Salon & Spa Critical Numbers: It’s About Incremental Gains
There are unique differences in the critical numbers between salons, spas, massage, medspa, nails, lash extensions and other related companies.
We understand that the dynamics of small companies doing a few hundred thousand dollars a year is different than those in the multi-million dollar category.
FACT: Critical numbers, Balance Sheets and Profit and Loss Statements tell the truth about the health and performance of any company.
For all business owners, even those that say, “my company is different,” there is where your salon/spa is today and what its potential is six months, a year or five years from now.
FACT: You’re either working on improving your critical numbers, making your Balance Sheet look healthier, and creating more net profit on your Profit and Loss Statement or accepting status quo.
Yes, there may be valid “explanations” why your critical numbers and financial reports are showing less than stellar performance, but “explanations” don’t make them better — doing the work makes them better.
Pushing yourself and your team to stretch and be “comfortable” being “uncomfortable” is how a salon/spa business grows.
- That’s how to lead your team to become a new and improved version of what it was.
- That’s what business and building a company is all about.
Strategies will celebrate 30 years in business this September 13th. It wasn’t easy. We’ve had good times and fought our way out of bad times.
We never had any “training/coaching industry” benchmarks to follow because none exist. Just like the salon/spa owners we coach and train, we focus on basic critical numbers:
- Lead conversion
- Coaching client/membership renewal rates
- Pre-booking coaching calls, seminars and onsite sessions
- Working within time standards
- Percentage growth this year compared to last year
- Productivity rate this year compared to last year
- Payroll percentage for coaches and admin/office
- Net Profit this year compared to last year
- Cash reserve this year compared to last year
- Equity this year compared to last year
It’s the company and culture you build that matters most.
- The better we design and work our systems, the better we do.
- The more we share accountability and empower our team of corporate office team and Strategies Coaches, the better we do.
- The harder we work, and the less excuses we make, the better we do.
Here’s my challenge to you: It’s fine to admire what other salons/spa are doing, but working on and improving your own company’s critical numbers, Balance Sheet and Profit and Loss Statement is where you’ll find the amazing success you’re looking for.
View industry benchmarks as rough guidelines. They may or may not fit your company’s performance and financial reality. Benchmarks only make real sense if you’re comparing data that reflects your company’s size, market, expenses and other factors.
Your goal, and our goal at Strategies, is to help your salon/spa become the dynamic and profitable company it is capable of being. Schedule a free strategy session here if you'd like to explore how we can help you get there.