Recent Articles

Service

The service industry ranges from medical care to professional services. Its production is related to man hours and not the sale or production of widgets.

P&L Statement – Best Format for Salons

02/01/2017

An owner of a hair salon needs a well organized and properly formatted profit and loss statement (income statement) to properly evaluate performance.   There are multiple presentation formats used in the service industry, but after 21 years of [...]

Retaining Stylists In The Hair Industry

12/05/2015

A good question was posed by a former client about how to solve a problem in the service industry. It is the revolving door of stylists in the salon industry. This constant movement of stylists from one salon to another is actually bad business. So [...]

Team Based Pay in the Hair Salon Industry – A Critique

06/21/2015

Team based pay in the hair salon industry is the newest solution for compensating employees and increasing the overall performance of a salon.  IT WILL NOT WORK.  This article is a critique of this program and provides several reasons why this [...]

Carpet Cleaning Service – Margins and Expenses

03/27/2015

A very common small business in the service industry is the carpet cleaner.  Many owners of such businesses desire to know the margins and of course the associated operating expenses involved.  This article addresses these two questions and I’ll [...]

Booth Rental – Legal and IRS Compliance

01/13/2015

A long standing custom in the hair salon industry is owners of salons leasing out booths to hair stylists.  If not properly documented and exercised appropriately, the owner opens the door for many legal issues.  Booth rental is legal in many [...]

Information Technology – Economic Forces at Work

12/09/2014

Have you ever wondered why technology is so expensive?  Why does the technology repairman charge more per hour than what many attorneys charge?  Why does it feel like you get nickeled and dimed to death with technology costs?   There are many [...]

Hair Stylist Compensation Model

04/06/2014

One of the most fascinating business models is the hair salon industry.  Many salons are poorly managed and rarely generate adequate profits.  To make matters worse, the stylists are like professional sports players.  One week they are playing [...]

The True Cost of Labor

01/01/2013

I laugh at the definition of labor costs because in my opinion the so called experts only have it half right.  Labor costs are more than just gross wages and benefits.  It should include the costs of insurance, employer taxation, human resources [...]
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