Why Some Franchises FAIL Before They Even Open

Posted by Briana Hall on Wed, Nov 13, 2019 @ 10:11 AM

We have all heard the big movie business men say, "Location! Location! Location!". And it's to their employee who is sent out to scout a new place for this huge business (and it is always around a holiday so they are being forced to get it done before the holiday so they don't have to miss it) who doesn't really want this huge pressure of finding the perfect spot. But really, the big boss man isn't wrong. You need that perfect location WITH that perfect rent price.  

Location-and-Rent

You know, I'm amazed at how many people sign a franchise agreement and then fail to spend the proper amount of time finding a good location with a reasonable lease payment. If you look at the reasons that franchises fail, you'll often see two of the following listed: a bad location, and paying unreasonable (too high) rent. Finding a good location AND one where you are not paying excessive rent can be tricky. Think about it...A+ location landlords know that they can charge A+ rents. They have the high velocity traffic, visibility, and access that the tenant need. You may be able to go to a B+ or even a B space landlord and get a much lower lease payment. However you may not have the traffic that you need for your business to be successful, and as a result you'll need to spend a lot more on marketing in order to tell customers where you are. There are lots of variables when it comes to finding a space and I'll cover more of these later on. But for now, here are two of the easiest ways to avoid getting a bad space: 

Be Patient - Again, I'm always amazed by how many people sign a franchise agreement  - but then are so excited to get started that they sign a lease on a bad space. On the other hand I've seen people look for a space for so long that they weary of the process. And then to top it all off, the franchisor starts putting pressure on them to get open - so they sign a lease with sky high rent, which makes it very difficult to have a profitable location. Before you make either of these mistakes remember this, you assume an obligation to make payments for the LIFE of the lease. 

Have a Lease Attorney Review the Lease - Yes, I used the word lease twice. If your Brother-in-law is an attorney but he doesn't specialize in leases, it's best to just see him at Thanksgiving and not have him review your lease. Landlords will have your head swimming with terms like Severability, Subleasing, Joint and Several Liability, Default and Use of Premises (have I convinced you yet, or do I need to go on!). A good lease attorney can save you thousands of dollars on a five-year lease, and to me that's a good investment. 

Your franchisor should be able to provide you with a Proper Use Statement. In addition most franchisors will give you assistance and help in reviewing your lease. But remember this when it comes to dealing with Landlords and leases, "The devil is in the details", and only an experienced lease attorney can catch all those details.

 

We Can Help You Find Business SUCCESS!

francomparesmfawardShear Madness Franchising franchises our award-winning Shear Madness Haircuts for Kids salons  (FranCompare™ Best in Child Hair Care 2018). We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and business success), and have sometimes seen the unexpected happen! When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about this franchise opportunity or small business marketing, great marketing strategies, resources for small businesses, franchise success, how to grow your small business or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

Would you like to sign up for our Monthly newsletter? If so, click HERE

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Topics: franchise opportunity, how to buy into a franchise, employee, employee loyalty, business growth, franchising, franchise growth, business success, kids hair salon, multiunit franchise, best kids hair salon, building relationships, business, kidshaircuts, franchise investment, profitability

When To Move On, or NOT With A Franchise

Posted by Briana Hall on Tue, Nov 5, 2019 @ 11:11 AM

Saying YES to the franchise. It takes a lot to say yes a franchise, and we don't blame you. It's a huge decision that takes so much time and careful consideration. But how do you know that it is time to say YES?! We have some tips on when you know you have found the franchise for you!

Say-YES-to-the-Franchise

Someone who was looking for a franchise asked the question that everyone eventually comes to recently asked me. When do I move forward? First of all I congratulated them for getting to this point! Franchise ownership is a great way to build wealth and gain financial independence. I answered them by giving them some reasons to NOT move forward with a franchise, here are some of those reasons. 

Questionable Profitability - Did you know that the FTC does not monitor or audit the Financial Performance Representation (FPR) of a franchise? If the numbers just don't add up or the Franchisor can't give you a satisfactory answer about the numbers in the Item 19 then you should probably look elsewhere. To complicate this issue more, many franchisors don't even provide numbers in their Item 19. Can you imagine buying an existing business from someone and them not providing you numbers? 

