Employee Agreements - Commission Structures - Salon Pricing - Correct Client Billing - Professional Product Use - Product Wastage - Profitability - Sustainability - Theft (stock & clients) - Old Habits - Fresh Starts and more.No matter what your experience or how good an operator you are, it seems the headaches never stop.
The bottom line is a business must be setup to profit by a fair exchange of value for everyone concerned within it.
The 'Happy Business Cycle' works like this:
The Business rewards the Owner by what the Owner does for the Team,The Owner rewards the Team by what the Team does for the Client,The Team rewards The Client by what the Client does for the Business.
It's pay it forward to be rewarded; only that if the value of exchange is not fairly built in, the cycle stops, because somewhere in the cycle someone will eventually stop putting in because they're not getting what they need back out.
Fortunately the buck always stops / starts with the Owner.
Unfortunately, especially for the adopted practice of many salons in US in particular, where the majority opt for chair rental or 100% commission, too much ownership has been handed to the team.
If that's working for you, by way of measurable sustained growth and profits - great. No need to fix what isn't broken. Happy Team, Happy Clients, Happy Business, Happy You.
But if your team keeps leaving, your clients keep leaving, your money keeps leaving, more often or faster then these should, where does that leave you?
If you feel you're still in it to win it, you'll probably find your team and your clients are too, (so long as there's going to be a good exchange of value remember), so why not invite them to continue the journey with a renewed sense of focus. A focus on the numbers. It's what ultimately the business will live or die by, so you must take the time to get them right and the team will need to know what numbers they will be responsible for and what they get a share of when they do take responsibility. Client numbers will follow once the owner and the team work their part of the plan.
Nexus Revolution begins working the numbers based on calculating the profitability of every service you provide for every team member that will be providing it. This takes into account service timing standards for each salon level of experience and how much back bar product or other consumables is required to complete the service, so there's no further need to add-on charges or fees to clients or the team.
From here we workout a fair way to share salon income from services and retail based on the individuals experience level and consistently proven track record, for performing at an agreed standard across all measurable targets; by way of a Salon Progress Ladder to reward and motivate everyone based on what they individually want to be held accountable too - which avoids trying to make a one-fits-all policy that can seldom be fair. See http://salon-management-nexus.blogspot.co.uk/2012/03/whats-best-compensation-model-for.html for more info.
Once sustainable and profitable accountability on the numbers is restored as the 'why' the owner and the team are taking the same business journey together, we continue building the business foundations on 'what' we are here for - how it is we do the business and what it looks and feels like for the team to work there and the clients to experience, which brings us to the 'who' we do this for and how often we do it - the 'when'.
Want to know more on the 'how'? Visit http://www.nexusrevolution.co.uk with 15 years experience helping 100's of salons and 1000's of people when can assist with your next necessary step.
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