As a Gallup Strength-based organization, each and everyone of our talent knows their strengths in order from 1-34. The idea is to focus on the top 5 and consider 6-10 for added momentum. For instance, my top 5 include Competition, Focus, Strategic, Ideation and Maximizer (visit https://www.strengthsfinder.com) for more info.

The theory goes that you can develop your top strengths and take your talent to another level. If you try to develop your lesser strengths, you will fail miserably. The theory works.

Our core competencies as an individual are based on our core strengths. Unfortunately, many of us never know what our top strengths and talents are and we go our whole life without knowing. For instance, how did Tiger Woods know he could play golf when he was a child? How did Disney’s hottest star, Hannah Montana, know she would be a singer, dancer and actress as a child? They were lucky.

I have no musical talent whatsoever. However, one of my son’s can play the piano and trumpet with ease. How did he find out he could play those instruments and not drums, guitar or something else? Interesting question.

Our core competencies running a business are no different. We must focus on our strengths and toss out our weaknesses.

With the new unemployment rate out at 8.1% for the U.S. and 11.6% for Michigan and both rates heading higher, one of the reasons for the economic disaster is that so many individuals and businesses ventured outside their core competencies.

For instance, GE, one of the largest and best-run companies of all time ventured into real estate and lost big. MGM was the most successful casino operator and decided to make money in real estate by opening City Center. Bad idea. Even GM through its GMAC financing unit got into the mortgage business. Bad idea.

Bad ideas can lead to disaster. More than ever, we must focus on what we do best and stick with it. Sure it might not be glamorous and the adrenalin might flow a little slower, but we need to get back to the basics.

Can you imagine Sushi chefs working at McDonald’s? Of course not. McDonald’s does fast food best and gets its ass kicked when it ventures out (remember Boston Market?).

As we move deeper into this mess, access your strengths and dig in. After all, it’s one thing the government can’t take away from you.

Happy Friday!

Just what we needed to hear this morning. In a new Fox News survey, people were asked if they thought Obama can cure the economy. The overwhelming results were 96% NO.

My how things have changed since Inauguration Day.

The other day I was talking to a business friend and I asked him that if I bought his business today, how long would it take me to learn it so I could make decisions to make it better? He told me months at the earliest and perhaps as long as a year.

Good answer.

But here comes Obama with absolutely no knowledge of the White House, foreign affairs, and most importantly, how businesses make money. Without taking time out to learn about the intricacies, he has made wild and naive decisions that have cost taxpayers trillions and at the same time, have left taxpayers wondering what is going on.

Tell me, is $13 in tax credits per week going to pay the bills? Oh, that is for 2009, it will be $7 in 2010. While 8 million or so homeowners "underwater" might get relief if their mortgage company will answer the phone, millions others are stuck. And now Obama wants to reform health care and spend trillions more.

Now wonder it’s 96-4.

TNG has been in business nearly 25 years and we have never seen anything like this before. But Obama isn’t giving us a penny. We have to fight local cities to get a few percentage points off our property taxes. And Granholm isn’t giving us anything either.

No, our Leadership Team has to dig in and make tough choices. We still have to deliver 100% customer success. We have to make it through this period on our own. Our dedicated team is making it happen.

And so do our customers. It’s never easy owning your own business and like all other businesses, the salon business is tough too. Salon owners aren’t getting a bailout or tax cut. Obama isn’t sending free coupons for haircuts. Salon owners have to be creative, innovative and do what we are doing to make it through. And I love seeing what they are doing and it makes us proud to be in this industry right now.

For the U.S. economy to turn around, it will take business to do it, not government. We must reward winners and not losers. We must reward risk and not cowardice. But Obama wants to raise our taxes 15% next year, raise the capital gains tax by 33% and eliminate many deductions. In effect, why take the risk to begin with?

Now wonder it’s 96-4.

We must be the best at what we do and continue to be optimistic and know that we are going to get through this. GM’s auditors stated that GM is not likely to be a going concern and bankruptcy is around the corner. MGM might have to sell its Detroit casino because it owes $13.8 Billion. Everything is upside down. But we must focus on ourselves and do what we can to take a step in the right direction.

With a score of 96-4, we have no choice.

Happy Thursday!

P.S. If you think you have it bad, visit a hospital, hospice, third world country and be thankful your not there.

One of my good friends who has no hair, wears cheap sunglasses and dresses only in black predicted that within ten years, the term "salon" will be extinct and be replaced by "spa."

If we go back in time, common names that resonate include "beauty parlor", "beauty shop" and "barber shop." In the 1980’s, the name "salon" became ubiquitous. In the early 1990’s, the name "spa" became ubiquitous. From this, the name "day spa" emerged and then a host of other names such as "destination spa", "resort spa" and so forth.

