The SBA (Small Business Association) reports that businesses conducting mid-year audits are 83% more likely to secure funding when needed. But in the barbering world, only 11% of barbers (via self or outsource) maintain, accurate up-to-date financials - and there’s no data on how many barbers actually conduct mid-year or annual business audits.
Mid-year is when common people slack or maintain - it’s also when the cream of the crop level up. At this crucial mid-year point, is your barbershop financially f[H]it or are you risking your future growth?
Think of your business as your car sitting in the driveway and business audits as the gas refills, oil changes, tire rotations, etc...To keep it running smoothly, you or a professional need to regularly perform maintenance. You don’t just drive your car and hope the tank magically gets refilled (even though that would be amazing). And if your brakes were screeching so loud that it was heard three blocks down the street, you wouldn’t just rock it out by blasting your stereo hoping the music drowns out the shrieks. No, you'd take it to a shop, allow them to run diagnostics and make critical adjustments. Well - guess what? That's exactly what your barbershop needs right now.
Starbucks, a company that knows a thing or two about consistent service, reviews its sales data weekly. Why? Because data doesn't lie. It can be manipulated to tell a story - but at its core - data doesn’t lie.
In big business it's recognized that three aspects majority of businesses lose money on are taxes, operations and marketing.
Taxes
I know, I know. Taxes are about as exciting as watching paint dry. But here's a statistic that might perk you up: The IRS reports that businesses that engage in mid-year tax planning can reduce their tax liability by up to 85%. That's real money back in your pocket.
Operations
Let's talk efficiency. Toyota's famous for its "lean" manufacturing process, which has helped them reduce waste and increase productivity by up to 30%. Now, you're not building cars, but the principle applies.
How streamlined are your operations? Are you wasting time between appointments? Is your booking system working for you or against you?
Marketing
Your marketing strategy should be tunnel-visioned based on system data. Did you know that Nike adjusts its marketing campaigns quarterly based on performance data? They consistently see a 40% increase quarter-over-quarter in campaign effectiveness as a result. What's the barber equivalent?
Have you set a marketing budget or are you just posting the same reels and videos as every other barber? Or are you just throwing money at social media ads and hoping for the best? I know maybe you're reaching out to influencers who have a large following and trying to tap in their market. Smart – you're in NC tapping into a FL market. It's time to double down on what has been proven time after time to work.
A mid-year business audit isn't just a feel-good exercise. It's a critical business move that can mean the difference between scraping by and thriving. Remember, you're not just cutting hair - you're running a business.
It's time to take a hard look at your barbershop, make the tough decisions and set yourself up for a killer second half of the year. Recently a barber out of Raleigh and I had a great conversation about the information I just told you. He owns three shops and said something that you may be thinking - "I wish I had the time to think about these things and the time to execute these practices."
In response to his comment, we created a Barber Business Audit Checklist. Text "audit" to 888.572.2017 to get started. Don't let another day go by leaving money on the table. The clock's ticking. What are you going to do about it? Your move, boss.
