Updated: Feb 12, 2019
If you were to continue down the path you are on today and change absolutely nothing about your business tactics, strategies, or systems where would your business be a year from now?
Would you still be struggling with un-motivated staff, unsuccessful marketing and promotions, minimal retail sales, and an empty bank account?
Have you found yourself saying "something's got to change"? If so, have you thought about when this change needs to happen by? How long have you been looking for solutions to your business challenges? Change doesn't happen over night.
What is your biggest challenge?
Cash flow? Would you agree that if we took care of this many of your other challenges would disappear?
Staff motivation? Would you agree that if we took care of this your cash flow would increase and your bottom line would grow?
Leadership? Would you agree that with improved leadership skills you would have the tools to mentor, guide, and creatively motivate your team?
What is stopping you from getting started?
Here's a few tips for making change happen:
Embrace- change is a challenge but with it comes increased awareness and growth
Get out of your comfort zone- do things differently
Create your list of intentions- your 'to do' list
Start with baby steps- tackle your smallest projects first
Give yourself the gift of education- attend business building/ leadership workshops and seminars
Ask for help- delegate tasks that are not your forte, seek coaching
The first thing you need to change is your mindset, because if your business is not in a good place, what you have been doing is not working. You can not be opposed to suggestions or trying new ideas.
It's time to stop procrastinating, face your fears, shape up that business, and get rid of all of your worries.
If you need to change something about your business, ask yourself these questions which will help you to evaluate where you may need to start!
1. Do you have a system for inventory control?
If you answered no to this question, you must have thousands of dollars of inventory collecting dust on your shelves. You are probably spending more on buying retail products than you should be. You should not be spending more than 50% of your total retail sales buying products for retail.
2. Do you know how much money you should be spending monthly buying back bar products in relation to your service sales?
If you are not controlling your back bar spending you better think about raising your prices NOW, especially your chemical service prices. You should not be spending more than 6-9% (in Canada this may be slightly higher) of your service sales on buying back bar products. These products include colour, peroxide, foils, cotton, perm and relaxing solutions, massage oils, hair/spa products for your staff to use on your guests, etc.
3. Does your salon have a budget?
If you answered no to this question, you can not possibly set service and retail goals for your team because you don't know how much money the business needs to make! You can't plan your marketing because you don't know how much you are able to allocate to advertising and promotions. You can't hire new staff because you honestly don't know if (and what) you can afford to pay them.
To put it simply: If you don't know how much money the business needs to bring in each month to cover your expenses or how much money should be spent in relation to how much is coming in...your business will never ever ever make a profit.
Maybe you have systems for inventory control and a budget, but you don't have
enough clients? Then you need to implement systems to get new clients to walk through your doors.
Maybe you have enough clients but not enough staff? Then you need to look at your compensation package, culture and how you will stand out from other places of employment to attract your dream team.
In any way, business growth is always initiated by change- changing your attitude, changing the way in whcih you look at your business (becoming more business focussed), changing systems, changing your approach. Needing to make changes is inevitable. Not implementing changes may be fatal.