FORD’S Thoughts

Global business & beauty education expert, KIM FORD, shares news, views & observations from the international nail circuit

ABOUT KIM FORD

Kim Ford has worked in the beauty and education sectors for over three decades, in more than 40 countries. She has honed her skills in beauty, spa, sports, nails, holistic therapy and aesthetics, in private and public education establishments, spas, salons and retail businesses.

Kim has extensive experience as an international examination officer for awarding organisations, and has held the titles of chairman of BABTAC and CIBTAC and vice president of CIDESCO GB. An education consultant for CIDESCO International, she sits on a number of industry boards globally as a director or trustee, and has won awards for education and business in the UK and internationally.

As owner of Beauty Enterprise Solutions, Consultancy & Training, Kim supports industry education establishments in gaining accreditation or endorsement. She strives to raise industry standards and help beauty professionals reach their education and career goals.

OUT & ABOUT

Working with London College of Excellence owner & principal, Talha Fiaz, on Ofqual qualification training.

With Scratch’s Rebecca and Helena at a workshop run by safety compliance experts, Hygenisys, where I spoke about the importance of qualifications.

Connect with Kim:

/kim.ford.3114

@kimfordexpert

/kimcaford

Hello nail superstars! How often, if ever, have you checked whether your investments are making a difference to your business? Are you losing money, or are you making an excellent profit? Do you conduct a risk assessment before each business purchase?

You may ask: what is a return on investment, or ROI? As an example, imagine you purchased a pedicure chair costing £1,000. How many clients have you gained by having this chair? Have you found that existing clients have upgraded their treatments to include the chair? How much did it cost to have fitted, and how much water and electricity does it use? Working out the return on investment includes assessing the costs involved with the chair, how many clients use it, its occupation time and how long it will take you to make your money back.

How to calculate the return on a business investment

There are several factors to consider before making a business investment, which will help determine its return. It is important to calculate the initial investment accurately, which includes the purchase price and any additional costs, such as taxes, fees and renovations.

It is also important to carefully estimate the expected return on your investment, and there are a few steps to follow. Think about the initial investment. This will involve projecting future cash flows and considering factors such as sales revenue, operating expenses and potential risks. Also ponder the time period in which you would expect to see a return on the investment. Next, calculate your net profit, which is your total revenue minus expenses. Then divide the net profit by the initial investment and multiply by 100, to calculate the ROI percentage.

This will help you to measure the financial performance of the investment, assess its viability and consider your growth strategies, which should make it clear whether to invest or not.

What to do if you have a poor ROI

If faced with a poor return on a business investment, there are some steps you can take to deal with the situation. The first is to conduct a thorough analysis of the areas contributing to the poor return. This involves examining market conditions, competition and internal operations.

Once you know the causes, you need to make strategic adjustments to improve performance. These may involve reallocating resources, implementing new marketing strategies and seeking expert guidance on potential solutions. Ultimately, perseverance, adaptability and a proactive approach are key in turning around a poor return on a business investment.

What to do if you have a positive ROI

Return on investment reflects the financial health and success of your business. So, if you have an excellent ROI, this shows that your business is generating profits. It can enhance your business’ reputation and credibility, making it more attractive to customers, suppliers and employees.

Now, carefully consider your next steps. Think about the reasons behind the success of your investment. This will help you to identify the strategies that aided you in the positive outcome, and copy these in future investments. Reflect on your goals and objectives, and consult with financial experts or advisors who can provide valuable insights on how to effectively manage and grow your business. This means you can ensure continued success.

Remember there is no such thing as failing – it is the first attempt in learning!

Kim