Lesson: How To Make Money in This Business 2.0

26 April 2012

This is a continuation of my previous post: How To Make Money in This Business.

Last post, I promised to go deeper.

First and foremost, let's look further at these goals.


One thing that I like to look at is the overall growth planned.  By how much will the business grow by 2015?

Well, given this chart, I hope to grow my business 300% by 2015.  I think that's pretty darn good.  Almost APPLE like.  Wouldn't you say.

Knowing where you are going is important.  When you know that your goal is 300%, you have a target to aim for.

Now, planning for growth is another subject matter that I couldn't talk about in just one post so let's table that.

Back to the numbers.


Now that SCFC has set her goal, SCFC can break down the numbers to see what it all means. Let's look further into 2012 and let's see how we are going to get that additional $200 increase in the average sales per wedding.



For example: If in 2012, SCFC hopes to do an average of $200 more per wedding, how does one go about doing that?

First and foremost, look at the incremental increase.

It's just $200.  Seriiously!

Now ask yourself

What is $200 in flowers?

Here is what $200 might look like in flowers.
5 more cocktail arrangements at $40 a piece = 5 x $40 = $200

 or

2 focal arrangements for escort card table and welcome table at $100 a piece = 2 x $100 = $200 

or

Averaging $95 a centerpiece versus averaging $85 a centerpiece. $10 more dollars on 20 centerpieces = $200

If you know what $200 looks like, it's not intimating anymore.   Don't you think that once you breakdown the amount, it shouldn't be too hard?  You don't have to be an aggressive floral designer.  Adding a few simple arrangements might enhance the look of the wedding.  If you never tried adding cocktail arrangements, look at how this might make your clients' wedding look better or more tailored and designed.  Ask yourself, would a wedding decor look better with a few arrangements on cocktail rounds?  Sure.  Right?

Or how would $10 more mean to a centerpiece? Does that mean your client can have a few more flowers?  Would it mean that you had better vases?

Think of why it would help your client's event.


One piece of advice, when you know your results and you can project new goals, isn't it so easy to see how small incremental increases can effect the end result?  Remember, the numbers might be daunting at first, but break it down and realize that you can do it.

And ---- You can do it within reason.

Bottom line:  Start small, grow incremental. Stay focused. 

This is just part one of many other lessons on How to Make Money in This Business which I hope to keep writing.   Please feel free to comment and tell me how I can help you grow your bottom line.



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2 comments:

Klassy Kreations said...

Another excellent post Nancy! I think most of us wonder if it is possible to make money in floral design business despite the fact that we are passionate about the business. The fact remains we still have bills that needs to be paid. I like your example of the steady increase income with each goal[rather than being too agressive with the numbers] and more importantly the break down of the increase into a manageable number and examples of how we can make recommendations to our clients. This is very helpful especially for those of us that sometimes struggle with sales. Thank you for a wonderful post. Looking forward to seeing more on this topic. Could you possibly write a post about learning how selling to the brides and other vendors?
Adizat

Denita said...

Thanks for another great and helpful post.

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