At the end of March, your spa finished it's first financial quarter. Most of you will focus solely on where your estheticians service & retail sales landed at the end of the week, month, quarter or year.
However, revenues only tell you one small part of your business: money coming in.
But what about money going out? What about money that is left on the counter? What about money that’s not even talked about? What happens to all that cash?
Likely lost because you might not have been aware it existed.
I want you to start tracking your business numbers, so you don’t miss out on the financial perks:
➟ Finding the money you didn’t know was missing.
➟ Realizing you were leaking money in places you didn’t know had holes.
➟ Discovering you pay more in labour expenses than you should be.
➟ Paying yourself a healthier wage.
➟ Saving for your business growth.
➟ Saving for a business emergency.
And then there are the emotional perks of knowing your numbers:
➟ You can make smart financial decisions based on your ‘thinking brain’ rather than your ‘reacting brain’.
➟ You are clear about your business financial goals (no more hoping and wishing you will ‘make it’)
➟ You feel confident that, even though you may not be hitting your monthly financial goals right now, you have a clear plan on how you will.
➟ You can relax into action when you have easy to follow strategies that can raise your numbers
If you could feel smart, clear, confident and relaxed about your numbers while generating and finding more money in your business…would that make your life easier?
Awareness is always the first step. Here is a little homework assignment to help you get familiar with one of the most common numbers you should be paying attention to: Retail to Service Ratio.
- Go to the Reports page of your digital business system and look for Retail to Service Ratio. (If you don't have a system that does this for you, total up your service sales & retail sales separately. Add together to find your total sales. Then divide your retail sales into your total sales. This will give your Retail to Service Ratio.) Choose the date range for Jan-March 2015 & print.
- Choose the date range for Jan-March 2014 & print
- Compare Retail to Service Ratio from this year to the previous year.
- The industry benchmark for Retail to Service Ration is a minimum of 30%.
- Where are your numbers at? Abysmally low, right on target or skyrocketing?
Give yourself a pat on the back if you are rock’in your ratio, but never feel bad if you discover they are way off the track of success. They are just numbers.
When you know better, you do better.