Kids Salon Franchise - 10 Reasons Shear Madness IS your Choice!

Posted by Janon Otto on Wed, Oct 29, 2014 @ 10:10 AM

Many people who are interested in opening their own business and becoming their own boss often wonder what the advantages might be towards investing in a franchise opportunity. Following are ten reasons why buying a kids salon franchise with Shear Madness Haircuts for Kids may translate into the long-term success of your investment.

Robust Industry: Many franchise systems offer services that are in high demand. The children’s segment of the recession resistant Hair Salon Industry is one such example, It's currently worth around $19 billion. To date, there are around 45 million kids in the Shear Madness age group – and this is expected to grow by about 7 million by the year 2020! 


Marketing Support: Ask anyone who runs a business, and they’ll tell you that marketing not only takes a lot of time – but can cost a lot of money too. However, an effective marketing plan is critical in letting the community know about what your business does, where it’s located, and so much more. For example, Shear Madness Haircuts for Kids understands this, and offers great resources and strategies to help businesses attract new customers.  

A Record of Success: Franchisors will have a proven record of success. Through years of experience marketing to their customers, they usually understand what works - and what doesn't. Through becoming a franchisee, you automatically gain this valuable business advantage.  From 1997 to the present, you get the benefit of those year and years of trial and error – saving you lots of $$$!  Shear Madness is the ONLY kids salon franchise that has 3 revenue streams and systems in place to help you manage all 3 or these revenue opportunites.

The Brand: A franchise brand is a powerful tool. As an example, the Shear Madness Brand is one that is instantly recognizable as being fun. Those who own a franchise with Shear Madness are automatically connected to the tens of thousands of parents and children who love who we are and what we do. This translates into many repeat customers who share with friends and family about their great Shear Madness experience! 

Buying Power:  Franchisors usually have experience in knowing what products sell well and what don’t. Additionally, they have the knowledge on how to negotiate for the best prices on everything needed for the successful operation of the business.  Many times the sheer number of franchise locations allows the franchise to negotiate for better pricing.  Shear Madness is always working to improve your bottom line.  Currently we have our own brand of Hair Products that provide for high profit margins.  We are constantly talking to new vendors for better pricing for you!

Store Location: Where to locate is an important question any business owner should consider. Franchisors help study your community in order to help you find the best possible location for success.  They know the numbers and other criteria that allow for the possibility of a successful franchised business.  Shear Madness studies your area indepthly before a physical visit to help you through this process.  Then they have a lot of input on what to watch for in your lease negotiations.  Often the hardest part of the build out process is the lease!

Networking: Franchising can be a little like a group of trusted friends, and should be a great environment of sharing and building each other up. Franchise owners who work with other franchises and communicate what works and what doesn’t will have a competitive advantage over those who don’t!  Shear Madness Haircuts for Kids provides several different avenues for franchisees to talk to each other, get input and advice.  Some are round the clock, others monthly, but learning from each other is a must in this ever changing world.

Training Support: Great franchise systems have worked hard to develop many training resources to help you achieve success. For example, with Shear Madness Haircuts for Kids, we provide our franchisees with in-store training with stylists, and encourage opportunities to network with other franchise owners. Because of this, you’ll have access to a wealth of business knowledge at your fingertips.

Building your Store: One of the benefits in buying a franchise is the franchisor's expertise  in designing the layout of a prospective business, working with the right contractors, and knowing how much furniture and equipment will be needed. Again, this helps a business owner save time, money, and keeps the headaches to a minimum!  Shear Madness Haircuts for Kids salons are the most professional looking salons in the industry.  Accomplishing this look is a breeze for a new franchisee!

Minimizing Risk: Ultimately, as a potential owner of a franchise, the success of your store will be up to you. But through being a part of a franchise system like Shear Madness Haircuts for Kids, the risk of starting a new business is significantly reduced. Sure, there will still be challenges that come your way, but as a franchisee, you’ll have greater confidence and know-how in how to succeed. 

When an individual buys into a franchising opportunity with Shear Madness Haircuts for Kids, they won’t be going at it alone. Our team excels at being a partner who wants our franchise owners to succeed! 

