
Team Hiring
Team Coaching
Time Management
Decision Making
Marketing and Sales
Member Satisfaction
Owner/Franchisee Relations
Promotion Drive
Communications Flair
Planning Capability
Organizational Know-How
Staffing Expertise- Hiring & Training
Controlling – Must be a great control
Ability to Lead & Motivate
Belief in Yourself
Vision
Positive Attitude
Dedication
Willingness to Take Initiative/Risks
Ability to communicate
Inspirational
Consistency
Goal Oriented
Persistence
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Spa Directors : Focus
1) Spa Directors & Assistant Spa Directors’ #1 job is PRODUCTION
2) Production can only be brought about with a total TEAM EFFORT
3) Operational system will bring about Team Effort
4) You need total operational environment with your staff
5) Facts & Figures give a clear picture on what is going on…
Accountability & Inspect what you Expect
FACTS & FIGURES DON’T LIE…
1) Work backwards, trace everything back to the source.
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How to Be a Great Spa Director
1. Be a good and willing communicator
Great bosses share information, ask employees opinions, and encourage employees to take initiative
2. Specify job-performance expectations
A good boss doesn’t hesitate to tell an employee about a problem as soon as it becomes apparent
Schedule brief meetings with each individual under supervision once a month
3. Make contact daily with as many team members as possible
Visual recognition counts
Give employees information about the company performance, plans, and objectives that affects them.
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How to Be a Great Spa Director4. Loosen the reins
Ask the right questions & make sure they understand. If mistakes are made, they make sure everyone learns from them.
5. Have a sense of humor & admit mistakes
Have a consistently upbeat style with an obvious sense of humor & an ability to joke about oneself
6. Provide direction & strive to be consistent
Formulate a plan of operation and stick to it
7. Look for ways to improve & to learn from others
Try to avoid the mistakes your bosses have made and be open to change
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General Principles for Working With Your TeamWhen you’re making a change
of direction with your staff, you need to keep them
focused. Let them know that:
1) Change is going to happen. What we did before is no longer acceptable
2) Expectations are set. You now have a basic level of performance to live up to starting right now
3) Nonsense is OUT. Back stabbing, member bitching, late for work, absenteeism days are now over
4) The work ethic and the customer are IN. On-time for work is 15 minutes before the shift starts
5) People are going to enjoy working in this spa
6) We will be tough but fair
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Special Note:
Always recognize the heroes first in every meeting. Praise doesn’t cost you anything and giving the performers attention puts extra pressure on the non-performers.
Find Ways to Praise
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Motivating the Low Guys
oEvery staff has a couple of people at the bottom that are usually a little more difficult to keep motivated
o We should always recognize the winners but there must be consequences for failure
oMost of the common mistakes owners make when trying to get the staff moving comes down to basic mistakes in over-all management
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3 Secrets of the One Minute Manager
Secret #1: One Minute Goals
Secret #2: One Minute Praising
Secret #3: One Minute Reprimanding
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Secret #1: One Minute Goals
- Agree on your goals
• Make sure employees understand their responsibilities and what they are accountable for
- See what good behaviors look like
- Write out each goal on a single sheet of paper
- Read and re-read each goal, which should take only a minute
- Take a minute every once in a while out of your day to look at your performance
- See whether or not your behaviors match your goal
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-Tell people UP FRONT that you’re going to let them know how they are doing
- Praise people immediately
• “Help people reach their full potential; Catch them doing something RIGHT.”
-Tell people what they did right- Be Specific
- Tell people how good you feel about what they did right & how it helps the company
- Stop for a moment of silence to let them “feel” how good you feel
- Encourage them to do more of the same
-Shake hands or touch people in a way that makes it clear you support their success
Secret #2: One Minute Praising
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-Tell people before hand that you’re going to let them know how their doing
1st half of Reprimand:
- Reprimand people immediately
- Tell people what they did wrong- Be Specific
- Tell people how you feel about what they did wrong
- Stop for a few seconds of uncomfortable silence to let them know how you feel
2nd half of Reprimand:
-Touch them in a way that lets them know you are honestly on their side
- Remind them how much you value them
-Reaffirm that you think well of them but not their performance in this situation
- When reprimand is over, its OVER.
Secret #3: One Minute Reprimands
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DELEGATE, DELEGATE, DELEGATE!!!DELEGATE, DELEGATE, DELEGATE!!!
You must make sure the right things get done the
right way at the right time by the right people.
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Team Motivation
To find out what type of leader you are, ask your employees:
“Is it fun to come to work here each day?”
Being fun is not the only point, but it does greatly affect the motivational
factor!
Spas should be fun places to work!
Spas are only as exciting as you,
the owner or manager make
them!
Once you establish goals and give
people direction, their motivation should increase
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P assion is
contagious, pass it on!
Passion
http://www.youtube.com/watch?v=gKo3mMKu0OA
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MotivationMotivation
A Good Leader Can Motivate Others By:
- showing a passion for what they are doing
- being able to communicate clearly with others
- encouraging others to get involved in decision- making
- being a good role model for the ideas that they are advocating
- clarifying objectives
- clearly setting out the benefits to all parties of decision that are made
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"The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint enough to keep from meddling with them while they do it.“
--Theodore Roosevelt
“There is NO such thing as a single-handed success: When you include and acknowledge all those in your corner, you propel yourself, your teammates and your supporters to greater heights.”MANAGERS THAT DON’T
DELEGATE USUALLY FAIL!
Pick The Best Teammates!
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One Minute Manager Meets the Monkey
A busy manager is busy because he is doing the staff’s work!
Don’t take on a problem if it isn’t yours!
MONKEY= The next move to be taken in any problem or situation (whoever has to make the next move owns the monkey!)
For every monkey there are 2 parties:
1) One to work it
2) One to supervise it
If, as a manager, you take on everyone else’s monkeys, a role reversal will occur: you will be working it and your staff will
be supervising it!
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One Minute Manager Meets the Monkey
“Tasks are like monkeys. If you don’t tend to them, or if you have too many, or worst of all if you take on someone else’s, they get out of hand and give you aggravation & make your life miserable.”
You must see the monkeys for what they are and actively work to
keep other people’s monkeys off your own
back in order to succeed
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Four Rules of Monkey Management
#1: Describe the Monkey
#2: Assign the Monkey
#3: Insure the Monkey
#4: Check on the Monkey
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Rule #1: Describe the Monkey
• The dialogue between the boss and subordinate must not end until appropriate “next moves” have been identified and specified
• Rationale:
- When people realize dialogue won’t end until next moves are specified, they will plan carefully when approaching you
- It gives you motivation by clarifying the situation, identifying thefirst step, and breaking it into bite size pieces.
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Rule #2: Assign the Monkey
• All monkeys shall be owned and handled at the lowest
organizational level consistent with their welfare
•Rationale:
- Staff have more time, energy, and knowledge to handle monkeys
- Staff are closer to the work and are in better position to handle the monkey.
- Keeping monkeys off your back is the only way to gain discretionary time
- Retain monkeys only you can handle
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Rule #3: Insure the Monkey
• Every monkey leaving your presence on the back of one of your people must be covered by one of two insurance policies:
1) Recommend, Then Act
2) Act, Then Advise
•Rationale:
- This balances your staffs need for freedom and your ability to control
- Level 1 is when there’s a risk of an unaffordable mistake
- Level 2 is when you’re sure that your staff can handle it on their own and inform you afterwards
- Aim to practice hands-off management as much as possible and hands- on management as much as necessary.
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Rule #4: Check on the Monkey
• Proper follow- up means healthier monkeys. Every monkey should have a check-up appointment
•Rationale:
- Checkups are to find opportunities to praise your staff
- Make sure monkeys are healthy and take corrective action if necessary
-Staff should inform you when monkeys are sick
- During checkup, if nothing was done, discuss why nothing was done.
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“You seldom accomplish very much by yourself. You must get the assistance of others.”
- Henry J. Kaiser
Lose the ME in Search of the WE
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The 3 Minute Management Course
LESSON 1
A man is getting into the shower just as his wife is finishing her shower, when the doorbell rings. The wife quickly wraps herself in a towel and runs downstairs. When she opens the door, there stands Bob, the next door neighbor. Before she says a word, Bob says, “I’ll give you $800 to drop that towel.” After thinking for a moment, the woman drops her towel and stands naked in front of Bob. After a few seconds, Bob hands her $800 and leaves. The woman wraps back up in the towel and goes back upstairs. When she gets to the bathroom her husband asks, “Who was that?” “It was Bob, the next door neighbor,” she replies. “Great!” the husband says, “did he say anything about the $800 he owes me?”
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If you share critical information pertaining to credit and risk with
your shareholders in time, you may be in a position to prevent avoidable
exposure.
