Money! How to control it and not let money control you.
Money is the root of all evil; money makes the world go round, money is where the rubber meets the road.
If you are fully in control of the beast of money then this blog will be irrelevant to you. But for 99% of us money is and will always be an integral part of running our salon.
If your are determined to build a great salon you will have to understand your salons role with money, your lack of understanding and resistance to learning about the money side of the salon could cost you dearly.
If you are a salon owner and you know something is missing on the subject, money and how you can make it work for you, if money is a limited resource, in your personal life too, and you don’t have a lot of it to burn and would like more of it, and maybe hoping that I may just give you the answer to making more money in this blog, you are surely wrong.
The subject of money if we peruse it with brutal honesty will make most salon owners feel out of control, even the most laid back salon owner has a tendency to fluff over the task of really digging deeper about money or the lack of it. “We are doing ok, we are growing and we are busy” but are you in total control of your money?
Unfortunately for all of us, as we try and grow our salons to be great we have to have the accountability on ourselves to really search out for the truth. And the truth is few people have a grip on their money at all.
Almost all my clients that come to me come with a problem that is money related, not enough of it, their salon is growing so fast that the bills are getting out of control and that’s scares them. Payroll too big and scared that a bad month might just pull the walls down around them.
Most salon owners resistance to truly understanding the impact money has on the business. You would think all salon owners would want to know how money works in their business. Most owners ignore the money side of running a salon until it’s too late to ignore it anymore. And then become frantic to fix it, before its too late Once the drama has stopped they forget all about the issue and move on. Until the next time. If money is the heart of any salon, don’t you think most salon owners would or should have a grip on it? Where it is coming from, and how often, what makes the money fluctuate and how can you control the fluctuation.
To pay attention to money in your salon is the answer, so if an owner isn’t paying attention does that mean he or she is abdicating their duties?
One of the main questions I get asked is “how can I afford more staff with the money to pay them?” Isn’t that easy to answer. Stop here and see if you can answer that one.
Earn enough money to cover all your bills, then employ. Employ only when demand is bigger than supply, when you are full and turning people away and you know you need help. As you are working and gathering money, putting some away for a rainy day, put some away to help your new employees wages, maybe 8 or 12 weeks. Of course your new employee will not earn their keep straight way. But at least have a plan. Too many salon owners just employ then realise they don’t have enough work for them. The wage bill puts an enormous pressure on the salons finances.
The vast majority of salons are started without any money to back them up, and operate without any money to back them up. For the minority of salons that make money leave enough in the resources to cope with a sudden decline in business.
Money sure is the root of all evil, money surly makes the world go round, money is exactly where the rubber meets the road.
Master money in and money out in your business and you are streets ahead of everyone else.