Analyse Your Business Numbers for Greater Profitability
Numbers don’t lie, and looking at them will allow you to take an unbiased look at how your business is doing – including how much you’re spending, and how much revenue is coming in. Then you can take it a step further by finding out where your business is working best, and what areas need attention – for example, revenue by service, revenue by stylist, and whether you are making the most of your busy days. Having salon computer software will help you achieve this but even if you don’t have software you must still keep an accurate record of all your income, turnover and services.
Other statistics that can help you include:
What are your busiest days of the week?
Do you have enough staff and space to cope on these days? Are they too busy and would it benefit you to ask some clients to come on quieter days, if you gave them an incentive such as a free blow dry or a 10% discount?
What are your bestselling products?
Do you have consistent bestsellers? Are there products that are simply not selling and if so why – is it a lack of demand for those products, is it pricing, are they not being promoted?
Who are your top performing stylists?
Who are the biggest assets to your business in terms of turnover and repeat business? And who is lagging behind and why... do they need help, training, mentoring? Do you follow up to ensure clients are happy?
All these questions can help you plan the right changes, that can grow your business to greater success and profitability.