Moral: Lesson 1
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Lesson 2
A sales rep, an administration clerk, and the manager are walking to lunch when they find an antique oil lamp. They rub it and a genie comes out. The genie says, “I’ll give each of you just one wish.” “Me first! Me first!” says the admin clerk. “I want to be in the Bahamas, driving a speedboat, without a care in the world.” Puff! She’s gone. “Me next! Me next!” says the sales rep. “I want to be in Hawaii, relaxing on the beach with my personal masseuse, an endless supply of Pina Coladas, and the love of my life.” Puff! He’s gone. “OK, you’re up,” the genie says to the manager. The manager says, “I want those 2 slackers back in the office after lunch.”
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Moral: Lesson 2
Always let your boss have the first say!
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Lesson 3
An eagle was sitting on a tree resting, doing nothing. A small rabbit saw the eagle and asked him, “Can I also sit like you and do nothing?” The eagle answered: “Sure, why not?” So the rabbit sat on the ground below the eagle and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it.
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Moral: Lesson 3
To be sitting and doing nothing, you must be
sitting very, very high up.
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Lesson 4
A turkey was chatting with a bull. “I would love to be able to get to the top of that tree,” sighed the turkey, “but I haven’t got the energy.” “Well, why don’t you nibble on some of my droppings?” replied the bull. “They’re packed with nutrients.” The turkey pecked at a lump of dung, and found it actually gave him enough strength to reach the lowest branch of the tree. The next day, after eating some more dung, he reached the second branch. Finally, after a fourth night, the turkey was proudly perched at the top of the tree. He was promptly spotted by a farmer, who shot him out of the tree.
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Moral: Lesson 4
Bullshit might get you to the top, but it won’t
keep you there!
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A Manager’s Daily Productivity Schedule
1) Use my day planner religiously. It’s my lifeline.
2) Not leave work until tomorrow is thoroughly planned
3) The first thing in the morning, physically inspect the spa making sure everything is in excellent condition and clean
4) Make memos on what needs to be done and follow through with corrective action. I realize that the number one disease is an unclean spa which affects everything from sales to customer service
5) Inspect daily production from previous day & red-flag improper productivity. Also will heck to see how today’s productivity is set up (everything from goals, sales, cleaning, challenges, etc.
I, MANAGER, WILL:
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6) Take a lunch or dinner break (ALWAYS)
7) Work on business aspect of the spa (i.e. how much are we spending, bringing in, etc.)
8) Get into the “up-system” and become a Gross Monster
9) Ensure al staff training is done before 4 PM
10) Look at end-of-day production (sales, cleanliness, retail sales-new APT’s, etc.)
11) Develop plan for tomorrow and do not leave until the plan is completed
12) Go home and get a good night’s rest. You’ve had a very productive day!
A Manager’s Daily Productivity Schedule
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Multi-Unit Manager
“Keep my words positive:Words become behaviors.
Keep my behaviors positive:Habits become my values.Keep my values positive:
Values become my destiny.”-M.K. Gandhi
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Stage 1: Brand Ambassador
Culture Keeper: standard bearer who models the way Authentic and disciplined Aligned with company goals Runs it like they own it Habitual Consistency Brings Energy (doesn’t take it away) Embraces technology Clear grasp of the non-negotiables Meets financial goals
“Does the right things and the right things right.”
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Stage 2: Talent Scout
Establishes a talent strategy Strengthens the Bench Prunes the Deadwood Hires s-l-o-w, fires fast Builds their own replacement Identifies tier talent daily Recruits to cultural fit, talent gaps, and
knowledge Knows the value of inside-out & outside-in
expertise Hires noticeably better people Meets financial goals
“Stop ‘managing’ people. Get better people.”
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People Power: Staffing For SuccessPeople Sell & Retain Members!
Not the Facility!oYou must separate myth from reality
oManagement skills don’t come as a gift from the heavens; they mostly come hard won!
oIt is impossible to manage productivity without hiring EFFECTIVELY
oManagers who consistently make poor hires- ULTIMATELY FAIL!
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Have you ever heard these tired complaints??
“I can’t get good help.” “I can’t keep good
people.”“Nobody cares
about customer service anymore.”
“I can’t afford to hire the good
people”
“These kids today…they just don’t
have it.”
“EAGLES DON’T FLOCK. YOU HAVE TO FIND THEM ONE AT A TIME.”
- H. Ross Perot
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Your #1 priority toward your ultimate overall success and/or failure is in recruiting champions!
EAGLES NOT TURKEYS!!
We are in the hospitality & participation business!
You can’t train people to SMILE to give off Sunshine!
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People can have all these great qualities:
o Time Managemento Organizational Skillso Energyo Motivationo Determinationo Confidenceo Reliabilityo Honesty
o Integrityo Prideo Dedicationo Analytical Skillso Goal Orientationo Profit Orientationo Efficiencyo Procedure Oriented
Although very important supportive professional behaviors, these things MEAN NOTHING IF THEY
CAN’T SMILE AND GIVE OFF SUNSHINE!
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You can’t use this person in a position that requires customer & member contact!
Just wish them well and good luck on their continued job search.
What you need is Champions of Hospitality!
Contact Sport
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Where Do You Find Them? Your main assignment is to CONSTANTLY be looking for
smiles, service hospitality, and sunshine
Even when you are fully staffed, never be satisfied. KEEP LOOKING!
And when you find it, you will say to this person, “You were terrific! If you’re ever looking for another job please give me a call.” Give your business card and make sure you write on it, “You’re terrific! Give me a call. I could have a great future for you!!”
Look everywhere where customer service & hospitality take place—Be relentless and never—never stop.
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YOU HAVE TO MINE FOR DIAMONDS!
YOU HAVE TO DRILL FOR OIL!
YOU HAVE TO PROSPECT FOR GOLD!
YOU HAVE TO SEARCH FOR CHAMPIONS!—EAGLES!!—SUNSHINE!!
Search, Search, Search!
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People that are caring, you see it in their SMILE, hear it in their VOICE, and feel it in their WALK
You know that they love the moment.
Happiness is something they have created for themselves.
They are gifted in the art of relating.
They are FRIENDLY! Friendly makes sales & generating repeat business and PROFITS!
S.W.E.L.L.
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THEN MAKE HIRING EAGLES AND TRAINING THEM YOUR HIGHEST
PRIORITY!
Ducks vs. Eagles
You can’t send a duck to eagle school
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Leadership: Through the Eyes of An EagleLeadership: Through the Eyes of An Eagle
1) VISION- An eagle’s eyes can see great distances-Your vision must guide and lead towards the goal
2) EAGLES NEVER EAT DEAD MEAT- As a leader you must go where the action is- You must find lively people to grow your business
3) LOOKS FOR & FLIES INTO STORMS- To leaders, storms (challenges) are tools used for your development
4) VERY GENTLE AND ATTENTIVE TO THEIR YOUNG- You must teach and train your organization
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Eagles vs. Ducks
You can’t afford ducks- they are too expensive!
WHY???????
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Reward people based on accomplishment…rather than
being a model employee.
Reward
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Everyone Must Be In The Race
http://www.youtube.com/watch?v=AhUhuDW_jOw
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RPart 1: Operations/ Communications
Creating Emotional Compensation
1. Policies and procedures
Does your staff know what is expected of them?
Employee handbooks/policy manuals, operational structure
Job Descriptions with W.I.I.F.M.
Philosophy or mission statements – How to Achieve These
Staff can’t meet or exceed expectations if they don’t know what the expectations are. These tools create clarity of communication
and a consistency in application
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2. Performance evaluations/assessments
Are yours scheduled?
Are they performed on time?
3. Employee Surveys
Perform occasionally or as often as you wish, but be certain you apply what you learn
Employee Suggestion box
Part 1 continued…
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4. Explain the “why” when delegating or giving instructions– “The Whole Picture”
The depth of understanding of the reasons behind an assignment is proportionate to the degree of quality realized in the final product.
5. Involve your staff in the process
Schedule all-staff meetings, and insist on attendance (once per month) minimum
Allows you to share company vision and plans, and more importantly, allows you to solicit input from them
Part 1 continued…
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6. Build Relationships with your staff
Schedule regular individual meetings, and keep them!
Know all you can about your spa employees-likes-dislikes-hobbies, etc.
Acknowledge employees’ contributions and validate their efforts
Go back to your spa and catch someone doing something right. Take a minute to praise them in public
Say you’re wrong when you’re wrong
Say “thank you” (always)
Part 1 continued…
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7. Develop an outstanding new employee orientation program & training
Make attendance a condition of employment & advancement, raises, bonuses, etc.
Use spa directors or outstanding front line as presenters
Create a video/visuals to keep attention—Use ALL tools
Part 1 continued…
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Part II : Education/Staff Investment
1. Provide educational opportunities for staff
Pay ½ of educational costs after courses have been successfully completed, ½ a year later
2. Provide educational opportunities for everyone
Outside seminars with sales & customer service in mind
Continuing education courses
Trade shows & conventions—P.B.C.S. Annual Convention, Advanced Training, etc.
