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Dear Michael,
For 12 years I have been a stylist that has paid leases for my station at the salons I have worked in. The salon I am currently working at only has 3 stations. Over several years, I have contemplated having my own salon, but themed out more for kids. I notice that most moms who bring their kids with them to get their hair done stay somewhat stressed during the process due to the atmosphere not being conducive for kids (besides the fact when the kids have to get their hair cut they have been kept so uncomfortable by the atmosphere they usually scream the whole time). Tell me if I am wrong, but I think that a salon where kids can come in and have fun and enjoy themselves will also bring the business of the parents as well.
I am looking at a salon that has a kid theme
to it, but offers the same services as any other hair salon except that we
would also have a room for parties. I know location is the key to being
successful. I have located a new shopping area where there is a 12 screen
movie theatre and a Little Gym for kids. The rent is a little more than most
places due to it being new, but I think that the amount of traffic will make
up for the extra expense.
Do you think that a salon that is themed for kids
would be a place where adults would also feel comfortable getting their hair
done? When I say themed for kids, it would have a theme to it such as Pirates
of the Caribbean or screens out of the kids area at Six Flags with video games
and DVD players around the salon. We have approximately 10,000 elementary
aged kids in the two closest towns. Also, I need help with a name that would
draw in kids, but let parents know it's a place for them as well.
Thanks for your advice
Opening a salon is a wonderful goal to have. I can see you have put thought
into the type and location and décor of the salon.
But right now I am going to ask you to set all of the emotion, aside and
lets get down to the hard boiled business of opening a salon. Most people
that are thinking about this huge undertaking spend a lot of time on the
vision of what the salon will look like and very little time to the
financial reality of what it will take. Now I am not trying to talk you out
of doing this. Instead I want you do approach this with a true picture of
what it takes. I am at a Summit seminar about once a month and I can't tell
you the number of people just like you with a dream that get themselves way
over their head in debt.
I am going to make a bold statement here and maybe run the risk of offending
you, but I know it needs to be said. READY?
If you are not ready to do understand the financial aspects of running a
salon they you are not ready to have a SUCCESSFUL salon. Here are some
examples of what I am talking about.
1. What will the build out cost for your location?
Example: $100.00 per sq. ft. x 2,000 sq. ft. = $200,000.
2. Know your monthly payment on debt.
Example: $200,000 x 2% = $4,000 a month.
3. Know your monthly rent.
Example: $3,000 a month.
4. Do you know what you will need to break even every month?
Example: Monthly debt ($4,000) + monthly rent ($3,000)
= $7,000 x 10 =
$70,000 a month.
So in this example you would need to generate $70,000 a month in sales to
run this salon without losing money. That's a lot of kids cuts. Now I'm
not sure what you might be feeling at this time. You might be grateful for
the information, you might be angry with me. You may be overwhelmed. I don't
know but here are some more very important things to consider.
5. How many service providers will you need to make your break even?
Example: $70,000 (breakeven) / $5,000 per month per service provider = 14
service providers.
6. Amount that each service provider will need to generate each month?
Example: $70,000/ 14 = $5,000 a month.
7. The amount of guests needed per month to meet break even?
Example: 100 guests per month per service provider x 14 service providers =
1400 guests
8. The average ticket for each guest needs to be?
Example: $70,000 (breakeven) / 1400 (guest count) = $50
9. How much operating capital will you need after building out?
Calculate one year of debt payments and rent.
If you still want to continue your journey of opening a salon my next
suggestion to you before you do anything is to consider coming to a Summit.
Learning all you can about how to negotiate your lease, build out your
salon, operate a successful business. I would also suggest you take an adult
education class in Quickbooks. You want to be able to know what is going on
each and every day in your business.
Please know that I love the salon industry and if I was hard on you it is
only because I see so many good people fail because they have not taken the
time to learn how to be a business person.
I wish you well and hope to see you at a Summit. -
Michael
Dear Michael,
We have a situation about taking turns on walk ins and call ins. What
ideas can you give us that would make it fair for everyone?
