Salon owners wear lots of hats…
Salon owners wear lots of hats… and one of them is the hat of the financial controller.
It’s not usually their favourite hat. That accolade is reserved for the training hat, or the latest collection hat, or the marketing or salon design hat…
As an industry, we are drawn to the creative areas of business more than the hat we wear for anything to do with numbers and financial systems.
Focusing on the commercial…
Focusing on the commercial side of the business is essential because if you don’t have that under control then the chance of the business lasting is unlikely…
Focusing on the money may for some people be uncomfortable but getting a balance between ‘the commercial success’ and the ‘people and creative side’ of the business is imperative.
Too often owners and managers get carried away with the decor, the shows and competitions, the photo shoots, and they forget that a viable company must show a profit, a return on investment over and above what the owners get paid.
Just having a great vision for the business, providing a nice working environment for the team and having products and services that people like does not mean that the salon is a long term sustainable business and I assume that that is what you want?
It may be that the business is just a ‘lifestyle business’. A business that provides the owner with a salary and a lifestyle, but eventually it will require more funds to reinvest and stay competitive and if the business isn’t making a profit where will that come from?
Salon owners who look at hairdressing or any business as just a way to make a quick buck will rarely survive because they care too little about quality, they are in too much of a hurry, and over time, they will lose the support of clients, staff and suppliers.
There needs to be a balance between a business that generates a real profit and a business that serves the needs of clients and satisfies the reasonable expectations of staff.
Finding that balance is the sweet spot but if you are the owner that’s your role.
Thank you for watching…
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