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The hospitality sector is one of the most competitive industries in the world. Some businesses have greater financial backing, greater resources and more effective marketing – however, this sets the stage for an arena of new and exciting trends for the customer.
How much money you make is irrelevant if you aren’t comparing it to the size, locality and purpose of your business. You transpose your turnover against the environmental factors and resources that make up your business. Then, it becomes apparent what your turnover is really reflecting.
Your location
How you maximise and use the proximity of your location with respect to other places and buildings around you helps to shed some light on whether you’re making full use of your location’s potential. There’s an opportunity if you’re close to or surrounded by businesses similar to yours, that all venues can feed off each other: when ones busy, the other can pick up the overflow and vice versa. Maybe you’re situated within a business precinct where the amount of foot traffic is high, meaning people pop into your establishment based on your proximity to their place of work. On the other hand, it may not be buildings that work in your favour – but parks, arenas or sports fields. Your physical environment can help you maximise your profits by generating foot traffic past your place of business.
The size of your business
Whether your business is big or small, you need to be spending money relevant to the size of your resources, and subsequently adjusting your desired turnover figures to an attainable goal. Don’t be caught over spending on wages and your variable costs. Keep stock and inventory levels to an appropriate amount. Doing this will help to ensure that your turnover figures aren’t going to be spent on costs that have been miscalculated due to lack of preparation and discipline in keeping these relative to the size of your business.
Whether your business is big or small, you need to be spending money relevant to the size of your resources, and subsequently adjusting your desired turnover figures to an attainable goal. Don’t be caught over spending on wages and your variable costs. Keep stock and inventory levels to an appropriate amount. Doing this will help to ensure that your turnover figures aren’t going to be spent on costs that have been miscalculated due to lack of preparation and discipline in keeping these relative to the size of your business.
Your employee management
This is where our area of expertise comes in. Employee costs are quite simple – and too often we see people getting them wrong. It’s quite simple. Get these right and you allow yourself the freedom of not cutting into your turnover each week. Any sensible business owner or director wants to reap as many rewards as possible. Why sabotage them? Employee costs are the easiest and most manageable of all your business budgets. Keep these tight and never again cut into your hard earned profit…..ever.
So, what does your turnover reveal about your hospitality business?