Chelle Neff: Here Are The Things That Happened in My Childhood That Impact How I Lead Today

An Interview With Cynthia Corsetti

Structure: When I initially opened my salon company, I allowed people to come and go as they pleased and set their prices. I maintained this model with employees as well. However, after barely breaking even for the first eight years, I decided to hire a consulting group. The first significant change we implemented was a restructuring of our pricing. The results were instant. I went from having an average of a negative $2,000 in the bank to over $50,000 within three months. We introduced a level system and scheduled monthly personal development meetings with all of our staff which tripled our gross profit within 2 short years.

In this introspective and reflective series, we would like to explore the intricate web of experiences that form the leaders of today. Childhood, being the foundational stage of our lives, undeniably has a profound impact on our development and the leadership styles we adopt as adults. Be it a lesson learned from a parent, a childhood hobby that cultivated discipline, an early failure that fostered resilience, or even a book that opened their minds to vast possibilities; leaders often have deep-seated childhood experiences that echo in their leadership narratives today. For this interview series, we are talking to seasoned leaders across various industries who share personal anecdotes and lessons from their childhood that have sculpted their leadership philosophies today. As part of this series, we had the pleasure of interviewing Chelle Neff.

Chelle Neff, the CEO and founder of Urban Betty, has been innovating and impacting the salon industry for decades. She created Urban Betty, one of the largest independently owned hair salons in Austin, Texas, to be a community rather than just a one-stop shop for haircare needs. As a member of the Forbes Business Council, the Female Founders Collective, and Impact Austin, Chelle is constantly learning, growing, and innovating. Having been in the salon industry for 28 years, she is eager to teach others and give those in her community the skills to accomplish their dreams.

Thank you so much for joining us in this interview series. Before we dive into our discussion about leadership, our readers would love to “get to know you” a bit better. Can you share with us the backstory about what brought you to your specific career path?

I began my journey as an entrepreneur by starting as an employee in the salon industry. I had known from a young age that I wanted to work with hair, so I eagerly enrolled in cosmetology school while I was still in high school at the age of sixteen. This opportunity was unique as it allowed me to pursue a true passion of mine. During my junior and senior years, I attended regular classes for half the day and spent the other half in cosmetology school.

Upon receiving my license, I began my career by working at Supercuts. Over time, I gradually progressed to higher-end salons. Five years later, I secured a small suite at the Gallery of Salons in Austin, Texas, and became an independent contractor. This was my first step toward establishing my own business. In 2005, Urban Betty opened its doors and has since expanded to three locations with just over 80 employees.

You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?

1. Be social. A simple conversation with someone can change your life, and it’s usually not something you have orchestrated. Before I opened my salon company, I scheduled coffee dates with 3–4 salon owners in my city, armed with a list of questions for each of them. This action helped boost my confidence, creating the momentum and motivation I needed to get started. There will be moments when people unexpectedly drop nuggets of knowledge into your life. Trust in that guidance.
2. Get comfortable with the uncomfortable. I once asked my business coach, ‘When will things get easy?’ She chuckled and said, ‘If you want to keep growing, your business will constantly be changing, and you will have to evolve with it. There will always be a “fire” to put out.’ I now know that the building isn’t always burning down. Learn to accept the things you’re not okay with. If something isn’t falling into place, the harder you push to make it happen, the worse you’ll feel. Looking back now, with three locations, I can tell you that when things went a bit haywire or crazy, I’ve learned that everything somehow, some way, works out.
3. Be flexible. The biggest mistake we can make is setting a strict time frame for big goals that we haven’t yet met. I went through numerous stages of losing people, changing my business structure, and personal growth that had to take root within me. When I started Urban Betty in 2005 with just one contractor, I was focused on opening my salon company, not contemplating where I’d be 15–20 years later. It’s excellent to set goals, but also be open and flexible, knowing that life and experiences will change. Where you end up might be 1000 times better than you ever expected.

Leadership often entails making difficult decisions or hard choices between two apparently good paths. Can you share a story with us about a hard decision or choice you had to make as a leader? I’m curious to understand how these challenges have shaped your leadership.

When I reflect on my leadership journey, there’s a significant decision that stands out. It was when I first opened my salon, and I was faced with the dilemma of whether I wanted to be a “boss”. At that time, I was just 27 years old, and the idea of managing others was intimidating. To alleviate this, I initially opted for a model where I hired contractors who would rent salon chairs from me and essentially run their own businesses within the salon.

However, reality quickly set in, and I realized that this approach had limitations. Even when individuals are essentially operating their own ventures within your business, they still require structure and a cohesive culture to thrive, which ultimately falls on the leader’s shoulders. It became clear that to create the culture I desired and lead effectively, I needed to transition my salon company to an all-commission model.

This shift marked a pivotal moment in my leadership journey. It taught me the importance of embracing the role of a leader, even when it initially felt daunting. In essence, my experience as an entrepreneur played a significant role in my personal growth, helping me find the confidence to step into my own power as a leader.

