Expert Advice: How to grow your business - Turnover & Targets
Marsha Abrahams offers her expert knowledge on how to increase turnover in your beauty or hair business.
Over the next few months we will be looking at how to grow your business by helping you increase retail sales, host a salon event, market your business through social media and decide a salon promotion to name but a few but the thing we need to do first is know where we are going.
First we must set ourselves targets to achieve. We have half of the year left so let's get out and try to achieve the best we can.
There are several ways to set targets (some people prefer to call them Goals) but I'm going to go through a simple way for you to set these and see your success.
Increase turnover to meet your targets
We will start with Turnover. Do you know what your turnover was before Covid (2019)? The first year of Covid (2020) or even just last year (2021). This is the best place to start. Your target is an easy one – achieve the same as last year. Do this and give yourself a nice reward; a bottle of wine or something similar.
But we shouldn't stop there, now we can grade our target. How much do you want to push yourself? For each new level we set we can increase the reward – 10% growth = a lovely meal out, 20% = a weekend away. You can go big with a 50% growth and reward yourself with a nice piece of jewellery/a new TV or even a new car? Think about the big picture.
Set these levels where you are pushing yourself. There is no point in setting a target to grow your business by 50% for a new car if a 50% growth will only cover the cost of a hotel for a night.
Which treatments are the most lucrative?
Once you have your targets you need to break them down into smaller amounts. How much do you need to do each month, break that down to each week, each week by each day then break that down by the hour. Once you have this figure it is easy for you to see how much you need to do to reach your targets. Do you need to increase your retail sales to generate this revenue? Do you just need to increase your treatment prices? Do you need to look at what treatments you are offering? Which ones generate the most revenue per hour?
I have worked with salon owners that, once they had broken this down, had seen that some treatments were actually costing them money to do and removed the option from new customers being able to book in for them. Have a look at the cost per treatment. I know this won't help with revenue but it will help to make your business profitable and that is all that anyone wants in the end.
If you can start with this, you are on the right track to finishing off 2022 with a flurry and being in the best position for 2023.
- Set your target
- Break it down to how much you need to generate per hour to achieve it
- Work out how much your treatments generate per hour
- Find out the cost per treatment
- Reward yourself (even for just doing the four points above. It's a massive start to being able to Boost your Business)
Marsha Abrahams is Managing Director of Boost Beauty Solutions Ltd, Irish distributor of Juliette Armand, Grande Cosmetics and Korean skincare Storyderm.
Boost Beauty Solutions
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