COVID-19 Pivots: 5 Steps for Spas Who are Changing Their Spa Model

Well, it’s official: at the time of publication it has now been around six weeks that the spa industry has been shut down due to COVID-19! 

As both a former spa owner myself and a current spa business coach residing here in Victoria, British Columbia, I’ve watched as the COVID-19 crisis has turned our industry upside-down and shaken out all the things— both the positives and the negatives. Meaning? We’ve been given a lot of free time to consider what’s been working for our spa businesses, what hasn’t, and, most importantly, what needs to change… which is an opportunity many of us haven’t had the time to consider before amid our daily hustle!

Here in Canada our spas have been closed since mid-March, which has given us tons of free time to dwell on these things (as well as the financial and emotional stresses that has accompanied these COVID-19 closures): throughout these closures I have held live coaching sessions on spa business continuity plans, potential spa business marketing pivots for during closures, crisis-oriented leadership shifts spa owners and managers need to be making, retail advice, how to prepare for your spa’s reopening, and, last but not least, measuring your spa business’s success post-COVID. 

Today, though? Today I’ll be delving into the clarity that this “thinking time” has given many spa owners and estheticians… and the five steps you need to be taking if you are intending to change up your business model, services, or retail offers once your physical location reopens.

But Before That: the Pivots that COVID-19 Has Encouraged in Spa Businesses

The first? Online retail!

Before COVID-19, the spa industry at large was slow to include eCommerce into its revenue stream… which is why this situation has opened up spa owners’ eyes to the power eCommerce has to bolster their cash flow! 

Both coaching and digital marketing clients of mine who had set up online stores before COVID-19 hit have praised eCommerce for keeping their businesses afloat; some spa businesses have discovered that their eCommerce revenue stream is much stronger than they had assumed it would be and are now planning on pivoting their marketing to be dedicated to online sales in the wake of their success!

Many estheticians and spa business owners have witnessed the popularity of virtual consultations and appointments— services that, understandably, have boomed in the past months and will presumably continue to do so until a vaccine is developed. The result? For the first time, many spas are considering letting go of treatments that no longer excite them or are no longer generating reasonable profits.

Lastly, there are some spa owners who have come to the conclusion that they have lost their passion for esthetics or running their spa business and will use this pause to find another career focus. Is that a failure? Absolutely not! Life is all about change, and spa owners need to embrace what is best for them both personally and professionally— and what was best for you twenty years ago may not be what’s best for you now.

On the flipside, I’ve also chatted with spa owners who, rather than throwing in the towel, are done with leading teams and are ready to simplify their business model by going back to solopreneurship!

If you’re still caught in the COVID-19 crossroads and are craving the opportunity to chat with people who will empathize with you and your situation, head on over to my spa owners-only private Facebook group, Spa Business Mastery; it’s a community made by spa owners, for spa owners!

Now, without further ado... 

The Five Steps You NEED to Follow if You’re Pivoting Your Spa Business (Regardless of What that Pivot is!)

Step zero is the easiest: making the decision that you need to pivot! After that crucial decision has been made, the five steps below are the considerations you need to take into account before launching your new business model or revenue streams to your clientele.

• Plan and prepare: while it may sound obvious, in the spa industry we have many business owners who don’t really consider themselves business owners. Meaning? They like to wing it! Regardless of whether you’ve been in the “Well, things have worked out for me so far, so I don’t need a business plan!” camp or not, the more prepared you are the easier it will be for you to successfully implement your changes. If you don’t? Then you’ll have to be prepared to spend time and money on growth initiatives that will fall flat. Direction is key!

• Ask yourself how you will create, deliver, and capture value: although this may sound boring, setting “create, deliver, and capture value” as your mantra will save your spa business long-term regardless of the pivot you’re making. Essentially, these three components stand for creating value through clear features and benefits via your marketing; delivering value within your guest experience protocol; and capturing value through feedback and testimonials to display on your social media and/or website. Nail these three key points and you’ll be in good shape!

• Consider offering a beta test: if you are beta testing a new in-spa service then, of course, beta testing will have to wait until your physical reopening; however, if you are dipping your toes into eCommerce or virtual sessions then I can’t recommend beta testing enough (and ASAP!) Why? Because beta testing allows you to fail fast (meaning that you can see what falls flat quickly and allows you to fix those hiccups immediately), gives you the opportunity to work out bugs in the process, and gain precious client feedback before launching it to your whole clientele. 

• Decide if your pivot is scalable: Regardless of if your pivot is introducing virtual skin programs, focusing on eCommerce or eCourses, engaging with community groups, or anything else, you will need to decide if this pivot is scalable (and if it will need to scale). Will you be remaining a team or scaling back to solopreneurship (or the other way around)? Will you need to introduce new CRM? Reworking your internal systems and processes? Ironing out these points before making your pivot will make your life so much easier… and your pivot that much more profitable!

• Create a new growth strategy for your spa business pivot: You will absolutely need a new marketing growth strategy, regardless of the pivot you’re making; it will be crucial to attract new clientele for your pivot, alert your existing clientele to your shift, and reframe your spa business to accommodate the change. For example, if you’ve had success with your new eCommerce store then you will 100% need to focus on an eCommerce marketing strategy (which is much different than your brick-and-mortar strategy!) Otherwise, you’ll simply be passively waiting for consumers to show up… and, in turn, waste the excellent revenue stream you have at your fingertips. This includes crafting both a launch plan and a pivot continuity plan.

Be sure to drop me a line to let me know: are you pivoting your spa business? If so, what pivots are you making? If you’re feeling like your head is about to explode from everything you have to take into consideration, take a deep breath and remember that the spa industry community is here to support you— and that I am always here to offer a new or different perspective if you’re in need of guidance.

In light of the insane stress spa owners are under right now (especially you, working-from-home parents!) I am now offering limited-time 60-minute “Spa Business Recovery” strategy calls! These calls are perfect for spa owners or estheticians looking for affordable coaching, who aren’t looking to commit to a full coaching program, and need action steps and/or clarity during this difficult time. Want to pick my brain? That’s what I’m here for!