5 questions for salon and spa success in the New Year

The holiday season is in full swing. More than likely, this means that your salon or spa is busy, the appointment book is full (at least for the next few weeks) and clients are spending money. It’s a good feeling, isn’t it? Of course! Who doesn’t like to a full cash register? But in the back of your mind, there’s a small, quiet voice that’s calling out to you. And, if you’re a proactive salon or spa owner, you’ll know to listen carefully for the one simple question that little voice keeps asking:

What are you going to differently in your business next year?

It’s a simple — yet extremely sobering — question. Can your business, family and staff survive and thrive if you continue status quo? Or, are you ready to really drive the business forward?

Here are five critical questions to determine if you’re prepared for a prosperous New Year:

  1. What’s your plan for growth? Even if this year was wildly-successful for your salon or spa, if you don’t shake things up and fine-tune your thinking, systems and/or culture, there’s a strong chance you won’t see much additional growth in the year to come. Where will growth come from in your business? Is it waiting for you right now? Are there areas in your company where you see inefficiency and potential for improvement? Get your plan in place NOW to start producing revenues from these target areas.
  2. Does your team know how to get there? It’s a simple question. Does anyone besides you, the leader, know where you plan to take the company next year? And if so, do they know how? Do YOU know? Communication is the key to success. Plan your attack, get it down on paper, and then relentlessly communicate that mission to your team. Get them involved in drawing the roadmap. The more they are involved, the more motivated they will be to reach the desired destination.
  3. Who will lead the way? Great communication starts with a great leader. You own the vision of where you want to take your company. You stand at the helm of this exciting adventure. Great companies are built around great leaders. Hold yourself and your team accountable. Cheer their successes and guide them through their shortfalls. Be the leader your company needs you to be.
  4. Where will growth come from? We touched on this point earlier but it bears repeating: Where is the untapped revenue in your business? Is it hiding behind inefficiency and poor systems? Or will it come from new opportunities that are yet to be discovered? The growth is waiting for you, the hard part is finding where it’s hidden.
  5. Are you doing what you love? It’s a powerful question, isn’t it? Do you come to work everyday with a positive attitude, or does your heart sink when you step through the front door? If it’s the later, you need to find a way to turn things around. As the leader of your company, your attitude and happiness level is infectious. Are you trapped behind the chair when you’d prefer to be working on the business? If so, then start researching ways to transition out from behind the chair (Strategies can help). Do you enjoy leading meetings, tending to the books or doing color applications? If not, it’s time to start exploring how others in your company can start taking on these responsibilities. Perhaps it’s time to hire new staff. Just make sure you it makes sense for the business and the bottom line.

I hope this little reminder to listen to that little voice in the back of your head has gotten you thinking about the importance of planning ahead for the New Year. You can do it — all you need is a plan.

 

 

Why fundamentals matter in your salon or spa

I am a big baseball fan. One of the reasons why is because of the great lessons the game teaches us. For example, when a team isn’t playing well for an extended period of time, the manager focuses on the fundamentals of the game. These are the basics such as batting, fielding and throwing. He doesn’t try to get them to do fancier plays or hit only homeruns because that usually makes matters worse. Without the essentials, the great plays don’t happen with consistency, and homeruns, if they occur, can be meaningless. It’s the fundamentals that win games.

The same holds true in business. As a salon and spa consultant, I can’t tell you how many ads, plans and promos I hear about from companies that are looking to increase the number of new customers to their businesses. At the same time, their new customer-retention rates are dismal. So let’s get this straight: They want to spend huge amounts of money to ask new customers to come in to see how ineffective they are at retaining them for the long term? That’s expensive and crazy!

Avoid that in your own salon, spa or medspa by getting back to the fundamentals. Learn how to satisfy your current customers first. Only after you’ve put systems in place to accomplish that should you market to potential customers. If your company achieves excellence, you won’t be spending as much on advertising because you will be too busy serving the friends and family of the customers who recommended you!

Discounts and gimmicks only go so far. Master the fundamentals of customer retention, and you will be knocking them out of the park effortlessly and consistently. The back-to-basics approach has taken many teams from “worst to first.” It can do that for your team too.