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3. Spa Director Asst. Spa Director Training Programs
Bring in outside speakers on management/sales/retail, etc
Create a staff development training project/make greater responsibility the reward
Planet Beach Convention & Advanced Training School
Regional Training offered by P.B.C.S.
Part II continued…
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Part III : Recognition/Compensation/IncentivesReward performance ONLY,
not seniority!
1. Employee of the month/quarter/year
Team with a photo
Annual awards that all staff vote on: “Unsung Hero”, “Spa Consultant of the Year”
2. Individual bio boards (who they are & what position they hold)
3. Use membership trade extensively
Trade current members for travel, dinners, movie tickets, sporting goods for staff rewards
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4. Company functions/parties
Grab feast/Christmas/Birthday parties/Staff Appreciation night (once a month)
5. Earn free days off with pay
6. Earn vacation destination of their choice- etc.
Part III continued…
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Get Everyone in the Race!
$$ Rewards Bonus for Team Sales (score board)
$$ Rewards Bonus for Individual Sales Goals
Double commissions on Referral Sales!
Major Commissions on Elite Spa EFT Sales!
Part III continued…
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Biggest Mistakes Franchisees Make in Staffing1) Making commitments they can’t or don’t keep.
- Managers must develop credibility
- Once the staff and members can’t trust your word, you’re in trouble
2) Not establishing effective lines of communication
- Members and staff members need a forum to vent
3) Establishing unrealistic budgets
- Many owners spend until they can’t without any outline of a budget
- Unrealistic budgets put unrealistic expectations on the performance
4) You are only as good as your weakest link
- You must learn to delegate the jobs, give proper instruction, and then follow up
5) Hiring wrong the first time
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No business can do everything Even if it has the money, it will
never have enough good people.
NEVER-NEVER-NEVER stop requesting & searching for
eagles!
You Can’t Do Everything
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J .P. ’s Thought on Hiring & Keeping the Best People
1) Have a clear picture of exactly what you are looking for—the best qualities…IS IT AN EAGLE OR A DUCK?
2) Reward team members for doing a great job hitting & exceeding goals—not for getting close!
3) Demotivation = employees not knowing what is expected.—EDUCATE, EDUCATE!
4) Lack of growth in employees and production
“Doing very well on what does not need to be done at all!”
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5) Quality of trust. Employees free to make mistakes without being dumped on.
6) Create a great place to work = positive performance feedback
7) No false promises = never forget a promise: an employee will never forget!
Personal Integrity
8) Most important—training & instruction need to be constant.
“The only thing that gets people up is knowledge!”
The feeling of competence = great performance
J .P. ’s Thought on Hiring & Keeping the Best People
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Stage 3: Servant Leader
Knows employees are the first market Collaborator (P2P sharing) Thermostat not Thermometer Expert Listener Knows that “Everything Speaks” Shares the same realityExcellence reflex Customer advocate/sees operations through the
customer lens Meets financial goals
“My customer is anyone who isn’t me.”
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Customer Service
We are in the service business. In the business of serving people,
service can be either good or bad—it depends strictly on you!
Our duty is to provide an enjoyable atmosphere in the Contempo Spa
WITH SERVICE EXCELLENCE AS OUR GOAL!
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C.A.R.E.S. = RETENTION
Customers A re Retained by Excellent
Service
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C.A.R.E .
“It is one of the most beautiful personal rewards that no one can sincerely help
another without helping himself.”
-Ralph Waldo EmersonC
A
R
E
Character
Ability
CapableCompanion
Concern
AcceptanceAffection
Attitude
Ethical
ResourcefulResponsible
Rewarding
EnthusiasmEncouragement
Excellence
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Commitment to Quality & Excellence
Your commitment is to set service and excellence at a whole new level
for your Contempo Spa.
We seek to attract people who take pride in being and doing their best and being part of an organization with a reputation for excellence &
superior customer service
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Be Aware of the Needs of our Members
1. Recognition- “Hi!” & “Goodbye!”
- They have to hear their name. Give them BIG “Hello’s!” and “Goodbye’s!” by NAME
- Thank them for coming in and plant the seed of retention- “When will we see you again?”
2. Concern- Your concern for them must be genuine. Show your sincerity, in assisting them.
3. Patient- Be patient & humble as some people do not adjust to your organization as fast as others. They may need more encouragement. Be free with compliments & have a helpful, understanding attitude.
4. Leadership- You must project yourself to each & every member so they are eager to use your Planet Beach Contempo Spa. Show how much you believe in your product through your enthusiasm & knowledge.
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o Service is defined as doing more than the members would expect from you…SURPRSE THEM!
o Continually encouraging and convincing them to try to help themselves by listening to us and never giving up on anyone as a lost cause is what we mean by service
Service- An Ability You Will Have to Develop
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Ken Blanchard: Raving Fans
“The key to success is to create Raving Fans”
“Making people feel special is part of the process of creating
raving fans”
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Adherence & Retention
Drop- out rates for those beginning a tanning and spa program are alarming.
A Survey on… “Why customers quit” found the following:
-3% move away
- 5% develop other friendships
- 9% leave for competitive reasons
- 14% are dissatisfied with the product
- 68% quit because of an attitude of indifference toward the customer by the owner, manager, or some employee
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The Economics of Retention & Loyalty
o Keeping members drives profitability. Existing members cost less to reach, less to sell, are less vulnerable to attacks from competition, and buy more over the long term
o Long term satisfied members provide more referrals!
o The average business spends 6 times more to attract new customers than it does to keep old ones. Yet customer loyalty is in most cases worth 10 times the price of a single purchase
o It’s easier & less costly to keep existing members than to acquire new members. The more members you keep through active retention efforts, and the longer you keep them, the more profitable you Planet Beach Contempo Spa will be!
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The “11 Deadly Sins” of Customer Service
1. “I don’t know.”
Customers expect you to know
Add 3 essential words… “I’ll find out.”
2. “I don’t care.”
Our customers want you to care about seving them
When your attitude, conversation, or appearance makes it clear you’d rather be somewhere else, they’ll find themselves wishing the same thing
3. “I can’t be bothered.”
Actions speak louder than words
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The “11 Deadly Sins” of Customer Service
4. “I don’t like you.”
Customers are sensitive to attitudes that subtly or overly say, “You are a nuisance; please go away.”
5. “I know it all.”
When you jump in with a solution before a customer has finished explaining the question, that’s being pushy
6. “You don’t know anything.”
There are no dumb questions, only dumb answers.
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The “11 Deadly Sins” of Customer Service
7. “We don’t want your kind here.”
Prejudice comes in all shapes or sizes, ages, colors, and educational levels.
Every customer wants and deserves to be treated with courtesy and respect
8. “Don’t come back.”
The purpose of serving our members is to get them to come back again and again.
We need to thank our customers for their patronage and loyalty
9. “I’m right, you’re wrong.”
Customers are not always right, but it doesn’t cost us anything to give them the benefit of the doubt
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The “11 Deadly Sins” of Customer Service
10. “Hurry up and wait.”
Time may be the #1 obsession for people today
Respect our customer’s time and they will respect us in turn
11. “Never turn your back on a customer.”
The rudest body language that you can convey to any member is to have your back to them
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Positive Phrasing
Negative Phrase:
“I don’t know”
“We can’t do that”
You’ll have to…”
“Hang on a second, be right back.”
“No” when used at the beginning of a sentence
Positive Phrase:
“Gee that’s a good question. Let me check and find out for you.”
Soften the request with, “Would you please”
“Boy, that’s a tough one. Let me see what we can do.”
It may take me 2 or 3 minutes to get that for you, do you mind waiting?
“We aren’t able to give you a cash refund but we would be more than happy to allow you to exchange it”
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Positive Responses
“Thank You”
“Please”
“Consider it done”
“I’ll take care of that for you”
“Certainly, sir or ma’am or the individual’s name”
“I understand how you feel”
“No problem” (The exception to “No” in a sentence)
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SIX most important words…
“I admit I made a mistake”
FIVE most important words…
“You did a good job”
FOUR most important words…
“What is your opinion”
THREE most important words…
“If you please”
TWO most important words…
“Thank you”
THE LEAST important word…
“I”
A Short Course in Human Relations
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“Loyal customers and members outspend others13 to 1.”
Remember the “Secret” of the ‘Spa business’ & the “Rules
of 5.”
Focus on Retention
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IF 80% OF CUSTOMER LOYALTY COMES FROM CUSTOMER SATISFACTION…
AND CUSTOMER SATISFACTION COMES FROM YOUR PLANET BEACH CONTEMPO SPA
TEAM…
The only thing that we’re selling is a customer service
promise.