If we think about a salon, we think about hair and nail services. If we think about a spa, we think about body services. What my friend is suggesting is that we enhance the scope of services to the spa level.

For instance, instead of offering a manicure, offer a hand spa treatment. Instead of offering a pedicure, offer a spa pedicure. And instead of offering a haircut, offer a spa haircut.

My hairdresser gives me a spa haircut but doesn’t call it that. I’m offered a paraffin treatment right away and that is followed by a good five minute scalp massage. Before he shaves my neck, he applies a hot towel and warms up the shaving oil. After my cut, he rinses my hair again (to get rid of all cut hair) and then finishes me up.

One of the simplest and easiest ways to upgrade a salon experience into a spa experience is to buy a hot towel cabinet (we sell thousands, priced $199-$349). Applying a hot towel to a client’s hands and feet calms and relaxes instantly. And your only cost is the cost of washing the towels.

But back to the basis of this blog. Are "salons" going to be extinct and should all salons convert their names to "spas?"

I have my thoughts but would love to read yours.

Happy Wednesday!

Desperate times call for desperate measures. Who knew that selling beer and liquor were desperate measures?

Apparently the Walgreens’ family.

Life in the drugstore business is brutal unless you’re CVS. But more about Walgreens’ and CVS later.

As a kid, I loved going to the drugstore. Way back then, the big name was Cunningham’s. They had the best selection of candy, comics, toys and fun things that you wouldn’t find elsewhere. Each aisle was filled with unique stuff that you wanted to buy.

Alas Cunningham’s went out of business and the new chains came into place such as Arbor. But Arbor was sterile and had 3 pieces of everything on their shelves. It wasn’t fun to shop. But they made a ton of money and sold out to CVS.

The Detroit News ran a story on independent drugstores in Michigan and most of them are gone or going. It’s a tough business because of insurance payments, mail-order prescriptions and inventory control among other things. The fun and personal touch of the business is gone.

I am happy say that there is one mini-chain still in business and doing quite well-Savon Drugs. Family run stores, they took a chapter from Cunningham’s and they now have the best candy selection. They have all the penny candies like Mary Jane, Squirrels, and Black Jacks. They  have candy necklaces, Pixie Sticks and juice in the bottle. They also have movie size candy and yummy, who doesn’t love Raisinettes, Goobers and Twizzlers’?

But at the end, CVS is #1, Walgreens’ is #2 and Rite-Aid is a distant #3. Walgreens’ a family owned business never sold alcohol for personal reasons. In fact, they were closed on Sunday’s for quite a while. Now to increase their sales, they have decided to add alcohol. So all their stores are being refitted and viola, Bud Light and Grey Goose can be yours with your script and Marlboro’s.

Costco sells alcohol and a lot of it. Why?  It increases sales.

So here is a proposal: let’s feature beer and wine in salons. Let’s have the opportunity to offer it to our clients when they come in. With alcohol sales up, why not? I know of several salons that used to feature martini Wednesday’s, Cabernet Thursdays and so forth to build the business. It worked until the cops showed up.

Hey, if Walgreens’ can do it and Costco already does, it’s an idea that makes sense. Truthfully any idea that gets us more business is a good one these days.

Happy Wednesday!

$26 Billion L’Oreal has a new product hair care line that is revolutionary called EverPure. It’s claim to fame is that the line is sulfate-free. Perhaps in a bid to recoup some of its $300 Million it paid for PureOlogy, L’Oreal decided to mimic the line and bring it to retail under a new name.

Truth or Fiction: The word “pure” appears in both brands?

Truth or Fiction: Both brands feature two unique words put together”

Truth or Fiction: Both unique words are capitalized in their trademark?

Truth or Fiction: L’Oreal advertises EverPure in print  featuring a well known hair colorist to pitch the line?

Truth or Fiction: EverPure is sold on L’Oreal Paris’s website through drugstore.com?

Truth or Fiction: EverPure is L’Oreal’s way to help salons and hairdressers increase their business?

Fact is, all the above except the last question are true. What is going on here? The company that owns half the professional market is putting its chips into retail big time. What hope does that leave us?

Not much.

The day of reckoning is coming. Business, politics, stocks and pretty much everything else are at new lows. People are concerned about today and tomorrow. Even Warren Buffet states the obvious, “2009 is in shambles and so will much of 2010.”

These are scary times indeed. But like it or not, we live in these times and we have to do something about it if we want to stay relevant when the good times return. Entrepreneurs are figuring out what needs to be done.

EverPure is the latest slap in the face and is Pure B.S. Take it for what’s worth but at the end of the day, know one thing: It’s not business as usual.

Happy Monday!