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As an avid reader of the Harvard Business Review, one of my favorite sections in the magazine is the case study.  Each case study is about a “fake” company, it’s leaders and a difficult situation that the company and CEO must deal with. After the CEO makes his decision how to deal with the situation, real experts weigh in on what decision they would have made.

MBA programs use case studies as an excellent way of teaching and they use real companies. Alex & Emilio (A&E) salon based in Royal Oak, MI could be such a study. Their story is a good one where two hairdressers come together and decide to open their own salon.

Case studies are never about success as much as they are about how to deal with unexpected disasters or situations that can create long-term problems if not dealt with correctly. A&E opened in the heart of downtown Royal Oak, drew a great crowd, expanded and hired more hairdressers. A&E was and will always be about hair; forget about going there for a massage or bikini wax.

Like most businesses, everything was going great until late 2008. Then the economy plunged and the rest is history. But what this case study is about is not only did A&E have to deal with the economy, they had to deal with their top talent defecting to another salon without notice.

In the salon industry, this is a common issue. But until it happens to you, one doesn’t pay much attention to it. Ironically, the same thing happened to another salon in Royal Oak and that salon didn’t make it (but there was a semi-sweet ending). And this is exactly what was on the minds of A&E: survival.

They had to make difficult decisions on how to move the business forward. Their rent was high, their lease was long and they were committed to their staff. In the end, it was their heart and soul that got them through. They persevered and made many right choices.

Then something happened that usually happens to good people. The main talent that defected came back. Other top talent that went to work for the competing salon (that never worked for A&E) left and joined A&E. And more talent joined through word of mouth. The results: business is better than ever.

The best part of this case study is that A&E are the same people today as they were during their crisis. Sure they have a bigger smile on their face but what made them successful in the beginning is what made them endure and reach this new point in their business life. And for those that take the plunge in owning a business, this is one case study that makes it worth it.

Happy Tuesday!

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Innovation these days is coming from smaller companies in tune to consumer demands. Just look at Facebook, Twitter, and the zillion other social networking websites out there. None of these were started by Microsoft, Yahoo, or IBM.

Innovation in hair care and hair color is coming from smaller companies as well. Kemon was first to market with its paste highlighting system, well before L’Oreal introduced their Platinium brand.  Pureology was first to market with its sulfate-free shampoos and conditioners and L’Oreal ended up buying the company to acquire the technology.

The latest buzz word in hair color is “ammonia-free.” Why? L’Oreal introduced their new INOA color in Europe last year and is launching it in the USA this year. Unlike smaller companies, L’Oreal has the marketing and celebrity muscle to make quick inroads when it comes to press. INOA (an acronym for Innovation No Ammonia) is a complicated and expensive system and is L’Oreal’s attempt at ammonia-free hair color.

One would think the company that invented hair color would have launched INOA at least five years ago. But no, Kemon was the company back then that launched the first ammonia-free hair color, Actyva. Since then, Kemon launched YO color which is both extremely low ammonia and PPD-free. And this year they launched their third generation of extremely low ammonia color, HD High Performance.

HD is especially targeted towards Wella users since the numbering system is very similar. But that is the only thing similar. HD is unlike any color on the market in the way it performs, smells, shines, lasts and its simplicity in application. Like Apple has proved with its “i” family of products, the best technology is simple to use.

Remember the one of the best marketing programs ever: The Coke-Pepsi challenge? If you are a L’Oreal or Wella user, try HD on us and if you aren’t convinced HD is the best, then at least you made the decision based on your own trial. I am that confident in HD. It’s the future of hair color.

Happy Monday!

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It’s Friday. It was just Monday. It’s March. It was just New Year’s Eve. It’s 2010. It was just the Millennium.

I work out everyday and get to the fitness club at the same time each morning. Typically Raymond will be there at the same time too. Raymond is 20 years older than me and has the same routine.

I saw Raymond yesterday as I was leaving and I said the typical “good-bye, see you in the morning.” This morning Raymond was getting ready to go swimming and I stated to him, “can you believe it’s already today? It was just yesterday!”

Raymond replied to me with a smile on his face, “Are you kidding me? If you think time is going by fast now, just wait until you get to my age.” I replied back that there is no way time can go faster than it is now. Raymond simply shrugged with a “it does.”

Raymond was my age so he would know. What he said is scary. And there is nothing we can do about it. Or can we? Can Steve Jobs come up with the next big thing in technology: slow perception of time? It’s something to think about.

Happy Friday!

P.S. Speaking of time zipping by, I will be traveling all next week and I don’t blog when I travel. But then again, it be a few zips and zaps before I’m back to this.

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Whenever I stand in line waiting to pay, I always check out how the person in front of me pays. As I have blogged before, the dreaded moment is when the 60-year old woman takes out her checkbook and spends ten minutes filling out a $27.42 check.

