Strategies Coach, Melanie Loboda, recently completed a Team-Based Pay (TBP) conversion for Brooks and Co. Innovative Hair Design in Edwardsville, PA.

When I posted my “Welcome to the TBP family” on our Strategies Facebook page, owner, Mary Ann Brooks, replied, “Thank you Neil for starting your awesome company!!” That made my day.

I’m sharing this for two reasons:

1. I have a deep sense of pride and an unrelenting passion for the company I started 25 years ago.


2. I deeply respect owners that have the wisdom and confidence to implement change — especially a new compensation system and business model.

1. To achieve a sense of pride: There’s a sense of pride in building your own company that is hard to put into words. You had an idea, created a vision, and brought it to life. Yes, a salon/spa business is a living breathing entity that is a testament to your relentless hard work. It has vital signs that appear in numbers and percentages. It is like a child that you raised into a functional, profitable brand. Not a day goes by where I don’t feel and appreciate the sense of pride in my company. Neither should you.


2. To earn loyalty: You hire employees that embrace your vision and you earn their loyalty. (Yes, you hired a few problems along the way. Everyone does.) Earning the loyalty of those you lead is humbling and never taken for granted. It’s loyalty to your fairness, generosity and the trust that you have their back as much as they have yours. At Strategies we say, “culture reflects leadership.” Loyalty is the outcome. Cherish and protect it every day.


3. To create career growth opportunities: You can’t grow a salon/spa without growing your people. It’s not about what commission rate you pay or your compensation method. That’s shortsighted and always misses the point. It’s about offering and providing employees with stepping-stones to a better future. To establish a career that will serve them throughout their working lives. Just like you did, your employees will move on one day. But the more you offer growth through career development and the opportunity to achieve their full potential, the less reason they have to move on.


4. To control your own destiny: Owning a salon/spa company is about having unlimited opportunities and the privilege to go after them. It’s not about growing someone else’s company and vision — it’s about taking your company as far as your abilities and energy allow. The ability to choose your own path should not be squandered or taken lightly.


5. To become a leader: You can’t grow a dynamic salon/spa company alone. You need the skills, hearts and minds of those you lead. You need a leadership team to share responsibilities and bring strength to your weaknesses. You also need to earn trust. To earn trust means living values without compromise. It means the rules and standards apply to everyone — especially you. Anyone can start or buy a business and tell people what to do. Not everyone can become a leader.


6. To create profit: No one starts a salon/spa to lose money. Yet, too many salons/spas do just that. Creating profit doesn’t happen by accident. Profit is the outcome of financial disciplines, systems and good decision making. Profit is good. Profit is financial security. Profit is about reinvestment and financing opportunities. Lastly, a portion of profit is that often elusive “second paycheck” for owners, better known as return on investment.


7. To be a change agent: In any business, change is a constant. Change is about evolving and remaining competitive. Resistance and failure to change is a slow path to irrelevancy. Many owners that complain about employee turnover fail to understand that most turnover is the result of stagnancy. Employees need to be coached and positively challenged to contribute to team and company growth. For owners, this means persistent and measured change in the form of systems refinement, skill development, customer service and service offerings. It’s not just okay to rock the boat a little — it’s essential.


8. To compete and win: There’s no greater feeling than consistently hitting monthly goals. It means your systems, culture and leadership are dialed in. More importantly, it means your salon/spa is competitive and winning the business game. Too many owners get used to coming up short. That’s dangerous and self-defeating. Being a competitive force in your marketplace and racking up wins energizes your culture, builds confidence and opens the door to new opportunities.


9. To evolve: Strategies is a very different company today than when I founded it 25 years ago. Technology, consumer needs and employee needs evolve over time — and your salon/spa company needs to evolve too. I loved my company then, I love it more today and look forward to its next evolution. Evolving is more than change. Evolving is the reshaping of your salon/spa in ways that make it stand out from the competition. Be relentless and embrace the need to evolve.


10. To create something of value: When all is said and done, you start a salon/spa company to build something of value. There will come a day when it’s time to sell. That’s why it’s vital to understand both your Profit & Loss Statement and Balance Sheet. That’s why your critical numbers are called “critical numbers.” If you can’t slide your financials across the table to a potential buyer with the pride of knowing they support a premium sale price, you’ve got work to do. Selling the company you created for a sum equal to the years of hard work is the ultimate end game.