Advanced management & operations

1
1
Welcome
Advanced
Operations and
Management
June 23,24,25
2008
http://www.youtube.com/watch?v=GbweiP4_Mfs

1
2
DAY 1:
Operational Success- 9 to 5
Attitude & Motivation
“The Secret”
Leadership & Management
Getting your Operational Platform Right!
“Show Me the Money”
25 Strategies for Success
DAY 2:
Management Success- 9 to 5
Leadership Skills Sets
Hiring the Best
Train the Trainer
Multiunit Management “MUM”
DAY 3:
Raising the Bar- 9 to 2
Managing the Goal
Through Accountability
Following Up & Following Through
Time Management
Everyone Must Be In The Race
Extra Nuggets:
10 Thoughts on Management
J.P.’s 100 Tips for Success
Business & Leasing Terminology

1
3
DAY 1:
Operational Success- 9 to 5
Attitude & Motivation
“The Secret”
Leadership & Management
Getting your Operational Platform
Right!
“Show Me the Money”
25 Strategies for Success

1
4
Brandy,
Testimonial: Advanced Sales
Training
I recently attended the Advanced Sales Classes, and have already seen a
difference. I came back from the classes with much enthusiasm and
created excitement in my sales team by holding numerous "classes" to
implement the new techniques learned. Our overall sales have increased
15%, when compared to last May!! The largest improvement has been in
Membership Sales.
I think a light went off in their heads...they finally got it!! They have even
admitted how easier it is to sell a membership with these simple changes.
I just got off the phone with my Spa Consultant and she informed me that
they each sold three Spa Memberships this week alone! What fun!
Anyone who doesn't take advantage of this great tool is foolish. Thanks
again for the help.
Monica Wolf

1
5
Steve,
Testimonial: Advanced Sales
Training
I sent a friend, Gretchen, into your store with my business card for three
complimentary sessions two days ago. I am thrilled to tell you that she
phoned me last night and went on and on about how she fell in love with
it! She said that the staff was very attentive, informative, and friendly. The
best part is that she originally wanted to go in because she had never
tanned before and wanted to try it out but she came out completely sold
on hydration (she called this a full body steam cleaner) and lumiere. You
should pass on kudos to your new manager for effectively communicating
our overall concept and converting a “tanner” to a wellness enthusiast
simply by caring enough to educate them. Gretchen is going back today
planning on signing up on an EFT and is bringing another one of our
friends with her.
Way to go uptown!
Alicia L. Conforto

1
6
OOppeerraattiioonnss
The nuts and bolts of operational
issues of the company
Composed of a wide range of day to day
activities including:
o Hiring, motivating, and firing employees
o Developing compensation plans
o Keeping relations with vendors/outside resources
o Deciding on who will do the accounting/ book keeping for
the company
o And many more…

1
7
LEADERSHIP
Management & Operations
is like running a tight ship
….and That Takes
LEADERSHIP!

1
8
The Price of Leadership is
Responsibility
….and part of that
responsibility is to stay positive
whether you feel like it or not.
The Attitude of the Leader will
determine the Attitude of the team!

1
9
Leadership
“GIVE A MAN A FISH-YOU
FEED HIM FOR A
DAY”
Teach him how to fish and you
feed him for a life time.

1
10
How to Manage & Operate a
Successful Planet Beach Contempo
Spa
It’s About…
ATTITUDE!

1
11
You Must Be In It To Win
It
Running a successful business is
like a SPORT…It takes courage,
commitment, conviction, and
confidence to win!

1
12
Attitude
The longer I live, the more I realize the
impact of attitude on life. Attitude, to me, is
more important than facts. It is more
important that the past, than education, than
money, than circumstances, than failures,
than successes, than what other people think
or say or do. It is more important than
appearance, giftedness or skill. It will make or
break a company…a church…a home.

1
13
Attitude
The remarkable thing is we have a choice
every day regarding the attitude we embrace
for that day. We cannot change out past…we
cannot change the fact that people will act in
a certain way. We cannot change the
inevitable. The only thing we can do is play
on the one string we have, and that is our
attitude…I am convinced that life is 10% of
what happens to me and 90% how I react to
it. And so it is with you…we are in charge of
out Attitudes. -Charles Swindoll

1
14
‘You’ve Got To Be a Fighting
Rooster’
“You’ve got to be a fighting
rooster. You’ve got to get
out there and preen those
feathers and look like you
know what you’re doing
and hope you know what
you’re doing and have a
good time.”
-Pierce Brosnan

1
15
‘You’ve Got To Be a Fighting
Rooster’
“You struggle with money. You
struggle without money. You
struggle with love. But it’s how you
manage. You have to keep laughing,
you have to be fun to be with, and
you have to live with style-not
fancy-schmancy, but in a way
which is present and meaningful
and has some beauty to it.
-Pierce Brosnan

1
16
What it Takes to be Number
ONE
http://mk1.netatlantic.com/t/765377/8627015/3178/0

1
17
The Secret
http://www.youtube.com/watch?v=_b1GKGWJbE8

1
18
I Thought I Would Get a
Plan?
When you bought the Franchise,
no one ever taught you how to be a
franchisee.
You’re not opening a Planet Beach
Contempo Spa, you’re opening a
BUSINESS!

1
19
WHAT ARE TTHHEE 44 SSKKIILLLLSS AANNDD
QQUUAALLIITTIIEESS TTHHAATT AA SSMMAALLLL
BBUUSSIINNEESSSS OOWWNNEERR MMUUSSTT AACCQQUUIIRREE
OORR PPOOSSSSEESSSS TTOO BBEE SSUUCCCCEESSSSFFUULL??

1
20
It's Easier Than You Think
““AN EXPERT IISS AA MMAANN WWHHOO KKNNOOWWSS
JJUUSSTT TTHHAATT MMUUCCHH MMOORREE AABBOOUUTT HHIISS
SSUUBBJJEECCTT TTHHAANN HHIISS AASSSSOOCCIIAATTEESS.. MMOOSSTT
OOFF UUSS AARREE NNEEAARREERR TTHHEE TTOOPP TTHHAANN WWEE
TTHHIINNKK.. WWEE FFAAIILL TTOO RREEAALLIIZZEE HHOOWW
EEAASSYY IITT IISS,, HHOOWW NNEECCEESSSSAARRYY IITT IISS TTOO
LLEEAARRNN TTHHAATT FFRRAACCTTIIOONN MMOORREE..””
--WWIILLLLIIAAMM NN.. HHUUTTCCHHIINN

1
21
44 SSkkiillllss ttoo bbee SSuucccceessssffuull
11)) SSaalleess SSkkiillllss
- Always selling someone (whether it ’s your
customers
employees, or vendors
22)) MMaannaaggeemmeenntt && OOppeerraattiioonnss
-- Employees must have a good leader & operational
platform
33)) BBuuddggeettiinngg && FFiinnaannccee
- Budgeting/Business Performa/Plan
- Reporting on financial performance of company
44)) MMaarrkkeettiinngg SSkkiillllss
- Everyone has to market her product…no one is
exempt

1
22
Challenges of Small Business Owners
AAccccoorrddiinngg ttoo tthhee UU..SS.. SSmmaallll BBuussiinneessss
AAddmmiinniissttrraattiioonn,, rroouugghhllyy 5500%% ooff ssmmaallll bbuussiinneesssseess
ffaaiill wwiitthhiinn tthhee ffiirrsstt ffiivvee yyeeaarrss..
Some of the top reasons for failure include:
1) Lack of Experience
2) Poor location
3) Unexpected Growth
4) Insufficient Capital

1
23
The Hard Work Will Pay Off!
OOnnccee SSuucccceessssffuull,, yyoouu wwiillll:
oHave a sense of accomplishment
oKnow the thrill of creation
oFeel the pride of watching your creation grow
oRealize that your work & vision have filled an
identifiable void for your customers, employees,
and family

1
24
Winning is Everything
“WHAT IS THE MOST
CENTRAL TO BUSINESS?”
They joy of creativity; teaching
our people how to create
business.
How to win, how to be top
producers!

1
25
“What is Our
Business?”
To satisfy the customer is the
mission and purpose of every
business!

1
26
What is PROFIT?
If you don’t have it…You won’t have a
Business
A day is surely sadly done when you
do a day’s business just for fun.
Henry David Thereau

1
27
Creating
Tomorrow
You Cannot Change Today, You
can Only Change Tomorrow.
What is happening today is
already in motion.
Spa Directors and Assistant Spa
Directors have to create
tomorrow!

1
28
Efficiency &
Effectiveness
Effectiveness is the foundation of
success– Efficiency if a
condition of survival after
success has been achieved.
Efficiency is concerned with
doing things right–
effectiveness is doing the right
things

1
29
MMaannaaggeemmeenntt && OOppeerraattiioonnss
MMaannaaggeemmeenntt= most important of all business
plan categories!
oThe success/failure of a business
hinges on the quality of its
management & operation platform

1
30
Manager
Focused
These 3 days will be manager
focused.
Great Management is a
Taught Discipline: It is a
sum of knowledge to
perform tasks through
people.

1
31
From Objective To Doing
Without action all is wasted!
Specific and concrete work assignments
with clear defined goals, with
deadlines and clear accountability is
the end product of analysis.
Unless objectives are converted
into action, they are not
objectives and goals, they are
only DREAMS!

1
32
Manage to Our
Mission
Mission
Statement
For the benefit of our customers and the
communities we serve. We will remain dedicated to
the continued success of each Planet Beach
franchise.
Our franchise locations will provide superior
customer service with an inspiring, alternative
atmosphere
Planet Beach will deliver premier wellness,
relaxation, UV Therapy and skin rejuvenation
services that enhance the contempo spa experience.

1
33
Manage to Values
Statement of
Values
Good PEOPLE who BELIEVE in
the product, who have
professional INTEGRITY and
know how to FOCUS on
achieving all GOALS.

1
34
Planet Beach Organization
Chart
OUR MEMBERS & GUESTS
FRONT LINE STAFF
SPA DIRECTOR/
ASST. SPA DIRECTOR
FRANCHISEE

1
35
Organization Chart
Explained The Inverted Pyramid Model
Most organizations are pyramidal in
nature with owner at the top.
There’s nothing wrong with the
pyramid but who’s at the bottom?
The people who do all the work!
What IS wrong is when people see
the pyramid as each level working
for the level above them.

1
36
Organization Chart
Explained
We turn the pyramid upside down so that no
one staff person is on top.
We put members and guests at the top because
most service organizations fail because the staff
is spending all their time responding to the top
boss instead of responding to the member!
The management works for their people. They
are responsive to the staff. Managers help their
staff win!
The staff is responsible for high quality SERVICE
MAGIC.

1
37
Our Commitment
The spa’s success is based on your job
satisfaction and the relationship you have
with your co-workers and the members.
We will provide you with appropriate
training, recognition for a job well done,
and an equitable opportunity to meet your
personal financial goals so you can become
a happy, productive team member. With a
productive team, we can stay focused on
the spa’s primary goal: Keeping our
members first in everything we do.

1
38
Commitment
To do this, our management and staff are
committed to the following:
1) Hiring talented and dedicated people and paying
them competitive salaries
2) Creating an atmosphere of trust, teamwork, and
confidence so each team member can excel and
grow as an individual
3) Working together to create a financially strong
company that continues to invest in its members
and staff. The team members also provide
support for each other as they achieve individual
& company goals

1
39
Commitment
4) Accepting the changes that come with personal
and professional growth
5) Agreeing to negotiate resolutions to all
complaints and concerns
6) Having pride in the work and service we provide
to our members
7) Consistently exceeding our members’
expectations

1
40
What One Man Can Do Another Can
Do!
It is fashionable today to talk of
revolt against authority and
proclaim that everybody should
“Do your own thing.”

1
41
Stress Responsibility &
Performance
I’m sorry that this advanced
operations & management
training will completely go
against this train of thought.
I will not talk about rights; but I
will stress responsibility
WITH A CLEAR FOCUS ON
PERFORMANCE &
PROFITABILITY!

1
42
SSHHOOWW MMEE TTHHEE
MMOONNEEYY!!
$$11,,000000,,000000
SSPPAA

1
43
JJeerrrryy MMaagguuiirree
Show Me the Money!
http://www.youtube.com/watch?v=OaiSHcHM0PA

1
44
MMiilllliioonn DDoollllaarr
SSppaa!!
LLoonnggvviieeww,, TTXX

Are you making too much 1
Money?
I am confident the answer is NO. We have solutions to improve your bottom
line. If you have not looked at the rankings on ORION we challenge you to do so
immediately.
TX055 Longview. Texas put $94,600.93 in the bank for May 2008 and a total of
$467,445.00 from January-May. That is more than most locations do in
a year. That’s $93,489.00 per month, projecting $1,121,868 for the year!!!
Planet Beach Contempo Spa’s 1st Million Dollar Spa!
This location has not been airlifted to another spot to increase traffic. They have
the true essence of SPA. They have skincare and retail sales over $132,799 for
the year, or $26,600 per month average. Ask yourself do you want to have
results like that? What are they doing that you are not?
45

1
46
How are they doing it??
The answer…They are a true Contempo Spa
and you are still operating as a tanning
salon. Just because you have SPA
equipment does not mean you are operating
as a Contempo SPA. There are two huge
MUST HAVES to achieve these results.
Staffing for Success and Education on
How to Operate a True Contempo Spa!!

1
47
Getting Your Operational Platform
Right
1)Make the Invisible- Visible
2) Staffing for Spa Success
3) Operating a Contempo Spa Not a Tanning
Salon

1
48
Make the invisible- Visible
“Make a physical change and a
mental change will take place!”
-Pat Riley

1
49
Contempo Spa The
Movie
You Must use your
imagination to picture a
True Contempo Spa.

1
50
“The most common form
of stupidity is forgetting
what one is trying to do.”
“What ’s Your main
focus?”

1
51
Focus on Your Main
Goal
IIff yyoouu cchhaassee ttwwoo
rraabbbbiittss,, yyoouu wwiillll
cceerrttaaiinnllyy ccaattcchh
nneeiitthheerr..””
JJ..PP..

1
52
Contempo Spa
History
 We have been selling,
 the same product;
 the same way,
 to the same people for some time
But hey wait…things are pretty good-why
change? Or Are they????
Because a huge opportunity exists in our
industry and is very powerful

1
53
TTAANNNNIINNGG IISS DDEEDD!!
• DDAARRKK TTAANNNNIINNGG IISS
OOUUTT!!
• HHEEAALLTTHHYY GGLLOOWW IISS IINN!!

1
54
CORPORATE EE--MMAAIILL ((SSTTEEVVEE
SSMMIITTHH))
I was reading a new tanning trade publication yesterday and I
was amazed at how the tanning industry is still in utter
denial of marketplace reality. In an article about the
German tanning market (Germany is the mother land of
indoor tanning), out of 8000 tanning salons, 1800 went
bankrupt in 2006 alone. The article blames the decline on
price wars and poor quality...how about supply and
demand stupid! The publication is full of statements such
as "today's tanning customer is more demanding"...duh!
Nobody drives a horse carriage anymore. Fortunately, we
asked ourselves why this was happening to UV tanning two
years ago and then we went about changing our market
position to that of a "Contempo Spa", as you all know.

1
55
Corporate EE--mmaaiill ((ccoonntt……))
Additionally, in this new publication it is reported that according to a
Smart Tan customer survey in May of 2005, “From 1998 to 2005,
consumer confidence in tanning has dropped in the U.S. from 70% to
16%.” In spite of evidence such as this from the industry educational
leader, the tanning industry as a whole remains stumped as to why
their market is in decline. They can’t seem to see that no industry
can sustain that much bad press for that long. Needless to say, PB in
on the right track.
May, 2008-What’s the popularity of tanning now?

1
56
WANT A SSEEAASSOONNAALL BBUUSSIINNEESSSS??

1
57
TTHHEE BBUUGGGGYY WWHHIIPP
QQUUEESSTTIIOONN:: WWHHAATT IISS IITT??
http://youtube.com/watch?v=MfL7STmWZ1c

1
58
GM * Ford *
Chrysler
“Failure to Realize what the Public
Wants”
Gas Mileage!

1
59
WWiinn oorr
DDiiee!!
We are in a battle for our
very existence.
There is “do” or “do not”.
There is no “try”.
Yoda
http://www.youtube.com/watch?v=1FLgLJnZgjE

1
60
We are iinn aa rreecceessssiioonn--22000088
People are stressed out of their mind with
uncertainty. Fear, Fear, Fear
Stocks Plummet as Oil Prices Soar
Gas approaching $5 per gallon
Massive layoffs projected
Interest Rates- Where will they be?
Who will be our President? Our Leader? Can he save us?
War in Iraq-Iran? When? How Long? How much$$?
Housing Market in the tank. Losing Money. Foreclosures.

1
61
If life gives you lemons, make lemonade!
The last recession wiped out 500,000 small
businesses. The recession is going to dramatically
effect you and your Planet Beach Contempo Spa
business. When you are prepared for change, you
won’t just survive, you’ll thrive.
How to profit during the recession of 2008 and
beyond?

1
62
RReeaaddyy ttoo RReellaaxx??
We have the ultimate stress reducer at Planet Beach
Contempo Spa.
Where people can immerse themselves in total
tranquility, where they can relax, rejuvenate, recharge
themselves.
Planet Beach Contempo Spa is the ultimate retreat from
the everyday. A place to relax and to revitalize the mind,
body and spirit.
We have the perfect prescription for anti-recession!!

1
63
Stress! Stress! Stress!
Planet Beach Contempo Spa is a Stress Buster
Don’t kid yourself, stress ages you faster
than anything else:
Stress is a killer…
In fact the world health organization
estimates that 80% of ALL ILLNESSES are
directly or indirectly caused by STRESS.
Therefore, if you’re not proactive in
busting stress, it’s very likely to come back
and bust you!

1
64
Whack-A-Mole
http://www.youtube.com/watch?v=A2pUe8FiHFA&feature=related

1
65
Organizational Chart & Job
Descriptions
Who
Is
Going
To
Do
What
By
When
And
How?

1
66
T.E.A.M.
Motivation and Teamwork
& your Operational Platform
are the Keys to Total Success
for your Planet Beach
Contempo Spa
T = Together
E = Everyone
A = Achieves
M = More

1
67
Danger iinn tthhee CCoommffoorrtt
ZZoonnee OOuurr ccoommffoorrtt zzoonneess ccaann bbee
oouurr ggrreeaatteesstt eenneemmyy ttoo oouurr
ppootteennttiiaall aanndd ssuucccceessss..
WWee mmuusstt eemmbbrraaccee tthhee
cchhaannggee ffrroomm TTaannnniinngg SSaalloonn
ttoo TTaannnniinngg SSppaa ttoo ttoottaall
CCoonntteemmppoo SSppaa..

1
68
WWAALLKK TTHHEE TTAALLKK NNEEWWSS
TThhee DDaaiillyy MMoottiivvaattiioonn
““IInn lliiffee,, CChhaannggee iiss tthhee
iinneevviittaabbllee..
IInn bbuussiinneessss,, cchhaannggee iiss vviittaall..””
WWaarrrreenn GG..
BBeennnniiss

1
69
Tell It Like It Is!
It’s about accountability &
individual performance.
Level with your people, tell it like
it is.
We are going to be going
through a change– Its going to
be challenging.
It may be better for some of you
to move on.

1
70
TThhee ““44”” TTrruutthhss ooff
CChhaannggee
1.) Change in business is necessary. Or Die!
2.) Change is an absolutely critical part of
business!
3.) Only true believers in change will succeed!
4.) Ferret out resistors, even if their performance
is satisfactory or you will not succeed!

