Unchained From the Chair: Recent Episodes
Brett Fellows, CFP®
Go behind the scenes with host Brett Fellows, CFP® as he explores the opportunities and challenges facing salon owners balancing business ownership with personal financial management along the path to financial freedom. Each episode is designed to give you fresh insights and actionable advice so you can take ownership of your financial future and retire on your terms.
Are you ready to exit your hair salon? In this episode, Brett shares 10 key questions you should ask yourself to determine if you're ready to transition away from your salon business.
[04:05] Are you prepared or ready to sell your salon?
[04:25] Do you have your personal, financial, and business goals aligned?
[06:18] Have you created an advisory team?
[07:13] Do you have a contingency plan?
[08:21] Have you completed a business valuation of your salon?
[09:13] Have you considered all of your exit options?
[09:56] Is your transition plan in writing?
[10:57] Have you considered and designed a post-salon life?
[11:58] Do you have a pre-transition value of your assets and some preliminary due diligence underway?
[13:27] Do you have a management succession program?
For more information and resources related to this episode, please visit the show notes.
Stylist and salon owner turned international business coach Nina Tulio shares the lessons she's learned along her entrepreneurial journey.
[09:06] Nina Tulio shares her experience opening her own hair salon in Pennsylvania and the challenges she faced as a salon owner.
[17:29] Brett and Nina discuss the practical and emotional aspects of selling a hair salon.
[22:03] Nina's transformation from hair salon owner and stylist to international business coach.
[33:24] Nina Tulio shares the number-one reason stylists come to her for coaching: pricing.
[44:03] Why going into debt was the low point of Nina's entrepreneurial journey and what she learned from that experience.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares his insights on choosing the right buyer if you're thinking about one day selling your salon business.
For more information and resources related to this episode, please visit the show notes.
Brett interviews Nikke Le, owner of Statements the Salon in Woodbridge, VA; creator of Statements the Academy, a time-tested curriculum that teaches stylists how to become fully booked in lightning speed; and founder of The Statements Project, a salon consultancy company that aims to make education convenient, broad, and affordable for all stylists and salon owners.
In this episode, you'll hear about Nikke's transformation from an inexperienced leader to a visionary businesswoman, her passion for building legacy businesses, and how she extends her knowledge and guidance to others in the industry.
[00:11:51] Nikke Le’s leadership advice based on her experience managing a 6,000-square-foot salon.
[00:20:16] The steps Nikke took to transition into coaching.
[00:26:36] How Nikke sets herself apart as a coach and shapes the client experience.
[00:37:48] Where Nikke sees herself and her business heading over the next 10 years.
[00:41:08] The biggest lessons Nikke has learned during her 36 years in the beauty industry.
[00:50:23] Nikke Le’s definition of success.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares why creating your exit and estate plans can help you chart a course forward and secure your financial future as a salon owner.
For more information and resources related to this episode, please visit the show notes.
Annie Schultz and Ashley Henneman, the dynamic duo behind Manitowoc, Wisconsin’s Luxe Beauty Bar, join Brett to discuss their entrepreneurial journey to become co-owners of a thriving boutique hair salon with eight dedicated stylists.
[07:07] The steps Annie and Ashley took to form their business partnership and create Luxe Beauty Bar.
[10:41] How Luxe Beauty Bar evolved into the thriving boutique salon business it is today.
[17:44] The technology and software Annie and Ashley leverage to systematize their business operations.
[22:01] How Luxe Beauty Bar uses social media to market their salon and stylists.
[24:26] The business decisions that have helped Annie and Ashley grow Luxe Beauty Bar 25-30% annually since it opened its doors.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett explores the benefits of a formal valuation when it comes to your hair salon exit plan.
[03:10] Why any uncertainty about the value of your hair salon can drastically increase your chances of not having the money you need to retire successfully.
[04:12] How a salon valuation can provide you with key benchmarks to increase the value of your salon prior to your exit plan.
[04:39] The advantages and disadvantages of the two most common valuation methods.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett interviews Misty Jayne Harmon, a hairstylist turned money and life coach whose financial transformation story is sure to inspire you.