High Start Up Cost - If the cost to start up a franchise is really high compared to what you can earn on the bottom line that would be another red flag. This is most commonly referred to in franchising as the Asset to Income ratio or ASI. I have seen franchises that can make $100,000 with an investment of $50,000 and franchises that cost a million dollars to build out that only make $50,000. You do the math. 

Unfair Termination - I was recently reading an FDD and if the franchisee did not hit certain sales numbers after three years of operation the franchisor had the right to take over the location. You see these unfair termination clauses sometimes and the franchises that have them should be avoided! 

Inflated Prices on Supplies - I recently visited with a franchisee next to one of my Shear Madness Haircuts for Kids salons; he had invested in one of the most popular fitness franchises out there today. When I asked him how it was going he said, " Man, they are charging me a fee for everything I order from them!"  Most franchises provide you there own proprietary supplies. This can be a good thing and one of the reasons that you bought a franchise. You get to use there Trademarked items, proprietary systems and branding. Where the issue arises is this can be a major profit center for the franchisor and some franchisors markup these items to a point where it can dig into the franchisees margins. Make sure you understand what you have to order from the franchisor. It should be defined in the Franchise Disclosure Document (FDD). 

Moving forward with your franchise of choice should be an exciting time for you and your family. One of the things that will make it all the more exciting is knowing that you have done your due diligence and are comfortable with how your franchisor runs the franchise system. Making sure you have a handle on these four items is a good place to start. 

 

Make a Positive Difference TODAY!

francomparesmfawardShear Madness Franchising franchises our award-winning Shear Madness Haircuts for Kids salons  (FranCompare™ Best in Child Hair Care 2018). We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and business success), and have sometimes seen the unexpected happen! When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about this franchise opportunity or small business marketing, great marketing strategies, resources for small businesses, franchise success, how to grow your small business or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

Would you like to sign up for our Monthly newsletter? If so, click HERE

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Topics: franchise opportunity, how to buy into a franchise, employee, employee loyalty, business growth, franchising, franchise growth, business success, kids hair salon, multiunit franchise, best kids hair salon, building relationships, business, kidshaircuts, franchise investment, profitability

Franchise Revenue Was Not The Issue, This Was...

Posted by Briana Hall on Fri, Nov 1, 2019 @ 14:11 PM

Research. Research. Research. Doing research before you invest is so important. So know how much it is going to cost to pay your employees and hold retail in your store. Make sure you are trained in both so you can be as successful as possible.

Franchise-issue

Franchise candidates spend a great deal of time studying revenues of various franchises. Yes, average revenue is an important number when researching franchises, but that only tells one side of the story. 
 
Expenses are the cost incurred in the operation of a business and have a HUGE impact on the profitability  of a franchise.  The fact that you have a royalty payment and payments into the marketing fund makes studying the expenses even more important! Make sure you understand the following two expenses, especially if you are looking at a service or retail business.
 
- Labor Cost: This is what you pay your employees and it should be calculated as a percentage of your revenue. I think of labor cost kind of like that RPM meter in your car. If the franchisor can't explain and train you to control this cost when you are redlining, then you will probably crash and burn. Make sure you understand what the industry average is and ask existing  franchisees what THEIR labor cost percentage is.
 
- Cost of Goods Sold: Selling retail and products can be a big boost to your bottom line, or a big drag. Your franchisor being able to train you on terms like retail turns, stock to sale ratio and spoilage are important components on your cost of good sold.
 
While many franchises provide cost information, not all do. Lowering expenses can give you a big boost in profitability - and a big boost to your confidence that you picked the right franchise! 
 

Your Future is a Dream Come True!

francomparesmfawardShear Madness Franchising franchises our award-winning Shear Madness Haircuts for Kids salons  (FranCompare™ Best in Child Hair Care 2018). We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and business success), and have sometimes seen the unexpected happen! When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about this franchise opportunity or small business marketing, great marketing strategies, resources for small businesses, franchise success, how to grow your small business or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

Would you like to sign up for our Monthly newsletter? If so, click HERE

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Topics: franchise opportunity, how to buy into a franchise, employee, employee loyalty, business growth, franchising, franchise growth, business success, kids hair salon, multiunit franchise, best kids hair salon, building relationships, business, kidshaircuts, franchise investment, profitability

Before You Buy a Franchise, Make Sure You Check These 5 Boxes

Posted by Briana Hall on Mon, Aug 26, 2019 @ 12:08 PM

There is so much that goes into finding the right franchise for you. After all, it is going to be your baby and you want it to succeed. Still, there are a few things you need to consider heavily when looking into a franchise.

