Announcement

Collapse
No announcement yet.

Client numbers

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Client numbers

    I am working on my business plan for a new shop. I have a shop already but a new strip mall has the perfect location, parking and a major street and since my parents sold the land I am getting a great deal on rent (long story). But I have to show them a business plan and my recent financials. What do you suggest in putting my numbers in the plan?

  • #2
    Originally posted by aprettypaw2 View Post
    I am working on my business plan for a new shop. I have a shop already but a new strip mall has the perfect location, parking and a major street and since my parents sold the land I am getting a great deal on rent (long story). But I have to show them a business plan and my recent financials. What do you suggest in putting my numbers in the plan?
    Are you asking how to write up a business plan??

    Sent from my Pixel XL using Tapatalk

    Comment


    • #3
      I just wrote this.
      http://groomwise.typepad.com/pet_fir...ness-plan.html
      Certified Master Pet Tech Pet CPR, First Aid and Care Instructor
      "Compassion will cure more sins than condemnation." Henry Ward Beecher US Congregational Minister 1813-1887

      Comment


      • #4
        Originally posted by aprettypaw2 View Post
        I am working on my business plan for a new shop. I have a shop already but a new strip mall has the perfect location, parking and a major street and since my parents sold the land I am getting a great deal on rent (long story). But I have to show them a business plan and my recent financials. What do you suggest in putting my numbers in the plan?
        There are several ways to calculate client base actual numbers for existing businesses, especially those planning to sell. For business planning we look at the present, and the future up to 5 years out. Again, there are basic and advanced formulas, the more advanced the less guessing. But basic is fine to start with and as you said your shop will be new.

        Step One: What is your service capability? Very important, be realistic. Let's say this is a one person shop, you. How many a day do you plan to groom? Let's say you plan to do ON AVERAGE 8 a day which is busy. Some days you might do 10 with some easier bath dogs like doxies, beagles. Some days it might be 7 with SPOOs or Pyrennes. So 8 is average.

        Step Two: Days of operation. How many days a week will you be open. Let's say 5.

        Step Three: Total services per month. Average days open per month over a year is 21 days a month for a 5 day a week operation. Multiply 21 times the 8 avg. daily services. That's 168 services per month.

        Step Four: Calculate services per year. 12 months times 168 services per month. That's 2,016 grooming services per year.

        Step Five: You don't need this step to figure client base, but multiply the 2,016 times your projected average grooming service fee. That varies wildly by region. For now let's say $45. Remember you may have $75 or more grooms, but you might have some $25 baths, so we look to an average, I always say use the avg. fee for a Min Poo full groom. Steps 1 to 4 are saying you should gross about $91,000 a year from grooming services with just yourself grooming.

        Step Six: This is KEY. Appointment frequency is everything in grooming. The less frequent your customers come in, the more customers you need to make that $91,000. Remember that. A sharp grooming business owner knows appointment frequency is everything and bonding customers is everything or you will grow slower and need up to double the customers to make the same money as another groomer who gets most in appointment scheduling programs. We ALWAYS got 80% or more, and I am NOT talking standing appointment, but that's another story.

        Onward with Step Six. Be conservative. How often will most of your customers come in for grooms? (Our advanced formulas break this down, we are doing basic). Well lots of groomers will say 4 to 6 weeks, but we have to account that in a shop you are going to range, some will be 8 to 12 weeks. Remember, we want to be CONSERVATIVE, no "blue sky predictions" which are more hopeful than realistic. Many will be 4 to 6 weeks, but let's say 8 weeks to be conservative and account for those that are longer.

        Step Seven: So now we know the avg appointment frequency. How many weeks are in a year. 52 of course. So divide 52 weeks by 8 weeks and the result is 6.5 grooming appointments per year for the AVERAGE customer conservatively.

        Step Eight: We are getting close. Look at Step Four's answer. 2,016 total grooming appts you can do in one year, right? Okay, so we have to divide those up allotting them to your client base filling those appointments. Simple. Divide 2,016 by 6.5. The answer is 310.