If you are interested in learning more about our franchise opportunity you can call Jim Otto at 888-984-6636 and attend a free webinar explaining our company and opportunity in much more detail - you also can find more information by downloading this:

Exploring a Children's Salon Franchise

Topics: kids salon franchise, salon franchise, kids salons, franchise buyers, Small Business Franchise Information

Wise Working Capital Management Calculation and Planning

Posted by Jim Otto on Fri, Oct 10, 2014 @ 12:10 PM

Many business's have failed due to lack of sufficient working capital. So how much is enough and what formula do you use to figure it out? I would recommend using a bottom up approach, or put another way, what could go wrong that you may not have anticipated that could cause your new business to need more working capital then you thought.

Take franchises for example, the Item 7 in the Franchise Disclosure Document, referred to as the FDD, is the estimated cost to build out the franchise and typically includes working capital as a line item. In an effort to keep the cost of the franchise business low the working capital is sometimes understated. This can contribute to high failure rates of new businesses, as working capital is the life blood of a new business.


Many new businesses fail because of lack of marketing. Getting your name out in the community, building a loyal customer base and differentiating yourself from the competition can take a new business on average 3 to 5 years. Therefore whatever you anticipate spending on marketing you can pretty much double that amount. The busier your location becomes the less you can spend on marketing. But getting that initial foot traffic can be costly. 

In the initial stages of your business you must market to the masses. Once you have a client base you can save money by target marketing to your existing customers - or to new customers only.  You will have gathered customer information (i.e. email addresses, etc.) that will allow your to touch your client base more economically.


Obviously if your goal is to provide a superior customer experience and customer service your location needs to be properly staffed. Ideally your payroll should be less then 35% of your overall revenue but that may not be possible in a new location. Expect your percentage of payroll to be higher initially in a new location until you have the proper benchmarks in place to track your traffic. Most franchised businesses can give you these benchmarks based on the historical data of previous locations within there systems.

If you are appointment based and even if you aren't you will need to get the feel for your traffic flow and staff accordingly.  In the beginning the worst thing you can do is to be understaffed when those customers come through your door!  So overstaffing is really a must spend in the beginning!


It doesn't do much good to bring in new customers if you don't have the product that they need. Replenishing your inventory is a key monthly expense that you need plan for. In our Chldren's salons anywhere between 15 and 40% of our monthly revenues can come from retail products. A good business owner will plan in advance and anticipate the demand based on what time of the year it is, as an example most all businesses sell more product during the holidays but that inventory will need to be purchased in early fall to have it delivered in time to be marked and displayed.

Analyzing your business, it's sales trends, customer traffic and other historical patterns are vital to figuring out how to use your working capital wisely. It's all in the numbers.


There are very few businesses that have steady income throughout the year!  A Construction company focusing on cement and asphalt will be slow in the winter but busy in the spring and summer.  Retail businesses are busy during the fall and back to school.  When are you opening your business?  If you are not opening until the busy season than your premarketing expenditure needs to be extra large as you will want to get your name out there when customers are thinking about your type of business.  If you are opening during a slower time of the year than you will need operating expenses to keep open with the income is not going to be there - but this is still advantageous as you will have a chance to practice good business operations before you get the busy season rush!

If you have a very seasonal business you will want to look into a business line of credit for working capital requirements during those slow times.  This will probably be a yearly need as keeping good employees happy and the doors open during slow times is important!


Imagine your business day from the time you walk in and turn on the lights and security system to the time that you leave for the evening. Lights = utilities, Bathroom = Cleaning Supplies, Taking a Charge Card = equipment, merchant service fees, Printer = ink & paper (Office Supplies), Insurance, etc.


Every new business is going to have some expenses that were not planned for!  What will those be?

  • The Landlord gets the new tax rates and suddenly yours goes up and you have to make up the shortfall.  This frequently happens in newer shopping areas.
  • Do you have a used AC Unit - what if it goes out?
  • Unexpected Lease Requirements - when are you getting the reimbursement for your Build Out Costs?  What requirements must be met before those funds are released?  Is there anything that could delay this?
  • The contractor did not include essentials in the bid for work and both parties overlooked this.  Plan for at least a 10 - 15% overrun.

