Thought Process: “Where am I right now in my career?”
To know what you want to your future to be, how to get there, and especially when you’ve arrived, you must know your starting point.
There’s really no getting around it; running a business involves some simple math. Without knowing your numbers it’s easy to make poor decisions and eventually go belly up. And nobody wants that! Dig out your calculator, and get ready to take charge of your future.
You’ve already identified your strengths; now let’s look at your client base and income...
Answer these practical questions:
- The number of clients I see in a typical week is:
- The number of clients who I can count on to come in regularly is:
- The number of new clients I see in a week is:
- In a typical week, I earn revenues of:
To follow your trends, you'll need to do these calculations...
Calculate revenue per client:
Take your last week’s revenue and divide it by the number of clients you served. Each week, update this number so you can see how the number changes. What do your monthly totals look like? Then you can ask, over time, are revenues per client trending up or down?
This number gives you the chance to see what is driving the change. Is the number of clients you are serving going rising or falling? Are they spending more or less per visit?
Separate income from products and services.
If you can separate income from product sales and income from services, you will get a better look at what is driving your weekly revenues.
- Weekly revenues from services: Weekly revenues from product sales:
- Net income from product sales (revenue – cost):
- Retail product sales accounts for this percent of my income:
For many salon owners and booth renters, these are not easy questions to answer. Beauty professionals who “know their numbers” have a big advantage over those who don’t. Why? Because you can set goals and see what actions improve your income. You’ll have a better sense of how much to spend on marketing to get a new customer.
And you’ll have fewer surprises.
If you've made progress with putting your numbers on paper, good for you; this will give you a starting point to look at where you want to take your professional career in the future.
If this part stumps you, don't worry - there are a lot more Suite Success Secrets coming that involves your creativity, not your calculator!
Have a Suite Day!