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Profit is Not a Dirty Word!

There is a widespread misunderstanding by many hairdressers why a business needs to make a profit.

Many hairdressers do not understand the business  need for profit in order that a business can stay in business and save jobs.

Sadly many hairdressers think that owners are greedy.

I am writing this blog post to help bridge the gap between hairdressers and management to better understand why a business has to be profitable to survive and prosper in order to save jobs.

How the owner dare make a profit off of me. Salon owners are greedy. Salon Owners are rich. Why should the owner keep half of what I earn? Salon owners drive around in fancy cars. Salon owners use me to make money.

These some of the comments  I read in various chat rooms.

Sadly comments like these are rampant within the beauty industry. Perhaps these are some of the reasons we have so much turnover within our profession.
I can assure you most salon owners are not rich. It usually consumes a lot of time on the weekends as well.  Many salon owners sacrifice valuable time with their family. Most salon owners work behind the chair 10-12 hours a day, they are usually the first to be at work and last to leave , just to pay their overhead. Sadly far too many salons are struggling or going out of business. I am writing this article to help hairdressers better understand how difficult it is to own a business.
Without profits there are no jobs, no job stability, no business growth and stability, no money for advertising, no opportunities for ongoing education, or a benefits package.
We are fortunate in that the demand for hairdressers will continue to grow. A truly educated professional will never be out of a job, once you create a demand for your services.
Many salon owners invest in many instances their life’s savings to open a new business,  they  take financial risks to go into business, they have to worry about the risks and financial obligations when committing to a lease, paying rent whether they are busy or not.

They have to pay employment taxes, book keeper, hiring people, advertising expenses, workers comp, licenses, fees, sacrifice time utilities etc. This doesn’t account for the stress, worry, and frustration of owning a business and the sacrifices they and their family endures. The list goes on and on. If the business fails,  it is difficult to start over.

Hairdressers can always get another job,starting over again as a salon owner is extremely difficult.

 

Where were these  negative attitudes  about salon owners formed? There is a great need to educate our young people to better understand the business aspect of salon ownership and why a salon’s profitability is so critical for both owner and staff. Sadly salons are going out of business in record numbers.

Many people choose to not to go into business because of the many sacrifices, especially in today’s tough and uncertain economy.
These entrepreneurs and risk are takers who should be applauded, for their sacrifices and creating jobs and in many instances provide education as mentors. And if the salon  is fortunate to make a profit, they deserve it, and should be rewarded for their will to risk at being a salon owner.

Everybody gains when the profit and growth of the salon is a reality.
Some day you may want to own your own business, if you do,do so in an honest and ethical manner, what goes around comes around.
As more and more salons fail, be hopeful and thankful that your salon is profitable, to insure your job security. Wth profits, owners will be able to offer incentives, provide education, and provide a benefits package. A well manged salon will prosper.

The grass is greener syndrome is not always greener in another salon.
It is my wish this article will help hairdressers better understand why a business that is profitable will be in your best interests. We need each other more than ever.

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