Padding the Working Capital Expected will prepare you for any of these instances and more.  AND if none occur then you are still in business with dollars to spare!

Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons.  We have worked with franchise stores and have seen the unexpected happen!  When it does we help by identifying and helping with unfair situations for franchisees.  Presenting options that help prevent these events as well.  Most franchise owners have not opened businesses before.  Having someone who can advise them and help prevent working capital misuse is one of the significant advantages of franchise ownership.

If you are thinking of opening your own business exploring franchises could help you make better decisions in this process.  We have put together a toolkit that explains how you might go about exploring franchise ownership, what you can learn, and how it all works.  Just click below to get this tool!

Exploring a Children's Salon Franchise

Topics: franchise buyers, how to begin a business, Business Tips, small business how-tos, working capital

7 Things Successful Franchisees Appreciate

Posted by Matthew S on Thu, Oct 9, 2014 @ 13:10 PM

small2textFranchisees should feel like they are being served by the franchisor.  Shear Madness Haircuts for Kids understands that the road to becoming a successful business involves many unique challenges. Our franchisees have taught us that being a great franchisor is important to the success of the individual franchisees.  Here are a few things that we have discovered that our franchisees really appreciate.

1. Great Customer Service: Quickly deliver your quality product with a smile! Time is a valuable resource to your customer. Delight them with efficient services and promptly returned emails and phone calls. And don’t forget to smile, say “Thank You”, and let your customers and employees know how much you appreciate the work they do!  As a franchisor we realize that a franchisees time is just as important!  And just as our salon customers' deserve prompt answers our franchisees deserve prompt answers from us - the franchisor!

2. Optimism: It’s important for business owners to always be optimistic about the future. Attitude will quickly infect your employees and ultimately impact what the customer receives from your business. If a customer believes they aren’t getting a great product or experience from your business, they may look elsewhere.  It takes a while to really build a succesful business of any kind - we understand this!  There are always going to be ups and downs in any business.  We are constantly on the look out for successful marketing techniques to pass along to our business owners.  Optimism and success by others is contagious!  We share store results with all owners so they are able to encourage one another.  Every store has the ability to be a success!  We know this and help provide that optimism in both intangible and tangible ways!

3. Think Different: Think "Outside the Box". This may require a business owner to get out of their comfort zone, but your customers will be drawn to products and advertising that looks different from what everyone else may be doing.  Franchisees buy a franchise because they want to know "how to do it" and they expect that the Franchise IS doing it differently than everyone else!  A succesful franchisee will always ask the franchisor when they are thinking of doing something outside the box!  The franchisor most times has experience with that idea and can guide a franchisee to either do it better - or maybe help them avoid a costly mistake!  Franchisors that reward those franchisees who have thought of something "outside the box" and have a system in place to share this information is much appreciated by all franchisees within the system!

4. Team Building: Good franchisors don’t just hire another employee to do a job – they find people who are excited to be part of your team. These employees will help build your business through delivering great products and services, and caring about your customers as well as you as a franchisee! Franchises typically do not have many employees in their home offices - so those that they hire need to be carefully chosen.  

5. Focus: A good Franchisor will not allow you to fall victim to being a jack-of-all trades, and a master of none. The risk here is that by spreading yourself to thin, you’ll limit how effective and productive you can be - which may result in poor products or services. Zero in on achieving perfection! A good franchisor will help you with this - if you are thinking too far "outside the box"  the franchisor should alert you to this!  Every idea may have merit, but doing them all well is usually not possible.  

6. Do What You Love: A Franchisor chose you as a franchisee because they see something in you that brings strength to the business.  Building a business around what you enjoy and a good at gives you a greater chance for success. The franchisor may pull you back in and remind you of why you were chosen for the task!  They will also help you get better at those skills that may need improving.  AND they may improve the entire system based on what knowledge your strengths have brought to the system!