1
71
Change
“Perhaps the biggest pitfall you face
is assuming that what has made you
successful to this point in your career
will continue to do so. The dangers of
sticking with what you know,
working extremely hard at doing it,
and then failing miserably are very
real.”
- Michael Watkins

1
72
Business Model Change?
Franchise Times (April 2008 Article)
“The Numbers Game” by Wendy Webb
Sometimes companies start out
doing one thing and end up
specializing in another.

1
73
Changes in the demand for your product or service.
Companies that are impacted
positively or negatively by a
change in demand need to stay
ahead of that curve.

1
74
Rebirth of an Eagle
http://www.youtube.com/watch?v=J65MycJKwgw

1
75
JJoohhnn KKootttteerr:: OOuurr IIcceebbeerrgg iiss
MMeellttiinngg
HHooww ttoo LLeeaadd BBoolldd CChhaannggee
“More and more people have to
understand how the world is changing,
the need for change, and how change
works when it works well…”
- J. Kotter
http://www.youtube.com/watch?v=Gh2xc6vXQgk

1
76
Change: GET REAL
Transforming
Organizations Must Do’s
1) URGENCY = focus on what matters and DO IT! NOW!!
2) LEADERSHIP = Create vision of “What business we are in” To
Achieve Market Advantage
3) STRATEGY = New information. Everyone must be aware of
new goals, new operator platforms, and how it is achieved.
4) PRESSURE TO PERFORM = Do it Now! Everyone is
accountable for performance OR LEAVE!

1
77
Change
It is not necessary for a
business to grow bigger, but
it is necessary that it grow
BETTER!

1
78
Kotter’s 8 Steps ttoo SSuucccceessssffuull
CChhaannggee
11)) IInnccrreeaassee uurrggeennccyy
22)) BBuuiilldd tthhee gguuiiddiinngg tteeaamm
33)) GGeett tthhee vviissiioonn rriigghhtt
44)) CCoommmmuunniiccaattee ffoorr bbuuyy--iinn
55)) EEmmppoowweerr AAccttiioonn
66)) CCrreeaattee sshhoorrtt--tteerrmm wwiinnss
77)) DDoonn’’tt lleett uupp
88)) MMaakkee iitt ssttiicckk

1
79
Step 11:: CCrreeaattee UUrrggeennccyy
What You Can Do:
o Do it now! Procrastination is suicide on the installment plan.
o Examine opportunities that should be, or could be, exploited
with time frames.
o Start honest discussions, and give dynamic and convincing
reasons to get people working on the change with time frames.
100% of the team needs to “buy into”
the change NOW!

1
80
Step 2: BBuuiilldd tthhee GGuuiiddiinngg
TTeeaamm What You Can Do:
o Convince people that change is necessary
oWork on team building within your change coalition.

1
81
Step 3: Create aa VViissiioonn ffoorr
CChhaannggee What You Can Do:
o Determine the values that are central to the change.
o Develop a short summary (one or two sentences) that
captures what you "see" as the future of your organization.
o Ensure that your team can describe the new vision in three
minutes or less.
o Practice your "vision speech change” often.

1
82
Step 44:: CCoommmmuunniiccaattee tthhee
VViissiioonn What You Can Do:
o Openly and honestly address peoples' concerns and
anxieties.
o Apply your vision to all aspects of operations – from training
to performance. Tie everything back to the vision.
o Lead by example.

1
83
Step 5: Remove Obstacles && EEmmppoowweerr
AAccttiioonn What You Can Do:
o Identify, or hire, people/eagles who will embrace and deliver
change.
o Look at your organizational structure, job descriptions, and
performance and compensation systems to ensure they're in
line with your vision.
o Recognize and reward people for making change happen.
o Identify people who are resisting the change, and help them
see what’s needed or remove them.

1
84
Step 6: Create SShhoorrtt TTeerrmm WWiinnss
What You Can Do:
o Look for sure-fire projects that you can implement with team
targets for the change.
o Don't choose early targets that are expensive. “Baby steps”
oReward the people who help you meet the targets

1
85
Step 7: Don’t Let Up. BBuuiilldd oonn tthhee CChhaannggee
What You Can Do:
o After every win, analyze what went right and what needs
improving.
o Set goals to continue building on the momentum you've
achieved.
oKeep ideas fresh by bringing and using team suggestions and
strategies.

1
86
Step 88:: MMaakkee iitt SSttiicckk
What You Can Do:
o Talk about progress every chance you get. Tell success stories
about the change process, and repeat other stories that you
hear.
o Include the change ideals and values when hiring and training
new staff.
o Publicly recognize key members of your original change
team, and make sure the rest of the staff – new and old –
remembers their contributions.

KKootttteerr’’ss 88 SStteeppss PPuutt ttoo WWoorrkk
1
87
John Kotter’s 8 Steps ttoo SSuucccceessssffuull
CChhaannggee hhaavvee bbeeeenn pprroovveenn vvaalluuaabbllee
ttoo ssuucchh ccoommppaanniieess aass:: MMaasstteerrccaarrdd
WWoorrllddwwiiddee,, KKaaiisseerr PPeerrmmaanneennttee,, aanndd
BBllaacckk && DDeecckkeerr..

1
88
Staffing for Sales Success
Consulting vs. Selling
Getting your body count right can
make or break you.

Staffing and Operational 1
Platforms
Correct staffing and education
on operating a true Contempo
Spa are the KEYS to Financial
89
Success

1
90
How many Employees do I need?
Spa
Director Asst. Spa
Director
Spa
Consultant
Spa
Consultant Spa
Consultant
Spa
Consultant
Receptionist Bed Cleaners

1
91
You Can’t Send a Duck to Eagle
School
http://www.eagleschoolmovie.com

1
92
Hospitality =
Profit
“Hire Sunshine. Your front
line is your bottom line.”

1
93
Talent Goes
Downhill
“A 10 usually hires a 9. Focus
on getting an 11”

1
94
Hire for Ability as Well as
Hospitality
“You can’t train STUPID!”

1
95
80
What’s Your
Problem?
Fix your people
problems before you
fix your marketing
problems.

1
96
Staffing for Success
Recommended Spa Schedule
*see worksheet

1
97
For the Week of:
Prepared by:
10/18/2004
9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM Sick? TOTAL
Spa Schedule
Monday
Spa Director x x x x lunch x x x x x 9
Asst. Spa Director x x x x lunch x x x x x 9
Spa Consultant 1 0
Spa Consultant 2 x x x x lunch x x x x 8
Receptionist* x x x x x lunch x x x 8
Spa Consultant 3 x x x x lunch x x x x x 9
Total
Tuesday
Asst. Spa Director x x x lunch x x 6
Spa Consultant 1 0
Receptionist* x x x lunch x x x x x 8
Wednesday
Asst. Spa Director 0
Receptionist* x x x x lunch x x x x 8
Thursday
Asst. Spa Director 0
Receptionist* x x x x lunch x x x x 8
Friday
Spa Director x x x x 4
Asst. Spa Director x x x lunch x x x x x 9
Receptionist* x x x lunch x x x x x 8
Spa Consultant 3 0
Saturday
Spa Director 0
Spa Consultant 1 x x x x lunch x x x 7
Spa Consultant 2 0
Spa Consultant 3 x x x lunch x x x x 7
Open
Sunday
Spa Director
Spa Consultant 1 x x x x lunch x x x 7
Spa Consultant 2 0
Spa Consultant 3 0
Open
* *You should hire a receptionist once your Contempo Spa is open. This position is not necessary in a prev iew center.

1
98
OOppeerraattiioonnaall SSuucccceessss
AA wweellll--ddeeffiinneedd oorrggaanniizzaattiioonnaall cchhaarrtt
aanndd cclleeaarrllyy ddeeffiinneedd jjoobb ddeessccrriippttiioonnss
aanndd dduuttiieess aarree ccrriittiiccaall ttoo yyoouurr SSppaa’’ss
oovveerraallll ssuucccceessss..
““DDiiffffiiccuullttiieess mmaasstteerreedd aarree
ooppppoorrttuunniittiieess wwoonn..””
WWiinnssttoonn CChhuurrcchhiillll

1
99
Operational Procedures
Few people go to work intending
to perform poorly. Franchisees
and Spa directors must establish
high standards and operational
procedures for their staff and
show them how to pursue
excellence.

1
100
LLeetthhaarrggyy ooff
This coEEmnnpttiiattnlleeymm isee jnnuttst like one big,
happy family.
Ever heard someone say that?
Chances are, they’re stuck in
entitlement.

1
101
EEnnttiittlleemmeenntt
The result of too much generosity?
We give people what they expect and don’t
hold them accountable for meeting criteria’s of
excellence.
Why does that happen?

1
102
Hugs aanndd WWaarrmm FFeeeelliinnggss
Entitlement Answer:
Spa Directors/Franchisees are unwilling to do the
work requiring work.
Spa Directors and Franchisees that are not
focused on goals and rewards based on
productivity frequently create entitlement
because they want to avoid discord and bad
feelings. They don’t hold people accountable for
results.

1
Good performance, bad performance, or
no performance are all treated the same.
Entitlement happens when people feel they
have so much security, they don’t have to
earn their rewards or pay.
Remember, we’re going to WAR with a
RECESSION. Entitlement won’t cut it.
103

1
104
Great People Great Profits
Success…
My nomination for the single
most important ingredient is
energy well directed.
-Louis Lundburg

1
105
Jim Collins: Good to
“Why SGomree aCotmpanies
Make the Leap…
and Others Don’t”
“Good is the
enemy of
GREAT”
http://www.youtube.com/watch?v=3bR2Jlgg71Q

1
106
Are You a Fox or a
HedgeAhn oangc?ient Greek parable
explains the differences
between foxes and hedgehogs:
FOX
•Knows many things
and lacks consistency
•Cunning creature
•Able to devise
complex strategies
HEDGEHOG
• Knows one BIG thing
and sticks with it
•Dowdier creature
•Simplifies a complex
world into a single idea

1
107
So what separates those
who make the biggest
impact from all the others
who are just as smart??
THEY ARE ALL HEDGEHOGS!!
Hedgehogs are not stupid!!
They understand that the essence of
profound insight is SIMPLICITY

1
108
Hedgehog Concept: The Three
Circles
“It is not a goal to be the
best, a strategy to be the
best, an intention to be
the best, a plan to be the
best. It is an
understanding of what
you CAN be the best at.”

1
109
The Three Circles
1) What you can be the best in the world at (and what you can’t
be the best at)
-Good to Great companies understand that doing what you’re
GOOD at will only make you GOOD; focusing solely on what you
can potentially do BETTER than other organizations is the only
path to GREATNESS.
2) What drives your economic engine
- Must find a single “economic denominator”
- If you could pick ONE ratio– profit per x for example– to
systematically increase over time, what x would have the
greatest and most sustainable impact on your economic engine?
3) Understanding your passion
- The idea is not to stimulate passion but to discover what
MAKES you passionate

1
110
Why Greatness??
The real question is not, “Why
greatness?” but “What work
makes you feel compelled to try
to CREATE greatness.”
"Be not afraid of greatness:
some are born great, some
achieve greatness and some
have greatness thrust upon
them".
-William
Shakespeare

1
111
The inmates do not run the asylum!
Every customer and member MUST
wait to be consulted!

1
112
You must SLOW down.
Consulting is a contact sport.
You are a Contempo
Spa not a Tanning
Salon.
No more “Turn ‘em and
Burn ‘em!”
SLOW
DOWN
SPA AHEAD

1
113
Think Hospitality aanndd RReellaaxxeedd
AAmmbbiiaannccee
TThhiinnkk RRiittzz CCaarrllttoonn,, nnoott MMootteell
66..
TThhiinnkk RRuutthh CChhrriiss,, nnoott
MMccDDoonnaallddss..
TThhiinnkk VViiddaall SSaassssoooonn BBeeaauuttyy
SSaalloonn,, nnoott SSuuppeerrccuuttss
TThhiinnkk CCaannyyoonn RRaanncchh DDaayy SSppaa,,
nnoott MMaassssaaggee PPaarrlloorr

1
114
What ddoo yyoouu kknnooww aabboouutt……

1
115
MMootteell 66
We’ll leave the light on for you!

1
116
TThhee FFoouurr SSeeaassoonnss
Beyond Compare

1
117
RRiittzz CCaarrllttoonn BBaassiiccss

1
122
HOSPITALITY BBYY AAPPPPOOIINNTTMMEENNTT
OONNLLYY
TThhiinnkk CCoonntteemmppoo SSppaa!! NNoott TTaannnniinngg SSaalloonn!!

1
123
Services By Appointment OOnnllyy…… NNoonn--
NNeeggoottiiaabbllee
“We set up our
services by
appointment only.
Are you available
today or
tomorrow?”

1
124
SSttoopp TThhee IInnssaanniittyy!!
SSllooww DDoowwnn;; CCoonnssuulltt
YYoouurr CCuussttoommeerrss aanndd
MMeemmbbeerrss ffoorr SSaalleess
SSuucccceessss aanndd MMaaxxiimmuumm
PPrrooffiittaabbiilliittyy..
MMoovviiee NNeettwwoorrkk
hhttttpp::////wwwwww..yyoouuttuubbee..ccoomm//wwaattcchh??vv
==9900EELLlleeCCQQvveeww&&aammpp;;ffeeaattuurree==rreellaatteedd

1
125
The Critical Path ttoo YYoouurr SSuucccceessss
1.)Compliment and Direct
2.) Usage Consultation
3.) Skin Care Consultation
4.) Referral/Ambassador Program Consultation

1
126
What People Crave
Harvard school of law:
People crave 2 things
more than anything else
in this world…Repect and
Acceptance
“Enough about you.
Let’s hear about me.”
-Cynthia Heimel

1
Make Your Members Feel Important…
127
“Most of the trouble in
the world is caused by
people wanting to be
important.”
- T.S. Elliot
Not You

We must guide aanndd ccoonnssuulltt 1
oouurr
mmeemmbbeerrss ffoorr mmaaxxiimmuumm ooppeerraattiioonnaall
“We are what we repeatedly
do. Excellence, then is not
128
an act, but a habit.”
Aristotle
ssuucccceessss

1
129
11..)) CCoommpplliimmeenntt aanndd
DDiirreecctt
Every guest, customer, aanndd mmeemmbbeerr
sshhoouulldd bbee ccoommpplliimmeenntteedd aass tthheeyy
aarrrriivvee aatt yyoouurr ssppaa.. PPeeooppllee bbuuyy ffrroomm
ppeeooppllee tthheeyy lliikkee aanndd tthheerree iiss nnoo bbeetttteerr
wwaayy ttoo ggeett ssoommeeoonnee’’ss ffuullll aatttteennttiioonn
ootthheerr tthhaann ttoo ggrreeeett tthheemm wwiitthh aa
ccoommpplliimmeenntt..
YYoouu wwaanntt ttoo ggoo wwhheerree eevveerryybbooddyy kknnoowwss yyoouurr nnaammee::
hhttttpp::////wwwwww..yyoouuttuubbee..ccoomm//wwaattcchh??vv
==LLff55oojjddaakkppqq88&&aammpp;;ffeeaattuurree==rreellaatteedd

1
“My job is to take care of you. Please sit
down, relax and unwind! You deserve it.”
130
Ready, Set, Relax, Breathe, Indulge Yourself
It doesn’t get
any better
than this!

1
131
The Opportunity
Sell the Contempo Experience
This is The Great America Industry
• We do our jobs
• We produce very little waste
• We make people happier, healthier, more
relaxed, and less stressed
• We make money
SO…
Don’t just sell Memberships…
Sell the Experience, Inspire Lifestyles!
Make the Contempo Spa the
Third Space in People’s Lives
• They have work
• They have home
• We want to be their third place that
they not only want, but also NEED

1
132
22..)) UUssaaggee
CCoonnssuullttaattiioonn
CCoonnssuulltt tthhee cclliieenntt oonn wwhhaatt sseerrvviiccee
tthheeyy aarree uussiinngg;; ffiinndd oouutt hhooww tthheeyy aarree
eennjjooyyiinngg tthheeiirr sseerrvviicceess,, aanndd mmaakkee
rreeccoommmmeennddaattiioonnss oonn ootthheerr sseerrvviiccee
ooppttiioonnss..

1
133
UUssaaggee CCoonnssuullttaattiioonn
Planet Beach Contempo Spa is your
retreat from the every day. A place to
relax and revitalize the mind, body
and spirit. Spend and hour or two.
Our extensive range of spa and beauty
treatments will give you the balance
you desire and the tranquility you
deserve.

1
134
Regarding our
Lumiere Facial, we
suggest starting off
with two to three
sessions per month

1
135
33..)) SSkkiinn CCaarree CCoonnssuullttaattiioonn
Consult the client oonn tthhee pprroodduuccttss
tthheeyy aarree uussiinngg wwiitthh tthheeiirr sseerrvviicceess,,
aanndd aasskk aabboouutt tthheeiirr ssaattiissffaaccttiioonn iinn
tthhee rreessuullttss tthhuuss ffaarr.. SSuuggggeessttiivveellyy
sseellll aaddddiittiioonnaall pprroodduuccttss ttoo
pprroovviiddee bbeetttteerr rreessuullttss..

1
136
Let me ask you this…
Regarding Skin Care,
how important is
looking your very best
to you?

1
137
SSkkiinn CCaarree CCoonnssuullttaattiioonn
Planet Beach Contempo SSppaa iiss tthhee
wwoorrlldd’’ss lleeaaddiinngg lliiffee eennhhaanncceemmeenntt
cceenntteerrss.. EEnnrriicchh yyoouurrsseellff ttooddaayy!! WWee
bbeelliieevvee tthhaatt yyoouurr sskkiinn ddeesseerrvveess
oonnllyy tthhee bbeesstt.. TThhaatt’’ss wwhhyy wwee ooffffeerr
hhoolliissttiicc ssoolluuttiioonnss ffoorr tthhoossee wwhhoo
cchhoooossee aa nnaattuurraall aapppprrooaacchh ttoo
hheeaalltthh,, wweellllnneessss aanndd bbeeaauuttyy..

1
138
44..)) RReeffeerrrraall // AAmmbbaassssaaddoorr CCoonnssuullttaattiioonn
Consult tthhee mmeemmbbeerr oonn tthhee
ssttaattuuss ooff tthheeiirr rreeffeerrrraallss,, aanndd
WWIIIIFFMM wwiitthh tthhee ccuurrrreenntt
aammbbaassssaaddoorr ooffffeerrss aanndd
iinncceennttiivveess..

1
140
Referrals=Rewards and Retention
Referral’s have ggrreeaatt rreewwaarrddss ffoorr
oouurr mmeemmbbeerrss.. WWoorrdd ooff mmoouutthh
aaddvveerrttiissiinngg iiss tthhee bbeesstt aaddvveerrttiissiinngg..
IItt ccrreeaatteess llooyyaall,, lloonngg--tteerrmm,,
ssaattiissffiieedd mmeemmbbeerrss..

1
141
When your friend becomes a
member you will receive
1 Month FREE
When 5 of your friends become
members you will receive
1 Year FREE
Sponsor 10 people and receive a
Lifetime Membership
FREE

1
Spa’s do not come with customers. We have to create them.
142
Prospecting
Promotions
Referrals

1
143
Prospecting: Promotions and Referrals
Your prospecting-promotions and referral goals must be
linked to your spa goals with the focus on your reoccurring
revenue, your EFT goals for maximum monthly and yearly
Spa revenues, as well as profitability.
80% of your sales success must come from your staff…
ALWAYS! Franchisees and Spa Directors must train,
educate and hold your staff accountable for your spa’s
success along with their own success!

