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How to Prep Your Salon or Spa for Sale
Episode 17 of the Business of Style Podcast
Presented by BeautyCouncil and hosted by Greg RobinsIf selling your salon or spa has crossed your mind, youâre not alone. There are many reasons why a beauty business owner might consider a sale. Maybe youâre ready to retire, relocate, or follow a new passion. Whatever your reason, the key is to be prepared well in advance.
The biggest mistake? Waiting until the last minute to organize everything. When youâre well-prepared, you can ensure a smooth process, increase the value of your business, and make it more appealing to buyers. Hereâs how to set yourself up for success when selling your salon or spa.
1. Build a Strong Foundation
First things first, know who you are as a business. Define your mission, vision, and values. Potential buyers want a business with clear identity and direction. A strong foundation also includes well-documented processes and systems. When your salon or spa runs smoothly without you, it becomes more attractive to a buyer.2. Financial Fitness
Get your financials in shape. Buyers will want to see clean and organized financial records, including profit and loss statements. The more organized your numbers are, the better position you're in to demand a higher sale price. Review your businessâs profitability, and focus on tightening up any areas that look messy.3. Success Framework
Think of this as your business's "manual." Document your processes, responsibilities, and day-to-day operations so that the buyer can easily take over. This includes everything from managing staff to handling client bookings. A buyer will feel more confident if they know exactly how to run the business with minimal guidance from you.Understand the Value of Your Business
The value of your business is often calculated as a multiple of your profits. The stronger your business structure, the higher the multiple. For example, if your salon is well-organized with solid financials and operational systems in place, you may be able to sell for two or three times your yearly profit. On the other hand, if your business is less structured, the multiple could be lower.Types of Sales: Assets vs. Shares
When selling, you can either sell the entire business (including its name, contracts, and corporate structure) or just the assets (such as equipment and inventory). Sellers often prefer selling the entire company, while buyers might lean towards an asset sale to avoid taking on past liabilities. Understanding which route works best for you will help you plan and negotiate better.Final Thoughts
Whether you plan to sell soon or years down the road, a business worth selling is one worth keeping. So, why not start building that foundation today? The stronger your business, the more enjoyable it is to own â and when the time comes, the easier it will be to sell.This episode features Caylee Auge, Owner of award-winning Hype Hair Studio from 2009-2019. Caylee has a lot of hype around her name! She is a Certified John Maxwell Team Trainer/Coach, LâOrĂŠal Professional Business Trainer/Coach, Course Creator with Inspiring Champions, and Winner of Canadaâs Best Beauty Talent. Since 1998, Caylee has shared her 25 years of beauty industry experience with salon owners worldwide. Her passion is empowering salon owners to take charge of their life and business through virtual coaching and training, like her signature program The Future of Your Salon.
If youâd like support with preparing your salon or spa for sale, reach out for a free evaluation call to discuss your goals and next steps.
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Running your own salon, spa, or barbershop can take you down two different paths. Are you planning to stay in it for the long run, or do you see yourself building it up to eventually sell? In todayâs episode of "The Business of Style," weâre diving into these two options to help you decide which route is best for you.
