Tools and Tips to help Stylists and Salon Owners Thrive

Industry veteran Miki Wright has an article in this month's issue of Beauty Store Business. She has started a web based mentoring program for stylists and salon owners. She also has a blog and a myspace.
Check them out!

http://mikiwright.blogspot.com/
www.beautysuperstars.com
http://www.myspace.com/mikiwright

http://www.beautystorebusiness.com/

Marketing Your Business

Ahhh - the marketing plan! One of the single greatest pieces of information you can develop about your business & without which you will be like a fish out of water.

Granted, there are things you will feel instinctively about marketing your business. But know for a fact that there is an art & strategy to marketing - it all it's many forms - and the wise business owner will plan this out (again and again).

One mistake I think owners make is believing that their job is to run their business - as in physically operate it daily - and that's it. If that's you and your goal is to own a job (to borrow the phrase from Robert Kiyosaki) then do yo thang!

But most of us decide to go into business with the idea that our company will eventually be operated by highly qualified individuals we hire and will afford us the opportunity to go do other things we really WANT to do. Reading Rich Dad Poor Dad was my first glimpse at knowing the difference between owning a job and owning a business.

The point is that if you want to set out to build a business, then plan how you will market it first.
Investing in getting this done is wise, and just like your business plan, there are many options.


Marketing plan pro is a cost effective and comprehensive software that will help you plan, guide and educate you on what to include.

Whatever option you choose get your ideas on paper and follow the plan!

Selecting Vendors / Suppliers - 4 tips for success

One of the most frustrating things getting started for me was finding vendors and setting up accounts. Especially starting on a tight budget. A good piece of advice one supplier offered was to limit the number of vendors to between 3 and 5. The question is which 3-5 vendors do you choose? We have had as many as 50 accounts with various suppliers over the last 4+ years. It all depends on the product lines you want to carry, but if you truly want to develop a niche, thankfully you don't have to carry EVERYTHING - and anyway, you couldn't!

In the accessory hair industry there are so many vendors it can make your head spin. Many have very similar products and more national exposure with brand name recognition. Others have equally good products and may not be as well known. You have to know your target market and look at the products from the cost and quality perspective as well as if the company has products your customers want.

One of the most important criteria for selection of vendors in my opinion is the quality of their customer service. I have cut vendors for their apparent lack of concern or care for me as a customer. Even if my account is small compared to others, I still expect to be given the same level of service as the big buyers. The reason I have come to expect this is because I do get it from some vendors and not others. So call me spoiled - but if I'm going to make an effort to promote your products I feel I deserve to be treated well.

For example, vendors that call me or email me with their specials, to check in with me or just plain ask how business is going - they get my time, attention and business. These vendors usually offer to send out sample orders with payment terms - like 30 or 60 days to pay. That helps tremendously with cash flow. They are doing their due diligence to increase business for themselves by building RELATIONSHIP with their customers and as the retailer, you need to do this for your customers as well.

The vendor location is also important - the closer they are to you the faster you can get stuff from them.


So just to summarize:
1 - You may start out with many vendors/suppliers but begin to narrow it down to the best.
2 - The best will be the ones that have what your customers want at the PRICE and QUALITY they expect.
3 - The best will also be the ones that care to serve you whether you order one piece or thousands.
4 - The closer geographically the better.

Here is a breif list of vendors that have worked with me thru the good times and bad to help me keep my business going.

Amekor Industries - Distributors of Beverly Johnson and Estetica Designs
Joseph and Eddie are terrific sales reps! The products are fantastic and the prices are affordable. They have regular sales and specials each month and are attentive to our needs.

C&S Fashions - Distributors of Aspen, Dream USA and Nalee Collections
Ashley is a great sales rep. The products are high quality and stylish. They send out regular sample orders and work with us on payment terms.

Westbay Inc. - Sepia & Elegante brands. They make it easy to get orders via COD and accept business checks as payment (so u don't have to run all over town for money orders) and they don't charge extra for COD's either. They are on the west coast so our shipments arrive fast. Beth is a great sales rep & she returns calls promptly.

There are other good ones but these are our top 4.

Preparing yourself for business

You can never learn too much about starting, owning and running a business. When I first started, I knew there was a lot I didn't know. I knew I didn't know IT, but I also knew how to watch and learn. One of the best methods for learning is to find a person or people who are doing IT well and get in their presence.