1
144
Remember…
THOSE WHO LIVE BY THE DOOR
DIE BY THE DOOR!!

1
145
Let’s bbrreeaakk ddoowwnn tthhee
MMiilllliioonn $$ SSppaa GGooaall bbyy tthhee
nnuummbbeerrss……

1
146
GGOOAALL RREEVVEENNUUEE
SSUUMMMMAARRYY
1. Monthly Net EFT $54,000/ mo.
2. Monthly Membership Cash $20,250/ mo.
3. Monthly Retail $9,084/ mo.
Total $83,334/ mo.
x 12 months =
TThhee $$11,,000000,,000000 SSppaa

1
147
HHooww ttoo EEssttaabblliisshh YYoouurr MMoonntthhllyy EEFFTT GGooaallss
•In order to reach the $1,000,000 Spa Goal, you must
have $54,000 EFT members established in 14
months (with 2 months of pre-sale) with projected
average monthly dues of $69 per member.
•$54,000/ $69 avg = 780 Total Members needed @
0% attrition rate of 13%; you must establish 900 EFT
Members.
•900 EFT Members over a 14 month period = 65 EFT
Members per month or 2 EFT members per day,
which includes the attrition rate of 13%.

1
148
Let’s do the Math…
$54,000 EFT Goal for Million Dollar Spa
-$20,000 existing Spa EFT now
$34,000 needed to hit $1,000,000 goal
Assuming a $69 average EFT per member
$69/$34,000= 492 new EFT members needed.
At a factored attrition rate of 13%, then goal of 566 new
members needed over a 12 month period, or 47 new
EFT members per month at $69 per month average.

1
149
Managing to your top and bottom line
Budgeting for growth in our new Contempo Spa model:
To obtain a $1,000,000 spa (or $83,333.00) per month revenue you must
focus on overall (end game $1,000, 000) growth (one year process)
versus immediate profitability.
Projected typical gross sales monthly, EFT goals, percent of profit,
monthly and yearly targets.
* Any time you are over 25% for profitability, you rock!
The sky is the limit. Go for it!!
Note: All projections and assumptions are based on normal pre-sale &
grand re-openings expenses and normal overhead costs. Your profit
margins may vary depending on your overhead expenses…

4 Quadrants of Promotions
1
150
I. Community Outreach:
Guest Passes
Prospecting:
Lead Gathering
II. Staff Promotions
Cooperative Promotions
Business to Business
III. Internal Referrals:
Ambassador Program
Member Appreciation
Party
IV. Universal Promotions
Marketing

1
151
Planet Beach Contempo Spa
When you enroll a new member
what do you lose?
What is your Contempo Spa’s
most impor tant core asset?
Answer: Current members/customers/guests
and past members/customers/guests.

1
152
Prospecting for Referrals
•Prospecting and promotions is the single most important
quality in the selling process.
•Franchisees are good prospectors first, and good sales people
second.
Prospecting: The First Step to Sales
•Since selling is an active process, so must prospecting be.

1
•Knowledge of business, sales skills, and training are linked to your
153
income by your strength in prospecting.
•Prospecting and sales are completely interrelated and independent.
•It is all mathematics—the more people you talk TO, the more new
members you will enroll.
•Unquestionably, the “Referral System” is one of the most
successful prospecting methods ever developed.

1
154
•Not asking for a referral is a serious mistake because most
members want to contribute and help.
•42% of sales people do not asked for referrals.
•Those who do ask for prospects, in 65% of the cases, fail to
secure any new names.
This is a tragedy!

1
155
How ttoo BBrreeaakk DDoowwnn YYoouurr
EEFFTT MMoonntthhllyy GGooaallss UUssiinngg
tthhee ““44”” MMaarrkkeettiinngg
QQuuaaddrraannttss

1
156
Quadrant #1
I. Community Outreach Promotions
Guest
Passes
Lead
Gathering

1
157
What are the non-negotiables?
Superior Customer
Service
•Each employee must show utmost
respect to each guest/member.
•Follow up and Follow through with
everyone!

1
158
Hello Dolly
Movie Clip
http://uk.youtube.com/watch?v=taNDkbHPne8

1
159
Returned Guest Passes
You must have 5 of your guest
passes returned each month
to maintain your position.

1
160
QQuuaaddrraanntt II::
•Community Outreach: Guest Passes
•Prospecting: Lead Gathering
Let’s do the Math….
·Community Outreach: Guest Passes (Non-Negotiable) Staff
6 consultants x 5 passes= 30 New Guests
30 Guests @ 33% closing= 10 NEW MEMBERS!!
·Prospecting: Personal Leads Prospecting (Non-Negotiable) Staff
6 consultants x 30 names= 180 Leads
180 x 33% show rate= 60 New Guests
60 Guests @ 33% closing= 20 NEW MEMBERS!!

1
161
The Pre-Employment
Package
Must be COMPLETELY
memorized.
Is your prospective employee a true
Eagle?
Give them 2 hours to go into the
community and collect names and
numbers of those interested in visiting
your Contempo Spa.
How many will they collect?

1
162
Personal Leads
You are responsible for collecting 30
names, phone numbers, and email
addresses each month of people who are
interested in our experiencing our
Contempo Spa

1
163
Quadrant #I Success
Lets do the Math
Guest Passes
6 consultants x 5passes=30 new guests
30 guest @ 33%closing= 10 new members!
Personal Leads
6 consultants x 30names=180
180 x 33%show rate=60 new guests
60 guest @ 33%closing= 20 new members!
--You got it--
30 new
members
without a
marketing $$
spent!

1
164
Quadrant #2 Success
II. Local Business Promotions
Cooperative
Promotions
VIP Business
Partners
Lead Box Placement Business of
the Month
Staff Monthly
Promotions

1
165
Promotions
Each employee is responsible for
organizing and participating in at
least one promotional event each
month

1
166
Promotion Examples
•Sporting events
•Fundraisers
•Bar promotions
•Conventions
•Wellness Shows
•Bridal Fairs

1
167
How do I get other businesses involved?
Establish relationship
with local business, like
yourself, that market to
the same demographic.
Maximize your marketing
dollars by setting up
special incentives for
Contempo Spa Members.

1
168
Lead Boxes
Each employee is responsible for
maintaining their lead boxes and
collecting leads on a weekly/bi-weekly
basis

1
169
Lead Box Tips
Tip #1:
The number 1 place to put a lead box for the most leads
The restrooms in restaurants (especially for women) provided that they have a sink or vanity
area.
*Sometimes a merchant will not allow a lead box on their counter space. So ask them about a
space in the restroom (vanity area). It is a better location for leads.
Tip #2:
If a merchant is hesitant about putting a lead box in their establishment long term, ask for a trial
run of two weeks. In most cases, 2 weeks becomes months or longer once you have it in place.
Tip #3:
Follow up with Thank You letters or card to the store owner and manager.
Tip #4:
BE NICE—BE NICE—BE NICE—BE NICE—BE NICE!!!

1
170
Lead Box Call Back Script
*See worksheet
Call each lead back and offer
them a WEEK of Spa.

1
171
How do I get other businesses involved?
VIP Business Partners
•Florist—10% off arrangements
•Restaurant—buy one meal, get
one FREE
•Health Club—1 week free trial
•Boutique--$10 off $50 or more

How do I get other businesses 1
involved?
Corporate Outreach
Set upP croormpoortaioten s
172
accounts
*See National Corporate Wellness Program and Activity
Master List worksheet

involved?
173
Corporate Outreach Promotions
You must have a
business of the
month
every month!
*See Business of the month
program worksheet

1
174
Corporate Accts
Corporate Accounts are Key!!
•The New Expanding Corporate
Market Membership Potential
•Opportunity for Franchisees
*See Worksheet

involved?
Community Business Promotions
•Establish trade-outs with
175
local businesses.
•Participate in conventions
and trade shows.
•Get involved in
community fundraisers
and sporting events

1
176
Quadrant #II Success
Lets do the Math
Minimum of 20 VIP Business Partners along with
Lead box program= 60 new guests
60 guests @ 33%closing= 20 new members!
Employee Monthly Promotion
6 consultants x 1 combined event per month.
The goal is to have spa consultants generate 5 guests each, equalling
30 new guests.
30 guests @ 33% closing= 10 new members!
Corporate Outreach and
Business of the Month Program
You must have on selected business of the month and Corporate Outreach Program.
The goal is to generate 30 new guests.
30 guests @ 33% closing= 10 new members!
--You got it--
40 new
members
without a
marketing $$
spent!

1
177
Quadrant #3
III. Internal Referral Promotions
Ambassador
Program
Month-End
Member
Appreciation
Party (MAP)

Referrals Referrals Referrals
1
178
Creating and Retaining
Members

1
179
1. Sign them UP!
On the right membership—24mth Contempo Spa
2. Never Let them QUIT!
By providing excellent customer service.
3.Have them Bring a Friend!
Referrals are 50% of your marketing success.

1
180
10 Step Referral Process

1
1. Congratulate the new member on a great decision on joining
2. Ask Question: What do you think is the biggest reason a member
stops coming to the Contempo Spa?
ANSWER: They have no friends or family that are members
and they are going alone
3. Make Statement: My main objective is to see that you accomplish
your goals. (Go over skin care and usage consultation.) The best
insurance policy is to have someone else who is a member also come
to use UV therapy and Contempo Spa services with you and it is even
better if they have been sponsored by you.
181

1
4. Explain guest privileges and tell them we like to have our members
nominate prospective new members.
5. Tell them we would like for them to give us 5 names of friends and
family they would like to see using the spa. Give them 5 VIP Guest
Passes.
6. Schedule their New Member Skin Care Consultation (green
appointment)
7. Referral Rewards: Make Statement. . . “When you and your friend
come in (repeat appointment time and date) and if they decide to become
a Planet Beach Member, you will receive 5 chances win the $1000
drawing and additional prizes and receive a Free Month. When 5 friends
182
join, you get a FREE Year!

1
183
AAmmbbaassssaaddoorr LLeetttteerr
HHaannddoouutt

1
184
Be A
Planet Beach
AMBASSADOR
Sponsor a member and receive a
FREE month of dues.
You will also be entered into a drawing to win lots of
amazing prizes.
Prizes include:
A trip for 8 days and 7 nights in a four star hotel of your choice
$ 1,000.00 CASH
An overnight stay at the Cambria Suites
A 1 Year membership to Idaho Athletic Club
And much much more!
Ask a spa consultant for more details

1
185
8. Congratulate the new member again. Repeat their goals again
and tell them how good they are going to look and feel.
9. Introduce the new member to as many Planet Beach employees
that you can.
10.Follow-up with a telephone call back procedure. (2 days, 10
days, 30 days) REMEMBER – it takes 21 days to build a habit. Help
your members stick to the program and they will bring you friends for
life.

1
186
MAP (Non-Negotiable)
Monthly Member Appreciation Party for close-outs.
The goal is to generate month-end excitement (invite back all
missed guests and potential Members, all current Members for
possible upgrades and family add on’s, as well as Community and
Business of the Month promotions, etc.)
Goal is to have a minimum of 5 guests per employee x 6
employees= 30 guests (Non-Negotiable) Staff
30 guests x 33% closing= 10 NEW MEMBERS!!

1
187
PB Belle Chasse
July 4th MAP
PB Marrero July 4th MAP
PB Uptown MAP
PB Uptown MAP
PB Uptown MAP
PB Terrytown Fresh Flowers
PB Sarasota MAP Opening
PB Marrero MAP
John Cena at Shreveport MAP

Quadrant III Success
1
188
Lets do the Math
Internal Member Referral Program
“Ambassador Program”
The goal is to create 2 referral guests per day.
2 guests x 30 days= 60 guests per month x 50% closing=
30 new members!
MAP
5 guests per employee x 6 employees= 30 guests
30 guests x 33% closing= 10 new members!
--You got it--
40 new
members
without a
marketing $$
spent!

1
189
Quadrant IV
IV. Universal Promotions-You Buy It!
Direct
Mail
Inserts
Billboard Radio
Ads
P.R.

1
190
Have a plan!
MARKETING AND ADVERTISING INIATIVES - All Brainstorming Options & Ideas
Publication: Name
and Contact
Information
Distribution
Information:
Include
number of
households
and city info
Frequenc
y Ad size Ad dimensions
Price
Information
Term:
Include any
minimim
requiremen
ts
Monthly
Rates
Publicati
on Dates
Deadline
for Ad
Submissi
on
Additional
Comments
1
Hometown
Magazine
Judy Anderson
303-690-
0717
cometanderson@ao
l.com
50000 homes in
zip codes
80134,80138,80
015,8016,80013
, 80016
covers both
locations
Mar, May,
July, Sept
Nov
1/6
1/4
1/3
1/2
3.8125H x
4.875W
7.875Wx3.25 H
495
545
645
945
5 issues 272.5 11/15/07
10/31/06
2
3
4
5

1
191
You must be in the Marketing Parade!
Use Radio, Direct Mail, Billboards, Ads,
Newspaper Inserts etc..
*Make you piece effective by including
an expiration date, your location
address, phone number and map!

1
193
Quadrant IV Success
Lets do the Math
Universal Marketing & P.R
Through universal marketing and P.R. campaign,
The goal is to generate a minimum of 2 guests
Per day or 60 guests per month.
60 guests per month @ 33% closing= 20 new members!
--You got it-- 20
new
members

1
194
Your Expected New Member Totals Per Month
EFT Membership Goals per Month
Quadrant I = 30 New Members
Quadrant II = 40 New Members
Quadrant III = 40 New Members
Quadrant IV = 20 New Members
100% of Goal = 130 New Members per Month!

1
Hey! Give me a break, we’re just getting started!
195
OK, I’ll buy that…
However, let’s assume that you only
hit 50% of you goals. With ½ of the
expected guests and ½ of the
expected closing %, etc., you will still
hit 65 New Members per month and
you are on your way to your $54,000
EFT goal!

1
196
Let’s Recap!
Guest Passes
Lead Gathering
Increased
guest
traffic=
increased
membership
sales
Lead Boxes
Promotions of the month
Business of the Month
Corporate Outreach
and B2B
Referrals,
Referrals,
Referrals,
& MAP Parties
Universal
Advertising–($
$You Buy It!$$)

You can do it!
1
197
$1,000,000
Contempo
Spa!!

1
198
WWhhaatt’’ss MMoorree IImmppoorrttaanntt……YYoouu GGoottttaa
ddoo IItt!!
““THE ONLY PPEEOOPPLLEE WWHHOO AACCHHIIEEVVEE
MMUUCCHH AARREE TTHHOOSSEE WWHHOO WWAANNTT
KKNNOOWWLLEEDDGGEE SSOO BBAADDLLYY TTHHAATT TTHHEEYY
SSEEEEKK IITT WWHHIILLEE TTHHEE CCOONNDDIITTIIOONNSS
AARREE SSTTIILLLL UUNNFFAAVVOORRAABBLLEE..
FFAAVVOORRAABBLLEE CCOONNDDIITTIIOONNSS NNEEVVEERR
CCOOMMEE..””
--CCLLIIVVEE SS.. LLEEWWIISS

1
200
Wishing You All A Greater
Tomorrow
““There is no medicine lliikkee hhooppee,,
nnoo iinncceennttiivvee ssoo ggrreeaatt,, aanndd nnoo
ttoonniicc ssoo ppoowweerrffuull aass eexxppeeccttaattiioonn
ooff ssoommeetthhiinngg bbeetttteerr ttoommoorrrrooww!!””
OOrriissoonn SSwweetttt
MMaarrddeenn

1
201
Our New Business Model

Do something You Love, 1
Never
202
Work a Day in Your Life
“If you don’t fulfill
your own joy with
work-life plan, one
day you’ll wake up in
a special kind of hell,
where everyone is
happy but YOU.”

1
203
The System
“The system works…
If you work the system.”
- Macrae Ross

1
204
DAY 2:
Management Success- 9 to 5
25 Strategies
16 Things to Teach Your Staff
Leadership Skills Sets
Hiring the Best
Train the Trainer
Multiunit Management “MUM”
J.P’s Thoughts on Management
10 Truths for the Boss

1
205
The Power of Attitude
http://www.powerofattitudemovie.com/

1
206
Secret of the Spa Business
1) Sign someone up
2) Never let them quit
3) Have them bring in one
friend

1
207
Great Management= Great
Results
The Test of a great manager is
results. Management is knowing
1st, then performance.
A great franchisee must be a
great manager of people.
In our new Contempo Spa
Model, an absentee
franchisee won’t cut it!!

1
208
Great Management Takes
Practice
1.Management is a Discipline
An organized body of knowledge
applied
2.Management is Tasks
Every achievement of management is
the achievement of a manager.
Every failure is a failure of a
manager
3.Management is People
Good people, Good Results
Bad people, Bad Results

1
209
Every achievement then
is the achievement of
the manager through
people
Every failure is a failure
of a manager through
people
“PEOPLE ARE YOUR
GREATEST ASSET”

1
210
Nothing Succeeds Like Hard
Work
“Your Success is your
own damn fault.”
-Larry Winget
http://www.youtube.com/watch?v=lNBiAn0L3NU

1
211
Chapter 5
“It’s called work for a
REASON.”

1
212
25 Strategies Needed to Operate A
Successful Planet Beach Contempo Spa
These Strategies will:
 Help create a fun, exciting atmosphere
for management and staff to work it
 Promote customer service—the
backbone of any successful Contempo
Spa
 Build trust and respect between
management and employees
 Allow management/staff to do work
that is challenging and meaningful
 Give you the opportunities to develop
and use your individual skills to the fullest
extent
These strategies are a road
map that your contempo
spa needs to follow to reach
its desired destination—a
place where management,
staff, and members will
flourish

1
213
Strategy #1: Quality &
Expectations
A. What is your definition of quality for Planet Beach Contempo Spa?
B. What are your expectations for your Planet Beach Contempo Spa?

1
214
Strategy #2: Identify &
Analyze
A. What are your operational expenses?
B. What are your salaries?
C. What are your debt sources?
D. What are your maintenance & repair expenses?
E. Do your membership sales meet your expectations?
F. Is your spa clean? REAL CLEAN!!
G. Is the equipment working?
H. Is your staff qualified?

1
215
Strategy #3 Question Your
Course
A. Why do we exist?
B. What do we want to be?
C. Review & modify business plan, if necessary.
Redefine strategic goal, if necessary
D. Generate new strategy to fulfill goals, if necessary
E. Implement new action plan, if necessary

1
216
Strategy #4: Communication to
Members
“Communication is
the key to the hearts
of your
membership”—Let
them know you!
A. Goals for Good Communication
1. Friendly, positive member constituency
2. Source of new member referral
3. Reinstatement of inactivated or departed member
B. Communication Model
1. Newsletter- monthly?
2. Letters to members- Ambassador Program
3. Survey your members once a year
4. Posters and signs in spa
5. Suggestion/comment box

1
217
Strategy #5 Communication to
Staff
“Find the wisdom for success
by talking to the staff”
A. Staff must feel and know the “pulse of the
membership”
B. Staff creates network—use it
C. Allow staff to be emissaries of management
D. Allow staff to communicate
E. Staff needs to feel a part of the total team
F. Staff is your best conduit from and to your members
G. Hold weekly meetings

1
218
Strategy #6 Communication to
Management
A. Keep all management/franchisee informed
B. Put it in writing
C. Hold monthly accountability meetings with
staff and franchisees.