Option 1: Build, Work, and StayThis approach is all about commitment. You start your business, nurture it, and one day, when youâre ready, you close the doors and move on. Hereâs what you need to focus on:
Setting Goals: Since youâre not planning to sell, itâs important to think about your financial goals early on. How much do you want in the bank when you close up shop? By setting clear targets now, you can work towards a comfortable retirement or next chapter. Resilient Business Model: Your business needs to be able to adapt to changes over time. Keep an eye on your neighborhood and your market, and be ready to make adjustments as needed. The goal is to build something that lasts, no matter what comes your way. Building a Strong Team: Even if youâre the only one running the show right now, think about how a team could support your business in the future. Having reliable people around can help keep things running smoothly, especially as your business grows. Investing in Technology: Donât be afraid to embrace technologyâit can make your day-to-day operations a lot easier. Whether itâs an online booking system or tools to manage your social media, a little investment in tech can free up your time for other important tasks. Creating a Positive Culture: A positive atmosphere is key, whether itâs just you or you have a team. It helps keep customers coming back and makes your business a place people love to visit.Option 2: Build and SellIf selling is your end game, your strategy will be a bit different. Hereâs what you should focus on:
Loyal Customer Base: When it comes to selling, a strong and loyal customer base is gold. Consider starting a loyalty program to keep customers coming backâthat repeat business is a major selling point. Building a Strong Brand: Your brand is more than just your logoâitâs what people think of when they hear your name. A strong brand adds a lot of value to your business, so itâs worth spending time on building and maintaining your reputation. Up-to-Date Technology: Buyers want a business thatâs modern and efficient. Make sure your technology is up-to-date, whether itâs your booking system or the way you manage customer information. This can make your business more attractive to potential buyers. Experienced Team: If you have a team, their experience and loyalty can really boost the value of your business. Buyers want to know that the staff is likely to stick around after the sale, which can make your business more appealing. Having a Growth Plan: A clear plan for growth can make your business more valuable. Show potential buyers that youâve had consistent success and that youâve got a solid plan for the future. Itâll give them confidence that theyâre making a good investment.Final ThoughtsWhether youâre planning to keep your business for the long haul or build it up to sell, a little planning goes a long way. Think through your options and prepare yourself for whichever path you choose. And remember, weâre here to helpâvisit BeautyCouncil.ca for more resources and personalized advice.
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Curious about common pitfalls in running your salon or spa? This episode of "The Business of Style" podcast, called "Risky Business," has got you covered. Hosted by Greg Robins, this episode dives into the nitty-gritty of staying on the right side of the law and avoiding costly mistakes.
**Episode Overview**
Greg discusses three hot topics that often trip up salon and spa owners. Letâs break them down:
1. **Renting vs. Employment**: Are you clear on the difference between renting space to independent contractors and treating them like employees? It's vital to get this right to keep the Canada Revenue Agency (CRA) off your back.
2. **Employment Insurance (EI) for Hair Professionals**: Did you know you still need to pay EI for your hairstylists and barbers, even if they rent space from you? This little-known rule can save you a lot of headaches.
3. **Commission Pay Deductions**: Think you can deduct business costs from your staff's commission pay? Think again. Greg explains why this practice can land you in hot water.
**Renting vs. Employment**
Picture this: youâre a landlord with a tenant. You wouldnât tell them what hours to keep or what furniture to use, right? The same goes for your salon or spa renters. Theyâre independent contractors, and your job is to provide a space, not to micromanage. Keep it professional and hands-off to avoid any CRA issues. We have a handy guide in our members area to help you get this right.
**Employment Insurance for Hair Professionals**
Hereâs a curveball: even if your hairstylists and barbers rent a chair from you, you still need to pay their EI. Surprised? Many are. This rule doesnât apply to skincare or other beauty services, but if it involves hair, youâre on the hook. Better safe than sorry, right?
**Commission Pay Deductions**
Letâs clear up some confusion: you canât deduct business costs from your staffâs commission pay. So, if a stylist charges $300 for a service, you pay commission on the full $300, not on $270 after subtracting product costs. Itâs the law, and following it keeps everyone happy and your business in the clear.
If youâre a BeautyCouncil member, donât forget to tap into our resources. Need a quick consultation or some legal advice? Weâve got you covered. Not a member yet? Join us today and get the support you need to thrive.
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Welcome to "The Business of Style"! Today, we're excited to share our conversation with Kirstin LeBrun, owner of Kharma Salons in Victoria, BC. Kirstin's story is packed with inspiration and practical tips for anyone looking to make it in the beauty industry.
Starting Small, Dreaming Big
Kirstin started her beauty journey 10 years ago. Now, she owns almost four locations in Greater Victoria and manages a team of nearly 50 staff members. Whatâs more impressive? Sheâs still a full-time service provider, staying hands-on with her clients while running the show behind the scenes.
Balancing Acts: Behind the Chair and the Desk
Being both a stylist and a business owner, Kirstin knows the ins and outs of the beauty world. Her husband plays a key role too, handling crucial tasks like payroll. This teamwork lets Kirstin focus on both the client experience and business growth.
