“Is Your Salon on the Path to Failure? Here’s How to Fix It”
Download MP3Brie (00:01)
Hey there and welcome to Salon Swagger, make bank run the show, ditch the chair. The podcast where we dive into the chaos, the triumphs and all the lessons learned along the way of running a salon or spa. I'm Brie and as always, I'm joined by the amazing Chandra C. Hey girl.
Chandra (00:15)
Hello, hello.
Brie (00:17)
Today we are diving into something every salon owner needs to hear, how to keep your business from becoming a statistic. So I want to kick things off with probably some real talk. Running a salon or spa, it isn't just hard. It is literally next level hard. You're not just some creative genius behind the chair or a skincare magician. You are a CEO. You're the HR department. You are the social media strategist. You are the finance manager.
and you're all of that rolled into one. And while your passion for your craft probably got you to where you are, it's really your business strategy that's going to keep you here. There's no other option. It's how it has to be. So today I thought we would just break down why so many salons fail, what separates the really thriving businesses from the struggling ones, and what people can do starting today to rewrite their story and create a business
that not only survives, but builds the life that people deserve. This isn't just another episode filled with stats. It's really about action and making bold moves in order to secure your future. So buckle up because we are diving straight in today. The reality is, Chandra, unless you've been in the trenches as a salon or spa owner, you just won't get it.
I say this all the time, you just don't get it. Owning a salon, it's not for the faint of heart and it is different than any other business. Would you agree with that?
Chandra (01:48)
100%. Yep.
Brie (01:51)
It's crazy because we own multiple businesses and I can tell you there is nothing like it. It's funny because people that aren't in the industry, they don't agree with me. They just roll their eyes, they shake their head, they say, I'm crazy. But because I've done it, I can tell you it is absolutely true. Here's the gut punch. 20 % of small businesses, they don't make it past their first year. By year five, half of those are gone. And in our industry,
It's even higher. The statistics are even worse. Why? Why is that? One, I think is because of over saturation. The industry is crowded and it makes it a lot harder to stand out. Two is sky-high overhead costs, right? We've got rent, we've got payroll, we've got products, and it all adds up a lot faster than what most people think. Three is the constantly shifting trends. And sometimes people don't put this into the category of why businesses close, but I think it's important.
You've got new services, new techniques, client expectations that are constantly evolving. Number four is burnout. The physical and emotional demands of the job really take a toll. And especially for those people that are trying to perform services and being the business owner all at the same time, it can be a lot. It can be never ending. The next one that I have on the list is stuck in survival mode. Many salon owners are just
stuck working in that business, right? They never have the opportunity to work on it. And by the time they look up, everything has gone downhill and they don't know what else to do. Here's the thing, salons, spas, they don't fail because of one big catastrophic event. That's not why it is. It's actually death by a thousand paper cuts. It's like ignoring your financials, avoiding tough conversations.
running on fumes instead of building an actual business plan. So if you are out there and you are feeling us, you're feeling overwhelmed, I want you to ask yourself a few questions. Do you know exactly how much money your business brought in last month and where it went? Do you have systems in place to ensure your team delivers consistent results every single day? Are you stuck behind the chair instead of leading your business from the front? If these questions gave you pause,
If they made you think it is time for you to pivot. And the good news is you can build a business that begins to thrive starting today. Chandra, what do you think makes running a salon or spa uniquely challenging compared to other small businesses?
Chandra (04:31)
I think there's a lot of issues that go into play with salons and spas. think the owners a lot of times didn't know how to run a business when they opened the doors is a big one. I also think when you're working with industry people, your employees, it's different than a lot of other industries. There's a lot of different competition. Like you said, I think there's a lot of different options for service providers and what they want to do. And I think that that's a big reason why a lot of salons get stuck in that trap.
and then the owners get stuck in their survival mode and never move forward.
Brie (05:06)
Yeah, I think that brings up a good point. What is one sign that a salon owner might be stuck in survival mode instead of planning for growth?
Chandra (05:15)
I think that if you're stagnant, are you, is your business not moving forward? Are you not seeing the revenue numbers you want? Are you burnt out? Like, I think those are some really big signs of not seeing that growth and that you need to definitely make that pivot and that change.
