What Strategies brings to the table
Transcription
What Strategies brings to the table
What Strategies brings to the table strategies.com Who We Are strategies.com STRATEGIES The salon industry’s resource for leadership, performance and growth for 21 years S ince 1993 Strategies has had one goal: to help businesses operate more efficiently and profitably. We’ve worked with owners and their teams to create businesses that balance profitability with a happy work environment and devoted customers. Strategies has partnered with numerous manufacturers and product companies to provide success tactics to their affiliates. Everyone at Strategies has one mission: empowering our clients to be their most successful by teaching best practices that result in tangible improvements in each of the Four Business Outcomes: profitability, productivity, staff retention and customer loyalty. Strategies was founded by Neil Ducoff, a leading expert on business education. The company, with its nationwide team of coaches and educators, has delivered top-quality business education to countless salons and spas. Our network of seminars, onsites, coaching services and webinars offer the opportunity to streamline and improve systems, and to grow profitability. Strategies has helped thousands of salons: • Develop highly-profitable retail sales programs. • Increase pre-booking rates. • Learn to use their financial reports. • Discover new ways to compete in changing economies. • Increase staff productivity. • Overcome cash-flow challenges. • Improve first-time and existing client-retention rates. • Decrease employee turnover. • Bring their companies to unprecedented levels of profitability and productivity. Strategies: Leadership • Performance • Growth strategies.com Neil Ducoff Founder and CEO, Strategies Author: N o-Compromise Leadership Wake Up! Fast Forward D uring the last 38 years, Neil Ducoff has coached countless businesses, including Aveda, Gillette, Proctor & Gamble, Planet Wings, Canmeng International Taiwan, Profound Beauty Products, Kerastase Paris, EvelineCharles Canada and L’Oreal, on how to achieve the highest levels of success and profitability, while creating a positive, rewarding workplace. He has led seminars throughout North America and in such countries as Taiwan, Spain and Mexico – as well as served as a presenter at major healthcare, computer, manufacturing and franchise conferences, including Jack Stack’s National Gathering of Games, the 2011 Quality Conference and the inaugural Esthetics China Exhibition and Congress. Neil is the founder and CEO of Strategies, the premier training and coaching company for the beauty industry that he founded in 1993. Based in Centerbrook, Conn., Strategies’ cutting-edge curriculum of business courses is offered throughout the U.S. and Canada, led by a national network of certified coaches who have completed a rigorous training program. For 13 years Strategies published a monthly business magazine that provided real-world solutions to entrepreneurs. Neil has gained international respect as the guru of team-based compensation. As well as the award-winning No-Compromise Leadership: A Higher Standard of Leadership Thinking and Behavior, he is the author of Fast Forward, the salon and spa industry’s only business reference manual. He has been honored with the 2005 Art of Business Award, named one of 12 business “Legends and Icons” by the annual Serious Business Conference in New Orleans in 2006, and invited by the B.E.S.T Foundation and the Anderson School of Business at UCLA to serve as a judge for both the 2006 and 2008 Global Salon Business Awards in Barcelona. strategies.com Bruce Hourigan President, Strategies B ruce Hourigan joined the company six years ago as Vice President Business Development he was tasked with driving the growth of company’s business model; execute sales strategies against corporate goals and objectives, and develop and scale up new business and customer bases. Overall, as VP was charged with directing the business development and sales effort monitoring the results, quantifying the successes and shortfalls, adjusting as needed, and contributing the baseline strategies employed and fostering the strategies to be employed. A skill in selling strategic alliances on a corporate level was an essential part of his success. Promoted to President in early 2012 his primary responsibilities are to develop a plan that will help the company to advance its mission. Other tasks are, planning and implementation of objectives that help the company to grow and to prosper. Offer leadership, develop strategic plans to help the company to advance and identify opportunities that help to promote company revenue, overall growth and profit. Oversee operations of the company in order to ensure that the company shows efficiency as a whole, provides quality and service. Mr. Hourigan is an enthusiastic and dedicated professional with extensive experience across all areas of corporate sales and management. An exceptional leader who is able to develop and motivate others to achieve targets, He demonstrates a strong ability to manage projects from conception through to successful completion. A proactive individual with a logical approach to challenges in high-pressure situations. Specialties: Maintaining existing and building new business relationships. Research and drive business expansion/collaboration opportunities. Identify future industry trends and client contact opportunities. Develop strong client relationships on all levels. Participate in key industry organizations, maintain high level of visibility. Oversee development of proposals and budgets. strategies.com Strategies Team Corporate Staff Neil Ducoff CEO & Founder Bruce Hourigan President Eric Ducoff Vice President Joanne Davies Vice President of Administration Cameron Taylor Graphic & Web Designer Certified Strategies Coaches Rachel Aidan Kim DeLisa Mary Fischer Robin Gribbin Daryl Jenkins Melanie Loboda Chris Murphy Brett Pierce Kristin Stutz Steven Swanson John Villamil Mary Walker Michael Yost strategies.com We Get Results strategies.com Targets for Success: Key-Growth Indicators and Financial Benchmarks The following are the key-growth indicators and financial benchmarks that Strategies recommends across all our seminar events and consulting relationships. When met, these number produce sustainable bottom-line growth. Unfortunately, the industry averages for these benchmarks are well below these recommendations — not because these goals are too aggressive, but because there is not widespread understanding of what these numbers really mean, as well as a lack of systems to support them. The salons that are hitting these goals are doing so because they have the knowledge, systems and tools to drive the business. Better systems mean consistent retailing. More money on the bottom line means increased retail purchases. Give your salons the tools to succeed, and they will reward you with product loyalty and increased orders. Key-Growth Indicators First-time client retention target range: 45%-60%+ • The ratio of how many first-time clients return for a second visit within 90 days Existing client retention target range: 75%-90% • Multiple visit clients who return within 90 days Productivity target range: 