Beyond The Bottom Line: The Cost – Human And Financial – Of Burnout

Salon burnout happens to others, not to you, right? Wrong. Burnout can happen to anyone who identifies so strongly with work that they lack balance between work and personal life, says The Resilient Hairdresser, Hayley Jepson

by CATHERINE | THE COST OF DOING BUSINESS

Burnout for salon owners is an epidemic in our industry and it’s having a massive impact. Many employees sorted out their own burnout by going freelance, but salon owners can’t do that – they worry too much about being responsible for other people’s incomes. And at the moment, they’re not only dealing with appalling trading conditions, they feel like they’re being blamed for all the problems in the industry – no wonder they’re struggling.

There’s a saying in therapy: ‘Anger is sad and scared’s bodyguard’. I think salon owners are scared, and anger feels better than scared. People start looking for others to blame. Some salon owners are blaming freelancers for everything; others are blaming the brands putting their products in Boots. People are spending a lot of energy blaming the outside instead of taking that energy and focusing on what they can control.

“When you’re burnt out, completely overwhelmed, you exist in survival mode and lose the skill of imagination, creativity and play – that causes a massive problem.” Hayley Jepson

As a leader, what you bring is what you get. It’s so hard to be the one bouncing around at the top inspiring people all the time, and when that goes, it goes from the whole salon. You might disengage from the team, be less present, and that’s when people start solving their own problems and looking around to see how they can get their needs met for their careers – and leave for a better offer, or to open a shed in their garden.

When you’re burnt out, completely overwhelmed, you exist in survival mode and lose the skill of imagination, creativity and play – that causes a massive problem. You become so focused on payroll, breaking even, that you lose sight of the bigger picture. You’re so consumed with your own problems that you don’t sort of see the bigger problems arising.

And then you get paralysed when it comes to making decisions. You’ve listened to every business podcast, you’ve done every course, you’re reading every self-help book. When you have too many ‘mentors’, you usually end up doing nothing because you have no idea where to start. Eventually, you ask yourself, ‘Do I even want to do this anymore?’, and then you’ve got one foot out the door paralysing and everything becomes very half-hearted. You’re not really in it – your business.”

Time to reset

You might just need a break – a week off, a change of scenery, and a bit of peace and quiet so that you can start thinking clearly. Ask yourself, ‘What can I take off my plate – at home and in the salon?’ Trying to do everything yourself could be one of the reasons you’re drowning, but ordering coffee, ordering stock, booking staff holidays – that doesn’t have to be you. You need to delegate so that you can put as much energy as possible into thinking about the business and leading your team properly.

Find business inspiration, and not necessarily from within the hair industry. Networking events and groups in your local area give you the opportunity to talk to other business owners – ones who are looking to improve not just the moaners. It’s important to find people to talk to who understand.

“To tackle burnout, you must first decide: are you in or are you out? Because if you’ve got one foot out the door of the business, it just won’t work. You’ve got to make sure that you create the brain space and the physical time to work on your business” – Hayley Jepson

“To tackle burnout, you must first decide: are you in or are you out? Because if you’ve got one foot out the door of the business, it just won’t work. You’ve got to make sure that you create the brain space and the physical time to work on your business.” Hayley Jepson

Have one-to-ones with all your team and ask for their ideas. Don’t do a big staff meeting, no one talks in them. Sit down with everyone individually and explain, ‘I’m really interested in what you’ve got to say’. But be careful, because what’s really demotivating for a team is to be asked for ideas constantly, and then they’re never implemented.

Finally, it’s important that business owners make time for life outside of work, or it will become a drudge and overwhelming. Set boundaries about your life. Allocate a set time for working on the business. The vision of the business must be you; you can’t employ your manager or expect your team to do the vision. Stay in your zone of genius.”

Employers Get Ready: Carers And New Parents Now Have More Protection, Thanks To New Employment Laws

Here’s the lowdown on what’s changed.

by CATHERINE | THE COST OF DOING BUSINESS

New redundancy protections for pregnant women and new parents
Previously, where a redundancy situation arose when an employee was on maternity, adoption or shared paternity leave, the employer was required to offer the employee a suitable alternative vacancy where one was available. That protection has now been extended further so that it will also apply during pregnancy and after the period of leave. The redundancy protection during pregnancy will start when an employee tells their employer about the pregnancy. If the pregnancy ends before the employee becomes entitled to statutory maternity leave, the protected period ends two weeks after the end of the pregnancy.

