Grow a Business in the Hospitality Industry Tips

 Grow a Business in the Hospitality Industry Tips

 Entanglement Jounce spoken " If you can ' t interpret the scoreboard, you don ' t know the score. If you don ' t know the score, you can ' t broadcast the winners from the losers. "

 This is then sure-enough, but in my doing due to a hospitality business consultant, model few small businesses that I come across measure their progress, and usually those that do, don ' t analyse their numbers in any journey or use them to help when it comes to making decisions.

 To compensation with your business animus and business advance, you should put on measuring the ' health ' of your business in 3 antithetic areas - finance, customer and crew.

 In other words, how is your business performing in each of these areas? e. g.

 Is your business profitable?
 How does performance compare inveigh last year?
 What do your customers suspect about the service you are providing?
 Is it what they necessity?
 How engaged are your squad?
 How is your retention of staff?

 FINANCE

 If you are tracking numbers, which numbers are you tracking? Are you measuring both KPI ' s ( explanation performance indicators ) whereas wholesome thanks to critical drivers? When it comes to growing businesses, the clue here is to recognise the contrariness between these two things.

 KPI ' s are telling you what has gone before, or in other words how effective your activities have been. Critical drivers proclaim you location you are john hancock.

 Lease me put this into the purport of my business - my P&L ( profit and loss ) will program me what my sales, monetary worth and profit were for any prone duration. Critical drivers for my business are the unit of consultations I have scheduled at any one time, the character of 121 meetings I have up because a finish of networking and the unit of talks I have planned in that I am preparing to give.

 Critical drivers are the activities or things that should body in hangout that bring in extra sales. In the hospitality business these might be things such as number of joint ventures with neighbouring businesses, number of networking events held in your venue, and retention of staff.

 CUSTOMER

 Interestingly the reason why many hospitality and small businesses in general fail, is due to the fact that the business owner gives customers what they think they need rather than want. It ' s a very common mistake, one that I have also made in the past.

 The answer is simple, send a survey to your prospective customers to find out what they want and to existing customers to find out what they want and how closely you are delivering against this. The basic principle here is people buy what they want, which is not necessarily what they need!

 Back to my original point, have metrics for the ' customer ' area. Measure the service you are providing, how much of your business is repeat custom, and how many extras you manage to up - sell to start with.

 TEAM

 And finally the team. I remember when I was an Area Manager saying to my team, that people weren ' t like the coffee machine or the dishwasher, you can ' t just call someone out to fix them!

 You really do have to be a jack of all trades in this area, sometimes disciplinarian, counsellor, visionary, leader, and friend. It is very much down to how strong your people skills are, that determines how successful your business will be.

 Suggested metrics in this area would be team retention, performance, and engagement. In hospitality I have also found that it is very important to have a visible career path which encourages staff to stay with you, so they can see that there is a way for them to grow and have more responsibility.

 As a rough rule of thumb if vacancies are filled 60 % internally and 40 % externally, this seems to be about the right balance, providing a mix of external ' new blood ' whilst benefiting from the knowledge and experience of the organisation that the internals have.

 In summary, and as Peter Drucker once said " What gets measured, gets done. "