Latest / Salon Success Secrets — The podcast for salon owners who are done hustling harder and ready to break their revenue ceiling. / The 3 Stages of Wealth Generation in Salons
Transcript
- 0:34Speaker 1: Have you ever wondered why some people make it really big inside of this industry and others don't seem to make it past?
- 0:43Speaker 1: They can never even hit the ball inside of the park and really feel like they're getting anywhere.
- 0:50Speaker 1: If this has ever been you, you're not going to want to miss today's episode, where we dive deep into the three stages of wealth generation.
- 1:00Speaker 2: All right, guys, this is going to be a writer downer.
- 1:02Speaker 2: You know what I mean by that.
- 1:03Speaker 2: You're going to have some pen and paper ready, because this is going to be the master key to getting a pay raise.
- 1:09Speaker 2: So this applies to being a salon owner.
- 1:11Speaker 2: It's a great coaching tool for your team.
- 1:13Speaker 2: So you're definitely going to want to write these three wealth pillars down so that you can understand where you're at and what it's going to take you to get to the next level.
- 1:25Speaker 1: Yeah, and I think the key here that a lot of people thinking, hey, I've been super guilty of this before myself, is that a lot of people think they have to work the absolute hardest to really get to that next level.
- 1:40Speaker 1: So if that's ever been you, say amen, type amen in the chat.
- 1:45Speaker 1: Let us know that that's been you, send us an email, because I know that that's been me before.
- 1:51Speaker 1: And really the way that you get to that next level is by leveling up who you are as a person and then you'll be able to start to deliver and offer that value at a much higher level.
- 2:08Speaker 2: Yeah, cause what we know is that for every action there is always an equal reaction.
- 2:13Speaker 2: So when you're feeling stuck in life, or stuck in the salon business, or stuck with a service provider, you know you may spend a lot of time coaching them, or you're looking internally at yourself figuring out hey, what can I do to get to the next level?
- 2:26Speaker 2: And so to know that for every action you do there's a reaction.
- 2:29Speaker 2: So to make sure that the actions that you're putting into place are really creating that space for you to level up the game that you're playing are really creating that space for you to level up the game that you're playing.
- 2:44Speaker 1: Yeah, you might be thinking, so tell me.
- 2:45Speaker 1: I'm dying to know what are the three stages that we are going to be diving into today.
- 2:48Speaker 1: And the first one that we want to talk about is the is level one, stage one which is called implementation.
- 2:52Speaker 1: So implementation is really just where you're learning and mastering specific skills within the salon industry.
- 3:02Speaker 1: So this is generally where you will make the least amount of money.
- 3:08Speaker 1: This is typically where a lot of people don't make it out of this stage, because there's just so much learning, you know, especially if you have been a service provider inside of this stage, because there's just so much learning, you know, especially if you have been a service provider inside of this industry.
- 3:20Speaker 1: When you first step foot into cosmetology school, you're like wait, we got to learn all the nail diseases and disorders.
- 3:26Speaker 1: Like I just came here to do some hair.
- 3:28Speaker 1: And if you're a salon owner, you know this is why a lot of salon businesses don't make it past their first year, and that's because you're like, wait, I got to figure out how to do QuickBooks and run this business.
- 3:43Speaker 1: Like I thought I was just going to get a capture, more money, and then you learn hey, that's not the name of this game In this stage, it truly is learning and mastering those skills so that you, you know, have the opportunity at some point in the future to get to that next level.
- 4:03Speaker 2: Yeah, I love that you said that and you mentioned money and there are several times and that really stands out to me because, if you think about it, um, one of our coaches, really, you know, keyed this in for us.
- 4:13Speaker 2: I was like you know, money, the money.
- 4:16Speaker 2: Most people think that money is materialistic and so when you think about that, yeah, it's like, okay, money's materialistic, like it can only be at one place, one time.
- 4:24Speaker 2: This is what I have.
- 4:25Speaker 2: But really, if you understand what a spiritual thing is, a spiritual thing is something that can be at two places at one time.
- 4:33Speaker 2: And so money, really the essence of money, is spiritual.
- 4:38Speaker 2: And I think, when I wrapped my head around that and it's like, oh my gosh, it's so is when you understand and look at your beliefs about money and how they occur for you, it can really create a transformation in your life.
