Dharmendra Manwani, AKA dm, is the co founder and CEO of artisango, a salon chair rental platform.
Speaker AToday we're going to hear how he got into this industry, how he got into this startup, and what has the entrepreneurial journey been along the way.
Speaker ANow we're also going to get a chance to hear about Artisungo, the platform for those of you interested.
Speaker AAnd we're also going to get to hear.
Speaker AHow do we.
Speaker AHow does someone build something like this?
Speaker AWelcome back to the Hairdresser Strong show.
Speaker AMy name is Robert Hughes and I am your host.
Speaker AAnd today I'm with Dharmendra Manwani, AKA dm.
Speaker AHow you doing today, dm?
Speaker BVery great, Robert.
Speaker BThank you for having me here.
Speaker AAbsolutely.
Speaker AThank you for the audience to know.
Speaker AI got a call from, I, I don't know if it's your assistant or Daniel Carson.
Speaker AHe.
Speaker BYeah, the PR team.
Speaker APR team.
Speaker ACool.
Speaker ASo PR team reached out and explained what the, what the platform was and asked if I was interested in.
Speaker AAnd you know, I am interested in tech tools for the industry.
Speaker AI am interested and it's.
Speaker AAnd I'm, I'm excited to see that.
Speaker AYou know, I feel like for so long no money or attention was placed on our industry unless it helped the salon owners or the product companies.
Speaker ALike, because that made sense because they had all the money.
Speaker AAnd so now it's really, it's really cool to start and seeing more and more tools available for folks who, for, for the, for the, for the operator.
Speaker ALike, it's because I don't really feel like there's a whole lot for us.
Speaker ASo I'm excited to learn about this, but I'm even just as excited to hear what has this journey been like?
Speaker ABuilding something, coming up with an idea, turning an idea and turning it into an actual thing that now you're talking about and you're going around and promoting and I think a lot of people listening and watching will be very interested.
Speaker ASo thank you for taking the time.
Speaker AI'm looking forward to this conversation.
Speaker BThank you very much.
Speaker BYou're doing great.
Speaker BGiving opportunity for us to share the story.
Speaker BI used to listen a lot of podcasts like this and I'm a big fan of Hairdresser Strong.
Speaker BSo thanks for having me.
Speaker BMy story is simple.
Speaker BI grew up in hair salon industry.
Speaker BI co founded and worked with a chain of salons which has 300 plus salons worldwide.
Speaker BJean Claude Beguin.
Speaker BAnd we were growing very well, around 340 stores.
Speaker BAnd in 2014 we realized that hairdressers are opting to go independent.
Speaker BAnd I think they had.
Speaker BWe sat down with our leadership team of hairdressers, creative directors.
Speaker BWe try to dig in deep.
Speaker BUsually your mindset is why you want to go independent as a salon owner.
Speaker BBut I think we had a different approach.
Speaker BAnd when we heard back, there were very genuine reasons.
Speaker BMost hairdressers had one of the four reasons.
Speaker BEither they wanted to have more creative freedom after working 10, 15 years.
Speaker BThey don't want a marching order from another salon owner who is not even a hairdresser.
Speaker BA lot of other hairdressers wanted a flexibility.
Speaker BTheir life evolved.
Speaker BSo they got married, they have children, and they just wanted to work for a few hours.
Speaker BAnd that was on their own schedule.
Speaker BAnd they had a clientele and some of them actually really wanted to build their own business.
Speaker BSo we realized that there was not one reason and there was nothing against the salon owners, but the needs of hairdressers were evolving and they wanted to go independent, but they wanted to work in the salons.
Speaker BSo we started renting the chairs.
Speaker BBut it was so difficult to manage renting the chairs while you're doing so much.
Speaker BAnd I realized that there has to be some technology behind it.
Speaker BThere was none.
Speaker BAnd then I decided to build one.
Speaker BSo it helped me.
Speaker BIt helped a bunch of hairdressers who were renting chairs from us.
Speaker BAnd we thought since the industry is going in this trend, it will help everybody.
Speaker BThat's how I decided.
Speaker AOh, wow.
Speaker ASo you were able.
Speaker AOkay, wait a minute.
Speaker ASo first of all, I guess so it sounds to me, and correct me if I'm wrong, if I'm getting this wrong, it sounds to me like you're working with this multi location company and you are solving a problem for that company.
Speaker AAnd then you're like, why don't we make this available to everybody?
Speaker BAbsolutely, absolutely.
Speaker ASo how did.
Speaker ASo for those, those of us, those of us who work at a place that is huge and big and they come up with an idea and it helps solve a problem, and then the company turns around and uses that and spins it off and sells it.
Speaker AHow, how are you able to be in a play?
Speaker ALike, is it a same product?
Speaker AAnd like are they, is that company an investor in that product?
Speaker ALike, how can you tell us a little bit about that ownership structure so we can kind of like understand?
Speaker ALike, yeah, it's one thing to come up with an idea, but the amount of idea times I've heard somebody come up with an idea at a company, the company is like, okay, great, you're my Employee.
Speaker AYou, you, you made that soon.
Speaker AThat's.
Speaker AIt's mine.
Speaker AIt's.
Speaker AI'm the I, you work for me.
Speaker ASo what you make is mine.
Speaker AYou don't get to have any ownership of it.
Speaker ASo.
Speaker BYeah.
Speaker ACan you talk to that?
Speaker BYeah, no, I think it's a good question.