[00:06:34] The money story that got Misty Jayne Harmon and her husband into $48,000 of debt, and the steps they took to become debt-free in two years.
[00:12:21] Why becoming more intentional about their spending and setting clear money goals was crucial for Misty Jayne and her husband to take control of their financial destiny.
[00:17:26] The unexpected series of events that led to Misty Jayne becoming a life and money coach.
[00:21:56] Where hairstylists can find and learn from Misty Jayne.
[00:27:18] How Misty Jayne’s money story has evolved over time, and the direction she’d like to take her business in moving forward.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett dismantles the four most common objections he hears from hair salon owners when it comes to exit planning:
- The salon isn’t worth enough to meet my financial needs right now. When it is, I’ll start thinking about leaving then.
- If I sell, I’ll have to work for a new owner for years, so I’m not going to do it.
- I don’t need to plan. When the salon is ready, a buyer will find me.
- The salon is my life. I can’t imagine my life without it.
For more information and resources related to this episode, please visit the show notes.
Brett interviews Laura Symons, a salon owner, stylist, educator, coach, and content creator, about her journey from stylist to thriving business owner.
[00:09:11] Why the Covid-19 pandemic was a wake-up call for Laura Symons, which ultimately led her to start her own hair salon business.
[00:13:53] The systems Laura Symons has implemented in her business to streamline operations.
[00:16:48] Laura Symons describes her coaching programs: Glass Ceiling Academy and Micro Salon Experience.
[00:22:21] Why Laura created Beauty Empire Chats, and how it differs from her online courses.
[00:24:33] How Laura Symons manages her time as a business owner and new mom.
[00:31:07] Laura Symons describes two monumental low points in her journey that helped shape who she is today.
[00:34:41] Laura shares who her mentors are and her definition of success.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares a variety of tax planning opportunities hair salon owners can leverage to reduce your lifetime tax burden.
[01:23] Buying a first home and starting a family.
[02:39] Sending a child to college.
[03:22] Exiting your hair salon business.
[03:47] Claiming Social Security benefits.
[04:12] Downsizing to a smaller home.
[05:12] Deducting healthcare expenses.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett explores the importance of tax-wise investing and key strategies hair salon owners can leverage to minimize their lifetime tax bill.
[02:45] The importance of having a tax-wise investment strategy.
[04:46] Choosing your investment holdings.
[06:14] How to minimize your capital gains tax liability if you utilize taxable investment accounts.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares some common tax breaks and strategies hair salon owners can leverage to offset their overall tax liability.
[02:24] The tax breaks associated with saving for retirement.
[04:03] How Health Savings Accounts (HSAs) can help hair salon owners save for future healthcare costs on a tax-advantaged basis.
[05:32] How to get a tax break while saving for educational expenses.
[06:02] The benefits of giving to charity via a donor-advised fund (DAF).
[07:21] Why hair salon owners may need to revisit their estate planning documents in the coming years.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares five habits of 401k millionaires that can help hair salon owners grow their retirement savings and secure their financial future.
[03:00] Demographic trends of 401k millionaires.
[05:26] The importance of starting early when it comes to saving for retirement.
[06:00] Why you should contribute a minimum of 10-15% of your salary to your 401k account.
[09:47] How to avoid leaving “free money” on the table when contributing to an employer-sponsored retirement plan.
[12:40] Investing with your long-term financial goals in mind.
[17:34] What to do with your 401k when you change jobs based on the habits of millionaires.
For more information and resources related to this episode, please visit the show notes.
Brett shares why setting goals as a hair salon owner is crucial—not only for your hair salon business, but also in life.
[04:59] Why reviewing your goals every 90 days changes your relationship with time.
[09:36] How to implement Brett’s 100-quarter goal setting strategy.
[11:51] The advantage of recalibrating every 90 days when it comes to setting goals as a hair salon owner.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett outlines seven essential steps everyone must take before starting a new hair salon business.
[02:09] How much does it cost to open a salon?
[05:17] Alternatives to traditional business loans and popular financing options.
[09:33] The benefits of working with a financial advisor or small business consultant.
[14:58] Finding a way to make your hair salon stand out.
[19:10] Determining your value (and pricing) as a hair salon owner.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares a proven system to help hair salon owners get out - and stay out - of credit card debt.