- 4:50Speaker 2: And to know that, hey, because money is spiritual, it can be, you know, in my back pocket, but it can also be in the bank, it can be on my debit card or my Apple Pay card, whatever it may be.
- 5:00Speaker 2: So to really view money from that standpoint can really come from a freeing space and to help you realize all the bad stuff that we heard about money.
- 5:08Speaker 2: Money's the root of all evil or all the things that your beliefs, that you've heard or been taught before.
- 5:14Speaker 2: That really, if you look at essence, the essence of money is just really a spiritual being.
- 5:18Speaker 2: It really can create that freedom for you and it really helps you to start mastering skills so that you can make more money in the industry.
- 5:25Speaker 1: Yeah, and it's okay to make money, it's okay to charge for your services, and you know, money is just a tool to get us more of what we want and desire in this world.
- 5:39Speaker 1: It's just a way to stay in exchange with people.
- 5:41Speaker 1: And so it's really, at this stage, what you're doing is you're working on increasing your value, that you're delivering to others, so that you have that strong foundation of technical skills, skills you know, whether it's technical skills as an owner or technical skills as a service provider.
- 5:59Speaker 1: You know this.
- 5:59Speaker 1: This is just a really key area to hone in on those skills.
- 6:04Speaker 1: And you know, remember, money is a spiritual thing.
- 6:07Speaker 1: It can be in more than one place at a time, and you know so.
- 6:12Speaker 1: So, thinking bigger on your view of money and also focusing in on those technical skills and just knowing like, hey, I'm not supposed to know everything right now, it's okay to make mistakes, it's okay to fail.
- 6:26Speaker 1: You know the quicker you fail, the quicker you can succeed.
- 6:30Speaker 1: And so you know, most success stories talk about how much failure they had until they finally succeeded.
- 6:38Speaker 1: It's like they look like an overnight success, but the the overnights were like 17 years, so just keep that in mind.
- 6:47Speaker 2: Yeah, and if you're a salon owner, at this stage too, you're like you're learning QuickBooks, you're learning all the new things, you're learning how to implement things.
- 6:54Speaker 2: Maybe it's your core values, maybe it's career map, and I think what Lindsay was saying is you often feel stuck here, like, oh my gosh, this is way too much, what did I sign up for?
- 7:05Speaker 2: Or the same goes when you're working with a service provider.
- 7:08Speaker 2: You're coaching them.
- 7:09Speaker 2: They're just starting out.
- 7:10Speaker 2: They've lacked that confidence.
- 7:11Speaker 2: I don't know if I should even do this.
- 7:14Speaker 2: And what we know is that if you continue to work on those skills and continue to work on that mindset, it will definitely help you elevate to the next level, because people can get stuck in this phase of implementation and never make it to the next phase, and that's where they like feel like they're working so hard with so little money in return, because we know that like, probably at this stage, as a salon owner or as a service provider is both.
- 7:40Speaker 2: You're probably making like minimum wage to about $20,000, $25,000 a year.
- 7:47Speaker 1: Yeah, and you know I think that could make you feel stuck.
- 7:51Speaker 1: And you know, probably as a salon owner, in this stage you know there's no profit and, um, you know you're you might even just be barely paying yourself, you might not even be paying yourself what you're paying other service providers or people on your team, and so you know, I think that that's why it can just feel so uncomfortable and feel so stuck for so many people.
- 8:11Speaker 1: And you know, a lot of times it's like counterintuitive in our brain, um, brain, because at this stage like this is where you need the most, you know, coaching and guidance to kind of get to that next level, but it feels like I don't have the money or the time to invest in that stuff, you know.
- 8:27Speaker 1: But you know, really focusing in on, like, if it's a service provider, for example, a lot of those essential skills are what's so important.
- 8:36Speaker 1: So you know, being a part of a team that you know is that offers a master's program inside of the company where they can really work on those advanced cutting techniques, coloring, styling you know the proper verbiage to use with people.
- 8:53Speaker 1: Because you know what we know is communication is going to be key.
- 8:57Speaker 1: We'll talk about that a little bit later on.
- 8:59Speaker 1: But you know, really talking about that at that stage and honing in on those things is going to be why so many people who you know work inside of a team-based commission salon make it so much longer inside of the industry.