Brie (05:31)
Yeah, I would agree with that. I would also say if you yourself are generating the majority of the revenue, that is a huge sign that a pivot has to happen almost immediately, or you are either going to be stuck doing what you're doing until you're 95 years old, or your business is going to have to close. So let's break this down just a little bit and figure out what separates businesses that thrive from those that fail. It's really just the
patterns that you repeat every single day. So first, let's talk about what failing businesses have in common. They focus on their craft. These owners are phenomenal stylist, phenomenal estheticians, phenomenal massage therapist, right? But they neglect the business side 100%. Talent alone is never going to keep a true business afloat. It's just not going to happen. Number two, they avoid the financial management.
So ignoring your numbers is like trying to drive without a GPS or a dashboard. Chandra and I say this all the time. You can't grow if you don't know where your money is going. Number three, they lack clear vision. So without a roadmap, every decision that you make is going to be reactive. And this keeps you in survival mode. I learned this the very, very hard way. And I don't want any of you to repeat my Next, they lead reactively.
So constantly putting out fires and this leaves no time for planning, no time for strategy, no time for growth in any way, or form. Chandra, why do you think salon owners tend to focus more on their craft rather than the business side?
Chandra (07:15)
I think cause that's the easy part, right? Like you're good at that. You're skilled at that. And so you constantly fall back to that as being your main focus because that's easy. And the other stuff is unknown. It's hard. You don't really know what to do with the numbers. You don't really know what to do with the strategy. And so you just kind of keep falling back into service provision or into the part that you know really well and that's easy for you to do.
Brie (07:39)
Yeah, and I think both of us made this mistake, you know, early on in our careers, and it's really the reason why our businesses didn't grow. For those of you that don't know our stories, my business was stuck at about $350,000 a year when I was behind the chair with a really, really big team. And once I was able to get myself out of that position, I finally hit the $1 million mark and then over the $2 million mark with an even smaller team than what I had.
Chandra, share a little bit about how your story looked.
Chandra (08:10)
Yeah, I mean, it's very similar. Like I was the top producer in my salon and I was afraid to pull out from behind the chair. We were stuck and we were stuck, I think in that $500,000 mark or so before I pulled out from behind the chair. But then we've hit over a million dollars. Once I started shifting my focus from that skill set to the business side, we definitely took off like crazy. I mean, it's unbelievable because I didn't think it would happen, but it did.
Brie (08:39)
I love that. What I'm trying to think, how does lacking a vision, like a vision really impact a salon's ability to grow or even stay afloat? Because I think people, forget how important the vision of the business is. And when you're stuck behind the chair, you're never going to see that vision.
Chandra (09:00)
Yeah, I mean, I think you just forget to work towards your vision. I mean, you get so busy with other things that that falls by the wayside. And I mean, I always say this even to my team when they're I always put it in technical terms sometimes for hairstylists, right? Like you can't get from A to B if you don't know where you're going. And so if you don't have a clear vision in mind, like even if you're thinking of a hair color, you don't know where you're going to end up, you can't get to that end result. Same thing with your business, right? If you don't know
what your clear vision is, you're just spinning your wheels and you're never going to actually move forward in that direction.
Brie (09:35)
Yeah, 100%. So let's kind of shift into what successful businesses do differently. Number one is they know their numbers. Every single penny is tracked and accounted for. Number two, they have a clear vision. A strong vision is going to guide every decision from hiring to what services you offer to your pricing, literally everything. Number three, they build systems. Systems are always going to create consistency.
and allow your business to thrive, even when the owner is not available or is not there. Next, they prioritize leadership. So successful owners, they inspire their teams, they set expectations, and that in turn really fosters a positive, positive culture. Chandra, what do you think is the biggest mindset shift salon owners need to make to start treating their salon as a real business and not just
a salon or a spa.
Chandra (10:36)
Yeah. I mean, I think it's pretty simple. Honestly, I think just you need to shift your mindset to being a business owner instead of being just one of the team or one service provider. I think once you actually take that and realize like, I am the one in charge, I am the owner. Then you start looking at things a little bit differently and you start thinking about that vision more and putting things into place that need to be in place in order to reach your end result. So I definitely think.
Yeah, you have to change it to business owner. I think we get stuck in the role of service provider too much.
Brie (11:13)
for sure. And I know that we are huge advocates at the Beauty Biz Agency for systems. Systems are everything. Why do you think systems are such a game changer for a salon or spa success?
Chandra (11:27)
because they make everything run smoothly. Like when you put those systems in place, things run without you. They, your team knows what the expectations are. Your team knows how to handle things and what to do. And without them, it's just you and it falls on you. And then you can't ever get anywhere because you're constantly putting out fires because you didn't have a system in place for those situations. So definitely I think it will take your stress off, freeze up your time. Like you've got to have those systems if you want it to run.