Speaker BSo when we were working at Wrongflot Beguin and we started to renting the chairs before we started renting shares, we also had investors in our company and we wanted to actually go from 350 salons to around thousand salons.
Speaker BWe tried to buy out some salons and I went back to the board and I was one of the co founders and I went back to the board and I said the trend is changing.
Speaker BIf we open more and more salon because we are already losing some people, the next salons won't be profitable because there's a new trend starting in which means hairdressers will work get some clients, build their books but after some point they have an option to leave and actually rent a salon studio at one of these sweet chains.
Speaker BThat was if you remember in 2014 was the big trend started.
Speaker BSo it will be very hard for as a company to sustain the margins because every time you are your top talent is leaving you, you have to fill the chair.
Speaker BSo you have to recruit.
Speaker BAnd recruiting was becoming difficult and difficult.
Speaker BAnd by the time you recruit, you get them training of your own brand, you build the clients for them.
Speaker BIt was not a very healthy proposition.
Speaker AAnd then they leave.
Speaker BExactly.
Speaker BAnd.
Speaker BAnd they leave for the right reason.
Speaker BRight.
Speaker BI mean it's just like a human behavior.
Speaker BIt's.
Speaker BThey were leaving for freedom and flexibility.
Speaker BRight.
Speaker BSo there's no price for that.
Speaker BSo we spoke to our private equity and we actually thought about opening up a chain of rental salons and diversify.
Speaker BBut in the whole process we are able to be to able got an offer from private equity to buy out.
Speaker BSo we actually sold the company.
Speaker AOh wow.
Speaker BGood for you.
Speaker BYeah, thanks.
Speaker BAnd we started thinking about building a just a rental salons.
Speaker BRight.
Speaker BBecause we were trying to rent there and we thought that renting, building a salon with renting a chairs to the people were was a right idea.
Speaker BSo we built one salon in Soho, New York and we started to rent the chairs there.
Speaker BAnd I own that salon.
Speaker BI built it for myself to learn what the pain point of that salon can be and we can scale.
Speaker BAnd what happened when we were started rent?
Speaker BThere were a few learnings actually.
Speaker BI thought we'll have 16 chairs, 20 chairs and hairstylists Will come and walk in and they say here's the monthly rate for $3,000 per month and they will sign a chair and then we'll fill all the 16, 20 chairs.
Speaker BAnd we did a math in the Excel spreadsheet that you know, we had actually 22 stations.
Speaker BWe did a math that we'll make $65,000 in a rent.
Speaker BAnd our rent was $25,000 of salon.
Speaker BAnd with one manager and some expenses, we will make 30, 40% EBITDA margins.
Speaker BWhen we started to a surprise, Most of The stylists wanted three days rental chair, two days renting chair because they were working for 40.
Speaker BEverybody wanted a flexible chair.
Speaker BNobody was ready to sign one year lease.
Speaker BNobody was ready to sign for seven days.
Speaker BNobody wants to give you.
Speaker BSo you cannot be a landlord.
Speaker BAnd subletting a place as simple as that what it means.
Speaker BAnd a lot of people were not matched with the other stylists.
Speaker BSo you, at the same time, you don't want to have different kind of stylists in the one room.
Speaker BSo there's a certain vibe of a place and we wanted to match the vibe with the artist with the other artists.
Speaker BIt became a very tedious job.
Speaker BSo it took me a year and to understand that four things.
Speaker BOne, your consumer is looking for more flexible options rather than a cookie cutter options like a doctor office.
Speaker BB, your consumer which is your hairdresser renter has a needs, the location, the vibe, the equipments.
Speaker BThe third, it's a community business.
Speaker BIt's not like you're coming and going there.
Speaker BThose people have to stay 8 hours, 10 hours.
Speaker BSo everybody has to build that culture together.
Speaker BSo there, everybody has to gel together.
Speaker BFour, there has to be system which can be operationally efficient, how to take the payments, how to see the calendar.
Speaker BBecause now it's flexible renting.
Speaker BSo it's not you give the keys to everybody for that chair.
Speaker BSo if chair is empty for a few days, who else is going to rent?
Speaker BSo it needed a whole system of sense SaaS software like where the bookings will happen, where the calendars will happen, how the payments will go, how the messaging will go.
Speaker BAnd it was very tedious to do manually.
Speaker BI needed three managers to do that.
Speaker BAnd, and then I understood that's why everybody's scared of renting the chairs.
Speaker BBecause more than the money you make, you need your more manpower to do that.
Speaker ARight.
Speaker BAnd that's where I, I think I took a step back and decided that this all can be done through technology.
Speaker BUnfortunately, there was nothing built and that's how we started building that for ourselves.
Speaker BSo yes, we ended up that pilot salon, you know, closing down and then we use the technology and then we kind of started there.
Speaker AThat's cool.
Speaker AThat's awesome.
Speaker ASo did you, do you have like any sort of software background or like did you have to hire, hire a team and you know, put that together like that?
Speaker BYeah, no, I do have engineering background, but I was not that savvy to write the code myself.
Speaker BSo I went out, I met the co founder who has experience of building this technology and the product manager.
Speaker BHer name is Aarti.
Speaker BShe's my co founder and she actually used to work for companies like Gemini, which is a big crypto platform.
Speaker AYeah.
Speaker BAnd then I met another co founder, Pat Parenty, who was the president of l' Oreal Professional at that time.
Speaker ANice.
Speaker BAnd he saw the same problem what I saw.