After returning from maternity leave, employees will continue to be protected up until 18 months after the expected week of childbirth or the date of birth if the employer has been informed of it. Similarly, for those who have taken adoption leave, they will have protection during the period of leave and when they return to work for up to 18 months after the placement of the child. Employees who take six or more consecutive weeks of shared parental leave will also be protected during their leave and after it for a period of up to 18 months after the date of birth of the child.

Increased flexibility in paternity leave
Since April this year, the rules around paternity leave have become more flexible. The father or partner can now divide their two-week paternity leave entitlement into two separate one-week periods, as opposed to the previous requirement of taking it either as a single week or two consecutive weeks. In addition, they will be able to take the two week paternity leave at any time in the first year after birth (rather than having to take it in the 56 days following birth), and will only need to give 28 days’ notice of their intention to take paternity leave

New right to carers leave
This legislation allows employees who are unpaid carers up to five additional days unpaid leave per year to support them with their caring responsibilities. To be entitled to benefit from the Regulations, employees need to be providing ‘long–term care’ and employees will need to notify their employer of plans to take carer’s leave in advance where possible.

Neo-natal care
Previously there was no provision for parents whose babies needed specialist neonatal care and most partners in this position ended up using their two weeks of parental leave to stay at the hospital followed by being on sick leave if the situation continued. Now, each parent can take up to 12 weeks of paid leave, to spend time with their premature or sick baby who is receiving neonatal care in a hospital or other agreed care setting. Neonatal care leave will be a “day one” right, in addition to maternity and paternity leave

Anyone In The Room Got ‘Price Increase Wobbles’?

Many hairdressers still think raising their prices will drive loyal clients away. It won’t, says Boss Your Salon’s Maddi Cook. Not when you raise your prices for legitimate reasons.

by CATHERINE | THE COST OF DOING BUSINESS

In an industry that thrives on trends and innovation, there’s one area that we need to leave in the Naughties, along with the pouffes and pobs: low-balling our pricing. And I know, I know, you’d likely rather reconcile your accounts and clean your trolley wheels than tell your clients that their cuts and colours are going up (especially lovely Doris, who’s been coming to you since time began). But hear me out… As someone who’s taught pricing strategy and money mindset to over 20,000 of you lovely lot, I’ve heard it all when it comes to the ‘price increase wobbles’. 

Pull up a proverbial chair as I share five reasons why it’s time to get your head out of the sand when it comes to raising your prices.

I remember doing ‘competitor research’ when I was first setting up. This highly scientific exercise consisted of sending my family members into local salons to grab paper price lists before writing them all down on a bit of paper and plonking myself somewhere in the region of near-the-bottom-but-not the-actual-cheapest, in a bid to seem attractively competitive. 

Cue, a revolving door of salon-hopping bargain hunters, who all seemed to want their hair done at 8pm on Sunday, for less than what “her down the road” is charging, and not to worry, they would definitely pay next week when their wages came in. 

2. The cost to do business is rising rapidly.

First of all, there’s stock costs, where between a post-Covid hangover, Brexit and the rising costs of production, wages and energy, it’s understandable that the cost of products keeps creeping up. But the same also applies in-house to your own business, especially those of you who are salon owners with employees. 

From tubes of tint to brews, loo rolls and keeping the place warm, almost every cost you have will have risen in the last six months alone. 

If you’re like me and your mortgage came off its fixed rate, your biggest bill shot up overnight with nothing to show for it. The same can be said for energy costs at home, general household bills and running costs, plus the price of your day-to-day essentials, like food shopping and fuel.

The Retail Price Index (RPI), which measures inflation, shows us that £50 in 2014 should be £75 in today’s money. It’s crucial that you don’t just factor in your business costs but also consider what you need to have left over in your pocket, and how far that will take you in today’s economy. 

Every single day you get more experienced, and you sure as heck contribute to your company’s success (in fact, for most of you there wouldn’t be a company, if it wasn’t for the graft you put in). 