Before-You-buy-a-Franchise

You have done your research and decided that buying into a franchise system is the right course of action for you and your family. Franchising is a proven business model that offers the chance to be in business for yourself - but not by yourself! But before you sign on the dotted line, let me offer you a final check list of things that may make or break your franchise:
 
* Strong Demographics - It sounds almost elementary, but make sure there are enough customers in your protected territory. Depending on what franchise system it is that you own, it takes a lot of customers to make a profitable location. 
 
* Recurring Revenue - Don't try and reinvent the wheel, or be talked into something that is not proven. Look at the top franchises over a long period of time. They almost all have one thing in common: customers that come back again and again. Franchises that have a high Customer Long Term Value (also referred to as CLV) have sustainable business models. 
 
* Competition -  Make sure that you are bringing a new and exciting franchise business into your market. Creating the pre-opening buzz will get you off to a strong start. If there are already lots of businesses doing what you are doing in your market, then you're banking on the fact that your franchise differentiates itself enough to steal loyal customers from those other businesses. And that may be harder then you think! 
 
  • High ASI Ratio - Simply put, you want to own a franchise with a high Average Sales to Investment Ratio. The higher this ratio, the higher the return on sales. Look for a ratio of at least 2 to 1. So if Your build out cost is $200K, then this would be  $400K in revenue.  
 
  • * High ROI - You will want a good return on investment.  If you can determine what the average Net Income is then divide that by the your investment ($50,000 Net Income/ $200,000 Cost) - this gives you a return on investment (ROI) - if this is really high, it may be that although you may have a low ASI ration - the investment is still worth it.  And Vice Verso - if the ASI is high - looking at the ROI is important as this could still be low even with a high ASI.  Normally higher return on investment means that you will need to be more involved with your business.  So when evaluating your ROI make sure and take into consideration the amount of work you the owner will have to do.
 
If you have a passion  for business, franchising is an exciting way to create income and accumulate wealth for yourself and your family.  Additionally, if your franchise has these four business metrics you should be well on your way to owning a successful business! 
 

Your Future is Bright!

francomparesmfawardShear Madness Franchising franchises our award-winning Shear Madness Haircuts for Kids salons  (FranCompare™ Best in Child Hair Care 2018). We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and business success), and have sometimes seen the unexpected happen! When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about this franchise opportunity or small business marketing, great marketing strategies, resources for small businesses, franchise success, how to grow your small business or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

Would you like to sign up for our Monthly newsletter? If so, click HERE

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Topics: franchise opportunity, how to buy into a franchise, employee, employee loyalty, business growth, franchising, franchise growth, business success, kids hair salon, multiunit franchise, best kids hair salon, building relationships, business, kidshaircuts, franchise investment, profitability

Your Employees Have To Have These Two Things!

Posted by Briana Hall on Mon, Aug 19, 2019 @ 09:08 AM

Today there are two things as employer you want your staff to have: a great work ethic and a great attitude. Neither of these are things that can be taught, but are essential when having a great team of people at work.

Essentails-for-your-employees

When you buy a franchise there are lots of things that the franchisor will teach you. The systems that a franchise has and how well you follow those systems may ultimately be the difference between your success or failure. One area that you will have the most control over is your staff and employees. Your franchisor will help you with build-out, initial and on-going training support, marketing, even guidance on getting to break even and beyond, but you will have to manage your staff. Your Human capital is one of the most vital parts of your franchise operations for a number of reasons. Your employees deliver your product, they are the face of your business, they create the fabulous experience that brings your customers coming back, they create those little interactions that make your customers think, " Wow, this company really gets me". Developing a great staff doesn't happen over night, it takes time. Additionally, if your new hires don't have the following two attributes, getting your franchise to where you want it to be is going to take longer than planned. 