Loyalty & Retention
REMEMBER…
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Stage 4: Head Coach
Focuses on know why before know how Teaches everyone something new daily Brilliant at the Basics: works on fundamentals daily Team Builder Finds coach-able moments every day Makes tough calls Adapts coaching style to learner Coaches to the career-path Makes the company money
“The more you spend on training the less you spend on advertising.”
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Stage 5: Marketing Guru
ABM (Always Be Marketing) mindset Equally adept at both external & internal marketing Views marketing as a philosophy not a “department” Learns the difference in each market Connects with the community SWOT analysis for every spa Connector: has both know how and know who Makes the company money
“Marketing is a philosophy, not a department.”
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Stage 6: Synergist
Can design and execute effective Annual or Quarterly Business Plans
Can design and execute results-driven Store Visits Connects the dots between the Quarterly
Business Plan, Period Goals and Shift Execution Strategic Thinker Matches Strategy to Situation
“Multi Unit Management is a thinking, not a ‘doing’ job.
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Stage 7: Goal-Getter
In it to win it Throws the cap over the wall Plays to tin instead of playing not to lose Knows School is never out for the Pro “The Buck Stops Here” Mentality Makes the company money
“Well done is better than well said.”
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The End…of the Beginning
“Success should be linked to excellence and fulfillment. Success is about who you are not what you have. Successful people work to discover their talents, to develop those talents, and then to use those talents to benefit others as well as themselves.”
-Anna Muoio
“Change with the times or the times will change you!”
“Faced with the choice between changing one’s mind and proving that there is no need to do so, almost everybody gets busy on the proof.”
-John Kenneth Galbraith
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Planet Beach Contempo Spa
EVOLVE & REVOLVE
Multi-Unit FranchisingJohn Paul, Executive Consultant
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Multi Unit RevolutionMulti Unit Revolution
According to FRANdata, for the first time in franchising history, more
than 50% of all franchise units are owned by multi-unit franchisees.
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Multi Unit RevolutionMulti Unit Revolution
“Lately, the modest dream of running a single franchise location seems almost
passé. Multiunit development appears to be taking over as the primary goal of savvy
business owners. For these ambitious entrepreneurs, franchising is less about
making a l iving than it is about increased growth, power and money.”
Entrepreneur MagazineEntrepreneur Magazine
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SHOW ME THE MONEYSHOW ME THE MONEY
The average net income for a SINGLE unit franchise is The average net income for a SINGLE unit franchise is $76,000$76,000 The average net income for a MULTI-UNIT franchise is The average net income for a MULTI-UNIT franchise is
$142,000!$142,000! Franchisees who own multiple units have a success rate Franchisees who own multiple units have a success rate
of 97%.of 97%.
INREASED MARKET SHARE=INCREASED PROFITSINREASED MARKET SHARE=INCREASED PROFITS
IFAIFA
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Multi Unit RevolutionMulti Unit Revolution
Multi-Unit Franchising, is one of the SMARTEST things you can do to ensure your financial success!!
So how do we do it?
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Multi Unit RevolutionMulti Unit Revolution
If multi-units are more successful and profitable, why doesn’t everyone do it?
Don’t know how or where to begin expansion . Don’t know what resources are available to them. Don’t know the advantages of multi-unit
franchising.
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Multi Unit RevolutionMulti Unit Revolution
How to catch
the BIG FISH!!
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Multi Unit RevolutionMulti Unit Revolution
SPREAD THE RISKSPREAD THE RISK
The advantage gained from having multiple units in a The advantage gained from having multiple units in a given area: you can spread the risk. It's unlikely that all given area: you can spread the risk. It's unlikely that all
the stores will have a down period at the same time. the stores will have a down period at the same time. When times are slow for one, the others will pick up the When times are slow for one, the others will pick up the
slack.slack.
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Multi Unit RevolutionMulti Unit Revolution
SPREAD THE WORKSPREAD THE WORK Single unit franchises have to be the whole orchestra.Single unit franchises have to be the whole orchestra.
Multi -unit operators usually have the abil i ty to gain Mult i -unit operators usually have the abil i ty to gain economies of scale and spread their overhead costs economies of scale and spread their overhead costs over more units, thereby reducing them. Some of these over more units, thereby reducing them. Some of these costs include star t-up, hiring, training, employee and costs include star t-up, hiring, training, employee and customer retention and adver tising.customer retention and adver tising.
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Multi Unit RevolutionMulti Unit Revolution
SPREAD THE WEALTHSPREAD THE WEALTH Multi-unit franchising receive Multi-unit franchising receive
reduced star t-up fees!reduced star t-up fees! reduced royalty fees?reduced royalty fees? Open for Open for
discussiondiscussion
LETS TALK ABOUT IT WITH THE PANEL.LETS TALK ABOUT IT WITH THE PANEL.
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Multi Unit StaffingMulti Unit Staffing
THE SECRETS
TO MULTI-UNIT
SUCCESS
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Multi Unit StaffingMulti Unit Staffing
#1 Success Secret of Multi-Unit Ownership
People
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Multi Unit StaffingMulti Unit Staffing
STOP Managing People
Get Better People
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AREA DEVELOPER MAGAZINE
Candace: “if you have it in you to be
successful, and your
passionate, you’re going to
do just that, whether you
have the experience or
not.”
Brent:“Plan to be
involved everyday because
nobody will have passion
for your business like
you do.”
Area Developer Magazine: Featured
Candace and Brent Marek as
successful multi-unit Planet
Beach Franchisees !
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MUMSMUMS
Customer Service
ComplianceAlternate
Consultant
Hiring
Training
Marketing
Multi-Unit Manager(MUM)
Spa 1Spa DirectorAsst.Spa Director
Spa 2Spa DirectorAsst.Spa Director
Spa 3Spa DirectorAsst.Spa Director
Spa 4Spa DirectorAsst.Spa Director
Spa 5Spa DirectorAsst.Spa Director
STAFFING FOR ULTIMATE SUCCESS AND SECURITY
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MUM OR NOT A MUMMUM OR NOT A MUM
TOP PREFORMING SPA DIRECTORS
BOTTOM PREFORMING SPA DIRECTORS
Tough on standards, easy on people Variable stds. and treatment depending on who is managing that shift
Runs it like they own it Runs it like it is a Monday, or Thursday…..
Trains team daily Trains during orientation
Brilliant at the basics Sloppy, inconsistent fundamentals
Accountable, disciplined “Not my fault”
Focus, Goal Setting, Execution “I can’t believe you did this bad.”
MUM in the Making Will Never Make a MUM
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Multi-unit Staffing Success PyramidMulti-unit Staffing Success Pyramid
Franchise OwnerRegional VP Executives
MUM
Spa Directors
Staff
MembersCustomers
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EVOLUTION-YOUR JOURNEY
BEGINS…
The #2 Success Secret of Multi-Unit Ownership
Operations
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Multi Unit RevolutionMulti Unit Revolution
Planet Beach Operating Ef f icienciesPlanet Beach Operating Ef f iciencies
Education= Creating Interchangeable Par tsEducation= Creating Interchangeable Par ts Creating Consistency Creating Consistency
PBU online training courses, Six-day Franchisee /Spa Director school, Conventions and Seminars
Master’s PBU courses and Advanced 3-day Education Classes- -Apri l - SalesJune- OperationsSeptember-ManagementOctober-Marketing
Marketing/Adver tising/P.R.Marketing/Adver tising/P.R. Design and distribute adver tising, Location and demographic
specif ic, Create repetit ion and consistency in the market, broader reach, larger market share
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EVOLUTION-YOUR JOURNEY
BEGINS…DEVELOPMENT INFRASTRUCTURE :DEVELOPMENT INFRASTRUCTURE :
Securing Franchising to Unleash ExpansionSecuring Franchising to Unleash Expansion
$$$$$$ YES it ’s about the NUMBERS!YES it ’s about the NUMBERS! $$$ $$$
Securing a reliable capital source to fuel expansion Securing a reliable capital source to fuel expansion is one critical factor. By having a strategic, is one critical factor. By having a strategic, credible growth plan, and by being able to credible growth plan, and by being able to
demonstrate past operating expertise and financial demonstrate past operating expertise and financial acumen and responsibility, owner-operators can acumen and responsibility, owner-operators can
secure financing for expansion, and reap the secure financing for expansion, and reap the professional and financial rewards.professional and financial rewards.
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EVOLUTION-YOUR JOURNEY
BEGINS…Partnering with a Lender- Partnering with a Lender- financing financing packages created to assist with unit and equipment packages created to assist with unit and equipment acquisition and refinancing. acquisition and refinancing.
•FranFund-a lender with franchise experienceFranFund-a lender with franchise experience
•It pays to deal with a lender well versed in your business. A It pays to deal with a lender well versed in your business. A lender that is familiar with the franchising business will better lender that is familiar with the franchising business will better understand an applicant’s needs through the life of the lending understand an applicant’s needs through the life of the lending relationship.relationship.
