Money

Episode 241

23 April 2024

The entrepreneurial journey is an ever evolving process and every stage brings with it unique challenges and opportunities.

The creative aspects of the salon industry are often what attract people to it, but if you’re going to make a success of yourself in a creative industry, it’s every bit as important to focus on the financial side too.

Today’s guest is Sean Hanna, a London-based hairdresser and multi-salon owner, property owner, business consultant, and entrepreneur in the real sense of the word!

In this episode, we discuss:

  • The phases that a business owner evolves through during a successful career
  • The importance of managing the numbers
  • Why you need an exit strategy…

And lots more!

In this Episode:

[02:35] Sean provides an overview of the six phases of business ownership.

[06:31] The question that Sean is most commonly asked by salon owners.

[06:52] Why Sean wrote his ebook, The Entrepreneur’s Guide to the Galaxy, and where you can access it for free.

[09:03] Finding the balance between the creative and financial elements of a salon business.

[12:31] Sean’s educational background and his approach to managing money.

[18:45] The motivation behind the founding of Sean and Skyler’s colour-only salon and the lessons they learned from it.

[25:02] Why you need an exit strategy and when you should start developing one.

[34:10] The evolution of Sean’s business and advice for growing your own.

[37:11] The model that Sean uses to help salon owners exit their businesses.

[40:36] Factors Sean takes into consideration when deciding whether to close a salon.

[44:43] Where you can connect with Sean.

[45:23] Final inspirational words from Sean.

 

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 Sean 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 | TikTok | YouTube |

 

Episode 14 with Skyler Hanna

 

Sean Hanna

Website

Episode 238

2 April 2024

Why is it that 80% of businesses that go to market never get an offer, meaning those business owners have to close the doors on all their hard work and walk away. 

If you’re a salon owner, the day will come when you are going to relinquish control of your business. 

This episode focuses on how you can increase your chances of being able to sell your business when that day comes rather than being forced to shut it down.

My guest is Zach Dogar, a business broker and exit strategy specialist in the hair and beauty industry. 

In today’s podcast, we will discuss:

  • Points for consideration when establishing the value of a salon business
  • The biggest mistakes buyers and sellers make
  • How to achieve the best sale price for your business

And lots more! 

 

In this Episode:

 

[03:21] What Zach’s role as a broker entails. 

[06:00] Some of the essential factors to take into consideration when valuing a business. 

[10:36] Zach’s approach to dealing with assets. 

[13:23] Why Zach takes a 5-year snapshot of a business’s financials when conducting a valuation. 

[16:19] Why a business’s profitability is usually a deal-breaker for a sale. 

[18:48] The three biggest mistakes that salon owners make in relation to the sale of their businesses. 

[19:10] The biggest mistakes that buyers make when acquiring a business. 

[22:57] When you should start thinking about your business exit strategy.  

[26:08] The advantages and disadvantages of continuing to work in your salon after you sell it. 

[30:41] How to choose a broker to help you sell your salon business. 

[34:11] How the trend towards independent contracting in the salon industry is impacting the sellability of a business. 

[36:09] Where to access a free questionnaire to understand the strengths and weaknesses of your business in terms of sellability.

 

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 Zach 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 | TikTok | YouTube

Links to other related podcast episodes

Episode 006  |  Episode 063  |  Episode 185

ETS Corporate

Website | X | Facebook | YouTube

Episode 227

16 January 2024

In today’s episode, we’re going to focus on one of the most misunderstood concepts among salon industry professionals: the ‘P’ word (i.e. PROFIT).

Reliable data in the salon industry is often hard to come by. But, what is usually agreed on is that when it comes to profit margins, the average salon has a net profit margin of somewhere between 0-8%. The good news is that with a little bit of education and thoughtful strategising, that is something we can change! 

So, if you’re unsure what exactly gross, net, and operating profit are, why you need to make a profit, or how to make your business more profitable, you’ve come to the right place!

In this Episode:

[01:37] The relationship between profit and return on investment.

[03:15] Why you can think of profit as a reward.

[04:02] The importance of profit for business growth.

