It’s time to start thinking about Christmas and the holiday season. I know we’re only in August, but it’s necessary to review your business and analyze how seasonal it is.
All businesses have a period when they make more money then at any other time of year. As a business owner, you have to take a step back and see the trees through the forest. It’s the only way you can take a true stock of your situation and make necessary changes to feel an impact on your life. You have to be able to see the things that are affecting your business and your life.
Think about it; are you running your business or is your business running you? Find a quiet hour or so, and don’t tell me you can’t! My website statistics tell me that my business is visited the most between the hours of 9 pm and 11 pm at night, and while I am always grateful that people take the time to visit the website looking for products and information, it’s quite clear that this happens at the very end of the day when salon owners and techs find an hour to themselves. So, if you can find an hour to surf on the Internet, you can find an hour to think about your business. I am a great believer in numbers and statistics. For instance, I know my company’s most profitable lines and the ones, which if sales increase, bring me the most return for the effort put in. I also know the least profitable lines that, even if sales increase by 100%, will not make me much more money.
I also know the lines that are complicated for my production staff to manufacture and the ones that are created more easily. I take time to look at all aspects of my business to maximize the return that I get on my product and service offering. I also look at how I can streamline the business to make life easier for the team. I closely watch any new business we pitch for to ensure we’re able to close a deal that adds value to the company, not just work. So I’m suggesting you sit for an hour and look at your business. Are you fully booked and have no spare time for new customers? If so, does this mean you need to recruit more staff or increase your prices?
If you’re fully booked, what are the most profitable treatments? Which ones do you need to do more of to maximize the time you have? You know which treatments make you the most money and surely these are the ones that you need to do more of. If you have treatments that don’t make you as much, but fill your books, what can you do to make money from that treatment? Do you want to expand your business? Will this involve more staff or space? If you have the space, then, just like a restaurant, you want to make sure you have as many tables placed as you can. If you’re fully booked then what else can you sell that doesn’t require much staff time? What about retail items? I know many salons that sell products for home use that report well over 30% of their income comes from retail. There are silent sales people i.e. displays that do the work for you. Again, if you’re thinking about keeping your work life easier, what better way is there, than increasing revenue by 30% without taking on the extra responsibility of a new member of staff.
I mentioned Christmas, which is fast approaching, I also said you need to look at how you can really maximize your busy season. Christmas gift packs are a great way to increase sales, but you must plan it now, get them in the shop, tell your customers and if you’re mobile, show your customers well before Christmas. Don’t wait until November before you start thinking about how you can make more money at Christmas. Act now and plan ahead. Also look at areas of cost in your business, you can always, I repeat always, get your costs down. The name of the game is costs down, profitable revenue up, do less of the things that make you less money, more of the things that make you more money, add income streams that don’t take up time. Don’t stop marketing whether you are busy or not.
And back to numbers, keep score, set targets and give yourself, your staff and your business marks out of 10. Rank your treatments in terms of profit and popularity. Rank your customers – know your top 20%. Look at the cost of the products you use, there are many great products out there at very reasonable prices. Take that hour and think about where you are with your business and where you want to be and realistically plan how to get what you want.
I’m giving a seminar at the London Olympia Beauty show 19-20 September 2010, so come see and speak to me. I am always willing to help and give advice.
