Most of us start off each year strong. It’s almost like that first day of school when you have new binders in your backpack, pencil kit all organized, and you think this will be the best year yet. And then a couple months in, the binders aren’t so new anymore, and you’ve lost half the pencils. It starts to get harder, and you have to give more effort instead of going back to old habits.
It’s the exact same thing when we set goals for our life and business.
Changing patterns is difficult. Staying complacent, being comfortable? Easy peasy, lemon squeezy. And without a plan, most of us default back to old habits.
That’s why today we will glaze the surface of review and reflect over the past year, and project what you want to happen in the new year to help you build a plan you’ll stick with.
Review
Let’s look at the past year before we make any plans for the new. Why? Because you can’t know where you’re going until you reflect on where you’ve been.
It’s so easy just to say this year was okay, but here’s what we’ll do in the new year. What was bad about it? What was great about it? Until we’ve identified all of those peaks and pits, you can’t properly prepare for a new year.
Ask yourself these questions to fully review the past year:
How much money did you make over the past year?
If you laughed out loud because you’re not sure how much you made in the past year, that’s a key indicator that you have a problem. You should know how much your business made that year to the penny because you have a system in place for that.
For those of you who think it’s funny that you don’t know how much money you make, consider if that is something you want to like take lightly. We’re in this business to create a beautiful life for ourselves and our family, not just for fun. Money is important, so if you don’t know where your money goes or how much you make, how can you make sound business decisions?
How many guests did you see last year?
If you’re still using paper books, make a note to switch to digital books in the new year. It’s time to take your business online.
If you have digital books, you can run a report to see how many guests you saw and referrals you had.
Referrals include people your current clientele sent to you as well as anyone who reaches out on social media (those are self-referrals because you referred her). Walk-ins or salon clients are not referrals because they are basically junk business.
Think about it. What kind of client wants to see whoever has time on Tuesday at 10:00 AM? Not a good one. You want clients who are loyal to you, not loyal to Tuesday at 10. Clients who are loyal to you are controllable, so that’s what we track.
What was your yearly retail sales total?
If you think retail is dead in the salon, think again. Retail is alive and well. Just because your sales are dead doesn’t mean they’re dead across the industry.
Retail equals retention and referrals. If clients didn’t want retail recommendations, they would just do their hair in the bathroom. Think of retail is a part of the experience.
What is your new guest retention percentage?
If you don’t know how many of your new and existing guests stick around, there’s no point in marketing you. We have to fix retention first, then we figure out how to market and get more referrals. Otherwise, we’re just bleeding out.
How tiring is it to meet new guests? It’s the hardest thing to do after dealing with difficult clients because it’s like a first date over and over. Yes, ideally, you’d just have regulars all the time, but until you improve your retention, how will you make that happen?
How much did you pay in business expenses this year?
So many stylists think that, since they went from commission to booth rental, they’re making more money. But here’s the deal: your gross income might be much higher, but I bet your net is lower because your expenses have gone up. You’re just not tracking them properly.
If you’re not looking at all those little details – booth rent, cost of color, higher tax rate – and not looking at your gross versus net income, you’re running a blind business.
Make sure you know how much money you bring in and where every penny goes so you can make powerful decisions heading into the new year.
Reflect
Before we launch into new year planning, let’s reflect on what worked and what didn’t in the past year.
Check the boxes that you consistently master in your business:
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Professional Facebook and Instagram page?
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Website to promote your business?
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Take photos of at least two guests a day to add to your social media profiles?
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A structured referral program that you talk about every day?
Do you network locally?
If we lost all social media tomorrow, how would you fare? Would you do okay, or would you lose everything you’ve got? Because if your business is so contingent on social media and online marketing that if it falls, you fall with it.
Make a point to get out in front of the community and market in person. Connect with other business owners locally. Become a name they’re familiar with, so you’re first up when they’re asked for a recommendation. Think about what you’re going to do to set yourself up for success.
On a scale of 1 to 10, how much effort do you put into growing and sustaining a successful business?
One is just showing up to your business and crossing your fingers that clients stumble in.
A five or six is wanting to make this business work, but you feel lost. You have a website, but no idea what to do with it.
A 10 is taking all kinds of classes, trying new techniques, and has absolutely no fear of failure.
Where do you fall on the scale?
Dream
Now that you’ve reviewed your past year let’s dream for 2020.
What do you want?
What do you want your life to look like in 2020?
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How much do you want to make?
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What do you want your profit percentage to be?
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How many new guests do you want to see?
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What do you want your Instagram and Facebook to look like?
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What do you want your website to look like?
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Who is your dream client?
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What is your dream schedule?
Get clear on what you want, who you want to serve, and what you want your life to look like, then think about it. This won’t be done in five minutes. This will take some time if you really dig in.
Once you have created that vision for 2020, plan it out. What classes do you need to take to make that vision happen? Foolish is the stylist or the business owner who thinks they do not need to take classes every year. If you’ve been in the industry for 15 years and not educating yourself annually, you’re doing 1995 hair and running a 2001 business. You must educate yourself year over year.
Until you’re clear on what you want and where you’re going, the universe will not provide. You need to have a clear vision for what’s up before the universe. If you’re a jumbled mess, your message is not clear, and nothing will happen until you find clarity.