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.

Davian: Alright. So we just wrapped up an amazing session this morning. Thank you for the invitation. You mentioned this is the first time you guys did this. What was your inspiration?

William: I know they got great ideas. I know they got great vision of things they wanna do. And sometimes, as entrepreneurs, sometimes we get caught in our head on the ideas, but we don't put them down on paper. Right? And so I'm a fan of the Business Model Canvas because I utilize it myself as well whenever I just want to kind of brain dump and get these ideas out of my head. And I try to explain to them that even when you dump it, it's, like a living document.

William: So for those that are not familiar with the Business Model Canvas, it's 9 building blocks allowing you to break down your vision of your business - right - from the cost to deciding your customer segment to some of the channels you have to go through, how to reach them, as well as, some of the other activities to help make that business successful, and also understanding your revenue, but also understanding your cost as well.

Davian: Surprisingly enough, I've seen or you might have even heard of, a school doing something like this before, but it usually involves them building up their own mock barbershop.

Davian: You did a little spin where you kind of gave them free reign, where they could create any type of business model with any industry - not just the barber industry - why that?

William: I can't pronounce the gentleman's name who actually discovered the Business Model Canvas format. But I use it as part of my mentoring for other entrepreneurs as well. And, the main thing I wanted them to take away from it is that even though it wasn't a barbershop - as long as you understand the requirements to start a business it'll help you in your journey in being an entrepreneur.

William: The same fundamentals you need to start a barbershop, you can apply those same steps to start any business. So I allowed them to have the free reign to think of any business, in order for them to think outside the box, because the most important part, is that they understand how to use that tool. And the cool thing is that all the information they put down on the canvas, could be built and turned into a more traditional business plan.

Davian: There's something called cross industry practices (CIPs). So how one of the students presented on an amusement park and was figuring out how they can attract customers - some of those tactics can be translated into their barbershop or their mobile barber truck or whatever else they want try to create.

William: And I was super proud of them because some of them kept the businesses a secret. They didn't want tell me prior to presenting because they knew I would start giving them the 3rd degree.

William: I was very proud of them. They did exactly what I was hoping they would do - which is to allow themselves to be creative, allow themselves to be free - because when you're thinking about a business, it doesn't have to always be daunting. It can be, but, you know, we want to be able to tap into that creative space so you can really open up and think about everything.

Davian: Expectations. What did you expect them to come up with? And did they exceed that expectation or meet it?

William: They met it and some exceeded it as well. I say they all exceeded it because I'm surprised some even showed up and presented. I was thinking that they would use an excuse to take a day off. So, yes, they all exceeded it.

William: You know, again, we want them to know how to cut good hair, but we also want them to know how to run a good business as well. And that doesn't necessarily mean a full shop because those same principles apply, to your individual chair as well.

In an industry where 80% of new businesses fail to differentiate themselves, having a solid set of Standard Operating Procedures (SOPs) isn't just nice to have – it's your lifeline to success.

According to a study by the Professional Beauty Association, only 13% of cosmetology & barber schools and salons & barbershops have comprehensive SOPs in place. That means 87% of the industry is missing out - and I’d bet 10% of that 13% is cosmetology & salons, not barber schools & shops.

Here’s what’s crazy - your love for some companies are due to their phenomenal SOPs.

1. Starbucks' "Green Apron Book": This manual is the bible for every barista, covering everything from drink-making to customer interaction. McKinsey & Company found that businesses with standardized processes achieve 30% higher operational efficiency.

2. Disney's "Four Keys": Safety, Courtesy, Show, and Efficiency. These aren't just words – they're the foundation of Disney's legendary service culture. According to Cornell Hospitality Quarterly, Disney's structured training significantly boosts customer satisfaction and repeat visits.

3. Ritz-Carlton's "Gold Standards": From their Credo to their 12 Service Values, these standards guide every interaction at Ritz-Carlton. The Journal of Hospitality & Tourism Research found that these rigorous standards significantly enhance guest loyalty and satisfaction.

So, what's in a good SOP, and why should you care? Let's break it down:

1. Vision & Mission: This isn't just fluff. Companies with a clearly articulated purpose outperform others by 42% in profitability. Your vision sets the tone for everything else. So spastically speaking if you earn $70,000 annually without a vision & mission, you can become a 6 figure barber solely by doing the work and adopting a vision & mission.

2. Customer Service Philosophy: 86% of buyers will pay more for a better customer experience. Your philosophy isn't just words – it's money in the bank.

3. Hygiene & Sanitation Policy: In a post-pandemic world, 76% of consumers say cleanliness is a top factor in choosing a service provider. Your cleanliness standards aren't just about health – they're about trust.

4. Performance Management: Businesses that implement regular performance reviews see a 14.9% lower turnover rate. This means no more revolving doors of barbers and empty booths. Keep your team sharp so clients keep coming back.

5. Conflict Resolution: Workplaces with effective conflict management are 131% more likely to have engaged team members. Engaged barbers = Empowered clients = Successful shop.

But here's the real secret: SOPs aren't just about rules. They're about culture. And culture? That's your golden ticket.

Companies with strong cultures see a 4x increase in revenue growth. Let that sink in. Your SOPs aren't just paperwork – they're the blueprint for your success.

Implementing SOPs can:

1. Increase Efficiency

2. Boost Profits

3. Enhance Training

4. Improve Client Retention

In a world of barber schools and barbershops barely treading water, the winners aren't just teaching the exam and giving fades – they're cutting through the noise with a well-defined brand and waterproof operations. You might not be Starbucks, Disney, or Ritz-Carlton, but you can learn from their playbook and dominate your local market.

It's time to sharpen more than just your scissors. Craft your SOPs, build your culture and watch your business transform from a commodity to a community-impact.

Want a head start? Text "SOP" to 888.572.2017 or click the button below to get your hands on our comprehensive Barber SOP template.