Reasons why wellness & SPA company fails

A Research done by The SBA Online Women’s Business Center found several reasons being the main cause.

Failure to anticipate or react to competition, technology or other changes in the marketplace is one of that main cause.

When i was doing a research for this industry, i asked SPA or Hair Salon owners this question: "How do you think your customers will engage you in 5 years time". The answer, some are not prepared and some said Facebook. So i asked, what if 30 customers are trying to engage you in facebook? how would you coordinate, schedule the therapist, are you available past midnight to take in orders? etc. Clearly there weren't any thought process given. Imagine trying to cater to a young, trendy crowd in a community like Singapore where the population is aging. It won’t be long before you find yourself in trouble.


Jothi's Trational SPA - a case study

Madam Banu is one of those entrepreneurs that knows exactly where and how her company is heading the next five years. She engaged us identifying this concern and asked us how we can help address this. Her technical arsenal now consists of an outdated POS system, a website and a facebook FAN page. So we started the ball rolling by the "probe" process. We first asked general questions like the age of the company, their client's profile, their target market segment, their business model and plan, turnover rate and budgeting. That is, whether, they put aside a budget for technology.


The Problem Questions

After we had sketch out the overview of the organisation, we asked them, "besides rental, (Because we cannot solve rental problem :)) what are the difficulties you are facing now and anticipate in the coming months?" For some other clients, we get the employees to join the session. I love it when the employees join in because, you get to see the problems in different perspective. Anyway after getting all inputs, we plot a pareto chart and focused on the top 20%. (Image is just a sample)

Strive Pareto


The Results

  1. Sales has always been the top on the list.
  2. Manpower is another one, meaning hiring and training employees (This is often tied to HR and retention strategies companies have in placed)
  3. Business Process Management like invoicing, payroll and training comes next


The Solution

Sales comes hand in hand with marketing. Based on the demographic and client profiling, we recommend both online and offline marketing. Most of their over 50 year old client's may not likely to engage them via Facebook or web. Again we are looking at the future here. We decide to propose an automated booking system that allows a user to browse for a list of services via the website. Since this application is device friendly, they can use thier tablet or mobile to view. In summary, there are 7 applications done in 5 phases which we felt will enhance their business. These applications are modular and integrable

  1. Service and Package Booking System
  2. E-commerce Webshop for their Products
  3. A cloud POS system that will be integrated with both their booking system and webshop
  4. Employee Training Portal that will be house their training videos and materials
  5. A Human Resource and Payroll system for their employees
  6. An E-mail Marketing System integrated with their Customer database
  7. A Hybrid mobile Apps that will be integrated with their service booking and products


We can help you grow your company to the next decade. Call us to discuss more :) 84822271