Creating a foundation for salon and spa growth

You’d never open a salon without the proper tools — state-of-the-art scissors, top-of-the-line blow dryers and, of course, fabulous, effective products. Similarly, no one would try to run a spa without massage tables, pedi chairs and wonderful scrubs and lotions.

Unfortunately, many owners do try to run their salons and spas without the proper business tools needed to be profitable and successful.

Many salons and spas struggle with cash-flow and figuring out what’s coming in (and going out). Without a clear financial picture, it’s impossible to plan for steady growth, as expenses always pop up. Many owners (maybe even you) start using their personal credit cards to pay the bills — even to cover payroll. It’s impossible to build a strong business without a realistic cash-flow plan.

Numerous other owners and managers grapple with staff concerns, from hiring to pay design to performance evaluations. Some owners have leadership issues, uncertain how to translate their vision to their employees so that everyone is working toward the same goals. Proper communication is one of the first steps in building a successful business, yet it is one of the basics that many salon and spa owners believe they don’t have time for. A culture where employees want to do their best, stay and grow is one of the hallmarks of a thriving, profitable business.

Providing consistent customer service is also difficult for many businesses. As you know, customers expect more — just doing the minimum is no longer effective in today’s super-competitive environment. Surpassing customer expectations in every area of the business is a requirement to develop a loyal customer base that will recommend a salon or spa to their friends.

Do these challenges seem familiar? While perhaps not as glamorous as offering a great cut, a photo-worthy up-do or a creative manicure design, solid business practices are what every salon and spa need to be successful.

The path to addressing these issues starts with you — the leader. Start coordinating your game plan for change now. Now is a good time. And you can find the time to make it happen. The alternative action — putting it off again — will only leave you in a declining holding pattern. If you want change, do it now.

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Looking for the best place to start?

The Strategies Incubator is designed to jumpstart the business side of your salon/spa. In four intense, exciting days, you will learn the basics to grow a strong business, including financials, leadership, teamwork, communication, compensation, employee retention and customer loyalty.

Without a proper business foundation, a salon or spa cannot grow in a healthy way. It may appear to be doing well, but it’s no more stable than a castle built in the sand.

Start building your foundation for success at the Strategies Incubator, June 10-13. Find out more here.

Leadership and Happiness

Along with being the leader of a company comes a whirlwind of feelings, and somewhere intertwined in those feelings is happiness. By happiness, I’m referring to the joy one experiences serving as the leader of a company or organization. And the reason I’m focusing on happiness is simple. In the daily process of leadership, happiness can easily get relegated to a “wish I had it” rather than “I gotta have it” feeling. Why be a leader if it doesn’t make you happy? Why put yourself into situations that cause stress, and even extreme distress? Why subject yourself to criticism from those who don’t agree with how you lead?

So where exactly is the happiness part of leadership? The answer is basic: It’s all around you. You’re just too caught up in the decisions, frustrations, challenges, misfires and backfires to see it. You may be questioning your own leadership abilities, or style of leadership, or battling your own leadership blockages, such as fear of confrontation, or the all-time favorite – procrastination. Yes, it’s hard to find happiness in leadership with all this stuff going on around you and inside you.

You’re probably thinking of asking the business gods, “Please send me some leadership happiness – now.” Remember what I wrote earlier – happiness is all around you; you just can’t see it.

Here are some no-compromise leadership strategies to find happiness in the crazy, stressful and wacky world of leadership:

  • It’s really about people:- Numbers just measure your effectiveness as a leader. If your company culture has toxic waste building up, or if it’s in the fiery pits of hell, your numbers will reflect it. Leaders are the keepers and protectors of the company vision. Leaders inspire others to reach their full potential. If you want to find happiness, make paying attention to your people your top priority. Lift your team up and show them the path to that elusive next level that you want to get to. Flip your mental switches to “positive” and sparks of happiness will begin to appear.
  • Celebrate the good: It’s so easy to become consumed with all that’s wrong with your company that it clouds all that’s good about it. Here’s one to start with: If you’re still in business today, your company is surviving in the worst economic times since the Great Depression. Even if your company is struggling, it is alive and functioning. It had a “win” somewhere. Did you celebrate it? An employee rose to the challenge. Did you celebrate it? You made a tough decision. Did you celebrate it? It’s hard for people to step up and make a difference when the leader forgets how to give a high-five or shout out a “woo hoo.” There is happiness occurring all around you. Take the blinders off and celebrate every morsel of it.
  • Get it done: There is something about checking off “big items” on your to-do list. By “big items” I’m referring to those infamous tough decisions that you know must be made but that you avoid, ignore and procrastinate on. It’s hard to find happiness when you’re stressed and agonizing over a tough decision. It’s even worse when you’ve made the decision but refuse to hit the launch button. In almost every case, happiness resides on the other side of tough decisions. Fulfillment is derived from getting things done. Happiness is the glow of fulfillment. Get it done. Be happy.
  • Lighten up: The mood of the leader sets the tone of the entire company. I’ve seen leaders enter a room and instantly fill it with their funk. When you’re in a funk, you bring it with you wherever you go and get it all over everyone else. You can even spread your funk on the phone, in e-mails and in text messages. There are certainly times when leaders need to be serious. But as keeper of the company culture, you need to lighten up to lift your company up. No compromise.

