Salon owners often go from one extreme to another while trying to make their salons more profitable. Many of them believe that in order to increase revenue and profits, it is necessary to attract more new customers. However, as a rule, this is not just the most obvious but the most expensive way. From the perspective of long-term work, financial optimization is more suitable for the salon.
This tool helps to significantly change the financial side of a business for the better. It happens that additional revenue is generated even without the introduction of any marketing tools - only thanks to financial optimization.
Financial optimization
The first place to start is to analyze your fixed costs. At the same time, the quality and service of the salon should not suffer.
- Analysis and reduction of fixed costs - find outbif it’s possible to reduce rental costs or to renegotiate; analyze ALL costs for the services - changes can be minimal, for example, changing the tariff for the Internet. However, this is an important optimization step;
- Spend control - daily reports. Every day you should mark how much you earned and spent.
- Analysis of indicators and effectiveness of each stylist. If you see that there are underperforming stylists, then talk to them, make up an individual development plan - do something about their ineffectiveness.
- Analyse the performance indicators of all divisions of the salon. This will give you an understanding of what direction to focus on in terms of marketing, sales, and promotions.
To summarize, financial optimization is about looking at your salon through metrics and expenditure items. Thanks to it, you will see where you are losing or ineffectively using money. If it can be quickly fixed, then do it and reduce money waste. If you understand that you can’t quickly fix the problem, then turn your attention to it and plan your work.
