Is Absolute Clarity a Missing Link at Your Salon or Spa?

April 23, 2018 | By Neil Ducoff | No Comments

Having absolute clarity on where you’re taking your salon/spa is what distinguishes the no-compromise leader from those with just the title of leader.

Having absolute clarity of objectives, direction and action plans brings the vision and mission of your salon/spa into the highest level of alignment.

  • Absolute clarity is like a business GPS. It sets the where and the how.

All good behavior starts with clear goals. If you don’t know where you’re going, what you’re doing doesn’t matter.

Salon/spa owners and leaders must have absolute clarity of where they’re taking their companies.

Absolute clarity ensures that the salon/spa doesn’t wander off course or make decisions that are not in alignment with its vision, such as expanding too fast or entering unknown markets. Decisions or course changes remain true to the vision and mission.

I need to drive this point home because salon/spa owners are notorious for justifying whatever it is they want to do. Compromise resides within that justifying behavior. Absolute clarity deters this behavior.... Read More

Having absolute clarity on where you’re taking your salon/spa is what distinguishes the no-compromise leader from those with just the title of leader. Having absolute clarity of objectives, direction and action plans brings the vision and mission of your salon/spa into the highest level of alignment. Absolute clarity is like a business GPS. It sets the where and the how. All good behavior starts with clear goals. If you don’t…
Read More

Categories: Leadership

Rethinking Salon & Spa Service Pricing and Profit

April 16, 2018 | By Neil Ducoff | No Comments

As far back as I can remember, industry professionals have been saying that salon and spa pricing hasn’t kept pace with inflation. Few if any argue against it.

There’s another battle cry that goes with the “we’re not charging enough” thinking that sounds like, “Salon/spa net profits of +/-5% is pretty dismal.” In fact, too many salons and spas are notoriously unprofitable. Again, few if any argue this fact.

With service prices lagging behind and profitability looking bleak, it makes one wonder why anyone would want to open a salon/spa.

The service PRICING challenge

Charging what “you ARE worth”: There is an apparent self-esteem/personal worth issue that tends to get in the way. If one has the passion and perseverance to go through school, take countless advanced education courses and work hard to hone the skills of his or her trade, why not charge for your expertise?

If you’re an owner that bet the ranch to build a beautiful salon/spa, deal with all the stresses of being an employer, juggle finances and create a viable and unique brand, why not charge a price point reflective of this?... Read More

As far back as I can remember, industry professionals have been saying that salon and spa pricing hasn’t kept pace with inflation. Few if any argue against it. There’s another battle cry that goes with the “we’re not charging enough” thinking that sounds like, “Salon/spa net profits of +/-5% is pretty dismal.” In fact, too many salons and spas are notoriously unprofitable. Again, few if any argue this fact. With…
Read More

Categories: Financial Literacy

How to Make Your Salon or Spa Goal Everyone’s Goal

April 9, 2018 | By Neil Ducoff | No Comments

The dilemma at salons and spas is how all the “teamwork” talk grinds to a halt when it comes to shared ownership to achieve the company’s monthly and annual revenue goals.

The fundamental essence of teamwork is a united effort to win.

Teamwork is about igniting the energy and passion of all team members into a formidable force that’s capable of achieving far more than working independently.

The challenge: The vast majority of salons and spas set individual weekly/monthly service and retail goals for service providers. The “company goal” is rarely or never shared, if known at all.

The outcome: When the workday begins, each service provider is focused on his or her individual goal because no company goal exists. Total salon/spa revenue is simply the sum total of individual performance.

FACT: It’s hard to achieve a company goal when team members are competing against each other. It sounds like…... Read More

The dilemma at salons and spas is how all the “teamwork” talk grinds to a halt when it comes to shared ownership to achieve the company’s monthly and annual revenue goals. The fundamental essence of teamwork is a united effort to win. Teamwork is about igniting the energy and passion of all team members into a formidable force that’s capable of achieving far more than working independently. The challenge: The…
Read More

Categories: Financial Literacy , Information Flow

How Much is Your Salon or Spa Worth?

April 2, 2018 | By Neil Ducoff | 4 Comments

There are many reasons for starting a salon/spa business. If you’re a hairstylist, esthetician, massage therapist or nail technician, the motivation is your passion for the work.

Of course being a service provider in your own company makes a ton of sense, but that’s about you creating a job for yourself.

The entrepreneurial reason to start a business is to create and grow something of value. Your salon/spa business is, first and foremost, an investment.

In many ways, it’s no different than buying a home. You want your home (an Asset) to appreciate in value and grow Equity (Asset – Liabilities = Equity).

The Challenge: Too many salon/spa owners focus the bulk of their energy on growing revenues, but revenues do not directly translate into value creation or equity.

To create value and grow equity, owners must understand the relationship between their Profit & Loss Statement and Balance Sheet.

More importantly, owners must understand why and how a Balance Sheet defines how healthy the salon/spa business is. Why? Because a business can be busy, broke and worthless.... Read More

There are many reasons for starting a salon/spa business. If you’re a hairstylist, esthetician, massage therapist or nail technician, the motivation is your passion for the work. Of course being a service provider in your own company makes a ton of sense, but that’s about you creating a job for yourself. The entrepreneurial reason to start a business is to create and grow something of value. Your salon/spa business is,…
Read More

Categories: Financial Literacy

How to Create Salon & Spa Cash Reserves

March 26, 2018 | By Neil Ducoff | 1 Comment

I know what it’s like to look at bills and payroll that need to get paid knowing that the balance in the checking account isn’t even close to what’s needed.

That was many decades ago. I never allowed myself, or my company, to be in that situation again.

A business without enough cash to sustain itself is beyond stressful. It’s gut wrenching.

Borrowing money, especially on credit cards, to pay bills and meet payroll without a plan to fix the bleeding just digs a deeper financial hole.

When the owner has to stop taking paychecks, the stress level elevates to demoralization.

What you just read is every reason to create the systems and disciplines to build your salon/spa cash reserve.

There’s a reason that I always refer to cash reserves as “sleep well at night money.”

There’s a reason that Strategies training and coaching makes cash-flow management a non-negotiable.... Read More

I know what it’s like to look at bills and payroll that need to get paid knowing that the balance in the checking account isn’t even close to what’s needed. That was many decades ago. I never allowed myself, or my company, to be in that situation again. A business without enough cash to sustain itself is beyond stressful. It’s gut wrenching. Borrowing money, especially on credit cards, to pay…
Read More

Categories: Financial Literacy

1 2 3 117
X

Get your free coaching call now!

X

Need help with choosing a membership?
Fill out this form!

X
X