An Entrepreneurial Manifesto – Part Two

Based on the volume of blog comments, last week’s MMWU clearly hit home with readers. My intent was to reinforce the one sacred and magnificent absolute that every entrepreneur owns – they are in control of their destinies. I presented a no-compromise entrepreneurial manifesto that included such noteworthy points as: Don’t squander the opportunity, stop whining, never get too full of yourself, surround yourself with talent, honor and respect your followers, and that it’s all about the dream.

Entrepreneurs do control their own destinies. But too often, their thinking and behavior get in the way. They hold back when charging forward is the best and logical option. They fail to manage the inevitable stress that accompanies business ownership that leads to self-doubt and feelings of isolation. They get too engrossed in emotional attachments that cloud their thinking and ability to make and execute the best decisions for the company – their dream.

In order to truly control your own destiny, here are my no-compromise additions to my entrepreneurial manifesto:

  • Change first: As a leadership and business consultant, I’m hired by a leader to fix problems. That usually translates into “fixing” everybody else to achieve the results and outcomes the leader wants. After assessing all of the intricacies of the situation to see where the breadcrumbs lead, the source of the problem almost always is the leader who hired me. And getting leaders to change their thinking and behavior is about the toughest part of the work I do. Even when leaders acknowledge their contribution to the problem, getting them to accept and embrace change is like a persistent game of arm wrestling. To live the entrepreneurial manifesto, leaders must not only embrace change, they must live it and model it every day.
  • You are not your company: The company is your dream – your creation. You invest money, blood, sweat and tears into your company. But, the reality is that it is your company – your company is not you. Consider this: If entrepreneurs strike out on their own to control their own destiny, why do they get stuck in their own companies? By stuck I’m referring to being consumed with work 24/7. I’m referring to the micro-management where your leadership tentacles are plugged into every facet of the company. I’m talking about the inability to let go of the controls and lead. Lastly, I’m talking about how owners who become “their company” compromise its value when it comes time to sell. Without the founder, the company is lost. You are not your company.
  • Lead your emotions: You cannot lead without making tough and unpopular decisions. You cannot please everyone. You cannot compromise the integrity and security of the company to avoid damaging personal relationships. You cannot accept mediocrity while fighting to take your company to the next level. You chose to be an entrepreneur. You chose to be a leader. Do it with integrity, respect, compassion and purpose. Making the right decisions for your company is hard when you allow your emotions to rule your thinking and behavior.
  • Do what others will not: You want to be the best? You want to blow away your competition? You want fiercely loyal customers? Then you must do what others will not. It’s one thing to set high standards of performance, it’s another to achieve and consistently maintain and refine high standards. Getting to the next level means climbing a steeper grade. Too many stop when the going gets tough. That’s accepting “average.” Being an entrepreneur means pushing the innovation envelope in all that you do.
  • Push forward when you think you can’t: If you’re a regular reader of my MMWU, you know my passion for road biking. Last week, I did a 68-mile fund-raising ride with my friend Mark through the magnificent scenery of Connecticut’s countryside. As the day wore on, the heat climbed well into the 90s. About a third of the way into the ride, we entered a stretch of relentless hills – many with steep grades that turn your legs into rubber and sap your energy. After an hour or so of this torture and sweltering heat, I was close to throwing in the towel. I wanted to stop in the worst way. I kept pushing forward. It was hard. Really hard. As we headed south toward Long Island Sound, the terrain leveled out. I got my second wind and finished the ride. Mark and I did our high-fives. It’s the same in business. Pushing forward when you think you can’t almost always takes you to a better place. When you quit, you never know the taste of victory.
  • Keep it glowing: Your dream of creating and building a company must be kept glowing as brightly as a silver trophy. It’s why you became an entrepreneur. It’s why you risked everything. It’s why employees were captivated enough to follow you, some for many years. It’s why customers buy from you. There will be those times when the going gets tough and the obstacles appear insurmountable. It’s in these times when you need to keep your dream glowing bright. Dreams can become dusty, tarnished and dented. It’s your dream that keeps you and company pressing forward. It’s always about the dream.

