Don't Go..

Yes I said DON'T go, and I mean it. I was on the phone today with a representative of one of our favorite companies and a dear friend. We always get off track and todays track lead us to your shopping practices and further down the road how some (maybe a lot) of you are not earning a decent living doing nails (or hair or skin - but I think nails is a bigger discussion than hair or skin people). It absolutely saddens me to the core to hear "I just can't afford to go to that class or show this year".

My friend insists that someone, maybe her, should give a business class at the shows and maybe networking days. My response? "A waste of time". 

"Why?" you ask, when so many nail techs obviously have very poor business skills?  To me, its because nail techs are very "creative" people and not business minded. The ones who hold both traits in the positive column do just that, stay in the positive column, every day and every year. Unfortunately, the dual trait holders are a definite minority. The only people who would voluntarily attend such a business class would be the business minded who really don't NEED the class.

Nail Techs are very interested and attracted to shiny things :) Just for example look at the posts counts in the BeautyTech Forums. The posts containing pictures of the latest blinged out nails have not only high reply counts but view counts upwards of 400-500 views. In comparison, someone posted looking for a checklist for opening a new shop got 3 responses and a mere 103 views.

The forums is not the only place I have noticed this phenomenon, I have seen it over and over at the shows, and my networking day is the same way. 10 educators, 50 techs ranging from students to 20+ years doing nails, they ALL wanted to see the bling nails ALL day. At the 2009 Long Island Network Day, I enforced a "No Bling Morning" rule and "Bling It if you Brung It" in the afternoon. Apparently when it is forced upon nail technicians to learn basics or anything other than bling, they not only liked it, they appreciated it and not one single complaint was lodged.

OK so where am I going with this? Simple - I don't care how you do it, but you ALL need to start paying more attention to your bottom line. Read the articles in the magazines that relate to actually RUNNING your business. When you understand how to manage your stock, manage your buying, control your impulse buying, know what bills need to be paid, BUDGET for those very same bills and creatively market your business, you will almost definitely turn a profit.

Look I am not saying EVERYONE will make $1000 a week, but there is no reason almost everyone of you out there can not earn a decent living - MAKE A PROFIT - which will allow you to get MORE education - which will allow you to earn MORE. See the circle here?? :) I hope you do.

So here are a few starters to get you thinking..

• Know how much product and supplies you use in 3-4 months - watch for sales and stock up - but do not over stock.
• Keep an eye on stock weekly so you have time to order anything that expectantly runs low.. so you don't run out having to spend needless time running around town paying a premium locally.
• If you are doing online or mail ordering, again watch for sales, stock up - beware of over stocking, and maximize your order to get the most from the shipping rate. Ordering 1 bottle of polish is NOT an efficient spending habit.
• Get a credit card and checking account that is used ONLY for your business. Many banks and credit card companies give you a report at the end of the year that can not only help you prepare your tax returns, but allow you to see your spending habits throughout the year.
• Reevaluate your cell phone, liability insurance and other monthly/annual expenses every year to see if you can get better pricing.

5 Tips on Budgeting
(from SCORE, America's Small Business Mentors http://www.score.org/5_tips_bp_4.html )

1.  Think of a budget as a useful tool—a written financial plan that helps you set goals and measure progress.
2. Start by coming up with a sales revenue target. Make it your best estimate.
3. Based on past experience, estimate your cost of goods sold (e.g., 70 percent of sales) and subtract it from the sales revenue to come up with your estimated gross margin.
4. Forecast variable expenses (items such as travel and commissions that vary according to the level of sales) and fixed expenses (items like taxes and rent that stay the same, regardless of sales). Subtract these expenses from your gross margin to arrive at your estimated net income (before federal taxes).
5. Break your annual budget into quarters and monitor your progress every three months to detect problems and make corrections.
    

You must develop skills in strategic thinking. Strategic thinking is a process whereby you learn how to make your business vision a reality by developing your abilities in team work, problem solving, and critical thinking. It is also a tool to help you confront change, plan for and make transitions, and envision new possibilities and opportunities. (From US Small Business Administration. Read more... http://www.sba.gov/smallbusinessplanner/manage/forecast/index.html )

10 Quick Tips to Improve Your Small Business
http://sbinformation.about.com/od/bestpractices/qt/bizimprovement.htm

So thats it for this time.. I promise to bring you more.. I;d also love to hear from some of your dual trait people - tell me how you do it, some of your tricks, your success stories, and your failures so I can share with everyone and help everyone gain success in this wonderful field :)