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 150

19 July 2022

What is Freedom and How Do We Balance That with Running a Profitable Business? with Antony Whitaker.

Regardless of what business you are in, the challenge every business owner faces is that of constantly adapting and evolving to the changes in the world we live in.  

Whether it’s the demands for more flexibility from today's workforce or the pressures of inflation and the rising costs of living and doing business, the fact remains that being in business isn’t easy, and to succeed, you need to constantly evolve.

And therein lies the challenge. How do you build in more freedom, flexibility, and autonomy for your team? 

And how do you balance that with running a viable and profitable business?

 

In this Episode:

[00:54] Why I recommend watching WeCrashed.

[01:14] The question that inspired today’s episode. 

[02:13] Important realizations that many people have come to as a result of the COVID-19 pandemic. 

[04:08] The tradeoff between income and freedom.

[04:27] Changes that many stylists made to their way of working during the pandemic. 

[05:22] A few different definitions of freedom in relation to the salon industry. 

[08:04] Comparing the trajectory of the salon industry in relation to other industries.

[09:13] The importance of treading cautiously when implementing change. 

[10:27] Factors that make the salon industry ideal for disruption.

[11:19] 30: the number of hours a week being worked by over 60% of hair and beauty professionals in the United States. 

[12:26] The downsides of the proliferation of independent businesses. 

[13:48] An overview of my thoughts on the increasing levels of flexibility and autonomy in the salon industry. 

 

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

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 144

7 June 2022

Inflation and the Looming Recession: What should salon owners do to be prepared?

I've had a few questions recently from listeners regarding inflation, the looming recession, how they are impacting the hairdressing industry, and what I believe salons should be doing to counteract it.

In this episode, I dive in and explore what the implications are for the salon industry (and for small businesses in general) as many countries experience the worst inflation in over 40 years…

To say it’s new territory for many business owners is an understatement!

The 3 main topics that I cover in this podcast are:

  • What are the lessons we have (hopefully) learned from Covid?
  • The importance of understanding where you and your business are from a financial perspective at any point in time.
  • How do we, as small business owners, navigate the financial road ahead?

In this Episode:

[04:01] 6 core lessons that we have learned about the salon industry from the Covid pandemic.

[05:28] Examples of factors that cause business disruptions, and the importance of being prepared for them.  

[06:20] Why you should always be looking for opportunities to maximize income and minimize outgoings.

[08:03] How running a business is analogous to flying a plane. 

[09:37] 7 questions to help you determine whether you understand the financial side of your business.

[11:54] A reminder that cash flow is essential, and advice on how to keep track of it. 

[13:27] Tips for reducing your outgoing costs.

[14:44] The importance of keeping your personal credit rating high as a business owner. 

[15:40] Examples of how to maximize your income. 

[16:04] The benefits of monitoring your cash flow budget daily (or at least once a week).

[16:28] Why you should raise your prices.

[17:15] A recession doesn’t mean your business has to suffer; be prepared for opportunities! 

[18:29] Value in having a good accountant during challenging economic periods (don’t get your financial advice from social media!). 

[19:20] How to avoid potential tax-related issues. 

 

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

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 130

1 March 2022

Pricing Your Services with Mick and Kylie Dwyer

I am frequently asked questions about salon pricing and so I recently did a podcast episode where I spoke on the pricing of salon services (it was episode 127 if you haven’t already checked it out).

Today's episode is also about pricing, and I have not one but two guests on the show. They are husband and wife, Mick and Kylie Dwyer, who are former salon owners and educators. They have written a book, and developed an app and an online course all on the topic of pricing!

So in this episode, we are going to go much deeper into the pricing issue

In today’s episode we discuss:

  • How to price your salon services
  • The challenges that hairdressers have when it comes to raising prices
  • Profit margins in salons today…

And lots more!

In this Episode:

[02:00] An overview of the careers of today’s husband and wife team, Kylie and Mick Dwyer.

[04:07] Mick explains what inspired him to write his book, Pricing Your Services, what the writing process looked like, and what you can expect to learn from reading it.

[10:44] The app and online course that Kylie and Mick developed focuses on helping people price their services.

[16:53] What Mick sees as the biggest mistake that people make when deciding on their prices (and some other, secondary mistakes).

[21:15] Why the size and shape of your business is irrelevant when it comes to pricing your services.

[24:51] The average profit margin of the majority of salons.

[26:51] Salon characteristics that Mick has recognized as being responsible for an above average profit margin.

[29:51] Why Mick thinks it’s a good idea to treat the retail side of your salon business as a separate entity.

[31:06] Mick explains the concept that he refers to as ‘seat time.’

[35:36] Pricing by gender; Mick’s opinion on this approach.

[38:40] The tiered pricing strategy that Kylie and Mick advocate for.

[43:23] Why Mick recommends that salon owners implement regular, small price increases.

[47:08] Advice for dealing with rising inflation as a salon owner.

[54:01] Snipt; Kylie and Mick’s exciting new app which is going to launch in early May!

 

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 Kylie and Mick for sharing their insights with me for this week’s episode. Until next time!

