Imagine a business where your cash flow was smooth.
Imagine a business where you spend in line with your revenue and never get nasty “no cash” surprises at the end of the month.
So, this past week I decided to call 10 spa and salon managers or owners.
Here are my findings, and yes, there is a VERY IMPORTANT point which I will get to in a minute.
• Only one of the salons I interviewed actually works with a P & L and forecasts revenues and budgets.
• Only one spa manager, who works in a hotel spa, has access to the business P & L and knows how to read it and what all the line items mean.
• Here comes the scary part. Not one of the 10 owners and managers work with a daily tracking tool to ensure their budgeted spend is in line with their revenue targets and actuals!
So, let me ask you, do YOU use a daily tracking tool or spend tracker spreadsheet, or do you check the bank balance and then decide what and when you can pay for business expenses?
If you are not using a tracker spreadsheet then today is the day to START using one!
SPEED OF IMPLEMENTATION!!!! Let’s get cracking.
At this point budgets mean nothing because a budget is only as good as the income, right? So, unless you are on point with your income, you cannot possibly spend the allocated budget. Whilst I’m on this subject, I’m going to sneak in another little point here. The opposite applies as well. Meaning, if you are over target and your income is more than projected, well, then the spend on stock should be higher too! Did you read that carefully? The spend on STOCK should be higher too. Not the spend on new cushions or new teacups, but the spend on stock as more stock boosts revenue.
In February this year we hosted a training webinar exclusively for members of Spa Professionals Guild. During this session we introduced a tool to assist with not only forecasting but daily revenue management as well. We’re making this 30 minute training video available to you today and would love to hear your feedback.
The end goal is that we hope to help you run a more profitable business by being in TOTAL COMMAND OF YOUR CASHFLOW!
Invest 30 minutes by watching the video here:
If you have any questions regarding this training or the tracking tool introduced during the training, please reach out to us HERE
This tool forms part of our comprehensive Business Management training for spas and salons and is just one of many tools we provide to streamline your business operations. To gain access to this course follow this link: https://spaprofessionalsguild.com/business-management-course/
Till next week,