1
219
Strategy #7: Service is JOB
ONE!
Emphasis must be placed
on excellent service
A. Extra effort must always be made in correcting
every reasonable problem in a reasonable amount
of time
B. Always enforce a “make up for mistakes” policy
C. Service excellence must be our main focus
NOTE: Members can understand
certain spa limitations, but they will
never understand poor service!!

1
220
Strategy #8 Create a Great
Staff
Your staff is your greatest
capital investment
A. Ongoing staff training
B. Ongoing staff re-evaluation
C. Delegate responsibility
D. Don’t skimp on pay for quality help- FIND EAGLES!
E. People and hospitality sell and retain memberships

1
221
Strategy #9: The Brass
Ring
“Let Staff reach for brass ring.”
A. Give staff freedom and responsibility to be
creative in their area of specialty
B. Establish goals, then reward for excellence
C. Support and help in achievement of goals
D. Everyone must be in the race!

1
222
Strategy #10:
“Staff, fraLnechaisdeees,r asndh mipembers
need to feel someone knows
what they are doing and why”
A. Develop a written game plan.
B. Provide confident and definite leadership
C. Exude confidence with passion
D. Be firm, yet compassionate
NOTE: You must be able to
lead, follow, or get out of the
way! The strongest leaders do
so by example.

1
223
Strategy #11: Expenses vs.
“You cPanr’to exgpernasem yousr
way to profitability”
A. People sell memberships
B. People retain members
C. Expense cutting is a reasonable strategy
(especially is expenditures are
unwarranted, frivolous and excessive)
D. Expense cutting will not yield profit
without new production goals
E. The only expenses you an control are
Payroll & Advertising
DON’T CUT YOUR THROAT!
NOTE: Any
program
expense is
appropriate as
long as it leads
to profitability
and is always
within budget

1
224
Strategy #12:
Clean it! “Your spa must be clean—
enough said—CLEAN IT!!”
A. The cardinal rule…not doing so has
ruined many a good spa!
B. The spa MUST be pleasant,
comfortable, bright, and smell good at
all times!
C. Lack of cleanliness is a controllable
objection to new sales and retaining
your members

1
225
Strategy #13: Preventive Maintenance
“PM”
A. It is imperative that everything
works
B. Preventive maintenance will
decrease equipment down time
C. Create maintenance log book
and follow up

1
226
Strategy #14: Maintenance
“Out of order is ‘out of order’”
A. Nothing is out of order—it’s under repair!
B. Everything breaks down sometime.
However, staying broken can break you.
C. Fix it fast! Do it now!
REMEMBER…IT’S
“UNDER REPAIR”

1
227
Strategy #15: Do Business with
Integrity
A. Give the buyers confidence that they will
get and are getting what they paid for
B. Don’t ever promise what you know you
can’t deliver
C. Don’t wheel and deal on prices.
Price Integrity is a MUST!
D. Stay consistent to your promotions
E. Be consistent with consistency

1
228
Strategy #16: Reports &
Records “Reports and records are
NOT a waste of time”
A. Periodic reports from all divisions of the spa
provide the information to enhance what is
working and alter what is not working.
B. Financial reports are most important
C. Budgets, P&L, cost of goods, marketing,
forecasting, etc.
D. Retail Profit centers are cost centers, too!
Watch Your Margins.
E. If you do it, track it!

1
229
Strategy #17: Phones & Headsets…How
Many??
A. To be a successful spa business,
TWO computers are as
necessary as spa equipment
B. THREE phone lines plus fax
machine Remember, you’re in a
sales driven business
C. Headsets & walkie talkies create
more efficiency & effectiveness

1
230
Strategy #18: Spending
“Spending money on
needs, not desires”
A. Costs to provide quality, service,
and retention must be allocated to
increase profitability (i.e. Rules of 5
for Retention)
B. On every expense, ask this question
— “Is this necessary?”
C. Any expense that increases
profitability is ALWAYS within the
budget, and thus a good expense

1
231
Strategy #19: Public
“RPueblliac rteilaotionnss- a“ cPheRap”
means to an end”
A. Communicate with the market place
without paying for it.
B. Volunteer for local paper columns on
health, stress reduction, and wellness.
Also radio and T.V.
C. Get involved with charity groups, etc.
D. Get involved with health fairs, etc.
E. Distribute news releases regularly
F. Remember 80% of all P.R. is Planted!

1
232
Strategy #20: Marketing &
“The purpoAse dofv adeverrttiisisngi n& gmarketing
is to drive in more business that you can
lose by the mistakes you make”
A. Create a marketing plan and launch it.
B. Create a marketing budget and stick to it.
C. Do what works- test everything.
YOU MUST ADVERTISE FOR
INCREASED BUSINESS OR
ADVERTISE YOUR SPA FOR SALE

1
233
Strategy #21: Membership
“MembeSrs adolne’ts just
happen. You have to
create them one at a
time”
A. Ongoing membership sales & retail
training is a must.
B. Provide an environment for your
membership sales & referral
systems to flourish
C. Reward positive membership sales
when goals are hit and surpassed
$$BONUSES!! $$

1
234
Strategy #22: Get
“TheO orrgagniazantioinz meudst
be organized!”
A. Create a “Schedule for the Day” program
for everyone—use the “5 Most Important
Things to Accomplish” rule.
Accomplishment List Not a To-Do List!
B. Inspect what you expect. Create a system
of accountability
C. Trust, but verify
D. Follow up and follow through

1
235
Strategy #23: Time
“RoMme awansna’t gbueilmt ine a ndaty”
A. With proper time management,
positive results should be realized
B. Set time lines with realistic
expectations – S.M.A.R.T.
C. Delegate with time accountability
D. The request and promise system

1
236
Strategy #24: Continuing
Education
“It’s what you learn after you
know everything that counts”
-John Wooden
A. Create a continuing education program-knowledge
builds confidence in people
B. You must know what’s going on in our industry
C. The great aim of education is action, not
knowledge
D. Knowledge= Information= Power= Success $$$
E. Attend Planet Beach Contempo Spa annual
convention and continuing educational courses.

1
“You are searching for the magic key that will
unlock the door to the source of power and yet
you have the key in your own hands, and you
may use it the moment you learn to control
237
Strategy #25: Attitude is
Everything
“Any act facing us is not as
important as our attitude toward
it, for that determines our success
of future”
-Norman Vincent Peale
your thoughts”
-Napolean Hill
A. Positive attitude will breed positive results- the
reverse is also true
B. Your overall positive spa attitude will be the
No. 1 reason for your overall spa’s success- the
reverse is also true

1
238
The First 16 Things You Teach Your
Staff
1) The customer is always first in everything we
do. Everything starts and ends with the
member
2) Never say, “It’s not my job.” Try everything you
can to help the member
3) Make members feel good about you, not just
going to the spa. Learn the member’s names
and a little about them
4) Do things for the member that you don’t get
paid for. Give the member the extra touch that
makes them feel special about belonging to
your spa
5) Know our competitor’s spas better than he
does. We can’t outsell the competition if we
don’t know anything about them

1
239
Staff 6) Be early for everything. Being late makes a
statement about you as a person and the worth
of the person you are supposed to meet
7) Never bad mouth a member, a fellow staff
member or the competition
8) Dress and groom yourself as if you’re the actual
product we are selling
9) When it’s time to go home, talk to one more
member and do one more thing nobody else
would think to do
10) If you stay in the shower a long time in the
morning because you don’t look forward to
coming to the spa, find another job or help
make this place an enjoyable place to work

1
240
Staff 11) Stay out of the office and away from the counter as
much as possible. We don’t make money sitting in
an office but from providing the best customer
service in the area
12) Always tell the owners/managers the good news
and the bad news you head
13) Never, ever back off of your goals
14) Listen, listen, listen to what the member is really
telling you. Complaining members aren’t the
problem; it’s what they’re complaining about that
we need to understand
15) Strive for constant improvement in everything you
do at this spa
16) Everything we do starts and ends with the member

1
241
6 Traits of AA SSuucccceessssffuull SSppaa
DDiirreeccttoorr
1) STAYS FOCUSED
-Stays focused on the project at hand no matter what is
going on around you
2) PAYS ATTENTION TO EVERY DETAIL
- Be precise!

1
242
Details, DDeettaaiillss,, DDeettaaiillss
Robert De Niro is a Las Vegas
Owner/Operator working for the mob
“I want an EQUAL
number of blueberries!”

1
244
6 Traits of AA SSuucccceessssffuull SSppaa
DDiirreeccttoorr
3) FOLLOWS UP
- Has great follow up & follow through
4) CONFLICT RESOLUTION
- very important part of the entrepreneur’s job
description
5) WILLING TO GROW & LEARN
- Spa Directors must be flexible to changes
6) EDUCATION & TRAINING
- Spa Directors must be a great educator/teacher

1
245
Willing to Grow and
Learn
EDUCATION IS KEY!
One survey states that for every dollar spent on
employee training, the employer can expect a $30
return. People on your team who resist training are
narrow-minded about their future and what they
currently know. The business will eventually grow
past their abilities. Everyone can only know so
much. You can only apply what you know. If what
you know is not enough to make your business
grow, then you need new people who are willing to
learn.

1
246
Education Raises the
Bar
“To be what we are and
through education to become
what we are capable of
becoming, is the only end of
life.”
-Robert Louis Stevenson

1
247
Spa Manager = Teacher
“The teacher, if indeed wise,
does not bid you to enter the
house of their wisdom, but
leads you to the threshold of
your own mind.”
-Kahil Gibran

1
248
Training- Training-
Training Ongoing sales and motivational training to spa
managers and consultants.
Ongoing training on service excellence, phone
excellence, and great customer retention
Ongoing motivational and communication
training for the entire team
Ongoing training on spa operations,
management

1
249
Teaching, Training, Educating.
“You cannot teach a person
anything. You can help them
discover it within
themselves.”
-Albert Schweitzer

1
250
Teaching, Training, Educating.
What’s the true difference
between
Teaching?
Training?
And Educating??

1
252
You can’t train a duck
to hunt like an eagle!
You can’t teach someone to smile.
You can’t teach someone to want to serve.
You can’t teach personality.
Most importantly, you can’t teach
someone to hunt like an eagle.

1
253
What we can do however is hire
people who have those
qualities and teach them about
our services and our culture.
Ask yourself this question. . .

1
254
Am I hiring a duck thinking
it will
become an eagle?
I can honestly say that asking this simple
question, you will save yourself from making
the most costly hiring mistakes. http://youtube.com/watch?v=xAsXtDKdU0Q

1
256
Training the Trainer
1. Do things in a way that makes others feel that they
did them.
2. If you don’t trust, you’ll never be trusted.
3. Mules can often be lead where they can’t be driven.
Lean and teach like you would like to be led and
taught.
4. Succeed quietly and know that this success is really
because of their efforts. Loose the ME in search of
the WE.

1
257
Training the Trainer cont. . .
5. The words and teachings we say really mean very
little – it’s our energy and passion that transforms.
6. When your training your people, you must be 100%
WITH your people.
7. Who is Malcom Knowles? Father of Adult Training.
8. He wrote the famous book on How Adults Learn.

1
258
How Adults Learn
 Adults have a wealthy of experience and a great deal
to contribute. Successful trainers build on this hard
earned experience
 Adults will devote energy to learning those things that
they believe will help them perform better. Adults
NEED W.I.I.F.M.
 Adults are more responsive to motivations such as
increased self esteem rather than higher salaries.

1
259
You cannot teach a person
anything. You can only help
them discover it within
themselves.
-Galileo

1
260
How do you begin?
 Opening and introduction overview. WIIFM
 Learning objectives: List all learning content. Break
objectives down into smaller more achievable segments.
 Arrange the learning objectives into logical learning
sequence.
 Teach by doing. We retain information/knowledge when
you engage participation.
 You need feedback. It’s not important what you say – it’s
very important that they understand what you are saying.
TELL – SHOW - DO

1
261
How do you begin? (cont. . .)
 Summarize training and gain commitment to action.
1. Memo to themselves regarding two performance
improvements they will make.
2. Collect memos and share with team.
3. Use memos for future training – “DID I DO IT?”
 Send them off with an encouraging word and
challenges.

1
262
“OPPORTUNITYISNOWHERE”

1
263
Prepare to Succeed
A. Prepare your training environment.
B. Prepare your people.
C. Prepare yourself.
D. Practice – Practice - Practice

1
264
Are you a Trainer or Facilitator?
 A trainer - conducts a training session, course or
program.
 A facilitator – allows people to assume responsibility
the their own learning.
You Must Be BOTH!
EXPERIENCE is the best Teacher!

1
265
The Training Myth –
O.J.T.

1
266
Training Strategies and Tips
 Practical Application (Real World)
 Use Actual Examples (Role playing & Simulations)
 Build in practice opportunities (Design training for
practice and feedback.
 Poll expectations (Build in W.I.I.F.M)
 Transfer training to O.J.T.
 They must take ownership of info. (They must tell
you how they will implement what they have learned)

1
267
Training Strategies and Tips (cont. . . )
 They must create self reminders (memo to
themselves)
 Action plan from each person. They must hold
themselves accountable and to the TEAM.
 What are they going to do on the job as a result of this
training!

1
268
Learning vs Performance
Learning experiences develop skills and knowledge so
people can perform.
Performance occurs when people apply this skill and
knowledge, accomplishing results.
The great aim of education is not knowledge – but action!

1
269
The E Myth. Most entrepreneurs
are merely technicians with an
entrepreneurial seizure. Most
entrepreneurs fail because you are
working IN our business rather
than ON your busniess.
- Michael Gerber

1
WHAT IS THE BENEFIT OF TRAINING?
Training can provide many benefits. You, your
customers, your employees, and your spa have
270
much to gain-and nothing to lose-with a high-quality
training program.
Which of the following
will benefit your spa?

1
271
 Saving Money-If employees know how to do work the right
way, costs will be lower; profits will be higher
 Saving Employees-Employees who know how to do work
according to their leaders expectations will be less anxious and
turnover will be reduced
 Saving Customers and Making New Ones-Customer are
happy when they receive the products/services they expect.
 Saving Time-A trained staff will promote efficiency. Both the
manager’s time and that of employees will be saved.
 Reducing Staffing Concerns-Trained employees are better
prepared and more eligible for promotion opportunities.
 Saving Relationships-Managers who show their concern for
employees with quality training, helps motivate them and morale
levels are likely to increase
*Give yourself an A+ if you checked all 6 boxes!

1
272
W.I.I.F.M.
Trainer’s job is to demonstrate how training will benefit them.
Trainers must properly explain when training and in return,
employees will want to be trained. Employees will
participate in training activities and will receive maximum
benefits from their training experience.
There is an old saying, “If a trainee hasn’t learned, it’s
because the trainer hasn’t trained.” Trainees who
understand the benefits they will receive from training will
want to learn.

1
273
Here are some examples of what your employees
could achieve with proper training:
1. Personal knowledge that the job was well
done
2. Wage/salary increase
3. No anxiety about performance evaluations
4. Fewer customer complaints
5. Job enjoyment
6. Promotion
7. Freedom from on-the-job accidents
8. Good first on-the-job experiences

1
274
Here are some examples of what your employees could
achieve with proper training:
9. Less stress
10. Improved teamwork
11. Respect/esteem from customers, peers, and boss
12. Freedom from on-the-job boredom
13. Less tiresome work
14. Feeling of being a “professional”
15. Knowledge of job security
16. Participation in career development programs

1
TRAINING
Definition of TRAIN - To cause to grow as desired.
The first step in becoming a successful trainer is to know your
preferred style of training. Identify your training goals and
clarify what you need to learn. Always be prepared to make
sure that you’re focusing on the desired solution or objective.
By stating clear goals and objectives this with prevent you and
275
your team from heading in the wrong directions.
When training, always tell your employees what your training, and
why Planet Beach operates this way, how it’s going to benefit
them, and how it’s going to benefit the company as a whole.

1
276
Walk the Talk
“We must be the change we wish to see in the
world” -Gandhi
A true trainer will always lead by example. As a trainer you set the
tone of the salon. The single most important way to ensure that
your employees become the best, is to “WALK THE TALK.” Set
values, talk values, practice values, and demonstrate values. Your
employees make judgments based on what they see you do rather
than what they hear you say. Make sure your actions demonstrate
what you say.

1
277
Albert Schweitzer
The best 3 ways to teach is by
1. By Example
2. By Example
3. By Example
“Example is Leadership.”
“Example is not the main thing in
influencing others, it's the only thing.”

1
278
Walk the Talk
Employees will believe you when you model the behaviors
that you want them to practice. If you want your employees
to give your guest a great tour and ask all the power of
questions, then show them how to give a great tour by
asking all the right questions. If you want them to be more
organized, then you must be more organized. If you want
your employees to show up at work on time, and you start a
meeting late or show up for work late, that’s saying it’s ok
not to be on time. Your responsibility is to begin your
own discipline.

1
279
Preparation
“Failure to prepare is preparing to fail”
Coach John Wooden
There are a wide range of policies, procedures,
activities, and other concerns that should be
addressed during the training process. Employees
should not be trained to do a job until the correct
way to do the work has been defined. This step is
often omitted (What is there to plan? We do the
work every day and should be able to show
someone how to do it. Time saved in planning can
be spent in training!)
Failure to plan for training activities is a
sure way to have your training ef for ts fail!!

1
280
Preparation
Plan for training, a Trainer must!
Here are several steps you can follow:
 Print 2 training itineraries, one for your records and one for
your employees to write notes on.
 Choose what topic on the training itinerary you will be
training your employees on.
 Develop an agenda for 3 days of training and 1 day for a
recap of training. (Remember to include breaks)
 Research the topic you will be training on.
 Write notes next to the topic your going to train on.

1
281
Communication for Results
“Nothing in life in more important than the ability to
communicate effectively”
Gerald Ford
As a trainer you need to know whether you have
communicated effectively by what is understood by
your employees. Good communication is the most
crucial element to sustaining creativity and
motivation in the work place. When you do not
communicate effectively, there will be limited
understanding.
TELL – SHOW – DO!

1
282
Communication for Results
Communication is based on more than just spoken
words and dictionary definitions. Nonverbal
communication is the part of the message that the
person communicates in addition to the words that
he or she speaks. Research, in fact, indicates that
7% of communication consists of the words we use
(verbal), while 93% of communication is based on
how we say those words, and how we look when
we say those words.
Passion – Persuades!

1
283
Verbal Messages
The words we choose are only a minor part
of the complete communication process.
They can still either enhance or stop
effective communication from occurring.
Great communication takes
everything you’ve got!

1
284
Non-verbal Messages
They consist of vocal elements (tone, non-word
sounds such as sighs, rate of
speaking, emphasis, etc.) and visual
elements (body language, facial
expressions, and gestures.) Remember that
this is 93% of the entire communication
message!

1
285
Below are some key tips that can increase
the odds that you are heard:
 Avoid blaming
 Beware of negative nonverbal messages
 Use concise, clear messages
 Seek feedback
 Ask questions and listen
 Present training material with enthusiasm
 Tell trainers they will have to feed it back.
 Always remember Tell – Show – Do!

1
286
Signs when your communication is off-track
 Your employees are bored and uninterested. They continue to do
what they have always done without change in their behavior.
 Your employees are confused and cannot train you on what you just
said. They have no idea about what you said and what you want.
 Your employees are overwhelmed. They are overwhelmed by too
much information coupled with a lack of clarity and direction.
K.I.S.S. – Eat an elephant one bit at a time
To be an outstanding trainer who produces high performance,
you must communicate with accountability!

