p.2
Strategic Planning Process
What does a strategic plan help a spa manager approach?
Financial elements, economic climate, and leadership skills.
p.1
Creating a Vision Statement
What should a successful vision statement accomplish?
It should inspire and provide a clear direction for the business.
p.9
Understanding Start-Up Costs
Why is determining financing options important for a business?
It meets the short-term needs and long-term goals of the business.
p.1
SWOT Analysis Fundamentals
What does SWOT analysis stand for?
Strengths, Weaknesses, Opportunities, and Threats.
p.7
Goals, Objectives, and Action Plans
What does it mean for objectives to be measurable?
Objectives must be clear enough to determine if they have been met during a review process.
p.1
Forms of Business Ownership
What are the different forms of business ownership?
Sole proprietorship, partnership, corporation, etc.
p.8
Elements of a Successful Business Plan
How is the body of a business plan typically structured?
It can be divided into four sections: Description of the Business, Market Analysis, Organization, and Management and Financial Data.
p.4
SWOT Analysis Fundamentals
What can SWOT analysis help uncover for a spa business?
Opportunities that the spa is well placed to exploit.
p.1
Goals, Objectives, and Action Plans
What is the significance of goals and objectives in business planning?
They provide a roadmap for achieving success.
p.2
Importance of Customer Retention
Why is customer retention highest in a spa?
When the spa team is consistent and committed to core values.
p.4
Strategic Planning Process
What does strategic planning define?
The direction of the business and decisions about resource allocation.
p.1
Strategic Planning Process
What is the purpose of a strategic plan?
To outline the goals and objectives of the business.
p.4
SWOT Analysis Fundamentals
What are some questions to consider when analyzing strengths in SWOT?
What advantages does your company have? What do you do better than anyone else?
p.7
Goals, Objectives, and Action Plans
How can a health club increase membership according to the action plan?
By writing six feature articles annually for trade journals, measured by new membership and renewals.
p.5
SWOT Analysis Fundamentals
What is the benefit of completing a SWOT analysis?
It provides a solid foundation for building a strategic plan.
p.3
Creating a Vision Statement
What should you consider when crafting a vision statement?
Why you started the business, your business legacy, what you provide beyond products and services, and your dreams for the business.
p.6
Goals, Objectives, and Action Plans
What does SMART stand for in the context of objectives?
Specific, Measurable, Achievable, Relevant, and Time-bound.
p.3
Creating a Vision Statement
How should a vision statement impact the organization?
It should inspire and challenge the operation, the industry, and the manager.
p.2
Elements of a Successful Business Plan
What is the role of values in an organization?
They shape actions and guide beliefs about how things should be done.
p.4
Developing a Mission Statement
What must a mission statement include?
Purpose, business, and values.
p.9
Elements of a Successful Business Plan
What are some key decisions needed to complete a business plan?
Selecting a location, deciding on a business structure, and obtaining necessary licenses, permits, and insurance.
p.9
Understanding Start-Up Costs
What factors influence the estimation of start-up costs?
Specific cash needs of the business, which can vary widely.
p.9
Understanding Start-Up Costs
What are fixed expenses in a business?
Monthly rent/mortgage payments and administrative costs.
p.8
Elements of a Successful Business Plan
Why is a business plan essential for a spa manager?
It helps in understanding past operations and goals, and guides decision-making.
p.7
Goals, Objectives, and Action Plans
How should effectiveness of action plans be measured?
Effectiveness should be evaluated against predetermined benchmarks and tracked over specified time frames.
p.5
SWOT Analysis Fundamentals
What should be considered when identifying strengths in a spa business?
Strengths should be considered in relation to competitors; if high-quality treatments are common, they are a necessity, not a strength.
p.5
SWOT Analysis Fundamentals
What are some potential threats to a spa business?
Obstacles include competition actions, changing specifications, technology threats, cash flow problems, and weaknesses that could threaten the business.
p.5
SWOT Analysis Fundamentals
How does the reputation of the lead esthetician impact a small spa business?
A strong reputation in the spa market enhances the business's credibility and attractiveness.
p.2
Strategic Planning Process
What is essential for organizations to achieve significant success?
Establishing a strategic structure.
p.4
Developing a Mission Statement
What is the first step in establishing a business according to the text?
