How to get your business in shape for the new financial year
BETTER BUSINESS: The 6-step EOFY Business Health Check
The end of financial year is upon us which means it’s the perfect time to do some business housekeeping so you can not only track where your business is at, but also identify the areas where it could be doing better. Here’s 6 tips to get you started.
Step 1. Analyse
Don’t put it off any longer—step away from the facials and set aside time to sit down and excavate the many layers of your business. It’s not as fun, we know, but your business will be better off in the long run. Instead of just looking at revenue, it’s a good idea to look at the larger picture, which is what we call key growth indicators. Areas to analyse include:
- New customers per month — And where are they coming from? Analyse which of your advertising streams (i.e. social media or magazine adverts) are generating you the most success.
- Returning customers — How many people are coming back? Look at ways you can raise this percentage like sending a ‘We miss you!’ offer, or offering new customers an attractive special if they book with you again.
- Loyal customers — What about your loyal customers who do keep coming back? Perhaps it’s time to look at putting together a Loyalty Program to reward your long-term customers.
- Upselling — Have you got an upselling plan in place that is followed diligently by all staff? Every booking is an opportunity to upgrade treatments or upsell retail items.
- Productivity — Calculate the hours in which your staff are busy treating customers, then revise schedules to reach the productivity level that works for your business.
Step 2. Aspire
Where do you want your business to be by the end of 2017? Don’t be afraid to think big, and be sure to write it down. A study by the Dominican University revealed that those who write down their goals were more likely to achieve them, when compared to those who just thought about their goals.
Step 3. Move
Is your business constantly moving and evolving with the times? The beauty industry is fast-paced and competitive, so it’s very easy to get left behind. Technology is now the norm in the treatment room—so have a look at which options will best suit your budget and clientele and go from there.
Investing in a LED device, for example, can cost your business as little as $55 per week, yet you could easily be charging $89-$139 for a single treatment. LED is an incredibly value-added technology as it not only delivers fantastic stand-alone facials, but it also functions as a beautiful add-on treatment or upgrade to skincare facials to enhance the final results.
Step 4. Plan
How’s your marketing strategies coming along? If you don’t have a marketing plan in place by now, it’s time to knuckle down! All of our device owners have access to our Marketing Success Guide, which is a must-read, as well as loads of online marketing resources designed to help you get the most out of your business. If you have any questions regarding our free marketing support, just give us a call!
Step 5. Educate
Even if you’re running a highly successful salon, education and upskilling should never cease—rather, it should be an ongoing part of your journey as you continue to grow and flourish as a beauty specialist.
Step 6. Reach out
Running a salon, spa or clinic isn’t a walk in the park—so be proud of your achievements so far, but also don’t be afraid to reach out for support. Find successful people in the industry who can mentor and advise you, or look into the benefits of business coaching.
Caroline Nelson, for example, is a renowned business coach who specialises in salon and spa business management. She has helped countless beauty businesses to increase their profits, build their client base and achieve successful outcomes while maintaining a healthy and happy work/life balance. You can find out more about Caroline here, or catch her on our upcoming business building webcasts.