I hear it a lot of comments these days from spa owners and other businesses that the economy is affecting them in a bad way.

"Business is slow"
"I can't make any money"
"There aren't enough clients coming in"
 
While all of these remarks are disheartening, they bring about the reality that some people were running their businesses very close to the edge. Now that there is a dip in sales, they are unable to get by and don't know how to cut costs or improve their revenues to keep things going.

While what I do primarily with businesses is to help them improve their business rather than close down or sell to an investor, this is sometimes the best option for folks. Read below to see amy comments about making that kind of investment in response to Skip Williams on the Day Spa Association blog.

"There can be tremendous opportunities in saving a drowning spa. As you said, any investor considering this absolutely must have a thorough analysis done of the financials for the business they are planning to purchase.

So many times clients have called me AFTER the purchase in a panic. They are in a state of shock as to why they can’t make money either and are in fact often losing money worse than the previous owner was. This is usually due to a lack of due diligence on their part and failure to get the help of a consultant who is familiar with the industry. They don’t have a good understanding of the numbers and act without getting an objective, experienced opinion on the purchase.

For anyone who is looking at making this type of investment or starting up their own spa, I strongly encourage you to hire a consultant that can steer you and your new business in a profitable direction

Follow the link below to read the whole post.
http://dsaprof.wordpress.com/2008/04/30/new-opportunities-for-investing-in-spas-right-now/#comment-39