[02:35] Why it’s so difficult to get out of credit card debt.
[06:09] Six practical tips for paying down your credit card balances and managing debt responsibly.
[11:02] Should you prioritize building your savings or paying down debt?
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares the top five reasons to invest in the stock market if you're a hair salon owner looking to build wealth.
[02:15] The top five reasons hair salon owners may want to invest in the stock market.
[05:50] Why stocks have been a reliable source of long-term growth historically.
[09:11] The importance of maintaining a diversified investment portfolio when it comes to managing risk.
[11:00] How the power of compounding makes it more attractive to invest in the stock market over longer periods.
[15:36] Why it’s impossible to predict the direction of the stock market.
For more information and resources related to this episode, please visit the show notes.
Brett shares why being aware of your emotional biases and keeping them in check is the key to becoming a better investor.
[02:42] Why investors get in their own way.
[04:11] The two primary emotions that tend to motivate investor behavior over the course of a market cycle.
[08:00] Why investing emotionally will keep you from becoming a better investor.
[12:04] How to avoid the pitfalls of investing emotionally.
For more information and resources related to this episode, please visit the show notes.
For most of us, the decision to sell our small business can be one of the most difficult choices we will ever have to make. But leaving your hair salon is inevitable. That’s why every hair salon owner needs an exit plan. In this episode, Brett walks through the key benefits and risks of seller financing the sale of your hair salon business.
[03:01] Boosting your overall payout.
[04:13] Expanding your pool of potential buyers.
[04:51] Communicating confidence in your business by offering seller financing.
[05:28] Closing the sale of your hair salon faster by offering seller financing.
[06:13] Why seller financing ties you to the ongoing performance of the salon.
[07:17] Assuming the credit risk of the buyer in a seller financed deal.
[08:32] Why seller financing gives you less cash up front.
[09:09] The complexities of seller financing your hair salon sale.
For more information and resources related to this episode, please visit the show notes.
Successfully transferring a family business to the next generation is often a challenge—despite the opportunity for ongoing job security and family legacy. In this episode, Brett shares five factors you should consider before transferring your hair salon business to a family member.
[02:03] How ready are you to give up control of your hair salon business?
[03:36] How ready is the next generation to take over the family hair salon business?
[04:52] Why family dynamics matter when it comes to transferring your hair salon business to a family member.
[05:43] What’s your long-term vision for your hair salon?
[06:45] Does transferring your hair salon to a family member align with your financial goals?
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares the financial planning basics he believes all hair salon owners should know. No matter what type of salon owner you are, understanding these concepts can help you overcome the various obstacles and decisions you'll face along your path to financial freedom.
[02:08] Cash flow planning basics.
[07:26] Tax planning basics for hair salon owners.
[11:43] Paying estimated taxes.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares a straightforward roadmap to retirement that hair salon owners can follow to eventually exit your business and retire on your terms.
[03:02] How much money do hair salon owners need to retire comfortably?
[05:16] Retirement account options for self-employed individuals.
[08:20] Planning your exit from your hair salon business.
[10:12] How to determine which exit path makes most sense for you.
[13:26] Transitioning away from your hair salon—assembling your team of advisors.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett provides a framework to help you determine what retiring from your hair salon looks like for you.
[03:12] Why retiring from your hair salon is more than just quitting your job.
[04:01] Three common misconceptions about what retirement is.
[06:02] The potential dark side of retirement.
[07:18] Finding what makes you happy in retirement.
For more information and resources related to this episode, please visit the show notes.
If tax season tends to stress you out, you're not alone. With Tax Day less than a month away, Brett shares his tips for making the most of your tax return this year.
[03:05] Understanding the six sections of your tax return.
[04:43] Maximizing deductions to reduce your taxable income.
[06:32] Determining your tax bracket.
[09:04] Applying tax credits.
[11:16] Reporting payments you made during the tax year.
[12:54] Calculating your quarterly estimated tax payments for next year.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares three financial best practices every hair salon owner should implement in your business.
[03:20] How to pay yourself as a hair salon owner.
[08:07] The importance of sound accounting practices.