I think now we are at an unprecedented time in the world where those who have made IT are open to sharing what they know with others who have what it takes to get IT too. Granted, they will make lots of money by sharing what they know but I honestly believe that the greater benefit is in creating a world where more abundance is getting spread around and this just helps everyone.

Anyway, I checked out Donald Trump's site ( I mean who better to learn how to do IT from? ) and I found a whole pile of free information in addition to the programs that have a fee. I really believe it to be helpful information. You can check it out at these links

FREE Course from Donald Trump


Fire Your Boss

Imagine: Your Own Business
No Money Down Business

Become Rich Like Trump

Plan as you go business plan

Here is a great resource for understanding how to write your business plan. It's a book by businessman Tim Berry called The Plan as You Go Business Plan. (check out his blog)
The book is on sale for $20 0r less depending on where you look, such as Amazon.com

To get a free ebook copy of The Plan as You Go Business Plan fill out the form below.

What is your occupation?
What are your business goals?
Can we email you with offers from our partners?	yes no
You are planning to start your business	Immediately Within 6 months Within 1 year Within 2 years Not sure
Name:
Email Address:

form mail

More on Business Plans - The key to success

Business Plan Basics

Courtesy of Palo Alto Software, Inc.

The best way to show bankers, venture capitalists, and angel
investors that you are worthy of financial support is to show
them a great business plan. Make sure that your plan is clear,
focused and realistic. Then show them that you have the tools,
talent and team to make it happen. Your business plan is like
your calling card, it will get you in the door where you'll have
to convince investors and loan officers that you can put your
plan into action.

Once you have raised the money to start or expand your business,
your plan will serve as a road map for your business. It is not
a static document that you write once and put away. You will
reference it often, making sure you stay focused and on track,
and meet milestones. It will change and develop as your business
evolves.

Do I need a business plan?

Not everyone who starts and runs a business begins with a
business plan, but it certainly helps to have one. If you are
seeking funding from a venture capitalist, you will certainly
need a comprehensive business plan that is well thought out and
contains sound business reasoning.

If you are approaching a banker for a loan for a start-up
business, your loan officer may suggest a Small Business
Administration (SBA) loan, which will require a business plan. If
you have an existing business and are approaching a bank for
capital to expand the business, they often will not require a
business plan, but they may look more favorably on your
application if you have one.

Reasons for writing a business plan include:

• Support a loan application


• Raise equity funding


• Define and fix objectives and programs to achieve those
  objectives


• Create regular business review and course correction


• Define a new business


• Define agreements between partners


• Set a value on a business for sale or legal purposes


• Evaluate a new product line, promotion, or expansion

What's in a business plan?

A business plan should prove that your business will generate
enough revenue to cover your expenses and make a satisfactory
return for bankers or investors.

1. Executive Summary--features the highlights of your plan and
   sells your idea in two pages or less.


2. Company Summary--a factual description of your company,
   ownership, and history.


3. Products (or Services or both)--describes your products
   and/or services and how they stand out from competitive products
   and services.


4. Market Analysis-provides a summary of your typical customers,
   competitive landscape, market size, and expected market
   growth.


5. Strategy and Implementation-describes how you will sell your
   product, how you will put your plan into action, and establishes
   milestones.


6. Management Summary-provides background on the management
   team, their experiences, and key accomplishments.


7. Financial Plan-contains key financials including sales, cash
   flow, and profits.

What makes a successful business plan?

• A well thought out idea


• Clear and concise writing


• A clear and logical structure


• Illustrates management's ability to make the business a
  success


• Shows profitability

How do you write a business plan?

Sitting down looking at a blank computer screen as you prepare to
start your business plan can be daunting. You may want to look
at some alternatives that will make the process a bit easier.

Use Business Planning Software

A good business planning software package will provide you with
an outline for a well-developed, objective-based and professional
business plan. Software packages will remove the problem of
starting from scratch by structuring your plan for you. The
software should ask you the right questions that will pull out
the most important underlying concepts within your business idea.
Find out more about the leading software package on the market, Business Plan Pro.

Buy a Book

There are many good books on the market that will help you to
understand what needs to go into a good business plan. You can
read Tim Berry's newest book, "The Plan-As-You-Go Business Plan".

Sample Business Plans

Bplans.com has 100+ free sample plans to help guide you through your "writers block". The sample plans available are in all types of categories from construction to retail, consulting to online businesses.

