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10 Salon/Spa New Year’s Resolutions for 2021
January 3, 2021 | By Neil Ducoff | No Comments
If there was ever a year that everyone will be delighted to say “good-bye” to it’s 2020. It’s finally over.
By all indications, there are reasons to be optimistic that 2021 will be a year of recovery and a return to normalcy.
As we are all well aware, the first, and probably, second quarter is going to be a continuation of 2020. The CDC is forecasting that the Covid vaccines won’t be making their way to the general public until this Summer or early Fall.
The good news is that multiple Covid vaccines are highly effective and the orderly process of vaccinations is well under way.
Until then, we know the drill — wear a mask, social distance, wash your hands and avoid gatherings.
In the spirit of beginning 2021 with hope, optimism, and making the most of our precious lives, I offer you my very special ten New Year’s resolutions for 2021:
- Be grateful for all you do have: No matter how tough life and business can get, there is much to be grateful for. Make 2021 the year to appreciate the good in your life. For leaders, be grateful that a second round of PPP loans is on the way with all the corrections the first round should have had. A forgivable PPP loan is too good to pass up.
- Learn from the lessons that 2020 taught you: From a business and leadership standpoint, Covid-19 was a crash course in problem solving and crisis management. Just because the end is in sight for this pandemic, it absolutely does not mean a return to your leadership approach of the past. Overcoming the challenges that Covid-19 threw at you was a wake-up call. Make 2021 the year to build on 2020’s tough lessons.
- Make creating a team-based culture your #1 leadership priority: Commission cultures in any business are naturally and notoriously “I/me/mine.” The same is true if building your salon/spa is all about growing individual service provider client followings. Make 2021 the year it becomes a team of people focused on growing the company they work for. That’s where the earning opportunity is for both the business and its employees. RELATED: Learn what a Team-Based culture can do for your salon/spa.
- Remember how intense you were focused on business and leadership during the shutdown? Commit to doing the same throughout 2021: Yes, having to shut down your business and adapt to safety protocols was intense and downright scary. But you rose to the challenge and figured it out. Imagine what your salon/spa could achieve if you commit the same level of intensity to create positive change and operational excellence. You proved you can do it — so make 2021 the year to commit to it. RELATED: Join us for THR!VE on January 10th take your “whatever it takes” mindset from 2020 into 2021.
- To grow an employee-based salon/spa, you can’t be both a leader and full-time service provider: It’s been proven time and time again that an owner cannot effectively meet the demands of leading a salon/spa while being a full-time service provider. Employees need attention. Cultures need constant care and pruning. Systems need to be built, implemented and managed. Financial controls, planning and decision making responsibilities must be met. This doesn’t mean you can’t do services. Make 2021 the year to allocate your time to work smarter — not harder.
- If Covid-19 taught owners anything in 2020, driving productivity rate and managing payroll costs is non-negotiable: Reduced capacity mandates meant maximizing your company’s productivity rate. It also meant closely managing payroll costs. Why? Because you couldn’t afford to pay unproductive or unnecessary employees. Remember the business lessons Covid-19 taught you. Controlling productivity rate and payroll costs in a service business is a critical piece to creating profit. If you figured it out, then Covid made you a more savvy business owner and leader. Make 2021 your year to fine-tune productivity and payroll costs.
- Building a cash reserve equal to no less than three to four months of operating costs is non-negotiable: The only way to grow cash reserves is to commit to creating and living a 12-month cash-flow plan. Cash reserves cannot and will not happen by accident. It requires discipline and strict financial controls. Make 2021 your year to grow a secure cash reserve.
- Raise your service prices to cover your cost-per-hour + target net profit: The most significant opportunity for salons/spas to raise prices was immediately after the shutdown. Reduced capacity and increased costs demanded a justifiable reworking of your service pricing. If you did raise service prices, you did the right thing. If you didn’t, make 2021 the year to revamp and increase your service pricing to ensure profitability. Few if any clients will balk at an increase. KEY: Cost-per-service hour + desired net profit is the only true way to price services.
- If something isn’t working, you must design, implement and coach a new system capable of getting the results you want: Systems create consistency and predictability. In so many ways, systems set leaders free to focus more on growth. Make 2021 the year you commit to serious systems development to fix what isn’t working and to make what is working even better.
- Make 2021 the year for creating balance in your life: Everyone wants balance in their lives. But just like great cultures, profit, and cash reserves don’t happen automatically, finding work/life balance requires a deep commitment to change how you approach and manage work and life. Being a workaholic doesn’t translate into more business growth and profit. Most often, it means working inefficiently, micromanaging, and the inability to delegate. Make 2021 the year you take serious action to manage work time and personal time.
Here’s my 2021 challenge to you: You are capable of overcoming any challenge that lies ahead of you. You have the opportunity to make 2021 the best year ever.
It all depends on how you choose to change and adapt to become a better leader and businessperson.
You got this.
If you’d like some help making this all happen, schedule a free strategy session with one of our Certified Strategies Coaches, and we’ll help map out a game plan…or just answer any questions that may be holding you up.