1
287
Signs when your communication is
accountable
 Employees are inspired and go into action to make
things happen.
 Employees re-create your message for others. They
use their own words to restate what you want and the
timeframe you want it.
 Your employees know what’s important and have a
clear understanding about their priorities.

1
288
Effective Training Summary
 A good trainer/educator must believe that:
a. People learn best when they are active rather than
passive.
b. People learn best when challenged rather than
talked at.
c. People learn best when involved rather than
observing.

1
289
TELL – SHOW – DO
Learning is NOT a
Spectator Sport!
a. We tell them & then show them
b. Participants will then do the training back to us =
The “DO!”

1
Team Training:
Training with a partner is one of the most effective and
enriching opportunities that will produce the best damn
290
training that the participant has ever had!
NOTE: “Two Heads are Better than One!”
Shows that you know your stuff and this is the
Gospel of the way it should be!

1
Learning Insurance
K.I.S.S.
Learning Insurance mostly comes down from how you create a structure for
291
the best learning experience:
The React (mnemonic) “Training the memory and assisting the memory:
Relax – and establish an informal atmosphere.
Encourage - to take control of their own learning
Accept - participants where they are.
Communicate – openly and honestly.
Tap – participants for their ideas.

1
292
Repeat. . . Repeat. . . Repeat!!!
W.I.I.F.M
W.I.I.F.M
W.I.I.F.M

1
293
Top 10 Tips for Outstanding Trainers
1. Be flexible. The unexpected can be your greatest
moment.
2. Be well prepared. Back-up props, back-up
activities, back-up agenda, back-up everything!
3. Leave your ego outside the room. Follow the flow
of the group even when it goes off your course.
4. Tell personal stories that are true and make a
point.
5. Ask outstanding questions (so that true learning
and reflection abound.)

1
294
6. Anticipate resistance, deviations, and mistakes. How you
handle these impacts the whole day and are usually where
the learning takes place.
7. Pause often. Whether after a sentence, after an activity, or
after a debriefing, allowing your participants to think and
reflect. This is the time when they come up with their own
solutions and lessons.
8. Take risks and new things. We teach what we need to learn.
9. Involve the whole group. Design the learning so that the
learners focus on themselves and each other. You create the
learning experience and then step back.

1
295
10. Keep the day fun, fun, fun. And always close with
high impact.

1
296
Top 10 Worst Mistakes Trainers Make
1. Forgetting to check the facility ahead of time for
lighting, sound, audio-visual, room temperature,
props, and overall participant comfort.
2. Starting late OR WORSE. . . running overtime.
3. Talking too much.
4. Forgetting break times.
5. Not laughing at yourself when the unexpected
happens. And they will happen.

1
297
Top 10 Worst Mistakes Trainers Make
6. Giving unclear directions.
7. Not smiling.
8. Not involving participants.
9. Not reading the audience, and therefore not
knowing when to change strategies or pace.
10. The all-time worst mistake – not being real!
Passion is everything! People remember the
feeling they had with the trainer long after the
content.

1
298
“OPPORTUNITYISNOWHERE”

1
299
Spa Director Skill Sets
 Big Picture Perspective
 Company Philosophy
 Company Standards
 Team Hiring
 Team Coaching
 Time Management
 Decision Making
 Marketing and Sales
 Member Satisfaction
 Owner/Franchisee Relations
 Promotion Drive
 Communications Flair
 Planning Capability
 Organizational Know-
How
 Staffing Expertise-
Hiring & Training
 Controlling – Must be a
great control
 Ability to Lead &
Motivate
 Belief in Yourself
 Vision
 Positive Attitude
 Dedication
 Willingness to Take
Initiative/Risks
 Ability to communicate
 Inspirational
 Consistency
 Goal Oriented
 Persistence

1
300
Spa Directors: Focus
1) Spa Directors & Assistant Spa Directors’ #1 job is PRODUCTION
2) Production can only be brought about with a total TEAM EFFORT
3) Operational system will bring about Team Effort
4) You need total operational environment with your staff
5) Facts & Figures give a clear picture on what is going on…
Accountability & Inspect what you Expect
FACTS & FIGURES DON’T LIE…
1) Work backwards, trace everything back to the source.

1
301
How to Be a Great Spa
Director 1. Be a good and willing communicator
 Great bosses share information, ask employees opinions,
and encourage employees to take initiative
2. Specify job-performance expectations
 A good boss doesn’t hesitate to tell an employee about a
problem as soon as it becomes apparent
 Schedule brief meetings with each individual under
supervision once a month
3. Make contact daily with as many team members as possible
 Visual recognition counts
 Give employees information about the company
performance, plans, and objectives that affects them.

1
302
How to Be a Great Spa
Director 4. Loosen the reins
 Ask the right questions & make sure they understand.
If mistakes are made, they make sure everyone learns
from them.
5. Have a sense of humor & admit mistakes
 Have a consistently upbeat style with an obvious sense
of humor & an ability to joke about oneself
6. Provide direction & strive to be consistent
 Formulate a plan of operation and stick to it
7. Look for ways to improve & to learn from others
 Try to avoid the mistakes your bosses have made and
be open to change

1
303
General Principles for Working With
Your Team When you’re making a change
of direction with your staff,
you need to keep them
focused. Let them know that:
1) Change is going to happen. What we did before is no longer
acceptable
2) Expectations are set. You now have a basic level of performance
to live up to starting right now
3) Nonsense is OUT. Back stabbing, member bitching, late for
work, absenteeism days are now over
4) The work ethic and the customer are IN. On-time for work is 15
minutes before the shift starts
5) People are going to enjoy working in this spa
6) We will be tough but fair

1
304
Find Ways to
Praise
Special Note:
Always recognize the heroes
first in every meeting. Praise
doesn’t cost you anything and
giving the performers attention
puts extra pressure on the non-performers.

1
305
Motivating the Low
Guys
oEvery staff has a couple of people at
the bottom that are usually a little more
difficult to keep motivated
o We should always recognize the
winners but there must be
consequences for failure
oMost of the common mistakes owners
make when trying to get the staff
moving comes down to basic mistakes in
over-all management

1
306
3 Secrets of the One Minute
Manager
Secret #1: One Minute Goals
Secret #2: One Minute Praising
Secret #3: One Minute Reprimanding

1
307
Secret #1: One Minute Goals
- Agree on your goals
• Make sure employees understand their responsibilities and what they
are accountable for
- See what good behaviors look like
- Write out each goal on a single sheet of paper
- Read and re-read each goal, which should take only a minute
- Take a minute every once in a while out of your day to look at your
performance
- See whether or not your behaviors match your goal

1
308
Secret #2: One Minute Praising
-Tell people UP FRONT that you’re going to let them know how they are doing
- Praise people immediately
• “Help people reach their full potential; Catch them doing something RIGHT.”
-Tell people what they did right- Be Specific
- Tell people how good you feel about what they did right & how it helps the
company
- Stop for a moment of silence to let them “feel” how good you feel
- Encourage them to do more of the same
-Shake hands or touch people in a way that makes it clear you support their success

1
-Tell people before hand that you’re going to let them know how their doing
1st half of Reprimand:
- Reprimand people immediately
- Tell people what they did wrong- Be Specific
- Tell people how you feel about what they did wrong
- Stop for a few seconds of uncomfortable silence to let them know how you feel
2nd half of Reprimand:
-Touch them in a way that lets them know you are honestly on their side
- Remind them how much you value them
-Reaffirm that you think well of them but not their performance in this situation
- When reprimand is over, its OVER.
309
Secret #3: One Minute Reprimands

1
310
DELEGATE, DDEELLEEGGAATTEE,, DDEELLEEGGAATTEE!!!!!!
You must make sure the
right things get done the
right way at the right
time by the right people.

1
311
Team
Motivation
To find out what type of leader
you are, ask your employees:
“Is it fun to come to work here
each day?”
Being fun is not the only
point, but it does greatly
affect the motivational
factor!
Spas should be fun places to
work!
Spas are only as
exciting as you,
the owner or
manager make
them!
Once you establish
goals and give
people direction,
their motivation
should increase

1
312
Passion
Passion is
contagious,
pass it on!
http://www.youtube.com/watch?v=gKo3mMKu0OA

1
313
MMoottiivvaattiioonn
A Good Leader Can Motivate Others By:
- showing a passion for what they are doing
- being able to communicate clearly with others
- encouraging others to get involved in decision-making
- being a good role model for the ideas that they
are advocating
- clarifying objectives
- clearly setting out the benefits to all parties of
decision that are made

1
314
Pick The Best Teammates!
"The best executive is the one
who has sense enough to pick
good men to do what he wants
done, and self-restraint enough
to keep from meddling with
them while they do it.“
--Theodore Roosevelt
“There is NO such thing as a
single-handed success: When
you include and acknowledge
all those in your corner, you
propel yourself, your teammates
and your supporters to greater
MANAGERS THAT DON’T heights.”
DELEGATE USUALLY FAIL!

1
315
One Minute Manager Meets the Monkey
A busy manager is busy because he is doing the staff’s work!
Don’t take on a problem if it isn’t yours!
MONKEY= The next move to be taken in any problem or situation
(whoever has to make the next move owns the monkey!)
For every monkey there are 2 parties:
1) One to work it
2) One to supervise it
If, as a manager, you take on everyone else’s monkeys, a role
reversal will occur: you will be working it and your staff will
be supervising it!

1
316
One Minute Manager Meets the Monkey
“Tasks are like monkeys. If
you don’t tend to them, or if
you have too many, or worst
of all if you take on someone
else’s, they get out of hand
and give you aggravation &
make your life miserable.”
You must see the
monkeys for what they
are and actively work to
keep other people’s
monkeys off your own
back in order to
succeed

1
317
Four Rules of Monkey Management
#1: Describe the Monkey
#2: Assign the Monkey
#3: Insure the Monkey
#4: Check on the Monkey

1
318
Rule #1: Describe the Monkey
• The dialogue between the boss and subordinate must not end
until appropriate “next moves” have been identified and
specified
• Rationale:
- When people realize dialogue won’t end until next moves are
specified, they will plan carefully when approaching you
- It gives you motivation by clarifying the situation, identifying the
first step, and breaking it into bite size pieces.

1
319
Rule #2: Assign the Monkey
• All monkeys shall be owned and handled at the lowest
organizational level consistent with their welfare
•Rationale:
- Staff have more time, energy, and knowledge to handle monkeys
- Staff are closer to the work and are in better position to handle
the monkey.
- Keeping monkeys off your back is the only way to gain
discretionary time
- Retain monkeys only you can handle

1
320
Rule #3: Insure the Monkey
• Every monkey leaving your presence on the back of one of your
people must be covered by one of two insurance policies:
1) Recommend, Then Act
2) Act, Then Advise
•Rationale:
- This balances your staffs need for freedom and your ability to control
- Level 1 is when there’s a risk of an unaffordable mistake
- Level 2 is when you’re sure that your staff can handle it on their own
and inform you afterwards
- Aim to practice hands-off management as much as possible and hands-on
management as much as necessary.

1
321
Rule #4: Check on the Monkey
• Proper follow- up means healthier monkeys. Every monkey should have
a check-up appointment
•Rationale:
- Checkups are to find opportunities to praise your staff
- Make sure monkeys are healthy and take corrective action if necessary
-Staff should inform you when monkeys are sick
- During checkup, if nothing was done, discuss why nothing was done.

1
322
Lose the ME in Search of the
WE
“You seldom accomplish very
much by yourself. You must
get the assistance of others.”
- Henry J. Kaiser

1
323
The 3 Minute Management Course
LESSON 1
A man is getting into the shower just as his wife is finishing
her shower, when the doorbell rings. The wife quickly wraps
herself in a towel and runs downstairs. When she opens the
door, there stands Bob, the next door neighbor. Before she
says a word, Bob says, “I’ll give you $800 to drop that towel.”
After thinking for a moment, the woman drops her towel and
stands naked in front of Bob. After a few seconds, Bob hands
her $800 and leaves. The woman wraps back up in the towel
and goes back upstairs. When she gets to the bathroom her
husband asks, “Who was that?” “It was Bob, the next door
neighbor,” she replies. “Great!” the husband says, “did he
say anything about the $800 he owes me?”

1
324
Moral: Lesson
1
If you share critical information
pertaining to credit and risk with
your shareholders in time, you may
be in a position to prevent avoidable
exposure.

1
325
Lesson 2
A sales rep, an administration clerk, and the manager
are walking to lunch when they find an antique oil lamp.
They rub it and a genie comes out. The genie says, “I’ll
give each of you just one wish.” “Me first! Me first!”
says the admin clerk. “I want to be in the Bahamas,
driving a speedboat, without a care in the world.” Puff!
She’s gone. “Me next! Me next!” says the sales rep. “I
want to be in Hawaii, relaxing on the beach with my
personal masseuse, an endless supply of Pina Coladas,
and the love of my life.” Puff! He’s gone. “OK, you’re
up,” the genie says to the manager. The manager says,
“I want those 2 slackers back in the office after lunch.”

1
326
Moral: Lesson
2
Always let your boss
have the first say!

1
327
Lesson 3
An eagle was sitting on a tree resting, doing nothing. A
small rabbit saw the eagle and asked him, “Can I also sit
like you and do nothing?” The eagle answered: “Sure,
why not?” So the rabbit sat on the ground below the
eagle and rested. All of a sudden, a fox appeared,
jumped on the rabbit and ate it.

1
328
Moral: Lesson 3
To be sitting and doing
nothing, you must be
sitting very, very high up.

1
329
Lesson 4
A turkey was chatting with a bull. “I would love to
be able to get to the top of that tree,” sighed the
turkey, “but I haven’t got the energy.” “Well, why
don’t you nibble on some of my droppings?”
replied the bull. “They’re packed with nutrients.”
The turkey pecked at a lump of dung, and found it
actually gave him enough strength to reach the
lowest branch of the tree. The next day, after
eating some more dung, he reached the second
branch. Finally, after a fourth night, the turkey was
proudly perched at the top of the tree. He was
promptly spotted by a farmer, who shot him out of
the tree.

1
330
Moral: Lesson 4
Bullshit might get you to
the top, but it won’t
keep you there!

1
331
A Manager’s Daily Productivity
Schedule
I, MANAGER, WILL:
1) Use my day planner religiously. It’s my lifeline.
2) Not leave work until tomorrow is thoroughly planned
3) The first thing in the morning, physically inspect the
spa making sure everything is in excellent condition
and clean
4) Make memos on what needs to be done and follow
through with corrective action. I realize that the
number one disease is an unclean spa which affects
everything from sales to customer service
5) Inspect daily production from previous day & red-flag
improper productivity. Also will heck to see how
today’s productivity is set up (everything from goals,
sales, cleaning, challenges, etc.

1
332
A Manager’s Daily Productivity
Schedule
6) Take a lunch or dinner break (ALWAYS)
7) Work on business aspect of the spa (i.e. how much
are we spending, bringing in, etc.)
8) Get into the “up-system” and become a Gross
Monster
9) Ensure al staff training is done before 4 PM
10) Look at end-of-day production (sales, cleanliness,
retail sales-new APT’s, etc.)
11) Develop plan for tomorrow and do not leave until
the plan is completed
12) Go home and get a good night’s rest. You’ve had a
very productive day!

1
333
Multi-Unit Manager
“Keep my words positive:
Words become behaviors.
Keep my behaviors positive:
Habits become my values.
Keep my values positive:
Values become my destiny.”
-M.K. Gandhi

1
334
Stage 1: Brand Ambassador
“Does the right things and the right things right.”
 Culture Keeper: standard bearer who models
the way
 Authentic and disciplined
 Aligned with company goals
 Runs it like they own it
 Habitual Consistency
 Brings Energy (doesn’t take it away)
 Embraces technology
 Clear grasp of the non-negotiables
 Meets financial goals

1
335
Stage 2: Talent Scout
“Stop ‘managing’ people. Get better people.”
 Establishes a talent strategy
 Strengthens the Bench
 Prunes the Deadwood
 Hires s-l-o-w, fires fast
 Builds their own replacement
 Identifies tier talent daily
 Recruits to cultural fit, talent gaps, and
knowledge
 Knows the value of inside-out & outside-in
expertise
 Hires noticeably better people

1
336
People Power: Staffing For
Success People Sell & Retain Members!
Not the Facility!
oYou must separate myth from reality
oManagement skills don’t come as a gift from the
heavens; they mostly come hard won!
oIt is impossible to manage productivity without
hiring EFFECTIVELY
oManagers who consistently make poor hires-
ULTIMATELY FAIL!

1
337
Have you ever heard these tired
complaints?? “I can’t get good
help.” “I can’t keep good
people.”
“Nobody cares
about customer
service anymore.”
“I can’t afford to
hire the good
people”
“These kids today…
they just don’t
have it.”
“EAGLES DON’T FLOCK. YOU HAVE TO
FIND THEM ONE AT A TIME.”
- H. Ross Perot

1
338
EAGLES NOT TURKEYS!!
Your #1 priority toward your ultimate overall
success and/or failure is in recruiting champions!
We are in the hospitality &
participation business!
You can’t train people to SMILE to
give off Sunshine!

1
339
People can have all these great qualities:
o Time Management
o Organizational Skills
o Energy
o Motivation
o Determination
o Confidence
o Reliability
o Honesty
o Integrity
o Pride
o Dedication
o Analytical Skills
o Goal Orientation
o Profit Orientation
o Efficiency
o Procedure Oriented
Although very important supportive professional
behaviors, these things MEAN NOTHING IF THEY
CAN’T SMILE AND GIVE OFF SUNSHINE!

1
340
Contact Sport
You can’t use this person in a position that
requires customer & member contact!
Just wish them well and good luck on
their continued job search.
What you need is Champions
of Hospitality!

1
341
Where Do You Find
 Your main assignment isT toh CeONmST?ANTLY be looking for
smiles, service hospitality, and sunshine
 Even when you are fully staffed, never be satisfied. KEEP
LOOKING!
 And when you find it, you will say to this person, “You
were terrific! If you’re ever looking for another job please
give me a call.” Give your business card and make sure you
write on it, “You’re terrific! Give me a call. I could have a
great future for you!!”
Look everywhere where customer service & hospitality
take place—Be relentless and never—never stop.

1
342
Search, Search,
Search!
YOU HAVE TO MINE FOR DIAMONDS!
YOU HAVE TO PROSPECT FOR GOLD!
YOU HAVE TO DRILL FOR OIL!
YOU HAVE TO SEARCH FOR
CHAMPIONS!—EAGLES!!—SUNSHINE!!

1
343
S.W.E.L.L.
People that are caring, you see it in their SMILE,
hear it in their VOICE, and feel it in their WALK
You know that they love the moment.
Happiness is something they have created for
themselves.
They are gifted in the art of relating.
They are FRIENDLY! Friendly makes sales &
generating repeat business and PROFITS!

1
344
Ducks vs. Eagles
You can’t send a duck to eagle school
THEN MAKE HIRING
EAGLES AND TRAINING
THEM YOUR HIGHEST
PRIORITY!

1
345
Leadership: TThhrroouugghh tthhee EEyyeess ooff AAnn EEaaggllee
1) VISION
- An eagle’s eyes can see great distances
-Your vision must guide and lead towards the goal
2) EAGLES NEVER EAT DEAD MEAT
- As a leader you must go where the action is
- You must find lively people to grow your business
3) LOOKS FOR & FLIES INTO STORMS
- To leaders, storms (challenges) are tools used for your
development
4) VERY GENTLE AND ATTENTIVE TO THEIR YOUNG
- You must teach and train your organization

1
346
Eagles vs. Ducks
You can’t afford
ducks- they are
too expensive!
WHY???????

