Business & Money 14-Day Challenge
As we begin the new year, I would like to invite you to a challenge to revamp your business strategy. As a salon professional, you have to [set] the business and financial aspects of your business in order to grow or scale your business.
Own your practice—even if you are an employee of a salon or a renter—as if you were running your own salon. What better time to start than now?
In the next 14 days, you can set your business and money matters straight. Get all your ducks in a row this 2021.
Day 1 Track Cash Flow
A while back I talked about the importance of staying on top of your finances and knowing your cash flow. You can read about it here [insert link here-https://upyoursalongame.com/3-proven-strategies-to-embrace-the-new-normal-in-your-salon/ ]
Create a cash flow projection chart. Name the 1st column heading as “Income”
Add space. The row below, “Expenses”. List everything you can think of, from personal to business. If you want, you can list them in sections
For 2-12 columns, plan out the months of the year. These numbers are projections, then as you go, replace them with real numbers.
Day 2 Your Money Book
Purchase a small notebook that you can carry in your bag. If keeping track of your money is new to you, write down every expense at the moment, before you forget.
Charting your income and expenditures will inform you of what you need to bring in and what you need to cut back on.
Day 3 Keep Receipts
When you get home from out and about, place all your receipts in an envelope for the month. Make sure you have recorded every purchase in your notebook, and they match the receipts.
At the end of every month, total Out of Pocket Expenses (Oops) and record in your notebook. Your bookkeeper will want to know this number.
At the end of the month, make it a date with yourself. Turn on some music, light a candle; make the experience of working with your numbers a pleasant activity. Now, enter all the totals for each category.
Day 4 List Your Financial Goals
On another page in your notebook, list your financial goals for one, three, and five years from now. You will return to this page over and over and over. You can revise as you go.
But keep in mind, sometimes it is our nature to give up too early if one of our goals seems impossible. So keep notes, don’t erase or cross them out. Just keep adding as you move forward.
Day 5 Revisit Your Fee
Note if your take-home pay fluctuates. Here are key questions to ask for this exercise.
- Is your pay based on each client you see, or are you making minimum wage?
- Do you know what it will take to move you up to the next level?
- What is the next level for you?
- Do you make a commission? What is the split?
- How long have you been at your level of pay?
- Is it enough money for you to pay your expenses and save?
If you are unable to pay your expenses at the end of each month and save, it may be time to figure out another income stream.
Stay with it. Be proactive. Get to the end of the challenge and see if you feel any differently towards your business and money.
Day 6 Measure Client Retention
Knowing your client retention rates is vital to regulating customer service and will help earn you a raise.
The following is the goal for stylists:
New Clients 33%
Existing clientele 72%
Record the three same months for this year and two years prior.
Create three columns in Excel or on paper.
Label 2018, 2019, 2020
List your clients down the first column.
Mark x’s across the columns if these clients remain with you
Total the number of clients from the first column.
Determine the total number of customers in Column 1 at the beginning of the three months
Determine how many new clients in the three months in Column 1
Determine the total number of clients at the end of the three months
Subtract the number of new clients from the total number of clients at the end of the period
Divide that number by the period (3=three months)
Multiply that number by 100, and this number is your retention rate.
Day 7 Education vs. Sales
Retrain your brain.
If you are a stylist, then you are in sales. You sell yourself every day.
Sales = Education. Educate your clients on what you are using on their hair and why.
Ask yourself how you can improve your communication with your clients.
Pick a favorite trio for the month.
Track each client and the products you suggest.
Track if they purchase and total sale without tax.
Day 8 Track Add on Services
Keep your daily tag, which lists out your clients for the day.
Next to the client’s name, write in the fee for services.
List any add on services and the amount.
These add on services can be in the form of:
- Express treatments
- Hair Masques
- Face frame Balayage
- Fringe trim
Day 9 Build Your Brand
Even if you are an employee at a salon, you need a website to build your brand. The sooner you learn to promote yourself, the more successful you will be. It’s the steady, slow build that pays off. There are free templates; get one.
Have a logo designed that reflects you…you can take your time with this; it’s not completely necessary for the website in the beginning. You could use your initials as your logo. Have a design student help you out, or outsource.
Your website can be fun to build with your colors and your photos. Always use pictures of your work. This way, your clients get to know your work, your brand.
Promote a one-page site when you are out and about, with a card that has one. Place a QR code on the back that they can quickly access.
Day 10 Build Your Email List
Build your email list NOW.
Slowly build your list with an exciting lead magnet. Have a graphic designer help you design a five-page give-away. Think about if you were a client, what would you like to know? What questions do your clients ask?
This email list can help you build a loyal clientele by letting them know what is new. Maybe once a week, or once every two weeks, send them an article, or a fashion inspiration, or a picture of a new haircut you just learned.
This weekly email can have a link to the salon page to book an appointment.
Day 11 Invest for Peace of Mind
Talk to a trusted investment group like Charles Schwaab or a financial advisor to learn about your investment options.. Invest your money early in a retirement account, and you will experience less stress down the road and weather ups and downs in your client flow with more ease.
Day 12 Build Your Online Presence
Choose one or two platforms and call it good. You don’t need to be the master of all things. Commit to showing your work. Be sure to get photo releases signed and file them.
Here are some post suggestions to maximize engagement:
- Hairstyles and fashion that inspires you.
- Behind the scenes in your salon
- Stories about a day in your life
- Quick tutorials via Live Videos or reels
Day 13 Send A Postcard
Send a note once a quarter to your clients; handwritten is always lovely. The photo can be a collage, or a picture of a haircut or color, or both. Make it fun and representative of you.
Remember fonts and colors that stem from your website should be consistent on social media posts and any handwritten notes.
Day 14 Commit to Self-Education
Remember, continuing your education is essential to your growth as a hairstylist, no matter how long you’ve been in the industry.
Craft is not the only education you need. You need business and money coaching throughout your career.
Work with a coach. Cut through years of trial and error and keep yourself accountable.
Begin your education by knowing which area you need to work on first. Take the Up Your Salon Game Quiz here to get started.
Your Next Steps
How did the whole challenge help you? Change your financial and business practices? I’d love to know how it went for you. Got questions? You can shoot me an email anytime at [email protected]