Hire a Professional

A professional consultant will create the business plan for you,
but you still have to be prepared to think through your business
and understand the underlying concepts in your business idea.
You will have to work closely with the consultant to ensure that
he or she develops a good plan that accurately represents your
business or business idea.

Business planning resources

Here are some of Palo Alto Software's business planning resources:

• Business Plan Pro - Create professional business plans in hours, not weeks. Step by step quidance and instant downloads available.


• Marketing Plan Pro - Detailed marketing plans are essential to any business. Create yours today with Marketing Plan Pro!.


• Sample Business Plans - Browse 500+ sample business plans. Each sample plan is included in Business Plan Pro.


• Business Planning Books - Read books on creating a business plan, and keeping that plan alive. Included is Tim Berry's newest book "The Plan-As-You-Go Business Plan" and others.
  

Source: bplans.com

Financing your Business

Your Website

There are so many ways to build a website nowadays - it's kind of scary. I have tried several different resources, all with varying degrees of success. The one important thing is to have one dedicated staff member who is responsible for your internet operations. Once your site is up and running and bringing in some revenue, it is actually quite simple to automate this piece of the business and keep it simple. To do this you'll need to check out The 4 Hour Workweek and learn about the process.

You can find many website resources online:
Amazon.com has a reseller marketplace called Seller Central
eBay has a stores feature and a website package called ProStores


Both are good if you have a resource for discounted products as shoppers to these websites are looking for bargains.

You can also try yahoo small business and have a site customized by any number of third-party developers such as Solid Cactus.




One of the best options for selling and monetizing a website is to create a site using Site Build It. It's great because the tutorials really give you all the tools necessary to not only get a website but also market it and generate income from your knowledge of your business and not just your products.

Your Salon and Consultations

(Note - You don't need a cosmetology license to OWN a salon but you do need one to provide hair services yourself in your salon.)


A beautiful, well staffed salon that offers specialized and custom services is a cash flow dream and a major part of this business concept. Since running a salon is a business all unto itself, it is important to seek out information from industry gurus to simplify and enhance operations.

For my business, we specialize in hair extensions and hair replacement, but we also offer all traditional salon services. There are many niches in hair care and design, from curly hair and ethnic hair, to expert color and precision cutting and many many more in between. The key again is positioning yourself as an expert and your salon as the premier go-to location for these services, and keeping your retail side stocked with the products you use on your clients.

Your stylists are your best sales reps when it comes to moving product. Their clients already have instilled their trust in them ( a great book to read on this is "The Speed of Trust by Steven Covey") and will believe their recommendations. Educating your stylists on the products is paramount. In my store stylists are required to help store customers whenever they are not with hair clients. In this way, they become knowledgeable on the retail side and help the reputation of the business grow as well. I essence, it is like offering free consultations and can ultimately lead to the customer becoming a client in the salon as well.

Compensating the stylists and sales staff can be cumbersome and requires a well thought out plan. I recommend working with a consulting agency such as Strategies and developing a team based pay environment instead of commissions, hourly wages and booth rent.

Your Retail Store

Your retail store is your showroom for the products your clients will come to you for.

Many suppliers will provide you with merchandising displays, posters, brochures and other marketing materials.

A well lit and beautifully displayed store will do wonders for your business - even on a budget. Use your business plan to fully explore your budget needs for inventory and store design. Business Plan Pro software will let you play with the variables to determine how much you want to spend and how the numbers will affect your bottom line profit.

Cash Flow Calculator


Use resources like Beauty Store Business magazine to research products and companies. The articles are great and don't be afraid to contact the people you read about to ask questions and get advice.

I recommend getting a subscription to BSB - it's free!

The key to your product sales is educated staff who then can educate your clients. Also, use the products yourself as much as possible. Being able to speak first hand about how a product works is a great selling tool. If you can't use them all, do your due diligence by researching the product online - check blogs and read testimonials - you'll become known as an expert in no time!

Your Business Entity and Accounting

There are many ways to set up your business entity and you can get tons of advice about this online. Reading and researching your options is the best way to make an informed decision. Never be afraid to ask questions either. There are tons of people looking for advice out there and as many with the answers.

Basically your options are: (Click on each link for a definition.)
Sole Proprietor or Partnership
Limited Liability Corporation (LLC)
Corporation

There are pros and cons with each one so do your homework!