Identify the key measures of success, choosing the most important measures.
p.4
Developing a Mission Statement
What is the purpose of the sample mission statement for Sylvan Spa?
Health, well-being, nourishment.
p.4
Strategic Planning Process
What should be understood before making a strategic plan?
A thorough understanding of the business.
p.8
Elements of a Successful Business Plan
What is the purpose of a business plan?
To accurately define the business, identify goals, and guide resource allocation.
p.8
Elements of a Successful Business Plan
What are the key components that every successful business plan should cover?
Executive Summary, Market Analysis, Company Description, Organization and Management, Marketing and Sales Management, Services and Product Lines, Funding Request, Financials, Supporting Documents.
p.7
Goals, Objectives, and Action Plans
What is an example of an action plan to increase business?
Medical spa advertising on a local radio channel for four weeks for $3000, measured by patient load.
p.8
Elements of a Successful Business Plan
What is the nature of a business plan according to the text?
It is a work in progress that may require ongoing assessment and updates.
p.5
SWOT Analysis Fundamentals
What is a key strength related to customer service in a small spa business?
Personalized, excellent customer care.
p.3
Creating a Vision Statement
What is an example of a vision statement from Google?
To organize the world’s information and make it universally accessible and useful.
p.6
Goals, Objectives, and Action Plans
What is the difference between goals and objectives?
Goals are overarching statements of future achievement, while objectives are specific activities to help reach those goals.
p.3
Developing a Mission Statement
What is the first step in creating a mission statement?
Identify the elements of the spa that will make it stand out from competitors.
p.2
Developing a Mission Statement
What is the primary purpose of a mission statement?
To describe the fundamental purpose of the organization.
p.4
Developing a Mission Statement
What should be combined to create a tangible and measurable goal?
The 'stand-out' elements and success measures.
p.7
Goals, Objectives, and Action Plans
Why should objectives be achievable?
Objectives should be realistic and attainable; for example, '100 percent customer satisfaction' is not realistically achievable.
p.7
Goals, Objectives, and Action Plans
What is the importance of time-based objectives?
Time-based objectives specify a deadline, making them tangible and accountable for review.
p.5
SWOT Analysis Fundamentals
Why is it important to acknowledge weaknesses in a business?
Acknowledging weaknesses allows for realistic assessment and necessary changes; ignoring them hinders improvement.
p.3
Developing a Mission Statement
What does a mission statement describe?
What the business does, why it is in business, and what it hopes to achieve.
p.6
Strategic Planning Process
What strategy might the spa adopt in response to its environment?
Specializing in rapid response and good-value services to local customers.
p.2
Difference between Vision and Mission Statements
How do mission and vision statements differ?
Mission statements focus on the organization's purpose, while vision statements focus on future aspirations and values.
p.1
Difference between Vision and Mission Statements
What is the primary difference between vision and mission statements?
Vision statements inspire, while mission statements define the purpose.
p.4
SWOT Analysis Fundamentals
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats.
p.10
Forms of Business Ownership
Why is it advised to consult with an accountant and an attorney when choosing a form of ownership?
To help select the appropriate form of ownership.
p.1
Understanding Start-Up Costs
What is a critical aspect of establishing a business?
Understanding start-up costs.
p.9
Elements of a Successful Business Plan
What is included in the Executive Summary of a business plan?
Description of the business, including vision, mission, and goals.
p.8
Elements of a Successful Business Plan
What is the role of the executive summary in a business plan?
It provides a concise overview of the business plan's key points.
p.8
Elements of a Successful Business Plan
What challenges does a spa manager face when creating a business plan?
Assessing goals and outlining the evolution of the company's growth.
p.2
Strategic Planning Process
What are the key components of a strategic structure?
Vision, mission, values, strategies, goals, and action plans.
p.2
Developing a Mission Statement
Who is the primary audience for a mission statement?
The leadership team, employees, and stakeholders.
p.10
Forms of Business Ownership
What is one of the first decisions to make when starting a spa business?
How the company will be structured.
p.9
Understanding Start-Up Costs
What are one-time costs in start-up expenses?
Fees for incorporating and the price of a store-front sign.
p.9
Understanding Start-Up Costs
What are variable expenses related to a business?
Costs associated with inventory, commissions, and utilities.
p.9
Elements of a Successful Business Plan
What financial data is typically included in a business plan?
