Business Health Check Up: Correct Costly Errors Quickly
It’s check-up time! When we have physical symptoms that signal something isn’t quite right, we head over to the doctor for a checkup. Symptoms are the outward appearance of an underlying health issue. Usually, once we determine the issue, we work to correct it. Our businesses also suffer from symptoms that can determine a health issue within. Here are some symptoms for you to consider:
Low or no profitability
• Lack of new clients
• Low retention
• Employees leaving
• Low service sales
• Low retail sales
• Low staff morale
• No personal motivation
Each of these symptoms is an indication of a basic fundamental problem in how you’re managing your business. The good news is that, like our physical health, once we determine the cause of the symptoms, we can address and correct the problem!
As business people, we often get caught up in the day-to-day operations and symptoms creep up on us, and the next thing you know your business has a cold! However, we can use our symptoms as a form of analysis to keep us on point. Here’s a few ways for you to know that symptoms of a bigger underlying issue might be rearing their ugly head!
If you are a single operator, you can assess how many active clients you actually have by seeing how many clients you have booked over the next eight weeks. Count them up! We know you need about 250-300 active clients to maintain a decent income if you are a full-time service provider. If you only have 50 clients booked over the next eight weeks, you either suck at re-booking or you are not retaining the first-timers who sit in your chair. Doctor time! Determine your symptom and write yourself a prescription for a more successful outcome.
Employee and Product & Service Reviews
If you are a salon owner with a staff, the appointment calendar is still one of the best tools to assess your health. It will tell you which staff members are busy, which ones are retaining or re-booking, which ones are absent, who is most productive, who is most efficient, etc.
Your next best tool is the average ticket price. Simply divide your total revenues by the number of client visits and it will tell you what the average client is spending in your business. You can also break it down by service revenues and retail revenues to get a clearer look. Repeat this exercise with each service provider to see where or who your revenue producers are, and compare with salon averages.
Doctor time! You have found some symptoms that need to be corrected, it is time to take action. Your prescriptive actions may include:
• Staff changes
• Letting go of out-dated products or services
• Improving education
• Attitude adjustments
The important thing here is to react to symptoms. Make the changes necessary to create a healthy business. Guess what – if your business is healthy, I bet you will also be healthy and happier too!
Vagaro is a cloud-based scheduling software commonly used by beauty, fitness, and wellness businesses to manage booking, credit card payments and processing, marketing, payroll, inventory management, reporting, and much more.