In the UK we are bombarded with never-ending talk about BREXIT. Yesterday I was listening to a TV debate about ‘productivity’ and how the UK needs to become more productive in order to compete once outside of the EU.
Now, bear with me because there is an obvious analogy with salons.
Anyway, in this instance they were talking about the car industry, they used the example that if it takes us [in the UK] 5 days to build a car, and it takes the Germans and Italians 4 days to build the same car, then the UK is less productive.
That will obviously have an impact on lots of things like, ‘what country the manufacturer chooses to build the factory, the amount the staff get paid, the cost of the car and the ability of the owners to reinvest into the business and ultimately impact on the profitability for the investors.’
Working out your productivity…
You work out the productivity rate by measuring ‘How much you make’ ÷ ‘How long it takes you to make it’ = ‘Productivity.’
So for example, if a UK manufacturer makes 100 cars ÷ 5 days it took to make them = Productivity of 20 cars per day
Whereas a German or Italian manufacturer makes 100 cars ÷ 4 days it took to make them = Productivity of 25 cars per day
If you owned the factory or were an investor you would rather it was the one making 25 cars a day.
Productivity and salons…
Obviously, that got me thinking about productivity and the salon business. I see salons where the stylists average doing 20 clients a week and another salon where the stylists average 30 clients a week.
So, assuming that they are both working a 5 day week, at an average of 20 clients a week that’s a productivity rate of 4 clients a day. Whereas if they are averaging 30 clients a week that’s a productivity rate of 6 clients a day.
That will then impact on the amount the stylist gets paid, the ability of the salon owner to reinvest for growth and the profitability for the salon owner.
So whether you are talking about an automobile manufacturer or a hair salon, if you want a business that competes, a business that can pay their people well, a business that can reinvest for growth and a business that makes a profit you need to increase the productivity of your systems, your people and yourself.
If you need help with that and are interested in 1-1 business coaching email me email@example.com and I can organise a complimentary 15 -20-minute conversation to discuss whether coaching is right for you.