Ok, thank you for that. Let’s now jump to the primary focus of our interview. Let’s start with a simple definition. How do you personally define “leadership?” Discuss your “character arc” of leadership in the past 20 years

I personally define leadership as encompassing several key elements:

1. Having Drive: Leadership involves a continuous desire to improve and strive for excellence. At my company, we live by the motto ‘Better Your Best.’

2. Admitting Mistakes: Building my salon company has been a journey filled with making mistakes. The ability to admit when you are wrong and, more importantly, to learn from those mistakes is what sets exceptional leaders apart.

3. Connection to People: Staying connected to your company and employees is paramount. The primary reason many businesses fail is due to an absentee owner.

I have been deeply involved in mentoring and training women in my salon company for over 18 years. During this time, I’ve witnessed remarkable transformations within my team. I’ve promoted four of my employees from receptionist roles to management positions. Most recently, I extended an invitation to several of my long-term employees to become 2% shareholders of Urban Betty Salon. Witnessing people’s growth within my company is incredibly rewarding. Some of them have been with me for nearly 15 years, starting as assistants and working their way up to the Leadership Team, where they now train other stylists at the salon. Others who began as receptionists are now shareholders in the company. It’s a truly remarkable journey to witness.

Can you recall an experience from your childhood where you felt truly empowered? How does that moment inform your leadership style today?

My parents had me when they were teenagers and lived from paycheck to paycheck during my childhood. In my family, I found myself shouldering a significant amount of responsibility from a young age. I recognized that if I wanted to attend college, I would need to find a way to pay for it myself, in addition to covering my living expenses. This early experience instilled in me a sense of responsibility and a strong work ethic that would shape my future leadership style.

I discovered my natural talent for hairdressing and art at a young age, and at the age of 16, I took the initiative to enroll in cosmetology school. By the time I turned 18, I had become a fully licensed cosmetologist. This path was a more financially viable option for me compared to the traditional college route, which led me to pursue it. A decade later, I realized my dream and opened Urban Betty.

The experience of shouldering financial responsibility for my education and living expenses at a young age instilled in me a sense of self-reliance, resourcefulness, and a determination to succeed. These qualities have been instrumental in my leadership style today, where I take responsibility, lead with a strong work ethic, and encourage others to pursue their goals with the same determination.

Were there any role models in your early years who left a lasting impression on you? How has their influence manifested in your approach to leadership?

Yes, my best friend’s parents were significant role models in my early years. I was fortunate to be like a second daughter to them, spending a lot of time at their house and even joining them on family vacations. Her dad came from a family of entrepreneurs who owned their own sign shop. I had the privilege of witnessing firsthand what it was like to be behind the scenes of a business. At the age of 14, during one summer, I had the opportunity to work in that sign shop. This experience was pivotal in shaping my perception of what was achievable in the world of entrepreneurship.

Moreover, observing my friend’s dad as he went into the sign shop every day and engaged with each person, establishing genuine connections with the employees, left a lasting impression on me. He was not just a boss but a leader who was seen as a real person by his team. This authentic leadership style has deeply influenced my approach to leadership, emphasizing the importance of connecting with and understanding the people I work with.

Many leaders find that their greatest strengths arise from overcoming adversity. Can you share an experience from your early life that was difficult at the time, but you find still lingers in your thoughts and informs your actions today?

An early life experience that was particularly challenging for me occurred when my parents were going through a divorce just before my senior year of high school. At that point, I had already completed one year of cosmetology training and had one more year to go. I was part of a high school vocational program designed for students who were not necessarily on a college-bound path but needed a viable career option. This program was fully funded by the school district, and I only needed to provide my own supplies. It was a remarkable opportunity for a young person like me who lacked the means and support for a future beyond high school.

The predicament I faced was that the divorce would force me to move to a different home and school district, which meant I would no longer be able to participate in the cosmetology program. Fortunately, my best friend’s mom, who was a teacher at the time, made a phone call to the school district on my behalf. She asked if I could continue in the program due to my outstanding grades. This single act had a profound impact on my life, my career, and my future. I often reflect on that critical moment and wonder about the different path I might have taken had I not been given the opportunity to stay in the cosmetology program for that additional year.

Looking back at your childhood, are there particular ‘first-time’ experiences — like your first triumph, your initial setback, or your inaugural leadership responsibility — that you believe were pivotal in molding your leadership ethos?”

A pivotal ‘first-time’ experience that significantly influenced my leadership ethos was my very first ‘real job’ at McDonald’s when I was 16. Looking back, I still consider it one of the most challenging jobs I’ve ever had. Working in the service industry, particularly in the fast-food sector, is a unique experience. It requires dealing with customers in a fast-paced environment, which teaches you problem-solving skills like no other job. That experience taught me invaluable lessons in customer service, cash management, and how to address customer dissatisfaction.

