Wednesday, September 2, 2009

Who Else Wants To Make Money Not Working Behind The Chair? Part I

I Do!!

When I first opened up my salon and spa I knew I wanted to own a business that 1)made me money!!! 2) I didn't have to work everyday at and 3) would provide jobs for other people. Well, knowing I wanted it and knowing how to make all that happen were two different things. At some point I realized I was consumed by the business –and maybe the possibility of losing it. This fear compounded by the fact that I had to do every important thing myself, because I didn't have the necessary infrastructure, was driving me to the point of exhaustion.

If this is where you are – you need to change the way you’re looking at your world. You don’t own a business – you own a job!

Then I was introduced to the concept of working “on your business, not in it.” It belongs to Michael Gerber, who wrote about it in his best-selling book The E-Myth Revisited. I’ll touch on the concept here, but I strongly suggest you read the book -you’ll never look at your business the same again!

The ultimate goal of working ON your salon or spa should be to have it function as well as possible without you. In other words, it’s an investment! If you do, you will own something that is valuable to someone else and you the have the option to sell it. If all you own is a job, don’t expect people to line up at your door to buy it.

Your objective should be:

1) To get your salon or spa to the point where it is NOT dependent on you!
2) Develop your employees to do things without your involvement.
3) Figure out how to give your customers what they want, without having to go through you.
4) Have your employees take care of the day-to-day tasks, freeing you to focus on the more strategic issues.
5) Build a model for your business that ensures things get done right at the first point of contact.

Getting your salon or spa to this point is not going to happen overnight; it takes a conscious, sustained effort and time. But, I am here to tell you I did it!!!! I put the concepts into place and grew my business in the dream I had for it and I was ULTIMATELY able to sell it for a nice profit!! Woo-Hoo

YOU CAN DO IT TOO! If you want to make it happen you have to put the processes in place to support it. - Stay tuned for more!!

Ana Loiselle, Milady Business Coach & Trainer


Pat said...

I spoke to a salon owner in New York a few year back who was operating a network marketing business within her salon. Her customers could just order and buy the products or sign up to be distributors themselves. I don't recall which business she was doing, but she was doing quite well. I liked the fact that it was very low key. There were samples for customers to eat and drink and signs and posters up around the salon but no pressure to buy. Sounds like a great idea, but what do you think the drawbacks might be?

Ana Loiselle said...

Hi Pat,

That is an interesting model and I know several salons who use it. When it comes to network marketing there are extreme polar views on using this model in salons. Some people are passionate about it to the extreme, while you might as well declare yourself a leper as admit to being in network marketing in other circles.

In my opinion Network marketing is just a business model, and it really amounts to "micro-franchising". Its upside is that it has a very low cost of entry, with the potential for exceptional revenue, and there are those who achieve that.

But those same things that make it attractive make it attractive to many who are NOT really qualified or prepared to be a successful salon owner. Many owners that I see who are attracted to this model:

*have not done well in their business and have little money saved up to invest in retail products

* have little or no experience with business systems and have none in place to train their staff on the importance of selling retail and the how-to's.

* are not satisfied with their current level of income
have unrealistic expectations of the amount of work involved compared to the revenue realized

So, I think the challenges of selling products whether it's through MLM or direct sales stay the same unless the owner is prepared to understand the model and do something about it.

If you have any other questions on the topic please feel free to share