Speaker BAnd Aarti has built many applications in financial and healthcare industries of Marketplace.
Speaker BAnd actually she happens to be my sister as well.
Speaker BSo I had to convince her to leave her job and join us.
Speaker BAnd then we, yeah, and we formed a team, we built up a prototype and we set up a, you know, next seven, eight milestones.
Speaker BWe're happy to, you know, chat about that.
Speaker BYeah.
Speaker ASo, okay, so you, you, you.
Speaker AI feel like you did a really good job explaining the process of figuring of like observing, participating in, considering and realizing the problem.
Speaker AAnd, and then the, and, and the solution is, I agree is, is, is kind of like right there in your face is like some, you got to figure out how to manage all that stuff and then you, so you're like, okay, we're going to do this and we're going to build this system and you go out and you recruit people that have the skill set to help you build it.
Speaker AAnd, and do you have to.
Speaker ADo you self finance this thing or do you raise money?
Speaker BI did both.
Speaker BFirst I self financed.
Speaker BOkay.
Speaker BBut I, I think I don't want to tell one step before to the listeners.
Speaker BThe important thing for me to evaluate because I ran big companies was there are two, two differentiators.
Speaker BOne, do I want to build technology for myself or do I want to build technology and how many people are going to use it or buy it eventually and how many people's life is going to drastically change?
Speaker BIs it a good, you know, problem to solve for everybody or it's a, it's a first world problem of me and my 30 friends.
Speaker BRight, right.
Speaker BSo before we went to full scale, I actually genuinely tried to delay and rather than jumping an idea and saying, hire the team, raise the money and invest.
Speaker BI actually felt like there has to be some solution and alternate before I build something.
Speaker BSomebody might have already done that, you know, or there has to be easier way.
Speaker BSo I spoke to a lot of rental salons.
Speaker BI went to Sola Salon Suite and asked them, do you have any technology I can use it?
Speaker BOr.
Speaker BSo I spoke to multiple people.
Speaker BI actually use multiple POS softwares and send an email to them, can you build these features?
Speaker BBut they're like too busy in building anything.
Speaker BAnd their priority was separate.
Speaker BAnd I also did evaluation that is it worth for somebody to.
Speaker BIs somebody going to pay for it?
Speaker BI mean, yes, I'm excited.
Speaker BIt's my idea.
Speaker BOr I'm just being really asking why and how many people are really going to be passionate to pay for that and will that their life, you know, change if I build something, will their life be changed?
Speaker BAnd they will cry and say, yeah, wow.
Speaker BSo I spent actually six to eight months doing that really, you know, and I asked a couple of people to say, can you pay me a hundred dollars per month for that now?
Speaker BAnd you know, and six months advance so that I can build it just to test.
Speaker BAnd I actually got money from 15 hair salons.
Speaker ANice.
Speaker BRight.
Speaker BWhich I of course returned them, you know, after a few months because.
Speaker BBut they were committed that they wanted to give me the money.
Speaker BSo that was a good proof of concept.
Speaker BAnd I would just say that's one thing which I will very highly recommend.
Speaker BSometimes as an entrepreneur we get very excited and we get very biased with our problems and we think our problem is the world problem.
Speaker BUnfortunately, 99% of the times it's not world problem and it's not an urgent problem.
Speaker BIt can be world problem, but it may not be urgent.
Speaker BAnd thirdly, it may not be worth paying for it, you know.
Speaker BSo, yeah, there are.
Speaker BThere are a lot of things may not be people's problem or problem which are not worth prioritizing.
Speaker BAnd maybe it's priority also, but not worth reading.
Speaker BJust like, I mean, just paying for that.
Speaker BSo one thing one should think about and we work very hard to do that.
Speaker BAnd after that, yeah, we raised a couple of rounds of investment from a lot of founders in the tech industry and then a VC fund.
Speaker ANice.
Speaker ACool.
Speaker AAwesome.
Speaker AYeah, that's good.
Speaker ALike test your idea, research it, make sure that there's nobody else doing it.
Speaker AAnd I like this thing where you went around and you try to sell it and then you sold it, but you didn't actually sell it.
Speaker AIs that what you said?
Speaker BYeah.
Speaker BWell, we sold it, but they use our technology now.
Speaker BBut definitely they paid it for six months.
Speaker BYeah.
Speaker ANice.
Speaker AYeah, nice.
Speaker AAwesome.
Speaker AI love it.
Speaker AI love it.
Speaker ASo tell us exactly now that we've learned how you built it and.
Speaker AWell, I guess before we get on to the next thing, I. I want to ask what were the biggest challenges and lessons learned along the way?
Speaker AIf you want to pick like two or three things.
Speaker BYeah.
Speaker BSo I think when we were building one of the biggest, there are three challenges in three different categories.
Speaker BOne, I would just say the category of user product market fit.
Speaker BI would say yes, the concept at a high level always got approved.
Speaker BI wish that we would have done spend more time in doing more research of why you needed what feature is important literally rather than building, you know, too much.
Speaker BSo yes, at a high level, the problem of renting a chair was definitely a yes, yes, yes.
Speaker BBut what is the priority because you have limited resources initially and you want to just work the.
Speaker BThe North Star is user's biggest pain point.
Speaker BI think a lot of times we want to hear what we want to hear and we neglect what the consumers are saying.
Speaker BSo I would say your ego should be less and your ears and listening power should be at the highest and.
