There are many reasons to start a business. The most successful businesses are often built from passion by finding something you love doing and then making it your job. Whatever the reason for starting a business, the most important factor is how it is going to make money. All businesses need a profit to survive. Often, businesses can become too focused on sales growth and can lose sight of their costs. Reducing and controlling costs is critical in order to keep your business alive and thriving. Here are a few ways that your business may be losing money and some tips on how to fix it!There are many reasons to start a business. The most successful businesses are often built from passion by finding something you love doing and then making it your job. Whatever the reason for starting a business, the most important factor is how it is going to make money. All businesses need a profit to survive. Often, businesses can become too focused on sales growth and can lose sight of their costs. Reducing and controlling costs is critical in order to keep your business alive and thriving. Here are a few ways that your business may be losing money and some tips on how to fix it!
Considering the correct usage and application of the waxing products you are using in your spa can help eliminate waste and reduce costs. Asking the supplier or distributor if they can provide you with a usage chart can help you better understand the cost per service. When it comes to waxing, consider using a strip wax that is applied super thinly, as it will allow you to get more waxes per jar. Less wax buildup means less buildup on strips, so you are able to reduce the amount of strips you use per wax. Additionally, choosing a hard wax that can pull the short, stubborn hairs the first time will mean less applications and, therefore, less wax usage. Once you have selected the products you will be using, keep track of the actual usage. Be aware of small things like making sure all wax is scraped from the bottom of the jar before being thrown out, as overtime that small amount of wax can equal a large amount of wasted product and money. Routine check-ins with the team will help to manage product usage and bring costs down.
Scheduling your team can be one of the most important aspects of your business, as the payroll expense is often one of the largest. Analyzing the flow of your business throughout the day and the week will allow you to know when your busy times are versus slower, quieter times. During those busy times, ensure you have the appropriate number of staff on the schedule in order to fully maximize your business’ capacity. If you find there are times when things are quiet and staff does have some downtime, make sure to use this time to keep the team engaged by having them perform tasks, such as counting inventory, cleaning their room, cutting wax strips, or practicing on each other. Not only will managing the staff schedule closely make the business more efficient, it will reduce staff costs and grow the bottom line.
MISSED APPOINTMENTS POLICY
Do you currently have a missed appointment policy? If not, this is something to consider. A missed appointment is a missed opportunity. Although it might not seem like a problem, a lot of missed appointments add up and can cost the business a lot of money, as these are appointments that could have been filled by another client. Developing a missed appointment policy and staying consistent with using it will likely help clients to respect that booked appointment and reduce the chances of them missing it. Sending a text, making a phone call, or sending an e-mail reminder at least 24 hours in advance can help reduce those missed appointments. Plus, clients often appreciate the check-in and it is a great time to remind them of the pre-appointment recommendations for their wax, such as not shaving prior to the appointment or answer any questions they may have.
NEW VERSUS CURRENT CLIENTS
The cost of acquiring new clients is higher than retaining current ones. One of the main reasons for this is that the outreach to new clients can be expensive, depending on the marketing strategy used. Additionally, it can be challenging to measure how effective these marketing campaigns are. Although reaching out to new clients is still important to grow sales, continuing to build loyalty with current clients can cost less and also grow sales. Retaining clients can be as simple as providing the best possible service that you can by using quality wax products, showing clients they are important by offering simple promotions, or creating a loyalty program. Remember, loyal clients trust you and are going to be keen to spread the word to their network. As a result, a new client base will naturally grow without a lot of financial investment.
Finally, as you focus on the areas that might be losing money, don’t forget there are certain elements that won’t cost a cent and will positively affect your business. Remember to always welcome clients in the door with a smile and be confident that when they leave you have provided them with a more pleasurable waxing experience.
Lindsay Miller is the president of LYCON Wax North America. Having first discovered LYCON Wax in the United Kingdom 10 years ago, she has dedicated her time to growing the brand across North America, including introducing LYCON to Canada. Training and product quality are extremely important to Miller and she prides herself on building a strong team around her that can offer the best customer experience possible. LYCON continues to be a market leader in hair removal wax and is used in top spas and salons around the world.