In this episode, Brett shares his tips for how to develop and implement a profit-first mentality in your hair salon business.
Throughout these series of episodes, you’re likely to hear me make reference to a book called Profit First. Mike Michalowicz wrote this book in 2014, and it is absolutely one of my all-time favorite books.
I love this book because it offers such a simple, yet counterintuitive cash management system that helps small business owners like you and I break out of any kind of cash doom spiral and achieve profitability quickly. In fact, I love this book so much that I actually use it as the basis for our individual clients’ cash management, too—not just for businesses.
In addition, it hammers into you the mindset of running your hair salon business, so that you’re actually taking a profit first—then planning for your expenses and liabilities and everything else you need to take care of. So, it’s a totally different mindset from how most hair salon owners operate, where they pay everybody else first. Then if there’s anything left, they get to keep that and consider it a profit.
When you develop a profit-first mentality, you in turn feel less overwhelmed and less burned out in your hair salon.
Ultimately, you can help more people, which is the goal of having your hair salon in the first place. So, for today’s episode, I’m going to give you my interpretation on how to develop and implement a profit-first mentality within your hair salon.
[02:43] What does it mean to develop a profit-first mentality?
[05:57] Why “profit first” is like Neapolitan ice cream.
[07:15] How to set up your five accounts as you implement a profit-first system in your hair salon.
[08:53] The percentages Brett uses to allocate his revenue across his five accounts.
[12:47] Why your current mindset may be holding you back when it comes to growing your hair salon business.
Looking for more tips for how to grow, scale, and ultimately sell your hair salon business? Check out our other Unchained From the Chair podcast episodes.