7. Don’t be a loner: Successful Franchisees and Franchisors realize the value in sharing!  You are NOT in it alone as a franchisee.  Franchisees appreciate built in systems, meetings, conference calls or other systems that the franchisor has put into place to allow them to communicate and learn from other franchisees, employees, and the franchisor. There isn’t anyone out there who can knows everything. Being able to seek out those individuals who enjoy being expert advisors and mentors within the system is valuable.  As each store becomes more successful it helps everyone within the system.

One thing to remember is that when an individual buys into a franchising opportunity with Shear Madness Haircuts for Kids, they won’t be going at it alone. Our team excels at being a partner who wants our franchise owners to succeed! If you’d like to learn more tips on how to achieve success from our team of business experts, click the below banner...

The Franchise Buyer's Toolkit

You might also enjoy reading: 

Topics: kids salon franchise, franchise buyers, franchise opportunity, Shear Madness Haircuts for kids, how to franchise, Free Resources for Businesses, successful franchisees, marketing strategies

7 Habits of the Most Successful Franchisee in the Franchise System

Posted by Janon Otto on Mon, Oct 6, 2014 @ 16:10 PM

In Franchise systems there is a rule of thumb.  Twenty percent of your franchisees will be great, sixty percent will be average, and twenty percent will be underperforming locations.  Then within that top twenty percent there will be a few superstars.

What makes a franchisee a superstar?        

1. Use What is Provided - They use the tools the franchisor provides to their full extent.  Most franchisors provide tools for their franchisees to use.  These might be personalized web pages per location, advertising design, marketing calendars, discounted printing services, etc.  The star knows and uses what the franchisor provides.  AND if the franchisor doesn't provide something they need - they are not afraid to ask for it!  Many times they find out about a new resource they had overlooked or the franchisor adds something as a result!99watermarktext

2.  Not Afraid of Franchisor Input - They contact the franchisor about ideas they have for product or sales ideas they have.  Franchisors have been in this business much longer than a franchisee.  Many times a franchisee has an idea they think has never been tried - however many time it has already been done.  Contacting the franchisor makes whatever idea the franchisee has - BETTER!  Because if it has been done or tried it either succeeded or failed and the franchisor can guide the franchisee as to whether to throw the idea out or how to make it better.  They can also point out potential problems or successes that need to be thought through before going forward.

3.  Answers Franchisor Correspondence - The star reads all correspondence from the franchisor and consistantly is among the first to answer!  They make decisions quickly and don't wait until the last minute to answer - many times the franchisees who don't answer correspondence and wait - never get to it as the emails, mail, just pile up and they forget.  Usually missing out on opportunities or direction the franchisor has provided.

4.  Plans Ahead - Franchise Systems have to plan well in advance for marketing and product introductions and promotions.  The Star franchisee plans well in advance as well.  They make sure that supplies are on hand when needed, and products are in place for any promotions the franchisor is offering.  They also add to these offerings with ideas of their own to increase sales.

5.  Works Hard - The Star Franchisees in a Franchise System realize that success takes work!  Even though they bought a franchise with proven success this does not happen without work and effort on the franchisees part.  Businesses do not run on their own without supervision and guidance.  Even the owner who is not onsite must be aware of what is going on and the location must also know that the owner cares about the business.

6.  Invests the Capital it Takes to Build the Business - Word of Mouth is the best advertising a business can get.  Successful Franchisees realize this and also realize that this takes time.  They are willing to put in the working capital neccessary to keep the business at its best at all times until the word is out and the business can sustain itself.  A business may break even early, but it really takes about 3 years before it is entrenched and well recognized within its area of operation.

7.  Uses the In Store Systems -The Star Franchisees within a Franchise System make sure that they understand how their business is to operate using the in store methods that the franchisor has provided.  They are the ones that ask and ask and ask again making sure they understand how operations are to go.  They are smart but realize that there is a learning curve that is shortened drastically because they bought into a franchise.  They realize that the franchisor has the experience and that systems that don't make sense must be there for a reason.  They ask so they understand.  Customers want to visit happy and efficient operations!

