Salon Management

6 Business Component You Should Master to Ensure Your Future Success

Running a successful salon or spa requires more than providing the best haircuts, color services or facials in town—as your company’s owner, you need to be a business person first. Never has mastering core business skills been more critical. Unfortunately, your cosmetology school probably didn’t teach you the basics of setting up and running a business.

As a trusted accounting firm specializing in the salon and spa industry, Kopsa Otte CPAs and Advisors identified six of the most important business traits that successful salons have mastered, and they have prepared a document that outlines and explains each one, including:

• A Written Business Plan—understanding why you need one and what the important elements should be included.
• Establishing a Cash Flow Plan—sketching out expected incoming revenue and outgoing variable and fixed costs, as well as other expenses.
• Financial Statements—learning how to read them and understanding what it is telling you about your business.
• Knowing Your Numbers—between your financial statement and salon software, understanding which numbers you should know and pay attention to.
• Department of Labor Laws—an outline of the items that you should understand and with which you need to be compliant.
• Creating a Salon/Spa Culture—outlining some of the external threats to your business and understanding why a strong culture can attract both talent and guests.

Download our free document, “Be A Business Person First,” to explore these important business traits and starting your journey to mastering them.

By Kopsa Otte