My company is set up as an LLC. Just as with the business plan, you can create the LLC on your own or with the aid of an attorney, software package or a website that specializes in setting up companies.
Going with a website or doing it yourself can be very cost effective as long as you educate yourself on what is required. Check out the following link for an affordable option.
Legal forms for your limited liability company.


You also need to set up your business legally within your state and get the proper licenses to operate. You will need a business license and a salon license. Check your State Department of Licensing website for this information. You should be able to apply online. If you want to be a cosmetologist and provide hair services yourself, you will need the education & licensing for that if you don't already have it. This is only required if you intend to provide hair services yourself.

SimpleFilings is an interesting website that handles all your business filing from incorporation to licensing and tax id. The convenience of doing it all in one step and for one fee may be worth the cost - but again do your research first.

Register your company, Incorporate or form an LLC, file your DBA (Doing Business As), Get a Website and Toll Free number Click Here Now to view SimpleFilings site.


In addition to all this, it is best to think about your accounting early on. All of the fees associated with the set up of your business need to be tracked as tax deductions. Get a good bookkeeper, or get trained in the use of Quickbooks - or both. If you establish your accounting at the beginning you'll be glad you did.

The 3 Tiered Approach

As I mentioned previously, my recommendation for building your business is to take a three tiered approach - basically you will have three components to your business. Each one is necessary for the overall success of the business. It may seem like a tall order, but using automated systems and simple processes will help you manage and build with minimum headaches and stress!

The three pieces are -

the retail store,
the salon, and
the website.

We will discuss each of these areas in more depth.

Operate a Niche Beauty Store and Salon!

The purpose of this site is to offer beauty entrepreneurs some guidance in how to start, build and successfully operate a thriving beauty business.

Starting a business, any business, requires a plan and a passion. These are the two key ingredients you must have to get started. Period. Without a passion for the business you want to run, the tough times will make it unbearable to proceed. And without a plan...forget it.

Suggestion: pick a market you know and love. Don't be afraid to have a narrow focus. Developing your business as the best at what you do will pay off even if you only do one thing.

Some ideas - natural and or "green" products, curly and or ethnic hair products, wigs and hair pieces, hair extensions, hair replacement. You can pick more than one but be careful that you choose an area that you love and will be excited to learn inside and out.

Click on the following links to get an idea of how many options there are for niche markets in hair care. It is a good idea to purchase and sample products you may want to carry & promote so you'll have first hand knowledge of their effectiveness and value to your customer.

Hair Loss? Find the right solution for you at only OnlyHairLoss.com. Over 100 products to chose from!

HairGenesis™ Hair Loss Treatment / Hair Growth products safely and effectively help stop Male and Female Pattern Hair Loss.


Free Shipping - Lasertron Hair Growth Brush

Once you have decided on your area of expertise, you need to put a business plan together. This step is crucial to your success. There are many aspects of your business you need to chart, analyze and put on paper such as starting costs and cash flow.

Starting Costs Calculator


Cash Flow Calculator

Fortunately there are many resources for putting a good business plan! So you do not have to re-invent the wheel, or even think really hard. You just need to be able to understand how and why the various aspects of your business will be run. A good plan will help you do this.

You can create a plan from scratch, using resources from the SBA, a SCORE coach, IRS, an attorney, and or various other sources. You can do this all on your own by copying and modifying an existing plan like the ones found on Free Business Plan Samples site
or you can invest some money in this. I say invest because having a really well done business plan will help you get access to the financing you will need to operate your business until it becomes profitable. Becoming profitable can take anywhere from 2 to 5 years so it is a very important piece. We will talk more about this later.

Investing in a well written business plan is definitely worth the cost. It is your road map and as you build you can refer back to it and change it as needed to help you go forward.

Using a company like Masterplans or Growthink may be a great option. The cost of these solutions is at the high end, but their expertise in business planning and funding may be worth the expense, especially if you want to design a multi-million dollar revenue business.

There are also software packages available that are less costly and depending on your ability to analyze and define your ideas, as well as your computer literacy, these may be a good option. Check out Business Plan Pro Software. It is a very user friendly and comprehensive program.

The best plan for a successful beauty store business will be a three tiered approach.

1. A fully stocked retail store that is well merchandised.

2. A salon and consultation area where your products are used and demonstrated on your customers. You could offer additional education to professionals in this area.

3. An ecommerce sales channel for your products and expertise that informs, entertains and educates your customers.

We will discuss each of these areas in more depth later.