- 9:14Speaker 1: I mean, we get to defy odds inside of our industry all the time, which is amazing, and I know one of those reasons is, you know, because people have the support of like, how do you run a true, successful master's program where people can get out of the stage faster, work on those skills?
- 9:30Speaker 1: And then you know, also, looking at yourself as a salon owner, you know how can I learn things quicker, how can I surround myself with people that I aspire to be, like um, so that I know what the tools are that I need to get out of this level, because it's not a fun level to be in.
- 9:48Speaker 1: I mean it's fun.
- 9:49Speaker 1: There's a lot of fun, exciting parts of it, you know.
- 9:51Speaker 1: But it's just like anything that you're learning new.
- 9:54Speaker 1: Uh, you know, if you're learning to ride a bike even, let's just say, for example, you might fall down and get some scrapes at first, like you're still like wow, when you get a couple of those joy rides.
- 10:03Speaker 1: You're like this is so fun, you know.
- 10:05Speaker 1: But then you wipe out.
- 10:07Speaker 1: You're like, oh, just kidding.
- 10:08Speaker 1: What did I sign up for?
- 10:09Speaker 1: So we want to get you out of that.
- 10:11Speaker 1: Just kidding.
- 10:20Speaker 2: What did I sign up for stage a lot faster, yeah, and like, if you're there, that's okay.
- 10:22Speaker 2: You know, the greatest gift of that, too, is just knowing and understanding hey, what is it going to take for me to elevate?
- 10:24Speaker 2: You know, what do I got to eliminate to elevate, and you know.
- 10:27Speaker 2: So don't blame yourself or put judgment on yourself.
- 10:30Speaker 2: Oh my gosh, I'm never getting out.
- 10:31Speaker 2: It's just to realize, hey, this is where I'm at.
- 10:33Speaker 2: What's it going to take for me to get to that next stage of wealth?
- 10:37Speaker 2: And so when we look at that next stage of wealth, it's going to be called unification.
- 10:41Speaker 2: And so when we think about unification, that to me that's like bringing together a team to achieve a common goal.
- 10:50Speaker 2: And so, like we know, there's so many different quotes and sayings about team, but alone we can do so little, together we can do so much.
- 10:57Speaker 2: And that's quoted by Helen Keller I think a lot of people have said that before, and that is so true to truly realize that when you get to that stage stage two like you've got to have just like a great NBA team or NFL team, you've got to have a great team surrounding you to help you continue to elevate to the next level.
- 11:45Speaker 1: Yeah, and you know I love that you talk about that team, jen, because a team can mean so many things to so many different people.
- 11:48Speaker 1: You know, when you have, all it takes is two people really to form a team.
- 11:49Speaker 1: So you want to play that team sport with your guest.
- 11:50Speaker 1: So when you're coaching service providers on your team, like, hey, how can you become a team?
- 11:52Speaker 1: Because you know, if somebody brings in a picture and they're like, you know, I want this, and it's totally an unrealistic expectation, like you're not on different teams, you're on the same team, you want that person to win.
- 11:57Speaker 1: So it's not a matter of saying, oh, you're not going to get that today.
- 11:58Speaker 1: No, sister, you know that's not today.
- 11:59Speaker 1: You, you really want to work together as a team.
- 12:00Speaker 1: Like, hey, that's great, I see that.
- 12:01Speaker 1: You know you want this, this beautiful blonde hair, and you've got box black.
- 12:03Speaker 1: So let's talk about the journey, cause, like I'm on your team, I want you to be able to get there, but we've got to have realistic expectations.
- 12:08Speaker 1: This could take a long time, you know, and and so really like helping them understand.
- 12:13Speaker 1: Like, hey, you're on a team with your guests, and then the bigger your team is, the bigger your network worth is usually so when you're a stylist and you're playing together on a team, you have access to all of the other brains around you and so, remembering, you know like, hey, we're here for this same common goal on this team.
- 12:31Speaker 1: You know, and that's why you know, people who work on teams make more money than people who work alone, and it's it.
- 12:38Speaker 1: It truly does just come down to like that, um, that consciousness that you guys get to create together, um, of having that cohesive team and that way, if, like, you're running behind or something, it's no big deal You've got several people that have your back and and kind of smoothing out your day to make it a much better day than it had started out to be.
