Should you be opening another location?
Today, I’m going to show you how you can calculate if you’re ready for it.
Do You Truly Need Another Location?
Another location could either be a huge opportunity, or a huge nightmare if you’re not prepared to handle it. That’s why I will walk you through what you’re going to do and offer a couple of formulas that you need to be aware of.
I put together an amazing tool that you can download to help you calculate and make sure that you’re ready to do it.
The Capacity Utilization Rule
There’s a rule called Capacity Utilization. I’ll admit, it sounds like a fancy term, but it’s not really that crazy. Capacity Utilization is actually a term that was created a while ago for mega churches. What they found is when people attended these giant churches which seated a thousand people, once the church filled to about 80% capacity, people would have a hard time finding chairs. They wouldn’t know where to go and they would look elsewhere. People didn’t feel like there was enough room for them to fit in.
The same thing can happen in your salon. If your guests are calling to get on the books, and you are about 80% of your capacity, but guests can’t book with their favorite stylists, they are going to find somewhere else to go because they can’t get what they want.
Two Types of Capacity In Your Salon
There are two types of capacity you need to be aware of inside your salon:
- Staff Capacity
- Space (Location) Capacity
To explain Staff Capacity, let’s say you have 10 staff members. You will need to figure out how many appointments 10 staff can manage in a specific period of time. Then you have to ask yourself,
“Are those appointments filling up at 80%?”
Because if they are, you are actually fully booked and operating at Total Staff Capacity. Your clientele will actually start to leave beyond that 80% level.
To explain Space Capacity, imagine you have 10 staff, but you have 25 stations. Well, that means your space has capacity for even more staff. Even if you look at it like that, it’s not just a one-to-one ratio on chairs, because there’s also the option for you to be split shifting. This would mean your salon is operating below its Total Space Capacity.
So, the important questions you must ask yourself are:
- Are you split shifting?
- Is your staff at capacity?
- Is your space at its total capacity?
Download the Tool
If you want to get some help with this and get the exact formula to figure out if it’s time to open another location, then grab the download that we have for this called:
Define Your Intention
If you are just opening another space because it’s an ego thing, and you want to have another space just to say you own multiple locations, can I just tell you right now, it’s not time to open another space. You don’t need to waste the money.
As long as your staff capacity is ready, your space capacity is ready, and you’re doing it because you genuinely can serve more customers, then it’s time for you to expand and open your next space. Whether it’s your second space, third space, or 100th space, if you use our calculator, it’ll help you to determine it.
Until then, have a fantastic week.
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