Book a meeting in with your gaffer (ie, you) and put together a compelling pitch as to why you deserve a juicy pay rise. Don’t be the worst boss you’ve ever had! 

Think about how each of these five points are showing up for you, and if the maths isn’t maths–ing, it’s time for a price increase. 

We Asked 100 Hairdressing Business Owners: What Keeps You Awake At Night? And our survey said…

We asked 100 business owners…

by CATHERINE | THE COST OF DOING BUSINESS

We know business is tough. But which part is the toughest? Creative HEAD asked 100 hairdressing business owners to share what’s been most troublesome for them over the past 12 months and whether those challenges have affected their future plans. And the results are in…

What is most problematic to you when it comes to the cost of running your business?

9%​       High energy costs

30%     ​Rising employment costs

44%​     Business taxes (eg, VAT, Corporation Tax)

1%​       Property costs

16%     ​Rising production costs

Which of these costs should government prioritise to help your business?

18%​      Energy costs

61%​      Business taxes

21%​      Employment taxes

Which of these tax reforms would most help your business?

76%​      Reduction in VAT

5%​        Reduction if Corporation Tax

19%​      Simplifying the tax system

Did you raise your prices in the last 12 months?

89%        ​Yes

11%​        No

If yes, do you plan to raise them again in the coming months?

56%​        Yes

44%        ​No

If no, do you plan to raise to raise your prices in the coming months?

54%        ​Yes

46%        ​No

The National Minimum Wage has risen this year by 14.8% to £8.60 for those aged 18 to 20, while the National Living Wage rose by 9.8% to £11.44 and now includes those aged 21 or over. Does this mean you will:

Hire fewer apprentices

69%        ​Yes

31%​        No

Stop hiring older apprentices

63%​        Yes

37%​        No

Do you think your profit will increase this year?

32%​        Yes

68%​        No

If yes, will it go up by more than 10%?

42%​        Yes

58%​        No

 If no, do you think you will break even?

58%​        Yes

6%​           No

36%         ​I think I will make a loss this year

 Do you feel optimistic about your business in 2024?

65%​        Yes

35%​        No

“The Goals I Set Now For Electric Are Very Different To The Ones I Set At The Beginning. You Have To Stay Fresh”

Mark Woolley’s Electric empire spans salons, professional products, a private members’ club and events – and there’s even more to come.

by CATHERINE | THE COST OF DOING BUSINESS

What made you decide you wanted to set up your own business?

Even when I was a young kid, my aim was to do a creative job where I could own and run my own business around it. When I met the guys from Saks, I realised I could do this within hairdressing. Luckily, I fell in love with doing hair straight away and by 1996 I was the owner of my first Saks franchise salon. Over the years, I continued to feel more attached to the creative side of hairdressing, as opposed to the business model, and I increasingly felt like I wanted to build my own brand. In 2005 I took the plunge, left Saks and opened my own independent salon.

The name – Electric. How did this come about?

The word Electric describes the energy around everything we do. Originally it was describing the atmosphere in our salons, where a client would meet somebody very accomplished, but this person would be warm, welcoming and friendly. We would also play great music, serve great drinks and we’ve always had a very positive team, and that makes the atmosphere. It was important to me that my business wasn’t named after me. I wanted it to be democratic.

What was your goal back then? What did you set out to do differently?

The goal was to establish a cool, independent brand. In fact, I had already opened a studio and called it Electric Studio while I was still at Saks, so the immediate goal was to build that up and to be honest, a product line was always in my mind from the outset. In terms of building Electric, I have always looked outside of the industry for inspiration – music, art, fashion, chefs. They all mix business with creativity and how they develop their personal brand is incredible. The concept of building a community was inspired by Nick Jones’s members’ club Soho House; how to create a hub around a product line, that definitely came from Michael Gordon’s House of Bumble – it always blew my mind how he had these incredible hairdressers, like Howard McLaren, Garren and Jimmy Paul working there, using his products. And Anthony Mascolo has always injected excitement into the industry, whether through his photography with Toni&Guy or the incredible shows he delivered with TIGI. I set myself goals when I launched Electric, and I religiously set new goals every year to keep improving and also to have something for me and my team to aim for. The goals I set for myself now are very different to the ones I set at the beginning. You’ve got to stay fresh.