1
347
Reward
Reward people based on
accomplishment…rather than
being a model employee.

1
348
Everyone Must Be In The Race
http://www.youtube.com/watch?v=AhUhuDW_jOw

1
349
Creating Emotional
R Part 1: Operations/ Communications
Compensation
1. Policies and procedures
 Does your staff know what is expected of them?
 Employee handbooks/policy manuals, operational structure
 Job Descriptions with W.I.I.F.M.
 Philosophy or mission statements – How to Achieve These
Staff can’t meet or exceed expectations if
they don’t know what the expectations are.
These tools create clarity of communication
and a consistency in application

1
350
Part 1 continued…
2. Performance evaluations/assessments
 Are yours scheduled?
 Are they performed on time?
3. Employee Surveys
 Perform occasionally or as often as you
wish, but be certain you apply what you
learn
 Employee Suggestion box

1
351
Part 1 continued…
4. Explain the “why” when delegating or giving
instructions– “The Whole Picture”
 The depth of understanding of the reasons
behind an assignment is proportionate to the
degree of quality realized in the final product.
5. Involve your staff in the process
 Schedule all-staff meetings, and insist on
attendance (once per month) minimum
 Allows you to share company vision and
plans, and more importantly, allows you to
solicit input from them

1
352
Part 1 continued…
6. Build Relationships with your staff
 Schedule regular individual meetings, and keep
them!
 Know all you can about your spa employees-likes-
dislikes-hobbies, etc.
 Acknowledge employees’ contributions and
validate their efforts
 Go back to your spa and catch someone doing
something right. Take a minute to praise them in
public
 Say you’re wrong when you’re wrong
 Say “thank you” (always)

1
353
Part 1 continued…
7. Develop an outstanding new employee
orientation program & training
 Make attendance a condition of
employment & advancement, raises,
bonuses, etc.
 Use spa directors or outstanding front line
as presenters
Create a video/visuals to keep attention—
Use ALL tools

1
354
Part II: Education/Staff
Investment
1. Provide educational opportunities for
staff
 Pay ½ of educational costs after
courses have been successfully
completed, ½ a year later
2. Provide educational opportunities for
everyone
 Outside seminars with sales &
customer service in mind
 Continuing education courses
 Trade shows & conventions—
P.B.C.S. Annual Convention,
Advanced Training, etc.

1
355
Part II continued…
3. Spa Director Asst. Spa Director Training
Programs
 Bring in outside speakers on
management/sales/retail, etc
Create a staff development training
project/make greater responsibility the
reward
 Planet Beach Convention & Advanced
Training School
 Regional Training offered by P.B.C.S.

1
356
Part III:
Recognition/Compensation/Reward performance ONLY, Incentives
not seniority!
1. Employee of the month/quarter/year
 Team with a photo
 Annual awards that all staff vote on: “Unsung
Hero”, “Spa Consultant of the Year”
2. Individual bio boards (who they are & what position
they hold)
3. Use membership trade extensively
 Trade current members for travel, dinners, movie
tickets, sporting goods for staff rewards

1
357
Part III continued…
4. Company functions/parties
 Grab feast/Christmas/Birthday parties/Staff
Appreciation night (once a month)
5. Earn free days off with pay
6. Earn vacation destination of their choice- etc.

1
358
Part III continued…
Get Everyone in the Race!
 $$ Rewards Bonus for Team
Sales (score board)
 $$ Rewards Bonus for Individual
Sales Goals
 Double commissions on Referral
Sales!
 Major Commissions on Elite Spa
EFT Sales!

1
359
Biggest Mistakes Franchisees Make in
1) Making commitments they can’t oSr dtoanf’t fkieenp.g
- Managers must develop credibility
- Once the staff and members can’t trust your word, you’re in trouble
2) Not establishing effective lines of communication
- Members and staff members need a forum to vent
3) Establishing unrealistic budgets
- Many owners spend until they can’t without any outline of a budget
- Unrealistic budgets put unrealistic expectations on the performance
4) You are only as good as your weakest link
- You must learn to delegate the jobs, give proper instruction, and then follow up
5) Hiring wrong the first time

1
360
You Can’t Do
Everything
No business can do everything
Even if it has the money, it will
never have enough good
people.
NEVER-NEVER-NEVER stop
requesting & searching for
eagles!

1
J.P.’s Thought on Hiring & Keeping the Best
361
People
1) Have a clear picture of exactly what you are
looking for—the best qualities…IS IT AN EAGLE
OR A DUCK?
2) Reward team members for doing a great job
hitting & exceeding goals—not for getting close!
3) Demotivation = employees not knowing what is
expected.—EDUCATE, EDUCATE!
4) Lack of growth in employees and production
“Doing very well on what does not need to be
done at all!”

1
J.P.’s Thought on Hiring & Keeping the Best
362
People
5) Quality of trust. Employees free to make mistakes
without being dumped on.
6) Create a great place to work = positive
performance feedback
7) No false promises = never forget a promise: an
employee will never forget!
Personal Integrity
8) Most important—training & instruction need to be
constant.
“The only thing that gets people up is knowledge!”
The feeling of competence = great performance

1
363
Stage 3: Servant Leader
“My customer is anyone who isn’t me.”
 Knows employees are the first market
 Collaborator (P2P sharing)
 Thermostat not Thermometer
 Expert Listener
 Knows that “Everything Speaks”
 Shares the same reality
Excellence reflex
 Customer advocate/sees operations through the
customer lens

1
364
Customer Service
We are in the service business.
In the business of serving people,
service can be either good or bad—it
depends strictly on you!
Our duty is to provide an enjoyable
atmosphere in the Contempo Spa
WITH SERVICE EXCELLENCE AS OUR GOAL!

1
365
C.A.R.E.S. = RETENTION
Customers Are Retained by Excellent
Service

1
366
C.A.R.E.
“It is one of the most beautiful personal
rewards that no one can sincerely help
another without helping himself.”
C Character
-Ralph Waldo Emerson
Capable
Companion
Concern
A
Ability
Acceptance
Affection
R
Attitude
Resourceful
Responsible
Rewarding
E
Ethical
Excellence
Enthusiasm
Encouragement

1
367
Commitment to Quality &
Excellence
Your commitment is to set service
and excellence at a whole new level
for your Contempo Spa.
We seek to attract people who take
pride in being and doing their best
and being part of an organization
with a reputation for excellence &
superior customer service

1
368
Be Aware of the Needs
of our Members
1. Recognition- “Hi!” & “Goodbye!”
- They have to hear their name. Give them BIG “Hello’s!” and “Goodbye’s!” by
NAME
- Thank them for coming in and plant the seed of retention- “When will we see
you again?”
2. Concern- Your concern for them must be genuine. Show your sincerity, in
assisting them.
3. Patient- Be patient & humble as some people do not adjust to your organization
as fast as others. They may need more encouragement. Be free with
compliments & have a helpful, understanding attitude.
4. Leadership- You must project yourself to each & every member so they are eager
to use your Planet Beach Contempo Spa. Show how much you believe in your
product through your enthusiasm & knowledge.

Service- An Ability You
1
Will Have to Develop
369
o Service is defined as doing more than the
members would expect from you…
SURPRSE THEM!
o Continually encouraging and convincing
them to try to help themselves by listening
to us and never giving up on anyone as a
lost cause is what we mean by service

1
370
Ken Blanchard: Raving
Fans
“The key to success is to
create Raving Fans”
“Making people feel
special is part of the
process of creating
raving fans”

1
371
Adherence &
Retention Drop- out rates for those beginning a
tanning and spa program are alarming.
A Survey on… “Why customers quit” found the following:
-3% move away
- 5% develop other friendships
- 9% leave for competitive reasons
- 14% are dissatisfied with the product
- 68% quit because of an attitude of indifference toward
the customer by the owner, manager, or some employee

1
372
The Economics of Retention &
Loyalty
o Keeping members drives profitability. Existing members
cost less to reach, less to sell, are less vulnerable to
attacks from competition, and buy more over the long
term
o Long term satisfied members provide more referrals!
o The average business spends 6 times more to attract
new customers than it does to keep old ones. Yet
customer loyalty is in most cases worth 10 times the price
of a single purchase
o It’s easier & less costly to keep existing members than
to acquire new members. The more members you keep
through active retention efforts, and the longer you keep
them, the more profitable you Planet Beach Contempo
Spa will be!

1
373
The “11 Deadly Sins” of Customer
Service 1. “I don’t know.”
 Customers expect you to know
 Add 3 essential words… “I’ll find out.”
2. “I don’t care.”
 Our customers want you to care about seving
them
 When your attitude, conversation, or
appearance makes it clear you’d rather be
somewhere else, they’ll find themselves
wishing the same thing
3. “I can’t be bothered.”
 Actions speak louder than words

1
374
Service
4. “I don’t like you.”
Customers are sensitive to attitudes
that subtly or overly say, “You are a
nuisance; please go away.”
5. “I know it all.”
 When you jump in with a solution
before a customer has finished explaining
the question, that’s being pushy
6. “You don’t know anything.”
 There are no dumb questions, only
dumb answers.

1
375
Service
7. “We don’t want your kind here.”
Prejudice comes in all shapes or sizes, ages,
colors, and educational levels.
 Every customer wants and deserves to be
treated with courtesy and respect
8. “Don’t come back.”
The purpose of serving our members is to get
them to come back again and again.
We need to thank our customers for their
patronage and loyalty
9. “I’m right, you’re wrong.”
 Customers are not always right, but it
doesn’t cost us anything to give them the
benefit of the doubt

1
376
Service
10. “Hurry up and wait.”
Time may be the #1 obsession for people
today
 Respect our customer’s time and they
will respect us in turn
11. “Never turn your back on a customer.”
 The rudest body language that you can
convey to any member is to have your
back to them

1
377
Positive Phrasing
Negative Phrase:
“I don’t know”
“We can’t do that”
You’ll have to…”
“Hang on a second, be right
back.”
“No” when used at the
beginning of a sentence
Positive Phrase:
“Gee that’s a good question. Let me
check and find out for you.”
“Boy, that’s a tough one. Let me
see what we can do.”
Soften the request with, “Would
you please”
It may take me 2 or 3 minutes to
get that for you, do you mind
waiting?
“We aren’t able to give you a cash
refund but we would be more than
happy to allow you to exchange it”

1
378
Positive Responses
“Thank You”
“Please”
“Consider it done”
“I’ll take care of that for you”
“Certainly, sir or ma’am or the individual’s
name”
“I understand how you feel”
“No problem” (The exception to “No” in a
sentence)

1
379
A Short Course in Human
SIX most important words…
“I admit I made a mistake”
FIVE most important words…
“You did a good job”
FOUR most important words…
“What is your opinion”
THREE most important words…
“If you please”
TWO most important words…
“Thank you”
THE LEAST important word…
“I”
Relations

1
380
Focus on Retention
“Loyal customers and members
outspend others13 to 1.”
Remember the “Secret” of the
‘Spa business’ & the “Rules
of 5.”

1
381
Loyalty & Retention
IF 80% OF CUSTOMER LOYALTY COMES FROM
CUSTOMER SATISFACTION…
AND CUSTOMER SATISFACTION COMES FROM
YOUR PLANET BEACH CONTEMPO SPA
TEAM…
REMEMBER…
The only thing that we’re
selling is a customer service
promise .

1
382
Stage 4: Head Coach
“The more you spend on training the less you
spend on advertising.”
 Focuses on know why before know how
 Teaches everyone something new daily
 Brilliant at the Basics: works on fundamentals
daily
 Team Builder
 Finds coach-able moments every day
 Makes tough calls
 Adapts coaching style to learner
 Coaches to the career-path
 Makes the company money

1
383
Stage 5: Marketing Guru
“Marketing is a philosophy, not a department.”
 ABM (Always Be Marketing) mindset
 Equally adept at both external & internal marketing
 Views marketing as a philosophy not a “department”
 Learns the difference in each market
 Connects with the community
 SWOT analysis for every spa
 Connector: has both know how and know who

1
384
Stage 6: Synergist
“Multi Unit Management is a thinking, not a
‘doing’ job.
Can design and execute effective Annual or
Quarterly Business Plans
 Can design and execute results-driven Store
Visits
 Connects the dots between the Quarterly
Business Plan, Period Goals and Shift Execution
 Strategic Thinker
 Matches Strategy to Situation

1
385
Stage 7: Goal-Getter
“Well done is better than well said.”
 In it to win it
 Throws the cap over the wall
 Plays to tin instead of playing not to lose
 Knows School is never out for the Pro
 “The Buck Stops Here” Mentality

1
386
The End…of the Beginning
“Change with the times or the times will change you!”
“Success should be linked to excellence and
fulfillment. Success is about who you are not what you
have. Successful people work to discover their talents,
to develop those talents, and then to use those talents to
benefit others as well as themselves.”
-Anna Muoio
“Faced with the choice between
changing one’s mind and proving that
there is no need to do so, almost
everybody gets busy on the proof.”
-John Kenneth Galbraith

1
387
EVOLVE & REVOLVE
Multi-Unit
FJrohna Panul, Ecxechutivei Csonisunltantg

1
388
Multi UUnniitt RReevvoolluuttiioonn
According to FRANdata, for the first
time in franchising history, more
than 50% of all franchise units are
owned by multi-unit franchisees.

1
389
“Lately, the modest dream of running a
single franchise location seems almost
passé. Multiunit development appears to
be taking over as the primar y goal of savvy
business owners. For these ambitious
entrepreneurs, franchising is less about
making a living than it is about increased
growth, power and money.”
EEnnttrreepprreenneeuurr MMaaggaazziinnee

1
390
SSHHOOWW MMEE TTHHEE MMOONNEEYY
 TThhee aavveerraaggee nneett iinnccoommee ffoorr aa SSIINNGGLLEE uunniitt ffrraanncchhiissee iiss $$7766,,000000
 TThhee aavveerraaggee nneett iinnccoommee ffoorr aa MMUULLTTII--UUNNIITT ffrraanncchhiissee iiss
$$114422,,000000!!
 FFrraanncchhiisseeeess wwhhoo oowwnn mmuullttiippllee uunniittss hhaavvee aa ssuucccceessss rraattee
ooff 9977%%..
 IINNRREEAASSEEDD MMAARRKKEETT SSHHAARREE==IINNCCRREEAASSEEDD PPRROOFFIITTSS
IIFFAA

1
391
Multi-Unit Franchising, is one of the
SMARTEST things you can do to
ensure your financial success!!
So how do we do it?

1
392
If multi-units are more successful and
profitable, why doesn’t everyone do it?
 Don’t know how or where to begin expansion .
 Don’t know what resources are available to them.
 Don’t know the advantages of multi-unit
franchising.

1
393
How to
catch
the BIG
FISH!!

1
394
SSPPRREEAADD TTHHEE RRIISSKK
TThhee aaddvvaannttaaggee ggaaiinneedd ffrroomm hhaavviinngg mmuullttiippllee uunniittss iinn aa
ggiivveenn aarreeaa:: yyoouu ccaann sspprreeaadd tthhee rriisskk.. IItt''ss uunnlliikkeellyy tthhaatt aallll
tthhee ssttoorreess wwiillll hhaavvee aa ddoowwnn ppeerriioodd aatt tthhee ssaammee ttiimmee..
WWhheenn ttiimmeess aarree ssllooww ffoorr oonnee,, tthhee ootthheerrss wwiillll ppiicckk uupp tthhee
ssllaacckk..

1
395
SSPPRREEAADD TTHHEE WWOORRKK
 SSiinnggllee uunniitt ffrraanncchhiisseess hhaavvee ttoo bbee tthhee wwhhoollee oorrcchheessttrraa..
 MMuullttii--uunniitt ooppeerraattoorrss uussuuaallllyy hhaavvee tthhee aabbiilliittyy ttoo ggaaiinn
eeccoonnoommiieess ooff ssccaallee aanndd sspprreeaadd tthheeiirr oovveerrhheeaadd ccoossttss
oovveerr mmoorree uunniittss,, tthheerreebbyy rreedduucciinngg tthheemm.. SSoommee ooff tthheessee
ccoossttss iinncclluuddee ssttaarrtt--uupp,, hhiirriinngg,, ttrraaiinniinngg,, eemmppllooyyeeee aanndd
ccuussttoommeerr rreetteennttiioonn aanndd aaddvveerrttiissiinngg..

1
396
SSPPRREEAADD TTHHEE WWEEAALLTTHH
 MMuullttii--uunniitt ffrraanncchhiissiinngg rreecceeiivvee
 rreedduucceedd ssttaarrtt--uupp ffeeeess!!
 rreedduucceedd rrooyyaallttyy ffeeeess?? OOppeenn ffoorr
ddiissccuussssiioonn
LLEETTSS TTAALLKK AABBOOUUTT IITT WWIITTHH TTHHEE PPAANNEELL..

1
397
MMuullttii UUnniitt SSttaaffffiinngg
THE SECRETS
TO MULTI-UNIT
SUCCESS

1
398
#1 Success Secret of Multi-Unit
Ownership
People

1
399
STOP Managing
People
Get Better People

1
400
AREA DEVELOPER MAGAZINE
Candace:
“if you have it
in you to be
successful, and
your
passionate,
you’re going to
do just that,
whether you
have the
experience or
not.”
Brent:
“Plan to be
involved
everyday
because
nobody will
have passion
for your
business like
you do.”
Area Developer
Magazine:
Featured
Candace and
Brent Marek as
successful multi-unit
Planet
Beach
Franchisees !

1
401
MMUUMMSS
Customer
Service
Alternate Compliance
Consultant
Hiring
Multi-Unit Manager
Training
Marketing
(MUM)
Spa 1
Spa Director
Asst.Spa Director
Spa 2
Spa Director
Asst.Spa Director
Spa 3
Spa Director
Asst.Spa Director
Spa 5
Spa Director
Asst.Spa Director
Spa 4
Spa Director
Asst.Spa Director
STAFFING FOR ULTIMATE SUCCESS AND SECURITY

1
402
MMUUMM OORR NNOOTT AA MMUUMM
TOP PREFORMING SPA
DIRECTORS
BOTTOM PREFORMING SPA
DIRECTORS
Tough on standards, easy on people Variable stds. and treatment depending on
who is managing that shift
Runs it like they own it Runs it like it is a Monday, or Thursday…..
Trains team daily Trains during orientation
Brilliant at the basics Sloppy, inconsistent fundamentals
Accountable, disciplined “Not my fault”
Focus, Goal Setting, Execution “I can’t believe you did this bad.”
MUM in the Making Will Never Make a MUM

1
403
Multi-unit Staffing SSuucccceessss PPyyrraammiidd
Members
Customers
Staff
Spa Directors
MUM
Regional VP Executives
Franchise Owner

1
404
EVOLUTION-YOUR JOURNEY
BEGINS…
The #2 Success Secret of Multi-
Unit Ownership
Operations

1
405
PPllaanneett BBeeaacchh OOppeerraattiinngg EEffffiicciieenncciieess
EEdduuccaattiioonn== CCrreeaattiinngg IInntteerrcchhaannggeeaabbllee PPaarrttss CCrreeaattiinngg CCoonnssiisstteennccyy
 PBU online training courses, Six-day Franchisee /Spa Director
school, Conventions and Seminars
 Master’s PBU courses and Advanced 3-day Education Classes
--April- SalesJune- OperationsSeptember-ManagementOctober-Marketing
MMaarrkkeettiinngg//AAddvveerrttiissiinngg//PP..RR..
 Design and distribute adver tising, Location and demographic
specific, Create repetition and consistency in the market, broader
reach, larger market share

1
DDEEVVEELLOOPPMMBEEENNGTT IIINNNFFRRSAA…SSTTRRUUCCTTUURREE ::
SSeeccuurriinngg FFrraanncchhiissiinngg ttoo UUnnlleeaasshh EExxppaannssiioonn
$$$$$$YYEESS iitt’’ss aabboouutt tthhee NNUUMMBBEERRSS!! $$$$$$
SSeeccuurriinngg aa rreelliiaabbllee ccaappiittaall ssoouurrccee ttoo ffuueell eexxppaannssiioonn
406
iiss oonnee ccrriittiiccaall ffaaccttoorr.. BByy hhaavviinngg aa ssttrraatteeggiicc,,
ccrreeddiibbllee ggrroowwtthh ppllaann,, aanndd bbyy bbeeiinngg aabbllee ttoo
ddeemmoonnssttrraattee ppaasstt ooppeerraattiinngg eexxppeerrttiissee aanndd ffiinnaanncciiaall
aaccuummeenn aanndd rreessppoonnssiibbiilliittyy,, oowwnneerr--ooppeerraattoorrss ccaann
sseeccuurree ffiinnaanncciinngg ffoorr eexxppaannssiioonn,, aanndd rreeaapp tthhee
pprrooffeessssiioonnaall aanndd ffiinnaanncciiaall rreewwaarrddss..