Brie (11:57)
Yeah, mean, success isn't luck, it's a choice. And it starts with breaking free from the patterns that are holding you back every single day. Building systems is going to be one of those. Changing that mindset into business owner is definitely going to be one as well. So now I think we should talk about some of the challenges that salon owners face every single day and how they can flip them into opportunities for growth. So...
Challenge number one is being stuck in that service provision role. And I know that people feel like we preach this all the time, but it's something that you and I have seen not only in our own lives, like we said, but also with the owners that we coach on a daily basis. The reality is if your business relies entirely on your hands, your cuts, your colors, your facials, it is not a business. You can be mad, you can roll your eyes, you can stop listening, but it's true.
It's a job that you have created for yourself. But let's take it a step further. If your personal revenue, because this happens a lot too, is what is keeping your salon doors open, it's an even bigger problem. Your business should never depend solely on what you bring in to survive, nor your personal bank account, because it's never going to be sustainable. You only have so many hours in a day. I only have so many hours in a day. So does Chandra.
and tying your business's success to your ability to physically work. That is a recipe for burnout and financial instability. The opportunity, start transitioning out of that service provision role. It doesn't have to happen overnight. It doesn't have to be something that loses your passion. This can be a gradual process. And here is exactly how you do it. You've got to build the systems. You have to. You have to create your SOPs or
everything in your business. Client consultations, inventory management, systems create consistency. Chandra said this and they free you up from micro managing. Then you have to hire and train a strong team. You heard me right, train. You have to invest in team members that align with your vision and train them to deliver the same level of service that you do. This is going to ensure that your business can be successful even when you're not behind the chair.
Next is delegating intentionally. So start with small task, little bit of admin work, maybe some inventory ordering, things of that nature, and work your way up to the bigger responsibilities because we all know salon owners are notorious for thinking that they have to keep everything on their plate. So imagine this, instead of spending all of your time working in your business, you are able to focus on strategy, on leadership, and on growth.
That is the shift that's going to separate struggling salon owners from powerhouse CEOs. Chandra, what's the risk of being the main source of revenue for your salon as the owner?
Chandra (15:05)
Well, I think the biggest risk is going to be burnout. And I think that you are not going to financially sustain eventually. It might feel like you're sustaining right now because you've been doing it so long and that is kind of the way that it has been. But if you want to actually make money off your business, you cannot sustain financially if you are the one that's doing all of the work.
Brie (15:26)
I agree with that. And I think this is something that isn't talked about enough. Why do you think it is so hard for salon owners to step out of that service provision role?
Chandra (15:37)
I think there's two main reasons that I would say. think one of them is because that's what they're used to and that's what they love and that's what they want to continue doing. And I think the other one is fear. I think they're afraid if they do step out, all of the cards are going to fall, even though that's not really how it usually will work, even though that's what it feels like. Because that's what it felt like to me. I was like, if I step out from this, we're going to lose this much money and we're going to, you this is going to happen. none of that happened because I was shifting my focus to somewhere.
that was actually growing the business. And so I think it's a lot of it's fear and I think a lot of it's being used to doing it the way you've been doing it. So you're afraid to change that.
Brie (16:18)
Yeah, 100%. And I think also there's a strategy behind it, right? And that's why it's so important to find somebody who has actually been successful in what you were trying to do. Because even when we were trying to get you out from behind the chair, you fought me on it just a little bit. You were scared. You just said you were scared. But the strategy that I had in place made it to where it wasn't as big of a deal as you thought it was going to be, right? It kind of gave you that
Chandra (16:45)
yeah.
Brie (16:47)
I don't know, just that calmness and trust in me and in the process. So talk about that for just a second.
Chandra (16:55)
Yeah, I mean, I was definitely afraid to step out. Like I said, when I started going through that journey, I was the top producer. And so that was, that was definitely scary. Plus I love doing hair, you know, it's like we all got into it for the passion of what we were doing. And so, but when you open your business, things have to change. And so I think for me, that transition, I did it slowly. I didn't just leave everybody, you know, I cut back a couple days, cut back a couple more days, focused on certain things. And you start to see.
your efforts in the other areas start to grow and start to work. And that makes it easier to continue cutting more days and more days and giving more of your time to growing the business instead of keeping the lights on.