Was there a specific moment when you felt you’d achieved success in business?

I don’t think I’ve got there yet. There have been a few things we’ve celebrated along the way: the first salon, the launch of Electric products, the opening of Electric Studio, launching the brand in the US, opening Electric Space, buying Falmer Court… But it still feels like there’s so much more to do and compared with the people I’ve admired along the way – Anthony Mascolo, Michael Gordon and Nick Jones – we are not even out of the starting blocks.

What’s the biggest risk you’ve taken in your business?

[Laughs] My latest project!

Have you always enjoyed your business, or have there been times when it’s caused you sleepless nights?

I’ve been genuinely frightened a few times, but I always managed to sleep. I think there needs to be a bit of fear because that’s what compels you to make the decisions you need to make. As I’ve got older, I realise I’m at my best when I’m on my toes.

In business, what do you believe is your greatest strength?

People. I like working with people and seeing them develop. I believe everyone who works for Electric truly feels part of something and we are working on it together.

Anything you wish you’d done differently?

I’ve made plenty of f**k ups, but I don’t regret anything. It might sound like a cliché, but the important thing is to learn from your mistakes.

What’s next for Electric?

I want to build on everything we have started building. I want to grow Electric in North America. I want to open Electric Space in New York. I believe Electric products can become a global brand. I want to push this as far as we can.

How do you relax away from the business?

A real mix of things, from spending time with my family to painting. I really love art and I’ve produced it for as long as I can remember. I like staying fit, so you’ll often see me going for a run in the morning and hitting the boxing gym. I love music, I love classic cars and I feel lucky that I also love most of what I do for my job, like cutting hair and creating imagery. There’s nothing more satisfying than feeling I’m building the brand.

And finally, is it too early to think about succession plans for Electric? Who might be next in line to take up the helm?

The great thing about Electric being a brand is that other people can be successful within it. In lots of ways it’s a family business, with members of my own family involved, but some of my team that have worked with me for years are part of that family too, and I think we can continue to grow Electric long into the future. I often get asked, What is my exit plan? The honest answer is, I don’t have one.

ELECTRIC SPACE

A central London members’ club for creative and arts professionals, where hairdressing fuses with fashion and music. Alongside 30 workstations and VIP spaces, members have access to monthly education seminars, business networking events, a creative studio for shooting content and a private cinema and screening room, as well as a fully licensed bar, retail store and on-site concierge. Electric Space is also increasingly used as an event space by brands such as ASOS, Adidas, Sony Music, Google and Estée Lauder.

“This is our vision for the future of hairdressing – a space for collaboration, leisure and work. Here, freelance hairdressers can create collections, shoot images and film, teach courses and hold seminars, all while networking with other members who work in PR, advertising and photography.”

ELECTRIC SALONS

Brighton, Reading, London (within Electric Space)

Electric has had salons since 2005, and today you’ll find 70+ staff working across them, all fully employed.

“We believe in training our own people in our own salons to build their careers. All my staff are fully employed, though we offer more flexibility in working hours than we used to. That model works. We believe in it and are fully committed to it.”

ELECTRIC PRODUCTS

Launched in 2010 with ethical, sustainable, all-British formulations created by Mark and his team of chemists, Electric products are stocked in hundreds of salons and used by some of the world’s most influential stylists. Look out for a major upgrade in autumn this year, with a brand-new product line-up, complete with innovative packaging design created by independent artists.

“We’ve made it our mission to produce products that perform to the needs of elite professionals using ingredients and raw materials sourced by ourselves in the UK – and, indeed, grown by us at Falmer Court. We have over 700 stockists in the US, 120 in the UK, and you’ll see both of those numbers grow in the months to come.”

FALMER COURT

Electric’s HQ, complete with development lab for the product line, but also a unique venue for events ranging from music gigs and classic car rallies to weddings. Falmer Court also plays host to Electric’s Global Congress, a three-day extravaganza of education and entertainment for the #ElectricFamily, culminating in an early-morning dip in the English Channel at Brighton beach!

“My home. It’s where we develop the products and grow some of the ingredients and where we hold events in the Great Thatched Barn. Events are part of the Electric DNA now. We’ve always evolved, but keep the same goal of exciting our people and our community.”