80%-90% • Service hours available for sale vs. hours sold Retail product per client sold (target range in units): 2-4 Pre-book ratio target range: 60%+ Clients receiving verbal/written retail recommendations: 90%+ Average client visits per year: 6+ Financial Benchmarks Annual revenue growth rate per year: 15%-25% • Higher rates are possible but not always sustainable long term Net profit (not including owner’s pay/draw): 10%-20% • Higher net profit is possible under certain conditions Service payroll percent of total service and retail revenues: 30%-35% Professional product cost: 4%-6% of service revenue Retail product cost: 48%-54% of retail revenue • This percent will fluctuate based on buying incentives and seasonal opportunities Target Gross Profit Margin: 45%-55% • Total revenues – service payroll, prof/retail product cost, credit card fees Front desk and administrative payroll: 10% or less Officer’s salary: 10% (this is only a guide and may vary if the owner is a service provider) Advertising & Promotion: 4%-8% (this is only a guide and will vary based on salon/spa/medspa) Rent: 6%-8% (this is only a guide and will vary based on location) Total General & Administrative expenses: 35%-40% Cash reserves: Minimum three months operating expenses strategies.com TE ST IMON IA LS Since 1993 Strategies has been teaching a better way for salons, spas and medspas to do business. Now, in their own words, we let our attendees share their results. strategies.com TE ST IMON IA LS THE INTERNATIONAL CONGRESS IN AESTHETICS ANTI-AGING & MEDICAL SPA PROFIT MAXIMIZATION FOR CHINESE BEAUTY SALONS AND SPA CENTERS 9-11 June 2011 InterContinental Beijing Beichen www.aestheticschina.com SPEAKER INTRODUCTION (PART) Ms. Catherine Brillantes-Turvill CEO of Philippine Spa Association Ms. Catherine Brillantes-Turvill (Cathy) is a pioneer and leader in the Philippine Spa and Wellness Industry. She is the President of Nurture Spa Village, one of the Philippines’ first destination spas which was named recently by CNN Go as “One of the 28 Most Relaxing Spas in Asia” and by Asia Spa Magazine as one of the Top 7 Spas of the Philippines. Cathy is also President of Spa Professionals International Development Center, the first internationally accredited spa school in the Philippines. Cathy was the Founding President of the Spa Association of the Philippines, now renamed PhilWell: Philippine Wellness and Spa Association, where she currently sits as President. She was a Board Member of TIEZA (Tourism Investment & Enterprise Zone Authority), PHILTOA (Philippine Tour Operators Association), Asia Pacific Spa & Wellness Council, and a mentor in the Philippine government’s Entrepreneurship Program “Go Negosyo”. Cathy is a licensed Inner View Consultant, a licensed Instructor on Customer Service by Zenger Miller USA, Wilson Learning USA, and a licensed instructor on Quality Circles Training by Quality Circles USA. Mr. Neil Ducoff Founder & CEO of STRATEGIES, USA Mr. Neil Ducoff is the founder and CEO of Strategies, a business training and coaching company specializing in the salon and spa industry. During the last 40 years, he has coached more than 3,500 businesses, including such corporate giants as Aveda, Gillette, Proctor & Gamble, and L’Oreal, on how to achieve the highest levels of success and profitability, while creating a positive, rewarding workplace. As one of the industry’s most dynamic speakers, he has led more than 4,500 seminars throughout North America and such countries as Taiwan, Spain and Mexico – as well as served as a presenter at major healthcare, computer, manufacturing and franchise conferences, including Jack Stack’s National Gathering of Games. He is the author of Fast Forward, the definitive business resource book for salons and spas, and the 2010 IPPY Award winning No-Compromise Leadership, published by Strategies. Mr. Chen Han jiang Founder of Kung Sheung International Group Mr. Chen Han jiang is the founder of Kung Sheung International Group, and the chief planning officer in health and leisure sports field. Mr. Chen has very practical experience in anti-aging and medical spa industry. He is very famous for his exclusive operation and management theory in terms of spa scheme design, return of investment, and customer relationship management. As professor of the Wu Han Sports College and Nan jing hospitality management college, Mr. Chen is often invited by other universities such as the Peking, Shang Hai Fu Dan, Zhong Shan Universities and academic institutes to make speech and attend high-end forums. Dr. Li jian ning Peking University Third Hospital Plastic Surgery Dept. Director Dr Li has been working within plastic surgery industry more than 40 years, who have very outstanding reputation in china. Furthermore, as a famous expert, he not only works with many medical and plastic surgery associations, but also publishes lots of academic essays around China and worldwide. Simultaneous Mandarin/ English translation Diamond sponsor Platinum sponsor *Please contact us for further information Dear Neil, Great thanks to your present to our aesthetic China. Your speaking makes our conference quite professional in anti-aging industry in China. Without your involvement our first conference cannot be so successful & prestigious. Please accept Joy United and IIR China’s sincerely thanks and hoping you had a nice time in China. Thanks with best regards, Anna Li Managing Director Aesthetic China strategies.com TE ST IMON IA LS Hi Neil! We just thought we’d drop you a line and say hi! Micki, Dave and I met last night and we were reminiscing on the past several years and we can’t believe how fast time has flown by since you became our coach! We wanted to give you a little update to let you know how things are going. You will be happy to know that we are still religiously holding huddles! Additionally, our service provider payroll is running at right about 28%. We have consistently had monthly pre-booking averages of 74%+ and quarterly reviews continue to run smoothly! We are on pace to meet $3,000,000 in gross revenue this year for the first time. Thank you for all that you did to get us to this point! We think about you and Strategies often! What we learned over that time period with you was invaluable and we appreciate it more and more as we watch our numbers improve regularly. Thank you, and you know we would love to see you if your travels ever bring you back to the Hoosier state. Christi Thompson Salon 01 strategies.com TE ST IMON IA LS Dear Neil, We’re in our new home, we’re moving into month 8 of team concept and “hang time” is in full force! I am planning to make it back to CT in November for the Being the Boss Beyond. Productivity is now in the high 70%’s, retail is steady at 15%, prebook hasn’t fallen below 60% in months, and retention is excellent. Moral is the best it has been, we just completed the first generation of skills certification graduates and are we are preparing to hire 4 new stylists for generation two in our new culture. I have (already) been approached with expansion/franchise interest and although it is an exciting idea; there is SO much more work to be done here first. I look forward to learning more about how to grow this company on all levels, especially in the development of each employee’s