5 R's of Growing a Successful Business
What are the most important parts of a business to focus on? As a small business owner, it’s easy to get overwhelmed, but following these top five tips will help you build a more successful business with higher profit.
In my coaching program, these have not only been the biggest stressors I’ve seen in working with other small business, but have commonly been overlooked!
Let’s break it down:
1. Increase retention. New business is great, however, retention tells us a lot about our business. The better we can serve and understand our repeat clients, the easier it is fill our books, add on services, and build trust.
For ideas on how to increase retention, listen to this episode on the podcast.
2. Revenue. There are 3 components that affect revenue: Payroll, Inventory, and Expenses. A million dollar salon doesn’t mean anything if we can’t get these three elements low. Working with a CPA and financial advisor can help you with reevaluating what can be adjusted.
3. Rationalize your systems toward efficiency. Automation has now become the norm for businesses these days. One of my favorite tools is Flodesk which helps me build trigger segments, newsletters, and landing pages. This is an amazing tool for building stronger connections and target the right clients, along with gaining new! Try Flodesk for free, then get a 50% discount for 1 full year.
4. Reduce. We talked earlier about finding a good CPA, and other parts of the business you want to keep as low as possible.
Another important factor is to keep an eye on our inventory, and watching the numbers. I use SalonScale to track the amount of color being used, so that I’m assured the cost is being covered. Get 10% off with code Ambrosia10 here and give SalonScale a try for a year. Watch how much it increases your business!
5. Reinvest. And make sure you’re looking at every part of your business. Do your market research every year, invest in your employees, business classes, as well as investing in marketing.
To learn more on Marketing Strategies, check out this video:
Make sure you check back next week, we will be covering Tips on Becoming a Platform Artist.
In the meantime, I’ll be seeing you on social!