Always Learning and Growing
Kirstin is all about continuous learning. She offers a variety of services, including permanent makeup, waxing, and laser treatments. This keeps her business fresh and appealing to a wide range of clients.
Giving Back and Helping Others
One of Kirstin's passions is sharing her knowledge with others. She posted on Instagram to help those thinking about starting or expanding their salons. She felt alone when she started and wants to make sure others have the support she lacked. Transparency about the true costs of running a salon is key for her.
Facing Financial Realities
Running a salon isn't cheap. Kirstin talks about the importance of understanding costs like rent, products, and unexpected expenses like staff premiums. She believes in adjusting prices regularly to keep the business sustainable, even if it feels uncomfortable.
Building Community and Being Honest
Kirstin values honesty with both her staff and clients. By educating her team about the financial side of things, she creates a supportive work environment. She encourages salon owners to communicate openly with clients about price increases and to offer different service levels to suit various budgets.
Advice for New Salon Owners
If youâre thinking about opening a salon, Kirstin suggests finding a mentor. Learning from someone who's been there can help you avoid common mistakes. Building a network and continually seeking knowledge are crucial steps to success.
Reflecting on the Journey
When asked what advice she would give her younger self, Kirstin talks about the importance of passion and resilience. The journey has its ups and downs, but the rewards of building a successful business and watching others grow make it all worth it.
Final Thoughts
Kirstin's final advice is about self-motivation and community support. Surround yourself with like-minded people and never stop learning. To keep up with Kirstinâs journey and get more tips, check out her Instagram. Her openness and dedication to sharing knowledge make her a fantastic resource for anyone in the beauty industry.
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In the 12th episode of the Business of Style Podcast, hosted by BeautyCouncil, we welcomed Kieran Nock from Apollo Insurance for a friendly chat about insurance essentials for beauty professionals. Kieran broke down the ins and outs of securing insurance right from the start of your beauty career.
Kieran pointed out that getting insurance coverage early on is a smart move. He noted, "the moment you have dollar one coming through the door, you're going to want to have some sort of coverage in place.â This is vital because even activities like advertising, done before you actually start earning, could expose you to legal risks such as copyright infringement.
Hereâs what we covered that youâll find super helpful:
Getting Covered Early: Starting with insurance coverage as soon as your business kicks off can shield you from unexpected liabilities. Understanding Liability Insurance: This type of insurance is crucial for covering damages for which you might be responsible, like injuries at your workspace or damages during a service. Professional Liability Insurance: Also known as Errors and Omissions Insurance, this is essential for services that impact clients directly, such as treatments. It protects you if something goes wrong during a service or if you forget a critical step.Kieran also discussed specific scenarios, like renting a chair in a salon, which require particular attention to insurance needs. He emphasized that professionals in these situations should not only have general liability insurance but also consider additional coverage tailored to their arrangements.
For those new to business insurance, Kieran recommended chatting with an insurance professional to understand what coverage fits best and ensure it aligns with any contractual requirements.
This podcast episode is packed with straightforward advice for anyone in the beauty industry, from newcomers to experienced pros looking to understand their insurance needs better. Whether you're running a salon, renting a chair, or working independently, managing your business risks with the right insurance is key to keeping your operations smooth and secure.
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In episode 11 of the Beauty of Style podcast, hosted by Greg Robins and brought to you by the BeautyCouncil, we delve into an essential topic for home-based beauty professionals: insurance. Our first member question episode features a query from Maya, a listener from the Sunshine Coast, seeking clarity on insurance for her home-based business.
Understanding Insurance Basics
Insurance is a safety net, covering unexpected events like injuries, damages, or lawsuits. While home insurance protects your personal assets and liability, it doesn't extend to professional activities conducted at home.
Why Home Insurance Isn't Enough
Your home insurance is tailored for residential use, covering scenarios like theft or property damage. However, it doesn't cover professional liabilities or accidents that occur during business activities.
The Need for Specific Professional Insurance
For home-based beauty professionals, having a separate professional insurance policy is crucial. This policy should encompass:
General Liability: Protects against accidents on your premises, like a client slipping on stairs. Professional Liability: Covers incidents directly related to the beauty services you provide, such as a client suffering an infection from a treatment.Additional Coverage Considerations
Consider insurance for your equipment and supplies, especially for high-value items. Be transparent with your insurance agent about the services you offer and any changes to ensure comprehensive coverage.