Speaker BAnd be surrounded by people who want to challenge you and be open to be challenged.
Speaker BBut definitely if you.
Speaker BAnd then you have to make decision of your own.
Speaker BIt's not like when people are challenging, there can be things which they don't see what you are seeing through.
Speaker BBut that's a solution.
Speaker BSo don't bring solution.
Speaker BFirst, spend a lot of time in understanding the problem exactly where it is.
Speaker ASo.
Speaker BSo that is one big takeaway I would say.
Speaker BSecond, don't try to do it alone, you know, but don't try to have hundred people.
Speaker BSo have two or three, you know, key team members who have same skin in the game are very motivated and they have some trajectory or background.
Speaker BJust not because you are my sister or you're my friend or you're my.
Speaker BYou're the only available.
Speaker BI will say never compromise on the talent because you're as good as your talent is right.
Speaker BAnd you'll end up running 80% of ship through your team.
Speaker BYou can only contribute 20% yourself because.
Speaker BBut what you bring as a founder most is your vision and that's, you know, good 10, 20%.
Speaker BBut you need a very, very strong partnership to bring that and they should be aligned with the mission of the company.
Speaker BSo sometimes you can have the best programmer and the best person and the best human being but not believing in your idea or the, the concept.
Speaker BSo that's a team is the second thing.
Speaker BThe third thing, I would just say by the time you're building something and you have the right people, you should have go to market strategy right in the beginning.
Speaker BBecause if you cannot sell it, you can build it.
Speaker BYou know, selling is the ultimate.
Speaker BIt's like start from the back.
Speaker BYou know, everybody loves the, the, the process of creating something is very beautiful and exciting, but is just 20%, 80% is selling and distributing that.
Speaker BRight.
Speaker BSo if you have not figured out, and if you are figuring out after you build it, you're already too late, you're ready to die.
Speaker BSo if you haven't thought about, so I would say before even you build the product, you should sell it and see can you sell it to 30 people, you know, and is that the right channel?
Speaker BYou know, so if you can sell it to 30 people, I wouldn't even suggest you to buy to build anything.
Speaker AAll right, cool.
Speaker AThat was good.
Speaker AThat was so good.
Speaker AI, I, I can relate to that.
Speaker AWe built something and we're, we're going through process right now and, and all that.
Speaker AI feel like that was good.
Speaker ASo, so all everybody out there.
Speaker AIf you're building something, make sure that you can build a team with two to three people and that can complement your strengths.
Speaker AMake sure you have a go to market strategy.
Speaker AMake sure that you know how you're going to sell it, who you're going to sell it to, what you're going to sell for.
Speaker AAnd what was the first one?
Speaker AIt was the team.
Speaker BThe user research.
Speaker ASo the user research.
Speaker AYeah.
Speaker BSo I would just say here, here's the whole process.
Speaker BI would just say all three steps.
Speaker BWhat you can do, if you're listening here, and if I have to do it again, you sell it first to somebody, then sit down with them and build with them in their office because they will tell you what their pain point is and then you polish it and make it better so that everybody can use it.
Speaker ANice.
Speaker AOkay, cool.
Speaker AAwesome.
Speaker AGood.
Speaker AAll right, so now that we've learned how you build this and then if we have ideas how some advice for us to go out and build our own stuff.
Speaker ANow let's see, let's hear a little more about what you built and as a matter of fact, why don't we look at it?
Speaker AI know if you're listening on podcast, you won't be able to see it, but we'll include the links in the description below.
Speaker ASo if you Want to share your screen and kind of show us a little bit about what is to expect, you know, at the highest level.
Speaker AYeah, like how do we, how you do, how are you managing chair rental?
Speaker AAnd I agree, I think the industry is definitely, I just, I just don't know how salons are going to survive if they don't figure out solutions to the need to provide people with more greater flexibility and etc.
Speaker AAll right, so for those of you on podcast, we have pulled up the website artist on go.com you can use the link in the description and we're going to get a little walkthrough to kind of see what it is that we're looking at here.
Speaker BSure.
Speaker BSo Aristotle platform.
Speaker BThe very important thing, what the problem we are trying to address is twofold.
Speaker BOne is if you are a beauty cosmetology licensed person and if you are looking for flexible renting, which is two days, three days, four days, five days a week or, or half days, multiple half days.
Speaker BAnd if you're looking something in your neighborhood, where your clients are and if you're looking to work with like minded people or the vibe of salons because then it's difficult rather than calling 100 people salons, you can come here, you can put the search and see the list of the salons which meet your needs.
Speaker BRight.
Speaker BSo these are a bunch of salons.
Speaker BYou tell them what type of salons and locations you are looking for and it will show it to you.
Speaker BOnce you find your salon.
Speaker BLet me show it to you one of these salons.
Speaker BSo this is Takamiji.
Speaker BOnce you find the the quiz will ask you questions.
Speaker BI will not go through there but it will say which location you are looking for.
Speaker BYou can put in the search which location you are looking for.
Speaker BYou know, are you which salon type you're looking for.
Speaker BHair, spa, nails, salon vibe, classic, upscale, hip render plans monthly, weekly, full day, halfway.
Speaker BSo once you start looking it will give you choices of multiple salons.
Speaker BYou can see the pictures of the salon, the video tours as you can see here.
Speaker BSo you know what type of a vibe it is and if it's the vibe you are looking for.
Speaker BYou can also see the video.
Speaker BYou can read about the salon.
Speaker BIt is upscale, it's in Lower east side.