- 13:00Speaker 2: Yeah, I love that you said that and I'm just going to say this like you know, you've probably known somebody or you've had an employee that's been part of your team and left to suite or booth rental situation and, honestly, most of the time the most money they will ever make is what they made in your company.
- 13:15Speaker 2: So it's just, that's really just freeing and it doesn't make any judgment about them or make them bad, but it just really helps you to understand that Like think of a football team If it was just the quarterback, they would never make it to the Superbowl.
- 13:28Speaker 2: Like they've got to have those players around them, they got to have offense, they got to have defense to truly be able to get that winning ring or whatever it may be for them.
- 13:36Speaker 2: So it's the same thing in our salon.
- 13:38Speaker 2: Teams Like you will get so much further when you have that unification and that connection of having a team together.
- 13:46Speaker 1: Yeah, and you know, I think, as a salon owner, when you get to this stage, it's like you have to have a lot of people on your team as well.
- 13:53Speaker 1: You know, and I and I don't necessarily mean people traditionally think of you know, the, the teammates, the employees, but it takes a big team, um to to really get grow beyond this stage, to this unification.
- 14:06Speaker 1: And so to unify, like you have to start to develop a relationship with, you know, a banker, an accountant, a coach, um, you know all the different things, a lawn care person, like there's just a lot of people, when you think about it, on your team, and so you want to make sure that you're aligning with the right people that can really help you get what it is that you desire out of life, you know, and so so, at this stage, like making sure that you're really dialing in on, like, who's on the team, what's our common goal that we have?
- 14:40Speaker 1: Just making sure, cause, you know, once upon a time I outgrew an accountant and, you know, didn't realize it, and she's a wonderful person, um, you know, I wish her well, but it was, she was accustomed to working with really small businesses and it ended up costing me a lot of money to learn that lesson.
- 14:59Speaker 1: And so, you know, had I been surrounded with people at the time who were, you know, helping me view my team a little bit more, I maybe could have seen that opportunity sooner.
- 15:08Speaker 1: Sometimes we just get to learn hard lessons that cost us a lot of money.
- 15:14Speaker 1: Then you're like, wow, I'll never learn that hard lesson again.
- 15:17Speaker 1: At least I hope not.
- 15:18Speaker 1: So really looking at your unification at this stage is going to be the key.
- 15:26Speaker 2: Yeah, and I think, if you look at it through a coaching lens for your service providers too, like this is a really huge opportunity for people to start stepping into that educating role.
- 15:35Speaker 2: You know they understand the importance of team.
- 15:38Speaker 2: They understand to grow their selves, they're going to need that extra set of hands to elevate their guest experience.
- 15:45Speaker 2: They're going to need that extra set of hands.
- 15:47Speaker 2: And so when you think about that too, that's always a great opportunity to look at, because at this stage, I would say you're probably making anywhere between $30,000 to maybe $65,000 per year, and so you're starting to feel a little unstuck, but you still you know there's something missing.
- 16:05Speaker 2: There's still a step missing.
- 16:08Speaker 1: You know, and and I, that is that feeling that there's just a step missing.
- 16:13Speaker 1: And I think salon owners feel that too, because you're like, okay, I'm kind of breaking even at the stage is generally about what you're making.
- 16:21Speaker 1: You're like, well, I'm paying myself, finally, as a service provider, so that feels good, I get a steady paycheck.
- 16:26Speaker 1: I'm not robbing Peter to pay Paul or anything like that.
- 16:31Speaker 1: And so, you know, you, you really just start to feel like, okay, there's a little bit of freedom here, but I thought I was gonna, you know, make a little bit of money for all of this work that I'm doing.
- 16:43Speaker 1: And you're not really seeing it yet.
- 16:47Speaker 1: Um, you know, but you're starting to feel more supported by those around you.
- 16:50Speaker 1: You're building that team.
- 16:52Speaker 1: Maybe you are seeing a little bit of profit, you know, um, but this is, this is kind of where you're at with that unification, you know, and I think it's it's a fun stage to get to, cause you don't feel as unstable as you did at that, that stage before.
- 17:07Speaker 1: You're kind of feeling like, okay, I think I kind of know what's going on around here, like there's still a few hiccups here and there and but it's feeling pretty smooth for the most part, and but really there's another level above that.
- 17:20Speaker 1: That just Um, but really there's uh, another level above that.
