The beauty industry is booming! According to Quikstone Capital, the salon industry is expected to outperform the United States general economy over the coming years. No matter if you’re a salon owner, commissioned stylist, or independent stylist, there are real opportunities for you to increase your annual income.
Our previous post highlighted that it’s essential for industry professionals to understand today’s consumer if they want to drive their business. The next step is to know where you stand financially and identify where there is potential to improve.
The average professional’s income can be broken down into various segments. Each segment plays a role in building a financially viable and profitable business.
It’s no surprise that the largest portion of income is derived from color services, cutting, and styling. In order to grow, you should consider each segment, especially retail and other (i.e. add-on services, extensions, makeup, nails, lashes, etc.). And remember that referrals—whether organic, incentive-driven or through specific marketing strategies—are the nucleus of your business!
By rolling up your sleeves and doing a few basic calculations, you can identify opportunities.
Once you’ve done the math, take a long look at those numbers and see where you should invest your energy. This will help you establish quarterly goals. Consider focusing on one category at a time.
Before you can set any goals, you need to commit to adjusting how you work, and how you see your business. If some of your numbers are less than stellar, it’s likely that you will need to change some of your behaviors. Think about how you’re spending time with your clients when they are in your chair.
A great target to start with is to increase a specific category by 10-15%. For example, if only 5% of your total revenue is generated by retail sales, your goal might be to increase it to 20%. Another goal could be to increase the percentage enough so that your retail revenue can pay the rent.
In the next few weeks, we will share easy, solution-driven strategies to increase your revenue generation across all income segments.