Finance consultingFinance consulting Equipment leasingEquipment leasing Start-up CapitalStart-up Capital
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EVOLUTION-YOUR JOURNEY
BEGINS…DEVELOPMENT INFRASTRUCTURE :DEVELOPMENT INFRASTRUCTURE :
•Planet Beach Leasing DepartmentPlanet Beach Leasing Department--Feasibilty StudyFeasibilty Study-Location Mapping Software-Location Mapping Software-National Real Estate Broker relationships-National Real Estate Broker relationships-Real Estate Attorney relationship-Real Estate Attorney relationship-Lease Negociations-Lease Negociations
•Planet Beach Design & Construction DepartmentPlanet Beach Design & Construction Department-Space Planning-Space Planning-Site Survey-Site Survey-Engineering & GC Firm relationships-Engineering & GC Firm relationships-Component vendor relationships-Component vendor relationships
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EVOLUTION-YOUR JOURNEY
BEGINS…REVENUE PRODUCING INFRASTRUCTURE :REVENUE PRODUCING INFRASTRUCTURE :
•Planet Beach New Pre-Sale and Conversion ProgramPlanet Beach New Pre-Sale and Conversion Program
Pre-Sale Grand Opening Program (12mth duration)-Creates accelerated profits, revenues and R.O.I. - Elite EFT membership strategies
Conversion Re-Grand Opening Program (12mth duration) -Creates accelerated profits and revenues
-New, innovative Contempo Spa Conversion Program
Education - Advance training and education for Franchisees, Muli-
unit managers (MUMS), Spa Directors, and Staff
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EVOLUTION-YOUR JOURNEY
BEGINS…REVENUE PRODUCING INFRASTRUCTURE :REVENUE PRODUCING INFRASTRUCTURE :
Planet Beach New Research and Development for a Planet Beach New Research and Development for a GREATER market share and expansion.GREATER market share and expansion.
•Planet Beach New Product Development Planet Beach New Product Development
-Holistic skin care line product line-Planet Beach Nutrition products and programs- Guided meditation through Spa Tempo-Cloud 9
•Planet Beach Retail Products & Leading Edge EquipmentPlanet Beach Retail Products & Leading Edge Equipment
-Leading the Contempo Spa industry in product and equipment development .
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EVOLUTION-YOUR JOURNEY
BEGINS…
The #3 Success Secret of Multi-Unit Ownership
Profitability
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R.O.I.Multi-unit expansion is a great way to take
advantage of economies of scale!
Opening many locations at once or over a planned period of time, enables the multi-unit operator/franchisee to LOWER
start –up and operating costs and realize efficiencies in staffing, training, purchasing, marketing, and accounting.
Greater visual presentation and market recognition.
Success breeds Success stabilization of total revenue
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R.O.I.
NO MORE MOM AND POP MANAGEMENT!!
STRATEGIC IN-DEPTH MULTI-UNIT BUSINESS PLAN YOUR BIBLE AND GAME PLAN
GROWTH ONLY WITH PROFITABILY MUST BE YOUR FOCUS!
RAMP-UP PHASES WITH THE TIMES LINE BASED ON PROJECTEDPROFITABILTY.
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R.O.I.EVERYONE MUST BE IN THE
RACE! WEEKLY ACCOUNTABILITY AND GOAL SETTING-ALLSTAFF
QUARTERLYAGGRESSIVE TEAM BONUS PROGRAM
ANNUALY TARGETED TEAM AND INDIVIDUAL BONUS PROGRAM
W.I.I.F.M.
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EVOLUTION-YOUR JOURNEY
BEGINS…
The #4 Success Secret of Multi-Unit Ownership
FIRST TO MARKET
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EVOLUTION-YOUR JOURNEY
BEGINS…Expanded marketplace and
uncontested waters
Fish in the Blue Ocean
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EVOLUTION-YOUR JOURNEY
BEGINS…Expanded marketplace and
uncontested waters
I don’t want to be in the red ocean!
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EVOLUTION-YOUR JOURNEY
BEGINS…USPUSP
Remain ahead of the curve and market Remain ahead of the curve and market trends.trends.
Don’t compete with rivals, make them irrelevant!Don’t compete with rivals, make them irrelevant!
Planet Beach created the Contempo Spa. At the touch of a button, our members enjoy a private spa experience at a fraction
of the cost and in far less time than the day spa.
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What one man can do, another can do!
We do not have time to reinvent the multi-unit franchising
wheel!
Just follow what systems, procedures, policies & strategies other great franchisors have
created.
All first to market multi-unit franchises- MacDonald’s, Krispy Kreme, Gold’s
Gym, Blockbuster, Supercuts, Subway
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J .P. ’s Thoughts On Management1. If someone throws you the ball, you don’t have to
catch it.
We accept challenges; we do not accept being disrespected and victimized, or being overwhelmed
2. The Passing Feelings
We’ve been happy, sad, jealous, depressed, angry, in love, shamed, proud, and every other human emotion!
Where did they all go?
All disappointment comes in 2 ways:
(1) We want pleasure to last forever
(2) When we experience pain, we want it to go away fast- it never does!
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J .P. ’s Thoughts on Management
3. Have fun, enjoy the process
Enjoy what you do; what you have – not what you want. You will spend your life always chasing happiness!
- Getting lost and overwhelmed in the chaos, responsibilities of life
- Not clearly seeing and believing the process or outcome: creates stress. NO FUN!!
We argue for our limitations or our beliefs, and they become the problem, they become our limitations! Have fun, enjoy the process!
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4. Seek to understand.
When you understand another person’s position and points of view, you grow & learn—it’s energizing!
5. Challenges & Obstacles are the fun part of business!
Circumstances don’t make the person, they reveal him or her!
Often, we make a big deal out of nothing; we blow up scenarios in our mind. Always remember, maybe so, maybe not.
6. We become what we practice most!
Does shit always happen?
7. Eye of the Storm
Keep moving to the center of your plan, your goal, your to-do list and do one thing at a time!
J .P. ’s Thoughts on Management
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J .P. ’s Thoughts on Management
8. The Soap Opera
It turns life into an emergency: a melodrama, the “end of the world” mentality. They never show FUN!
9. Understanding Separate Realities
What is your reality; it’s different from mine!
10. Life is a test, it is only a test- have FUN!
Without resistance we cannot grow.
Wherever you go, there you are – have FUN!
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“Think and Grow Rich”
The word “impossible” is not recognized by
successful men, but it is a handy alibi of the man
who is a failure.
“The best way to predict the future is to create it”
Peter Drucker
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25 “Musts” for the Start-Up Entrepreneur
1) You must develop the ability to see the needs and wants of others
2) You must find a market gap – U.S.P!
3) You must become a service and quality fanatic
4) You must get started
5) You must offer your original investors the chance to profit in a big way
6) You must start small
7) You must use the telephone constantly for acquiring all kinds of information
8) You must hire the best people and generate entrepreneurial excitement
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25 “Musts” for the Start-Up Entrepreneur9) You must charge enough, meet problems
head on and collect your money upfront—watch your retail margins
10) You must develop a written strategy that helps your staff grow, improve, or profit
11) You must aim constantly to become the dominant spa in your area/region
12) You must maintain honesty and integrity always—and in all dealings
13) You must accept no freebies- “There is no free lunch”
14) You must be generous to employees with wages & profit-sharing benefits—Remember when you win $$ they win $$
15) You must see your company as global, rather than local or regional; a part of the whole Plant Beach Contempo Spa Family.
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25 “Musts” for the Start-Up Entrepreneur
16) You must develop tenacity and perseverance to survive the days and nights of anxiety
17)You must manage your company for constant mistake avoidance
18) you must win your customers back again and again
19) You must apply fail safe range of management checkpoints and controls
20) You must establish a corporate philosophy that stresses quality and service
21) You must develop an error-free reporting system
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25 “Musts” for the Start-Up Entrepreneur
22)You must constantly seek to pay minimum taxes, but always stay within the law
23) You must diversify into those areas that fit and supplement your existing business
24) You must find something worthwhile to do with the money you earn
25) You must leave your company or service when you are no longer excited about what you do
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10 Truths for the Boss: “Character Counts”1. The more certain you are that “it can’t happen here” the
more likely it is that it will. Be careful about over- confidence and complacency.
2. There are lots of things you don’t know, and lots of people who hope you don’t find out. Hardly anybody tell you the whole truth anymore. Information is filtered through the fears and career aspirations or subordinates and many employees believe you will “kill the messengers” if they deliver bad news so they tell you what they think you want to hear.
3. To those who want to please you, your whisper is a yell and your comments are commands. Be careful, people may do foolish things to please you.
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4. What you allow, you encourage.