[10:45] Why you need a system for paying your taxes.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares his list of basic estate planning documents every hair salon owner should have.
[03:00] Last will and testament.
[04:15] Living will.
[05:20] Durable power of attorney.
[06:27] Healthcare power of attorney, healthcare proxy, or medical power of attorney.
[00:07:14] HIPAA authorization.
[08:06] Revocable living trust.
[11:00] How to create basic estate planning documents.
For more information and resources related to this episode, please visit the show notes.
Brett shares six common themes when it comes to creating your hair salon's profit and loss statements.
[03:33] What it means to trust your people but verify what's going on.
[06:38] Why you don’t want your P&L to fall more than 30 days behind, especially at the end of the year.
[09:00] How inventory purchases can skew the month on your profit and loss statement.
[11:36] Why you should look at your monthly trends and not just your year to date.
[13:00] The insights your P&L statement provides into your hair salon business.
[14:40] Why your profit and loss will be skewed some months more so than others.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares his rules of thumb for saving for retirement at any age--and how to catch up if you're behind.
[03:22] Rules of thumb for saving for retirement at ages 30 through 65.
[05:58] The power of compounding and why it helps to start saving as early as possible.
[07:45] Why hair salon owners should target a 15% savings rate.
[09:56] When to start taking Social Security benefits to maximize your retirement income.
[13:06] How to catch up if you’re behind on saving for retirement.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares his tips for building a hair salon business you can sell and why these attributes are important for all hair salon owners to adopt--even if you have no plans to sell your business right now.
[02:51] A checklist for building a hair salon business you can sell one day.
[05:23] Why you shouldn’t obsess over funding.
[07:57] The philosophy behind keeping it simple.
[10:30] Creating consistent cash flow in your hair salon business.
[12:45] Keeping your financial statements clean and current.
[14:22] The importance of investing in your brand and demonstrating growth over time.
[17:58] Why you should be able to fire yourself from your hair salon business.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett digs into what's involved with a Roth conversion, why and when hair salon owners may want to consider one, and some common pitfalls to avoid.
[03:50] What is a Roth conversion, and how does it work?
[07:02] How to determine whether a Roth conversion makes sense for you.
[09:44] Converting to a Roth IRA in a down market.
[14:11] Roth conversions, estate planning, and the SECURE Act.
[15:33] Why hair salon owners may want to consider a mega backdoor Roth.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares preconditions and strategies for creating a sense of ownership among your hair salon team.
[3:08] Critical preconditions for creating a sense of ownership among your hair salon team.
[03:49] The psychology behind ownership and why it creates a special attachment to the business.
[08:49] The three pathways that can lead employees toward a sense of psychological ownership.
[11:42] Why team members fail to feel like owners.
[16:15] The potential costs to hair salon owners for having more owners in your business.
[23:00] Creating synthetic options for ownership.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett provides a refresher course on business structures, and how the structure of your hair salon may affect your taxes in 2022. He also shares his top tips for avoiding common missteps and taking advantage of relevant tax deductions this year.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares four things you can't delegate as a hair salon owner.
[03:18] Why you need to own your hair salon’s strategy.
[06:14] Prioritizing your to-do list.
[09:18] Your hair salon’s organizational chart and structure.
[13:12] Establishing your hair salon’s culture.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett helps hair salon owners decide whether a traditional or Roth IRA makes sense for their retirement savings.
[02:31] What it means to invest in a qualified retirement account.
[04:23] A common rule of thumb when it comes to choosing a traditional or Roth IRA.
[11:19] Why Brett believes a Roth IRA is generally the better option for most hair salon owners.
[17:37] Several counter arguments to the Roth IRA.
[21:35] A common misconception many people have when it comes to retirement accounts and how to avoid making this mistake.
For more information and resources related to this episode, please visit the show notes.
Brett talks all things retirement plans for hair salon owners, including the various options available, how to evaluate cost, and common mistakes to avoid.
[02:47] The typical evolution of retirement plans for hair salon owners.
[07:21] The tax benefits of retirement plans.
[09:44] How to know when you’ve outgrown your retirement plan.
[12:11] What to do if you don’t yet have a retirement plan.
[17:36] What hair salon owners are responsible for when implementing a qualified retirement plan in their business.