You are an entrepreneur. You control your destiny. Seize the opportunities. Break through the barriers and roadblocks. You know they’re not really big enough to stop you. It’s what entrepreneurs do.

Retaining customers is everybody’s job

It makes sense that it’s easier and more cost-effective to keep a current client than to attract a new one. Some studies show that it costs about seven times more to get a new customer than to keep a current one.

In view of that, it’s frustrating when you see your staff become complacent about customer service, especially with new clients. With so much competition and people spending carefully, it’s not enough to just get by. Customers want to feel important, that they matter to a business.

When it comes to customer service, you’re throwing money away if every staff member isn’t on board to make every client experience as good as it can be.

Try these tips to ensure that every client becomes a long-term customer:

  1. Make certain that front-desk staff is professional and properly trained. A customer starts forming an opinion before even walking into a business! A member of a salon/spa’s front-desk team has as much influence with the customer experience as a stylist. Essential front-desk staff skills include developing and using scripts to ensure results, selling service hours, using technology and dealing with difficult situations. (Check out Strategies’ High-Performance Front-Desk Staff Training. Click here to learn more.)
  2. Get the whole staff to care about offering a great experience. It’s apparent to the customer if staff is engaged and excited about what they do – or if they’re just looking at the job as a way to pay the rent. Whether it’s helping out with a shampoo or bringing a client a cup of tea, every staff member (management, too!) must look at each customer as essential to the business. There’s no such thing as “it’s not my job.” Client satisfaction is everyone’s responsibility.
  3. Add something extra. What would you like to receive if you were going for a cut? Think like a customer. What does it take to make a client go “wow”? A head and shoulder massage? Aromatherapy? A free sample? A bonus treatment? Tea and cookies? Not sure what to offer? Ask your staff and customers for their ideas!
  4. Pre-book every customer. This seems like an obvious step, yet many salons and spas miss this opportunity. Once a customer leaves without an appointment, there’s a chance that person won’t return to your business. Each customer must be asked to make an appointment prior to leaving the business – and a new service should be recommended, as well. If the customer doesn’t want to re-book, find out why. If there’s an issue of any kind, make it right.
  5. Follow up. Personal service can be lacking in today’s rushed world. Call a new client a few days after the appointment to see if the customer was pleased with the experience. If there was some problem, find a way to make the customer happy. Ask for feedback about the appointment. Even if you just leave a friendly voicemail, people will be impressed that you took this extra step. Be sure to reference the client’s next appointment. If the client didn’t make one, the follow-up call is a great opportunity to re-book. (P.S.  Long-time clients will like the extra follow-up, too!)

Creating loyal customers is the responsibility of every team member. When the whole staff is committed to creating an exceptional experience, clients are sure to come back.

Don’t get bogged down by poor staff relations!

Have you ever walked out of a business and felt covered with toxic ooze from the in-fighting among employees? Or by the way the owner clearly favored one staff member over others? Or there was so much gossip and negative chatter that you just wanted to put your hands over your ears and hum so you couldn’t hear it?

Whatever you see and hear in your company, customers are also witnessing. Profitable businesses need staffs where employees are held to equal standards, where gossip isn’t tolerated, and where owners and managers know when to step in to ensure a positive experience for clients.

