I wanted to share with you today about how I SOLD my day spa for $70,000. As you are building your business keep in mind that you may want to retire one day, or your circumstances might change. I remarried and decided to have a baby, this was NOT the plan when I started my spa.
You can build a more “sellable” business by keeping a few things in mind.
1.Build a business and a brand, not a private practice. Think about your business name and setting up systems that someone else could easily learn and step into. It’s easier to sell “Downtown Day Spa” than “Mary’s Massage” because there is only one Mary.
2.Keep your bookkeeping up to date and very clean (no cash in the pocket). This will help to determine the selling price of your business, and show potential buyers what they can expect for their investment. I was able to show yearly business income from $100,000 – $250,000 and my CPA met with the buyers as well. Another factor that determines the price of a business is the inventory, furnishings and fixtures, so keep track of everything that you purchase.
3. Encourage clients to see different therapists at your business. They will be more likely to stay and/or see anew owner if you have people switch around from time to time. I started working at the front desk more and transitioning clients, I think most of them stayed.
4. Have a variety of services and retail products. Spa services and retail products increase your income and the value of your business! A buyer will be looking at things like the average amount that a client spends, so why not increase your income WHILE increasing the value of your business.
I ended up selling my business to an investor, and truthfully I didn’t feel very good about it. It was my baby and I wanted somebody with the same passion I had to buy it. Well as it turns out, he resold it to a therapist that I met just last year. She told me that as a single mom the spa had supported her and her kids for the past seven years! She also invited me back anytime, so you just never know what will happen! It all worked out and she is still there running the spa. You can’t predict the future, but you can certainly take steps to prepare.
Did you know that I have a membership program full of business start up, marketing classes, spa classes, Ebooks and done-for-you massage and spa marketing materials? All that, PLUS monthly webinars, a private members only group? Let me know if you have ANY questions.
Membership includes over $2,000 in classes and resources for a low yearly or monthly payment. Check it out HERE!