Brie (17:39)
Yeah, and you found a different passion. Like I have seen you step up as a leader of your business and of your team. And I can see that passion inside of you now that you're able to do different things. And it's a really beautiful thing. I wish more people could experience it and see it because I think their mindset would shift almost automatically if they could see that. Okay, challenge number two is managing the cashflow. Cashflow issues are a common struggle.
Every single salon owner that we have coached or worked with has this issue, but they don't have to derail your business. You can take control of them and you do that by creating a budget that accounts for fixed and variable expenses, tracking every single dollar to identify problem areas and by adding revenue streams like memberships, retail, things of that nature. Chandra, how do cashflow problems typically show up in a salon or small business?
Chandra (18:37)
I think a lot of it is just the non-budgeting when you don't know where your money is going. And our business is expensive. Owning a salon or a spa can be one of the most expensive businesses to run. And so it sneaks up on you very quickly. If you just overspent like an extra thousand dollars that month on products for the retail shelf, and you don't have that extra thousand dollars, then you get yourself into those traps and that hole very quickly into that money pit.
And so I think budgeting is huge. That's why I was not good at that either in the beginning and I like numbers, but I would spend it, spend. I'm like, I have money, let's spend it. And I think in this industry, for whatever reason, hairstylists or estheticians, whatever, we're notoriously just good at spending money. And so I think budgeting tends to be a little bit harder for our brains to wrap our head around.
Brie (19:30)
Yeah, budgeting is definitely a skill, a skill that you have to learn and one that you have to stick by. And we've created an amazing budgeting platform at the Beauty Biz Agency for salon and spa owners that works really, really well. I follow it. Chandra follows it. All of our members follow it. And it is amazing. Okay. Challenge number three is pricing for profit. And this is something that we preach all the time. If your prices are based on guesses or what your competitors are charging,
you're leaving money on the table. So instead, we want you to calculate your cost per hour, including overhead and labor. We want you to build in profit margins that reflect what you need and your expertise. And then we want you to communicate your value to your clients so that they understand why your pricing reflects your quality. Chandra, what's one of the most common mistakes salon owners make when they're setting their prices?
Chandra (20:29)
I think it's setting your price by feeling. They just feel like, I can't charge my clients more than that. Or I just feel like this is a good price instead of actually having data in there to create that price for you and knowing that you set it correctly. Instead, you're just kind of like, that's what I've been doing. So a little bit higher will be OK. And you don't actually know what that number should be in order for you to make money on it.
Brie (20:55)
It blows me away. I see this all over social media and they're like, I'm doing my dollar price increase this year. And I'm like, okay, where did that come from? And they're like, I've done it for the last 15 years. And I'm like, great. And then we get into diving into their pricing and all of that stuff. And they are like way under priced for everything that they need. And their business has been in the negative for the last six years. And so I agree with that.
How do you think owners can feel more confident charging what they're worth, especially with all of this social media crap going on right now?
Chandra (21:34)
Yeah, I think that the social media is definitely out of control with the charging pricing. All this stuff is all in so many different places. And so you hear all that chatter, but I do think you have to create your systems. Like you said, if you have an amazing experience in your salon or spa, then your price should reflect that. And I think that's where people sometimes forget. Like I'm offering what I'm offering. If your team is well-educated, if you're constantly updating them.
All of those things matter and so you have to feel comfortable charging for that stuff and I think that's a really big, you know, something you have to look at when you're creating your pricing and it has to be worth it. If you're going to charge them, you've got to be with it.
Brie (22:14)
Yeah, the value, right? That
value matters so much. And you and I were talking about this, I think yesterday, but it's really funny. You know, we think that skill is everything in the beauty industry, and it's just not. We have surveyed a ton of salon and spa clients, and they would rather have an amazing experience with maybe not the most skilled technician, but that experience and that value matters so much.
that they will overlook little things. And so I don't think people put enough emphasis on the value.
Chandra (22:49)
Yeah, for sure.
Brie (22:50)
All right, challenge number four is leading a team. And this is a big one. Leadership is about more than managing. It's about inspiring. So you want to focus on defining your culture and your values, setting clear expectations and holding your team accountable, and then regular training and mentorship to keep your team motivated. Chandra, what's the biggest challenge you think salon owners face when it comes to managing a team?
Chandra (23:19)
I think it's having hard conversations and sticking to your own rules, honestly. They put these things in place and they don't uphold them themselves or hold people accountable for those. And then they can't figure out why nobody's following it. And so I think it definitely, how you want your business to be is how it needs to be. And you have to be the one to hold them accountable and have those hard conversations when you have to have them.
