HOW TO ENTER THE NEW FINANCIAL YEAR READY TO GROW & EXPAND YOUR BUSINESS!!

By Andy Heyne

As this current financial year comes to an end, and we enter a new financial year! There is always questions in the back of our minds, right? How can I do better this year around? How can I pay less tax? What do I need to do differently? I don’t understand how I can reduce my taxes? What can I do so my salon will generate more revenue? I want to achieve xyz, but I have no idea how? I know we all work hard all year, but I cannot really see the results WHY!!?

Let’s first start by saying that. You are perfectly normal, and all these thoughts are not original so you are not alone. Almost 99.9% of business owners have these thoughts or have had these thoughts! Just be ok with being human and going through the thoughts and cycles of a Business owner.

Even if you have a 7 figure Salon but are wanting to break through to multiple 7 figures or you are a Home-based Salon looking to expand and get a bigger Salon, this is for you! Tip: We must first be ok with failure. We must first forgive ourselves for what we have not achieved. We first must take a minute and be aware of what we have achieved!

As they say, “Stop to smell the roses, but then keep going” well the first part they say, I added the second part just now (I think it will stick too)!

I have reached many a financial year ends in my career as an Entrepreneur in the Australian Beauty Industry, with the thoughts of ok will I be able to survive the next financial year? Will I be able to sustain these businesses for my family, my clients & my community? I am Grateful to say that ‘YES’ we have survived but not only that we have ‘THRIVED’!!

How do we enter the new FY from either last year’s Highs or lows? Here are some suggestions & strategies that will set you up to Grow, Expand, Transform, Inspire. Whatever it is you want to achieve this coming Financial year, here at Millionaire Salon Coach will help!

BUSINESS STRUCTURE TYPES

This here is a big one and can be the topic or situation that makes and breaks a small business. How you are structured from day one is Vital. Always with a re-structure it is best to ‘Start with the end in mind”. That means when you do a re-structure what is your Vision for where you want to go? How big do you want to take this thing called Salon Owning? How much annual revenue would you love to make? These are all vital questions you should ask yourself and have answered when talking to your Accountant or financial Expert Regarding your Salon’s structure. I have resourced information from the account we use in our Company to provide a more detailed & clear description of what will best suit for you.

It includes www.beany.com/en_au/businessstructures-part-1-what-is-best-for-you/

It includes descriptions of A Company, Sole Trader and Partnership, although you will notice there are some structures missing such as a Trust, SMSF etc.

A ‘company’ structure has been the best option for us with our companies.

GROWTH & EXPANSION STRATEGIES

Understand & Know your numbers!

It is wild how often I speak to Salon owners & Small business owners and they have not a clear understanding of their numbers! Without knowing your numbers, you cannot possibly hope or wish to success. That is like ‘Going to a foreign place for holidays, driving and you turn your gps but don’t actually enter the address you want to go’. Chances of you finding your hotel will be purely by luck and chance if you find it all. Knowing your numbers is absolutely vital. Your numbers will tell you exactly the health of your Salon/Business. When you have room to grow, when you will be able to Buy a new machine, do renovations, employ new staff, expand to a new location etc.

Numbers you must know:

• What your Salon needs to generate Per Hour to break even. Then add to that number depending on the impact you want to have or the life you want to live.

• Snapshot at your Weekly, Monthly expenses VS your Revenue. Then figure out if you need to be wiser with wastage (because we know wastage is massive) we suffered with this for like 6 Years in our Salon!

• What you would love to pay yourself from your Salon, you should aim to pay yourself a minimum 6 Figure Salary purely from your Salon. Literally because you deserve it! To do that you need to know your numbers tight so you can make informed decisions around what needs to happen in your Salon so you can live that 6 Figure Salon owner Lifestyle!

Saying ok I turnover $1m and I have a nice car, nice home & some fancy accessories (WHICH IS GREAT BY THE WAY) don’t get me wrong. But after all that you need to ask yourself this, Confidently. Do I have the cash flow and the annual revenue to open two more clinics? Or expand? Am I recession safe, do I have a cushion of money to survive another covid or recession? These sound negative I know, but these questions will hopefully spark inspiration for you to Grow & Expand!

Ascension, Training Plan, Mission – Vision & Core Values

These are generally 3 different subjects completely, but because your time is valuable, I have compressed this so you can get enough information to go and implement immediately without feeling overwhelmed.

All the above mentioned are based around how you can build the most effective & Highest Performing Team in your Salon possible. Without a team our success as Owners and leaders is limited!

Ascension Plan is a POWER MOVE:

It is a Tier pay rate level. The more revenue your Staff Earn annually the higher they go up in Tiers of salary (knowing your numbers will build this out too)

Training Plan:

Everyone loves education, improving them selves personally and professionally right! If you have a training plan you can predict what your training costs will be, when you can start in increase revenue in your salon from the training provided that I assume has improved your Teams Skills in Skin Science, Attitude mindset, Sales Training, Communication etc. Here at Millionaire Salon Coach we offer extensive custom packages for all these.

Mission, Vision & Core Values:

DO NOT OPEN ANOTHER DAY until you have these three dialled in. Harsh I know, but I say that because I know the transformation it will have on your life and your Salon once completed.

Mission:

Why you do what you do every day Vision: What is the big picture goal for your Salon Core Values: What you value in terms of actions, beliefs etc.

Here is a link to ours at Millionaire Salon Coach: https://millionairesaloncoach.com/pages/ why-we-exist

Personal & Professional Development THIS SHOULD BE #1 actually above all else. As the aeroplane companies say “Put your mask on before assisting others”. Perfectly said, we must first feed our own minds, bodies & spirits before we can begin to help others. Align yourself with mentors & coaches that have been where you want to go. People that can help you and understand you and your journey! Here is a saying I live by. “If you are the smartest person in the room, you are in the wrong room”.

Find New ways to add revenue: Look at how besides increasing prices you can increase your salons revenue! I have a post about the 5 ways to increase your salons revenue on my Instagram: www.instagram.com/p/Cd4v4DQpsxR/ Look at who you can collaborate with in the industry or outside industries that will help you grow and expand your vision! People are more than willing to help more often than not if we just ask.

ACTION PLAN:

1. Reach out to us here at Millionaire Salon Coach

2. Get clear on your Mission, Vision & Core Values. Your ‘WHY’

3. Invest in Personal & Professional Development TODAY

4. Look at your Business structure

5. Know your numbers like you know your Kids Birthday. Or your own Birthday

For more information please visit www.millionairesaloncoach.com