fullest capacity utilizing a combination of conscious business and the team culture. It’s all very exciting! The real reason for my email is to invite you both to join us IN CELEBRATING YOU & the new location. On Sunday, October 23rd Aidan James Salon is celebrating the people whose support made this grand opening possible. Join us at of our new location with an evening of gratitude, hair, fashion, food and cocktails. Doors open at 5pm with a special dedication to Neil and the whole Strategies family beginning at 5:30pm. (Ending by 8pm) Although I intend on recognizing several professionals whose support has been crucial, it is truly Strategies that is the guest of honor. Without your dedication to evolving business structure, communication and the development of the education you offer I am certain I would not have a business today. Warmly, Rachel Aidan Aidan James Salon - Nashua, NH 03063 VOTED BEST SALON IN NASHUA 2007, 2010, 201 strategies.com TE ST IMON IA LS “We are now HITTING our retail sales-to-revenue percentage goal every month! Strategies’ encouragement to stay focused on the ‘No Compromise’ mantra does rub off on teams that truly have a desire to grow!” Roszetta Cotton INFlight Hair Salon Durham, North Carolina “I came thinking we were doing everything right, but realized we still have a lot to work on. I’m excited to go home and perfect our systems and customer service!” Kristin King Fritz’s Salon & Spa for Men Louisville, Kentucky “Real-world view of what we live every day – with solid, practical ‘makes-sense’ solutions. Awesome! There were so many areas I found helpful and practical.” Vivian McIntosh-Gregory Miss Vivian’s Salon & Spa Madison, Indiana “A great roadmap to business success! We were fed the elephant one bite at a time and it was delicious. Great blend of instructors. Life changing.” Jodie McNaughton Hush Salon and Spa Guelph, Ontario strategies.com TE ST IMON IA LS strategies.com TE ST IMON IA LS I’ve worked with and recommended Neil and the Strategies team for 15 years because of their knowledge of the industry, unique approach to creating no-compromise leaders, and proven methods to improve cash flow and revenue. John Harms President & CEO Harms Software strategies.com TE ST IMON IA LS Attending the Incubator was a pivotal moment for Jackson Ruiz Salon Spa. To this day, its teachings remain at the core of our daily systems and team-based culture. Allen Ruiz ”Hairstylist of the Year” 2007 North American Hairstyling Awards (NAHA) Jackson Ruiz Salon Spa Austin, Texas strategies.com TE ST IMON IA LS After 23 years in business, the Incubator blew me away. We immediately embarked on a total reengineering of our business that was exhilarating and profitable. I am thrilled to say we broke $2 million is sales in our 25th year. More importantly, profit is up 26%, and growing much faster than sales each year. Turnover has been less than 5% per year, payroll percentage is down, cash is available and predictable and running the business is fun again. Thank you Strategies for making me look forward to another 25 years. Mark Luikart Mark’s Place New Philadelphia, Ohio strategies.com Our Expertise strategies.com Key Topics Business Plan Productivity Marketing Managing Time Broadbands Workplace Safety Sticking to a Budget Staff Retention Performance Evaluation Open-Book Management Team-Based Pay Planning Your Exit Strategy Cash Flow Employee Motivation Client Retention Compensation Skill Certification Workflow What’s Your Business Worth? Vendor Partnerships Pricing Gift Certificates Ethics Health Insurance Retirement Plans Culture Product Diversion Booth Renting Total Quality Management Selling Systems Scoreboards Team Huddles Building a Brand Ad Campaigns Crisis Management Conquering Internal Resistance Self-Sabotage Effective Decision Making Workplace Diversity Communication Tipping Why Details Matter Training New Employees Business of Balance Why Values Matter Everyone is in Sales Your Competitive Advantage It’s HOT to be GREEN! Ground Rules for Greatness Technology Who owns the Customer? The Art of Negotiation Take Control of Conflict Non-Compete Agreements How to Finance Growth Paying Wages Under the Table Maximizing PR Is It Time for Expansion? Networking for Success Family-Owned Businesses Success on the Internet The Fuel That Sparks Success Lifelong Learning Why Bigger Isn’t Always Better Put Customers First Operation Teamwork strategies.com We Rock strategies.com WE RO C K ! the 2006 global salon business awards: a judge’s perspective The 2006 GLobaL SaLon buSineSS awardS A Judge’s Perspective By Neil Ducoff W Canadian winners, the fact that both of these owners won hen the first Global Salon Business Global Salon Business Awards told me something distinctively Awards® took place in 2004, I followed the important about the judging process. The Entrepreneur of process with great interest for two reathe Year Award went to Eveline Charles, owner of the Evesons: First, it was founded by Paula Kent line Charles Salons Spas based in Edmonton, Alberta. At the Meehan, the founder of Redken, who I time, Eveline had five locations generating about $0 million greatly admire for her continued contributions to industry; a year. In contrast, Michele Spooner, owner of Shear Heaven and second, the judging and the award process is designed Salon located in Cold Lake, Alberta, had sales and administered by the UCLA Anderson of approximately $300,000 at the time. That School of Management. A number of Stratetwo businesses so dramatically different, yet gies customers ask if I would nominate them superbly systemized, profitable and well-led, for the 2004 Global Salon Business Awards, communicated to me that the Global Salon which I did. When I started to receive requests Business Award judging process was based on for letters of reference for entry packages, I outcomes rather than image and appearance. began to take a closer look at exactly what a In late 2004, I decided to contact Kristin salon was required to submit. To my delight, Firrell, executive director of the BEST Founit was quite extensive and far exceeded the redation, producers of the Global Salon Business quirements of any “best salon” award program Neil and Joanne Ducoff Awards, to learn more about the program and that I had previously seen. the judging process. To make a long story short, I was invited After 2004 Global Salon Business Award Ceremony that to be a judge for the 2006 Global Salon Business Awards. was held in London, England, I was thrilled to learn that two of the U.S. winners were Strategies Incubator graduates and The Live Judging using our team-based pay system. I was even more thrilled to Of the ,700 salons that were nominated for the 2006 Global learn that two of the five Canadian winners were also StrateSalon Business Awards, 394 submitted entries, 347 were acgies Incubator graduates and practicing team-based pay cepted and 247 qualified to move on to the live judging. To — and one of those salons won the coveted Salon Entreprebe accepted, your entry must be complete. To qualify for the neur of the Year® Award. live judging, your business must meet the award criteria. For Other than the fact that I personally coached both of our www.strategies.com • 800.417.4848 strategies.com WE RO C K ! the 2006 global salon business awards: a judge’s perspective We judged each entry in three specific areas: . Internal management focusing on leadership, team philosophy, compensation and benefits, education and training, and rewards and recognition. 