Antony

 

Links and Resources:

Grow My Salon Business

Website | Facebook | Instagram

 

Elite Hair Education

Website | Instagram | Facebook

 

Pricing Your Services

Website

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

Episode 110

12 October 2021

Should you switch to charging by the hour? Here's how one salon did it.

There is a business trend that I'm seeing more of lately. It was happening anyway, but it has been accelerated by Covid, and social distancing, and people looking for new ways of living and working to avoid burnout. 

The trend that I am talking about is that more salons are looking at ‘charging by time' instead of ‘charging for the specific service'. 

My guests today on the podcast are two sisters who are also business partners, Vicki and Jane, from the award-winning salon ‘Reed hair' in the UK. 

I'm really pleased to have them on the podcast today to get the opportunity to dig in deep about everything to do with charging by the amount of time and not for the specific service. 

Reed hair made that transition a few years back and haven't looked back since, and on this podcast episode, they are totally open about what was involved in making the change. 

In this episode, we discuss:

  • The reasons behind why they changed
  • What the challenges are (if any) for owners, staff and clients
  • How to work out your hourly rate… and
  • The impact it has on profitability.

And lots more!

In this Episode:

[0:01:02] A current trend taking place in the salon industry, which was accelerated by the Covid-19 pandemic. 

[0:05:45] What sparked Vicki and Jane’s decision to change their business model from charging for a specific service to charging by time. 

[0:09:08] The vision that Jane and Vicki had for Reed Hair from the beginning. 

[0:12:06] Impact that the change in business model had on costs and revenue for Reed Hair. 

[0:14:13] Client education and marketing that Jane and Vicki did when they changed their business model. 

[0:15:23] Why the daily volume of clients at Reed Hair dropped when they moved to the charge-by-time model. 

[0:17:12] How Jane and Vicki communicated their business model change to their clients over a period of time. 

[0:19:40] Other changes that took place at Reed Hair alongside the change in business model.

[0:21:47] The biggest challenge that Vicki and Jane faced when they made these major changes to their salon, and how they dealt with it. 

[0:23:12] A formula to work out what a stylist should be charging per hour. 

[0:26:51] The drop in assistants that Reed Hair experienced prior to their big reopening, and the reasoning behind the decision to remove assistants altogether. 

[0:30:31] How Reed Hair’s clients handled the transition to a charge-by-time model. 

[0:33:30] Different price levels of the stylists at Reed Hair. 

[0:34:34] Responses from staff to the changes that were put in place at the salon. 

[0:35:39] Ways that the charge-by-time model benefits stylists and clients. 

[0:37:38] What a typical conversation with a new client at Reed Hair will consist of. 

[0:40:48] How the commission system at Reed Hair works. 

[0:43:15] The answer Reed Hair gives their clients when they aren’t sure how long their session is going to take.  

[0:47:01] How the hourly rate at Reed Hair is broken down. 

[0:48:04] Why women’s sessions are usually booked for longer than men’s.

[0:50:41] Transparency that Reed Hair practices with their clients. 

[0:54:52] How Reed Hair’s hourly rate accounts for the cost of products.  

[0:58:21] The lack of hierarchy and a price ceiling at Reed Hair. 

[01:00:30] Criteria that determine the hourly rate that stylists at Reed Hair can charge. 

[01:01:26] Factors that resulted in an increase in Reed Hair’s profitability when they changed their business model. 

[01:02:02] Vicki and Jane’s commitment to looking after their staff.

[01:03:12] Key steps to making a success of the charge-for-time business model. 

Thanks so much for joining me this week. If you enjoyed this episode, please share it using the social media buttons at the side or bottom of this post.

Also, I’d love it if you’d leave an honest review for The Grow My Salon Business Podcast. 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! Just click here to review, Click through to ‘Listen on apple podcasts’ scroll to the bottom, select “Ratings and Reviews” and “Write a Review” and let me know what your favourite part of the podcast is. Thank you!

And finally, don’t forget to subscribe to the show on Apple or Google to get automatic updates.

Special thanks to Vicki and Jane for sharing their insights with me for this week’s episode. Until next time!

Links and Resources:

Grow My Salon Business

Website | Facebook | Instagram

Reed Hair

Website | Facebook | Instagram

Episode 098 – Toby Dicker and Amanda Faith – Charging by the service or charging for time?

Episode 007

21 May 2019

My guest today is Taelor Pleas hairdresser, presenter, salon industry coach and director of recruitment, hiring and training at the Cutting Loose Salon Group in Florida.

On today's podcast we cover:

  • Finding balance in a family run business.
  • Making 6 figures in a 4 day week.
  • How much you want to earn isn’t a percentage, it’s a $ value and how this is a really important distinction.

Thanks for listening!

 

Thanks so much for joining me this week. If you enjoyed this episode, please share it using the social media buttons at the side or bottom of this post.

Also, I’d love it if you’d leave an honest review on iTunes for The Grow My Salon Business Podcast. 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 finally, don’t forget to subscribe to the show on iTunes or Google to get automatic updates 

Special thanks to Taelor for sharing her thoughts with me for this week’s episode. Until next time!

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