First the story (briefly).
This morning I decided I needed a haircut. I only have so much hair now, so recently I have been going to a convenient barber, that is near the coffee shop I visit sometimes. The benefit of a barber is you can usually not make an appointment, and can get a tidy up that suits my time frame rather than my hairdressers.
I used to go to hairdressers, but the event usually required a special trip, which added to the time needed. And often even with an appointment, I would be asked to wait. So, with the decreasing amount of hair, and less difference between a great haircut and a haircut – I decided to go to a barber shop.
And it was ok.
Anyway, this morning I went to the barber shop at Fairfield Shopping Centre. There was a sprout of hair on my head at a gawky angle – so I made a special trip (it is 5 mins away).
As I approach the barber shop, I see that the gate is still mostly across their shop, and the manager and apprentice are standing around chatting. “Great!” I think – I will be first. As I reach the gate the managers asks “Can I help you?”. I say “Yes, hi, I am in a hurry and would like a trim.”
“No, we are not open. We open at 9, and it is only 5 to 9. Can you come back in 5 minutes?”
“Um, No. I won’t. Good bye.” And left to walk to the hairdresser at the other end of the shopping centre.
Now this particular barber shop has cut my hair before twice. It takes only minutes to cut my hair, and on the previous occasion the junior employee did the job, and the time before that the manager did it.
Pretty riveting story, ay?
Now, about YOUR business. How certain are you that your team is not spilling clients out of your revenue by doing similar things? How is your standard greeting quality when your clients or customers visit? Do you have a PROCESS that brings a new customer into your herd by systematically encouraging the first three purchases?
Do you know the average lifetime value of your customers? Do you know that number for each of the categories of your business? If a barber shop customer is worth $700 over two years, how much is he worth if you keep him for four years? Or if you bribe him to bring his teenage son?
If you have not made these fundamental calculations – you are flying blind with your strategy. You cannot effectively budget for marketing. You are relying on intuition and luck. That can be ok for a while, but over time MATHS is what drives your profits. And the eventual value of your business when sold. (most businesses do not “sell”, they close.)
Townsville based James Hooper: The term “rainmaker” is becoming regularly used in business context as someone whose role is to ‘make rain’ or ‘create growth’ in your business. In some senses the term ‘business coach’ is limiting as it is primarily about optimizing the effectiveness of the owner/operator. Sometimes the leverage is in the business systems rather than in the operator – and focus on that produces the preferred outcomes.
Business is a game, a puzzle, a tool to get you what you want in life. Call me for a second opinion (other than yours) on how to make your business give you what you want it to.