2. External management focusing client service initiatives, loyalty programs, marketing, promotion of salon services and community service initiatives. 3. Business management focusing on the original investment in the business, improvements and expansion, level of risks taken, future plans and financial management. Winners were to be selected in the following categories per participating country: • Salon Entrepreneur of the Year™ Awards are presented, in both independent and chain salon categories Neil presenting the Global Award for Client Philosophy/Marketing to Phillippa Middleton, (including franchised businesses), to owner of Is Bliss Salon & Spa located in New Zealand. the entries with the highest scores in all three areas of judging criteria. This coveted award recognizes the salon owners whom have achieved example, your salon can look great and have very impresextraordinary success through their managerial innovation sive sales, but if it’s barely profitable or losing money, it won’t and entrepreneurship. These business owners have developed qualify. a unique and innovative culture, team, systems and strategies The live judging phase took place on March 9 – 2, that make them highly successful business leaders, which is 2006 at the Anderson School of Management at UCLA in demonstrated through exceeding the performance standards Westwood, Calif. Thirty judges from all over the world came in all three areas of judging criteria: Salon Leadership, Client together for a specific purpose; to find the best of the best. For Philosophy/Marketing and General Management. me, it was an amazing opportunity to meet and to work alongEntrepreneurial Excellence Awards are presented to those side this international “Who’s Who” of the salon industry. salons with the highest score in each of the three individual Our orientation to the live judging process was conducted areas of judging criteria as follows: by Dr. Alfred E. Osborne,Jr., Senior Associate Dean of the • Entrepreneurial Excellence Award for Salon Leadership: Anderson School of Management. Dr. Osborne made it clear This award recognizes the entrepreneurial leadership style of that our mission was to score each entry against the judging the business owner/s and the well-being and satisfaction of criteria, not against other entries, reiterating that our task was their employees. The key considerations include an assessto find the best of the best. The judges were divided into nine teams of three. Each ment of their internal systems, such as: employee attraction and retention, innovative compensation and benefit programs, judging team had approximately 30 entries to judge over two days. All nine judging teams were separated and worked in employee development, rewards and recognition. • Entrepreneurial Excellence Award for Client Philosophy/ private offices or conference rooms. We only saw and worked Marketing: This award recognizes the philosophy, mission on the 30 entries we were assigned to judge. and vision of the salon as it relates to the customer, includThe work that went into compiling and organizing each ing an evaluation of the salons external management of the judge’s massive six-inch binder visually exemplified the Global business in regard to brand and image, marketing & promoSalon Business Awards commitment to thoroughness and tional programs, innovative customer attraction and retention excellence. In addition to procedures and other pertinent data, programs, customer service policies, return visit initiatives, the bulk of each binder was dedicated the written essays of the loyalty programs and incentives, as well as the active role the 30 entries each judging team would be scoring. The bindsalon plays in community-based projects . ers were even organized in the order each of the three judges • Entrepreneurial Excellence Award for General Management: on a team would present each entry’s overview. And at great This award recognizes the entrepreneurial background and expense, all foreign language essay entries were painstakingly philosophy of the owner/s and the unique culture that they translated. Translators were also made available to the nine have created in the salon environment and in their commujudging teams to translate everything from brochure and advertising text to financial statements and tax returns. nity. Of particular focus is an evaluation of the owners overall www.strategies.com • 800.417.4848 2 strategies.com WE RO C K ! the 2006 global salon business awards: a judge’s perspective management skills including the financial management of the business and the success and accomplishments achieved in regards to sales, profitability, growth and sales productivity. Scoring To do the actual scoring, we used a Rubric Scoring method of 5, 4, 2, . Because there is no “3,” judges had to decide if the salon was above the line with a #4 meaning “exceeds industry standards” or below the line with a #2 meaning “meets industry standards.” A #5 identified “innovative and pioneering” strategies and results. A # simply means, “does not meet industry standards.” It was a excellent scoring method as it forced each judge to truly evaluate and score each category as a 4 or better, or a 2 or lower. As we completed our individual scorecards for each entry, a UCLA Official Facilitator would enter our scores into the proprietary judging database. No one, except a select few at the UCLA Anderson School would know the results until they were announced at the award ceremony in Barcelona. barcelona The Global Salon Business Forum and Award Ceremony took place on June 3 - 6, 2006, in Barcelona, Spain. Nearly 80 of the world’s leading salons, representing 2 countries were honored with the coveted Salon Entrepreneur of the Year™ and Entrepreneurial Excellence awards at a ceremony that followed three days of incredible seminars, panels, educational forums, dinners and exclusive celebrations. Everything about this event was first class. The opening ceremonies were held in Barcelona’s Olympic Stadium, site of the 992 Olympic Games. Just like opening ceremonies at the Olympic Games, following their country’s flag the 80 winners marched out of the tunnel and past the grandstand. The 30 judges followed. Never in my life would I have ever imagined that I would march into an Olympic stadium! It was exhilarating not to mention loads of fun. After the opening speeches, there was entertainment and of course, lots of food and wine. Under brilliant stars on a perfect evening, the stadium lights went dark the grand finale of fireworks worthy of this special opening ceremony. What many seem to overlook is that the actual award ceremony follows the Global Salon Business Forum that offers up three days of business education, lectures and workshops from industry and business leaders. For example; when would you ever have a chance to attend an entrepreneurial business class taught by Vidal Sassoon? Whether you’re a winner or not, this is great education and a rare opportunity to meet and network with the best salon owners from all over