Strategies and Resources for Financial Stability

In changing tides, resilience and proactivity are key. Summit Salon Business Center founder, Michael Cole, hosted an inspiring Facebook Live training for salon professionals to help strategize during times of financial uncertainty. 

His motivational advice for Solapreneurs will help you to de-stress and overcome our current challenging landscape stronger and more prepared than ever before.

His message? You are a warrior. Let’s come out of this thing ready to thrive!

Before diving in, he wanted to remind our community of a previous webinar he hosted for Sola where he taught his 5 golden rules to fast track to wealth.  

The 5 rules are:

1. Make more money - raise your fuel
2. Spend less - lower your burn rate
3. Nuke debt - reduce your debt load
4. Save the rest - build your reserve
5. Enjoy your nest - live on your eggs 

And although our economy has recently seen a dramatic shift, these lessons still hold true. However, he gave them a relevant spin to apply to our current economic crisis. 

1. Find more money - raise your fuel
2. Spend less - lower your burn rate
3. Short-term debt - manage your debt load
4. Tap your nest - use your reserve 

1. Find more money: Raise your fuel ⛽️

Tap into these resources to secure additional sources of cash flow while you aren't able to receive your usual income:

• Small Business Associate (SBA) has various loan programs: www.sba.gov 
• The SBA also has set up Economic Injury Disaster Loans due to COVID-19: www.sba.gov/disaster
• Female business owners can also visit www.sba.gov/wasbready or write to  wasb@sba.gov
• Check your state’s Department of Community and Economic Development Business Resource office. Many states have assistance programs in place for small business owners. 
• United Way COVID-19 Economic Relief Fund: 866-211-9666
• Visit summitsalon.com and click on "Get Prepared" for a list of free resources that can guide you to further financial resources.  
• Talk to your bank for lines of credit

2. Spend less: Lower your burn rate 🔥

• One dollar saved is one dollar earned
• Redo your budget 
• We often unconsciously spend money. Look to areas where you can eliminate unnecessary expenses (app subscriptions, auto-orders, etc.).

3. Short term debt: Manage your debt load 💳

• It is ok to take on some short-term debt during a crisis. But see it as that - short-term. Don't make rash decisions that will impact you for years to come.
• It's ok to put some necessary expenses on a credit card, but don't buy "want" items that you can't afford. This will turn your short-term debt into a much longer financial burden.

4. Tap your nest: Use your reserve 💸

• Do not be afraid to tap your nest egg.
• If available to you, tap into your savings account to subsidize yourself for the time being. Keep track of what you take out of savings to help you make up for it when you are back to earning a steady income. 
• If you made sacrifices in the past to have a nice cushion, you did so for events like we are in right now. Do not stress for using your emergency fund if you have one. 

Remember, you will not need to work hard to get your clients to return once the quarantine ends. In fact, they are just as eager and in need of the salon as you are in need of them in your chair. As soon as the time is right, they will likely be clamoring to fill your books. However, for now, it is all about staying in the game - doing what it takes to get over the hump and always keeping the faith that the storm will pass and there is a rainbow waiting for you (hopefully a nice pot of gold). 

Although some sectors of the economy may struggle to find their way back following a financial disruption, haircare and beauty services will survive a recession due to genuine demand. In fact, studies have shown that during times of recession, beauty products and services even see an increase due to the desire to help people feel better about themselves when faced with unstable circumstances. 

On the other side of the uncertainty, one thing is for certain - we are ALL going to need a good day at the salon! 

To recap, Michael's main takeaways are: 

1. Be PROACTIVE 
2. Courage is not the absence of fear. Courage is not letting your fear get in the way of being courageous. 
3. You are a WARRIOR! 
4. Stay close to motivated, inspired and empowered people.
5. You will recover and thrive again.
6. We will get through this together.

Michael will not leave us high and dry in our financial futures. He will be back soon for more webinars, advice, and guidance for financial stability and continued Solapreneur freedom. 

Your thriving business is just on the other side of the storm. It is up to you to choose how you are going to weather this thing. Your Sola home team is working around the clock to manage conditions to the best of our ability and provide as many resources to help you creatively and proactively navigate the ever-changing landscape. And the most powerful tool we have is our community and the strength we have when we band together. Together we are #SolaStrong. 

If you missed the Facebook Live and want to watch the full recording, click here.

Stay tuned for more financial advice coming to you soon!