What is the importance of profit for salon success? It might seem obvious, but Sean Hanna points out that profit sometimes isn't the driving force for a salon owner. But he's here to tell us why it should be.
Sean Hanna discussed this very topic with HJ Business Academy delegates during the scheme, which launched earlier this year. Read more about it here.
With a wealth of knowledge that comes from running one of London's top salon groups Seanhanna Salons, Sean looked at how profit fuels growth and creativity as a business owner.
Sean’s tips for valuing profit as a salon owner
- Know why you started your business
Whether you’re an independent stylist or running a high-street salon, remember why you took the leap to salon ownership. You’ve proven you have an entrepreneurial spirit – now it’s about developing it. Be clear on your why so you can stay motivated through the ups and downs that will come along. - What does wealth and success mean to you?
Wealth isn’t the same for everyone. For some, it’s being mortgage-free; for others, it’s more time with family, or being able to take multiple holidays each year. Decide what success looks like for you, then build your business around that. - Profit is not a dirty word
Most people didn’t enter hairdressing to make money; it was to be creative and work with great people. But as life evolves it’s important to focus on the financial side. Afterall, it is profit that pays you, your team, and fuels your growth. - Be honest about failing
Half of all new businesses fail in the first two years, and half of those fail within the next three years. The difference between success and failure? Profit. - Understand your two biggest costs
Wages and stock are usually the largest costs in a salon. If you’re not tracking and managing them, they’ll eat all your profit, so start monitoring them regularly and cut back where you can. - Know your numbers
You need to know what’s coming in and what’s going out every month. Profit gives you the freedom to create the kind of business clients want to be part of. Without profit your business will stall. - Measure and measure again
You can only change what you measure. Track the figures that impact your bottom line. If you’re busy but not profitable, it’s time to make some changes. - Prepare for challenges ahead Things will go wrong in business, the key is to stay on top of your finances so you’re not blindsided when challenges come your way. Profit is your buffer for the tough times that inevitably will come along.
For more information visit Sean's website here
Sean’s eBook “The Entrepreneurs Guide to the Galaxy” is available for free and takes you on a whirlwind journey from Stylist to Group Owner to Entrepreneur.