the world. The award Ceremony Think “Academy Awards.” Black ties and evening gowns gave the award ceremony that extra special excitement. The banquet room was exquisitely decorated and the stage was truly impressive. And there they were on right side of the stage bathed in white and blue lights, 80 of the most impressive award trophies one could imagine. Finally, the lights went down and Leeza Gibbons, our host www.strategies.com • 800.417.4848 for the evening, took the stage. You could feel the energy in the filled-to-capacity ballroom as Leeza introduced the Global Salon Business Award founder, Paula Kent Meehan, and executive director, Kristin Firrell. It was a truly memorable moment when Vidal Sassoon Neil Ducoff, Paula Kent Meehan took the stage to receive the and Vidal Sassoon namesake, Vidal Sassoon Lifetime Entrepreneurial Achievement Award. Sassoon most humbly thanked the industry and hairdressers all over the world for recognizing his work and contribution to elevating the artistry and professionalism of cutting and styling hair. Presenting Vidal with his special award was Paula Kent Meehan, Kristin Firrell, Michael Gordon, Vivienne Mackinder and Lluis Llongueras. Hairdressing pioneer and accomplished artist and sculptor, Lluís Llongueras, was honored during a surprise presentation for his artistic and business achievements over six decades. Presenting Llongueras with this special award was Michael Gordon, Carlos Colomer, Xavier Sala-i-Martin, and Paula Kent Meehan. And then the award presentations began. One by one, three teams of judges took the stage to present the awards to the three categories of Entrepreneurial Achievement Awards: leadership, client philosophy/marketing and general management. It was non-stop cheering and applause as each winner took the stage and was presented with their Global Salon Business award. By mere chance, I had the honor to present my long-time friend Adam Broderick, owner of the Adam Broderick Salon in Ridgefield, Conn., with an award for client philosophy and marketing. When all of the Achievement Awards were presented, it was finally time to present the 2006 Salon Entrepreneur of the Year Awards. It was grand finale representing the culmination of all the hard work and attention to detail of the BEST Foundation, UCLA and the thirty judges the best-of-the-best took the stage to resounding cheers and applause. why you should enter in 2008 From the three-day live judging session last March and the pageantry of walking into the Barcelona Olympic Stadium with my fellow distinguished judges, to the excitement and elation of Global Salon Business Awards ceremony, the experience and memories will stay with me for years to come. My message to all salon owners who read my personal account of 2006 Global Salon Business Awards is simple; if you are not nominated for the 2008 awards, ask someone to nominate your business and put the time, energy and creativity into assembling submitting your entry. If you are nominated, please do the same as there are too many worthy salons that simply did not take the time to submit an entry. 3 strategies.com WE RO C K ! the 2006 global salon business awards: a judge’s perspective Strategies Seminar and Coaching Clients Win Big Strategies received a special award that night too. It wasn’t announced for all to hear or a shiny Global Salon Business Award, but it was a most special nonetheless. Of the 0 U.S. winners at the 2006 Global Salon Business Awards, five are Strategies Incubator graduates (two are coaching clients, and three are on our team-based pay system). Of the five Canadian winners, three are Incubator graduates, two of which are on team-based pay and received the “Salon Entrepreneur of the Year” awards in single and chain salon categories. No other industry business education company can make this claim. Susan & Julie Santsche The Spa at Personal Choice Eureka, Calif. Bonnie Waters Changes Salon and Day Spa, Center for Well Being Walnut Creek, Calif. Eric & MaryFisher Eric Fisher Salon Wichita, Kan. Adam Broderick (with Neil) Broderick Salon Ridgefield, Conn. Robert A. Zupko Robert Andrew The Salon & Spa Gambrills, Md. Shinae Lee and Eliane Michel Eliane’s Hair & Esthetics Vancouver, British Columbia Eveline Charles EvelineCharles Salons-Spas Edmonton, Alberta Ray Civello & Raffaela Caruso Civello Salon Spa Toronto, Ontario Entrepreneurial Excellence – Salon Leadership: The Spa at Personal Choice, Eureka, Calif. Owners: Susan & Julie Santsche Incubator grads and practicing team-based pay. Entrepreneurial Excellence – General Management: Changes Salon and Day Spa, Center for Well Being, Walnut Creek, Calif. Owner: Bonnie Waters Incubator grad practicing team-based pay. Salon Entrepreneur of the Year – Single Unit: Eric Fisher Salon, Wichita, Kan. Owners: Eric and Mary Fisher Attended Strategies business seminars. Entrepreneurial Excellence – Client Philosophy/Marketing: Adam Broderick Salon, Ridgefield, Conn. Owner: Adam Broderick 1996 Strategies Incubator graduate. Salon Entrepreneur of the Year – Single Unit: Robert Andrew The Salon & Spa, Gambrills, Md. Owner: Robert A. Zupko, Attended Strategies business seminars. Salon Entrepreneur of the Year – Single Unit: Eliane’s Hair & Esthetics, Vancouver, British Columbia Owners: Eliane Michel and Shinae Lee Incubator grads and practicing team-based pay. 2004 & 2006 Salon Entrepreneur of the Year – Multiple Units: EvelineCharles Salons-Spas, Edmonton, Alberta Owner: Eveline Charles Strategies consulting client and team-based pay. Entrepreneurial Excellence – Client Philosophy/Marketing: Civello Salon Spa, Toronto, Ontario Owners: Ray Civello & Raffaela Caruso Incubator grads. www.strategies.com • 800.417.4848 4 strategies.com Our Superstars strategies.com OU R SU PE RSTA RS Lunatic Fringe ‘We hold people accountable, and we don’t hold people down’ I f you’re looking for “a group of people who share a set of radical principles and strive to create a like-minded atmosphere,” then you’ve arrived at Lunatic Fringe, the brainchild of husband-and-wife entrepreneurs Shawn Trujillo and Angie Katsanevas. Shawn, with 16 years in the industry, and Angie with 13, took similar career paths, working their way up as assistants through master stylists booked many weeks in advanced. Ten years ago, Angie suggested opening their own salon, and on July 1, 2000, the first Lunatic Fringe salon was opened in a 700-foot space in downtown Salt Lake City. Six chairs quickly expanded to 13, and in two years, the couple had a second location. “We did every position, 110 percent. We were the cleaning people, we were doing hair, we were doing the towels at 2 in the morning. I learned along the way, until I met Neil [Ducoff]. As we were growing, we realized that we needed more education. We needed to expand our business knowledge to grow,” explained Angie. “In the blink of an eye, we were responsible for 35 staff members. That helped push us in the direction of industry-specific coaching to optimize our business and add more security to the business,” added Shawn. In their fifth year of business, the couple opened a campus of Paul Mitchell the School. Today, they are also part owners of a second campus of the school, also in Utah, as well as having six Lunatic Fringe locations. By the end of the