 

* A Work EthicYou can't teach someone to have a work ethic. Work ethic is a tricky thing, some people have it out of need, they have a family and need to support and provide for their family. Some people learned it from there parents and are modeling it. But one thing is for sure, if you are going to put together a great team, having employees with a good work ethic is critical. 

 

* AttitudeI have heard people say, "That person needs an attitude adjustment", and you know I have seen that work, but only on a temporary basis. You know what behavioral psychologists will tell you, past behavior is the best predictor of future behavior. Companies spend a great deal of time and money working with and trying to fix people with bad attitudes. Find people with a good attitude about your company right from the beginning, nurture and train them, show them there valued, and your people will work together as a team. 

 

Getting your staff to work together as a team to create a fantastic customer experience is crucial to your franchises success. During the interview process you can ask questions that will give you clues on whether your candidate has these two important attributes. You are going get to where you want to go a lot faster if you can find candidates that have these two attributes. 

 

Building a better future TOGETHER!

francomparesmfawardShear Madness Franchising franchises our award-winning Shear Madness Haircuts for Kids salons  (FranCompare™ Best in Child Hair Care 2018). We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and business success), and have sometimes seen the unexpected happen! When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about this franchise opportunity or small business marketing, great marketing strategies, resources for small businesses, franchise success, how to grow your small business or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

Would you like to sign up for our Monthly newsletter? If so, click HERE

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Topics: franchise opportunity, how to buy into a franchise, employee, employee loyalty, business growth, franchising, franchise growth, business success, kids hair salon, multiunit franchise, best kids hair salon, building relationships, business, kidshaircuts, franchise investment, profitability

5 Amazing Customer Service Tips

Posted by Matthew S on Wed, Jul 12, 2017 @ 12:07 PM

5customerservicetips.jpgCustomer Service is one of those things that might sound easy on paper, but can sometimes be a lot more difficult to remember or implement effectively when you're interacting with your customer in person (or over the phone). Following are five recommendations that Shear Madness Haircuts for Kids (an award winning kids hair salon franchise system) has learned over the many years that we've served thousands of customers with a smile and the help they not only deserve - but have come to expect!

1. It's important to have the right information at hand! When interacting with a customer, the right information can make a big difference in the kind of interaction you might have with them. Wrong or unclear information might cause someone to leave with a feeling of annoyance, exasperation or that they just didn't get the solution they were wanting - which could cause them to look elsewhere. So make sure that your business has a great system in place that keeps track of relevant customer data. For example, let's say a customer contacts your business wanting to know about a service they received from a couple of weeks ago. If you're unable to quickly look up this information, or the employee who assisted them, the lack of details could lead to potential confusion over what they're asking for. 

2. Treat your customers like people! We've often seen very sterile communications with customers, which is laden with in-house terminology, number or letter sequences (for products) and sentences that seem like they're spoken by a robot. Or, I'm sure we've all had that employee who acts about as bored as can be when you call them up to ask a question, or take absolutely forever to give you the answer you're looking for. This all leads to a feeling that the customer is either just another number in some machine, or isn't really that important. So make sure that you're relating to your customers in ways that help them to feel valued and intelligent, and use language that is friendly and not too technical. One trick that might help is to actually smile when speaking to someone, whether in a face-to-face discussion or on the phone. It's a lot harder to convey an attitude of boredom or annoyance when you're smiling. 

3. Acknowledge customer concerns. This can be a tough one, as no-one likes to feel like they're in the hot seat. However, make sure that when you're assisting an upset customer that you listen carefully to their concern, and promise to make it right (as much as is feasibly possible). It's also important to utilize positive language over negative language when interacting with your customers. For example, negative language might be the use of "I can't or won't do that right now", or "This is not our fault". Positive language would be, "Thank you for bringing this concern to our attention. I would be happy to help fix this issue for you!"

4. Help customers with the ability to help themselves. Sometimes it can be frustrating for customers if they're looking for an answer that they know should be easily available online, but instead have to spend the time to contact someone at your business. It's a good idea to have a website where customers can find this information, and publicize it on social media or in your advertising so that they know this is where many of their questions could be answered. For example, a business website should include store hours, locations, services provided (with helpful descriptions) and perhaps even a frequently asked questions. Another great thing about a website is that it can communicate through photographs or videos, which can be very helpful for your customer in understanding more about what your business offers!

