Business decision making for a more profitable salon

Many salon owners and managers find themselves becoming disappointed and discouraged at their apparent inability to control and prevent the cyclical ups and downs of their business efforts, says business expert David Drew. They start to experience ANTS, Annoying Negative Thoughts. The fantastic dream they once had quickly disintegrates into a heavy burden and a stressful slog. They no longer own the business-the business owns them! The salon business should be efficient, profitable and able to operate without you, the owner being there. If it doesn’t, perhaps you don’t have a business, but instead, just a job and a business that runs you and determines your life for you! By implementing and putting systems and procedures in place to help your business out-manoeuvre, out-perform and out-market the competition making the best use of the business KPIs and the four MSSC foundations within the business - Management, Staff, Service, Customers - simply means getting the business to run where the owner/manager is able to work “on” the business, and not just “in” the business! Running a successful salon requires good business decision making, which is based on sound information such as management accounts, i.e. profit and loss data, balance sheet data, and cash-flow forecasts. Last month’s and last year’s figures can be used to show hard facts and established patterns, but figures must be produced regularly and consistently to be able to compare them on an on-going basis. These figures/analysis establish the business “Key Performance Indicators (KPI’s). These indicators become the drivers of the business and can be used to powerful effect as tools helping identify potential problems and opportunities early on. Some of the key areas to consider include: Finance Often businesses need an injection of finance to grow, for example to expand or refurbish, purchase new equipment. Carefully look for specific unique innovative cost effective specialist finance solutions that will aim to approve applications fast in less than two weeks! Client retention It is estimated it costs six times more to win new customers than sell more to your current customers! Using proven techniques it’s possible to energise your team helping hairstylists find new ways to provide extraordinary customer service improve their performance so they can reduce their stress levels, but improve their profit! Happy customers Will drive any business many salons realise the importance of excellent customer service and know it can give an edge over their competition, but they don’t understand or identify specifically what it is, or how to go about providing it! Extraordinary customer service is in essence doing whatever it takes to immediately satisfy the customer. To consistently provide exceptional customer service “the business must train the team to provide it consistently! Team motivation In order to do that and keep the team’s enthusiasm high, I believe the salon business should introduce a new training program twice a year. A salon business that consistently trains its employees, is sending the clear message out that the salon values them. When the salon gives the team the knowledge and tools they need to do their jobs well, it increases their loyalty to the salon & creates a productive team that works well together. When employees are confident in their skills they feel empowered and become motivated. Motivated employees are productive employees and productive employees have a positive impact on profits.   David Drew has some 40 years hairdressing industry experience. David coaches and consults salon owners on how to successfully run a salon and provides business success seminars and motivation days for teams at salons across the UK, for more information about David and the services he provides visit www.impactbusinessconsultant.co.uk