Loan applications, balance sheets, income projections, and cash flow statements.
p.5
SWOT Analysis Fundamentals
What are some questions to ask when identifying weaknesses?
Consider what could be improved, what should be avoided, and what factors cause loss of sales.
p.3
Creating a Vision Statement
What is the first step in creating a vision statement?
Identify what you, your customers, and other stakeholders value most.
p.6
Goals, Objectives, and Action Plans
What is an example of a goal for a spa?
To improve customer service scores.
p.6
SWOT Analysis Fundamentals
What threats could impact the business?
Technological developments, competitor focus changes, and a shifting economy.
p.2
Creating a Vision Statement
What does a vision statement outline?
What the organization wants to be and its future aspirations.
p.2
Creating a Vision Statement
What does a vision statement communicate to employees?
Direction about expected behavior and inspiration to perform their best.
p.1
Creating a Mission Statement
What is a key component of a mission statement?
It should clearly define the purpose of the business.
p.1
Elements of a Successful Business Plan
What are essential elements of a successful business plan?
Goals, objectives, and action plans.
p.10
Forms of Business Ownership
How does establishing ownership structure affect the business plan?
It makes the creation of the remainder of the business plan details much easier.
p.10
SWOT Analysis Fundamentals
What is a SWOT analysis?
An analytical tool that helps in assessing strengths, weaknesses, opportunities, and threats.
p.5
SWOT Analysis Fundamentals
What types of opportunities should a spa business look for?
Opportunities can arise from changes in technology, government policy, social patterns, and local events.
p.6
SWOT Analysis Fundamentals
What are some weaknesses identified in the business?
Little market presence, small staff with shallow skills, vulnerability to staff turnover, and unreliable cash flow.
p.10
Forms of Business Ownership
What factors should be considered when choosing a form of ownership?
Vision regarding size and nature of the business, level of control, vulnerability to lawsuits, tax implications, expected profit or loss, and reinvestment of earnings.
p.10
Elements of a Successful Business Plan
What is the purpose of a business plan?
To ensure that everything that can be done has been done before opening, and to express how the business will operate and the expected results.
p.10
Elements of a Successful Business Plan
What are the key components of a business plan?
Action plan, business plan, fixed expenses, goals, mission statement, objectives, SMART criteria, strategic planning, SWOT analysis, values, variable expenses, and vision statement.
p.9
Elements of a Successful Business Plan
What supporting documents might be required for a business plan?
Tax returns, lease agreements, licenses, and résumés of principals.
p.8
Elements of a Successful Business Plan
What should a spa manager do to create a good business plan?
Be willing to gather relevant information and understand what is needed before starting.
p.5
SWOT Analysis Fundamentals
What is a strength of a small spa business?
Flexibility to adjust quickly to changing needs due to its size and small number of managers.
p.5
SWOT Analysis Fundamentals
What financial advantage does a small spa business have?
Low overhead costs allow for offering good value to customers.
p.3
Creating a Vision Statement
What is an example of a vision statement from Amazon?
To be earth’s most customer-centric company; to build a place where people can find and discover anything they might want to buy online.
p.3
Developing a Mission Statement
What should a well-crafted mission statement identify?
The purpose, the business, and the value.
p.6
SWOT Analysis Fundamentals
What opportunities exist for the business?
Expanding customer base, local government support for marketing, and competitors slow to adopt new technologies.
p.7
Goals, Objectives, and Action Plans
What characterizes realistic objectives?
Realistic objectives acknowledge uncontrollable factors and are challenging yet attainable with available resources.
p.7
Goals, Objectives, and Action Plans
What is an action plan?
An action plan lists strategies and allocates resources necessary to achieve established objectives and goals.
p.6
Strategic Planning Process
What is the purpose of a strategic plan?
To determine where the organization stands, where it wants to go, and how it will get there.
p.7
Goals, Objectives, and Action Plans
What strategy can a destination spa use to increase treatment hours?
Offering customers the option to extend their scheduled treatment with complimentary services, tracked monthly.
p.3
Creating a Vision Statement
What is the main purpose of a vision statement?
To articulate the ultimate destination of your spa business.
p.6
Strategic Planning Process
What is strategic planning?
The formal consideration of an organization’s future course, typically looking one to five years ahead.
p.6
Goals, Objectives, and Action Plans
What are the key elements of a strategic plan?
Goals, objectives, and action plans.