5. Be thankful to you customers. As noted earlier, customers love to feel appreciated and valued.  One way to do this is write thank you notes after a customer makes a purchase, or have customer appreciation days with fun give aways and snacks. You might also consider utilizing the blog on your website or social media to highlight positive customer feedback, good customer questions or photographs of customers in your store (with their permission of course). A lot of people complain about faceless mega-corporations that seem to regard them as just a number. So be sure to bring a personal touch to help your business stand out!

Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and business success), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Would you like to sign up for our Monthly newsletter? If so, click HERE!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about this franchise opportunity or small business marketing, great marketing strategies, resources for small businesses, how to grow your small business or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

 

Exploring a Children's Salon Franchise

Topics: Business Tips, small business how-tos, growing a small business, employee loyalty, business growth, business relationships, franchising, customer appreciation, customer feedback, franchise growth, business success, business skills, business ownership, customer service

The One Thing That Will Make Your Franchise Grow!

Posted by Jim Otto on Thu, Jun 15, 2017 @ 10:06 AM

franchisegrow.jpgThe picture at left didn't happen over night. It took time, patience, effort and research. It's an art and not a science - and it's also the ONE THING that you will need to have a successful business. Your ability to develop a "team" in your business will be dependent on you being able to find those "team players" that understand where your business is going and how it's going to get there. A famous business consultant describes a successful business model as PEOPLE - PROCESS - PRODUCT. If you don't have the right people, the other two are a mute point.
 
Most people start a business to make money. BIG MISTAKE. The purpose of a business is to create and keep a customer in a cost efficient manner. Profits are not the purpose of a business. Profits are the result of creating and keeping a sufficient number of customers, who then yield a sufficient number of profits after all cost. And what's the measure of customer satisfaction?  Repeat business. It's only  when customers buy from you again, that you demonstrate that you have fulfilled the promise you made them when you got them to purchase the first time. This all happens because of the picture that you see above. This is the team who creates the customer satisfaction, the team who creates customers coming back again and again, and the team who creates a sufficient number of customers for your business to create a profit!
 
 Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and franchise success), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Would you like to sign up for our Monthly newsletter? If so, click HERE!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about this franchise opportunity or small business marketing, great marketing strategies, resources for small businesses, how to grow your small business or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

Exploring a Children's Salon Franchise

Topics: Small Business Franchise Information, Business Tips, employee loyalty, keeping good employees, business growth, franchise growth, business success, franchise success, business ownership

Employee Retention Strategies for the Good Salon Employee

Posted by Paula Thurman on Mon, Dec 8, 2014 @ 11:12 AM

EmployeeStrategiesAre you exasperated with stylists who show up late, demand more pay, don't take a lot of pride in their chosen field of work, complain about not getting enough hours, and neglect to educate their clients on products? The list could go on and on. But one thing is true. The perfect employee or stylist doesn't grow on trees, nor do they just come walking through the door (except maybe once or twice in your career…if you’re lucky). So, it’s up to you to mold the staff you have into the “perfect employees”.

In situations where most employers would fire an employee, instead try to lovingly coach, educate and mold them into being a perfect employee. Remember, these are stylists - most of whom are “fabulously free spirited and amazingly creative”. What they are not is business minded, or thinking much past their client and themselves. So by providing them with a little understanding of your job as the owner, as well as clear boundaries, you give them a balance they may not naturally have.

Here at Shear Madness Franchising (Shear Madness Haircuts for Kids Salons) we have come up with 4 easy strategies for our franchise owners to use.

  1. When employees show up late and their client has been waiting: Don’t chew them out or make them feel bad. Instead remind yourself that with most stylists their thought process is “its ALL about ME”.  So take this opportunity to make it ALL ABOUT THEM and coach them on all the reasons they are holding themselves back. Tell them that by making their clients wait unnecessarily, it makes them look unprofessional. It's also impolite and most likely reduces the amount of tips they receive, as well as potentially ruining the chances of that client ever rebooking with them again. Remind them that because their client’s time is valuable too, showing respect to a client will undoubtedly build a greater client base. Then be sure to let them know that because you believe they can do better - you'll expect better from them in the future. Also, make sure that it's known that poor attitudes and behaviors refelect negatively on the salon as a whole, and that damaging the good name of your business simply can't be allowed. Then smile and give them a hug. 