5. There’s never just one bad employee; there’s the employee and the manager who keeps him.
6. At least someone that works for you is “gaming” the system so they appear to reach their business objectives with smoke and mirrors rather than a real achievement
7. According to the law of big numbers, if you have lots of employees, you probably have a few crooks and psychopaths working for you
10 Truths for the Boss: “Character Counts”
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9. No matter how many good things you do, you will be judged by your last worst act.
10. No matter what your job description says, what matters most is how you manage relationships and people
8. Few people think as highly of your ethics as you do
10 Truths for the Boss: “Character Counts”
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Thoughts on Excellence“They are able because you
think they are able.”
-Virgil
“Fill the unforgiving minute with 60 seconds worth of distance run.”
-Rudyard Kipling
“Life is either a daring adventure or nothing.”
-Helen Keller
“He turns not back who is bound to a star.”
-Leonardo da Vinci
“The tragedy in life is not so much what men suffer, but rather what they miss.”
-Thomas Carlyle
“All men dream: but not equally.”
-T.E. Lawrence
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“Success seems to be largely a matter of hanging on after others have let go.”
-William Feather
“I never set out to beat the world. I just set out to do my absolute best.”
-Al Oerter
- K.M.
“We know what we arel but we know not what we may be.”
-William Shakespeare
“We acquire the strength we have overcome”
-Ralph Waldo Emerson
More Thoughts on Excellence
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DAY 3:Raising the Bar- 9 to 2What It Takes to Be #1Help Wanted Ads-ExamplesTime ManagementLong Term Planning-The 24 Month Plan BudgetingExtra Nuggets:J.P.’s 100 Secrets for SuccessBusiness & Leasing Terminology Spa Director’s Checklist for Opening & ClosingRecognition, Compensation IncentiveSuggested Job Descriptions & Compensation
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Scene from the movie:
FACING THE GIANTS
http://www.youtube.com/watch?v=-vB59PkB0eQ
Facing The Giants
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You’ve got to pay the price.
Winning is not a sometime thing; it’s an all-the-time thing. You don’t win once in a while, you don’t do things right once in a while, you do them right all the time. Winning is a habit. Unfortunately, so is losing.
There is no room for second place. There is only one place in my game and that is first place. I have finished second twice in my time at Green Bay and I don’t ever want to finish second again. There is a second place bowl game, but it is a game for losers played by losers. It is and always has been an American zeal to be first in anything we do and to win and to win and to win.
What It Takes To Be #1
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Every time a football player goes out to play his trade, he’s got to play from the ground up—from the soles of his feet right up to his head. Every inch of him has to play. Some guys play with their heads. That’s OK. You’ve got to be smart to be #1 in any business. But more important, you’ve got to play with your heart– with every fiber of your body. If you’re lucky enough to find a guy with a lot of head and a lot of heart, he’s never going to come off the field second.
Running a football team is no different from running any other kind of organization– an army, a political party, a business. The principles are the same. The object is to win– to beat the other guy. Maybe that sounds hard or cruel. I don’t think it is.
What It Takes To Be #1
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It’s a reality of life that men are competitive and the most competitive games draw the most competitive men. That’s why they’re there– to compete. They know the rules and the objectives when they get in the game. The objective is to win– fairly, squarely, decently, by the rules– but to win.
And in truth, I’ve never known a man worth his salt who is the long run, deep down in his heart, didn’t appreciate the grind, the discipline. There is something in good men that really yearns for, needs, discipline and the harsh reality of head to head combat.
I don’t say these things because I believe in the ‘brute’ nature of man or that men must be brutalized to be combative. I believe in God, and I believe in human decency. But I firmly believe that any man’s finest house– his greatest fulfillment to all he holds dear– is that moment when he has worked his heart out in a good cause and lies exhausted on the field of battle—victorious.
-Vince Lombardi
What It Takes To Be #1
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1) Humility/With Leadership2) SWOT Yourself/Do What You’re Best At More3) Follow Your Bliss/What Makes You Happy4) Dream Big/ What Can You Possibly Achieve5) Vision/ What’s Next Always6) Perseverance/ Press On—Never Give Up7) Honor Your Word/ Integrity8) Get a Mentor/ Seek Wisdom9) Be Yourself/ Always
Awaken the Leader in You“The miracle power that elevates the
few is to be found in their industry, application, and perseverance, under the promptings of a brave determined spirit.” -Mark Twain
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Few people go to work intending to perform poorly.
Managers must show them how to pursue excellence.
Excellence
“I have never met anyone who went to work that said I can’t wait to go in and screw up!”
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“There is no job so simple that it cannot
be done wrong.”
K.I.S.S .
SEE ATTACHMENTS FOR:
Suggested Job Descriptions & Compensation
Opening & Closing Check Lists
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“Without constant, continuing training and various team and individual incentive schemes,
we consign ourselves to getting mediocre results.”
-Tom Peters
Recognition Compensation Incentives
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Profit sharing creates
emotional commitment…People can smell emotional
commitment from a mile away.
Emotional Commitment
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People and mules are much
alike in that they can often be led where they can’t be
driven!
Reward Forward Movement
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Receptionist Job Description & Responsibilities
1. Pass out Customer Satisfaction Surveys
2. Email Blasts
3. Birthday Board & Cards
4. VIP list updated daily
5. Phones on the charger
6. Member retention & thank you cards
7. Inventory
8. Calendar for Retention Calls
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Receptionist Job Description & Responsibilities
9. Print the following day’s appointments
10. Membership Agreements are checked
11. Answering Multiple Phone Lines
12. Knowing the Phone Scripts
13. Lotion Displays
14. Check with the Spa ConsultantSMILE & BE HAPPY!! BE SURE YOU ARE ALWAYS LOOKING THE CUSTOMER IN THE EYE AND BEING AS FRIENDLY AS POSSIBLE!!!!
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NOT MAKING WHAT YOUR WORTHLook for a career change in the fastest growing industry in the world—Contempo Spa– WE ARE RECESSION PROOF—WE ARE THE ANTI RECESSION STRESS REMOVER. We need women & men who are into wellness-stress reduction-anti aging skincare and have an abundance of enthusiasm. Come make a fantastic career change into spa membership sales.
REQUIREMENTS:Self Starting Individual who loves selling spa health- spa wellness- and spa beauty!
SEND YOUR RESUMECALLEMAILFor Personal Interview
HELP WANTED ADS: Typical ExamplesSales Spa
Consultants
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SPA DIRECTORS NEEDEDThe largest international Contempo Spa Franchise is expanding.We are looking for positive individuals who a proven track record in hospitality management, who wish to launch a new career into spa wellness- spa stress reduction- spa anti aging- and spa skincare. WE ARE RECESSION PROOF. THE SKY IS THE LIMIT!
REQUIREMENTS:Enthusiastic self starter who loves managing people in the fastest growing spa industry.
SEND YOUR RESUMECALLEMAILFor Personal Interview
HELP WANTED ADS: Typical ExamplesSpa Directors/Assistant Spa
Directors
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SPA RECEPTIONIST & REGISTRATIONSeeking career oriented people interested in the spa industry.
REQUIREMENTS:Enthusiastic, motivated, hospitality focused individuals who enjoy working with people. Great phone & computer skills a ples for $$ and placement.
SEND YOUR RESUMECALLEMAILFor Personal Interview
HELP WANTED ADS: Typical ExamplesSpa Receptionist
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The #1 Priority on Everyone’s Agenda in the New Millennium and into the Future.
TIME
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Time Management
“Many people take no care of their money
until they come nearly to the end of
it : Others do just the same with their time”
-Geothe
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Don’t Just Work Hard, Work Smart!
Keys to Working SmartKnow what you want to accomplishSet your goals to win.Know when to call an audible
Improve Your Time Management Skills4-D System
To-DoTo-DelegateTo-DelayTo-Drop
Make a list for each “D”Be OrganizedPlan Ahead
Time Management
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Points to Remember:
Acknowledge what wastes your time
Don’t try to accomplish too much in one meeting
Be consistent
Understand the big picture
Be realistic about deadlines
Learn from days you manage well
To take on more responsibility, you can not work more; you have to work smart.
Time Management
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THINGS TO DO: BY WHEN: DAY: TIME:
1.2.3.4.5.6.7.8.9.10.11.12.
Time Management: 4 D’s
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TO DELEGATE: TO WHOM: BY WHEN:
1.2.3.4.5.6.
Time Management: 4 D’s
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TO DELAY: UNTIL WHEN:
1.2.3.4.5.6.
Time Management: 4 D’s
TO DROP:
1.2.3.4.5.6.
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Are you tired?
Do you feel awful? Run down?
Overworked?
Perhaps there is a reason why.
TIRED???
http://www.youtube.com/watch?v=rvxoltdiaUQ
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We have run across some absolutely irrefutable statistics that show exactly why you are tired. And Brother, it’s no wonder you’re tired!