What’s
your definition of fair? The definition of “fair” depends
on the system you use to promote people. If you have no real system
that determines who is performing well and who isn’t and your
system is whoever gets the walk-ins first or who likes who at the
front desk you're in trouble. Salons that operate like this are on
an old and obsolete system. And they are also the salons that are
going out of business at a rate of 10 a day.
God Speed.
Michael Cole
Dear Michael,
I have purchased and used your A Little More off the Top and
listen to One on One. I am using many of your techniques and
have a moderate, growing, happy clientelle. My problem is finding employees!
I've used the local newspaper and told my clients that I'm looking for
another stylist if they know someone. No interest has been shown! All
of my clients say "What a beautiful salon!" "I love your
work!" Keep in mind that I work in a VERY small town that has,
um, 30 something salons. crazy, yes. But a stylist with experience/clientelle,
a good attitude and reasonable technical skills seems to be impossible
to find! (I have one stylist that is fresh out of school and building
her clientelle. I simply have no 'extra' clientelle to give to another
'newbie'.) AGH! Any ideas on how to aquire good employees? ( I hate
to say any warm body will do, but I'm nearly to that point. Do I lower
my standards or simply work basically by myself?) -Kelly
Kelly,
There were two statements you made that said a lot. One is I have
no extra clients to give a new stylist. With regard to this statement
you need to take a look at your advertising budget and start getting
some new clients in the door. Check out The
Phase 2 program on line. There is a section in that program
about marketing. The second statement was. "A stylist with
experience clientele, a good attitude and reasonable technical skills
seems to be impossible to find!" A stylist with clientele will
come with all of their issues and demands and opinions. So the trade
off is getting someone in that has clients but there are other things
they bring to your salon. The other program you might want to consider
would be the Associate
program. Where you take someone right out of school and have
them work as your associate. But unless you are able to market to
get more new business you will have no extra clients to work on
together as well as to feed that new person. I know these are not
easy answers but they are some of the ways you could move.
Thank you for contacting me.
Sincerely
Michael Cole
Hi Michael,
I attended one of your seminars at the Peel's Show last fall. I have
also purchased and read A
Little More off the Top. I was inspired and blessed by both.
Last April, I took over as manager of an established salon. In November
I purchased the same salon and became owner. What I have found difficult
is the adjustment of going from a co-worker- (an "equal")
- to becoming a leader (otherwise referred to as "the boss").
I have used the Jump
Journal and found it beneficial. I have encouraged my staff to purchase
it as well and most of them look down their nose at me. I have also
used your audio cd's for training on a couple of occasions, with very
little enthusiasm in return.
We are in a small agricultural town. Population approximately 10,000.
Services run on average of $16,000/mo. and retail runs an average of
$1200/mo. This salons prices have increased very little in the last
4 years. Most of the employees don't want to raise prices because they
are afraid we will lose clients. No one wants to implement any of the
training in your teachings because "we are a small salon in a small
community and those things won't work here...they are designed for big
cities." This is just one of the negative comments I have heard.
I encourage them to increase retail, with little results. I have even
implemented employee contests for retail sales. Basically, I believe
firmly in the things you teach in your seminars, books and audio's.
My desire is to operate my business along these guidelines. I cannot
seem to get the staff to cooperate. Most of them tend to do what they
want to do, come and go as they please and basically walk over the top
of me. As I stated above, I have had a really hard time stepping up
to leadership and developing a backbone.
What suggestions might you have for someone in my position? This
salon was primarily a "walk-ins only" establishment. Since
I have taken over, we have started taking appointments. My numbers are
great and I am booking a month in advance. The others want this kind
of clientele, but don't want to implement what is necessary to achieve
the same results. I have also become so busy with the business/financial
aspect of the salon that I am pressed for time to handle my clients.
I am also preparing to open another salon and need to step away from
being "behind the chair" to take care of "business."
Is this a safe move? Please help!
Thanks for your time and response!
