Monday, December 21, 2009

Salon and Spa Owners - What would you rather do...Work More or Make More?

Are you are a busy Salon or Spa Owner in desperate need of making more money but you don’t have the time or the energy to do it yourself?
Do you feel that you are really close to grabbing the ‘brass’ ring only to find yourself unable to reach it yet again?
Are you frustrated by the lack of initiative, willingness and drive among your team members?
If you answered yes to one or all three of the above questions then take a moment, kick your feet up and read about how you can change your course to working less and making MORE. What I’m sharing isn’t rocket science, however, even the best of us could use a good swift ‘kick-in-the-pants’ every once in awhile to get ourselves back on track.
The three ways to making more are:
1. Understand the 80/20 Rule
In 1897 Pareto, an Italian Economist came up with the 80/20 rule. This rule in of itself revolutionized the way we think not only about wealth but about every area of our life. Applied to your business it can be said that 20% of your employees will produce 80% of your revenue. Many business leaders spend little if any of their time focusing on those areas of their business that can generate the most revenue. You’ve got to shift your focus and begin spending your valuable time on those areas that can generate the most revenue and thereby save you time.
So in any given situation the question to ask yourself what is the 80 percent and what is the 20 percent. In other words if you want to be wealthy ask yourself what is it that the 20 percent do differently that allows them to control 80 percent of the wealth. If you want your business to be more profitable ask yourself what is the 20 percent that is accounting for 80 percent of your profits and focus in on that.
2. Build it and they will come!
I love the move Field of Dreams! The movies theme serves as an excellent analogy for salon and spa owners struggling to make more. When I say, ‘build it and they will come’, I don’t mean go and build a brand new salon and spa I simply mean build a business.
Allow me to clarify. Most successful small business owners do one thing really well. They think like large businesses. Meaning they visualize themselves making it big, align themselves with individuals that can help them get big and systematically implement the necessary structures to be big.
You bought and opened a business, now act like a business! Success comes to those who plan for success. Planning begins with preparation. Establishing a clear vision and mission for your business, developing a realistic cash flow plan for profit and establishing the specific systems, policies and procedures in which you will operate your business. Even if you have only one employee you must prepare your business to receive. Preparing eliminates fear, procrastination and reduces turnover. It also provides power and positions you in the rightful seat of leader. If you feel behind the eight ball and that you are loosing traction in your own success. STOP! Take a vacation from working IN your business, hire a coach and go work ON your business. When you return you will be armed with the tools necessary to work less and make more. Not only will you save time but you will save money and quit possibly your sanity.
3. Serve your number one customer FIRST!
As a salon and/or spa business owner your number one customer is your team! Without a team you don’t own a business you own a job. Taking care of your team and serving them well is your key to success. Marcus Buckingham wrote a fantastic book called, The One Thing You Need to Know. In his book he writes that great leaders and managers have the ability to turn talent into performance. Read that again…turn talent into performance. To make more money in less time your job is to simply turn your talent (your team) into performance (producing revenue). He goes on to say that doing so is as simple as; finding their talents and strengths, trigger great performance and tailor their learning style.
Essential your job as their manager/leader is to get your team working on those activities in which they perform their best. Secondly, you must work to trigger great performance. You’ve got to consciously recognize and reinforce desirable behaviors. Get creative! This may be in the form of a personal thank you note, a public acknowledgement in front of the team or simply having an employee of the month board. Lastly, tailor the learning. Your job is to discover the best way in which each individual on your team learns and work to provide an environment that supports their learning preferences.
Although these three steps are simple they do require time and effort to implement. Remember, Rome wasn’t built in a day! Working less and making more can be done but you must be willing to make the necessary changes.

No comments: