Money

Episode 152

2 August 2022

The sustainability of a business is dependent on profit, yet many businesses operate on a tiny profit margin. Ultimately, that is why only a very small percentage of small businesses reach their 10th birthday. 

Most business failures can be attributed to a lack of financial awareness and understanding of how to manage finances. Too many salon owners operate on the basis of “work hard, pay my bills, and what’s left over is profit.”

However, that way of thinking is fundamentally flawed because, in case you haven’t noticed, there is usually very little left over!

So instead of the traditional accounting method of ‘Sales minus expenses equals profit,’ we should be turning this on its head and running businesses on the ‘Profit First’ principle; ‘Sales minus profit equals expenses.’

If you’re confused, stick around because my guest on today’s podcast is Ronit Enos, Author of the book ‘Profit First for Salons.’

In today’s podcast, we discuss:

  • Profit margins in salons today
  • The steps to increasing profitability
  • The ‘Profit First for Salons’ book…

And lots more!

 

In this Episode:

[03:55] Ronit shares what drew her to the salon industry in Israel at the age of 16.

[08:58] Why Ronit decided to open a salon in the United States, and the rollercoaster of highs and lows that followed.

[17:32] The final triggers that motivated Ronit to transform her life.

[22:27] What Ronit believes to be the biggest mistake that salon owners make with regard to their finances.

[27:03] The book that changed Ronit’s perspective on money. 

[33:11] Sales minus profit equals expenses; exploring the profit-first approach to business.

[43:22] Ronit explains the process she went through to test out the profit-first approach. 

[48:13] The percentage of small businesses (including salons) that are profitable.

[50:06] Profit margins that salon owners should be aiming for when they adopt a profit-first mindset. 

[54:14] Advice on how to reduce your expenses. 

[57:33] Why time is the most valuable resource. 

[59:46] Ronit shares a personal story which highlights the importance of being independent, as well as some encouraging words to do what you love and surround yourself with people who bring out the best in you.  

 

Thanks so much for joining me this week. If you enjoyed this episode, please leave a review. Ratings and reviews are extremely helpful and greatly appreciated! 

They do matter in the rankings of the show and help other people find my podcast. 

I also love to hear what’s been helpful and what you love about the podcast! Just click here to review, scroll to the bottom, tap “Ratings and Reviews” tap to rate with 5 stars and “Write a Review” and let me know what your favourite part of the podcast is. Thank you for your support!

Special thanks to Ronit for sharing her insights with me for this week’s episode.

Until next time!

Antony

 

Links and Resources:

 

Grow My Salon Business 

Website | Facebook | Instagram

 

Ronit Enos

Website | Instagram | LinkedIn | YouTube 

 

Profit First for Salons

Book

 

Salon Cadence

Website

 

Mike Michalowicz

Website | Profit First | The Toilet Paper Entrepreneur

Episode 149

12 July 2022

How Technology Can Streamline All Your HR Needs with Ian Egerton

As I often say, we are in the ‘people business.’ This means that our primary product is the people who sit in our chairs and the services we offer to make our clients happy. 

But from the salon owners’ perspective, we are also in the ‘people business’ in that because our teams are also our product and our most important asset.

The Human Resource (HR) regulation around employees varies from country to country but no matter where you are listening to this podcast there are almost definitely more complexities around managing your team today than there were 5 years ago. 

And managing those complexities takes time, and time is money. 

My guest on today’s podcast is Ian Egerton, hairdresser, salon owner, and the founder of Loop HR Salon Software. Ian’s software solution makes the HR component not just much easier to manage, but also extremely professional. 

In today’s podcast we will discuss:

  • The role of ‘HR’ in a successful salon
  • The benefits of getting more organised, systemised, and automated when it comes to HR… 

And lots more!

 

In this Episode:

 

[02:39] An overview of Ian’s journey from “Saturday boy” in his local salon to the founder of Loop HR.

[08:55] Ian’s approach to business development.

[11:48] Origins of the name Loop HR. 

[14:25] Experiences that motivated Ian to found Loop HR.

[16:24] An explanation of how Loop HR works. 

[24:01] The 4 pillars of business, and where Loop HR fits in amongst them.

[24:52] Elements that make Loop HR unique.

[25:30] Examples of Loop HR in action.