What I didn’t realize at the time was that I would carry these lessons with me throughout my journey, shaping the way I manage my salon company today. From learning how to greet customers to managing cash registers, all those experiences played a role in building the foundation of my leadership style. For instance, knowing how to balance a cash drawer was a skill I acquired during those early days, and it later became a critical aspect of starting my own company. It’s a reminder that the success of a company often hinges on the accumulation of countless small but extremely important elements.

From your personal experiences and reflections, what are the ‘5 Pillars of Effective Leadership’ you believe in?

1. Flexibility: One of the most significant mistakes we can make is setting rigid time frames for our big goals, especially when they haven’t been met yet. I’ve gone through various stages of losing team members, restructuring my business, and making personal adjustments that had to be ingrained in my mindset. When I first started Urban Betty in 2005 with just one contractor, I was primarily focused on launching my salon company and not necessarily contemplating where I’d be 15–20 years down the road. It’s essential to set goals, but also to understand that life and experiences evolve. Sometimes, where you end up can be a thousand times better than what you initially expected. Stay open and flexible to embrace these changes.

2. Structure: When I initially opened my salon company, I allowed people to come and go as they pleased and set their prices. I maintained this model with employees as well. However, after barely breaking even for the first eight years, I decided to hire a consulting group. The first significant change we implemented was a restructuring of our pricing. The results were instant. I went from having an average of a negative $2,000 in the bank to over $50,000 within three months. We introduced a level system and scheduled monthly personal development meetings with all of our staff which tripled our gross profit within 2 short years.

3. Flow: In the world of small business ownership, you must learn to go with the flow. There are numerous fires to extinguish each day. I remember sitting with my business coach and asking if I would ever feel comfortable. She chuckled and explained that different challenges arise as your company continues to grow and evolve. It’s crucial to accept that there will always be obstacles, but the building isn’t burning down. Learning to be okay with the things that don’t go as planned is vital. Pushing too hard to make things happen when they aren’t naturally falling into place can lead to unnecessary stress. Looking back now with three locations, I can confidently say that even when things got a little chaotic, I’ve learned that everything ultimately works out somehow.

4. Support: Building a network of successful people in your industry is crucial. When I first started my salon company, I was essentially on my own. After struggling for nine years to make a profit, I realized the importance of surrounding myself with successful individuals in my field, whom I like to call ‘expanders.’ I found most of these expanders by joining the High-Performance Salon Academy. I recall my first destination training session, where I met over 100 other salon owners who wholeheartedly embraced me and genuinely wanted to help me succeed. I joined a Mastermind group, and we met weekly to discuss what was working, share our wins, and offer assistance where needed. This regular meeting served as a fantastic strategy to stay motivated and continually grow. If you don’t already have an industry mastermind group, create your own!

5. Mentors: Hiring a business coach or consulting group can be transformative. In 2013, I was facing financial challenges and found myself in the negative balance in my bank account more often than not. My banker called me frequently to ensure we could cover expenses, which was both embarrassing and incredibly stressful. However, in 2014, I joined the Summit Salon Business Center and engaged a business coach. Since partnering with the consulting group and coach, I’ve grown Urban Betty’s income over 300%. This success enabled me to retire from doing hair and focus solely on the branding and marketing of the business, which I now love.

In your role as a leader, what thoughts or concerns keep you awake at night? How do these reflections guide your decisions and leadership?

Urban Betty is an extension of who I am, and it’s important to me that every guest who walks into our salon leaves with a smile. We make sure they not only love their new hairstyle but also enjoy their interactions, conversations, and the overall comfort of our space. The aspect of guest satisfaction is often overlooked in business, but it’s something that keeps me awake at night. We go the extra mile to ensure that every Urban Betty guest has a fantastic time and keeps coming back for more.

We take post-appointment communication seriously, tailoring it to each guest. After your visit, you can expect a thoughtful email from us, offering various ways to stay connected. We also encourage our guests to share their honest feedback by leaving a review on Google or Yelp because, in today’s digital age, maintaining a strong online reputation is crucial for any business. Beyond just the appointments, we believe in fostering meaningful connections that build loyalty and trust with our guests.

How can our readers further follow your work online?

Certainly! I am a writer on the Forbes Council so you can read more about my takes on entrepreneurship, business leading, and the hair/beauty industry there. You can also find me on Instagram, @urbanbetty and you can find the salon on Instagram, @urbanbettysalon.

Thank you for the time you spent sharing these fantastic insights. It’s been an honor to delve into the roots of your leadership journey, and we are grateful for the wisdom you’ve shared.

About the Interviewer: Cynthia Corsetti is an esteemed executive coach with over two decades in corporate leadership and 11 years in executive coaching. Author of the upcoming book, “Dark Drivers,” she guides high-performing professionals and Fortune 500 firms to recognize and manage underlying influences affecting their leadership. Beyond individual coaching, Cynthia offers a 6-month executive transition program and partners with organizations to nurture the next wave of leadership excellence.