Brie (23:44)
Yeah, definitely. think probably 80 % of commission salon and spa owners run their business off of fear and scarcity when it comes to their team. They don't want to ruffle feathers. They don't want anybody to get mad because they may leave. And that can't happen. Like you have to have rules. You have to set expectations. You have to hold them accountable. But just like Chandra said, you have to make sure that you are following everything to a T yourself.
Chandra, how does a lack of leadership really affect team morale and performance and productivity in a studio?
Chandra (24:21)
Yeah. mean, the lack of leadership is huge. I think that you will create a toxic environment for yourself. I think that your team will end up creating your culture for you, which may not be the culture that you wanted for your business. And I think that it starts running in chaos. Like people don't trust you. They don't want to follow you because they, there's no leadership there. And I think that's one of the hardest things that owners have to deal with is learning how to be a good leader in their business. And then I think also.
showing that to your team and building a team off of that so that they're part of you, like they're an extension of your leadership. And I think that's one of the biggest issues. And I think that's hard, it is hard, but once you can get that down, I mean, you will build your dream team.
Brie (25:09)
Every challenge is an opportunity in disguise. All you have to do is shift your perspective and take action. Things will change drastically. Let's talk about why it really matters to rely on your own hands to keep your business afloat. I think this is something that we really have to dive into just a little bit because we've said it so many times, but I think there's so much more depth to it that people tend to just push off. So if you're behind the chair full time,
and your revenue is what's paying the bills. Let me say this very, very clearly, really quickly. You're putting your business and your future at risk, like seriously at risk. Why is this such a problem? Because your growth is capped. People miss this point all the time. You can only see so many clients. You can only service so many people. You can only raise your prices so much. When you are doing that 24 seven,
You can't scale your business. Growth requires a space, a space to plan, strategize, and execute the things that you've created. If every hour is tied up in client services, you are stuck in this cycle of working just to stay afloat. It's a really big risk and life happens. What if you get sick? What if you need to take care of a family emergency? Or dare I say, what if you decide that you need a vacation?
If the revenue stops every time you're not physically in the salon, your business is not sustainable, period. And let's be honest, this approach, it isn't just risky for your business. It's risky for your health and for your wellbeing. Constantly running at full capacity, it will lead to burnout. Chandra said this earlier. And when you are burnt out, your ability to lead and grow is pretty much non-existence. Non-existence.
So how do we break free from this trap? The only way to do it is to step into that CEO role. This means shifting that mindset from being the star player to being the coach. You're not just a stylist or technician. You are the leader. So quit telling yourself that you're not because you are. Your focus has to be on big picture strategy, not day-to-day tasks. You have to empower your team. This is where those systems and the leadership actually comes into play.
Train your team to take on responsibilities. I don't care what it is, servicing clients, managing inventory, handling the front desk, whatever it is, the stronger your team is, the less your business is going to rely on you. Diversify those revenue streams. This will be a game changer. Add memberships, sell freaking retail, make packages, and even do some training programs for other professionals in your niche. This is a really good way to kind of have your team collaborate.
These streams are going to generate consistent income that isn't tied to your personal output. Here's the vision. Your business should thrive whether you are in the salon or whether you are on a beach somewhere. That's what sustainability looks like. And it's the freedom that every single one of you out there deserves. It really is. Chandra, why do you think, let me put it this way, what do you think is the biggest limitation of a salon owner?
being the primary revenue generator for their business that we haven't talked about yet.
Chandra (28:39)
Well, I mean, I think the biggest thing that limits that revenue is really them getting in their own way. And I know we kind of talk about it a little bit, but I think you have to stop doing all of those other things and focusing on your business. That's the only way it's going to go anywhere. And like you said, I think most of us did not open our salon or spa to work this way. Most of us thought I'm going to open a business so that I'll have time and money to go sit on a beach.
But I think you didn't realize that that wasn't gonna just happen overnight. And then you got stuck in this position that you're in and you don't know how to get out of it. And I think that's really the biggest limitations is you've got to get out of your own way. You got to get over it. And you got to just start stepping into that role and becoming that owner, that CEO, that leader.
Brie (29:28)
Yeah, and you just said you've got to become that owner. You've got to become that CEO. A lot of people don't quite understand what that means though. So what does it look like for a salon owner to fully step into that CEO role?
