2 to 10 Project: What Keeps You Up at Night?

By Tom Kuhn | 09/06/2012 12:28:00 PM

 

THE IMPORTANCE OF salon managers is magni­fied when you have more than one location. So much so, this was the issue most likely to keep owners up at night, according to our survey of 29 salons with two to 10 locations.

Why? More locations mean less control and the more distance between locations, the greater risk for sleepless nights. I learned this ­first hand as a co-owner of an eight location salon and spa. When something blew up in California, I couldn’t provide immediate support from our Minnesota base. And when we did, it was costly. They were much more on their own than salons close to headquarters. We needed the strongest and most trustworthy leader we could find.

Location managers can be the heroes or the Achilles’ heel of any multi-location business. Many are running $2-5 million businesses and being asked to do more with less. Multi-location salon owners realize that it is hard to keep their thumb on all aspects of the business. So is there a magic recipe?

Yes, we believe there are four keys to multi-location manager success, taken from our Q Program. It boils down to giving them training, tools and practices needed to fully engage the right-brained workforce and instill a culture of prosperity throughout your organization.

FOCUS: Managers can find it hard to focus on growth because they get caught up in the day-to-day issues. Think 3 C’s for an easy and repeatable way for managers to refocus on performance.

• Clarity: Provide tools to get their plan down to one page using text and visuals.

• Confidence: Help build con­fidence and gain results from a series of small wins.

• Closure: Don’t start something new without creating closure in another area to manage and limit the number of initiatives at any given time.

MEASURE: Managers often fall into one of three traps—measuring too much, too little or the wrong things. Simplify to the two most important numbers—client count and average ticket. Set targets and meet two criteria: significant and achievable. Most service providers can grow their business at least 17 percent with the right tools, training and practice.

ENGAGE: We de­fine engagement as winning hearts and minds. Managers need to engage their teams, clients and be engaged themselves. Think ACCE: appreciate, care, challenge and encourage your managers, and they will do the same with their teams.

PROSPER: This means teaching your managers how to manage their ATM—attention, time and money. Systemized calendars and communication are the keys to multi-location execution.

2 TO 10 NEWS

We are excited to announce the following four members of the 2013 Advisory Board: Bill Nordstrom, Weldon Barbers, Seattle, WA; Van Council, Van Michael Salons, Atlanta, GA; Kimberly Callet, Frederic Fekkai Salons, New York, NY; and David A. Raccuglia, Art + Science Salons, Chicago, IL.

A special welcome to our newest 2 to 10 salons: Wisteria, Milk + Honey, Vanis and Salon Buzz.

Salons in the 2 to 10 Study for 2012 include: About Faces Day Spa; Acapello; Art + Science; Atelier; Bird's Barbershop; Bob Steele; Design 1; Frederic Fekkai; Gene Juarez; Gila Rut; Ihloffs; John Roberts; Mark Pardo; Modern Salon and Spa; Natural Alternatives; Neroli; Paris Parker; Philip Pelusi; Pyure; Randolph's, Rizzieri, Shear Express, Simonsons, Van Michael, Weldon Barber, William Edge, World Class Salons, Zano Salons, Zona Salons.

DATA FROM THE 2 TO 10 PROJECT

• 93% are commission-based salons

• 66% have non-compete/nonsolicitation contracts

• 45.7% is the average service payroll, excluding payroll taxes and benefits.

• Backbar and retail inventory were ranked as the least-controlled expenses

• The most important key indicators were client count and average ticket

Through the 2 to 10 Project, Qnity compiled data from a 50-question survey and salon P&Ls to help our clients understand the capabilities and current reality of the multilocation market. While protecting the confidentiality their data, in this column we offer information to help other salons better understand multi-location pitfalls and opportunities.

2 TO 10 / QNITY PROFILE: FRÉDÉRIC FEKKAI SALONS

With a total of seven locations in five states, Fekkai impressed me by being the only national brand in the 2 to 10 Project. At a recent NYC Fekkai national gathering, and in our work together, I noted things they do to engage geographically dispersed salon managers.

• They brought their salon mangers and creative leaders together for unity.

• They fostered open dialogue and collaboration to solve issues.

• They created a space for community.

• They celebrated wins and expressed appreciation.

• And, they showed class with a champagne toast at the end.

 

 

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