Hiring a consultant can save money?

Cost rising, revenues falling, profits shrinking?

Salons are feeling the crunch of the recession everyday. Sales and profits may be decreasing, expenses are increasing, and employees may be anxious or dishearten. As a professional consultant working with salons. It's not uncommon for me to be asked, why should I hire a consultant?  

The most common reasons for hiring a consultant are:

1. A consultant may be hired because of his or her expertise. This is where it pays to not only be really good in the field you have chosen to consult in, but to have some type of track record that speaks for itself. For example, as I mentioned on the consultant page I have the experience and education to back up the service I offer to clients, I know that every client who hires me is doing so partly on the strength of that experience and education. After all, if you are a salon owner that needs help to turn your business around, it makes sense to hire someone like me who can position your business and marketing in a way that creates a competitive advantage and increase profits in your marketplace. 

2. A consultant may be hired to identify problems. Sometimes owners and employees are too close to a problem inside the salon to identify it. That's when a consultant comes in handy to shed light on what the real problems is.

3. A consultant may be hired to supplement the staff.

Sometimes a salon discovers that it can save thousands of dollars a week by hiring a consultant when they are needed, rather than hiring a full-time employee to try to do the work. Salon owners realize they can save additional money by not having to pay benefits for consultants they hire. Even though a consultant's fees are generally higher than an employee's hourly rate in the initial short run, over the long haul it simply makes good economic sense to hire a consultant who can fix the problem right the first time. This is a forward looking approach for determining how best to invest your hard earned profits. In addition, when the problem is fixed, the consultant moves on to help the next client, and the additional cost of hiring the consultant, as a supplement staff member, disappears. Its a win-win alternative to hiring a new employee to do the work. 

4. A consultant may be hired to act as a catalyst. Let's face it. No one likes change, especially small intimate salons. But sometimes change is needed, and a consultant may be brought in to "get the ball rolling." In other words, the consultant can do things without worrying about the internal culture, employee morale or other issues that get in the way when an owner is trying to institute change. In addition, a consultant can help you resolve problems with internal culture, employee morale, and other issues to create synergy throughout the salon.

5. A consultant may be hired to provide much-needed objectivity. Who else is more qualified to identify a business or marketing problem than a business and marketing consultant? A good consultant provides an objective and fresh viewpoints without trepidation that sometimes comes with internal politics or biases concerning the results or the changes they bring.

6. A consultant may be hired to teach. These days a salon consultant who can show employees how to master selling services and products are in high demand. A consultant may be asked to teach employees many number of different skills. However, a consultant must be willing to keep up with new discoveries in their field of expertise and be ready to teach salon owners what they need to do stay competitive today. As a salon consultant this my highest training objective.

7. A consultant may be hired to do the "dirty work." Let's face it: No one wants to be the person who has to make cuts in the staff or to eliminate an entire group of unengaged employees. And who else would dare tell an owner that the decisions they are making are wrong and should be changed immediately if the business is to grow and be more successful. I'll tell you when you are doing something wrong but then I'll stick around to help you fix the problems and implement the necessary changes. I will also let you know what is working and show you how to leverage that strength to create more value for the salon and your customers.

8. A consultant may be hired to bring new life to a salon. Consultants are good at coming up with new ideas that work. At one time or another, most salons need someone to administer "first aid" to stop the bleeding and bring you back to life.

9. A consultant may be hired to create a new business. There are consultants who have become experts in this field. Not everyone, though, has the ability to conceive an idea and develop a game plan. This is an area where I thrive as a consultant.

10. A consultant may be hired to influence other people. Would you like to network with other business owners in your town? If so, you may hire a consultant simply based on who they know. Although most consultants in this field are working mainly with salons, I on the other hand network with owners of spas, product distribution, manicurist, make-up artist, and fashion designers. Networking is a key tool for obtaining new information about your industry and compatable industries.

In regards to building business, marketing sustainability, core competencies, and integrating sustainability concepts into a business, the most common reasons for hiring a consultant include:

• You have a vague sense of what you should do for the current market environment, but you don’t know where to start, what to do or how to do it.

• You are well informed, but need direction in translating this knowledge into your day to day business operations.

• You have integrated core competencies and sustainability concepts into your salon but need help achieving alignment and extending the sustainability vision to others within the salon.

• You want to drive profitability through stakeholders (co-owners, employees, customers, vendors) participation but don't know where to start.

