Salon Business Guide Planning Make a Plan for the NEW YEAR
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planning Create the success you envision by planning. client growth retention Learn how to increase A retention strategy is the most your average ticket and cost effective way to sustain client visits. your business. retail referral Salon take-home How to implement a recommendations can referral program and increase be the most profitable referrals for your salon. revenue generator. salon business guide planning Make a plan for the NEW YEAR e want to help you prepare and create the success you envision for the new year W and to avoid the chaos that non-planning can create. Now is the time to prepare for the new year to create your best possible results. Creating a plan completing the detailed If we continue to do analysis of your current business and creating written documents of the plans that will be the same things we have implemented in the coming year. always done, than we will As we wind up our year and look forward to a new start, I can’t help asking the question, continue to get what we “will 2017 be more profitable than 2016?” have always gotten. What are you going to do different in your business? Here are three simple but very effective strategies to use to help create growth in your business. I will admit, each does take some effort and investment of your time, but the return on your investment is huge. 1. 2. 3. know your let’s be be clients real accountable Believe it or not, most professionals still Making your goal to increase your business by This means you have to be don’t buy into the numbers game. It is 50% next year may be setting yourself up for responsible for what occurs in your the first step of growth, knowing where failure, but designing a plan for 20% growth business and get help. your business is at, how many clients is realistic. Increasing your numbers by 20% you serve, how many clients purchase moremay not be as exciting as 50%; however Are you someone who it makes retail, who returns, who does not and it could be the difference between a business dollars and sense to do business with? how many new clients you meet each owner just breaking even or making a profit. month. Those are just some of the facts Most salon and spa owners focus too much on Are you providing an environment that we need to be aware of. Then there not losing money or breaking even, but your that grows people and ideas, or are are fixed expenses that you have each sole purpose in your business should be to make you just another salon/spa? month which equates to the cost of doing money. business. These could be your rent or We just shared a plan for increasing mortgage, supplies, electric, insurance, If you don’t think that a 20% increase is worth your business by 120% over 5 years, so salaries and other expenses. In other it, try this exercise. ask yourself what your life/business words, know what comes in and what would look like if this happened to goes out. Year 1 $40,000 + 20% growth + $48,000 you. Setting goals, designing a plan. Year 2 $48,000 + 20% growth + $57,600 Provided by Milady Year 3 $57,600 + 20% growth + $69,120 A part of Cengage Learning. Year 4 $69,120 + 20% growth + $82,944 www.milady.cengage.com to make it Year 5 $82,944 + 20% growth + $99,532.80 happen and providing the support to sustain the growth is what business Increase $59,532.80 over 5 years consulting and coaching is all about. because of a plan! Have you reviewed goals with each of your Example: stylists to know where they would like to be in 2017? Here is a quick worksheet to get you 40,000 started and to help determine how much they 80,000 need to take in per client to reach their goal salary. During these reviews, it is also good to 50 ask your stylists where they would like to be in the next three to five years so you can help 1,600 them get there. 5 Worksheet available! Ask your CosmoProf® Salon Consultant 320.00 to download it from our BOX. 10 32.00 create your management objectives & salon budgets & ANNUAL TEAM PROJECTIONS VISION GOALS HELP EACH OF YOUR SALON DETERMINE YOUR BUDGETS AND LONG-TERM OBJECTIVES SET YOUR GOALS SO YOU TEAM MEMBERS GROW PROJECTIONS BASED ON THE PLAN CAN ACHIEVE THEM PAST 6 MONTHS your plan should include: • Long-term objectives • Budgets and projections based on the past six months • Work with your team members to help each of them grow both personally and professionally • Re-align your personal goals and objectives based on changes you desire • Create an annual plan based on the above findings. If this is a process that you are familiar and comfortable with you are very lucky. Many business owners struggle every year with reviewing the current status of their business and establishing plans for future business growth. 2017 promotional planning ideas Let us help you with your planning needs. To start some of your planning, we have included some planning ideas for 2017. We will provide you with more promotional ideas throughout the 2017 issues of BeautySpan. JANUARY/FEBRUARY MAY/JUNE SEPTEMBER/OCTOBER • Liter Sale • New CosmoProf® Campaign • Give Back • Winter Survival for Hair and Skin • Weddings and Proms • New York Fall Fashion Release • New Year—New You • Mother’s Day • Halloween • Valentine's Day • Father’s Day NOVEMBER/DECEMBER MARCH/APRIL JULY/AUGUST • Holiday • Hairspray Sale • Back to School • New York Spring Fashion Release • Liter Sale • BOGO Sale • Summer Survival for Hair and Skin client retention CLIENT RETENTION the easiest way to grow your client list is not to lose them he average business loses around easiest ways to fill your calendar and will no problem. This makes everyone feel T20% of its customers annually lead to some of your best and most loyal worthwhile and important. It also motivates simply by failing to attend to their customers. everyone to provide extraordinary service. customer. This results in more trusting relationships 4. FREQUENT COMMUNICATIONS: with your clients and your staff. PUT IT ON YOUR CALENDAR Imagine two businesses: Avoid losing your customers by building 7. PRODUCT OR SERVICE INTEGRITY • One retains 90% of its customers relationships and keeping in touch with Long-term success and client retention • The other retains 80% of its customers them through frequent communications. belongs to those who do not take ethical This could be a sequence of touch points to shortcuts. There must always be total If both add new customers at the rate of thank them, celebrate their birthday, special consistency between what you say and do 20% per year, the first will have a 10% net offers, notes with a personal touch etc. and what your client’s experience. Service growth in customers per year, while the People not only respond to this positively, integrity is demonstrated by the way you other will have none. Over seven years, but they really appreciate it because they handle the small things as well as the big the first firm will virtually double, while the feel valued and important. It makes them things and take a genuine interest in them. second will have no real growth. Everything feel part of your business so that they want else being equal, that 10% advantage in to come back again. 8. THE CLIENT VALUE customer retention will result in a doubling A loyal client means a lot to your business of customers every seven years without and how long you retain them. It is doing anything else. important that your client is in to see you on a consistent basis along with taking 1. REDUCE LOST CUSTOMERS home products to maintain your service Every business loses some customers, but in between visits. It is critical that you take few ever measure or recognize how many good care of your customers and spend the of their customers become inactive. We time, effort and expense in keeping them invest time in building the initial relations There’s a big difference coming back. and then let it go unattended. It costs us between a satisfied customer more to find a new customer than to retain and a loyal customer. Never 9. A COMPLAINT IS A GIFT the customers that we have. settle for “satisfied.” 96% of dissatisfied customers don’t complain. They just walk away, and you’ll 2. RECOMMEND PRODUCT AND THEN - Shep Hyken never know why. That’s because they often RECOMMEND PRODUCT ON THE NEXT don’t know how to complain, or don’t VISIT TOO believe it’ll make any difference. While they Your connection starts with the first may not tell you what is wrong – they will purchase. Make sure to ask your client how certainly tell many other people. Therefore, they liked the product experience the next it is important to know why your customers time they are in. What they liked and/or are unhappy or did not return. It gives you what they did not like. This will open the the opportunity to satisfy them and delight door to talk about other products that 5. EXTRAORDINARY CUSTOMER SERVICE The never-ending pursuit of excellence to them to return. could be used in conjunction with their keep customers so satisfied that they tell purchase to enhance their style. others how well they were treated when Like pieces of a puzzle … doing business with you.