        In plain English. Your client base goal is 310. They would average booking appointments 6.5 times a year. As a result they would demand 2,016 appointments a year, the max you can do alone.

        Again, consider. Experts (like my mother) created ingenious appointment scheduling programs OTHER than standing appointments, and today few customers do that but some groomers find a way. She lowered the average appointment frequency to 5 weeks for thousands of customers, remember AVERAGE, some were still 8 to 10 weeks. If we could lower your appointment frequency from 8 weeks to 5 weeks, how would your client base change? Well maybe it is rainbows and smiles.......

        OK... 52 weeks divided by 5 weeks average is 10.4 grooming appointments per year. Divide 2,016 appointments by 10.4 and the result is a client base goal of 194.

        194 is far less than the 310 client base goal we first calculated. It can take MONTHS or more to get 310 customers coming in regularly compared to 194. This explains why my mother devised a management system and trained groomers and reception in many easy ways using alternatives to standing appointment systems to bond customers and help regulate their frequencies. They loved it too, nothing pushy at all. As she often said in lectures and consultants life as a groomer gets easier from your CUSTOMER SERVICE PROGRAM. Besides grooming I worked PT on the counter and had no issues getting people to sign up for alternatives 80% of the time for a decade as a youth working there. We had training how to do it. THIS IS THE REASON. These numbers show it. This is why some groomers write business plans and achieve Year 3 goals in Year 1, no kidding, I have their plans and books. It is the customer service program. This is a management issue, not a grooming issue. Working alone puts a big load on one person shops to carry all the extra hats beyond grooming demand.

        If you add employees, you have to increase your numbers to being able to do more grooms per year. You need recalc every time you hire a bather or groomer (when the bather is not only bathing your grooming dogs but also bath only pet appointments not counted in your grooms.

        There are more advanced formulas, but you shouldn't need them at this point for a plan. What are they though? Percentage of customers that have 2 or more pets is one of them. Avg service fees and grooms broken down by full grooms versus bath only. Yep it gets more complicated yet often more accurate if you don't sail in blue sky predicting.

        Hope this helps.

        Comment


        • #5
          Double checking my numbers LOL

          Comment


          • #6
            Your mama taught you well!!!! LOL

            Comment


            • #7
              Thank you for the breakdown

              Comment


              • #8
                Wow, Stephan you know your numbers!

                Comment


                • #9
                  Wow I really understand this now. I do plan on adding a bather by the second year and with the great rent we can afford the space.

                  Comment


                  • #10
                    Wow is right, this is so helpful. Maybe I will feel like I earned a diploma when I finish my plan!

                    Comment


                    • #11
                      Originally posted by Stephen View Post
                      There are several ways to calculate client base actual numbers for existing businesses, especially those planning to sell. For business planning we look at the present, and the future up to 5 years out. Again, there are basic and advanced formulas, the more advanced the less guessing. But basic is fine to start with and as you said your shop will be new.

                      Step One: What is your service capability? Very important, be realistic. Let's say this is a one person shop, you. How many a day do you plan to groom? Let's say you plan to do ON AVERAGE 8 a day which is busy. Some days you might do 10 with some easier bath dogs like doxies, beagles. Some days it might be 7 with SPOOs or Pyrennes. So 8 is average.

                      Step Two: Days of operation. How many days a week will you be open. Let's say 5.

                      Step Three: Total services per month. Average days open per month over a year is 21 days a month for a 5 day a week operation. Multiply 21 times the 8 avg. daily services. That's 168 services per month.

                      Step Four: Calculate services per year. 12 months times 168 services per month. That's 2,016 grooming services per year.

                      Step Five: You don't need this step to figure client base, but multiply the 2,016 times your projected average grooming service fee. That varies wildly by region. For now let's say $45. Remember you may have $75 or more grooms, but you might have some $25 baths, so we look to an average, I always say use the avg. fee for a Min Poo full groom. Steps 1 to 4 are saying you should gross about $91,000 a year from grooming services with just yourself grooming.