Call today! (949) 903-4805

Why have a business plan?

The business plan is the blueprint for your business. You wouldn't walk over to an empty lot and just start nailing boards together if you wanted to build a house. Starting a business without a business plan is just as foolish.

Yet unlike a house, a business isn't static. We often make the mistake of thinking of a business plan as a single, static document that you just put together when you're first starting out and then set aside.

In actuality, the business plan for any business will change over time as the business develops, and any particular business may have multiple business plans as its objectives change.

Here are five good reasons why you should write a business plan:

1) To test the feasibility of your business idea.

Writing a business plan is the best way to test whether or not an idea for starting a business is feasible, other than going out and doing it.  In this sense, the business plan is your safety net; writing a business plan can save you a great deal of time and money if working through the business plan reveals that your business idea is untenable. Often, an idea for starting a business is discarded at the marketing analysis or competitive analysis stage, freeing you to move on to a new (and better) idea.

2) To give your new business the best possible chance of success.

Writing a business plan will ensure that you pay attention to both the broad operational and financial objectives of your new business and the details, such as budgeting and market planning. Taking the time to work through the process of writing a business plan will make for a smoother startup period and fewer unforeseen problems as your business becomes established.

3) To secure funding, such as bank loans.

You're going to need both operating and startup capital to start a new business and you have no hope of getting any money from established financial institutions such as banks without a well developed business plan. And established businesses often need money, too, to do things such as buy new equipment or property, or because of market downturns. Having a business plan gives you a much better chance of getting the money you need to keep operating or to expand.

4) To make business planning manageable and effective.

A business plan is essential if you're thinking of starting a business, but it's also an important tool for established businesses. Viable businesses are dynamic; they change and grow. The company's original business plan needs to be revised as new goals are set. Reviewing the business plan can also help you see what goals have been accomplished, what changes need to be made, or what new directions your company's growth should take.

5) To attract investors.

Whether you want to shop your business to venture capitalists, or attract angel investors, you need to have a solid business plan. A presentation may pique their interest, but they'll need a well-written document they can take away and study before they'll be prepared to make any investment commitment.

Be prepared for your business plan to be scrutinized; both banks; and venture capitalists and angel investors will want to conduct extensive background checks and competitive analysis to be certain that what's written in your business plan is indeed the case.

Writing a business plan is time-consuming, but it's essential if you want to have a successful business that's going to survive the startup phase and assist the  business to grow. If your business is already established and doesn't have one, maybe it's time to start working on one. The process of writing a business plan can do wonders to clarify where you've been and where you want to go.

Call me if you need help. (949) 903-4805

Approaches to preparing a business and marketing plan

The " I need help" approach.

1. PICK UP THE PHONE: Contact me to do the work for you. (949) 903-4805

The "Do it yourself" approach.

1. RESEARCH: Gather information about your salon and industry from trade associations, libraries, trade publications, federal agencies and those already in the salon business.
2. DEFINITION: Identify the approach, business model, and format that best fits your salon or salon expansion.
3. COMPETITORS: Study them carefully. They would not be there if they were not satisfying customers.
4. CUSTOMERS: Learn about your customers' wants and needs. Who are they? Where are they? How many are there? Why will they buy from you? The more you know about them, the better you can plan.
5. IMAGE: Decide what your image is or will be. What kind of impression do you want to give with your service, merchandise, quality, decor, packaging, personnel, pricing, ads, etc.? Does it create value for your business and customers? Or does it push customers into the waiting arms of the competition? 
6. RECORDS: Do you have a system for keeping track of your salon's numbers? Will it give the information needed to make good business decisions on a timely basis? If you need outside help, do you have arrangements to get it? Poor record keeping will undermine everything else you try to do.
7. MONEY: Plan your money needs carefully. Remember, it usually takes more money than first thought because of unexpected happenings. Have adequate money for working capital and for the purchase of needed resources.
8. MARKETING: Define the methods you will use to reach your customers and how you will inform them of what you do. This includes advertising, but is so much more.
9. PROJECTIONS: Bring together all of the above into projections of sales, expenses and profits. Do this for at least one year and preferably for three.
10. PROFESSIONAL HELP: Get help from professionals where needed. Consultants, accountants, lawyers, bankers, insurance brokers for information and answers to important questions.