year, four franchise locations of Lunatic Fringe should be open, and there are talks to open more. It’s monumental growth in a short period of time. “What makes us happiest is creating opportunities. It’s really fun to take somebody right out of school and take them through a career path,” said Shawn. “This is about creating opportunity for people, helping them reach their Husband-and-wife entrepreneurs Angie Katsanevas and Shawn Trujillo continued next page have grown Lunatic Fringe into a small chain. OU R SU PE RSTA RS Lunatic Fringe continued from previous page goals and dreams.” They operate by a simple “Heart & Soul Statement”: We create growth and opportunity by providing artistic professionals with a viable career within a team culture. Additionally, there are five “Values and Beliefs” that the staff lives by: team, opportunity, business, passion and education. “Here’s the cool thing. What Angie and I did was we collaborated with the entire staff to see what’s important to the entire organization, not just to Angie and me. Over a two-week period, we narrowed it down to five,” said Shawn. to send the message that we’re willing to step up to the plate. We’re willing to bring operating capital to the table and pay the stylist for producing not just behind the chair. We believe in them enough to invest in them and in their future. It’s just a win-win situation,” said Shawn. And it’s been a successful formula. The Professional Beauty Association’s North American Hairstyling Awards (NAHA) recognized the pair with their first Salon Masters of Business Award (MBA), which was designed to recognize salon owners who have cultivated a cutting-edge salon and a highly profitable business. For the second year, Lunatic Fringe has been listed by Elle Magazine as one of the top 100 “The INCUBATOR helped us to create the foundation and framework to build our business.” “We put this out there so that we could attract like-minded people,” added Angie. “We have a business where people believe in our vision, who are passionate and believe in the same things that we do.” The Lunatic Fringe salons utilize the teambased pay system. “It encourages teamwork, which leads to a great guest experience,” said Angie. This might be a staff member offering a guest drinks or magazines, or double blow dries. In fact, the atmosphere is so special that Adrian Gostick, co-author of The Carrot Principle, blogged about his experience at the salon. (See page 7.) “We believe that compensation drives culture, and we want a productive culture. We really want salons in the country. They’ve been featured in Modern Salon, American Salon, Cut and Dry, and InStyle, magazines and countless national and local publications. Lunatic Fringe stylists have won competitions in NAHA (North American Hairstyling Awards) and have received numerous industry acknowledgements. They contribute a lot of their success to looking at their company as a business. “The salon business is like any other successful business. You have to really think about and work things, such as finance, leadership, strategy and innovation. All of these factors make a business run soundly and smoothly. You need to inject traditional business practices with some of the nuances continued next page OU R SU PE RSTA RS Lunatic Fringe continued from previous page of the salon industry and know how to balance the two. Creative people get turned off by numbers and business all the time,” said Shawn. “Everyone knows when they get hired that they’ll have to know the numbers and that they’re going to keep score. We allow each person to process it in their own way.” Angie said that team education and business coaching are vital to their success. “We hold people accountable, and we don’t hold people down. As a salon owner, you need to find people who are better than you and be OK with that. People want to change and grow. You need to look to build leaders. Let people be part of running your company. One big thing I learned from Neil was to have a no-compromise attitude. I think that’s what keeps our culture strong.” Another big part of the Lunatic Fringe life is philanthropy. During the last four years, the company has donated $200,000. Sean and Angie are actively involved with the fund-raising. Many donations go to well-known charities, such as the Larry King Cardiac Foundation, Children’s Miracle Network, Food for Africa, Habitat for Humanity and Lisa Gibbons Memory Foundation. But they also help out on an individual basis. For example, when a staff member’s mother needed help with medical bills, they hosted a day where for $5, team members could wear colored clothing rather than the usual required black. “We never say no. When it’s a guest or family or a friend, we find a way to help them, said Angie. “We always find a way.” Sean & Angie’s Recommendations for 2011 Shawn: “Really use the economy as a springboard to better days. Right now, you have to put the microscope on your business and you have to look for opportunities. … Now is a time to innovate. It’s not like three years ago when money was flying through the air and you had to just reach up and catch it. Put your business under the microscope and see what value your business can add for the guest. It’s all about value added, not discounts, but what sets you apart from the competition, why someone should come to you and keep coming back to you.” Angie: “Create amazing guest experiences. Make them feel good. Take care of people. Pay attention to the detail. People will still spend money if they feel they’re spending it in the right place. Treat people like family. Get your team excited to network and get new people in the door. It’s not all about retaining the existing guest but also how to get new people to try you. Get your team excited about marketing.” OU R SU PE RSTA RS Rituals Salon-Spa ‘A no-compromise family’ that knows how to find the extra 20% A ccording to Pete Polignone, it was an $2.3 million with 30 employees in a 2,500-square “eight-year process” to open Rituals foot facility, a 20% increase from last year. Salon-Spa with his wife, Sheri. Because of the tight quarters and having to “We were looking for a culture different than split shifts to “alleviate congestion,” Rituals Sawhat I personally saw. My background is in lon-Spa will be moving into a new 5,500-square management, putting companies together and foot space, just a few doors away, later this sumallowing them to grow. mer. There will be 25 My wife, who has 35 “Different is good. Different exudes chairs, instead of 10; years as a stylist, was and the business plans strength. You start to work harder frustrated with the way to hire 20 or more new when things are different.” she saw things working staff members. and got tired of not Polignone was in~ Pete Polignone, Owner ~ being appreciated,” he troduced to Strategies said of what spurred after meeting Certified the couple to open their Strategies Coach Daryl Midlothian, Va., busiJenkins. In addition ness. to numerous classes, They turned to StratPolignone continues to egies to help get them be coached by Stratestarted. gies Founder and CEO “We based our Neil Ducoff. company on Strate“It’s been a lifesaver. gies’ lessons, and it’s It was something we probably been the best knew we had to invest thing we’re