Thrive Business Services Co-Founder Randi Rose offers tips for planning what’s next after salon ownership

As a successful self-care business owner, you’ve probably spent years figuring out how to make money. You’ve grown your client base, curated a specific set of services, and fostered an environment that keeps your regulars coming back. That’s amazing…but it isn’t your ultimate goal. Eventually, you’ll want to retire, travel, or learn that skill you’ve always wanted to learn — or at least you’ll want the option to. 

In episode 10 of our podcast, “Last Client of the Day,” guest Randi Rose, co-founder of Thrive Business Services, discusses how to plan for your financial future as a self-care business owner. She points out the importance of asking yourself the right questions about your future and understanding your current financial numbers. She also explains why the journey to retirement should not be lonely and why it’s important to partner with the right experts.

Start at the end

When carving out your financial future, it’s a good idea to figure out your ultimate goal or, as Randi puts it, “start with the end in mind.” Some of the questions you should consider are — Do you know what you want your retirement to look like? Do you know how much that is going to cost? What’s your exit strategy? Are you going to sell to your employees? Do you have children you want to sell to? Do they have the same skill set as you? 

You want to ask yourself as many questions as you can to figure out what you really want. This allows you to dream big and test what’s possible once you’ve transitioned from behind the chair. Asking these questions also allows you to challenge those dreams to build a legacy with a higher chance of success.

Partner with the right experts 

If bringing that dream to fruition seems a little daunting, that’s okay! Randi notes that it’s common for self-care business owners to master bringing in money but not feel comfortable discussing or analyzing where it goes. The good news is you weren’t meant to accomplish your financial endgame on your own. 

When you partner with the right financial/business experts, you get someone who will help you understand your numbers, which is the first step toward achieving those aforementioned ultimate goals. You’ll get a clearer picture of where your money is going and if it’s going to the right places. The expert will also help you understand your market value or how much you could sell your business for at that particular moment. 

Now, it is important to understand why we’re using the word “partner” here instead of simply using the word “hire.” There’s a temptation to hire someone, give them your financial records, and then leave them to figure everything out. Randi explains why that’s dangerous. “If you don’t have transparency and you’re just delegating something, how do you know that who you’ve delegated to is trustworthy? How do you know if there is some action, strategy, or pivot that you need to make?” 

Working in tandem with your financial experts allows them to educate you! The financial expert is able to dispel you of certain notions you have about your businesses. Randi provided a great example of how one of her clients made a net profit of 9% each month and then, for some reason, it dropped to 4%. With the right expert and reporting software, when there’s a significant financial change to your business, you can figure out what happened instead of freaking out about it.

Remember, while experts provide recommendations, it will ultimately be you, the business owner, who makes the decision. When you understand the “why” behind certain recommendations, you can make decisions that improve your current business and help you prepare for the financial future you want. 

Be prepared to pivot

On the path to selling and/or retirement, you may have to be prepared to make some changes. This could include changes in services, products, or your tools. You may even have to make changes for your staff in terms of payment structure or incentives. You want to ensure that your business is at its highest market value when you sell it.

A good example of a potential pivot is the evolution of front desk services. Right now, many self-care businesses are working to turn their front desk from a cost center to a profit center. At Boulevard we’re seeing certain clients inject their front desk staff into their sales efforts. There are even some businesses where, after a client has completed a certain service, someone from the front desk will replace the care provider to discuss similar packages that may be in tune with what that client enjoyed. 

When it’s time to pivot, this is another great opportunity to lean on your financial or business expert. In the same way many self-care businesses share techniques for how to do hair, nails, eyebrows, and more, business owners usually have the same questions or problems when it comes to their financial future. You’ll find that the right partner, especially someone who specializes in your industry, will be able to provide insightful recommendations because they’ve likely been asked the same questions before.

Constantly moving forward

Preparing for retirement “doesn’t have to happen all at once,” says Randi. The truth is, for most successful self-care business owners, it will be a decades-long process that has many highs and lows. Keep your retirement goal in view, accept that the road may not be linear, and be prepared for those changes. Once you've reached retirement or you’ve sold your business, you’ll have hopefully achieved all your financial goals and left a legacy you can be proud of.