Common problems faced by business owners

1. Lack of knowledge about what is happening in the business.
2. Failure to understand business numbers and how they relate to one another.
3. Not enough money.
4. Not enough customers.
5. Too much competition.
6. Failure to look into the future and plan future decisions.
7. Insufficient time.
8. Rapidly changing technology.
9. Lack of certain critical business and marketing knowledge and practical skills.
10. The mistaken belief that hard work will overcome all other deficiencies.
    

How can I help you?

1. Private, confidential one-on-one counseling about any business topic.
2. An opportunity to test your ideas or plans with an experienced business person.
3. Help in identifying areas where you need further information or reserach.
4. Business skill building through individual counseling, presentations, and training.
5. Entry into a network of business assistance which included industry and trade advice, product and service sales training, and leveraging technology.
6. Help in dealing with a specific business problems.
7. Help in exploring ideas and formulating alternative approaches and solutions.  
8. Business and Marketing Plan preparation.
9. A sympathetic ear when you just want to talk about your business.

Questions Owners/Stylist should ask themselves if they are comsidering opening a salon

1. As a Owner/Stylist (artist) do I have the skills to create beauty and wear all the hats that a business environment requires?
2. Am I willing to learn about those things I don't know?
3. Are my services and products different from others already in my market area?
4. Do I really understand the customers I intend to serve?
5. Can I prepare a credible, detailed business and marketing plan?
6. Do I have or can I raise adequate funding or do I have the budget resources keep a salon open for at least a year?
7. Am I willing to stick with it even in rough times?
8. Am I willing to put in the long hours that might be necessary?
9. Do I have the support of my family and friends?
10. Is my health up to the tasks ahead? What are my long-term health risk in this career?

Questions to ask yourself if you are already a salon owner

1. Do I really know what is happening in my business?
2. Am I making money in my business?
3. What is the attitude of my customers about my business?
4. Am I happy?
5. Is my business increasing or declining?
6. Did I plan for the future or did I just let it happen?
7. Will I have enough money to operate my business or to expand? Can I make it in this economy?
8. What will advances in technology do for my business?
9. Is my financial condition in balance?
10. Do I know what is happening in my industry? Or just bits and pieces?

Do I have the skills to prepare the necessary budget to grow my business?

1. Do you know what your money needs are?
2. Have you prepared a business plan that describes your business, its customers, and your needs for the money?
3. Have you estimated your borrowing capability based on your equity, credit standing, collateral and ability to repay?
4. Have you made detailed projections of revenues, expenses, and profits for two to three years into the future?
5. Do you have a current list of all collateral that you can gather to support a loan request?
6. Can you analyze your loan request, borrowing capacity, collateral and ability to repay? Are they realistic?
7. Have you spoke with a professional consultant, counselor, C.P.A., business advisor or associate to review your proposal.
8. Reviewed your proposal with your banker.  

Other important Questions

Why should you invest in good hiring and training procedures?

Recruiting the right employees and providing them with excellent training is crucial, regardless of whether employees are highly skilled professionals or low-skilled workers. Better-trained personnel exhibit six characteristics:

Competences:

1. They possess the required skill, and knowledge.  
2. They are friendly, respectful, considerate; and have pocess the necessary customer courtesies. 
3. They are trustworthy and reliable.
4. They perform the offered services consistently and accurately with responsiveness and accountability.
5. They respond quickly to customers’ requests, resolve problems, and communicate effectively.
6. They make an effort to understand the customer and communicate clearly at every touch point.

Why standardize the service performance process throughout your salon?

A service blueprint can simultaneously map out the service process, the points of customer contact, and the evidence of service from the customer’s point of view. Behind the scenes, the business must skillfully help the guest move from one step to the next. Service blueprints can be helpful in developing new services, supporting a “zero defects” culture, and devising service recovery strategies.

Why monitoring customer satisfaction is important.

Implementing a suggestion and complaint, customer surveys, and comparison shopping systems are just a few ways of collecting useful data on your customers wants and needs. Recognizings how a customer's wants and needs may vary in different geographical areas can allow businesses to develop region-specific programs to improve total customer satisfaction. Businesses can also develop customer information databases and systems to permit more personalized, customized service, especially online. Are the products and services you offer meeting all your customers wants and needs? If they are not buying from you, who are they buying from? Your competitor?  Other local retailers? Without this information how can you win them back?

Don't let profits walk out the door with someone you just made beautiful. I can show you how to keep those product dollars from walking right out the door, and leverage the looks you create as a walking billboard for new customers.

Call today to start your salon on the road to success. (949) 903-4805