Frustrated and Spineless
Dear
Frustrated and Spineless,
Wow, you have a lot on your plate to handle and to be real honest
with you the idea of opening another salon without being able to
handle the people and the one you have right now is a bit unsettling
to me. Two salons are not twice as much work they are four times
more work. Leading people has to be one of the biggest things that
salon owners struggle with. As a leader of people myself I know
that I can not pass on what I don't possess for myself. This same
issue of your people not listening to you would show up in another
salon as well. If you are truly willing to become a leader of your
salon that intention is one that will take your attention, time
and possibly some money. Here is what I have done to become a better
leader. I have a personal mentor that I work with every month. This
person is not my friend, or relative or any one that has a connection
to me personally. This person is willing to help me look at me and
see what is it in me that's getting in my way. I would bet you need
someone in your life that would tell you the truth about what you
need to work on. If this is something you are interested, and willing
to pay for and engage in let me know. I know this reply sounds harsh
but I needed this kind of honesty in my life and I am forever grateful
for it.
God
Speed,
Michael Cole
Dear Michael,
Me and my partner just open a brand new salon in a very good potential
area. We're very positive about our 7 months old salon. We also receives
many positive feedbacks and comments from clients about our business.
Traffic is still a little slow, I know that we can do better. What else
we can do to prosper?
Thanks,
New Salon Owner
Dear
New Salon Owner,
When I look at all of the things that make a salon successful I could
come up with hundreds of areas to look at. But let's break it down
into three catagories. Financial, Management, and Marketing.
Just looking at Financial I would be wondering about are you generating
a profit and loss statement? Keeping great records of all of the business
transactions going on in the salon. In simple terms how much money
is coming in and how much is going out? And of the money coming in
how is it coming in how much is retail, how much is service? The money
going out where is it going to? A great resource for more detailed
information can be found in the Financial Guidelines manual and cd's
in the Summit Library. What's great
about listening to that program is you questions would be more specific.
The original question you asked me is real broad and it is difficult
to zero in on one topic.
Well what about Management then?
This is all about your ability to manage, motivate, and inspire people
that work for you. You can never know too much about this area of
your business. The best advice I can give you to get you going is
lead by example. What does that mean? A few examples would be work
the Power Wheel with each and every client you service. (See
A Little More Off The Top) Make offerings of retail, new services,
raise your prices when your numbers indicate. In other words all of
the things you want your people to do, you must be willing to do first,
consistantly, and well. More education can be found in the Summit
Library as well.
And last but not least Marketing. This area is all about the customer.
Turning that positive feedback into referrals. It's meeting with your
distributor and putting a calendar of promotions together. It's keeping
the fresh, exciting, fun, energy going in the salon. Understanding
the connection between your finances and marketing is key. How much
should I be spending on advertising? How do I get new business in
and once I get them in how do we keep them? So as you can see the
simple question of "How do I make my business more successful?"
is a big one.
I hope this was helpful to you. And I would love to see you attend
one of the Summits.
Stay well,
Michael
Dear Michael,
I have been a follower of yours since the "Boot Camp" days
and know first hand that your stuff works!! I teach several classes
in our salon and use a lot of your materials. Some of our master stylists
are having trouble with new client retention. I have been asked to teach
a class on this subject. Any suggestions?
Thanks,
Debbie
Debbie,
Yes I have some ideas. The biggest one is around reinvesting in yourself.
What does that mean? Well this is a question to ask. How have you
changed for the better since the clients last visit? And if you say
yes can I see it in your image? Your technical work? Your vocabulary?
Your motivation? In your life? Clients get bored with their look and
unless you are better they are going to get bored with you. It's not
good. It's not bad. It just is. You can complain about loosing clients
or you can do something about it. Are you willing to give getting
better your attention, your time, and your money? Because their is
a cost to getting better so it's time to reinvest in yourself.
Thank you stay well,
Michael
Hi there Michael!