There aren’t as many people actually working as you may have thought. At least, not according to this survey recently completed.
The population of the country is 100 million, but there are 2 million over 60 years of age, leaving 98 million to do the work. People under 21 total 54 million, which leaves 44 million to do the work. Then there
are 21 million who are employed by the federal government, and this leaves 23 million to do the work. Then 10 million are in the Armed Forces, leaving 13 million to do the work. Deduct 12,800,000 (the
number in state/city offices) and that leaves 200,000 to do the work. There are 126,000 in hospitals, insane asylums, and other mental
institutions, & that leaves 74,000 people to do the work. But 62,000 of these are bums or vagrants who refuse to work, so that leaves
12,000 to do the job.
TIRED???
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Now, it may interest you to know that 11,998 people are in jail, so that leaves just 2 people to carry the whole load. That is YOU and ME, pal, and I’m getting tired of doing everything
myself!
TIRED???
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Managing to the Goal
As a spa director, you must always be aware
of your GOALS: financial goals, spa cleanliness
goals, and many others
You may ask, “Is it necessary to monitor EVERY
SINGLE GOAL every day?”
The Answer: It is absolutely essential
to your spa’s success!
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THE STATS- WHAT ARE THEY & WHY DO WE NEED THEM?
Defensive stats: What are they? Who needs these?
Offensive stats: What are they? Who needs these?
NUMBERS, NUMBERS, NUMBERS
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Examples of Offensive Stats: How many guests from rules of five How many guests are brought in by new memberHow many appointments were made for weekend
from new member How many family add-ons today How many corporate contracts today How many referrals we sold today How many team passes came in today
OFFENSE
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Examples of Defensive Stats:?________________________?________________________?________________________?________________________?________________________?________________________
DEFENSE
1
Inspiration: The Law of Attraction
http://www.youtube.com/watch?v=WEqdr_Awdak
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You must have a goal to win– and that all starts with a plan. Then
execute that plan with great enthusiasm.
- Vince Combardie
People don’t Plan to Fail… They Fail to Plan
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“Hope is not a strategy”
You Must Have A Strategic Plan!
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You Must Have a Plan of Action and Goals
P. ProperP. PlanningP. PreventsP. P_ _ _ P. Poor
P. Performance
S. SpecificM. MeasurableA. AttainableR. RealisticT. Time Frame
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“A short pencil is better than a long memory”
The Chinese have a proverb: I remember what I see, I forget
what I hear.
Your Plan Must Be Clearly Written Out
“If you ink it, you think it!”
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“To produce more sales almost always means to sacrifice
immediate profit. To produce higher profits almost always
means balancing sales objectives for long range success!”
-Tom Peters
Balancing Objectives
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“The successful, productive manager is more effective and production-
driven than statistics and efficiency-minded, more concerned with
increased results than with accountability, methods, systems,
and tracking procedures”Stephen R. Covey
SUCCESSFUL, PRODUCTIVE LEADERSHIP
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Manage by Objectives to Increase Production
Objective #1: Everything we do must serve production
Objective #2: Separate church and state. Counting
beans and picking beans are not the same.
Production people are not accountants.
Accountants are not production people.
Spa Directors/Personnel = OFFENSE
Franchisees = DEFENSE
Objective #3: People (i.e. staff) sell and retain members.
Put money into training and educating our
staff!
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Spa Yearly Goals Yearly goals are set by your Spa Performance Consultant or your Area Representative
Items considered when setting goals include
•spa expenses
•Previous year’s performance
•Some market seasonality
•Other variables analyzed by spa consultant
Once goals are set, they are entered into PBFC’s intranet and can then be downloaded, “requested” via Solarware.com
Once you “request” your goals each month, Spa Directors must dissect goals and create Monthly, Weekly, and Daily Action Plans for your spa and team
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Monthly Action Plans
Allow Spa Directors to assign a goal to
each Spa Consultant for the entire month.
Enable Spa Directors to monitor
performance of each team member and
measure results at the middle and end of
each month
Allow Spa Directors to pinpoint and coach
underperforming team members & develop
processes and development plans to
increase performance
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Questions for Monthly Meetings
What 3 things have you seen this month we could do better?
What 3 things have you seen this month that we do well?
What employee has really stood out in member service this month and why?
How was our member service this month? How were you treated?
What can we do to keep you as a member in the coming years?
What’s our biggest weakness in member service?
What does our competition have that you would like to see us add?
What made you sign up here in the first place?
What other products/ services would you like to see?
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Where Will You Be 24 Months From Now??
Change is GoodYou Go First!
First, you must 100% commit to change and operate a true Contempo Spa.
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The 24 Month Plan
Long Term Planning
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• 2 Memberships/ day @ avg. of $69/month = 60 sales per month (spm)
• 60 spm x $69 = $4,140/month in EFT Increase x 24 months = $99,360 combined Net EFT at the end of 24 months
• With a 26% attrition rate that reduces the NET EFT to: $73,527/month
• $73,527/month x 24 mo. = $1,764,648 over 24 months ($882,324 Net EFT/year)
• Assume commissions were paid on total $882,324 @ 20%. Total commissions paid out: $174,465. NET after commissions = $705,859 over a 12 mo. period.
The 24 Month Plan: Net EFT
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• 60 members/mo. x 24 months = 1440 members
• With a 26% attrition rate, the total member base is reduced to 1066 members.
*Attrition rate for a 12 month period is approx. 13%
The 24 Month Plan: Member #’s
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• With 1066 members using the spa, and an average sale of $25.00/member/mo. = $26,650
• $26,650/mo. in retail x 24 months = $639,600 ($319,800/yr)
• At a margin of 30% = $95,940 in profit (margins must be monitored)
The 24 Month Plan: Retail
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• Projecting an avg. of $666.00/day in Mem. Cash x 30 days = $20,000/mo.
• $20,000/mo. x 24 months = $480,000 ($240,000/yr)
• $20,000 x 15% commission = $17,000/mo. Net after commissions only
• $408,000 profit/24 mo. ($204,000 profit/12 mo.)
*Based on 2 new members/day at an avg. of $69 ($138 at POS) = $276 in Mem. Cash (only $390 remaining to sell/day in Mem. Cash)
The 24 Month Plan: Membership Cash
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Net EFT: $1,764,648
Retail: $639,600
Mem. Cash: $480,000
Total Gross Sales: $2,884,248
The 24 Month Plan: Summary
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Budgeting is a process which allows you to:
Measure your business
Adjust your operations and strategy based upon results of that measurement
What is a Budget?
NOTE: Budgeting is only as good as the assumptions used to create it. You must use both Historical & Future Information to create the assumptions to drive your business.
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Reasons to Create a Budget
1. To reasonably predict cash flow
To support financial initiatives- banks, investors
To manage the timing of capital expenditures for remodel, equipment purchase, or spa expansion
To manage debt payments
To manage your salary or profit distribution
2. To measure performance of employees and create incentives
3. To know where to adjust costs and expenditures when revenues fall short of expectations
4. To establish and achieve goals
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o An estimate of future events based on realistic data
o An extension of your business plan & strategy
o An important Reference Point to guide your business in the right direction
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oProfit - what’s left over when you subtract Cost of Goods and Expenses from Sales
oCash Flow - A schedule reflecting projected cash receipts and payments for payroll costs and other obligations
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oSales - Total dollar amount collected for goods and services
provided
oCost of Goods - the cost of obtaining raw materials and producing finished goods that are sold
oExpenses - the cost of doing business from revenue- generating activities
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Components of a Budget
1. Income Statement- Revenues & Expenses Periodic measurement (monthly, quarterly, annually) of
expenses and revenues against plan and prior year allows for adjustment to pricing, staffing, advertising, etc.
2. Balance Sheet- Assets, Liabilities & Equity Measurement at a point in time of liabilities owed and assets
owned
Helps in making decisions on expansion, borrowing capacity, and when to make additional investment
3. Cash Flow- Detailing the change in cash position Cash is the life blood of the business
Knowing cash position at any point in the future is predictable based upon income statement and balance sheet assumptions.
