Keeping it ‘On Point’: Beauty Bar Lessons

Vicki Howard

It’s been a year since we opened On Point Beauty Bar and what a ride it’s been! We have learned so much as a result of opening and operating a:

brick and mortar  black and brown women owned business! 

For some of you reading this, you may know the below - however, coming from a corporate setting and having gone to college - we realized there were things you find out only through trial, error, Google and late notices!  

1) When you open a business, there is “Use Tax,” where you must set up the tax of the tangible property you purchased to run your business up to the full amount of the City and State where you operate. Specifically, this tax is assessed on the items you purchase to open and run your business regardless of where they were purchased. Meaning, if you bought something from a store in another state or country (i.e. art, equipment, displays) and didn’t have to pay tax, or you were charged a tax less than what is charged in Colorado and the City of Denver, you have to itemize each item, and true up the tax and send the difference to the City of Denver. 

2) Not all clients are worthy of your services. Progressive Insurance was on to something when they explained that not all customers are meant to be their customer and gave referrals. An example of this is when a customer makes an appointment and regularly cancels on short notice, or worse no notice. That customer has prevented your business and your employee the opportunity to earn their livelihood. It’s a sign of gross disrespect, as everyone’s time is valuable. Yes, things happen, and a client may be running late, or the stylist may be running late, thus communication is key. The key to a sustainable business is building mutually respectful relationships between the business and it’s clients.

3) It is imperative to have business accounts. Pretty logical right? One would be surprised that this is not the norm for so many small businesses and is the beginning of their demise if it’s not rectified. From a business bank account to business Amazon account and business credit cards, keeping your business transactions separate is key to ensuring you are fully in control of your finances and can accurately measure the profitability of your business. It’s the only way to make operating improvements. By having your finances in order, you can apply for grants and loans and it makes filing taxes so much easier.  

4) Learning to pivot is vital. Let’s face it, COVID threw a wrench in business plans. Therefore, learning to continuously improve services, tools, systems, and communication is important. We run all aspects of the business, we are the CEO, CFO, CMO, and COO.  Finding efficiencies and allocating time every day towards business improvements is how we work towards continuous process improvements.

5) Reinvestment and maintenance in your business is vital to operate. As a business makes money, it is vital to reinvest in your business to maintain equipment, inventory levels, and save for future purchases such as new tools for the latest trends, techniques, and/or treatments. Keeping your business current allows you to meet your target market’s needs and wants. When a business doesn’t keep their key equipment up to date to provide their service, that’s a sign that the business is deteriorating.

6) Not all businesses are meant to survive. Many businesses went under during COVID, and if a business doesn’t have money coming in, it is unable to keep up with the burden of business ownership. And no one, not even your clients want your business to be a burden. The hardest part is to know when to exit. Not keeping up with finances, not reinvesting in equipment, not knowing when or how to pivot, not filing paperwork such as taxes or other required documentation and losing passion in the business are all tell-tale signs to develop an exit strategy. An exit strategy can include the opportunity for partnership, merger, or acquisition which enables the business legacy to continue through the infusion of cash and new strategies. The takeaway here is – running a business is hard, so be open to new ideas!

Here’s to the New Year of furthering our passion to provide the highest level of services at our beauty bar and to thrive as we go into year two!  Thank you for your continued support and come see us for your hair and beauty needs!

On Point Beauty Bar is a black and brown women owned salon, specializing in precision haircuts, silk press, blow-outs, extensions, wigs and esthetician services. To make an appointment:  https://www.fivepointsbeautybar.com/ ; 303-955-4233.