I congratulate you because you have one of the most gratifying and beautiful professions in the world both as an artist and an artisan. In addition to that, if you are a salon owner, you are also considered a businessman.
I know that for many, business is the most uncomfortable weight to carry in the industry, and many even secretly wish they could dedicate themselves to the more artistic and romantic aspect of the profession – but if you own a salon, I’m afraid there’s only one thing you can do: take care of business. I would like to calm you down, because it is truly not as difficult as it seems, it’s just that no one has taken the time to teach you how to do it properly, and that naturally makes everything seem more daunting than it really is.
Remember when you were initiating you beautiful journey into hairdressing? How difficult a haircut seemed, or highlights or possibly a perm? But thanks to your interest and consistency, you learned, you practiced, you evolved and eventually, you created. My proposition to you is to start looking at business through that same mentality, developing your financial wit and further evolving your entrepreneurial spirit.
Wouldn’t it be wonderful to do what you love, live from it in the best possible manner by way of a truly rentable business and that, aside from personal satisfaction, it also provides great economic relief?
It is absolutely necessary that you get to know some terms such as: a business plan, marketing strategy, cash flow, cross-marketing, commission margins, commercial margin, net profit, equilibrium… and that you understand the difference between commercial margin and net profit, a promotion vs. and offer, and an investment versus an expenditure. These are some of the basic principles of financial intelligence that would help develop your entrepreneurial spirit. It is the first step in creating a rentable workflow for your salon.
If you are a salon owner, or you are pondering on opening your own salon, I suggest you ask yourself the following questions:
- – Why did I open / want to open my hair salon?
– What I intend to achieve?
– What is my differentiator?
– What is my weak point or would like to improve the management level?
- – How to calculate an appropriate price list?
– What is my target for minimum daily cash?
- – How is my effectiveness on sales?
– What should be my term return on investment?
– How do I schedule annual purchases?
– Do I know how to create a budget for advertising and marketing and how to create and evaluate a profitable promotion?
Start by analyzing your responses to the questions above and after, take decisions, find a plan and don’t doubt for a second about putting that plan into action. Pay attention to short term, intermediate and long term goals. Plan future investments and marketing campaigns. Have a firm control of your finances and remember that not everything inside the register is considered an earning.
I want to emphasize, your business will not be saved by an illusion, trick, or a miracle, any magic product or brand. Your business could simply flourish with the proper workflow and putting in some serious work.
I hope you enjoy many years in this wonderful profession that is yours and of great satisfaction. Also remember that when you think of art, you are thinking like a hairdresser, but if you are thinking about monetizing your art then you will be an entrepreneurial hairdresser.
- ALEX DOBAO
Business Promoter & Consultant