     Royalty Payments are well worth it - the star realizes that they could not hire an employee with the knowledge of the franchisor for what they pay in a royalty.  They make sure that they get their money's worth out of this payment.  Use what the franchisor provides!  It is amazing that many franchisees in a system will flounder and struggle just because they don't pick up the phone, answer emails, or follow the system.  They pay a royalty and complain that it is not worth it, when in reality they are not taking advantage of what the franchisor is offering them.  

This article was written by the CEO of the franchise Shear Madness Haircuts for Kids.  Franchise systems are not equal and many provide tools that others don't.  If you are thinking about investing in a franchise - find out what those tools are.  Ask other franchisees if they are using them and how valuable they are!

Are you thinking about becoming a franchisee?  You may enjoy reading The Top Four Considerations when becoming a Franchisee:

The Top 4 Considerations

Topics: franchise buyers, buying a franchise, Small Business Franchise Information, Business Tips, successful franchisees, small business how-tos

Salon Franchise Options

Posted by Emily Drake on Thu, Apr 11, 2013 @ 10:04 AM

SO MANY!! In the franchise world there are a plethora of options.  Choosing between categories alone can be a challenge! However, one category that many times is worth evaluating is salon franchises. Why you ask?  Well, everyone needs a haircut now and then. Most sectors of the salon industry are recession resistant, and it does not appear that the internet is going to be able to replace haircuts anytime soon!


The choices for a Salon Franchise are bigger than you think!

The ones everyone thinks of are some of the Original Hair Salon Franchises - think Great Clips, Fantastic Sams, Snip n' Clip, etc.  These are low end walk in type salons.  Clientele does not make an appointment and they tend to exist on every major street corner in most metropolitan cities.  These typically have the stylists act as management as well and the owner is an absentee owner.

Mens' salons - this niche is relatively new to the franchise sector.  Probably the most well know mens salon franchise system is Sport Clips.  However, many others have opened in recent years.  Everything from very high end Men's Country Club type salons that offer a full array of services i.e. The Boardroom, down to lower end salons that do high volume yet still offer men a good haircut without all the frills.  There are those that appeal to pool players and those that just cater to "players".  Most wives don't really appreciate those and taking your kids to one is deemed "inappropriate"!

Kids Salons - again we have a type of salon that is relatively new to the scene.  There is no real dominant player in this arena.  Shear Madness Haircuts for Kids has been in operation since 1997 and that is one of the earlier children's salons.  None of the salon systems predate the 90's!  Each franchise has its own personality and philosophy on running a succesful salon.  Extras added to some are kids retail and birthday parties.  Some are run by a manager and others have the stylist/manager configuration. A close evaluation of what makes up te revenue portion of the salon is important to look at.  How easy is that portion to run?  Does it take an onsite owner or can it be run absentee?

Hair Removal Salons - these are also very new to the franchise arena.  Tropical Laser Hair Removal opened in 2007! They still fit under salons as the technicians need to have licenses just as hair stylists need to have licenses.  These can be combined with the above types of salons or can be a stand alone type. Many times these are partnered with businesses offering massages.

Nail Salons - there really is not a dominant player here at all.  It seems that most nail salons are individually owned, yet we are waiting for a franchise to pull it all together!

Massage Salons - think Massage Envy.  These typically sell memberships as opposed to collecting revenue when the service is actually performed.  This type of franchise with membership fees is very popular especially in the health club arena.  Many buy memberships and then do not use them like they should making the franchise system more profitable.

There you have it!  Lots to choose from!  Which one is best will depend a lot on your specific situation.
    •    Are you located in an area that already has enough of any one of these types of salons?
    •    Do you want to work in your salon or run it absentee?
    •    How much income are you hoping to generate on your salon?
    •    How many salons can you afford to open?
    •    How much support does the franchisor offer vs. how much you need?
    •    How does your talent set match with that of the franchisor?  Meaning - are they going to provide what you lack?

If you are thinking I want to know more about franchising in general we invite you to download our Free Toolkit and find out what the Top 4 Condsiderations are when looking for a franchise! Once you know a bit more about investing in a franchise in general you will be more prepared to contact individual franchisors and ask great questions!

