Hey Reader,
With so much happening across the industry right now, this week will be a rapid fire run down of various stories taking place across the community.
A Massive Proposal from the D.O.E.
The U.S. Department of Education (DOE) is proposing a rule that's sparking some major push back right now. If passed, the rule could cause many beauty school programs to lose access to federal student loans and grants which would make education less affordable for prospective students.
In other words, students who need student loans to go to school, wouldn't have that option anymore. This could lower student enrollment, which could ultimately lead to school closures.
You can read the full press release from the DOE here or see the 394 page proposal here. If you want the full summary, I recommend downloading the PDF of the real proposal and asking ChatGPT to summarize the key points.
Here's my summary.
The proposed rule seeks to tie student loan eligibility to graduates' earnings. The goal is essentially to stop offering federal loans to programs where students don't earn enough after graduating. In other words, if your program doesn't lead to strong income outcomes, the government won't fund it.
The concern for the beauty industry lies within some old habits of underreporting income. Under this rule, the government would analyze incomes filed with the IRS.
This is a messy topic on a lot of fronts and it's making a lot of noise. Everyone has an opportunity to comment on the proposed rule until the May 20 deadline. Here's the link to submit a comment.
Wahl Global Stage 2026
Just days after announcing their new list of 15 Ambassadors for 2026, Wahl is hosting their first global barber battle and education summit. It's called Global Stage. Over the last year, barbers from around the world have battled and now 14 of them are in Chicago for the final battle. Looking at the list of regional winners, the following countries will be represented: USA, Canada, France, Spain, Germany, Australia, India, Japan, Vietnam, Ecuador, UK, Mexico, Brazil and Argentina. Low key giving World Cup vibes.
New Products from STMNT Grooming
Meet the 3 latest products from STMNT: Hydro Shampoo, Shaving Gel and Aftershave Lotion. Launched on May 1st, these products expand an already stacked line-up. The Shaving Gel features a transparent look, making it easy to see the skin, hair growth pattern and line you're creating. I was fortunate to sample these products at the Cultivating Culture LA event a month ago and I must say, STMNT has done it again.
Celebrating AAPI Heritage Month
It's officially May, which means it's Asian American and Pacific Islander (AAPI) Heritage Month. Since the bill was signed in 1990, May offers the opportunity to share stories, educate and celebrate AAPI communities. A couple years ago, I wrote this article that was featured on The Tease to celebrate. I shed some light on AAPI American history and then end by showing some love to AAPI barbers that are pushing the culture forward.
Business Gem of the Week
If you can't tell already, I'm pretty passionate and curious about business. So I'm going to end the newsletter with a business tip for you to consider. This week, it's about a KPIs (key performance indicators) you should track.
No. 1: Utilization: tracks how busy you are. In other words, being 'fully booked' is essentially saying you have a 100% utilization rate. Simply calculate your hours available by your hours booked. For example: if your calendar is open 40 hours per week and you have appointments for 30 hours, then you have a 75% utilization rate.
No. 2: Revenue per hour. How much money do you make per hour? Take your total revenue and divide it by the number of hours you were booked. So let's say you made $2,500/week and worked 30 hours. $2500 divided by 30 hours = $83/hour.
No. 3: Money left on the table. How much money are you missing out on because you're not fully booked? Take your revenue per hour and multiply it by the hours you're available. So in this example, $83 x 10 hours = $833/week. That's an extra $3k per month or $36k per year.
Pro tip: at the end of every month, review these numbers. Your overall utilization rate, revenue per hour and money left on the table. Gotta know your numbers, so you can grow your numbers.
If you want access to a spreadsheet that helps you track this month-over-month, reply to this email and say 'numbers' and I'll share a template with you.
Alright, that's all for this week. See you next week!
|
Whenever you're ready, there are 3 ways I can help you:
- Monthly Income Tracker: a Google Sheets template to help you track your monthly income
- Passing Your Barber Exam: online course that helps you pass your barber exam
- Creating a business strategy: The Barbers' Playbook features 10 essential strategies to help evaluate & grow your business
|
Written by: Matthew Mendoza
Was this email forwarded to you? Sign up here.