This is it…..we’re officially in the last quarter of 2020.
Considering the year we’ve had I’d say we all deserve to end it on a high note!
My contribution to this will be giving you tools to really boost your profitability now, and going forward.
With this in mind, I heard something interesting this past week, and I thought I would share it to see whether you experience the same challenges.
I’m going to assume you work with a P & L where you forecast budgets and revenue. If you don’t, it’s seriously time to take the step and start running your business efficiently and understanding and managing the profit margin. Ultimately, turnover doesn’t matter at all, it’s the profit that matters, and of course cash flow, as those two will either keep you in business and growing, or totally drown your business.
So, here is my question to you?
Do you have a tracker to record your spend for two reasons:
- To ensure you don’t spend over your budget?
- To ensure that you keep the spend in line with the revenue?
Again, budgets mean nothing if they are not aligned to revenue. Your budgets are set on specific revenue forecasts, but what happens in the month where the revenue forecast is just not aligning, and you are not getting to your goal? Do you adapt your spend budget to align to revenue or do you spend the budget because it was forecast and allocated to you?
This is interesting. REALLY INTERESTING. I decided to call 10 business owners this past week and here are my findings.
Only 1 salon actually works with a P & L and has forecast revenues and budgets.
Only 1 spa manager, who works within a hotel spa, has access to the P & L and knows how to read it and what the various line items mean.
Here comes the scary part……not one of the 10 work with a tracking tool to ensure their budget spend is in line with their revenue targets!
IT REALLY IS TIME FOR OUR INDUSTRY TO PICK UP THE PACE AND GET BUSINESS SAVVY! Wellness is key to the world, but we need to run these businesses profitably. Without profit it doesn’t matter how important our industry is to the world….it won’t grow and evolve unless we, as owners and managers, make the resolve and commit to changing how we run our operations.
So, on Thursday, 20th October, Andy Barge, one of our Advisor Members and Spa Director at Six Senses Zighy Bay in Oman, will present a tool to transform how you forecast to protect your bottom line. This is simply not to be missed.
Register to attend this session by following the link:
Transforming how you forecast to protect your bottom line
I also want to remind you about the next group starting our popular flagship Business Management Training Certification on 20 October. I’m going to tell you just one story, but there’s many more, so please review all the wonderful testimonials on our website. One group of spa owners took the decision to start this course and all three of them are completing it. Their names are Lisa, Mareli and Nicole from Sherbet Angel in South Africa. They say, and I quote, “We have never had such a motivated and driven team ever in the 10 years we have been running our business and we have never had such excellent retail and treatment upsell numbers like we have been getting since we implemented all the tools from the Spa Professionals Guild Course. September, we welcomed 65 new clients to our business with a R100 000 increase in revenue over the previous month and all this in the middle of a pandemic”. You too can have success stories like this, but you need to MAKE A COMMITMENT and get started! There is NEVER going to be a right time, the time is NOW because your business matters, and the quicker you start the transformation, the quicker you will see your bottom line grow!
To register for the 7-Module course simply follow the link in the image below.
Join our community and be a part of a global tribe, sharing best practices, learning, evolving and growing! Welcome to the Spa Professionals Guild.
Stay OBSESSED tribe!
Marisa
