COVID 19 and Our business
I usually put a good spin on subjects to help ease the seriousness; this time, I am going to need you to BOSS UP and make lists.
First – Whom do you owe money? How far are you behind?
****Stylist- Booth Workers -Paid Employees****
Those lines that separated you—exist no more.
NO ONE IN OUR INDUSTRY IS WORKING (excluding govt official and people behind the camera—BS FLAG)
Commission shops cannot pay you because – they are not getting paid.
Booth Workers –
1.) I call booth rent salons Hot Potato businesses. It’s times like these that booth renters forget they are renting a spot from you, and all the talk of, ‘I’m my own boss’ gets lost. The crisis causes the staff to call the owners the Boss – hence Hot Potato – Not my shop – not my problem.
* To the renters of booth shops -You Should be doing something to offset the cost of your boss- because you rent the spot you work in.
If not, you just asked someone to pay your bills.
2.) You got lucky—Your Boss loves you enough to let you not pay a dime.
I think it’s a remarkable gesture, not to make your staff pay. I too have done this, I felt it was a deserving gift; but it has shown me –while I can do this once this is not a part of my business model I want to stick with. A reality check needs to happen, most likely, this is not a one-time occurrence, and so a final plan must be made for ACT 2.
1st lesson- Everyone needs to save for an emergency!
Owners, as well as staff, should have been able to handle a six-month emergency, and unfortunately, most shops weren’t prepared. We could flip the switch on employees and say – they too should have saved money for a rainy day. After this go around with this COVID, we should all be on our game – next time, there will be no excuses for either party. Nothing in life is a guarantee, and the idea of COVID just fading away for good is not happening …yet. You now have a good idea of what it will be like if we have another go around, but before we come to that horrible road again, its’ time to look at what we do have control over—our approach to our business model.
Changes you might want to consider.
Maybe you need to trim your staff.
Consider eliminating some of the perks you offer.
2nd thing you should have learned is to get prepared.
Please bring in a Financial Adviser immediately to talk with your staff.
Bosses get together with the staff and make out sheets of the pertinent information they will all need if an emergency like this ever happens again. Offer links – address- Government links. You get me, or even draw up a ‘What to do when you don’t know what to do .’ List for everyone In your shop. Listing Helpful advice is always a welcoming gift.
3rd Take a look at the staff
-Who did not help or appreciate it?
-Who was the proverbial rock in your stream— get rid of that nonsense immediately.
4th COVID 19 is the very example of why we hairdressers need to stay in contact. The salons who were unapproachable – you just found out how communication is critical in our industry.
5th Raising booth rent on your staff. I am sure this is not the best idea you’ve made. Remember, you’re in survival mode.
Are you commission shops giving more money to your staff? I rest my case.
I know we will need to offset costs soon enough, but PREPARE YOUR STAFF. Stop Surprising your staff with booth rent hikes in a time like this. It may cost you your team.
MAKE DECISIONS IN CALM WATER BOSSES!
Bottom line – Commission shops – you should have money aside to ensure their job safety.
Booth Renters—You have a great Boss if they didn’t charge.
If they do charge $, it should be something, maybe not full – but SOMETHING.
CHEAPER TO KEEP HER
NEW YORK AND JERSEY salons are decimated by the amount of time they have had to close their doors. I don’t want to hear you moan about one-month costs. If you can’t hold your shop up for at least two months without pay –you just screwed yourself – no one else did that to you but YOU.
I know I said I’m here to help, but I’m also here to give you the reality you need.
The things you owe on—pay at least the minimum amount —keep it in circulation the payments – Gov’t has information for you online.
*SEEK PROFESSIONAL COUNSEL IMMEDIATELY*
I cannot believe how you guys are googling your shop life away.
Keep records of communication you’ve had to anyone you owe, show you are aware of your situation, and doing what you can. OFFER Dates you plan to have it all paid in full.
It will cost more time and money for landlords to replace you and develop a new shop than to maintain what you have– Cheaper to keep her. —
Keep a mental list of the staff and clients who wanted to HELP.
Did your staff go the extra mile to LEARN New things—or are they just waiting to continue bad habits?
Everyone should be doing something to improve on themselves
1.) OFFER An online meeting to talk with your staff about financial planning.
2.) Be better prepared to let your staff know what to expect if this ever happens again- consider one month free for the team, then concessions may need to be made for more extended periods. It is everyone’s responsibility to save and prepare – so where owners may be able to cover one-month extended periods must be shared cost.
3.) CONSIDER your staff if you are in a slow-moving shop
*The smaller shops have more of an advantage because of lower costs to make fast changes to help keep the shop going.
* You middle of the road shops may be in a different position. Any of you who have overextended yourselves will need to look at ways to get yourself through to keep your doors open. For the bosses who thought- sums of money would always be pouring in, and the ‘I want it now, attitude’ may just have cost you your savings and your dream. If you close- learn from it – rise above and know you’ve learned what does not work and devise a better plan for the next salon.
*The rules of the game change with the larger models. The larger salons will have a WHOLE slew of different issues. Smaller shops where you would think would be the ones who make it through – it’s the larger ones who will have better retention in the industry. Bank loans are much more accessible, and the shops run with more efficiency.
Boss expectations
Keep calm damn it!
Dear Lord, I hope you kept up with classes; if not, you ARE SO BEHIND! You better catch up – investigate sites that help you become a better, well- rounded boss. If you have questions, ASK – they are there to help- or at least tell you what a horrible mistake you could avoid! SALON OWNER Mastermind on Facebook is a site for owners ONLY —The old classes are on YouTube Watch and learn! PROFESSIONALS on that site are sharing their time FOR YOU to learn. I will be on there on MAY 30th to discuss becoming the better Boss.
Get it together – be hopeful – GET professional advice – don’t be afraid to recognize the spot you’re in and tell the staff to step up. You are salon owners, and it’s your name on the door. Make the best decisions you can and keep a stiff upper lip, and keep the wine within reach —we’ll get through this.