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Metric #3 – Estimates vs Actuals
You’ve got your plan in place. You’ve checked the weather, looked at the odds of the local team smashing the visitors and even dropped into your local competitors and checked their latest offering. In fact you’ve never been more convinced that an outstanding weekend of massive fiscal success lies ahead.
Yet come Monday the anticipation of triumph has waned. The turnover figures bring you back to earth with a shuddering thump. What went wrong? After all that planning effort why are we out of pocket by so much?
Estimating turnover is one of the most difficult things to master when running a Hospitality business. In our last post we discussed some of the many things to consider when estimating your own numbers. Experience has shown us that, even with the best possible laid plans, sometimes it just goes completely wrong. Why? Because many of the contributing factors are completely beyond your control.
The trick to mitigating these situations is simple; Good old fashion diligence.
As a hospitality operator you must measure and understand what caused the difference. Knowing what went wrong and why will only serve you well for future planning. Failure to measure and acknowledge why your plans went awry will only lay the groundwork for further future failures and financial difficulty.
Estimate. Execute. Measure. Repeat.
If you missed out on reading Metrics #1 and #2, pop on over to the business section of the blog now and take a read.