Speaker BIt's popular among monthly renters.
Speaker BIt gives you detail about the timings when you can work here.
Speaker BIt has all the information of how you can rent.
Speaker BIf you want a one day it's $200.
Speaker BIf you want three days a week it's $420 if you full day.
Speaker BIf you want it early, it's 25 hours.
Speaker BThere are some salons which don't offer.
Speaker BSo you want to see if it matches you.
Speaker BThe plan which you're looking for.
Speaker BIt tells you the amenities which you are looking for.
Speaker BYou can also search salon based on amenities.
Speaker BMost of our salons comes with back bar, Wi fi robes and you know, some of the other basic refreshments.
Speaker BReceptionist.
Speaker BAnd you can use the towels and tools so you don't have to carry a big bag.
Speaker AI got a question.
Speaker AThis says.
Speaker ASo those, those watching you can see it, but those listening.
Speaker ASo we're in kind of.
Speaker AHe's showing us like all the things that are included.
Speaker ABut.
Speaker AAnd I'm reading, I'm reading.
Speaker AWell, and I mean there's not.
Speaker AI mean, we have to bring.
Speaker AYou'd have to bring your own color, I'm assuming, right?
Speaker BYes, you had to bring your own color.
Speaker BBut you can also buy the color at the salon.
Speaker AOh, okay.
Speaker BI see extra price.
Speaker BSo the carrying Vela color line, Redken color line, and they have a Melbourne.
Speaker BYou can also sell the professional products, I mean care products there.
Speaker BThey give you the commission.
Speaker BSo.
Speaker BYes, but you have.
Speaker ACool.
Speaker AThat's, that's, that's cool.
Speaker AAll right.
Speaker AYeah, so it's, it's different than a.
Speaker AMost chair rentals where you're just like, that's all you got is the chair and the, the shampoo bowl.
Speaker AAnd you can.
Speaker AYou got to bring everything with you if you want to sell.
Speaker AIf you want to sell product, you got to like rent a shelf and buy your own product and sell it.
Speaker ASo this is like a little bit better in my opinion.
Speaker AIf you want to like, I don't want to carry all that stuff around with me personally.
Speaker ASo anyway, keep going.
Speaker ASorry.
Speaker BAnd, and you can see the reviews.
Speaker BLike reviews after every booking, people have this real genuine reviews.
Speaker BThis is, you know, love it or whatever.
Speaker BIf you have a problem, you can post it here, but you can keep reviewing, getting reviews.
Speaker BAs you can see, it's a comparison.
Speaker BLike if you are not renting, you would have, you know, ended up making different amount of money.
Speaker BBut that gives you comparison.
Speaker BAlso you can see the salon guidelines.
Speaker BEvery salon has some guidelines that you need a license and business insurance.
Speaker BLike the salon, you cannot dress code is professional.
Speaker BNo open toes, no casual clothing.
Speaker BSo every salon can write their own and you can see if it suits your needs.
Speaker BYou can do that.
Speaker BSo this is.
Speaker BAnd then when you are ready, you can go here and you can say Full day or monthly booking.
Speaker BAnd you can say, I want to do three days booking, three days a week, I want to work.
Speaker BAnd you can select a month, let's say July onwards.
Speaker BYou also give a facility.
Speaker BI mean, and this is a great feature to talk about here.
Speaker BI know most of the hairdressers live on weekly, week by week, like their finances.
Speaker BSo we just make sure that you want to pay the weekly rent every week.
Speaker BThat's fine.
Speaker BYou don't have to pay a monthly rent and you can.
Speaker BOr if you want to pay monthly, you can do the monthly.
Speaker AGot it.
Speaker BSo you do monthly and you can actually just go and click and, and actually, you know, you're done.
Speaker BSo it's as simple as renting from a salon perspective.
Speaker BYou get a very full suite of, you know, engine where you can see bookings.
Speaker BThis is a, this is the interface with salon owners.
Speaker BLook at it.
Speaker BCan you see my screen?
Speaker AYeah.
Speaker BSo as a salon owner, I can see all the bookings of the renters, like today's booking.
Speaker BI can see the reports.
Speaker BI can see that I already rented and made $2,600 this month by renting few chairs.
Speaker BAnd you can see the list of all your renters.
Speaker BYou can see the calendar.
Speaker BYou can get the marketing suite to kind of send an invite to other people payment reports.
Speaker BSo you have a full suite of render management platform, as we were saying.
Speaker ACool.
Speaker AIt reminds me of Airbnb.
Speaker BCorrect.
Speaker BAnd it's actually if you already have a software for client booking is a similar kind of a software, but it's between hairdressers, share rental.
Speaker BAnd so, so think about as a salon owner, you have 12 chairs and you have four employees working for you.
Speaker BSo in your software, whatever you use Ver or Gloss, Genius or any other software, you put four clients and you have four columns.
Speaker BThen you have eight chairs.
Speaker BYou don't do anything with those eight chairs.
Speaker BThis software manages your eight chairs just.
Speaker BAnd the clients are not the people who coming for haircut, but people who are booking the chairs so you can monetize them and everything.
Speaker BLike how you see your reports in a.
Speaker BYour normal software.
Speaker BYou see the reports for the rental in here.
Speaker ACool.
Speaker ASo who, so I, I guess the salon owner or shop owner is the, is your client.
Speaker ARight?
Speaker ALike because you don't take.
Speaker AI guess that's who pays you.
