Beauty And Balance Sheets

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How much cash should any business keep in reserves?

Every business has peaks and valleys. In the salon industry, ours are predictable. March through May and October through December are our peaks; February and July are our valleys. Whatever your business, learn your cycle and let your peak months fund the slow ones. Here's a simple formula: divide your annual break-even point by your peak months to find what you should be saving. That way your valleys are already covered, and anything extra earned is your cushion.

How do I budget for a buildout or second location?

Start with your full buildout cost, then add what you'll need to operate until the business is off the ground. That is your true project cost. From there, plan to bring 20% to the table. That is your target. If funding that piece feels like a stretch, you're not ready yet.

How do I negotiate a commercial lease?

In Texas, focus on five things: rent as low as possible, Triple Nets (NNN) even lower, strong demographics, a non-compete territory, and parking that doesn’t require a prayer.

How do I increase my business valuation?

A business valuation matters whether you want to sell or grow. Most owners chase net profit, and yes, that matters. But don't sleep on your balance sheet. Strong assets and smart leverage can double or even triple your valuation.

How do I build a team that actively performs?

First, be a performer, and I don’t mean thespian. Hit your own KPIs, document exactly how you did it, and turn that into training. Then let your team refine or automate it, and pay them for it. People show up when they have a playbook and a reason.

How do I attract higher-end clients?

You have to be the client you want to attract. I first started as a member at Blo Blow Dry Bar, which gave me firsthand experience as a client and helped shape the way I cater to them today. Experience luxury yourself so you can deliver it authentically. When your standards elevate, your clientele follows.