It’s unfortunately incredibly common for business owners to fall into the trap of simply working to earn a living and not actually making or saving any money. Just because you’re super busy, you may think that business is well and all is going fine, but in actual fact, being busy doesn’t always mean that business is booming and the money is rolling in.
Lots of business owners can fall into this trap and it’s easy to be busy doing the wrong things whilst neglecting the most important aspects of your business – the areas that make money.
Reflect on What Works
A positive way to reflect on your business and how each aspect is performing is to review how well each function works and establish how it could be even better. It is so important, however, that you make sure you take time out of your business to look at it. It’s often very difficult to gain insight while still being heavily involved in the day-to-day running, and if you don’t temporarily remove yourself, you won’t be able to understand what areas are making profit and what areas need work.
It’s highly likely that everyone you work with are highly passionate about their jobs. However, making money is really the main priority, so you need to ensure your business is making you the living you deserve.
How to Review Your Business
One of the first things you should do is look at what your running costs are, then work out how much you need to take each day to cover these outgoings. At this point, it’s vital to be realistic by adding on the amount that you would like to be making. Start by reviewing your services and the treatments you offer.
- Make sure you price your services accordingly.
- Look at the treatments that give you the best return, and don’t underestimate the value of your retail.
- Work out how much your clients are worth by calculating the financial benefits of discounts and offers.
- Discover new ways to market existing products and services.
- Consider introducing higher end treatments that will bring additional revenue streams.
It can be difficult making difficult decisions, but there may be cost saving opportunities in-house. Have a look at your teams existing contracts, level of productivity, and the perks and benefits they receive. Additionally, a review of your utilities can usually help you save some money at the end of each month.
How can YOU Drive Change?
Above all else, you need to set out the objectives that you want to achieve. Understanding what it is you want to achieve (in this case, a better bottom line), you must then develop a personal development plan to help execute your strategy and make the most from your business. This will mean looking at yourself and considering ways that you can help drive change.