Speaker ASo the salon owner pays for the platform and then they're able to bring on hairdressers who want to, want to take advantage of that opportunity.
Speaker BYeah.
Speaker BSo we do two things.
Speaker BSalon owners Pay a monthly software fee, very small fee, $89.
Speaker BUsually salon can make around $1,500 to $2,000 share per month.
Speaker BSo if they're renting four chairs they can make six to $8,000 and they can manage that by paying $89.
Speaker BAnd we also bring the stylish and match them as you can see match a renter.
Speaker BSo actually we match and we advertise and we have a marketplace and we take 6% fee as a technology, marketing and other fees on a success based only when the renter is there.
Speaker BSo on an average if you are some of our salons make $6,000 a month and they pay us around 60 $650 including the 6% fee.
Speaker BI mean actually $500 including success fee and $89.
Speaker BSo they keep around 90 in their pocket or 95.
Speaker BAnd we overall get 5%.
Speaker BSo much lower fees than Airbnb.
Speaker ANice.
Speaker AYeah.
Speaker AAirbnb is so high.
Speaker ACool.
Speaker AThis is cool.
Speaker AAnd this is.
Speaker AIt's.
Speaker AIt's nice and it's nice and clean.
Speaker AIt's a nice.
Speaker AIt's a beautiful looking product.
Speaker AAnd when did you all launch?
Speaker BWe launched post Covid.
Speaker BI actually want to show one more thing to the.
Speaker BTo the community.
Speaker BWe have.
Speaker BWe have our community page where we do the events and the blog.
Speaker BSo if you are a salon owner and you like.
Speaker BSo if.
Speaker BIf you are keep watching for events, keep watching for blogs.
Speaker BWe do very educational blogs like where clients find stylists and are they finding you so how do you or the no stress way to find stylists.
Speaker BSo for salon owners, what should they do if they want to rent chairs, what are the do's and don'ts do they want to rent for stylist?
Speaker BIf they want to build their clientele where to post, how to post, what are the keywords, what's happening with the AI world and chat gpd.
Speaker BSo we actually keep every week educational webinar and live Instagram and also white papers which any hair stylist who's either out of cosmology school or a very seasoned.
Speaker BThey may just don't know.
Speaker BOh, how do I do social media?
Speaker BOr they say how do I this.
Speaker BThey can.
Speaker BThey can take a lesson here.
Speaker BHere.
Speaker BYeah.
Speaker ANice.
Speaker ASo I gotta ask.
Speaker ABased on what you said earlier, it sounds like.
Speaker AAnd you were mentioning it sounded like you.
Speaker AI can't say for certain but it sounded like you were.
Speaker AYou were saying that you.
Speaker AOr maybe you didn't sound like it.
Speaker AI assumed based on something you said that you built out A lot of features and there was something about what, what features are the most important.
Speaker AAnd so with all of those features in like how long did this.
Speaker AWell, I guess first question is how long did the whole thing take for you once you started building it to be built?
Speaker BYeah, so the first it took us three months to build a basic bear shell platform.
Speaker BYou know, basic transaction payments, showing the inventory and other things.
Speaker BIt was, it was a good decision that we made a very, you know, basic platform and we went out in the market and we had no packages, no monthly.
Speaker BIt's like go and book either us or days or whatever, no community and nothing.
Speaker BAnd then we hired a senior engineer after six months, eight months when we raised the money, when we had around 30, 40 clients, 50 salons on one side and people were renting and they, we spoke to them and they're like oh, I have to book the chairs every time can have a monthly package, you know.
Speaker BSo we introduced monthly but then we started hiring engineering team and said let's build this for a scalability.
Speaker BSo if you are a tech entrepreneur, things are changing.
Speaker BYou can build the basic technology pretty fast now.
Speaker BThat's what I hear.
Speaker BSo I don't want to brag about it but that's what I hear.
Speaker BBut still two, three months is a good time.
Speaker BBut I have another advice here, very strong advice.
Speaker BIf you are building a tech company, you either should have a money to hire a very seasoned tech team and if you don't, which is most of the time, don't self fund to hire a technology person because a they are very expensive.
Speaker BIf they're good and running a salary from your pocket can be very high.
Speaker BI highly recommend that if you're building a tech company, have three co founders.
Speaker BOne, as you as a business person or whoever you are.
Speaker BSecond, technology person and again somebody who has done that, not your nephew, niece or friend or somebody who has done professionally.
Speaker BAnd third, a marketer salesperson.
Speaker BIf you cannot sell the idea to two people to join your company, you need to keep correcting it until you find that.
Speaker ASo that's good advice.
Speaker BSo I would say if you don't find it and question can be where can I find it?
Speaker BThere are a lot of platforms, it's like a dating.com like you know, you can meet people.
Speaker BIt may take some time, like six months a year.
Speaker BBut if you want to build a tech company, if you don't know anybody in technology, that's you don't want to be in that industry, you don't want to build the tech product.
Speaker BSo if you want to do the change, you need to go to the tech events, New York Tech Week or SF Tech Week and get into that community, you know, or you raise the money or you find if your idea is so compelling, raise some money and then ask your investor to match you with tech founder.
Speaker BBut anyhow, my point is don't do it from your pocket and fund because it will not get to the most of the times.
Speaker BIt won't get you there.
Speaker ATotally.
Speaker ATotally.
Speaker ASo, so when, when you're thinking about community, since you're talking a little bit about community, when you're thinking about community.