[30:56] How to use Loop HR. 

[32:33] The benefits that Loop HR provides to salon employees.

[37:52] Ian explains how salon owners can integrate Loop HR into their systems (and the assistance that he offers).

[41:15] The 3 subscription-based packages offered by Loop HR.

[43:10] Ian’s greatest joy.  

 

Thanks so much for joining me this week. If you enjoyed this episode, please leave a review. Ratings and reviews are extremely helpful and greatly appreciated! 

They do matter in the rankings of the show and help other people find my podcast. 

I also love to hear what’s been helpful and what you love about the podcast! Just click here to review, scroll to the bottom, tap “Ratings and Reviews” tap to rate with 5 stars and “Write a Review” and let me know what your favourite part of the podcast is. Thank you for your support!

Special thanks to Ian for sharing his insights with me for this week’s episode. Until next time!

 

Antony

 

Links and Resources:

Grow My Salon Business 

Website | Facebook | Instagram

 

Loop HR

Website – Free Trial

Episode 141

17 May 2022

There are many qualities to take into consideration if you are going to refer to a salon business as being one of the best in the world’

When it comes to great leadership, a fantastic culture, excellent training, a real career path, great team retention, and consistently having 20% plus in retail and having a very profitable business, there are two salons that really stand out to me.

The first one is JUUT Salons, whose owner, David Wagner, I interviewed on a previous episode. If you haven’t checked it out yet, go back and have a listen. 

The second is Van Michael Salon, and today I’m going to be speaking to Van Council, the founder and co-owner of this incredible business which sets the bar at a level that very few salons can come close to! 

In today’s podcast we will discuss:

  • Adapting your business model to the times
  • The importance of standards, training, systems and exceptional service
  • Lessons in leadership… 

And lots more!

 

In this Episode:

 

[04:36] What drew Van to hairdressing, and an overview of his +45 year career in the salon industry (and his experience working in construction).

[13:01] Valuable lessons that Van learnt during the time he spent living in London.

[16:37] Van explains what motivated him to open his own business, Van Michael Salon. 

[20:44] Growth that Van Michael Salon has experienced over the years. 

[25:05] What Van wishes he had known when he co-founded Van Michael Salon.

[27:08] Key elements which have resulted in the very successful expansion of Van Michael Salon. 

[34:48] Examples of the effort that Van puts in to make his salons stand out.

[36:36] Unique features of the Van Michael Salon call centre.

[41:24] Skills that Van drew on when he was working behind the chair, which he is now teaching to his staff. 

[43:31] Van’s thoughts on why Atlanta has a particularly strong salon based business culture in comparison to other areas.

[45:59] How Van branched his business out into Japan, and lessons from there that he has brought back to his American based salons. 

[51:49] Changes that Van is working into his business model.

[59:54] An overview of the two-year training program that Van takes new employees through, and the philosophy that he instils in them during this time.

[1:10:32] The level system at Van Michael Salon.

[1:13:48] Metrics that Van aims to maintain in his salons (and goals that he has for the future).

[1:20:15] Van’s approach to creating a healthy company culture, his biggest strength as a leader, and advice for hiring employees. 

 

Thanks so much for joining me this week. If you enjoyed this episode, please leave a review. Ratings and reviews are extremely helpful and greatly appreciated! 

They do matter in the rankings of the show and help other people find my podcast. 

I also love to hear what’s been helpful and what you love about the podcast! Just click here to review, scroll to the bottom, tap “Ratings and Reviews” tap to rate with 5 stars and “Write a Review” and let me know what your favourite part of the podcast is. Thank you for your support!

Special thanks to Van for sharing his story with me for this week’s episode. Until next time!

Antony

 

Links and Resources:

 

Grow My Salon Business 

Website | Facebook | Instagram

 

Van Michael Salon

Website | Instagram | Twitter | Facebook

 

Van Michael Studio

Instagram

 

Van Council

Instagram

Episode 136

12 April 2022

What Does It Take to Build a Multi Salon Brand Where Everyone Is a Winner? With JUUT Salon Owner David Wagner.

Many people open a salon with a dream to grow it into a big business. Unfortunately, only very few achieve that dream. 

In today’s hairdressing industry there has been a growth in the independent stylist. The salon suite, The booth renter. The freelancer. The business unit of 1. But that business model certainly isn’t for everyone.