1
407
BEGINS…
Partnering wwiitthh aa LLeennddeerr-- ffiinnaanncciinngg
ppaacckkaaggeess ccrreeaatteedd ttoo aassssiisstt wwiitthh uunniitt aanndd eeqquuiippmmeenntt
aaccqquuiissiittiioonn aanndd rreeffiinnaanncciinngg..
•FFrraannFFuunndd--aa lleennddeerr wwiitthh ffrraanncchhiissee eexxppeerriieennccee
•IItt ppaayyss ttoo ddeeaall wwiitthh aa lleennddeerr wweellll vveerrsseedd iinn yyoouurr bbuussiinneessss.. AA
lleennddeerr tthhaatt iiss ffaammiilliiaarr wwiitthh tthhee ffrraanncchhiissiinngg bbuussiinneessss wwiillll bbeetttteerr
uunnddeerrssttaanndd aann aapppplliiccaanntt’’ss nneeeeddss tthhrroouugghh tthhee lliiffee ooff tthhee lleennddiinngg
rreellaattiioonnsshhiipp..
FFiinnaannccee ccoonnssuullttiinngg EEqquuiippmmeenntt lleeaassiinngg SSttaarrtt--uupp CCaappiittaall

1
408
BEGINS…
DEVELOPMENT IINNFFRRAASSTTRRUUCCTTUURREE ::
•PPllaanneett BBeeaacchh LLeeaassiinngg DDeeppaarrttmmeenntt
--FFeeaassiibbiillttyy SSttuuddyy
--LLooccaattiioonn MMaappppiinngg SSooffttwwaarree
--NNaattiioonnaall RReeaall EEssttaattee BBrrookkeerr rreellaattiioonnsshhiippss
--RReeaall EEssttaattee AAttttoorrnneeyy rreellaattiioonnsshhiipp
--LLeeaassee NNeeggoocciiaattiioonnss
•PPllaanneett BBeeaacchh DDeessiiggnn && CCoonnssttrruuccttiioonn DDeeppaarrttmmeenntt
--SSppaaccee PPllaannnniinngg
--SSiittee SSuurrvveeyy
--EEnnggiinneeeerriinngg && GGCC FFiirrmm rreellaattiioonnsshhiippss
--CCoommppoonneenntt vveennddoorr rreellaattiioonnsshhiippss

1
409
BEGINS… REVENUE PRODUCING IINNFFRRAASSTTRRUUCCTTUURREE ::
•PPllaanneett BBeeaacchh NNeeww PPrree--SSaallee aanndd CCoonnvveerrssiioonn PPrrooggrraamm
Pre-Sale Grand Opening Program (12mth duration)
-Creates accelerated profits, revenues and R.O.I.
- Elite EFT membership strategies
Conversion Re-Grand Opening Program (12mth duration)
-Creates accelerated profits and revenues
-New, innovative Contempo Spa Conversion Program
Education
- Advance training and education for Franchisees, Muli-unit
managers (MUMS), Spa Directors, and Staff

1
410
BEGINS… REVENUE PRODUCING IINNFFRRAASSTTRRUUCCTTUURREE ::
PPllaanneett BBeeaacchh NNeeww RReesseeaarrcchh aanndd DDeevveellooppmmeenntt ffoorr aa
GGRREEAATTEERR mmaarrkkeett sshhaarree aanndd eexxppaannssiioonn..
•PPllaanneett BBeeaacchh NNeeww PPrroodduucctt DDeevveellooppmmeenntt
-Holistic skin care line product line
-Planet Beach Nutrition products and programs
- Guided meditation through Spa Tempo
-Cloud 9
•PPllaanneett BBeeaacchh RReettaaiill PPrroodduuccttss && LLeeaaddiinngg EEddggee EEqquuiippmmeenntt
-Leading the Contempo Spa industry in
product and equipment development .

1
411
BEGINS…
Unit Ownership
Profitability

1
412
R.O.I.
Multi-unit expansion is a great way to take
advantage of economies of scale!
Opening many locations at once or over a planned period of
time, enables the multi-unit operator/franchisee to LOWER
start –up and operating costs and realize efficiencies in
staffing, training, purchasing, marketing, and accounting.
Greater visual presentation and market recognition.
Success breeds Success stabilization of total revenue

1
413
R.O.I.
NO MORE MOM AND POP
MANAGEMENT!!
STRATEGIC IN-DEPTH MULTI-UNIT BUSINESS
PLAN YOUR BIBLE AND GAME PLAN
GROWTH ONLY WITH PROFITABILY MUST BE YOUR FOCUS!
RAMP-UP PHASES WITH THE TIMES LINE BASED ON PROJECTED
PROFITABILTY.

1
414
R.O.I.
EVERYONE MUST BE IN THE
RACE!
WEEKLY ACCOUNTABILITY AND GOAL SETTING-ALLSTAFF
QUARTERLYAGGRESSIVE TEAM BONUS PROGRAM
ANNUALY TARGETED TEAM AND INDIVIDUAL BONUS
PROGRAM
W.I.I.F.M.

1
415
BEGINS…
Unit Ownership
FIRST TO
MARKET

1
416
BEGINS…
Expanded marketplace and
uncontested waters
Fish in the
Blue Ocean

1
417
BEGINS…
Expanded marketplace and
uncontested waters
I don’t want to be in the red
ocean!

1
418
BEGINS…
UUSSPP
RReemmaaiinn aahheeaadd ooff tthhee ccuurrvvee aanndd mmaarrkkeett
ttrreennddss..
DDoonn’’tt ccoommppeettee wwiitthh rriivvaallss,, mmaakkee tthheemm iirrrreelleevvaanntt!!
Planet Beach created the Contempo Spa. At the touch of a
button, our members enjoy a private spa experience at a fraction
of the cost and in far less time than the day spa.

1
419
What one man can do, another can do!
We do not have time to reinvent
the multi-unit franchising
wheel!
Just follow what systems, procedures, policies
& strategies other great franchisors have
created.
All first to market multi-unit franchises-
MacDonald’s, Krispy Kreme, Gold’s
Gym, Blockbuster, Supercuts, Subway

1
420
J.P.’s Thoughts On
1. If someone throMwsa ynoua thgee bmall, eyonut don’t have to
catch it.
We accept challenges; we do not accept being disrespected
and victimized, or being overwhelmed
2. The Passing Feelings
We’ve been happy, sad, jealous, depressed, angry, in love,
shamed, proud, and every other human emotion!
Where did they all go?
All disappointment comes in 2 ways:
(1) We want pleasure to last forever
(2) When we experience pain, we want it to go away fast- it
never does!

1
421
J.P.’s Thoughts on
Management
3. Have fun, enjoy the process
Enjoy what you do; what you have – not what you want. You
will spend your life always chasing happiness!
- Getting lost and overwhelmed in the chaos, responsibilities
of life
- Not clearly seeing and believing the process or outcome:
creates stress. NO FUN!!
We argue for our limitations or our beliefs, and they become
the problem, they become our limitations! Have fun, enjoy
the process!

1
422
Management
4. Seek to understand.
When you understand another person’s position and points of
view, you grow & learn—it’s energizing!
5. Challenges & Obstacles are the fun part of business!
Circumstances don’t make the person, they reveal him or her!
Often, we make a big deal out of nothing; we blow up scenarios
in our mind. Always remember, maybe so, maybe not.
6. We become what we practice most!
Does shit always happen?
7. Eye of the Storm
Keep moving to the center of your plan, your goal, your to-do
list and do one thing at a time!

1
423
Management
8. The Soap Opera
It turns life into an emergency: a melodrama, the “end of the
world” mentality. They never show FUN!
9. Understanding Separate Realities
What is your reality; it’s different from mine!
10. Life is a test, it is only a test- have FUN!
Without resistance we cannot grow.
Wherever you go, there you are – have FUN!

1
424
“Think and Grow Rich”
The word “impossible” is
not recognized by
successful men, but it is a
handy alibi of the man
who is a failure.
“The best way to predict the
future is to create it”
Peter Drucker

1
425
25 “Musts” for the Start-Up
Entrepreneur
1) You must develop the ability to see the
needs and wants of others
2) You must find a market gap – U.S.P!
3) You must become a service and quality
fanatic
4) You must get started
5) You must offer your original investors
the chance to profit in a big way
6) You must start small
7) You must use the telephone constantly
for acquiring all kinds of information
8) You must hire the best people and
generate entrepreneurial excitement

1
426
Entrepreneur 9) You must charge enough, meet problems
head on and collect your money upfront—
watch your retail margins
10) You must develop a written strategy that
helps your staff grow, improve, or profit
11) You must aim constantly to become the
dominant spa in your area/region
12) You must maintain honesty and integrity
always—and in all dealings
13) You must accept no freebies- “There is
no free lunch”
14) You must be generous to employees with
wages & profit-sharing benefits—
Remember when you win $$ they win $$
15) You must see your company as global,
rather than local or regional; a part of the
whole Plant Beach Contempo Spa Family.

1
427
Entrepreneur
16) You must develop tenacity and
perseverance to survive the days and
nights of anxiety
17)You must manage your company for
constant mistake avoidance
18) you must win your customers back again
and again
19) You must apply fail safe range of
management checkpoints and controls
20) You must establish a corporate
philosophy that stresses quality and
service
21) You must develop an error-free reporting
system

1
428
Entrepreneur
22)You must constantly seek to pay
minimum taxes, but always stay within
the law
23) You must diversify into those areas that
fit and supplement your existing business
24) You must find something worthwhile to
do with the money you earn
25) You must leave your company or service
when you are no longer excited about
what you do

1
429
10 Truths for the Boss: “Character
Counts” 1. The more certain you are that “it can’t happen here” the
more likely it is that it will. Be careful about over-confidence
and complacency.
2. There are lots of things you don’t know, and lots of people
who hope you don’t find out. Hardly anybody tell you the
whole truth anymore. Information is filtered through the
fears and career aspirations or subordinates and many
employees believe you will “kill the messengers” if they
deliver bad news so they tell you what they think you want
to hear.
3. To those who want to please you, your whisper is a yell and
your comments are commands. Be careful, people may do
foolish things to please you.

1
430
Counts”
4. What you allow, you encourage.
5. There’s never just one bad employee; there’s the employee
and the manager who keeps him.
6. At least someone that works for you is “gaming” the system
so they appear to reach their business objectives with
smoke and mirrors rather than a real achievement
7. According to the law of big numbers, if you have lots of
employees, you probably have a few crooks and
psychopaths working for you

1
431
Counts”
8. Few people think as highly of your ethics as you do
9. No matter how many good things you do, you will be
judged by your last worst act.
10. No matter what your job description says, what matters
most is how you manage relationships and people

1
432
Thoughts on
“They are able because youE xcellence
think they are able.”
-Virgil
“Fill the unforgiving minute
with 60 seconds worth of
distance run.”
-Rudyard
Kipling
“Life is either a daring
adventure or nothing.”
-Helen
Keller
“The tragedy in life is not so
much what men suffer, but
rather what they miss.”
-Thomas
Carlyle
“He turns not back who is
bound to a star.”
-Leonardo da Vinci
“All men dream: but not
equally.”
-T.E. Lawrence

1
433
“Success seems to be largely
a matter of hanging on after
others have let go.”
-William
Feather
“I never set out to beat the
world. I just set out to do
my absolute best.”
-Al Oerter
- K.M.
“We know what we arel
but we know not what we
may be.”
-William
Shakespeare
“We acquire the strength we
have overcome”
-Ralph Waldo
Emerson
More Thoughts on
Excellence

1
DAY 3:
Raising the Bar- 9 to 2
What It Takes to Be #1
Help Wanted Ads-Examples
Time Management
Long Term Planning-The 24 Month Plan
Budgeting
Extra Nuggets:
J.P.’s 100 Secrets for Success
Business & Leasing Terminology
Spa Director’s Checklist for Opening & Closing
Recognition, Compensation Incentive
Suggested Job Descriptions & Compensation
434

1
435
Facing The Giants
Scene from the movie:
FACING THE GIANTS
http://www.youtube.com/watch?v=-vB59PkB0eQ

1
436
What It Takes To Be
#1
You’ve got to pay the price.
Winning is not a sometime thing; it’s an
all-the-time thing. You don’t win once in a while,
you don’t do things right once in a while, you do
them right all the time. Winning is a habit.
Unfortunately, so is losing.
There is no room for second place. There is
only one place in my game and that is first place. I
have finished second twice in my time at Green Bay
and I don’t ever want to finish second again. There
is a second place bowl game, but it is a game for
losers played by losers. It is and always has been an
American zeal to be first in anything we do and to
win and to win and to win.

1
437
What It Takes To Be
#1
Every time a football player goes out to play
his trade, he’s got to play from the ground up—from
the soles of his feet right up to his head. Every inch of
him has to play. Some guys play with their heads.
That’s OK. You’ve got to be smart to be #1 in any
business. But more important, you’ve got to play with
your heart– with every fiber of your body. If you’re
lucky enough to find a guy with a lot of head and a
lot of heart, he’s never going to come off the field
second.
Running a football team is no different from
running any other kind of organization– an army, a
political party, a business. The principles are the
same. The object is to win– to beat the other guy.
Maybe that sounds hard or cruel. I don’t think it is.

1
438
What It Takes To Be
It’s a reality of life that men are competitive and the
most competitive games draw the most competitive men.
That’s why they’re there– to compete. They know the rules
and the objectives when they get in the game. The objective
is to win– fairly, squarely, decently, by the rules– but to win.
And in truth, I’ve never known a man worth his salt
who is the long run, deep down in his heart, didn’t
appreciate the grind, the discipline. There is something in
good men that really yearns for, needs, discipline and the
harsh reality of head to head combat.
I don’t say these things because I believe in the
‘brute’ nature of man or that men must be brutalized to be
combative. I believe in God, and I believe in human decency.
But I firmly believe that any man’s finest house– his greatest
fulfillment to all he holds dear– is that moment when he has
worked his heart out in a good cause and lies exhausted on
the field of battle—victorious.
-Vince Lombardi
#1

1
439
Awaken the Leader in
You “The miracle power that elevates the
few is to be found in their industry,
application, and perseverance, under
the promptings of a brave determined
spirit.” -Mark Twain
1) Humility/With Leadership
2) SWOT Yourself/Do What You’re Best At More
3) Follow Your Bliss/What Makes You Happy
4) Dream Big/ What Can You Possibly Achieve
5) Vision/ What’s Next Always
6) Perseverance/ Press On—Never Give Up
7) Honor Your Word/ Integrity
8) Get a Mentor/ Seek Wisdom
9) Be Yourself/ Always

1
440
Excellence
“I have never met anyone who
went to work that said I can’t
wait to go in and screw up!”
Few people go to work
intending to perform poorly.
Managers must show them how
to pursue excellence.

1
441
K.I.S.S.
“There is no job so
simple that it cannot
be done wrong.”
SEE ATTACHMENTS FOR:
Suggested Job Descriptions & Compensation
Opening & Closing Check Lists

1
442
Recognition Compensation
Incentives
“Without constant, continuing
training and various team and
individual incentive schemes,
we consign ourselves to
getting mediocre results.”
-Tom Peters

1
443
Emotional Commitment
Profit sharing creates
emotional commitment…People
can smell emotional
commitment from a mile away.

1
444
Reward Forward
Movement
People and mules are much
alike in that they can often
be led where they can’t be
driven!

1
445
Receptionist Job Description &
Responsibilities
1. Pass out Customer Satisfaction Surveys
2. Email Blasts
3. Birthday Board & Cards
4. VIP list updated daily
5. Phones on the charger
6. Member retention & thank you cards
7. Inventory
8. Calendar for Retention Calls

1
446
Receptionist Job Description &
Responsibilities
9. Print the following day’s appointments
10. Membership Agreements are checked
11. Answering Multiple Phone Lines
12. Knowing the Phone Scripts
13. Lotion Displays
14. Check with the Spa Consultant
SMILE & BE HAPPY!! BE SURE YOU
ARE ALWAYS LOOKING THE
CUSTOMER IN THE EYE AND BEING
AS FRIENDLY AS POSSIBLE!!!!

1
447
HELP WANTED ADS: Typical
SEaxleasm Spplae s
Consultants
NOT MAKING WHAT YOUR WORTH
Look for a career change in the fastest growing industry in the
world—Contempo Spa– WE ARE RECESSION PROOF—WE ARE
THE ANTI RECESSION STRESS REMOVER. We need women &
men who are into wellness-stress reduction-anti aging skincare
and have an abundance of enthusiasm. Come make a fantastic
career change into spa membership sales.
REQUIREMENTS:
Self Starting Individual who loves selling spa health- spa
wellness- and spa beauty!
SEND YOUR RESUME
CALL
EMAIL
For Personal Interview

1
448
Spa DirectEoxras/mApssliesstant Spa
Directors
SPA DIRECTORS NEEDED
The largest international Contempo Spa Franchise is expanding.
We are looking for positive individuals who a proven track
record in hospitality management, who wish to launch a new
career into spa wellness- spa stress reduction- spa anti aging-and
spa skincare.
WE ARE RECESSION PROOF. THE SKY IS THE LIMIT!
REQUIREMENTS:
Enthusiastic self starter who loves managing people in the
fastest growing spa industry.
SEND YOUR RESUME
CALL
EMAIL

1
449
Spa ERxecaempptiloensist
SPA RECEPTIONIST & REGISTRATION
Seeking career oriented people interested in the spa industry.
REQUIREMENTS:
Enthusiastic, motivated, hospitality focused individuals who
enjoy working with people. Great phone & computer skills a ples
for $$ and placement.
SEND YOUR RESUME
CALL
EMAIL

1
450
TIME
The #1 Priority on
Everyone’s Agenda in
the New Millennium
and into the Future.

1
451
Time Management
“Many people take no
care of their money
until they come
nearly to the end of
it: Others do just the
same with their time”
-
Geothe

1
452
Time Management
Don’t Just Work Hard, Work Smart!
Keys to Working Smart
Know what you want to accomplish
Set your goals to win.
Know when to call an audible
Improve Your Time Management Skills
4-D System
To-Do
To-Delegate
To-Delay
To-Drop
Make a list for each “D”
Be Organized
Plan Ahead

1
453
Time Management
Points to Remember:
Acknowledge what wastes your time
Don’t try to accomplish too much in one meeting
Be consistent
Understand the big picture
Be realistic about deadlines
Learn from days you manage well
To take on more responsibility, you can not work more;
you have to work smart.