Choosing the Right Insurance Provider
The Beauty Council recommends trusted providers like Apollo or Zensurance, who understand the unique needs of the beauty industry.
Key Takeaways for Beauty Professionals
Separate your professional activities from your home insurance. Ensure comprehensive coverage for both general and professional liabilities. Regularly update your insurance policy to reflect changes in your services.Insurance is not just about protecting your business; it's about ensuring peace of mind for you and your clients. Listen to the full episode for more insights and tips on securing the right insurance for your home-based beauty business.
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In this special episode of the Business of Style podcast, Greg Robins chats with Caylee about a topic close to every salon owner's heart: increasing income without relying on traditional sales tactics. If you're in the beauty industry and looking for ways to enhance your earnings without the sales pressure, this episode is a must-listen.
**The Five-Step Approach to Increased Income**
Caylee shares a five-step process that goes beyond the usual advice of pre-booking and upselling. Here's a quick rundown:
1. **Check Your Mindset About Making Money**: Start by examining your thoughts on financial success. A positive mindset towards money is crucial for attracting it.
2. **Set a Target**: Define what more money and time mean to you. Make your goals specific and meaningful.
3. **Set Targets with Each Team Member**: Involve your team in the vision. Help them understand their role in achieving the salon's financial goals.
4. **Use a Powerful Consultation**: A thorough consultation can uncover client needs and lead to tailored solutions.
5. **Offer Solutions with No Emotions Attached**: Present solutions to your clients' problems without letting personal feelings influence the conversation.
**Changing the Narrative Around Sales**
Caylee emphasizes the importance of shifting our perspective on sales. It's not about pushing products but about providing solutions to clients' problems. By adopting a more consultative approach, salon professionals can enhance their clients' experience and, in turn, boost their income.
**Practical Tips for Implementation**
The episode is packed with actionable advice, from setting smart goals to mastering the art of consultation. Kaylee also highlights the importance of practicing and getting comfortable with the sales process, ensuring that it becomes a natural part of the salon experience.
Increasing your salon's income without the hard sell is achievable with the right mindset and approach. By focusing on providing value and solutions, you can create a more positive and profitable salon environment.
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Feeling swamped by endless admin tasks and paperwork, wishing you could get back to what you love? It's time to meet your new powerhouse assistant: artificial intelligence (AI). I'm Greg Robins, and in this episode of the Business of Style podcast, brought to you by the Beauty Council, we dive into how AI can revolutionize your salon, spa, or barbershop.
**What's AI, Anyway?**
AI is tech's buzzword, but beyond the jargon, it's a tool poised to transform routine tasks. From drafting social media posts to revamping your website or handling complex calculations, AI's capabilities are expanding. Imagine AI managing appointments or analyzing market trends for youâthis is not the future; it's here.
**Three Ways AI Can Boost Your Business This Week**
1. **Social Media Savvy**: AI can craft engaging posts, complete with perfect grammar and tailored to your brand's voice, freeing up your time for creativity.
2. **Website Wizardry**: Let AI suggest enhancements for your site, ensuring it stands out and ranks higher on search engines.
3. **Math Magician**: Why struggle with figures when AI can adjust your pricing strategy accurately and efficiently?
**Accessing AI: No Cost, No Fuss**
Curious? Start exploring AI possibilities with tools like CHAT GPT. Signing up is free, and you'll soon find yourself leveraging AI's full potential to streamline operations, engage customers, and stay competitive.
Dive in and discover how AI can be your salon's best asset, making administrative chores a thing of the past and letting you focus on your passion. Tune in to the Business of Style for more insights on leveraging technology in the beauty industry.
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In the beauty business, parting ways with a team member is tough but sometimes necessary. It's not just about saying goodbye; it's about knowing the hows and whys so you can do it the right way.
Getting the Basics Right
Ending a job is never easy, whether itâs a decision from you (termination) or them (resignation). Chris Drinovz, a pro in employment law, sheds light on this delicate process.