  1. Be consistent. This is why it’s so important to have an employee handbook, explaining duties, breaks, etc. When it’s in writing, everybody knows what’s expected. Don’t play favorites. Enforce rules consistently.
  2. Keep it about business. Sure, there are employees you like more than others. That’s called human nature. Your employees aren’t necessarily your friends. Evaluate performance based on, well, performance. Whether you like someone’s car, boyfriend or music choices has nothing to do with how they do their job. Unless something personal is interfering with job performance, keep it out of the conversation.
  3. Don’t get dragged into gossip. Almost everybody likes to gossip. It bonds us together as we find common gripes. As the boss you must stay above this to keep your credibility. And when you talk about employees behind their backs, you are not only betraying trust, you are playing favorites. Rise above. When you hear employees gossiping – whether or not you are invited to join in – ask them to stop. Gossiping is a surefire way to breed negativity in your business.
  4. Handle situations as they arise. Yes, it’s easier to “let it slide, just this once.” When you do that, you’re setting a precedent, for that employee and for the rest of the staff. “If I was late last week and it wasn’t a problem, why should it be an issue today?” “If Mary didn’t empty the trash, why are you upset that I’m not doing it?” If you see it and it violates the rules or isn’t up to your standards, say something. Let employees know where they stand.
  5. Know when enough is enough. When you’ve spoken to an employee about rules violations, given written warnings and offered suggestions for improvement, it may be time to consider a separation of employment. Don’t go it alone. Check with an attorney to ensure you’re doing it by-the-book. That’s usually not an easy choice to make. Once it’s done, frequently, the whole staff will breathe a sigh of relief – and you will, too, when you’ve moved on.

A client’s experience is based on more than just the quality of the specific services received. Do everything you can to ensure that the atmosphere in your company is inviting, friendly and welcoming. Difficult conversations should not be held in front of clients. Visiting the salon/spa/medspa is a respite for your customers – give them the peace they desire and deserve by keeping the drama out of your business.

Success is in the details

We’ve all heard the saying, “Worry about the little things and the big things will take care of themselves.” While no one would necessarily advocate skipping the mortgage payment because you’re making sure there’s plenty of soap in the dispenser, there’s quite a bit of wisdom in the adage.

Too often, we get wrapped up in the big issues that frequently are out of our control. We truly can’t personally jumpstart the economy, stop a competitor from setting up shop nearby or keep that storm from hitting just on our busiest day.

What we can do is take control of the myriad details that customers notice every time they’re in your business, the type of details that might be easy to let slip through the cracks, especially when crises arise.

Start by adopting these practices:

  1. Say what you mean, mean what you say. Whether you’re speaking to a client or an employee, choose your words carefully. Don’t speak in the heat of anger or make promises you can’t keep. Your words are a tool. As someone in charge, you can be certain that what you say will be remembered and dissected. Choose words wisely.
  2. Make sure every hair is in place. There’s a reason that became a phrase to describe someone who is “put together.” Your client’s experience is more than one facet of your business. Don’t think that a great service is going to make up for a difficult front-desk encounter, a messy bathroom or being out-of-stock on a favorite product. Every detail needs to be in place – every time.
  3. Getting by isn’t good enough. Sometimes it seems as though no one is going to notice if you cut corners, just this once. The trouble is that someone might take note of that missing detail and not come back. Plus, it’s really easy to let “good enough” become the new standard. Insist on excellence. Show your staff how it’s done.
  4. Put the systems in place. It’s much easier to excel when there are systems to help you get there. Don’t make your staff reinvent the wheel every day. Systems save a lot of unnecessary questions, a lot of unnecessary guesswork and a lot of unnecessary mistakes. Get the details down once and train the employees who need to know. More things will get done right, every time. The result? Smoother operations and less wasted time.
  5. Don’t use the details as an excuse. The “little things” are important, for sure. Don’t confuse “busy work” with taking care of the details of running your business. When you find yourself color-coding your filing system for the fourth time or changing your Facebook status again or alphabetizing the herbal teas, you must ask yourself if you’re just putting off a bigger task. Chances are that you are. And don’t chalk it up to being a “perfectionist.” Some details are worth fussing over; others aren’t.

Paying attention to the details is what separates the ordinary from the extraordinary. True, the major issues won’t just take care of themselves; however, the small day-to-day details certainly won’t, either. And those could be the make-it-or-break-it details for your business.

Cultivate an awesome workplace

Every year Fortune magazine compiles a list of the “Best Companies to Work for.” While everyone likes a big salary and loads of vacation time, most of the companies that make the list offer a number of intangibles and seemingly insignificant perks that all add up to an exemplary work environment.