1
454
THINGS TO DO: BY WHEN:
DAY: TIME:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Time Management: 4 D’s

1
455
TO DELEGATE: TO WHOM: BY WHEN:
1.
2.
3.
4.
5.
6.

1
456
TO DELAY: UNTIL WHEN:
1.
2.
3.
4.
5.
6.
TO DROP:
1.
2.
3.
4.
5.
6.

1
http://www.youtube.com/watch?v=rvxoltdiaUQ
457
TIRED???
Are you tired?
Do you feel awful?
Run down?
Overworked?
Perhaps there is
a reason why.

1
458
TIRED???
We have run across some absolutely irrefutable statistics that show
exactly why you are tired. And Brother, it’s no wonder you’re tired!
There aren’t as many people actually working as you may have
thought. At least, not according to this survey recently completed.
The population of the country is 100 million, but there are 2 million over
60 years of age, leaving 98 million to do the work. People under 21
total 54 million, which leaves 44 million to do the work. Then there
are 21 million who are employed by the federal government, and this
leaves 23 million to do the work. Then 10 million are in the Armed
Forces, leaving 13 million to do the work. Deduct 12,800,000 (the
number in state/city offices) and that leaves 200,000 to do the work.
There are 126,000 in hospitals, insane asylums, and other mental
institutions, & that leaves 74,000 people to do the work. But 62,000
of these are bums or vagrants who refuse to work, so that leaves
12,000 to do the job.

1
459
TIRED???
Now, it may interest you to know that 11,998 people are in jail,
so that leaves just 2 people to carry the whole load. That is
YOU and ME, pal, and I’m getting tired of doing everything
myself!

1
460
Managing to the Goal
As a spa director, you must always be aware
of your GOALS: financial goals, spa cleanliness
goals, and many others
You may ask, “Is it necessary to monitor EVERY
SINGLE GOAL every day?”
The Answer: It is absolutely essential
to your spa’s success!

1
461
NUMBERS, NUMBERS, NUMBERS
THE STATS- WHAT ARE THEY & WHY
DO WE NEED THEM?
Defensive stats: What are they? Who needs these?
Offensive stats: What are they? Who needs these?

1
462
OFFENSE
Examples of Offensive Stats:
 How many guests from rules of five
 How many guests are brought in by new member
How many appointments were made for weekend
from new member
 How many family add-ons today
 How many corporate contracts today
 How many referrals we sold today
 How many team passes came in today

1
463
DEFENSE
Examples of Defensive Stats:
?________________________
?________________________
?________________________
?________________________
?________________________
?________________________

1
Inspiration: The Law of
Attraction
http://www.youtube.com/watch?v=WEqdr_Awdak

People don’t Plan to
1
Fail… They Fail to Plan
465
You must have a goal to win– and
that all starts with a plan. Then
execute that plan with great
enthusiasm.
- Vince Combardie

1
466
You Must Have A Strategic Plan!
“Hope is not a
strategy”

1
467
You Must Have a Plan of Action and Goals
P. Proper
P. Planning
P. Prevents
P. P_ _ _
P. Poor
P. Performance
S. Specific
M. Measurable
A. Attainable
R. Realistic
T. Time Frame

1
468
Your Plan Must Be Clearly
Written Out “If you ink it, you think
it!”
“A short pencil is better than
a long memory”
The Chinese have a proverb: I
remember what I see, I forget
what I hear.

1
469
Balancing
Objectives
“To produce more sales almost
always means to sacrifice
immediate profit. To produce
higher profits almost always
means balancing sales objectives
for long range success!”
-Tom Peters

1
SUCCESSFUL, PRODUCTIVE LEADERSHIP
470
“The successful, productive manager
is more effective and production-driven
than statistics and efficiency-minded,
more concerned with
increased results than with
accountability, methods, systems,
and tracking procedures”
Stephen R. Covey

1
471
Manage by Objectives to
Increase Production
Objective #1: Everything we do must serve production
Objective #2: Separate church and state. Counting
beans and picking beans are not the same.
Production people are not accountants.
Accountants are not production people.
Spa Directors/Personnel = OFFENSE
Franchisees = DEFENSE
Objective #3: People (i.e. staff) sell and retain members.
Put money into training and educating our
staff!

1
472
Spa Yearly Goals
 Yearly goals are set by your Spa Performance Consultant or
your Area Representative
 Items considered when setting goals include
•spa expenses
•Previous year’s performance
•Some market seasonality
•Other variables analyzed by spa consultant
Once goals are set, they are entered into PBFC’s intranet
and can then be downloaded, “requested” via Solarware.com
Once you “request” your goals each month, Spa Directors
must dissect goals and create Monthly, Weekly, and Daily
Action Plans for your spa and team

1
473
Monthly Action
Plans
 Allow Spa Directors to assign a goal to
each Spa Consultant for the entire month.
 Enable Spa Directors to monitor
performance of each team member and
measure results at the middle and end of
each month
 Allow Spa Directors to pinpoint and coach
underperforming team members & develop
processes and development plans to
increase performance

1
474
Questions for Monthly
Meetings
 What 3 things have you seen this
month we could do better?
 What 3 things have you seen this
month that we do well?
 What employee has really stood
out in member service this month
and why?
 How was our member service
this month? How were you
treated?
 What can we do to keep you as a
member in the coming years?
 What’s our biggest weakness in
member service?
 What does our competition have
that you would like to see us add?
 What made you sign up here in
the first place?
 What other products/ services
would you like to see?

1
475
Where Will You Be 24 Months From
Now??
First, you must 100% commit to change
and operate a true Contempo Spa.
Change is Good
You Go First!

1
476
Long Term Planning
The 24 Month Plan

1
477
The 24 Month Plan: Net
EFT
• 2 Memberships/ day @ avg. of $69/month = 60 sales
per month (spm)
• 60 spm x $69 = $4,140/month in EFT Increase x 24
months = $99,360 combined Net EFT at the end of 24
months
• With a 26% attrition rate that reduces the NET EFT to:
$73,527/month
• $73,527/month x 24 mo. = $1,764,648 over 24
months ($882,324 Net EFT/year)
• Assume commissions were paid on total $882,324 @
20%. Total commissions paid out: $174,465. NET
after commissions = $705,859 over a 12 mo. period.

1
478
The 24 Month Plan:
Member #’s
• 60 members/mo. x 24 months = 1440 members
• With a 26% attrition rate, the total member base
is reduced to 1066 members.
*Attrition rate for a 12 month period is approx. 13%

1
479
The 24 Month Plan: Retail
• With 1066 members using the spa, and an
average sale of $25.00/member/mo. = $26,650
• $26,650/mo. in retail x 24 months = $639,600
($319,800/yr)
• At a margin of 30% = $95,940 in profit (margins
must be monitored)

1
480
The 24 Month Plan: Membership
Cash
• Projecting an avg. of $666.00/day in Mem. Cash x
30 days = $20,000/mo.
• $20,000/mo. x 24 months = $480,000
($240,000/yr)
• $20,000 x 15% commission = $17,000/mo. Net
after commissions only
• $408,000 profit/24 mo. ($204,000 profit/12 mo.)
*Based on 2 new members/day at an avg. of $69 ($138 at
POS) = $276 in Mem. Cash (only $390 remaining to
sell/day in Mem. Cash)

1
481
The 24 Month Plan: Summary
Net EFT: $1,764,648
Retail: $639,600
Mem. Cash: $480,000
Total Gross Sales: $2,884,248

1
482
What is a
Budget?
Budgeting is a process which allows you to:
 Measure your business
 Adjust your operations and strategy based upon
results of that measurement
NOTE: Budgeting is only as good as the
assumptions used to create it. You must use
both Historical & Future Information to create
the assumptions to drive your business.

1
483
Reasons to Create a
Budget 1. To reasonably predict cash flow
 To support financial initiatives- banks, investors
 To manage the timing of capital expenditures for
remodel, equipment purchase, or spa expansion
 To manage debt payments
 To manage your salary or profit distribution
2. To measure performance of employees and create
incentives
3. To know where to adjust costs and expenditures
when revenues fall short of expectations
4. To establish and achieve goals

1
484
o An estimate of future events based on realistic
data
o An extension of your business plan & strategy
o An important Reference Point to guide your
business in the right direction

1
485
oProfit
- what’s left over when you subtract Cost of
Goods and Expenses from Sales
oCash Flow
- A schedule reflecting projected cash receipts and
payments for payroll costs and other obligations

1
486
oSales
- Total dollar amount collected for goods and services
provided
oCost of Goods
- the cost of obtaining raw materials and
producing finished goods that are sold
oExpenses
- the cost of doing business from revenue-generating
activities

1
487
Components of a Budget
1. Income Statement- Revenues & Expenses
 Periodic measurement (monthly, quarterly, annually) of
expenses and revenues against plan and prior year allows for
adjustment to pricing, staffing, advertising, etc.
2. Balance Sheet- Assets, Liabilities & Equity
 Measurement at a point in time of liabilities owed and assets
owned
 Helps in making decisions on expansion, borrowing capacity,
and when to make additional investment
3. Cash Flow- Detailing the change in cash position
 Cash is the life blood of the business
 Knowing cash position at any point in the future is predictable
based upon income statement and balance sheet
assumptions.

1
488
Information Needed for Budget
Preparation  Historical revenue information
- EFT trends, cash sales, other income sources
 Historical expense information
- Payroll, occupancy, advertising, spa level,
owner/corporate level, fixed, variable
 Historical balance sheet information
- Current and long-term assets and liabilities and owner’s
equity (from tax return or accountant)
 Internal changes impacting the future
- Personnel, systems, remodel, new product/service,
promotional activity, leasing
 External changes impacting the future
- Governmental regulation, competitive changes

1
489
Budget Revenue
Forecasting
 EFT dues trends
-EFT Add by month- seasonality, % of memberships
that are EFT
- Pricing
- Retention and Attrition rates/ membership count
- Average EFT/Member
- First billing date (lag between sale and first EFT
revenue)
 Cash Membership Revenues
-Seasonality
- Pricing
- Prorated dues/card fees
- Post dated checks
- PIF %, average $, length, etc

1
490
Budget Expense
Forecasting
1. Payroll by position– The number
one expense in the spa
- Management
- Sales
- Front Desk Receptionist
- Spa Attendants
- Maintenance/Janitorial
- Commissions, Bonus, etc.
- Benefits and Taxes
2. Occupancy
- Base Rent- Escalation
points,
expirations, etc,
- Common are maintenance
- Property Taxes
- Insurance
- Janitorial
- Utilities
- Repairs & Maintenance

1
491
Budget Expense
Forecasting
3. Spa Controllable Expenses
- Merchandise and Concessions Cost
- Repairs & Maintenance Equipment
- Small Equipment purchases
- Office Supplies
- Printing and Forms
- Laundry & Linen
- Janitorial Supplies
- Shipping & Mailing
- Telephone/Communications
- Travel
- Over & Short
- Classified Ads
4. Owner/ Corporate Controllable
Expense
- Advertising
- Processing/Billing/Banking
- Personal Property taxes
- Professional Fees (legal, accounting,
tax prep)
- Other (licenses, etc)

1
492
Understanding
EBITDA
Earnings
Before
Interest
Taxes
Depreciation and
Amortization
This is most often the
measurement by investors
and bankers when providing
loans, or valuing a business.
Cash Operating earnings
without giving affect to
financial and tax structure.

1
493
Balance Sheet
Current Assets Information
-Cash
- Accounts Receivable-members,
credit cards,
etc.
- Inventory - retail
- Prepaid Expenses –
insurance, taxes, rent
Long-Term Assets
-Fixed Assets
 Real Estate- Land and
Buildings
Leasehold improvements
 Equipment/Furniture
Accumulated Depreciation
- Other Long term assets
 Deposits
 Notes Receivable
 Goodwill
 Other intangible assets

1
494
Balance Sheet
Information Current Liabilities
- Accounts Payable &
Accrued Expenses
- Current portion of long-term
debt
- Income tax payable
- other current liabilities
Long term Liabilities
-Bank Debt
- Owner & Other debt
- Other long term liabilities
Stockholder’s Equity
-Common Stock
- Additional Paid in Capital
- Retained Earnings/(Deficit)

1
495
What is a Profit & Loss
Statement?
 An owner’s way of illustrating results of the operation of a
business over a period of time
 Designed to illustrate the source of income, what has been
done with it’s income from operations, or where each dollar
of receipts has gone
 Illustrates a sequence of events throughout the period
 By starting with gross income or revenue and showing how
it was used within the business, it will give an accurate
breakdown of day to day operation of the business

1
496
Elements of a Profit & Loss
Statement
Total Cash Revenue
 The total revenue that your spa will have in a given
period resulting from the normal operations of the
business
Total Cash Expense
 The total expenses that your spa will have in a given
period resulting from the normal operations of the
business.

1
497
Total Cash Revenue
Recurring Membership Dues $40,000
Cash Membership Dues $20,000
Total Membership Revenue $60,000
Retail Merchandise $10,000
Concessions _______
Supplements & Nutrition _______
Other _______
Total Merchandise $______
Gross revenue _______
Discounts & Returns (0)
Total Cash Revenue $______

1
498
Cash Revenue
Recurring Membership DueTs erms
-Dues received from your spa’s normal reoccurring dues
during the period
Cash Membership Revenues
-Cash received from your spa’s monthly membership sales
received during the given period
Collections
-Cash received from your spa’s monthly past due money’s
received during the given period
Total Membership Revenue
-The combined totals of recurring membership dues, cash
membership revenues, & collections

1
499
Cash Revenue
Terms
Retail Merchandise
-Cash received from the sale of the retail merchandise in
your spa such as clothing, accessories, etc.
Concessions
-Cash received from the sale of drinks, bars, etc.
Supplements/Nutrition
-Cash received from the sale of nutritional Supplement
sales
Total Merchandise Revenue
-The combined totals Retail merchandise, concessions,
supplements, and other

1
500
Cash Revenue
Terms
Gross Revenue
-The combined total of all revenue categories
Discounts and Refunds
-The amount of cash that was recorded in discounts and
refunds for the given period. This amount is subtracted
from the gross revenues
Total Cash Revenues
-Gross Revenues minus Discounts and Refunds

1
501
Total Cash
Gross Payroll Expenses $_______
Taxes and Benefits $_______
Total Payroll $_______
Merchandise & Concessions Cost $_______
Marketing Expense $_______
Repairs & Maintenance $_______
Janitorial Expense $_______
Office Supplies $_______
Linens & Laundry $_______
Telephones & Communications $_______
Printing & Forms $_______
Insurance $_______
Travel Expense $_______
Utilities $_______
General Administrative Expense $_______
Processing Fee $_______
Total Controllable Expense $_______
Base Rent $_______
CAM $_______
Taxes $_______
Total Occupancy Costs $_______
TOTAL CASH EXPENSES $_______

1
502
Cash Expense
Terms
Gross Payroll
-The total amount of payroll incurred for the period in wages,
salaries, and commissions. This does not include taxes or
benefits
Taxes and Benefits
-The amount of taxes and benefits incurred for the period
Total Payroll
-The combined totals of Gross Payroll & Taxes & Benefits
Merchandise & Concession Costs
- The cost of goods sold in retail merchandise and concession
sales

1
503
Cash Expense
Terms
Marketing Expense
-The cost of all marketing materials for the given period such as
newspaper, radio, mailers, flyers, etc.
Repairs and Maintenance
-The cost of all repairs and maintenance on equipment and
physical plant. This does not include Capital Expenses.
Janitorial Expense
- The total amount of janitorial expense incurred for the given
period. Includes outside janitorial and janitorial supplies
Office Supplies
- The total amount of office equipment purchases for the given
period. Includes paper, pens, folders, etc.

1
504
Cash Expense
Terms
Linens and Laundry
-The total amount of expenses incurred for the given period on
towel and laundry expense
Telephone & Communications
-The total amount of telephone and communications expenses
incurred for the given period. Includes local & long distance
phone charges, internet charges, etc.
Printing and Forms
- The total amount of expense incurred for a given period on
printing and forms. Includes membership agreements,
letterhead, envelopes, etc.

1
505
Cash Expense
Terms Insurance
-The total amount of insurance cost for the given period. Does
not include employee benefit insurance
Travel Expense
-The total amount of travel expense for the owner or
employees for the given period. May include mileage
reimbursement, plane tickets, hotel stay, etc.
Utilities
- The total amount of utility expense for the given period.
Includes water bills, electric bills, etc.
- General & Administrative Expense
- The total amount of expense on “other” items that do not fall
into a defined category

1
506
Cash Expense
Processing Fees Terms
-The total amount of expense on fees associated to bank
charges and external billing fees. May include: credit card fees,
billing fees, etc.
Total Controllable Expenses
-The combined totals of Merchandise & Concession Costs
through Processing Fees
Base Rent
- The total of the base rent paid for your building for the given
period
CAM
- Total amount of Common Area Maintenance paid for the
given period.

1
507
Cash Expense
Terms
Taxes
-The total amount of property taxes paid for the given period
Total Occupancy Costs
-The combined total of Base Rent, CAM, and Taxes for the
given period
Total Cash Expenses
- The combined total of all expenses incurred for the month

1
508
EBITDA
Total Cash Revenue $1,000,000 SPA
Total Cash Expenses $480,000
EBITDA $520,000

1
509
The 5 C’s of
Lending
Capacity= Business Plan
Capital= Infusion of Money
Collateral= Reduces Risk
Conditions= Market
Character= Credit and Personal Background
SEE ATTACHMENT
FOR LEASING
TERMS

1
510
Marketing &
Innovation
Because its purpose is to create a
customer, the business has two
—and only two– functions:
MARKETING and INNOVATION.
Marketing and Innovation
produce results; all the rest are
costs.
- Peter Drucker

1
511
School #3: Advanced
Marketing/Advertising
Promotions & Public Relations & Retention Marketing
DAY 1:
Creating Members Your #1 Focus
Marketing U.S.P. Contempo Spa
Marketing, Advertising, Promoting &
what, how, when, why, & how much
The Four Quadrants
Creative Promotions
Guerilla Marketing
DAY 3:
Building an Annual Marketing Plan &
Budget
Retention Marketing
Rules of Five
Alumni Marketing
Validation Campaign
Parties, Parties, Parties
Fun-Fun-Fun
Day 2:
Launching a Public Relations
Campaign-Everything A to Z
Corporate Marketing Campaign-
Everything A to Z
Retail- Skin Care
Nutrition- Lotion, Marketing,
Advertising & Promotions

1
512
School #4: Advanced Summary on
School #1& 2
DAY 1:
Summary of Advanced Sales Training
Leadership & Operations
DAY 3:
Summary of Advanced Corporate
Retail & Retention Marketing
Budgeting & Financial Planning for
Success, Profit & Growth
Day 2:
Summary of Advanced
Management & Marketing,
Advertising & Public
Relations…Promotions

1
513
Job Descriptions: Suggestions &
Guidelines
Spa Consultant
Job Description & Compensation
Spa Director
Assistant Spa Director
Receptionists
**SEE HANDOUT**

Advanced management & operations

More Related Content

What's hot (20)

Viewers also liked (18)

Similar to Advanced management & operations (20)

More from Maged Elsakka (15)

Recently uploaded (20)

Advanced management & operations