“Which Financial Numbers are most Valuable to Monitor in my Medical Spa?”
The most important numbers to monitor are definitely your P&L statement, your profit and loss statement. But that’s not the only one. It really goes beyond that. But most importantly, definitely the P&L is your financial report. If you have a bookkeeper or an accountant or somebody who is managing your financials, they should give you financial reports at the end of each month to see how healthy your business is.
Here is a list of what you need to see and monitor:
- The P&L statement
- Your expenses
- Your checking out balance
- Your cash flow
- Your chart of accounts to make sure everything was allocated in the right place
- Your actual vs. budget year to date and for the month
- Your financial ratios
We just had the Mastermind Meeting last week and that is exactly what we discussed — how to look at your financials and make sure that you have a healthy business.
You must have a budget for your medical spa and spa business. I don’t know why, but most people don’t have that for their business. If you don’t have a budget, you won’t know your targets, or how you’re going to measure your success at the end of the month.
So I would highly recommend you getting a budget if you don’t have one already. Get your hands on the Medi Spa Budget that we have. It is an essential business tool.
We made it very simple for you. You just download the Excel spreadsheet and it’s there for you to create a budget. Then what we do is teach you how to manage your business using the budget. So every month, you should be monitoring your revenue for treatments, your revenue number for retail sales, your product cost, your compensation cost, and your operating cost. Also, of course, your profit line.
So when you’re looking at the whole financial picture and if you’re monitoring all these numbers, you are going to be on track, stay focused, and do everything you can to make sure that you’re reaching your targets and your goals. These are the numbers to definitely monitor.
Now the other thing you should monitor on a daily basis is your Volume per Guest. Now if you’ve been in the InSPAration Management community for a while, you know what that is. If you haven’t, it’s actually a very simple financial measure that you should implement in your business.
To calculate, all you have to do is take your service revenue for a period of time, and then divide it by the number of guests you had in that same period of time. That’s going to give you a volume for guest or revenue per guest. You should figure this out for services, and for retail, to see where you are right now. Then set new targets for your team to reach new goals and new numbers. That is another number you should monitor daily. Every single day you should know where your volume per guest is. So that’s the second thing you should monitor.
The third thing you should monitor is the number of new clients that you have. Because that definitely drives your growth. Then the number of consultations that you actually do and the conversion rate of that consultation. Know the revenue per consultation and the conversion rate of that consultation.
There’s a lot more you should monitor, but at least I wanted to get you started in the right direction. So if you need any help, you can always reach out to us and let us set up a good financial model for you to ensure your success.
Or attend the Leap Ahead seminar and get all these financial tools as part of your seminar.
See what over 100 attendees have said about it.
Hope this was helpful for you! Have a question? Email us at info@InSPArationManagement.com. Until next time, stay inspired!
Learn more at: InSPArationManagement.com or call 386-226-2550.