You can still build a brand, create a career path, and offer training and benefits and an amazing workplace culture that gives people a place to belong that is bigger than just them.

My guest on today’s podcast has done that and so much more. He is David Wagner; hairstylist, artist, entrepreneur, educator, author and founder and owner of JUUT Salons.

In today’s episode we discuss:

  • What it takes to build a successful salon brand
  • The meaning of being a ‘day maker’
  • Creating salon culture 
  • The Covid impact …

And so much more!

 

In this Episode:

[03:13] David shares an overview of his journey from one of the very first Horst Rechelbacher scholars to the founder and CEO of Juut Salonspa.

[12:45] How David transformed a last-place salon into a first-place salon. 

[15:02] The serendipitous moment that David decided to open his own salon, and the growth that his business experienced in its first 3 years.

[17:05] Why David recommends either having one salon or more than two, and growing through acquisition rather than building from the ground up. 

[23:34] The key to successfully running salons across multiple states. 

[27:24] David shares the experiences which inspired Daymaker Movement, and his book, Life As a Daymaker.

[36:36] What David has learned about the value that the hairdressing professional brings to people’s lives. 

[41:22] How David created (and maintains) a thriving employee-based culture in his salons.  

[55:03] Why David refers to his salons as a collection rather than a chain. 

[57:14] The percentage of revenue that David considers to be a good profit (and why this has gone down over time).

[1:01:11] David’s suggestion for measuring retail sales. 

[1:04:10] An overview of the payment structure at Juut. 

[1:06:05] David shares his thoughts on the evolution of the salon suite model. 

[1:09:57] The impact that the Covid-19 pandemic has had on David’s business.

[1:14:44] What David believes to be his greatest strengths, the lesson that he would like to pass onto future generations of hairstylists, and what he wishes he was better at.

[1:21:43] Traits that David believes make for a good leader.

 

Thanks so much for joining me this week. If you enjoyed this episode, please leave a review. Ratings and reviews are extremely helpful and greatly appreciated! 

They do matter in the rankings of the show and help other people find my podcast. 

I also love to hear what’s been helpful and what you love about the podcast! Just click here to review, scroll to the bottom, tap “Ratings and Reviews” tap to rate with 5 stars and “Write a Review” and let me know what your favourite part of the podcast is. Thank you for your support!

Special thanks to David for sharing his insights with me for this week’s episode. Until next time!

 

Antony

 

Links and Resources:

Grow My Salon Business 

Website | Facebook | Instagram

 

Juut Salonspa

Website | Instagram | Facebook

 

David Wagner 

LinkedIn | Instagram

 

Daymaker Movement

Website | Facebook | Twitter | Podcast

 

Life As a Daymaker

Book

Episode 127

8 February 2022

How to Determine What You Should Charge for Your Services

I’m really lucky to have the opportunity to be able to have deep and insightful discussions with salon owners, and other people who have a vested interest in the salon industry. This year on the Grow My Salon Business Podcast, in every fourth episode I will be addressing a question sent in by a listener. 

For today’s podcast, I am answering a question posed by Louise (from Albuquerque), which was about how to price salon services. This question is relevant to all salon owners everywhere and I felt it would greatly benefit this audience, so tune in today to hear my thoughts on the topic!

In this Episode:

[01:38] A common strategy for pricing salon services, and the problem with this.

[02:18] Why decisions around pricing need to be based on maths, not emotion. 

[03:07] The importance of understanding the difference between your profit and the salary that you pay yourself.  

[03:45] A hypothetical exercise where I run through how to cover a $500 000 overhead and make a 10% profit. 

[08:10] Examples of the numerous variables which have an impact on your service price. 

 

Thanks so much for joining me this week. If you enjoyed this episode, please leave a review. Ratings and reviews are extremely helpful and greatly appreciated! 

They do matter in the rankings of the show and help other people find my podcast. 

I also love to hear what’s been helpful and what you love about the podcast! Just click here to review, scroll to the bottom, tap “Ratings and Reviews” tap to rate with 5 stars and “Write a Review” and let me know what your favourite part of the podcast is. Thank you for your support!

Until next time!

Antony

 

Links and Resources:

Grow My Salon Business 

Website | Facebook | Instagram