The start of the new year is always a great time for salon and spa owners to review what’s worked, what needs a refresh, and pinpoint areas of new growth to create solid, workable goals. In fact, a Harvard Business study revealed people who set goals are 10 times more successful than those without goals, simply because they are writing them down.
Even if creating general instead of specific goals is more your speed as a business owner, it helps to start with solid information and stats from the previous year. Taking a deeper look at key areas such as marketing needs and costs, client retention rates, and the overall “cushion” available in the budget clarifies how current efforts and tools paid off, and where you can be more creative in the coming year.
To leverage the right information and create clear goals you can commit to for the year, start with these 10 tips:
Do a “year in review”
Set aside time to look back at all aspects of the business. Make note of highlights and areas of improvement, and create a realistic timeline to implement changes as needed. Use this overview as a guide for the year ahead, and update it as needed.
Set goals for the salon or spa vs specific business goals
It’s important to separate goals for the salon or spa such as adding a new product line or service vs a business goal such as hiring a new front desk manager to improve client wait times and increase revenue by x% in the second quarter. Each type of goal is essential, but it’s important to create a balanced list of creative goals for the salon vs business goals that focus on cutting costs or improving sales margins.
Consider best sellers from the previous year and use a blueprint for future sales
It’s easy to see how best sellers are a win – they are already selling! However, it’s also important to mix things up from year to year. How can you maintain or improve the margin on best selling products or services? How can you repackage best-sellers with other products or services that are new or need a boost?
Review client “hits” or specials for new and returning guests, and ask for feedback
The most important part of your salon or spa service is client feedback. Clients want to be heard and like to be asked to share what they think – especially in the service industry. This insight helps you make decisions about products, services or specials they like least, or best, and offers a way to gather insight on staff or “blank spots” in regard to service options. Testimonials and feedback also do double duty as client marketing, especially when you share them on social media.
Consider the return on current salon and spa technology tools and if an upgrade is needed
No one gets excited about spending money on tools that are underperforming. The new year is a perfect time to look at how current tools are helping, or hurting, your bottom line and research new options that can help you save money in the long run.
Complete a social media review with managerial staff, stylists and general staff
Social media is an essential tool to help salons and spas to connect with the right clients. So how would you rate your social media presence? Does it need an overhaul? Are you leveraging the influence of the staff and current clients who love you? How can you change things up online and get more consistent with your social media presence?
Clarify where costs can be cut or a service can be phased out
One of the most interesting things salon and spa owners can learn from sales numbers is what clients really want, and continue to pay for regularly. If there are services that are no longer popular, take them off the menu. If there’s a marketing tool or partnership that’s outlived its usefulness, do some research and consider changing providers or research innovative developments in the industry.
Consider where revenue can be increased on a product or service
Raising prices is a perfectly reasonable business strategy when it’s necessary. If your costs are going up or if you see a particular product or service is doing well as a cornerstone, think about a reasonable client cost increase. When considering this option salon owners should review 1 – 3 years of sales performance to create an increase that makes sense.
Meet with staff, ask for input, and consider a general performance review of current staff members
Staff are the heart of a salon or spa, hands down. Their happiness, performance and overall enthusiasm contributes to the health and success of your business. To ensure their voices are heard and respected, ask for their input on big decisions before you make anything final. It’s also important to be honest about how their overall contributions are impacting your business. To create a safe and healthy back and forth, offer an annual review process and outline a clear staff feedback loop they can take advantage of throughout the year.
Build marketing campaigns around successful promos from the previous year, then refresh
Marketing is one of the most powerful ways for salons and spas to connect with their local community. It’s also why tracking the success of marketing campaigns and outreach like emails and newsletters is so essential for business growth. At the start of each year, take a look at what marketing outreach has accomplished and where a fresh tactic or approach is needed. If you use a client management system to help run marketing campaigns, review any data provided to see what campaigns were a success and any additional data that may factor into seasonal or quarterly performance.
Take steps towards your most successful year yet using these suggestions to create clear accurate goals for your salon and spa in 2020.