ever done. in because it was someThe key was teamwork. thing different — and I’d never seen anything different is good. DifRituals Salon-Spa owners Pete and Sheri Polignone like it in the industry. ferent exudes strength. It’s truly teamwork,” said Polignone. “Our team You start to work harder when things are differhas a very good heart. That’s one reason we’re ent,” noted Polignone. so successful. We all work together; it’s not a That approach has been working, and finding smokescreen.” the extra 20% is something that the team focuses The business started with 10 employees six on continually. years ago with sales of $300 thousand. Today, “We’re at 80% productivity. When you find continued next page Polignone said that they would most likely exceed OU R SU PE RSTA RS Rituals Salon-Spa continued from previous page that in a place that’s already maxed out, that means digging deeper. What else can you offer somebody? How can you make life a little easier or what can you present to them [clients]? That’s the only way to grow. That’s how you have 20% growth with a maxed-out facility,” Polignone explained. “With retail, we’ve had a 20-odd percent growth. We keep digging and digging. You dig deeper inside yourself to come up with a better mousetrap. You don’t settle for mediocrity, you go for a higher level. There’s a lot of excitement. You see people happier, everybody’s winning,” he continued. “It does take work. With creativity comes change. Change is good as long as it works within our policies and procedures and systems. That’s our biggest challenge: sticking to our guns.” Group approach to problem solving Rituals Salon-Spa, for example, has procedures for evaluating and introducing new products. “The process is very detailed and intense,” explained Polignone. “Something showed up on the shelves. I’m not there all the time, so my familiarity with the products is not as keen as most of the others that work there. I’ve never seen this product before. Come to find out, someone bypassed that process. Well, the fish stinks from the head down. It started with me and my wife, not knowing what was on the shelf, and went back to the procurement that allowed it to be on the shelf. … The scenario was totally against our process. We had a meeting to discuss the process. We have to go back to the process. “A lot of people would say, ‘Hey, the client might like the product,” he continued. “We had to deal with a tough situation, when everyone in management screwed up, and everyone had to take a whacking for the mess up. We’re back on track again, and with our open communication, hopefully we’re going in the right direction.” Staying the course can sometimes be difficult. “Our biggest challenge is we have very soft hearts. Sometimes we run into individuals who tend to really twist it. We have an apprentice right now who we’ve worked very hard with for the last two years. … We were hoping it would work out, and we probably held on too long,” he admitted. “Our biggest challenge is we sometimes give too much, and sometimes, we hold on too long. It hurt us in the long run. Our staff sees what should have been done. Our heart gets in the way so many times. We’re so willing to turn the other cheek that the skin starts falling off. The challenge is to know when to let it go.” Operations manager Jessica Earhart said the culture is very “family-oriented.” “Sheri & Pete are 100% fair and just very honest people. There’s always opportunity for growth, and you know how to get to the next step. They really help staff get to where they want to go. Everyone loves coming to work. It’s not so much work sometimes; we’re all friends. … Everyone has a voice. We make decisions as a group; we all talk about it. We say, ‘This is our challenge. Does anyone have any ideas?’ We work on it until everyone is happy with it and it works for everyone.” Working to be memorable Another “Business Outcome” that Rituals looks to increase is client retention. “We’re trying to improve our pre-booking methods and making sure the customers are coming back. Pre-booking starts from the mocontinued next page OU R SU PE RSTA RS Rituals Salon-Spa continued from previous page ment the client sits in the chair. … We want to make sure that clients are educated on all the things we have to offer,” said Earhart. “We want to be sure that coming here feels like a vacation, like a break from reality, so we concentrate on how the service plays out. We’re working on how we can make ourselves memorable, each and every time.” They’ve also been tweaking their popular points program. Customers can earn points for pre-booking, retail sales, service amounts and referrals. Earhart believes that setting concrete goals is one of the keys to consistently achieving more. “It’s about setting higher goals, looking even further. It’s not just about monthly goals, but goals for the year, and being able to track that. We have a great chart that shows where we need to focus. It’s very detailed,” said Earhart, who’s been with Rituals for six years. “It’s about never quite being satisfied. We’re always trying to be innovative,” she continued. “We’re always rearranging things, keeping things different, to keep people interested. We do a lot of education. … We’re always looking for the next best thing. We need to be able to communicate with staff about our numbers, and we have to make sure everybody stays on the same page.” Those efforts have been paying off, and Polignone couldn’t be more pleased. “Sheri and I pinch ourselves as to how well things are going,” he said. “ We know our goals; we know our family. … We’re a no-compromise family. We do things for a reason; we learn from our challenges. … The thing I love best in the business is to give the young ones a chance and to allow them to shine.” “It’s about never quite being satisfied. We’re always trying to be innovative.” ~ Jessica Earhart, Operations Manager ~ OU R SU PE RSTA RS Mango Salon ‘A culture that truly focuses on teamwork After Bobbi and Pat Heaney attended the Strategies Incubator, they almost decided not to open Bobbi & Pat Heaney Mango Salon, their Richmond, Va., business. “Bobbi went to Incubator and Neil Ducoff scared the hell out of her,” said Pat with a laugh. “She came back and said, ‘We’re not going to do it,’ but then reality set in a year after that. We went through several training programs before we opened the salon. We did a lot of homework for several years before we opened Mango.” The couple had a unique combination of experience. Bobbi was a long-time member of the beauty profession, with well more than three decades of experience. Pat had spent almost 25 years in the grocery industry in a variety of managerial roles, and also had six years of retail strategy and consulting work. While Pat worked in the grocery business, the couple moved around the country. When he found himself unemployed with limited consulting opportunities after the dot-com crash, the pair decided on a change. “We wanted to stay in Richmond; we love Richmond,” said Pat. “We wanted to leverage both of our experience and knowledge to start and own a business. We looked at a couple of industries. Bobbi has lots of experience in the salon industry. I did an industry analysis. There were improving management practices, improv- ing processes, and it’s a fun industry. Some of the industries I’ve worked in are boring. This is an exciting industry.” Once they decided that opening a salon in Richmond was right for them and doing the background work, it was time to choose a name. “The name ‘Mango’ sounded fresh. It sounded like a new beginning. It wasn’t the same old, same old. We were in our early 50s when we started. It was not about me and my name. We decided it was fun and offbeat and fresh,” Bobbi said. “After being a corporate wife and moving all over the United States with my husband when he transferred and changed jobs, I would start over again, working for a bunch of different hair salons. We wanted to create something really different, where people would stay for a long time, where we wouldn’t have turnover, where the culture was different, a place that says, ‘We have a great team here.’ We wanted to create a culture that truly focuses on teamwork.” “We wanted to create an organization that was something greater than both Bobbi and I,” agreed Pat. “Most salons are named after the owner or they have a French name. What we wanted was not just a name but a culture greater than us, a culture where the sum of all of the components continued next page OU R SU PE RSTA RS Mango Salon continued from previous page would be greater than the individual parts.” Pat and Bobbi split responsibilities. Pat explained that Bobbi’s role is inside the salon, while he handles a lot of outside the salon issues, and they partner on people management concerns. As owner/chief support officer, he said his role is “to serve the team and serve Bobbi.” Responsibilities include finance, accounting, technology, IT and inventory control. Bobbi serves as owner/ chief service officer, although she is no longer behind-the-chair, as of just over a year ago. ‘Like swallowing a small apple without chewing it’ While the grand opening of any business is stressful, Mango’s opening on September 18, 2003, was one for the record books. “On the day we opened, Hurricane Isabel ripped through Richmond and the surrounding area. We opened at 9 o’clock and promptly closed at 3. There were power lines and a tree coming down. There we were, a brand-new business, with employees paid a different way – there were 10 of us then – they were really nervous. We had to close, we had no power. We decided to make our parking lot available for a fund raiser for the Red Cross. Our people did haircuts in the parking lot with no power for the Red Cross Hurricane Relief Fund,” remembered Bobbi. “It was like swallowing a small apple without chewing it,” said Pat. “We had a comprehensive business plan, over 100 pages. We forgot one thing: What do we do when a hurricane runs through town? People lose business within a few days. Not every place in Richmond shut down. We had a new way of paying our employees. They had families. They had to make car payments, house payments. We took money from personal accounts. We made almost no revenue. It was important to us to keep people together.” Mango was closed for seven business days. In addition to the free haircuts, they used the time for training. “We kept them going and kept them working as much as we could, given the circumstances we had,” said Pat. Clearly, the concept of team-based pay has worked. The salon has grown from the original 10 people to 60 people, with sales of $3.5 million. This September, Mango will open its second location, about eight miles west, which will bring an additional 25-30 people to the company. The current space is 4,000 square feet; the new salon will be about half that. Bobbi believes that Mango’s culture and training are the keys to their success. “Two words: high expectations,” said Pat, who said they discovered Strategies after coming across Neil Ducoff ’s Fast Forward book. “When you expect a lot out of yourself and the people in the organization, and everyone believes those high expectations, that creates opportunity,” he said. For technical training they turn to Aveda. And while they have tried other programs, such as the UCLA Salon Management Program, Pat said that “we keep coming back to Neil … [Neil] has a lot of vision. When you take Bobbi’s beliefs and experience, my beliefs and experience, the frosting on the cake is taking Neil’s ideas and wrapping it around what we believe in and making it work.” Pat, Bobbi or members of their staff have attended a wide variety of Strategies’ classes, including Incubator, Salon Manager Success (now Managing for Results), High-Performance FrontDesk Training, SBS 4.0 and Mastery, as well as having Strategies come in to do onsite training. The salon has been in the “Salon Today Top 200,” since they were first eligible. “We are a group of professionals coming continued next page OU R SU PE RSTA RS Mango Salon continued from previous page together to offer a really good guest experience. We’re working at a great level, and we have to work that model every day,” said Pat. “We are striving to be the Ritz-Carlton in the hair industry. We are always trying to do the right thing by the client. We want to make them feel very special when they walk through the door. That’s our expectation of our whole team,” agreed Bobbi. She said that their biggest challenge was “people management. They all have lives outside work, and sometimes that interferes with work.” Additionally, with the new salon, they are building up their management team. Bobbi and Pat exude energy when they talk about Mango. “I am most proud of the fact that we’ve been able to build a successful business that has been profitable, that we’ve been able to develop our people and our culture,” said Bobbi. “If you really want to do something, no matter what age you are, if you have a deep desire to be in business for yourself, you can do it. … This is tougher than I ever thought it could be, but it’s also more rewarding than I thought it could be.” Even though Pat has never served in the military, he turns to a military analogy to sum up his experience with Mango. “If you’re a lieutenant in a Marine platoon and your captain says you have to take a hill under fire, you can’t just stop halfway up the hill – you better make it up the hill. When you promise people you’re going to give them a paycheck, you’d better give them a paycheck. It’s the greatest feeling in the world to be able to do that and take the hill,” he said. “It’s rewarding to see people do great things. We had a salon domestic [Amanda Keravich], someone who does laundry and picks up trash. We hired her when she was 19 years old. She’s been with us for five years. Three years ago she started the apprenticeship program. To see her complete the program and now be a successful hair designer, to be able buy her first house, you can’t describe Mango better than that. … We have 59 other Amandas. I feel the same way about all of our 60 people.” Bobbi & Pat Heaney’s Tips for Success • G o see Strategies first before you even open a salon! • D evelop your systems. Once you develop them, work them. • Watch your cash flow. • Trust your people, trust yourself. • C orrect your mistakes, and move on. • G et over wanting everyone to like you. • H ave a deep commitment to taking care of your team. • L earn to be comfortable in the role of leader/manager. strategies.com