- 17:24Speaker 1: That, just you know, starts to really um, create a lot for every person on the team.
- 17:27Speaker 1: And when we say every person on the team, that that goes beyond, uh, the owner, the, the service providers, you know, you, you get to start to add in more amazing people to your team that everyone gets a win-win situation out of.
- 17:43Speaker 2: Yeah, I love that.
- 17:44Speaker 2: So you're probably wondering well, what is stage three?
- 17:46Speaker 2: So stage three of building wealth is communication.
- 17:51Speaker 2: So you know, you've heard it probably a thousand way, a thousand different ways, said that communication is key.
- 17:56Speaker 2: Communication is this.
- 17:57Speaker 2: But I truly believe that effective communication will help you build wealth and client loyalty, team loyalty, because the better the communicator you are, the better you understand language and the way that you deliver language can really create a winning space.
- 18:11Speaker 2: It's just like if you have a client, like Lindsay was mentioning earlier, a new client come in and the stylist says what do you want to do today?
- 18:18Speaker 2: This is a normal conversation.
- 18:19Speaker 2: And, um, you know, the stylist said or the client says, oh, I want to be blonde and she's got black box dye, and, without asking any more questions, the service provider says that's not possible, not happening today, not at all.
- 18:33Speaker 2: And so, um, I actually heard that not so long ago at a salon I was at and I was like, oh, wow, it just it.
- 18:47Speaker 2: It really derails the trust factor.
- 18:48Speaker 2: Like, okay, but maybe we just have to learn to ask more questions, to be a better communicator, and I think the greatest gift we can give people is to offer them solutions to their greatest problems.
- 18:53Speaker 2: And when you're able to do that and communicate that guess what PS?
- 18:57Speaker 2: You don't have to do so much posting on social media.
- 19:00Speaker 2: I come back in the day, and Lindsay too, like we didn't have social media back then, but because we were strong, effective communicators, we knew how to sell, we knew how to grow a business behind the chair, behind the table, whatever it may be.
- 19:16Speaker 2: And that just really goes to show you that communication is so key in creating effectiveness.
- 19:23Speaker 1: Oh, my goodness, so key.
- 19:24Speaker 1: You know, and and that does just feel uh cringy when you hear somebody just totally shut somebody's hopes and dreams down right away.
- 19:33Speaker 1: You know, and hey, sometimes stuff isn't possible we don't live in la la land but like, how do you communicate that to where it feels like a win for everyone, where you're unifying a vision?
- 19:43Speaker 1: You know, because truly that's where you start to to really become a large earner inside of the industry.
- 19:49Speaker 1: So you're not going to hear people like, nope, get out of here.
- 19:52Speaker 1: Well, you might cause like some people are into being abused, if you will, but most people aren't.
- 19:57Speaker 1: Most people love to feel that connection with another human being.
- 20:01Speaker 1: They love to feel respected.
- 20:03Speaker 1: You know, and thankfully, the salons that we have the wonderful opportunity to work with are, you know, just kind, compassionate, loving human beings that truly want to make people feel beautiful inside and out.
- 20:17Speaker 1: And so you know, at this stage, a lot of times your earnings as a service provider are at that, you know, a hundred thousand mark and beyond.
- 20:27Speaker 1: And that's because you, you understand the skills, you understand how to unify and you also now know how to communicate.
- 20:36Speaker 1: And so generally you're, you know, you're training um other people on the team.
- 20:43Speaker 1: At this stage, as a, as a salon owner, um, you are experiencing profitability the most incredible part, like I think you know, when you get to the stage you start to realize like, wow, I really can create millionaires inside of this industry, and you know, not just in their take home pay over time, but also helping them, you know, learn how to invest their money, cause, you know, a lot of times people see what the average income is.
- 21:17Speaker 1: Is it like $28,000 inside of our industry?
- 21:20Speaker 1: Maybe it's $18,000.
- 21:21Speaker 1: I can't remember it's.
- 21:22Speaker 1: I think it has an eight on the end.
- 21:24Speaker 1: Really good at this.
- 21:25Speaker 1: Anyway, not an exciting number to you know, like five X-ing, 10 X-ing what they thought was truly possible inside of this industry and so so really helping then communicate as the owner or leader on the team, like, hey, how do we continue to build wealth while you know having an amazing work-life balance and doing something that we love doing and serving people that we love to serve as well?