Chandra (29:43)
Yeah, I think it's just creating those systems so that you have a business that runs smoothly. It's being able to know your numbers and managing your money efficiently. And I think it's understanding that you are the leader and you are the one that's on top. So you have to step into that, have that mindset shift and step into that because you, again, like you said, you just have a really hard job. If you aren't stepping into that CEO role, you're just working to work and keep the doors open.
And I think that you have to step into that and that's what's going to be the game changer for your business.
Brie (30:19)
Yeah, I mean, you look at it. We say it all the time. You look at different businesses. I don't care if it's a small business, medium sized business or a corporation. That CEO is never flipping burgers. That CEO is never sitting there having meetings with clients, right? Like they are focused on the biggest things. It is what it is. Let's talk about the five pillars of business longevity. So if you want to build a salon that is going to last for decades, not just a few years,
you have to lay the right foundation. You have to. So here's the five pillars that will really just help you create a business that's not only profitable, but also sustainable and scalable. And you have to have all three of these things, profitability, sustainability, and scalability. So the first one is that clarity in your vision. What is your end game? Seriously think about this.
What do you want your business to look like in one year, in five years, in 10 years? Are you aiming for financial freedom? Do you want a business that you can just completely step away from without it falling apart? Is your goal to create a legacy for your team and for your clients? Clarity and vision, it means knowing exactly, I mean exactly where you're headed. It is your North Star that guides every decision that you make.
whether it's hiring, whether it's expanding, whether it's investing in new equipment, it doesn't matter. Without a clear vision, you are just reacting to whatever comes your way, whatever comes your way. Chandra, do you remember a time in your business where you didn't really have that clear vision? And if so, what types of decisions were you making at that point?
Chandra (32:01)
Yeah, like I think it was a time shortly after I opened that I was stuck behind the chair working, thinking that I had to keep the revenue up and that those other things would come later. And so when I opened my salon, I had that clear vision. I wanted to build an amazing team. I wanted to build a sustainable business that I didn't have to be in 24 seven. I wanted to be able to go sit on a beach and make money. Like that was, that was what I wanted to be able to do when I opened. And then I got stuck in that owner trap and then
didn't really know what to do or not owner trap in the service provider trap. And I didn't really know what to do to get, to get out of it. And I was making decisions that didn't make any sense. I would hire people because they were a body to put in the chair. I wouldn't necessarily hire them because they fit our culture. You know, I would be short on money one week. So I'd work extra hours behind the chair to make that money. Like those are the decisions I would make, or I would purchase things without knowing.
that I have money to purchase them and then I would get myself into trouble. And so those decisions would happen constantly. Like I would constantly make those bad decisions because I wasn't keeping my vision in mind. I was just trying to get through the day and put out the fire that was happening right now. And so those bad decisions led to many, many years of a mess.
Brie (33:24)
Yeah, that chaos, right? Just that constant chaos. Okay, pillar number two is a strong team and culture. Your team is the heartbeat of your business. And the culture that you create, listen closely, that you create is going to determine whether they stay loyal or they leave for the salon down the street. That's all there is to it. You have to hire for alignment. Chandra just said this, not just for skills.
You want to hire people who align with your mission and with your values. Skills can always be taught. think yesterday I was talking to Chandra and I was like, I could teach my husband to be a hairstylist. He's bald, but he could still learn. It's that easy. You have to hire people who align. It's very, very important. You need the right attitude. You need...
the right work ethic, you need those things, yes, but alignment in your vision, in your mission, in your values is so very important. You have to set clear expectations. Your team should know exactly what's expected of them from performance standards to the client experience and everything in between. Clarity is going to eliminate confusion and it's going to create consistency. You have to foster a culture of growth. You have to have ongoing training, mentorships.
opportunity for advancement within your organization. A strong culture, it doesn't just keep your team loyal, it makes them your greatest asset. Chandra, what role does culture play in the long-term success of a salon business?
Chandra (35:03)
Your culture's going to keep your salon sustainable, I think, and it is going to make it more scalable because it is easier for you to step away because once you build that great culture, your team is then carrying that culture on. And so like for my team, even right now, like they protect our culture. And if something happens, they're like on it, you know, and they get upset when something is like negatively against our culture. And so I think if you don't have that, you're going to end up with a
environment, you're going to end up with that chaos happening around you because your people aren't aligned with where you're going. So it's a huge, it makes a huge difference when you build that culture really strong.