[05:02] Additional benefits of ensuring your business is profitable.

[07:19] Why profit is such a misunderstood concept in the salon industry.

[08:58] The definition of profit.

[10:03] Typical salon business profit margins in comparison to those of other small businesses.

[10:45] The difference between a lifestyle business and a profitable business.

[12:03] Understanding gross profit.

[13:17] Understanding operating profit.

[13:34] Understanding net profit.

[15:32] Two strategies for increasing profit.

[16:51] How to develop a strategy for financial success.

 

 

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 | TikTok | YouTube | Money Course

Episode 220

28 November 2023

Talking, thinking, and weighing up the pros and cons are all important, but ultimately success comes from taking action, from implementing!

Of course, preparation is important, but the longer you spend trying to perfect something before taking action on it, the less time you have to learn invaluable lessons that can only come about when your vision has been turned into reality.

Or, in the words of Elon Musk, “Go quick, fail often, and learn fast.”

Failure is an inevitable part of life, but as I discuss in this episode, if you reframe your failures into learning opportunities, there is no limit to the success you can achieve!

 

In this Episode:

[00:37] Appreciation for all the listeners who leave ratings and reviews.

[02:07] The result of the most recent SpaceX rocket launch.

[02:37] Value that lies in taking action quickly.

[03:44] A winning quality of successful entrepreneurs.

[04:07] Why it’s worth learning from Elon Musk (whether you like him or not).

[04:31] Why aiming for perfection may be detrimental to your business.

[05:40] A new perspective on failure.

[06:50] What to look forward to in next week’s episode.

[07:02] Resources that can be found on our website.

 

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 | TikTok | Super Stylist Course | Management Course | Money Course

Episode 211

26 September 2023

In a salon, your productivity is measured by your ‘output’, things like your total sales, total number of new clients, and total pre-booking percentages.

Your output is determined by your input, things like your total number of follow-up calls, number of social media posts, and number of training events hosted.

In this week’s short episode, I talk about how if you want to change the output, start by focusing on the input.

 

In this Episode:

[01:09] Factors that need to be taken into consideration during a colour consultation.

[02:19] The importance of knowing your numbers as a salon owner.

[03:36] Examples of output numbers.

[03:57] Examples of input numbers.

[05:16] How to improve your salon’s output numbers.

[06:10] The approach I adopted to measure and enhance productivity in my salons.

[07:06] Why it is essential to set expectations for your team.

[08:08] My challenge to you for this week.

[09:08] Courses that will help you take your business to the next level.

 

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 | TikTok | The Management Course | The Salon Management Checklist

Episode 208

5 September 2023

Across the world, financial management is typically the single biggest area that salon owners struggle with.

When asked financial questions about their business, in many cases, their answer is a mixture of “I get my accountant or bookkeeper to look after that stuff,” or, “I get my wife or husband or partner to manage all that.”

And that's where the problem starts. The game of business is primarily a numbers game, and you can’t play the game if you don’t understand what the numbers are telling you! If you own a business, it’s your responsibility to get control of the numbers so that you can run it effectively. It’s not the responsibility of your accountant, bookkeeper, or anyone else to do that for you.

This episode was inspired by a question that was asked in the Grow My Salon Business Money Course, and it demonstrates how the depth of a seemingly simple financial concept can only be discovered when you know the right questions to ask!

 

In this Episode:

[02:40] Why, as a salon owner, you need to understand the financial side of your business.

[03:32] The purpose of the Grow My Salon Business Money Course.

[04:14] The question that inspired today’s episode.

[05:40] Why you should run a daily sales report at the end of every business day.

[06:42] What you can learn from running a daily sales report.

[08:08] The different layers that lead to the results in a daily sales report.

[10:38] Why questions are comparable to Russian dolls.

[11:13] Confidence that comes with understanding the numbers side of your business.

[12:17] How to enroll for the Grow My Salon Business Money Course.

 

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 | TikTok | Money Course | What Financial Reports Should I Run PDF

Episode 206

22 August 2023

The fact that you are reading this means that you are probably working in the hairdressing industry, and in all likelihood, you are also a business owner or an aspiring business owner.

