Book Your C.H.A.I.R. Solid to a 6-Figure
Business Teleseminar
Module 1
Copyright 2011 © My Salon Scoop, LLC All Rights Reserved
Ready to Break 6-Figures and
Beyond?
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Copyright 2011 © My Salon Scoop, LLC All Rights Reserved
Book Your C.H.A.I.R. Solid to a 6
Figure Business Course Overview
Module 1: Setting Clear Goals
Setting clear goals helps identify early warning signs
Module 2 Happy Clients
Build your marketing around what YOUR clients value and drive cash
flow for your business
Module 3: Influence Beyond the Salon
Wow current and potential clients by making the most out of online &
offline opportunities
Module 4: Review Your Plan
Prioritize your ideas and create a written plan that reflect your goals
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Copyright 2011 © My Salon Scoop, LLC All Rights Reserved
In this call, we will cover
•
•
•
Get clearer on what makes YOU and your business special
Understand how to evaluate your own past projects
Develop specific goals for your business over the next 6 to 12
months
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Understanding YOU first
Source: http://bestofmichaeljackson.jclondon.com
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"I have no significant competitors but
myself." - Dan Kennedy
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Make it or Break it Management skills
Success Factors
Causes of Failure
Effective cash flow management
Niche Strategy
Pre ownership experience
Education
Delegation
Simple org. Structure
Lack of experience
Lack of accounting skills
Cash flow problem
Lack of marketing skills
Lack of education
Lack of strategic planning
Source: Journal of Small Business & Entrepreneurship
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Strategies to lead in your market
• Focus
• Differentiation
• Cost leadership
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Differentiation strategy
“ Salon Vox is Ann Arbor’s premier destination for worldclass hair, color, makeup and extension services. Our
team of skilled professionals takes pride in passionately
providing you with the quality service and experience
that you deserve.
”
http://www.salonvox.com/
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Focus strategy
“Through the art of hair, make-up, fashion and
photography, we aim to instill confidence, and inspire
self love by addressing, enhancing, accentuating and
then capturing women's beauty on the outside, while
promoting natural, organic and health conscious
products, techniques and lifestyle.
”
http://thedamnsalon.com/
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Cost strategy example
“It is our mission of The Weave Shop to provide quality
hair care services at an affordable price, while providing
good paying jobs to our employees and enhancing the
communities we service.
”
http://www.theweaveshop.com/
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Differentiation strategy
“ At Hair Cuttery, our vision is to be a company of happy
people. And we believe that when our Associates are
happy, our clients are delighted.
”
http://www.haircuttery.com/
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Which strategy makes the most
sense for me?
Source: http://www.nbc.com/Deal_or_No_Deal
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What is a strategy?
Result
Big
picture
idea
Goal:
Strategy:
Increase sales by 20%
each month
Add services for
natural hair clients
Tactics:
Action
plan
Participate or
sponsor a Natural hair
meet-up
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What makes a marketing strategy
good?
• A realistic assessment of businesses strengths and
weaknesses
• Clear understanding of your market
• Thought through the implication on your operations
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Assess your biggest challenges
Average sale per
client
Existing Clients
New clients
You are typically booked, but
you are not able to meet target
monthly sales goals
Your costs of services have
changed (rent, products, etc.)
Some services are lagging in
volume
You don’t have a specialist on
staff to perform in-demand
services
You have a large inventory of
retail products on your shelves
You lost a number of
regular clients in the last 6
months
Your clients are booking
appointments less frequently
You face strong competition
by rival salons in your area
Clients spend per visit has
decreased
Client satisfaction has
declined
You have regular slow days
Client base is not large
enough to meet financial
goals
Salon neighborhood has
changed
Salon location has changed
You do not have enough
client referrals to meet sales
goals
You want to attract new
clients that are different than
the majority of your existing
clientele
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Examples of Possible Strategies
• Add new services/retail products
• Refocus on core set of services (discontinue lagging
services)
• Target new demographic (i.e. men)
• Add more assistants to improve wait time
• Improve level of service for top 10% of clients
• Create a tiered pricing approach
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Evaluate your past projects
Source: http://sharetv.org
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Questions to ask yourself for each
strategy
• How much sales did it generate?
• Did the strategy have other positive benefits in terms of
relationships, operational improvements, or branding?
• Did you feel strategy was consistent with your
brand/mission?
• Did you give it enough time to measure success?
• Afterward, did you think to things that you could have
done better?
• Do you want to do it again or continue?
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Example: Launched Keratin
Treatment Services
Summary
• Launched new higher-priced
product in order to increase
avg spend per client and add
new offering
• Launched promotion after
negative press related to
Brazilian Blowout
?
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Example: Launched Keratin
Treatment Services
B+
Report Card
• Missed sales goal: Generated $1,000 below new
service goal in 1st month
• Bad timing: Launched promotion after negative
press related to Brazilian Blowout
• Client interest high: Clients asked a lot of
questions
• Product/service fit with brand: You picked a low
formaldehyde line
• Target market: May be more demand from
potential vs. current clients
• Generated increase in web traffic related to
promotion
• Sales in other services increased by $500
Verdict: Keep promoting service. Use service to attract new clients
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Get disciplined to set measurable goals
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How do your key metric goals
translate into sales
Base active clients
Avg visits per month
Total Visits in 1st Month
Avg service sale per visit
Avg retail sale per visit
200
0.58
117
$
$
Client % retention per month
New client growth per month
New client retention
7 times per year
60
10
80%
15%
33%
Sales per year =
$ 119,781
Retained Client
New Client revenue
$ 78,400
$ 41,381
30 per month
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What does an improvement mean to
your bottom line?
Sales per year =
$ 119,781
Value 10% improvement in retention
$
Value of $10 increase in service ticket
$ 17,112
Value of 1 more visit per year
$ 17,112
9,800
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Consider how you can track other
metrics
•
•
•
•
Average days between clients’ appointments
Bookings of specific service
Customer referrals
Campaign tracking
–
–
–
–
Emails-opened
Phone inquiries
Website traffic
Coupons redeemed
Embrace Technology to track results!
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Daily goal setting: Gratitude journal
Gratitude: What do I have gratitude for today?
Opportunity: What opportunities do I have in my life that I
am looking forward to?
Did: What did I do today (or yesterday) that gave me a
sense of accomplishment?
Do: What will I do tomorrow (or today) that is important?
Appreciate: Who in my life do I have appreciation for
today?
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Module 1 Homework
• Write out or revisit your mission statement
• Evaluate your top 3 2011 strategies to-date
• Create 3 new goals based on analyzing your revenue
numbers with the Excel model
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Preview of Module 2- Happy Clients
• How & when to survey clients for useful information to
make better operation decisions
• How to develop a possible list of strategies based on
your current clients
• How to communicate more effectively with your clients to
implement your strategies
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