Glow Pros Academy

Glow Pros Academy

Mini Module VII

What an hour of you is worth

The Glow Edit. Business education for the aesthetic and wellness field, written from a working clinic.

Module specification

Framework
Theory of Constraints, Eliyahu Goldratt, 1984
Field
Operations management
Duration
10 minutes reading, 20 minutes practical
Prerequisites
Mini Module II is useful
Strand
Pillar II, Profitability
Benchmark
National occupational standards for enterprise

On completion you will be able to

  1. Identify the single constraint limiting what your business can earn
  2. Calculate your true earnings per working hour, including unpaid time
  3. Test whether a proposed change acts on the constraint or somewhere else
In one line

There is exactly one thing limiting what this business can earn. Almost everything you are being encouraged to improve is not it.

Section A  ·  The situation

Working harder at the wrong end

You have improved the Instagram. You have tidied the booking system. You did a course on a new treatment and it is good, and you offer it now, and the month looks much like the last one.

This is not a failure of effort. It is a failure of aim.

A business, like any system, has one thing that limits its output at any given time. Improve anything else and nothing changes, because the limit is still where it was.

In a treatment business the limit is almost always the same thing, and it is not marketing.

Section B  ·  The theory

One constraint at a time

In 1984 Eliyahu Goldratt set out the Theory of Constraints. Its central claim is that every system is limited by a single bottleneck, and that improvements made anywhere other than the bottleneck produce no gain at all.

The instruction that follows is unusually blunt for management theory. Find the constraint. Get everything possible out of it before spending money. Subordinate everything else to it. Only then consider enlarging it.

For a solo practitioner the constraint is hours in which you can be treating someone. Not demand. Not skill. Not visibility. Hours.

Three things people improve instead

IDemandMore enquiries into a diary that is already full changes nothing except how often you say no.
IIEfficiencyFaster admin is real, but it releases Manager hours, not treatment hours. Useful, not the constraint.
IIIThe constraintWhat each occupied hour earns, and how many of them there genuinely are. The only lever that moves the number.

Which produces an awkward conclusion. If the constraint is hours, then more clients cannot be the answer past a certain point, and the only remaining levers are what each hour earns and how many hours are genuinely bookable.

That is why pricing keeps appearing in this newsletter. It is not a preoccupation. It is the only lever that acts directly on the constraint.

A working week, as it actually divides

TreatingUnpaid, businessAdmin
The only hours that earnMarketing, ordering, planningNotes, messages, rebooking

The second calculation in this module is the one that stings. Take everything the business paid you last month and divide it by every hour you actually gave it, including the evenings.

That is your true hourly figure, and it is usually about half what people assume.

You cannot make more hours. You can only decide what each one is worth and how many of them are real.

Before you go on

  1. If a client asked for an appointment at your busiest time next week, could you fit her in? Your answer tells you whether hours are actually the constraint.
  2. How many hours last month did you work without being paid for them, honestly?
  3. What is the last improvement you made, and which of the three columns above did it act on?

Section C  ·  Mini audit

Practical

The True Hourly Audit

Include everything. Evening admin, Sunday planning, the messages answered at traffic lights. If you exclude them the number will be comforting and useless.

LineFigure 
1. What the business paid you last monthDrawings, wages, whatever you actually took£
2. Hours spent treating clientsChair or couch time onlyhrs
3. Hours spent on everything elseAdmin, marketing, ordering, messages, planninghrs
4. Total hours given to the businessLine 2 plus line 3hrs
5. True hourly figureLine 1 divided by line 4£
6. Apparent hourly figureLine 1 divided by line 2£
Line 6 minus line 5£
Below minimum wageMore common than the industry admits. It is a structural finding, not a personal one, and it responds to price and to bookable hours rather than to working harder.
Modest but positiveThe business pays you a wage. The question now is which hours in line 3 could be removed, priced in, or given to somebody else.
Comfortably aboveThe constraint is being used well. The next gain comes from enlarging it, which means the first hire, or from raising what each hour earns.

Section D  ·  The reveal

What you have just done

That was a constraint analysis with a true hourly yield calculation attached. You identified the bottleneck, measured throughput against it, and distinguished apparent from actual earnings per hour.

It maps to planning the operations for your business, and to setting and monitoring financial targets. Both are national occupational standards for enterprise.

The theory behind it is taught on operations management degrees. The calculation takes twenty minutes.

Section E  ·  Your action step

Twenty minutes this fortnight. One hour, reclaimed or repriced.

Look at line 3 and find one recurring block of unpaid time. Then do one of three things with it.

Remove it. Some of it is habit rather than necessity.

Price it in. If every appointment carries fifteen minutes of notes, that time belongs in the price rather than in your evening.

Give it away. This is the first hire question, and it is a real one once the number in line 5 is in front of you.

Type it here, or print the page and write it by hand.

Mini Module VII at a glance

  • Every system has one constraint, and improving anything else changes nothing
  • For a solo practitioner the constraint is bookable hours
  • Price and bookable hours are the only levers acting on it
  • True hourly earnings count every hour given, not just treatment time
  • The gap between apparent and true is usually about half

From the deck

Pillar IIProfitability

Card

Theory of Constraints

· · ·

Every system is limited by one thing. Improvements made anywhere else produce nothing.

Operations & Financial Control

Every framework in the Glow Mastery Programme has a card. More than a hundred of them, one for each thing you learn.

The reverse carries the origin, the theory and the standards it maps to. That side comes with the deck, which arrives when you enrol.

That is seven you have earned.

Reply and tell me your true hourly figure, and how far it sat from what you expected.

I read every reply myself, and it decides what gets taught next.

Amelia x

Founder, Glow Pros Academy

The Glow Edit is the fortnightly mini module from Glow Pros Academy, the business education for practitioners across the aesthetic and wellness field. Written from a working clinic, not a coaching desk. This page prints on two sides of A4 if you would rather work on paper.