  2. When employees complain because they aren’t making enough money: We’ve all had this employee before. The one who doesn’t want to work hard and believes that it’s someone else’s fault they aren’t making more money. Usually they are simply uneducated as to what it takes to be successful. So if you want the perfect employee, coach them on building their own client base and provide them with specific suggestions on how they can do this. Gently remind them of the “color class” they missed last month and how that new technique would save time by allowing an additional client to be booked per day. Be loving, be kind and never make them feel bad about their work. Educate them, coach them and build them up, and they will become the perfect employee.

  3. When employees give you ultimatums: What should you do when an employee or stylist corners you and says, “I’m going to leave if you don’t pay me more”? First off, don’t cave in and give it to them. Instead, schedule a time that day to meet privately. Then educate them on why the business pays in the manner in which it does. Remember, they cut hair and do not run a business, so give them a few examples of what all needs to be covered by the salon to remain in business. Show them “on paper” how gaining just one more client per day would translate into more money for them over the course of a year. Additionally, perhaps talk about how many more clients they have now vs. when they started, and share with them what marketing efforts you have in place to bring in more clients. Then remind them how they may have kept a client waiting for 30 minutes the other day, and how she didn’t re-book for her next appointment. Reminding them of that client they kept waiting puts the fault of not making more money back where it should be - on them.

  4. When employees are upset because they need more hours: First, remember that you are the owner and will think a little differently than they do. You are all about the numbers and what it takes to run your business, and they are all about being creative and cutting hair. So it’s important they understand that your job is to grow the business with the funds that you have. For example, if you have stylists on payroll when there are no clients in the store, then most of your resources are being burned up in payroll instead of marketing. Coach them on how to build their own request base so that when the slow season comes and hours are sparse, they’re still busy and getting the hours they need.  Then you can gently ask them, “didn’t you just ask Saturday if you could be the first to leave if we were slow”?  

We have many more business tips and strategies that cover everything from employee retention, to marketing, to product sales, and more! As a Shear Madness Haircuts for Kids franchisee, you could have access to all those systems and strategies.

If you've never really thought about a franchise opportunity and would like to know a little bit more, you can download our Franchise Buyers Tool Kit - it's a great resource that helps you understand what a franchise is all about!  Just click to register and the kit will be emailed to you!

Exploring a Children's Salon Franchise

Topics: salon franchise, Business Tips, Free Resources for Businesses, small business how-tos, salon, employee loyalty, employee retention, keeping good employees, making your next hire a good hire

4 Simple Employee Retention Strategies

Posted by Paula Thurman on Wed, Oct 22, 2014 @ 11:10 AM

4simpleaEmployee loyalty is very important to a small business owner. Good hiring is only the start of it. Finding and keeping great employees hinges on the efforts put forth by the owner.

Great Employees are the heartbeat of a business!  Focussing on them will affect your bottom line.  Happy Employees = Happy Businesses. The way customers feel in your store is directly correlated to the way your employees feel about their jobs in your store.

As an owner, the way you treat employees creates an energy that flows through to the customers in your store.  When you hire, train and interact with your employees care should be shown. Following are Four Important areas to focus on for great employee loyalty.                         

  1. – Follow Your Heart 
  2. – Make A Human Connection
  3. – Appreciate Each Employee for their individuality
  4. – Accept That We Exist In A State Of Gray                                        

FOLLOW YOUR HEART 

I know what you’re thinking. And, no, we aren’t telling you to throw caution to the wind or make every executive decision in a whimsical fashion. But if you read that headline as if your number one priority when running your business should be to look within, then you are on the right track.

If everything is only equal to the sum of all of its parts, then why do we look so long and hard away from the anatomy of those sums at work: the people, and their human existence? Owning and growing a small business cannot all be decided based on some predetermined equation that is easily applied to every situation and ends in the best possible outcome each time.

If you are willing to make the effort to step back from being "The Owner", get out of control mode and actually exist in the energy around you, you will be more in tune with what is or isn’t working within this lively beast you have created (your business). You will be able to feel the ebb and flow of its heartbeat. Are there bottlenecks in the stream of certain processes? Find out from your employees, the internal organs of your business, if these are common occurrences.