Brie (35:45)
Pillar number three, financial discipline. If you don't know your numbers, you don't know your business, period. No, nothing else to say on that one. You have to track every dollar coming in and out from services to retail to expenses. You need to know where your money is going. So you have to set that budget, stick to it. This ensures that you are prepared for things like the slow seasons and unexpected expenses. You have to review your numbers regularly.
Financial clarity equals confidence. That's the best way to say it. Why, Chandra, do you think salon owners tend to just get themselves? I know that they don't look at their numbers often enough, but why do you think that they just get this thought in their mind that they can pull up their bank account, see $10,000 and just start spending before they've ever even paid for payroll for the month?
Chandra (36:40)
I was guilty of this for sure, but I think it has to do kind of with that vision as well. Like if you don't have that clear vision, even your spending has no purpose. You're just spending it. And I think that when you see that money in your bank account and there's things you were wanting to buy, let's say you wanted to buy some new stations or you wanted to buy, you know, a product launch or something like that. You just see that and you think, I got money. I can buy it. You forgot. Like you also have that money already allocated for something else in a week or two.
And so I think we don't pay enough attention to those numbers and what's going on so that we have no idea. We just think, we have tons of money. And so many owners I feel like we work with or I've known in the industry, when they start going through this process, they realize they think they have money. We talk to them, they're like, yeah, I'm fine. I have money every month. I'm profitable. I have this, I have that. And then we start actually going through the financials and they're actually negative every month. And it's just by luck and by chance that they manage to kind
pull it out just to kind of keep things going. But you have to allocate that money. I think that's the biggest thing is we just don't, we just see money and we're like, money, we can spend it. And we don't realize that money has already been spent.
Brie (37:56)
100%. All right, system or pillar number four is systems and processes. Systems are what keep your business running like a well-oiled machine. From how your clients are greeted to how inventory is managed, every single thing has to have a process. You need to document your workflows. What is the step-by-step process for booking a client, handling a complaint, restocking products, write them all down, automate everywhere that it's possible.
Use automation. It's very, very important. And then train your team on the systems. So many salon owners are guilty of creating these systems and then just telling their team members maybe a little bit and expecting them to know, and then going on about their business. A system only works if everybody follows it. Chandra, how do systems really create consistency and reduce the stress in salons?
Chandra (38:54)
Yeah, they make everything run smoothly. Like when you have systems that are set up, everything happens the way it's supposed to happen. And if it doesn't, then you have a leg to stand on to hold people accountable. But if they don't know what's going on, you can't hold them accountable, which makes your system just fall by the wayside. It's not even a system, you know? And so I think when you have those in place, you can step away and then everything's still going to run the way that it's supposed to run.
And if something happens, you have a clear guide to go back and figure out what happened, why it happened, because where was the weak link in the system? Why didn't it get done? So it just takes the stress off of you from putting out every little fire every five minutes, running around like a crazy person, because now you have a system that everyone can follow.
Brie (39:42)
You no longer need band-aids and you are no longer a firefighter for sure. Absolutely. Okay, pillar number five, proactive leadership. Great leadership isn't about putting out those fires. It's about preventing them in the first place. You have to schedule regular team meetings to address issues before they escalate. You have to set goals and create action plans in order to achieve them. You have to be intentional about your leadership style.
Your team is going to mirror your energy and your attitude. So if you show up as a leader that you want to be, they are going to follow that. Absolutely. Chandra, why do you think so many salon owners end up in that reactive mode instead of leading proactively?
Chandra (40:30)
I think it because they're not taking that leadership role seriously and they're just kind of marching around and telling people what to do or just getting too busy to inspire anybody or help them and encourage them to empower your team in your systems and in your processes. Instead, just, you're not really leading anybody. You're kind of managing them. And I feel like that doesn't ever really work in the long run. Like eventually that kind of...
falls by the wayside of people leave or they get frustrated and they don't know what's expected of them. So I think when you can be that stronger leader, you definitely will grow that team. Like you said, you want them to be leaders in your business as well. So they're going to follow that lead and carry on what you are trying to teach them and coaching them. Like you said earlier too, really to be in that, that strong position and know like they can trust you, they can follow you. You're, you're taking them somewhere bigger.
And I think that's what's really important about that leadership role.
Brie (41:28)
I think people often get confused on managing and leading and thinking that they are the same thing, but we have a great episode on that. So if you are interested in that, go back and listen to it because we really break down the differences. At the end of the day, these five pillars work together to create a business that is built to last. They aren't quick fixes, but they are worth every ounce of effort that you will put into creating them. Okay.