[23:34] The two types of retirement plan fiduciaries.
[27:33] What hair salon owners can expect your retirement plan to cost.
For more information and resources related to this episode, please visit the show notes.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares his tips for how to create freedom from your hair salon without actually selling or exiting it.
[00:05:44] How to create freedom earlier in your career.
[00:07:03] Freedom #1: Remove yourself from your salon’s organizational chart altogether.
[00:08:07] Freedom #2: Become a shareholder of your hair salon business.
[00:09:16] Freedom #3: Cash out.
For more information and resources related to this episode, please visit the show notes.
Brett offers an explanation as to why bond prices have fallen during this inflation spike, what options hair salon owners may have to deal with it, and what you can expect moving forward.
[03:09] The relationship between bond prices and inflation.
[04:59] What hair salon owners can do about falling bond prices.
[07:18] What are I-Bonds, and how can you buy them?
[09:20] Understanding the characteristics of I-Bonds.
[12:01] The benefits of I-Bonds.
[16:47] How to use I-Bonds.
For more information and resources related to this episode, please visit the show notes.
In general, there are five reasons hair salons fail. In this episode, Brett shares these pitfalls and how hair salon owners can avoid them.
[05:50] Why lack of clarity is holding you and your hair salon back.
[06:52] The importance of identifying and implementing the right growth strategy.
[09:09] Do you have the right people supporting you, and are they in the right roles?
[11:28] Why systems and processes matter when it comes to growing your hair salon.
[13:00] The real reason most startup hair salons fail.
[17:04] Bonus: How to make a greater impact as your hair salon grows.
For more information and resources related to this episode, please visit the show notes.
In general, hair salon owners have seven options when it comes to exiting their business. In this episode, Brett shares the advantages and disadvantages of each of those exit paths and offers a process hair salon owners can use to choose one for themselves.
[02:32] Five steps for determining the right exit path for yourself.
[04:54] Selling to an insider.
[07:46] Selling your hair salon to a third party.
[12:04] Liquidating your hair salon.
[13:35] Weighing the pros and cons of each exit path versus your goals.
For more information and resources related to this episode, please visit the show notes.
What exactly does inflation mean? How can you deal with it? And when might it end? In this episode, Brett answers your biggest questions about inflation and offers strategies for how hair salon owners can grow in spite of it.
For more information and resources related to this episode, please visit the show notes.
In this episode, Brett shares his tips for how to develop and implement a profit-first mentality in your hair salon business.
[02:43] What does it mean to develop a profit-first mentality?
[05:57] Why “profit first” is like Neapolitan ice cream.
[07:15] How to set up your five accounts as you implement a profit-first system in your hair salon.
[08:53] The percentages Brett uses to allocate his revenue across his five accounts.
[12:47] Why your current mindset may be holding you back when it comes to growing your hair salon business.
For more information and resources related to this episode, please visit the show notes.
Whether you're approaching retirement or already in it, tax planning is key. In this episode, Brett shares strategies for how hair salon owners can lower their tax bill in retirement.
[01:51] What are RMDs?
[03:56] The relationship between RMDs and taxes and why it's advantageous to keep your income as low as possible.
[05:19] The two types of individual retirement accounts (IRAs).
[07:53] How to maximize your retirement gap years.
[08:26] How to optimize your Social Security benefits to increase income and lower your tax bill in retirement.
[11:29] What is a partial Roth conversion?
[12:49] How pension income can potentially impact your retirement plan and taxes in retirement.
[13:30] How to lower your tax bill in retirement using a real-life hair salon owner as an example.
[20:12] Tax planning opportunities if you work past age 70.
For more information and resources related to this episode, please visit the show notes.
Brett discusses the difference between starting and scaling a hair salon business to a point where it can be sold, as well as the journey from starting a salon to selling a salon and the different challenges around that process.
For more information and resources related to this podcast, please visit the show notes.
Are you looking for inspiration and clarity when it comes to taking your hair salon to the next level? In this episode, host Brett Fellows, CFP® breaks down the five overarching themes that tend to keep hair salon owners from building the business and life of their dreams.
For more information and resources related to this episode, please visit the show notes.