10 Steps to a Financially Solvent Spa

I0 Financial Success Factors of Top Spas

1. Make profits by controlling expenses
 
2. Operating expenses no more than 60% of gross revenues
 
3. Total payroll less than industry average
 
4. Produce weekly and monthly financial reports
 
5. Make comparisons of actual to projected revenues and expenses
 
6. Top 5% generate 30% return on revenue
 
7. Profit center manager's compensation tied to the bottom line
 
8. Capital reinvestment of 4-6% of gross revenues for new equipment and services
 
9. Look at results from every revenue producing area (RPA)
 
10. Compare balance sheets to budget projections