Improving your salon suite business: Setting goals for the new year
I’m assuming you all have set business goals for your salon suites this year. If you have not, you definitely want to continue reading.
According to an old English proverb, “You don’t know where you’re going until you know where you’ve been.” We are already into the second week of the new year but it is not too late to start making simple but effective changes.
So before you make those new goals, do you know how much money you made last year? Do you know how much you spent? Do you know what services brought in the most money?
Below is a list of numbers that you. Need to keep track of.
1) Gross Income
According to Modern Salon magazine, your income is the single most important measurement of a business’s success. Your gross income tells you how much you made all year but It doesn’t stop at knowing how much you have made. It’s important to assess this data to know where your money is coming from. How much did you get from
How much did you spend this year? and on what? This is another number to be mindful of. The more money you spend, the less you will be able to take home. We can’t escape paying rent, buying product and supplies, phone bill and other necessities but it is easy to get carried away with inessential purchases. Sometimes spending more is necessary (for a long-term investment, product package, initial investment, etc) but it’s important to be mindful of how beneficial the purchase is.
3) New clients
- How many did I get?
- How did I get them?
- Did they stay?
- How can I get more?
4) Client retention
How many do I have?
What keeps them coming back? It takes 6x more effort to acquire a client than it does to keep them. According to Bain and Company, increasing customer retention by 5% can lead to an increase in profits of 25% – 95% and the likelihood of converting an existing customer into a repeat customer is 60% – 70%, while the probability of converting a new lead is 5% – 20%, at best.