The Early Days Matter: The Probation Period
Newbies have a trial period. If things aren't clicking, you can part ways easily in these early days, especially in the first three months. Just remember, the rules change once this period is over.
Full-time or Part-time: Same Rules Apply
Whether your team member is full-time or part-time, the game's the same when it comes to ending their contract. It's all about their average earnings when figuring out their dues.
Understanding âCauseâ and âNo Causeâ
There are two ways to say goodbye: 'with cause' (like serious issues on their part) and 'without cause'. Going the 'with cause' route doesn't need notice or severance, but you've got to have your facts straight.
Steering Clear of Legal Bumps
As a salon/spa owner, watch out for legal traps. Mistakes like not giving enough notice or being unfair can lead to big headaches.
Smart Moves for Salon Owners
Be picky when hiring. Use clear contracts. Keep records and follow steps before letting someone go.Privacy is Key
After saying goodbye, keep it classy. Their story isnât for sharing with the team or clients.
Wrapping Up
Letting someone go is hard, but knowing the ins and outs makes it smoother. Stay informed, stay fair, and keep your salon or spa a great place to work and visit.
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Explore the Future of Beauty: Top 5 Trends for 2024 - In this insightful episode of the 'Business of Style,' host Greg Robins, Executive Director at the BeautyCouncil, delves into the five pivotal trends shaping the beauty industry in 2024.
Discover how sustainability and eco-friendly practices are becoming integral to salon operations, and the growing importance of inclusivity in product ranges. Learn about the rise of digital and remote beauty services, the evolving role of social media influencers in marketing, and the transformative impact of AI and technology on salon management. Join us for a captivating look at the innovations driving the future of beauty and style.
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In our newest podcast, we had a great chat with Bruce Peters from Zazou Salon and Academy. We're unpacking some golden nuggets on boosting your salon's profitability â a must-know for every salon owner out there!
Profitability: The Heart of Your Salon's Success
Bruce brings a fresh perspective on why profit isnât just a nice-to-have, but a must-have. Weâre talking about the difference between just staying afloat and really making waves in the beauty world.
The Real Deal on Profit Margins
Bruce sheds light on the startling fact that most salons operate on razor-thin profit margins, and how this can be risky. Itâs like being just one wave away from going under!
Strategies for Sustainable Growth
Hereâs where it gets exciting! Bruce shares his insights on smart staffing, managing expenses, and why education and team development are game changers for your salon's revenue.
Raising Prices Smartly
A hot topic! Bruce emphasizes the importance of periodic price revisions to keep up with demand and market conditions. Itâs not just about the increase; itâs about the timing and strategy.
Bruce wraps up with a powerful call to action for the salon community â aim for higher profit margins for healthier, happier businesses.
Be sure to join the association at www.beautycouncil.ca
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Join us in this episode with host Greg Robins as we explore why it's smart for salons to adjust their prices with inflation, covering everything from its impacts on your business to practical tips on making the change smoothly, all with a helping hand from the Beauty Council.
Join the BeautCouncil today. https://beautycouncil.ca/membership-account/membership-levels/
Inflation and Its Impact on Salons:We discuss the importance of understanding inflation, which is the general rise in prices and erodes purchasing power.
It's highlighted how inflation affects not just consumer goods but also operational costs like rent, utilities, staffing, and insurance for salons.
Rationale Behind Price Increase Recommendation:We recommended a price increase of 7% for salons that haven't raised prices since the summer of 2022.
This recommendation is based on Canada's inflation rate and the increased costs of goods and services necessary for business operations.
Consequences of Not Raising Prices:Not adjusting prices in line with inflation can lead to diminished resources, affecting the ability to deliver quality service.
Salon owners might end up reducing their own remuneration, which is not sustainable in the long run.
Strategies for Implementing Price Increases:Emphasizing the importance of communication: Be transparent with clients about the reasons for the increase.
Consider adding value to services to justify the price hike, like improved service quality or complimentary perks.
Prepare for some client loss but focus on attracting clients who value and can afford the enhanced service quality.
Association Support and Services:The Beauty Council offers tools like pricing calculators and market analysis to assist with the price adjustment process.
Members can get personalized recommendations and support for implementing these changes.
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In this episode, we welcome back Caylee Auge for another insightful discussion.
