Monte's Blog

Recently, my client came to me when he discovered that the person he had in-house managing his business was stealing from him. Beyond the emotions of betrayal and violation of trust, he now found himself in trouble financially. He learned that this manager had not only embezzled funds, she had obligated the business to a very expensive marketing campaign, and uncontrolled spending for who knows what else. Staff morale was at an all-time low and they were leaving and filing labor grievances. As you can imagine, sales were plummeting. This unscrupulous manager and her decisions had pushed this business to a breaking point and to the precipice of financial failure.

As business owners, we all want to believe that we have hired the right people. Sometimes, we make this decision too hastily. Other times, we linger and think about it for a long time and the decision is never made, caused by “paralysis by analysis.” In both cases, the business decision making is faulty or crippled. None of us has a crystal ball or can foretell the future.

So, in my client’s situation, what could have been done to avoid this situation? And now that we are deeply in it, what happens next? What are our options? ...

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Getting financing for your business is not an easy task and often requires understanding as much about the banker/investor as it does about the process of presenting yourself in the best possible financial light. Funding your business takes more than a great vision for success. It takes a clear and comprehensive financial plan. The more organized your plan is, the better your chance of getting financing.

Understand your financial condition and be able to show it to your lender

Money is loaned and funding is priced in terms of risk. The higher the risk, the higher the interest rate. The lender wants to be re-paid and needs to be shown how the money will be paid back to them. A lender looks for;

  1. Positive and growing sales trend with realistic projections.
  2. Net Profit which is adequate to re-pay the loan. Sales (product and services only) minus Direct Costs minus Overhead Expenses equals Net Profit.
  3. Positive equity on your Balance Sheet. Assets minus Liabilities equals Equity.
  4. Collateral (something to secure the loan that can be liquidated) in case of default on the loan such as equipment, real estate or accounts receivable. The higher the risk, the more liquid the collateral must be. For high risk loans, accounts receivable is more desirable as collateral than undeveloped land. The lender can liquidate these and get their money back faster than more long-term assets such as real estate. This varies from market to market.
  5. A personal guaranty of the borrower as secondary collateral.
  6. Solid credit and business history with no objectionable items (such as defaults on previous loans or bankruptcies).
  7. Borrowers who know how much money they need, how they will use it and how it will be paid back. Remember: debt gets repaid out of Net Income, not as a percentage of Gross Revenue.
  8. Opportunities to fund growth, not business losses.

If all the above meet the lender’s criteria, you should be considered a relatively safe risk and could qualify...

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There is an old adage “Don't Ask, Don't Get”. If you want something to occur put some focus on it! For the life of me, I can never figure out why many business owners don't apply this to their business. The change of season from summer to fall and now to winter is upon us. Most of our business year 2016 is behind us. How was it? Did your business meet, disappoint, or exceed your expectations? Before the beginning of 2016, did you define what you expected? If not, what were you measuring your performance against? Now is a great time to plan for your best year ever!

It's time to stop, get quiet, and breathe. Sit down with your laptop with or a blank piece of paper and let your brain drain. Don't stop or edit your work. List 100...

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Is Your Business Ready For 2017?

By Wellness Capital Management

No Budget? No Roadmap.
• Moving forward without a budget is like flying blind.
• You will not have the direction, tools and strategies you need to make decisions or measure your success.
• You need a picture of where you plan to be.

temp-post-imageIn a short period of time, we evaluate your business, assess financials, build a budget with you, and provide a clear and practical plan of action to improve your profitability. We are quickly able to assess where your business is, what opportunities exist, and what steps you need to take to move forward.

Monte Zwang has been a business, operational, and financial consultant for over 30 years; teaching business owners the strategies of cash flow management. He specializes in financial management of day spas, fitness centers, salons, med spas, wellness facilities and medical practices.

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We are excited to announce our free POWER 10 webinar on Monday, March 28th at 1pm ET, 12pm CT, 11am MT, 10am PT. Click here to register for this FREE webinar.

In this POWER 10 webinar, we will be covering 3 categories, each 10 minutes in length on the following topics:
1) How your open appointments impact retail sales.
2) How to make your services more profitable.
3) The importance of filling your last minute appointments that will be going lost.

Click here to sign up for this FREE webinar.

Background on the Presenters:

Patti Biro is the founder of Patti Biro & Associates a boutique consulting firm that focuses on innovative marketing and retail consulting for the spa and wellness industry.

Monte Zwang of Wellness Capital Management is a fi...

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Why Physicians Should Acquire Day Spas

By Wellness Capital Management

Most physicians I speak with who are seeking to enhance their practice are looking for opportunities for growth. Let’s face it, physicians know everything. They are exceptional marketers, great business people, and create a phenomenal culture within their practice. Just kidding. Usually, they are good at some of this and lacking in others. If a doctor is willing to be open and creative, an opportunity exists that will allow them to grow their practice, provide cash paid services, and reduce their business risk.

In the ongoing blending of Day Spa and Medical Spas, and Allopathic and Complementary Medical services, the rules are changing, Not only are they changing, they vary greatly from state to state. The ability for Day Spas to a...

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This is a repost of a previous blog. Still relevant . . . .
It seems that every week we are contacted by spa operators who want to transition their business to include wellness or medical spa services. It is not as simple as hiring an acupuncturist or finding a doctor and hiring them as your medical director.The questions are: 1) “Can I do it?” and 2) “How?” The answers will depend on the state you are located in. The information you need may be difficult to find and contradictory depending on who you ask. There is research to be done before you hang additional shingles outside your business.


Start with your own license and make your first point of research your state board of...

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SELLER SAYS: “It’s time to sell. I’ve got an established location and great clientele. I want to move on with my life.”

BUYER SAYS: “I want to buy a business. Can you find me a turnkey situation in great location with limited local competition and a motivated seller?
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Happy Holidays to all! Wow 2013! Can you believe it? As the year draws to a close, we have a chance to reflect on all that has occurred in the past year, be grateful and appreciative and to look forward both personally and business-wise. I always take a look at what happened last year, things I know are occurring now and outline where I want to go. Some things impacted me last year; others are coming down the pike that I need to be aware of. There are issues and events that affect how we want to do business and manage our lives in the upcoming year.


I think we can all breathe a sigh of relief that the presidential election is behind us. A year of politics put us in a wait-and-see mentality.

What we’re hearing is that ...

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