How to set targets in your salon

That is what I offered my staff to get my best years profit ever.

Every year the team and I meet to set the next years goals and targets for the salon. On this occasion we set the target at a 33% increase. The carrot at the end of the year was the around the world flight.

As you know, I set my annual target growth ( I still do this with my coaching clients) at 30% because that is big enough to make a difference to the team and get excited about it.

Once the salon year target was set, it was broken down into biteable sizes so the team knew what they needed to take each week to help us hit the salon year goal.

The teams’ target was broken down to a weekly amount and if they hit the target as well as getting rewarded with cash, they would be given a coloured marble.

You see, we had a huge bowl in the back room and if any staff member hit their target they could place their marble in the bowl.

They all had 48 weeks to hit their weekly targets and a possible 48 marbles to go into the bowl.

At the end of the year, we would pull out 2 coloured marbles and send those team members around the world.

Can you imagine the excitement and buzz that was going on in my salon that year?

Do you think that would motivate your team?

This worked because:

The prize of an around the world trip was so BIG it was worth them pushing for it

The weekly marbles kept the team focused on a weekly level.

Everyone had a chance as it was a level playing field.

You could have an off week and still be excited.

That year we made the best profit ever as staff productivity was the best it could be and takings went through the roof.

To be honest- The around the world trip would have only cost me around $10,000 but the value to the team was worth 10x that.

What can you do to motivate your team?

I just read your mail before shutting down for the jubilee weekend. I may have ‘dropped out’ of your regular coaching session but I thought you might like to know what a massive huge impact those few weeks with you had on me and my business.

I’ve gone from a negative £20+k loss per year and all the pain you describe in your email, to last year a £60k net profit – coming out of the pandemic still being closed for 3 months of the tax year!!! – and this year I’ve already beaten my Q1 target by over £20k, so it’s looking good.

I keep aside 20% VAT, never go over 12% for cost of sales/purchase of stock, my wages are no more than 33% of takings and I’m finally paying myself a decent wage. I’ve upskilled my Managers, who also now truly understand their numbers and are incentivised on reducing stock spend as well as exceeding sales targets. We’ve been able to make salon improvements like a new brow bar, air con installed and repainting. I have a brand new Merc, new hair, theatre trips, shopping trips with the kids. But even more… I’m relaxed. I already know there is MORE than enough money to pay the next VAT bill, I’ve half cleared my BBL using extra takings after deductions, and am tax planning with my accountant to avoid paying loads of tax… not a conversation I’ve had to have in the past. And your rigorous financial planning is the root of this loveliness.