If you pay attention to such things, you too would be shocked at the versatility us humans have at organizing (or lack thereof) cash and credit cards. Here is what I come up with so far:

1. Women’s pocketbook that holds photos, credit cards, cash, change, bobby pins, has multiple pockets. When this person pays with cash, she takes out paper bills and then counts out the change from her change pocket.

2. Women’s change purse and wallet combo. This woman has a petite wallet that holds credit cards and cash and a separate change purse. Question: Does anyone use change anymore?

3. Women’s wallet. Most popular, holds credit cards and cash.

4. Men’s money clip that goes in front pocket that holds cash.

5. Men’s money clips that goes in front pocket that holds cash and credit cards.

6. Men’s wallet that holds cash and credit cards.

7. Men’s wallet that holds credit cards.

8. Men’s wallet that hold cash, credit cards, photos, and addresses.

9. Those that have no wallet and stuff cash and/or credit card in their purse and/or pocket.

10. And finally, those that walk around with no wallet, no cash or credit cards and have the person next to them pay for their purchases.

I’m happy we don’t sell wallets.

Happy Thursday!

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Gillette invented the first safety razor in 1901. But it took decades before Gillette introduced the first disposable razor. Do you remember when? 1976.

Over 30 years later, disposable razors are still king. Million and zillions are sold every year. I remember when BIC came out with theirs. WOW, that was a huge launch and it quickly became #1. Too bad for BIC they didn’t improve their design but they still sell like crazy.

When it comes to disposables, life is not simple. There are cheap single blade, good twin blades, better three blades, some with lube strips, some with cushioned handles. There are razors for men, razors for women. They are sold in 3, 6, 12, 24, and 36 packs.

I like using a disposable best. I used to buy Gillette’s latest and greatest but when they got to 6 blades with a neon handle and built-in battery with a cost of $4.99 per blade, I said enough is enough.

But I think the real business is with women. One thing I smile about each and every day is that I don’t have to shave my legs. Can you imagine? With daily shaving regardless of the brand, what is the average life of a disposable razor?

I’m sure the Democrats and Republicans can have a huge debate on this subject. I would guess anywhere from 3-12 times before tossing.

Who would think there is so much to talk about when it comes to shaving? Oh, forget about hair removal, I can talk about that for pages.

Happy Wednesday!

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A couple weeks ago a salesperson came in for a meeting. A common occurrence that happens far too often. In conversation I learned he had a daughter and a wife and was traveling light.

I wanted to give him something to take home to earn some bonus points. I gave him the new mini collections from both Essie and OPI.

The phone call I received the next day was such that you would have thought I gave him a couple sets of Tiffany studs. That’s how happy they were.

Last week I interviewed a candidate wanting to work at TNG. He came in from NY and I learned that he too had a daughter and wife. On his way back to NY, I have him the OPI mini collection to earn some bonus points.

He gave the collection to his soon to be 13 year old daughter and she was giddy with excitement. She soon envisioned her father bringing home boxes of TNG goodies. And his wife wants 50 of them for a big birthday party.

The thing is, we are around beauty products all day long and to many of us, they are as utilitarian and exciting as a cup of morning coffee. We are so used to the products that they don’t excite us and we take them for granted. But when the same products are given or made available to those not around them, they jump up and down with excitement.

I doubt the owners wife of a florist gets excited when her husband brings home flowers. I doubt the owners wife of a jewelry store gets excited when her husband brings home another trinket. We all get jaded.

But I’m telling you. These mini collections are priceless and hot. If you own a salon or spa, put a dozen of them at the cash wrap and see what happens. It’s time to get excited about what others get excited about.

Happy Tuesday!

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According to a recent article in the Detroit Free Press, massage therapy is growing by leaps and bounds. And not in the typical places you would expect.

Massage therapy is no longer the once-a-year indulgence or special treat one gets at a spa. Sure plenty of spas are still doing massages, but the growth is coming from the health care field. For the first time, massage therapy is considered to be a health care benefit and therapists themselves health care professionals.

Hospitals, therapy centers, chiropractors and other venues are using massage therapy as a healing process. The article goes on to state that massage therapy reduces stress and provides many other benefits.

This is good news for salons and spas. While it’s nice that more and more hospitals are opening wellness centers, I would rather step into a nice spa. But for hospitals, it makes perfect sense. Plenty of people are going to hospitals for many reasons so why not turn the hospital experience into something positive.

One thing the article didn’t mention is that TNG offers advanced massage courses through Biotone. We have noticed that many courses are sold-out and it points to the trend of more people getting into the industry. It’s good work, rewarding and you get to listen to spa music all day long.

Personally, I like a massage with the same frequency of a pedicure: monthly. But I can certainly get used to having them weekly.

Happy Monday!