If you find that the atmosphere in your business is sometimes less than ideal, try the following make your workplace one to be proud of:

  • Choose your mindset. A great workplace starts with the attitude of the owners and managers. Employees take their cues from those in leadership positions. Our moods are contagious. Even when times are tough, smile. Offer encouragement. Pay a compliment. Laugh. Your employees will follow suit. And that makes for a much more pleasant work environment. Your customers will notice the difference, too.
  • Think like an employee. Or even better, ask your staff members what makes a difference to them. Maybe you can tweak the way you do the schedule so your staff has more weekend time off. Or perhaps they would like a change in dress code. Bring in breakfast one morning or have a potluck dinner and brainstorm together. You might be surprised that some of the things that make the biggest difference don’t involve a lot of money. And you might discover that you and your staff have opposite ideas about what kinds of incentives really matter.
  • Empower your employees. Frustration often grows when people feel as though they don’t have any say over their destiny. Give up control whenever possible and let team members work things out by themselves. Give them a voice in major decisions, as well. Even if you don’t always agree with them, listen with an open heart and acknowledge their opinions.
  • Think about the little things. Every day is made up of countless small tasks and moments. Come up with ways to make the ordinary extraordinary. Say thank you for something you usually take for granted. Buy bagels, pizza, candy, fruit or other food – just because. Leave notes of gratitude for your employees. Never assume that they know they’re appreciated.
  • Have fun. It may sound simplistic, but fun workplaces are great businesses to work at. Yes, there are deadlines and difficult clients and orders that don’t come in on time. But people who laugh together and enjoy each other’s company weather the difficult times more successfully. Look for the humor in everyday challenges. Find ways to make mundane tasks fun. You and your staff spend a lot of time at work. Making that time enjoyable will go a long way toward having an awesome workplace.

          It takes a lot of effort to ensure that your business is a great place to work. The result is worth it. Extraordinary workplaces feature employees who are excited to be part of your business and who are fully invested in your company’s success. That’s the type of place that customers will want to return to again and again.

          Prepare for the worst of times

          From oil spills to hurricanes, flash floods to tornados, the news is full of frightening headlines. The truth is that disaster can strike anywhere, at any time. Even scarier, you can’t be fully prepared for a catastrophe. However, there are certain steps that will help make a disastrous situation less devastating.

          While no one likes to think about the worst that can happen, planning for disaster may be the difference between losing a business and re-opening in a timely manner. These tips will help you be better prepared, come what may.

          • Expected the unexpected. True, you never know when a disaster will strike. Floods, earthquakes, ice storms, landslides, oil spills, fires, employee illness or death, and terrorism are just a few of the catastrophes that can befall a business. You can be fairly confident that, sooner or later, you’re going to have to deal with some sort of troubles. Certain parts of the country have higher risks for hurricanes or other natural disasters. Learn specific risks for your area, so you can take appropriate preventative action.
          • Have a disaster plan. Decide information such as what records need to be stored off-site and where to keep them, and how to notify your staff in case of emergency. Make sure that all your insurance is up-to-date, including flood insurance, which many people neglect to purchase.
          • Know your strengths and weaknesses when it comes to coping. Some of us like to take charge right away, while others show their strengths as the crisis wears on. Know where you might need help and secure a co-commander ahead of time, someone who complements your skills and style of leadership. Remember, your employees will need lots of direction and reassurance.
          • Get your staff involved now. For example, enlist your team in developing an evacuation plan, putting together safety kits and marking emergency exits. Make a point of reviewing the plan on a regular basis and be sure to go over it with new hires. Make sure your staff understands the plan. Talk to your local police and fire officials if you want more assistance.
          • Be prepared for small crises, too. A broken dryer or temporarily closed road certainly doesn’t have the same magnitude as a fire or extended power outage. But such small crises can have significant impact on your business, as well. Have a plan for these extraordinary incidents, from how to pay for them to how to notify staff and customers.

          Crises are a fact of life. Whether you have a few hours warning or it takes you totally unaware, remember that your employees will take their cues from you. Breathe deeply and stay calm. Your staff needs to see the competent leader you are, through the difficult days and as you navigate your way back to more ordinary times.