My journey in ownership has brought me to an exciting but uncomfortable place...a place of accountability-for me. I used to pat myself on the back for completing a ten-hour day of beautiful hair plus a burrito and payroll done at the same time during my hour lunch.
If I were to do that now, I realize that I'd be doing myself, my staff, my clients and my business damage. I can still have the burrito and the hour break, but there are other people who can do the payroll, and do the hair, and do the 10 hour days. My role is to hit my benchmarks...as an owner. And, comfortable or not, they are all very measurable.
So what are these benchmarks? Below is a list of the things that I believe we, as owners, need to be accountable for. The good news is, if there are things on the list that we hate or are no good at, we can hire them done. However we can NEVER ignore them or put them on the back burner for when we get time.
PERSONAL SPIRIT. This is the most important: your health, your family, your hobbies. If you don't love it, you can not empower others to love it.
Life Balance. Work should not be your life. In order to sustain your passion, don't work over 50 hours a week or 4 months in a row without a break.
Healthy Living. A good portion of your free time needs to be dedicated to taking care of yourself. That means lots of sleep, exercise, and regular check-ups.
Inspired Enthusiasm. What new ideas are you bringing to your team? Take a class. Learn something new. Look outside the industry for inspiration.
BOTTOM LINE PROFITABILITY. This is the owner report card. You can't avoid this until the end of the quarter. It will be too late!
Weekly Focus on Results. You should be looking at and strategizing your revenue, retail and service per ticket, and multiple unit sales weekly.
Relentless Budgeting. Likewise, your budget is your control for expenses, and it should be taped up right in front of your face for daily accountability.
Intense Forecasting. At least an hour a week should be spent forecasting the future by looking at the past. Remember October last year? How are you going to fix it this year if you wait until it arrives?
HEALTHY BALANCE SHEET. If you ever want to sell it or borrow against it, this better look good.
Debt Free Operations. Put it on your card for air miles, but pay it off in full monthly.
Cash Flow Positive. I can show a profit but have no cash. Cash flow is what sustains a business. If you don't understand cash flow, pay someone a couple hundred dollars or give them a gift card to teach it to you.
Saving for Lean Months. You will learn at your cash flow lesson when and how to save based on the ebb and flow of your business. Pay yourself first!
CONSISTENT GROWTH. If you don't grow, you will wilt and die on your feet standing in a pile of hair.
Solid Marketing Plan. You should be working on your marketing plan at least six months forward in the future. Budget at least 2% of revenue.
Lots of Innovation. Clients and staff leave because they get bored. You need to be the idea generator to keep people inspired.
Aggressive Recruiting. Everyone leaves eventually. If you wait until they do, it's too late.
HIGH CLIENT RETENTION. If your salon is a revolving door, it is your problem and costing you much more than coming off the floor. I promise.
Staff Connects and Accountability. It's simple. Your job is to make sure they do theirs. It's not personal; it's business.
Consistent Service Experiences. Clients need to have their expectations exceeded every visit.
High Retail Sales. It's a fact: The more they buy, the more invested they are in your business and the more often they return.
HIGH STAFF RETENTION. If it is a revolving door it is your problem and costing you much more than coming off the floor. Sorry, same as above.
Juicy Morale. Create a culture free of paranoia where people feel as if they have a voice and make a difference.
Inspiring Education Program. It takes several days a month to put together a program that keeps people at all levels inspired. The senior stylists need a higher level of inspiration.
Attractive Benefits Programs. Another important focus to stay competitive--you need to think outside of the box on what you can economically offer to be unique.
Remember, your job is to do only the things that no one else in your business can do. Don't just work there. Own it.
Inez Gray is the dedicated visionary behind Habitude, one of Seattle's
premier salons/day spas. Inez's personal mission statement is to joyfully
inspire others. You can reach Inez at inez@habitude.com. Or you can find
her insights--and those of other successful salon owners--on the TSA
listserve. To subscribe, email info@probeauty.org.