In this enlightening episode of Curly Girls Obsessions, host Jennifer takes us on a heartfelt journey through the complex world of salon ownership, emphasizing the vital importance of understanding financial management in this ever-evolving industry. With an impressive 35 years of experience under her belt, Jennifer shares her realizations and lessons learned—especially in the wake of the COVID-19 pandemic—that have shaped her approach to running a successful salon.

Jennifer addresses a pressing issue for many hairstylists who often find themselves juggling their creative passions with the realities of small business ownership. She candidly explores how a lack of financial insight can hinder growth and sustainability, urging salon owners to dig deeper into their financial health. From adopting the Vish scale to meticulously track color mixing and reduce waste, to recognizing the hidden costs of credit card fees, Jennifer reveals strategies that have led to significant savings and improved profitability.

Throughout the episode, listeners will gain valuable insights into transforming their business models and adapting to rising costs. Jennifer outlines her phased approach to implementing price increases, ensuring that her services remain competitive while still fairly compensating her dedicated team. This episode is a treasure trove of practical advice for any salon owner looking to bolster their financial acumen and navigate the current landscape with confidence.

Join us as Jennifer champions a culture of continuous learning and adaptability, reminding us all that embracing financial transparency and strategic decision-making is essential for long-term success in the salon industry. Don’t miss this opportunity to transform your approach to salon management and unlock the keys to a thriving business!

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00:00 - 00:04

Introduction by Jennifer, identifying herself and the podcast theme.

00:04 - 00:26:30

Recording Context: Jennifer explains the recording setting and her reasoning for the location change.

Business Lessons: Stresses the importance of understanding financials through profit and loss statements and having a reliable accountant.

COVID Impact: Discusses the financial challenges faced during COVID and the realization of needing to change her business model.

Salon Profitability: Highlights factors leading to low profitability in salons, such as emotional decision-making and lack of business training.

Tracking Expenses: Introduced a method to measure color usage to reduce waste and increase profits.

00:26:30 - 00:31:51

Client Management: Discusses the need for a balanced client booking system to allow for new clients and services while maintaining revenue.

Deposit Implementation: Introduced deposits to manage bookings and improve cash flow, making room for new clients.

00:31:51 - 00:39:14

Credit Card Fees: Jennifer realizes hidden costs associated with credit card tips and how they affect profits.

Fee Structure Discussion: Explains her decision to implement a 3% fee for credit card transactions to offset costs.

Stylist Communication: Addresses how she communicated changes to her team and clients regarding pricing adjustments and fees.

00:39:14 - 00:45:48

Business Model Changes: Describes moving towards a parts and labor model to better understand costs.

Client Reaction: Discusses feedback regarding the new fee structure and the rationale behind it.

Importance of Visuals in Business: Mentions using visually appealing spreadsheets to track financials as a game-changer in understanding salon economics.

00:45:48 - 00:46:15

Closing Remarks: Jennifer thanks the listeners and invites feedback.

00:46:15 - 00:48:55

Outro: Concludes the episode, encouraging audience interaction and providing a preview of the next episode.