Speaker AAnd what is my question I'm trying to ask here?
Speaker ASo 1.
Speaker ABuilding community is not.
Speaker AIt takes time and it's.
Speaker AI, I don't, I, I think it, it takes time, I guess so it's not easy and it doesn't happen fast and, but it also seems to be a really important part of business moving forward to have community.
Speaker AAnd it's almost like I actually read a piece in the Harvard Business Journal that they said that, you know, there's a new way to build businesses and no one's teaching it in MBA programs and it's coming from content creators building communities and then selling them things.
Speaker AAnd so I think it's interesting because you, you're building community.
Speaker AYou're, you're building a product, you're bit, you, you have customers, you're, you're in it.
Speaker AAnd, and it's something that the all the audience can quite, can really understand.
Speaker AI think the audience really can see this, the value of a product like this for them, especially all my independents out there.
Speaker AAnd there's a lot of salon owners who are moving away from hiring and, and W2 employees.
Speaker ASo I think that everybody can really kind of understand this challenge.
Speaker ABut can you talk?
Speaker ACan.
Speaker AI mean I, I know we're at our time, but maybe, maybe that's for another, another conversation.
Speaker ABut I want to give you a chance to say where, where people can find you Any, any word, words of advice for the entrepreneurs?
Speaker AAny words of advice for the salon owners who are struggling?
Speaker AThere's a lot of salon owners that are part of our community.
Speaker ALike we, we go out and one of the, we, we have a solution that we've been working on for helping students getting get into salons so that they can build a relationship with them before they graduate.
Speaker AAnd, but like what about the salon owners who don't want to hire?
Speaker AI, I run into a lot of students or a lot, sorry.
Speaker AA lot of salon Owners who are like, you know what, I actually hear you, that you want to send me students.
Speaker AAnd that makes sense.
Speaker AAnd if we can build a relationship with the students, then maybe we can have a longer running relationship and I can actually get a return on my investment for training them.
Speaker ABut there's enough salon owners, I would say half, at least of the salon I talked to don't want to train at all.
Speaker ALike, even if, even if I could guarantee them and I had a magic wand, they still wouldn't want to go through the training process.
Speaker AThey just, they just, they want to run a salon.
Speaker AThey don't want to run a training salon or, or a building salon.
Speaker AThey want to run a salon full of people who take care of their own clients.
Speaker AAnd, you know, the.
Speaker AIdeally, they would like them to be W2 Commission because they have a vision about what, what the salon is going to be like, what the type of hair that's walking in and out, what the reputation's going to be like.
Speaker AI think this is probably a better place to wrap up our conversation because I'm sure I'm talking to you, I'm talking your language and let's, let's in this screen share real quick.
Speaker AYeah, there we go.
Speaker AYeah.
Speaker ASo, like, why don't we wrap it up like that?
Speaker ABecause I feel like that's the piece.
Speaker AI feel like if you're an independent stylist and you, you get it, like, you're like, sweet.
Speaker AAnother tool to help me build my, my business and find people.
Speaker AI feel like it's the salon owners who want to.
Speaker AWho are not currently renting their space and, but are thinking about it.
Speaker AThere's a lot.
Speaker AWe talk to so many that are, that's where they're at.
Speaker AThey're like, should I just rent a chair?
Speaker AOr maybe they're a hybrid space.
Speaker AThey're like, I have some employees, I want to rent my space.
Speaker ABut, yeah, talk to that.
Speaker AI.
Speaker ASorry.
Speaker ABefore you respond, I just want to lay one thing out there and it might come into what you're going to say or it might not.
Speaker AAnd I, you know, I'm not.
Speaker AWhether it does or not is not important, but I will.
Speaker AI wanted to put this out there.
Speaker AI had a conversation with one of our panelists for the Beauty Business Brunch this year, and she runs seven salon concepts and each one is different.
Speaker ASome are membership based, some are rental pays, some are commission based.
Speaker AAnd her whole thing was, we need to stop being hairdressers.
Speaker ACreating a space that we want to work in and then saying hey, this is what the customer's experience is going to be like and this is what our brand is like.
Speaker AAnd I want you all, I want to hire people to uphold my brand.
Speaker AShe's saying that, that those days are maybe not completely gone, but they're, they're, they're not for the majority.
Speaker AAnd so if you, if you want to run a business and you want to run a salon, you might need to diversify and become more dynamic with what type of brands or work is in there.
Speaker AI don't know that I'm not saying I'm on the.
Speaker AI, I agree or disagree.
Speaker AI'm just, I just want to kind of put that little context out there when you respond to, when you give your, you know, your sign off words on this.
Speaker BNo, thanks.
Speaker BSo first of all, thanks for having me.
Speaker BIt was great chatting.
Speaker BI think from a salon owner perspective, I'll put a three step process.
Speaker BNumber one, hair stylist and salons owners are actually the same.
Speaker BThey both are artists and creative people.
Speaker BSo we have been in there working for hundreds of years together, but it's evolving the relationship, right.
Speaker BAnd I think we have to be respectful of this new way of some people's preference of how do they want to work.
Speaker BI think the ask is let's work together, but with a different, more responsibility, with our own job and less interference and be still part of community and help each other.
Speaker BSo that's what I think your other salon owner with the seven concept is saying.
Speaker BAnd the message is we can be under the one roof, but we don't have to be each other's boss.
Speaker BYou know, we can coexist and we can have a very refined, clear transaction like what I get, what I give.