Your natural instincts will take over to allow you to make the necessary corrections where they’re needed. Thus, by following your heartand listening to your staff – you will establish the most successful workspace for everyone in your company, and your employees will thank you by sticking around to enjoy it.

MAKE A HUMAN CONNECTION 

Like any other successful human relationship, in order to cultivate the best working environment for your company, you must focus on respectful communication, active listening, open-mindedness to new ideas, and the capacity to accept criticism where it’s properly due.

Taking time out of your schedule to make a connection with your employees, and to let them tell you how their jobs make them feel, will give you an intangible advantage as you continue to grow your business. As soon as those who are working around you are no longer just bots who are working for you, your mission and your company’s energy will move in a better, stronger direction.

Your employees are the glue that can hold even the most fragile of start-ups together. Allowing them to be up-front and honest with you about their thoughts and ideas, both within and without your company, will allow you to see them in a more wholly stature. It will allow both parties to establish a bond with the other, one that will likely last a lifetime.

 APPRECIATE EACH EMPLOYEE 

In the beginning, this will feel like a no-brainer. Of course you’re going to appreciate each employee, right? These people are making your dreams come true right now. You are so thankful for them showing up for that interview or being at that job fair or for taking a chance at your Craigslist ad… But that wears off, eventually. Inevitably, any person in charge of other employees begins to see patterns in the disappointment that accompanies the joy—and they begin to doubt new hires right from the start.

One of the trickiest obstacles faced by small business owners after that first year in the business, is being able to get excited about new employees as the company grows. You need a new receptionist or you’ve decided to add an extra driver to a route, perhaps your cleaning crew is terrible or your IT guy was stealing from you. Whatever the case, you must leave those disappointments with the perpetrators who perpetuated them.

Appreciate every employee who shows up for work, who smiles when you talk to them, who makes the customers feel at ease, who produces consistently every shift, who works for you. A simple “thank you” or “you’re doing a great job” can be all that person needed to feel excited about their job again. When your staff feels appreciated, they will stay. 

ACCEPT THAT NOT EVERYTHING IS BLACK OR WHITE 

In life, we often find ourselves in new situations with only our past experiences and instincts to draw on when figuring out how to handle them. Being a business owner, especially starting out, brings situations that no manual has ever been written for. In fact, a lot of the things you may experience as owner will be foreign territory.

There will be employees who will come to you asking for a change in their hours or their pay. It can feel like your role has somehow turned into “Miracle Worker” and your job is simply to grant all wishes to those who ask. Refrain from this mentality. Remember instead that there is not always a perfect solution. It is okay to make decisions based on who’s asking and what they’re asking for.

There is no black & white way to manage your living, vital lifeline between your customers your employees, and yourself. Without feeling guilty that you aren’t following a perfect protocol, avail yourself the opportunity to act in the grey areas. Choose pay advances based on whether or not you think the employee will be around to repay them. Tweak schedules as needed to allow for outside responsibilities, or to get your top producers the hours they want.

When you make the right decision for each employee, based on your own personal history with them, you are making the right decision for your business. Regardless how you would have handled the same situation with someone else, choosing to personalize your approach to each person who works for you – and with you – is a huge step toward gaining that person’s employment long term.

The world is not black and white. Your employees shouldn’t be limited by only yes or no answers either. If you allow yourself to accept that every situation really lies in a state of grey, you will gain the trust, admiration, and loyalty of your employees and find yourself 15 years down the road working with the same people you started your business with.

Keep up the good work!

I am a small business owner and have been so for 17 years - and yes I have employees who have been with me for most of this time.  As Franchise Operations Director for Shear Madness Haircuts for Kids Franchises I talk to franchisees often about employment issues that they face.  As franchise owners, they are free to make their own decisions about their employees.  However, I am available to bounce ideas off of and to draw from my past experiences for possible similar situations for what worked and what didn't.  This is one of the many advantages of franchise ownership support.  If you are interested in learning more about the advantage of franchise ownership - you might like this -

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Topics: Business Tips, growing a small business, employee, salon, employee loyalty, employee retention, keeping good employees, retain good employees