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Information Needed for Budget Preparation Historical revenue information
- EFT trends, cash sales, other income sources Historical expense information
- Payroll, occupancy, advertising, spa level, owner/corporate level, fixed, variable
Historical balance sheet information
- Current and long-term assets and liabilities and owner’s equity (from tax return or accountant)
Internal changes impacting the future
- Personnel, systems, remodel, new product/service, promotional activity, leasing
External changes impacting the future
- Governmental regulation, competitive changes
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Budget Revenue Forecasting
EFT dues trends-EFT Add by month- seasonality, % of memberships that are EFT- Pricing- Retention and Attrition rates/ membership count- Average EFT/Member- First billing date (lag between sale and first EFT revenue)
Cash Membership Revenues-Seasonality- Pricing- Prorated dues/card fees- Post dated checks- PIF %, average $, length, etc
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Budget Expense Forecasting
1. Payroll by position– The number one expense in the spa
- Management- Sales- Front Desk Receptionist- Spa Attendants- Maintenance/Janitorial- Commissions, Bonus, etc.- Benefits and Taxes
2. Occupancy - Base Rent- Escalation
points, expirations, etc,
- Common are maintenance - Property Taxes - Insurance - Janitorial - Utilities - Repairs & Maintenance
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Budget Expense Forecasting
3. Spa Controllable Expenses- Merchandise and Concessions Cost- Repairs & Maintenance Equipment- Small Equipment purchases- Office Supplies- Printing and Forms- Laundry & Linen- Janitorial Supplies- Shipping & Mailing- Telephone/Communications- Travel- Over & Short- Classified Ads
4. Owner/ Corporate Controllable Expense- Advertising- Processing/Billing/Banking- Personal Property taxes- Professional Fees (legal, accounting, tax prep)- Other (licenses, etc)
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Understanding EBITDA
Earnings
Before
Interest
Taxes
Depreciation and
Amortization
This is most often the measurement by investors
and bankers when providing loans, or valuing a business.
Cash Operating earnings without giving affect to
financial and tax structure.
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Balance Sheet InformationCurrent Assets
-Cash
- Accounts Receivable-members, credit cards, etc.
- Inventory - retail
- Prepaid Expenses – insurance, taxes, rent
Long-Term Assets
-Fixed Assets Real Estate- Land and BuildingsLeasehold improvements Equipment/FurnitureAccumulated Depreciation
- Other Long term assets Deposits Notes Receivable Goodwill Other intangible assets
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Balance Sheet Information
Current Liabilities
- Accounts Payable & Accrued Expenses
- Current portion of long-term debt
- Income tax payable
- other current liabilities
Long term Liabilities
-Bank Debt
- Owner & Other debt
- Other long term liabilities
Stockholder’s Equity
-Common Stock
- Additional Paid in Capital
- Retained Earnings/(Deficit)
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What is a Profit & Loss Statement?
An owner’s way of illustrating results of the operation of a business over a period of time
Designed to illustrate the source of income, what has been done with it’s income from operations, or where each dollar of receipts has gone
Illustrates a sequence of events throughout the period
By starting with gross income or revenue and showing how it was used within the business, it will give an accurate breakdown of day to day operation of the business
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Elements of a Profit & Loss Statement
Total Cash Revenue
The total revenue that your spa will have in a given period resulting from the normal operations of the business
Total Cash Expense
The total expenses that your spa will have in a given period resulting from the normal operations of the business.
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Total Cash Revenue
Recurring Membership Dues $40,000
Cash Membership Dues $20,000
Total Membership Revenue $60,000
Retail Merchandise $10,000
Concessions _______
Supplements & Nutrition _______
Other _______
Total Merchandise $______
Gross revenue _______
Discounts & Returns (0)
Total Cash Revenue $______
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Cash Revenue TermsRecurring Membership Dues
-Dues received from your spa’s normal reoccurring dues during the period
Cash Membership Revenues
-Cash received from your spa’s monthly membership sales received during the given period
Collections
-Cash received from your spa’s monthly past due money’s received during the given period
Total Membership Revenue
-The combined totals of recurring membership dues, cash membership revenues, & collections
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Retail Merchandise
-Cash received from the sale of the retail merchandise in your spa such as clothing, accessories, etc.
Concessions
-Cash received from the sale of drinks, bars, etc.
Supplements/Nutrition
-Cash received from the sale of nutritional Supplement sales
Total Merchandise Revenue
-The combined totals Retail merchandise, concessions, supplements, and other
Cash Revenue Terms
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Gross Revenue
-The combined total of all revenue categories
Discounts and Refunds
-The amount of cash that was recorded in discounts and refunds for the given period. This amount is subtracted from the gross revenues
Total Cash Revenues
-Gross Revenues minus Discounts and Refunds
Cash Revenue Terms
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Total Cash ExpensesGross Payroll $_______
Taxes and Benefits $_______Total Payroll $_______
Merchandise & Concessions Cost $_______Marketing Expense $_______Repairs & Maintenance $_______Janitorial Expense $_______Office Supplies $_______Linens & Laundry $_______Telephones & Communications $_______Printing & Forms $_______Insurance $_______Travel Expense $_______Utilities $_______General Administrative Expense $_______Processing Fee $_______
Total Controllable Expense $_______Base Rent $_______CAM $_______Taxes $_______
Total Occupancy Costs $_______TOTAL CASH EXPENSES $_______
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Cash Expense Terms
Gross Payroll
-The total amount of payroll incurred for the period in wages, salaries, and commissions. This does not include taxes or benefits
Taxes and Benefits
-The amount of taxes and benefits incurred for the period
Total Payroll
-The combined totals of Gross Payroll & Taxes & Benefits
Merchandise & Concession Costs
- The cost of goods sold in retail merchandise and concession sales
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Cash Expense Terms
Marketing Expense
-The cost of all marketing materials for the given period such as newspaper, radio, mailers, flyers, etc.
Repairs and Maintenance
-The cost of all repairs and maintenance on equipment and physical plant. This does not include Capital Expenses.
Janitorial Expense
- The total amount of janitorial expense incurred for the given period. Includes outside janitorial and janitorial supplies
Office Supplies
- The total amount of office equipment purchases for the given period. Includes paper, pens, folders, etc.
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Cash Expense Terms
Linens and Laundry
-The total amount of expenses incurred for the given period on towel and laundry expense
Telephone & Communications
-The total amount of telephone and communications expenses incurred for the given period. Includes local & long distance phone charges, internet charges, etc.
Printing and Forms
- The total amount of expense incurred for a given period on printing and forms. Includes membership agreements, letterhead, envelopes, etc.
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Cash Expense
TermsInsurance
-The total amount of insurance cost for the given period. Does not include employee benefit insurance
Travel Expense
-The total amount of travel expense for the owner or employees for the given period. May include mileage reimbursement, plane tickets, hotel stay, etc.
Utilities
- The total amount of utility expense for the given period. Includes water bills, electric bills, etc.
- General & Administrative Expense
- The total amount of expense on “other” items that do not fall into a defined category
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Cash Expense TermsProcessing Fees
-The total amount of expense on fees associated to bank charges and external billing fees. May include: credit card fees, billing fees, etc.
Total Controllable Expenses
-The combined totals of Merchandise & Concession Costs through Processing Fees
Base Rent
- The total of the base rent paid for your building for the given period
CAM
- Total amount of Common Area Maintenance paid for the given period.
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Cash Expense Terms
Taxes
-The total amount of property taxes paid for the given period
Total Occupancy Costs
-The combined total of Base Rent, CAM, and Taxes for the given period
Total Cash Expenses
- The combined total of all expenses incurred for the month
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EBITDA
Total Cash Revenue $1,000,000 SPA
Total Cash Expenses $480,000
EBITDA $520,000
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The 5 C’s of Lending
Capacity= Business Plan
Capital= Infusion of Money
Collateral= Reduces Risk
Conditions= Market
Character= Credit and Personal Background
SEE ATTACHMENT FOR LEASING
TERMS
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Because its purpose is to create a customer, the business has two
—and only two– functions: MARKETING and INNOVATION.
Marketing and Innovation produce results; all the rest are
costs.- Peter Drucker
Marketing & Innovation
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Promotions & Public Relations & Retention Marketing
School #3: Advanced Marketing/Advertising
DAY 1:Creating Members Your #1 FocusMarketing U.S.P. Contempo SpaMarketing, Advertising, Promoting & what, how, when, why, & how muchThe Four QuadrantsCreative PromotionsGuerilla Marketing
DAY 3:Building an Annual Marketing Plan & BudgetRetention Marketing
Rules of FiveAlumni MarketingValidation CampaignParties, Parties, Parties Fun-Fun-Fun
Day 2:Launching a Public Relations Campaign-Everything A to ZCorporate Marketing Campaign- Everything A to ZRetail- Skin CareNutrition- Lotion, Marketing, Advertising & Promotions
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School #4: Advanced Summary on School #1& 2
DAY 1:Summary of Advanced Sales TrainingLeadership & Operations
DAY 3:Summary of Advanced Corporate Retail & Retention MarketingBudgeting & Financial Planning for Success, Profit & Growth
Day 2:Summary of Advanced Management & Marketing, Advertising & Public Relations…Promotions
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Job Descriptions: Suggestions & Guidelines
Spa ConsultantJob Description & Compensation
Spa DirectorJob Description & Compensation
Assistant Spa DirectorJob Description & Compensation
ReceptionistsJob Description & Compensation
**SEE HANDOUT**
