Spring is a good time to re-evaluate your personal goals. During these challenging economic times, it’s important to do the same for your business too.

If you’re struggling with cash flow issues, here are five options to consider:

1. Enlist the help and support of your staff.

Be frank about the current economic conditions and their impact. Tell them that now is the time to work smart, and challenge them to look for ways to cut costs. Post the best suggestions in the employee lounge, such as reduction in linens needed or back bar product usage. Celebrate the best suggestions.

2. Be proactive with your creditors.

Many businesses now face cash flow issues. If you find yourself in this situation, contact creditors and ask them if your payment terms can be extended. Make sure you demonstrate your ability to quickly repay loans in the future.

3. Discuss rent relief with your landlords.

Speak collaboratively with them–they’re not the enemy. Landlords would rather have a business pay something than vacate a space.

4. Focus on retaining existing clients.

Plan a client appreciation day with specials and discounts to thank them for being your customer. Ask them to bring a friend. People appreciate being appreciated.

5. Address your inventory.

Inventory can be a quick source of cash. Take the items that aren’t selling well and mark them down. Offer clients a skin analysis and discount on a product that suits their skin type. This brings value to the client, helps move inventory and brings cash in the door.

Erika Mangrum
Owner, Iatria Day Spas (www.iatria.com)
DAYSPA Advisory Board

Debi Barnes
Owner, Turtle Cove Spa (www.turtlecovespa.com)
Mount Ida, Arkansas

Late last year, independent market analyst Datamonitor released its
annual “Trends to Watch in Packaged Goods� for 2009. Beauty foods, nonenergizing drinks and detox products top the London-based firm’s forecast list.

Here are its revelations, along with their possible impact on the spa industry:

Relaxation Drinks

Spin: Get ready for more relaxing drinks rather than those that energize. New product offerings include Drank by Innovative Beverage Group, which is dubbed the “world’s first extreme relaxation beverage.� Also hitting the market in the Philippines is Nescafé Relax, a decaffeinated coffee infused with chamomile.

Spa: Capitalize on this trend by marketing services that promote better relaxation, stress reduction and deep sleep. Serve teas and juices that enhance these benefits.

Edible Beauty

Spin: The new way to look beautiful is with an emerging generation of specially formulated foods and drinks. Nestlé’s Glowelle Beauty Drink Supplement Powder fights signs of aging from the inside out with skin-beautifying antioxidants.

Spa: Embrace the wellness movement by hiring health professionals or nutritionists to extend and improve your clients’ quality of life.

Detoxification

Spin: Many new products promise to detoxify you in one way or another. Some use liver-friendly supplements such as dandelion root as active ingredients.

Spa: From body wraps to acupuncture to cellulite treatments, detox services can be used as powerful tools to promote well-being and weight loss.

Brain Power

Spin: A growing number of health products tout “good for your brain� ingredients such as DHA omega-3. In fact, mentions of the word “brain� in new food and beverage products worldwide have nearly tripled since 2006.

Spa: Brain-power facials and massages? Not a far-fetched idea, as both increase circulation and brain-wave activity, which provide an improved state of awareness and alertness. Send your clients home with fun crossword or Sudoku puzzles to sharpen their mental acuity.

Rhonda J. Wilson,
Executive Editor, DAYSPA