My name is Amber and a am a stylist who has recently transitioned into
mangement at my salon. We are a small salon, and although we are not
a summit salon, I have been inspired by A Little More Off The Top to
grow and succeed. My co-workers, however, are feeling stagnant. We have
a stylist who is an educator for REDKEN, and works one day at another
salon where he makes a consireable amount of money. Another stylist
we have has a steady clientele base, but very few new request and referral
clients. Both of them are feeling like they are getting nowhere in the
salon because after 1 1/2 years with us my salon owner is not offering
any advancement. meaning, no commission raise. I'm caught in the crossfire!
On one hand I understand that to recieve a raise, the numbers must be
right, there has to be growth, and honestly, there isn't much. On the
other hand I feel that they should be rewarded for the growth that they
HAVE had and the time that they have spent with us. How can I help resolve
this issue? How do I help inspire them? How do I suggest n advancement
plan? And most of all, how can we help them become successful? I believe
that no matter where you are located and no matter what the clientele,
success is possible...the problem is helping find the path. Any insight
or advice you could give would be helpful and appreciated.
Thank You For Your Time,
Amber
Amber,
First off I believe you and the owner of the salon should seriously
consider attending a Summit. I have found that things start with one
issue but as soon as you deal with that one another pops up.
With
regard to you other question. When there is no set criteria for a
pay increase people are confused and frustrated because they believe
they deserve a raise. There are a number of ways that staff can experience
an increase. One would be a raise in commission but as I said depending
on the debt and expenses of the salon that may or may not be possible.
The other is in an individual price increase when a stylist has reach
certain benchmarks that are written down, agreed upon, and tracked.
If
coming to a Summit is not possible I would encourage you to get the
Summit Library. All of the tapes and information would be valuable
for you to listen to and learn. Until you have more facts about where
the salon is at financially suggesting anything is dangerous.
How do you inspire them? Through example. Get on a track of specific
goals for growth, track your own progress and raise your prices. You
would then be able to pass on authentic experience and that has more
impact than your thoughts or opinions.
Stay Well,
Michael
Hey Michael,
My husband, Thom and myself own our own salon in Vermont. We have
followed you for many years and attended your awesome class at the 2005
REDKEN symposium. We purchased your materials and understand how your
system works but want to attend your Summit College in October so we
can have a good kick in the pants to implement your systems 100%. Both
of us work behind the chair full time and we are ready to start working
on our business instead of working in our business. We have been quite
successful but still don’t manage to have any profit at the end
of the year. Last year was a struggle! So I know you can help us to
the next level. My question to you is I read on your website about split-shifts
and I would like to work toward that schedule. There are 6 stylists
and 5 chairs and we want to add a 7th stylist. This includes both Thom
and myself. We all work a 4-day work week (10 hours) except for 1 stylist
that works 5 days. I would like to start a split-shift for the salon
and would like any advice you have to offer. We even have a chance to
add an 8th stylist in the near future. I just hate to lose good talent!
We are open Tues. through Fri. 9am to 8pm, Sat. 8:30am to 5pm. We closed
a year ago when two stylists left to go work booth rental. So we thought
it would be better to have more coverage on fewer days. We look forward
to attending your college in the fall!!!
Thank you
Kathy
Hi
Kathy,
Thanks for your letter. I am glad to see you and your husband were
able to re-open, unfortunately many aren’t able to bounce back.
I will start out by answering your question about split shifting.
Split shifting is one of the many important concepts we teach at the
Summit. Basically, when you move to a split-shift schedule you need
to be open 68 hours a week, giving 32 hours a week per shift. That
would mean that the salon is open five 12 hours days and one 8 hour
day per week. Service provider stations move to wheel carts because
areas are shared. Now this explanation of split shifting is of course
a quick one. There is more to it and is by no means that simple. However,
it sounds to me as I read your letter that there are other things
about your salon that you and your husband would like to work on.
I would encourage you to wait until attending the Summit before making
any drastic changes. When you attend you will have the opportunity
to see other salons in Minnesota who have successfully implemented
the split shift as well as other Summit systems. Good luck to you
and your husband Kathy and I’ll see you in October.
Sincerely
Michael Col
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