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Making Salon/Spa Revenue Goals the Goal of Everyone

Salon/spa service providers easily relate to their individual weekly and monthly goals. They do the work. They watch their numbers. Some push hard to meet and exceed their goals. Others aren't so numbers driven and don't push so hard.

In business, there is only one score that supersedes all others ... did the salon/spa hit its revenue goal? It may be great that some individuals hit their personal goal, but if the salon/spa ... the company ... comes up short of its revenue goal, there are real consequences.

  • Because revenue goals represent break even plus profit, missing goal puts stress on the company’s ability to pay its expenses, debt obligations and fund growth initiatives.

  • Everyone likes to get a raise, advanced education and better benefits. That can’t happen if the salon/spa misses its monthly revenue goals more than it makes goal.

  • Missed monthly goals ultimately force owners to cut back on expenses. The longer missing goal continues ... the deeper the cut backs need to go.

In team sports, the ultimate goal is to have a winning season, make it to the playoffs ... and win the championship. The better the level and intensity of teamwork ... the better the chance of having a winning season and winning it all.

Individual players step up and play to achieve their best personal stats and records. Players bring out the best in each other because everyone wants to win.

In a salon/spa business, the game is nearly identical. The goal is to have a winning season ... which means having its best revenue year ever.

Here’s what winning in business looks like ...

  • The business season consists of twelve monthly games a year and is defined by a service and retail revenue goal. Hit or exceed the goal and the salon/spa team wins that month’s game.

  • If your salon/spa wins eight or nine of the twelve monthly games ... it will have a pretty good season and will likely be financially fit.

  • Win ten or eleven of the twelve monthly games ... and your salon/spa will have a very impressive year and ... if you truly live your Cash-Flow Plan ... it should be in great financial shape to grow. This level of performance is teamwork and systems driven.

  • Win twelve out of twelve monthly games ... and your salon/spa will have a truly impressive and extraordinary year by winning it all.

Here’s what a losing season in business looks like ...

  • Lose seven out of twelve monthly games ... it’s a sign of inconsistent leadership and unbalanced teamwork where some service providers play to win and others don’t really care to contribute or win at all.

  • Lose eight, nine or ten out of twelve monthly games ... it’s a sign that the business is in trouble culturally, operationally and financially. Leadership, accountability and consistency is in disarray. Significant change and overhaul of how the salon/spa conducts business is desperately needed.

  • Lose eleven or twelve out of twelve monthly games ... the salon/spa is in serious trouble. It’s stuck in a perpetual cash-flow crisis. Its culture is dysfunctional. Its critical numbers are way off benchmarks. It’s questionable if the business can continue on without piling on more debt.

  • Repeatedly missing goal demoralizes a team and eventually leads to turnover.

Here’s my challenge to you: If your team is not locking onto and pushing forward with a sense of urgency to achieve the salon/spa’s monthly revenue goals ... then you are not communicating the bigger picture of what those monthly revenue goals mean. A team cannot and will not fight for what it doesn’t understand. Invest the time to bring absolute clarity to what the revenue goals mean to the team and the company’s sustainability and ability to fund growth. You don’t need to do a forensic financial analysis. Simply connect the revenue goals to what matters to the entire team: Payroll, benefits, training, using the best products, new equipment, décor enhancements ... and personal growth potential and security.


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