- 21:53Speaker 2: Yeah, I love that and cause the thing to remember when communicating.
- 21:57Speaker 2: You know a client sees the value offer they want to see the value you're offering is more than what they're paying.
- 22:02Speaker 2: And so, for example, if I have $1, and Lindsay has $10, like and we exchange money like I'm going to be winning because to get a $10 bill and I had a dollar bill like that's like.
- 22:14Speaker 2: That's the thing we have to really translate when it comes to that client experience is what are we doing so that you know price doesn't even have to be a problem, which I know people want to know what they're paying.
- 22:23Speaker 2: But like the experience is so grand, like they feel like they got a solution that they cannot get anywhere else, that you're so top of mind for them as a salon company that you know that creates that client loyalty.
- 22:35Speaker 2: So just thinking about hey, you've got to be offer a lot of value right here.
- 22:40Speaker 2: You know, when I think about people that are really great at communication, it'd be like singers and actresses, and we know a lot of successful.
- 22:46Speaker 2: We know some massive successful but a lot of successful singers and actors and it's because they use their voice to deliver a message.
- 22:53Speaker 2: So when you think about that when a client you know teaching your team.
- 22:57Speaker 2: This is like when a client is in the chair, like using their voice to solve that client's biggest hair challenges, or using the table to solve their biggest skin challenges, whatever it may be.
- 23:08Speaker 2: So I think sometimes you forget how powerful our voice can be.
- 23:12Speaker 1: Yeah, and you know, jen, I think the best news about all of this is that we all have a mouth, and so we get to use it to create some amazing things.
- 23:23Speaker 1: Just in case you were wondering, but you know, so I think that's so cool.
- 23:28Speaker 1: Like we all have that tool already, like nobody's missing it.
- 23:31Speaker 1: You just have the opportunity to refine what it is that you're offering to those around you and how it is that you're delivering your message, because you know, just like you could, you could create the same hair a hundred different ways.
- 23:45Speaker 1: You could also deliver the same message a hundred different ways, and there might be just some little subtle differences that you're like wow, I don't know what it is about this one that just seems so much more elevated and I would pay so much more money for, but it's just the truth, you know, and and that communication is like the key factor to being able to offer that value.
- 24:07Speaker 1: I mean, that's something that we focus on a lot.
- 24:09Speaker 1: We love to.
- 24:09Speaker 1: We obsess over our clients problems, um, as much as we can, so that, so that they already have some amazing solutions to offer their guests, you know, through style strategy or whatever it might be.
- 24:22Speaker 1: Um, you know we want to be able to deliver that value and communicate it to the guest so that they see like, wow, I would give Jen my money all day long because, like I know so much more about myself, I know so much more about like the look that I'm going for all of those things.
- 24:41Speaker 2: Yeah.
- 24:41Speaker 2: So just to recap everything that we looked at, when you talk about the three stages of wealth, stage one was that implement, implement, implement.
- 24:48Speaker 2: Oh, I can't get it out today.
- 24:50Speaker 2: Do you want to say it for me, Lynn?
- 24:51Speaker 1: Implementation.
- 24:53Speaker 2: Thank you.
- 24:54Speaker 2: You know, stage two was that unification and stage three was that communication.
- 25:00Speaker 2: So this would be an incredible opportunity to work with your salon team at a salon celebration, to, to, to help them realize how powerful their voices are and how they can truly utilize their voice to create more income.
- 25:14Speaker 2: You know, like to really speak to the client, to really speak to the team in a way that provides light and life to someone, can really create a transformation.
- 25:24Speaker 1: Yeah, wow.
- 25:25Speaker 1: If this has brought some amazing insight into your life and you know somebody else who could benefit from this, please feel free to send them the link to today's show.
- 25:35Speaker 1: We appreciate your, your support and it is our honor to get to serve you.
- 25:40Speaker 1: If you ever have a personal question, please feel free to send us an email to.
- 25:44Speaker 1: Hello at the phdprogramcom.
- 25:45Speaker 1: That's our elite program inside of salon business school, and you know we have a heart for serving, and so we would love the opportunity to serve you in any way possible.
- 25:57Speaker 1: So thanks for tuning in.
- 25:59Speaker 1: We can't wait to see you again soon.