Attention: There are only 13 days until Thanksgiving. There are only 43 days until Christmas, and 50 until 2017. How did that happen so fast? Where has time gone? As a business owner, the end of the year calls for you to not only reflect upon all the great achievements of 2016, but also to quickly change your mindset to gear up and take 2017 by storm. Are you ready? Here are a few best practices to close out 2016 and get on track for the New Year.
Understand the reports you need
Reports are an important tool to understand every aspect of your business such as taxes, revenue, and more. To end the year, you will absolutely need:
MR095: Tax Report – This displays all tax liability for all sales transactions processed through Millennium, including prepaid sales tax on product purchases. This is useful to give to your accountant at the end of the year.
MR156: Tax Collection Summary – This displays sales totals for each quarter, broken down by transaction type. It also includes the amount of tax collected during each quarter, broken down by transaction type.
MR080: Register Summary – This displays a total of all sales, tax collected, and payment types used—all on one page. You can run this report for the entire year, and give to your accountant.
MA200: Growth Indicators Analysis – This displays your growth indicators (KPIs), to help assess the performance of your employees and the business as a whole. Use these important metrics to analyze how each employee/department/business did for the year, and set goals for 2017 based on this. You should also use these metrics to determine which client loyalty promotions to set up for 2017 to help improve specific growth indicators.
MI047: Inventory Sales/Usage Analysis – This displays sales and usage data that allows you to determine whether to order or discontinue a product. When restocking for 2017, utilize this report to analyze which products were hot-sellers and need a higher model quantity, and which items should be discontinued!
Millennium offers a number of reports to help assist you in ending this year the right way—and starting 2017 with a bang. Clients can take a look at our End of Year Guide (within the Reports User Guide) on the community site to review all of the reports we recommend utilizing!
How did you really do in 2016?
The end of the year is the time where you must be honest with yourself. How did you really do? Did you meet your goals? Surpass them? Fall short? Use the MA200: Growth Indicators Analysis report to see how your goals were met. No matter how your 2016 was, use it as motivation to make 2017 the best yet. Once you’ve analyzed the report, use What If and share with your team how much they (and the business) can grow by increasing just one growth indicator.
Were your marketing efforts successful or not? You can use the DR040: Referral Income Summary report, which displays whether your marketing campaigns towards new clients were effective, and the MR025: Coupon Summary to view whether your promotions were successful.
Did your marketing efforts not do as well as you had hoped? Download our 2017 Salon and Spa Marketing Calendar for your guide to promoting your business with actionable items that will help you stay on top of your marketing plan and increase revenue.
Consider new programs for 2017
Did you know? Industry research shows that only 32% of salon and spas have client loyalty programs in place. Loyalty programs are not only a great way to increase client loyalty and retention, but also a way of increasing growth and revenue. If you don’t have one already, consider implementing a client loyalty program for 2017 based off of increasing your growth indicators (and therefore, revenue).
There are other ways you can grow in 2017, and it starts with you. Be sure to set goals for the year, and follow up at least monthly. Give your staff access to the Real-Time Monitoring Station in Millennium so they can keep track of their goals daily! Motivate your team by offering incentives, bonuses, and increases in wage/commission. Create friendly contests to incentivize employees and help them blow 2016’s goals out of the water. Don’t forget to let them know how much you appreciate their hard work.
You should also educate the entire time (including front desk professionals) on the growth indicators and how they can improve each one. You can then set goals for the front desk on up-selling, cross-selling, pre-booking, etc, which will ultimately help service providers meet or exceed their goals, and generate more revenue for the business. Consider teaming up the front desk and service providers for a contest to see who can pre-book the most appointments! Reward the winning team with gift cards, a day off, etc!