As a business owner, the financial health of your business is your biggest responsibility, and one of the most important business relationships you will have is the relationship with your accountant.

My guest on today's podcast is April McDaniel from accountancy firm Kopsa Otte based in the United States. April’s accounting niche is the hairdressing sector, and the information she shares today will be invaluable in helping you get on top of your finances!

Although about half of my regular listeners are based in the US, we regularly get listeners now in more than 80 countries every week, so today, we are very consciously going to cover all things relating to money and accountancy in a way that’s relevant no matter where in the world you are based.

In today’s podcast, we will discuss:

– What salon owners should look for when finding an accountant.
– How involved salon owners should be in their business accounts.
– The single biggest mistake salon owners make when it comes to financial management.

 

In this Episode:

[02:45] The career journey that led April to become a specialist in accounting for the hair and beauty sector.
[06:49] Advice for finding the right accountant for your salon business.
[09:45] The importance of understanding the accounting side of your business.
[14:08] Bookkeeping elements that salon owners/managers should be handling themselves.
[17:46] The value of having a salon industry specialist set up a chart of accounts for your business.
[19:07] Types of software that salon owners will benefit from incorporating into their businesses.
[23:47] Some of the biggest misunderstandings that salon owners have with regard to their finances.
[25:34] How Kopsa Otte’s unlimited access model works.
[32:16] Advice for ensuring your business is well-prepared for an economic downturn.
[37:56] Profit margin targets that Kopsa Otta sets for its clients.
[39:25] Reasons for the upward trend in salon profitability in recent years.
[44:17] The most profitable salon business model.
[46:15] How the retail side of a salon business impacts its profitability (and the simple secret to successfully selling haircare products).
[51:16] Factors to consider when deciding whether to lease or buy equipment for your salon.
[54:17] A mistake to avoid as a new salon owner!

 

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 April for sharing her insights with me for this week’s episode. Until next time!

Antony

 

Links and Resources:

Grow My Salon Business

Petty Cash Management PDF Download | Money Course |

Website | Facebook | Instagram | TikTok |

 

Kopsa Otte

Website | Instagram | Facebook | X

April McDaniel

LinkedIn

Episode 205

15 August 2023

“I have been in business now for ten years, and as a salon owner, I seem to work harder now than I ever have, but by the time I pay my team and the business overhead, there is never the profit left in the business that I had imagined!”

Does this sound familiar? Just because you are talented with a tint brush, a pair of scissors, and a blow dryer doesn’t mean you are automatically going to be able to run a successful salon business. But don’t despair; just like you learned how to be a brilliant hairdresser, you can learn to be a brilliant business owner too.

A lack of “business savvy” is one of the main reasons that so many salons don’t succeed, and so in today’s episode, I’m going to share with you the six most important elements to focus on to ensure that yours doesn’t become one of the unlucky ones.

From setting budgets to managing revenue projections and lots more, tune in today to get a better understanding of how you can achieve your financial goals as a salon owner!

 

In this Episode:

[00:47] Where to find out more about the Grow My Salon Business Money Course.

[01:29] The question that inspired today’s episode.

[03:10] The main reason that hairdressers choose to open their own salons.

[03:40] A common misconception that hairdressers have about opening a salon.

[04:11] Why so many salons are not financially successful.

[04:40] The importance of taking responsibility for your finances as a salon owner.

[05:55] How to “get business savvy.”

[07:36] Why you should never underestimate the importance of setting budgets.

[09:41] The importance of measuring and monitoring key performance indicators.

[12:03] How profit is defined and how much profit the average salon makes.

[13:00] Advice for finding the balance between pricing and productivity.

[13:52] How to conduct a financial performance evaluation.

[16:09] Invaluable resources to tap into on your journey as a salon owner.

[16:49] An overview of the lessons that you will learn in the Grow My Salon Business Money Course.

[17:55] A reminder of the six points discussed in this episode.

 

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

Money Course | Website | Facebook | Instagram | TikTok

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

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

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