So let's kind of bring everything together from this episode because we talked about a lot, but let's talk about how you can start making tangible changes in your salon or spa today. No matter where you are right now, whether you're struggling to keep the lights on or maybe looking for ways to grow, this framework is going to give you the roadmap to move forward with clarity and confidence. Please remember.
It's not about perfection, it's about progress. You are probably going to hear that out of our mouths almost every single episode because it's that true. People think perfection is something that it has to be. You just need to progress every single day. So here's what we've got. Step one, get real about your current reality. This is the first step to clarity, right? Take a hard look at where you are today and ask yourself.
Do I know my numbers, revenue, expenses, profit? Am I stuck behind the chair instead of leading my business? Do I have systems in place that keep my salon running smoothly without me? That's a really, really big one. Step two, define that vision. Think about the future. What is your ultimate goal? Your vision should answer questions like, do I want my business to run without me being behind the chair? How much revenue do I need to live the life that I want? What kind of culture and team do I want to build?
Step three, focus on one system at a time. Don't try to fix everything at once. That is a recipe for overwhelm. I know because I did that. Start with one area and build out from there. For example, document a step-by-step client experience process just to ensure consistency. Streamline your booking system to save time and reduce errors. Create a team onboarding process to train new hires efficiently. Whatever it is, one step at a time. Step number four, delegate like a CEO.
Don't micromanage, delegate. You can't do it all and you shouldn't even try to. Start delegating these tasks to your team members. Have a team meeting about managing inventory or reordering or go to your lead stylist about these things. Assign someone to oversee social media or maybe retail, like your retail area. Train a team lead to handle day-to-day operations so that you can focus on growth. It's really important. Step number five, track your progress and
pivot when needed. Just because my business runs really, really well, that does not mean that I don't ever have to pivot. I have to pivot all the time. Measure everything from financials to client retention to team productivity. Use your data to see what's working and where you need to improve. Check your revenue and expenses monthly to ensure profitability. I actually say do this weekly. Chandra and I are big on this. I would do it weekly if possible.
Monitor key metrics like retail sales, client retention, new client bookings. Keep up with that information. Adjust your systems and strategies based on what all of this data is telling you. Chandra, why is tracking progress such a vital part of running a successful business?
Chandra (44:56)
It tracking your progress is going to tell you where your business is. And then it's going to tell you if there's a red flag you need to look out for, like are numbers down? Are you not profitable in a certain area? If you don't track these things regularly, it sneaks up on you down the road and you realize you are really in a mess. And so I think definitely you have to track these systems and, and that's, or track all of your, your data because then that's what your CRM is for.
I can't tell you how many people we meet out in the industry that don't even know their CRM has reports. And so I think this is very, very important that you learn what your system can do and you start utilizing it to the fullest and know actually what's happening in your business.
Brie (45:44)
Yeah, it's amazing to me how many people don't realize everything that their CRM system will do. Like the answers are literally right at your fingertips. You just have to take the time to pull them up, push the print button and look them over, right? Guys, we just gave you a blueprint so that you can build a scalable, sustainable salon that is profitable as long as you're doing all of these things. Once again, it's not about overnight success. It is about building sustainable momentum.
Take it one step at a time. Don't be afraid to start small. So many people think that if they start small, they're not doing anything. That is not true. The salons that make it and that are financially and structurally successful are the ones that take action. That's the best way to say it. So ask yourself, what is the first step that you can take today to get closer to your vision for your business and for your life? Write it down, then take action. Here's the bottom line.
Your salon deserves to succeed, but success doesn't happen by accident. It's built with clarity, strategy, and action. That's a wrap, guys. If this episode lit a fire under you, don't let it burn out. Take action now. Take the first step today to build the business and the legacy that you've always dreamed of. If you enjoyed this episode, please follow us, share it, and leave us a review. Make sure to follow us on all social media platforms. Chandra, how do they connect with us?
Chandra (47:09)
Yep, follow us @theBeautyBizAgency on Instagram or Facebook. Or you can also check us out at the Beauty Biz Mentors on TikTok. And you can reach out to us by email at admin@thebeautybizagency.com.
Brie (47:23)
and visit our website at www.thebeautybizagency.com for game changing resources, coaching options, and tools that you can implement to grow your business. Now go out there, make bank, run the show, and ditch that chair. Until next time, keep slaying those business goals with a whole lot of swagger.
