ASSESS | DESIGN | EVALUATE | REVIEW
Our approach is not unique, it is however thorough, and is intended to empower the owner with the tools required to repeat the ASSESS | DESIGN | EVALUATE | REVIEW process as often as they please.
We have found that owner operated establishments generally follow a particular path; the owner has a particular interest or skill set, and focuses on this area of interest. Now, this can be anything from a passion for food to an obsession for numbers. As for the rest of the key performance areas in their business, one phrase springs to mind – they wing it.
GENERATE REVENUE AND THEN CONTAIN COSTS
Far be it for us to teach you basic business principles, but it is generally accepted that generating revenue is possibly the least enjoyable, most difficult undertaking in your business. Followed by another arduous task which is containing costs. It is a combination of these two functions that yield your profit or loss.
You may well have an optimal performance indicator number in mind, and whatever your performance matrix, the last 25% is always the hardest to achieve, this could be making a 25% difference in your;
- Achieved rate (ARR or ABR),
- Gross profit,
- Maintenance costs,
- Customer reach,
- Reservation enquiries,
- Enquiries vs confirmed bookings,
and the list goes on. But these are all generally easy to measure, and therefore receive much attention.
WHAT DO WE DO
Depending on where your product is in its life cycle, we will assist you to;
- Stress test your concept.
- Define your role in your organisation.
- Set realistic performance targets.
- Quantify your human capital.
- Perform a business risk analysis.
MARKETING AND SALES & RESERVATIONS
it is right here that much uncertainty prevails. This is often the highly elastic budget line item, which expands and contracts as more immediate costs or a novel advertising opportunity presents.
Reservations is a relatively easy function, or is it? The answer is no, it is not, at least not if you are sweating each sales opportunity, including future booking potential.
You may have elected to outsource this function, as became fashionable approximately 15 years ago, and if so may well find yourself stuck in a ‘repeat cycle’. Alternatively you have retained the services of an individual / people who are tasked with presenting your brand to the world. There is also a chance that you are sending the odd email, posting an advert, visiting an agent, all while waiting for the bread to rise.
Just how much should you be ‘investing’ in this budget line item, a process which deserves much consideration, even before you contemplate the application of these funds.
In our experience, there seems to be little by way of a strategy, and more of a reaction to information / suggestions / recommendations etc. as presented from anyone who is selling anything.
WHAT DO WE DO
Again depending on where your product is in its life cycle, we will assist you to;
- Define the distinction between marketing and sales & reservations in your organisation.
- Determine your current brand market penetration.
- Determine your market segments.
- Assess your marketing collateral.
- Assess your customer communication style and frequency.
- Define who your customer is.
- Establish your proximity to your customer.
ARE YOU ASKING THE RIGHT QUESTIONS
Someone once said, you don’t know what you don’t know. It is generally about this time that we have been able to provoke some introspection, and we would put it to you that you cannot see the wood for the trees when your head is down and you are concentrating on your business. Not that this is always a bad thing, when you have taken the time to develop a strategy.
WHAT DO WE DO
Having spent considerable time, effort and energy in product conception, development, administrating, managing, and representing hospitality establishments, we have learnt a thing or two.
The most valuable of these lessons has been learning what questions to ask when, and this process is far from over.
SOME INTERESTING READING