Topics: kids salon franchise, franchise buyers, buying a franchise, what is a franchise, the salon business

RE-INVENTED : Career Shifters Part 3

Posted by Emily Drake on Mon, Oct 1, 2012 @ 11:10 AM

Attention Entreprenuers : Reinventing your Career is Easier than you Think

Buying an existing business such as a franchise, is one of the smartest choices today's entrepreneurs can make. Let's face it, MOST new start up businesses FAIL within the first year. Why is this? Let's be brief:

1.  If you ask most successful entreprenuers the most difficult part of getting their business up and running is implementing the systems. With a franchised business all the systems are already in place for you to follow.

2.  Inadequate Knowledge and Experience - There is no substitute for knowledge through experience. Usually when entreprenuers start a business they can expect years worth of struggle to aquire the learning curve necessary for success. Buying an existing business that has already safely overcome that learning curve can eliminate a LOT of trial and error that buries most entreprenuers within their first six months.

4.  Poor Money Management - If this needs further explanation then you are not prepared for entreprenuership.

5.  Spreading yourself too thin - Running any business is difficult. The first tendancy for most new business owners is to save money by doing everything themselves. Your mantra should be Do what you do best and outsource the rest!

Buying an Existing Business such as a Franchise

Investing in a franchise system can be a great opportunity for entreprenuers. And NO, it doesn't mean you need to go spend a million dollars to open a McDonalds!

In the franchise world there are many options. Choosing among all the categories alone is a challenge! However, one category that many times is worth evaluating is the children's hair salon business! Why? Well, every kid needs a haircut now and then! Most sectors of the salon industry are flooded with competition, but not the children's salon industry! - AND it does not appear that the internet is going to be able to replace haircuts anytime soon!

If you would like to receive a FREE whitepaper designed to help when evaluating ANY franchise click HERE!

The Top 4 Considerations

Visit our NEW store coming to The Village at Stone Oak in San Antonio, TX this MONTH!

Would you like to grow with us??

Buy a Franchise

We're having a great day at Shear Madness, we hope you have one too!

Topics: franchise buyers, buying a franchise, career change, reinvent your career

Changing Careers : What Franchise Buyers Want

Posted by Emily Drake on Mon, Apr 23, 2012 @ 15:04 PM

Income, Lifestyle, Brand & Equity

boyandgirlI recently attended a webinar hosted by Lisa Powell, the Marketing Resource Manager for The Entrepreneur's Source. “In a Commoditized World Make Your Brand Stand Out!” Over 30 proffessionals attended the meeting and discussed the importance of Brand Differentiation in today's franchise market. When it comes to attracting, engaging, and closing sales, having a substantial and attractive Brand becomes imperative. There also was discussion of the challenges many franchisors encounter when it comes to gathering leads, making sales, and standing out among your competition. Let's face it, most every potential franchisee has already heard all about 'developed systems, excellent training, and benefts of the model'. So we are left asking, what DO today's potential franchise buyers want? Many franchise prospects now are making a career shift, perhaps because the job they've worked their entire lives no longer exists or is no longer fulfilling. Many franchise prospects are looking for a career that can meet their income and lifestyle objectives in a fresh and sustainable way. Most importantly, they are looking for a business that fits in with their lives, families, personal and professional goals.

In short, franchise prospects really want to buy an improved lifestyle & income. They are also looking for a strong Brand & Equity or value. How is this kind of sale accomplished you ask? We answer, most importantly you want to:

1. Define what sets your Brand apart from your competitors.

2. Explain how customers are recieving your product or services.

3. Become a expert in your field and a resource for information.

Transparency & Trust is paramount to attracting, engaging, and closing sales in this internet age. People are researching business models for themselves and finding information online. This is where you will intersect with your best prospects.

The differentiation between commoditization and value is in your BRAND DNA.

Roger Griffin writes a fantastic article on Brand development you can view here  3 Keys to Successful Brand Development: Segmentation, Differentiation & Positioning

To read more about what potential franchisees are looking for you can download our FREE whitepaper here!


Topics: franchise buyers, buying a franchise, career change