                      Step Six: This is KEY. Appointment frequency is everything in grooming. The less frequent your customers come in, the more customers you need to make that $91,000. Remember that. A sharp grooming business owner knows appointment frequency is everything and bonding customers is everything or you will grow slower and need up to double the customers to make the same money as another groomer who gets most in appointment scheduling programs. We ALWAYS got 80% or more, and I am NOT talking standing appointment, but that's another story.

                      Onward with Step Six. Be conservative. How often will most of your customers come in for grooms? (Our advanced formulas break this down, we are doing basic). Well lots of groomers will say 4 to 6 weeks, but we have to account that in a shop you are going to range, some will be 8 to 12 weeks. Remember, we want to be CONSERVATIVE, no "blue sky predictions" which are more hopeful than realistic. Many will be 4 to 6 weeks, but let's say 8 weeks to be conservative and account for those that are longer.

                      Step Seven: So now we know the avg appointment frequency. How many weeks are in a year. 52 of course. So divide 52 weeks by 8 weeks and the result is 6.5 grooming appointments per year for the AVERAGE customer conservatively.

                      Step Eight: We are getting close. Look at Step Four's answer. 2,016 total grooming appts you can do in one year, right? Okay, so we have to divide those up allotting them to your client base filling those appointments. Simple. Divide 2,016 by 6.5. The answer is 310.

                      In plain English. Your client base goal is 310. They would average booking appointments 6.5 times a year. As a result they would demand 2,016 appointments a year, the max you can do alone.

                      Again, consider. Experts (like my mother) created ingenious appointment scheduling programs OTHER than standing appointments, and today few customers do that but some groomers find a way. She lowered the average appointment frequency to 5 weeks for thousands of customers, remember AVERAGE, some were still 8 to 10 weeks. If we could lower your appointment frequency from 8 weeks to 5 weeks, how would your client base change? Well maybe it is rainbows and smiles.......

                      OK... 52 weeks divided by 5 weeks average is 10.4 grooming appointments per year. Divide 2,016 appointments by 10.4 and the result is a client base goal of 194.

                      194 is far less than the 310 client base goal we first calculated. It can take MONTHS or more to get 310 customers coming in regularly compared to 194. This explains why my mother devised a management system and trained groomers and reception in many easy ways using alternatives to standing appointment systems to bond customers and help regulate their frequencies. They loved it too, nothing pushy at all. As she often said in lectures and consultants life as a groomer gets easier from your CUSTOMER SERVICE PROGRAM. Besides grooming I worked PT on the counter and had no issues getting people to sign up for alternatives 80% of the time for a decade as a youth working there. We had training how to do it. THIS IS THE REASON. These numbers show it. This is why some groomers write business plans and achieve Year 3 goals in Year 1, no kidding, I have their plans and books. It is the customer service program. This is a management issue, not a grooming issue. Working alone puts a big load on one person shops to carry all the extra hats beyond grooming demand.

                      If you add employees, you have to increase your numbers to being able to do more grooms per year. You need recalc every time you hire a bather or groomer (when the bather is not only bathing your grooming dogs but also bath only pet appointments not counted in your grooms.

                      There are more advanced formulas, but you shouldn't need them at this point for a plan. What are they though? Percentage of customers that have 2 or more pets is one of them. Avg service fees and grooms broken down by full grooms versus bath only. Yep it gets more complicated yet often more accurate if you don't sail in blue sky predicting.

                      Hope this helps.
                      Awesome, got it.

                      Comment


                      • #12
                        I am writing a plan for a 2nd shop and almost done. I put my client numbers for the existing shop in one plan, and planning the growth of the 2nd shop fairly consistent but conservatively based on what it took to grow the original. Love the projection sheets, so easy to work with.

                        Comment

                        Working...
                        X