MENU
SEARCHBy studying the 2 to 10 research, Qnity's Tom Kuhn determines the five budgeting-related activities the most profitable salons do, then shares his tips to get you started.
Based on the groundbreaking 2 to 10 Study*, 86% of companies that did five budgeting related activities were awarded top performer status in the profitability category. Although all five of these activities are completely under a salon owner’s control, only 16% of companies in this study perform all five of them.
In his complimentary new guide, Planning for Profits, Tom Kuhn offers owners the keys to success based on his research, including more than 300 assessments and his consulting work advising the best of the best.
Here is a summary of Kuhn’s five planning-related activities that the most profitable salons do, plus his tips for how to move forward in each of these areas:
Preparing a formal P&L budget: “The best way to prepare your budget is to start with revenue projections; then build in your expenses based on prior years, benchmarks and other factors; decide on your discretionary expenses; and finally, plan for profits,” Kuhn says.
Project your cash flow: According to Kuhn, include your key areas, such as debt repayment, tax payments, etc.; add in your discretionary items, for example owner draws; factor in your seasonal inventory buildups; then provide for contingencies, including the unexpected.
Budget for capital spending (CAPX): “Distinguish very clearly the difference between repairs, maintenance and capital improvements,” Kuhn advises. “Then decide on either a percentage of revenue or a specific dollar amount that you will allocate. There are pros and cons to each option—it depends on your business.”
Involve members of management: Kuhn recommends getting their input by asking them to come to the table with ideas after making sure they have done their homework. “Target their involvement based on the numbers they impact, following the ‘name to every number’ method. Finally, raise their level of financial literacy by providing financial management training.”
Incentivize members of management: Kuhn stresses the importance of creating bonus plans for managers that are based on sales for junior level leaders and profit for senior leaders. “Make sure the bonus plans are self-funding and provide financial training so these managers understand how they can impact the numbers!”
CLICK HERE to access Kuhn’s Planning for Profits guide.
* Participants in the 2 to 10 Study included many of the most successful independent salons in the U.S. with total combined revenue of $325M (189 locations); Brand (manufacturer) neutral. P&L analysis conducted by an independent financial analyst with 40 years experience (Barry Matthews). Conducted as part of a semester long study of salon performance by UMass Boston Entrepreneurship Center/College of Management. Direct correlation established between the 5 planning practices and high profits. P&L's were kept private, confidential and not shared with other participants.
After moving to Colorado and teaching at a cosmetology school, Allison Stock joined Zandi K as a stylist, eventually becoming part of the Leadership Team, Education Team and Master Bridal Team. Today, as Director of Operation, Stock is Owner Nicki Wenz's right hand, managing human resources and operations, education and career development, and coaching and culture.
The company's Concealed Bead Method is raising the bar for what professional extension education can deliver.
Scott maximized her micro-salon by transitioning from stylist to strategic owner, focusing on recruiting and station-sharing. By prioritizing her ownership role over behind-the-chair work, she grew her team to six stylists within the two-chair, 150-square-foot space before eventually moving to a larger facility.
The former CFO of Perdue Farms and owner of Hardy Seafood, Terry Owens delivers a wealth of wisdom and strategies for entrepreneurs in his new book, "Business is Simple."
After scaling her single-location salon business, SALON TODAY 200 Honoree Amy Pal recently sold her six-location Whip Salon for seven figures. Using the six Ps for maximizing a business's value, she's ready to help her peers do the same.
Buried inside the One Big Beautiful Bill Act are federal solar tax credit changes that deserve your attention now. Two of the credits that matter most to commercial property owners, the Investment Tax Credit and the Production Tax Credit, are still available, but only if you move fast. A third, the Commercial Building Energy Efficiency Deduction, has a hard termination date that is closer than most people realize.
Up to 40% of hair stylists ghost the salon interview stage, leaving owners trapped playing endless phone tag with uncommitted applicants. This data-driven report breaks down why traditional job boards create recruitment friction and reveals the modern messaging strategies high-growth salons use to get pre-qualified talent to actually show up. Learn how to transition from cold calling to high-conversion conversations that protect your time and fill your chairs.
Sponsored by Beautista
Spit fests, hostile threats, and even an overachieving matchmaker--SALON TODAY readers share their craziest client tales and how their team handled these tough situations with professionalism and grace.
Keeping your appointment book full when clients are in vacation mode takes more than a good Instagram post. It takes a plan. The 2026 Summer Marketing Calendar from Meevo gives salon, spa & med spa owners a month-by-month roadmap with sharp themes, key opportunity dates, and campaign ideas specifically designed for the beauty & wellness industry. Here’s to your summer season working as hard as you do!
Sponsored by Millennium Systems International
AI is transforming the beauty and wellness industry, and the future is about empowering people, not replacing them. Discover how Phorest AI helps salons, spas, and med spas across North America respond faster, personalize every visit, and keep human connection at the heart of the client experience.
Sponsored by Phorest
Owner Michaella Blissett-Williams credits her General Manager Gloria Hortua with [salon] 718's year-over-year, double-digit growth and says she's been able to scale the company to eight locations because she can rely on Hortua to manage daily operations.
Shine Time: Aluram’s High Shine Line Delivers Moisture and Shine with Clean Ingredients
Sponsored by Aluram
Elyse Rogers is an uplifting presence at The Headroom who makes the team feel heard even in stressful situations. Owner Danielle Cherewyk sings her praises in this installment of Meet the Manager.
Despite a slight and predictable decline in client traffic for Q1, resilient pricing power is driving year-over-year revenue growth in salons. The KIM Report's Alain Audet reviews the data and what it's telling us about the state of professional beauty.
Same-store revenue grew just 2% for the second straight year—and new guest visits declined across every segment of the industry. The 2026 Benchmark Report reveals where growth is actually happening, which verticals are pulling ahead, and what the data says about where your business stands right now.
Sponsored by Zenoti
Hair restoration is entering a new era driven by regenerative science. This paper explores how Exosome technology is transforming treatment outcomes by targeting hair loss at a cellular level. Discover why EXOGROW is leading this shift.
Sponsored by Dermapenworld
A salon brand is much more than a logo. In this thought-provoking blog, Leon Alexander, Ph.D., walks you through the difference. SALON TODAY suggests sharing this article with your team and leading a discussion at your next huddle, asking the team to define your business's brand.