Building on our previous conversation about doing more with less, Caylee delves into the concept of financial modeling for salon owners.
She explains how to be intentional about your profit margins, the importance of understanding different business models, and why salon owners should prioritize themselves financially.
Whether you're struggling to take money out of your business or taking out too much, Caylee offers a balanced approach to help you stabilize your profit margins and grow your business sustainably. Don't miss this episode if you're looking to take control of your salon's financial future.
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In this comprehensive episode, we explore the multifaceted realm of human resource management in the beauty and grooming sector. We'll also address the critical issue of client data ownership and its significance for both owners and staff.
Segment 1: The Role of HR in the Beauty Industry
Uncover the vital role that HR plays in ensuring the prosperity and well-being of your salon, spa, or barbershop.Segment 2: Employee Agreements
Gain insights into the key elements and legal aspects of employee agreements that safeguard both your enterprise and your team.Segment 3: Chair Renters vs. Employees
We clarify the distinctions between chair renters and employees, providing guidance on effective management strategies for each.Segment 4: Non-Competition Legalities
Learn how to navigate the complexities of non-compete clauses and their ramifications for your business and workforce.Segment 5: Payroll and Compensation
Understand the different payroll structures and their legal prerequisites to ensure you're operating within the law.Segment 6: Performance Reviews and Employee Development
Discover the importance of routine performance evaluations and their role in fostering employee growth.Segment 7: Employee Benefits and Perks
Examine common benefits offered in the beauty industry and how they can be leveraged to enhance employee retention. -
đď¸ Episode Title: "Mastering Payments: Choosing the Right Credit Card System for Your Beauty Business"
đ§ Host: Greg Robins
đŁ Guest: Chris Browes, CEO of Kubera Payments SystemđĄ Episode Focus:
What You'll Learn:
Navigating the complexities of credit card payment systems can be daunting for any salon, spa, or barbershop owner. But guess what? It doesn't have to be. This episode dives deep into the world of payment systems, demystifying fees, equipment, and much more. And this isn't just for business ownersâindividual chair renters, this one's for you too!1ď¸âŁ The Importance of the Right Payment System:
Discover how your choice of a payment system can elevate the customer experience, streamline your operations, and even boost your bottom line.2ď¸âŁ Demystifying Fees:
Chris Browes explains the types of fees you might encounter, like flat fees, interchange fees, and tiered rates. Learn why opting for the cheapest option isn't always the best route to take.3ď¸âŁ Equipment Choices and Costs:
From traditional POS systems to cutting-edge mobile solutions, we discuss upfront and rental costs and what's optimal for different setups, including multi-station salons and individual chair renters.4ď¸âŁ Mobility Matters:
Get insights into the advantages of mobile payment options, especially if your services extend beyond the walls of your salon or you're a chair renter hopping between locations.5ď¸âŁ Reliability is Key:
Learn why itâs crucial to opt for a payment system known for reliability and how to handle unexpected system outages.6ď¸âŁ Customer Service:
Hear real-life stories that highlight the critical role of customer support when things go south.7ď¸âŁ Software Integrations:
Chris emphasizes the importance of a system that seamlessly integrates with your existing business software.8ď¸âŁ Chair Renters, Listen Up!:
We wrap up with special considerations for individual chair renters, from contract flexibility to networking and shared payment systems within a larger establishment.đ¤ Partner Spotlight:
Kubera Payments System is not just a guest on todayâs episode; theyâre also a trusted partner and recommended supplier to BeautyCouncil members. Find out more here. -
Hereâs a question for you. Is there a shortage of staff these days ? Maybe the bigger question is, do we need more staff or should we be looking at how to optimize our salon or spa to do better with the team we already have?
Hey beauty and barber pros, welcome to The Business of Style Podcast, brought to you by the BeautyCouncil. My name is Greg Robins and today in our first episode, we tackle the thorny problem that so many of our members are talking about - staff shortages.
My guest today is Cayle Auge, a well-loved coach to the professional beauty industry and previous owner of the highly successful Vancouver salon, Hype. Stick around to hear how Caylee offers strategies to thrive with the team you have today in this 20 minute episode.