Speaker BAnd when we start working for each other, like as an employee or something, because it's a creativity, you cannot create the carbon copy of everything.
Speaker BAnd if you do that, then you are not a creative person, then you're an industrial person.
Speaker BSo I think it's a very first principle.
Speaker BThis community is not like any other CPA office that I'm one CPA and you the same accounting practice.
Speaker BThere's no one way of which haircut is the right cut.
Speaker BAnd everybody has a personality and that's what the world cherishes.
Speaker BSo we have to actually nurture that.
Speaker BBut at the same time, we need each other.
Speaker BWe need infrastructure by salon owners and we need artists working in there.
Speaker BWe don't want to work in one single suite alone.
Speaker BMost of the people like Camino, so what we our vision at Artist ongo is define the boundaries, clarify the transaction.
Speaker BWho is going to offer what and what is the cost of that is and where can be the collaboration can happen.
Speaker BSo that's what we're doing it and that's what we see now why salons and I think most of the salon owners are not against it.
Speaker BWhat their fear when I was a salon owner was how do I navigate the rental system Because I had a concern.
Speaker BYou see the, the worst nightmares like when I say renting, I see a guy who's half drunk and half clothes and coming and speaking loud, doesn't give me respect and, and just says this is my chair, I rented it and I'm going to do whatever I'm going to do that you know.
Speaker BSo when you think about that and he's going to destroy your entire business and you are with your best of your clients and his clients are also drunk or whatever, you know, on the drugs.
Speaker BAnd so you, you imagine as a very, you know, worst case possible.
Speaker BThat's not reality.
Speaker BSo what happens?
Speaker BFirst let's define.
Speaker BYou have certain rules.
Speaker BYou want to rent a chair, you want to think your as a very business person that I have six chairs which can make $12,000 a month.
Speaker BIs it worth it to understand what what needs to be done?
Speaker BSo you clarify.
Speaker BYes, I want to monetize them but I don't have enough time to invest because I'm a hairdresser full time or salon owner.
Speaker BI don't want to disrupt my business and I don't want to have the people who I don't appreciate and respect.
Speaker BThe only difference is now rather than they taking commanding orders from me, actually they're managing their own stuff and paying me a fixed price for that rather than like I'm doing everything.
Speaker BActually most salon was happy about that.
Speaker BYou know, they're like okay, if you gave me a person who's vetted, if you gave me all the tools that I want, just I have to approve or disapprove.
Speaker BAnd if you gave me the people and I get to see them and approve them before they start working and, and don't send me 100 people every day, just send me the same people even if they're coming for three days a week, then they're very happy and I'm happy to make 12,000.
Speaker BSo that's what we do.
Speaker BLast thing that we build your website on our platform, match you with the right people.
Speaker BTake a list of things which you want to check before that we read them their license and insurance.
Speaker BIf you Want and then take a payments from them in advance so that we can pay you before they show up.
Speaker BAnd also give you portal where you can see who's coming, when are they coming, how much they are paid, how much money has gone in your bank.
Speaker BSo we do.
Speaker BWe kind of have this technology here assistant which does everything and we use multiple AI agents like Zoe and Ashley to actually coordinate everything as well.
Speaker ANice.
Speaker ACool.
Speaker AI guess.
Speaker AOkay.
Speaker AThis is so good.
Speaker AI do have one question though that I can't believe I didn't ask, but what you.
Speaker AYou just shared something.
Speaker AYou said that you can see who's coming before.
Speaker ASo the.
Speaker ADo the.
Speaker ADo the t. Do the stylists who are renting the chair, do they have to go like.
Speaker BHow do I say this approval process.
Speaker BSo yeah, there's an approval process for the chair and then we send it for the.
Speaker BSo salons have two options.
Speaker BThey can.
Speaker BFirst time they can say, I want to approve every hair stylist or they can say I'm okay to take a stylist with their hair license and everything else.
Speaker BRight.
Speaker AOkay.
Speaker BSo before they book it, it's not like just you book a restaurant at Open Table and show up.
Speaker ARight.
Speaker BYou book it.
Speaker BThere's a step of approval and vetting.
Speaker BAnd then you get vetted and then you.
Speaker BYou get approved.
Speaker BAnd then.
Speaker BYes, then you're going through that and.
Speaker ADoes the vetting process.
Speaker AAre you able to talk to the.
Speaker BPerson or we do text them, we do try to call them, but we also give the numbers to the salon owners.
Speaker BAnd every salon owner is a different.
Speaker BSo some salon owners want to license well in advance and insurance.
Speaker BSo we make sure that we tell that those hair stylists, that salon needs a license and insurance and they should show up.
Speaker BMost of the times you'll be surprised that this is the same guy you are looking and dying to hire and he happened to be in your three blocks away working in a different salon.
Speaker BAnd you would be looking at that when can he work for me?
Speaker BOr I need this kind of stylist.
Speaker BBut it's just we put the process.
Speaker BYeah.
Speaker BAs a salon owner, you can actually.
Speaker BYou can ask.
Speaker BWe have an AI agent called Zoe and you can feed there.
Speaker BSo when people are making a booking and inquiry, Zoe will tell them before making a booking, this salon owner needs a license.
Speaker BSo bring a copy of that.
Speaker BThe salon owner needs insurance.
Speaker BBring a copy of that.
Speaker BThe salon owner needs xyz.
Speaker BThese are the rules of the salon.
Speaker BPlease follow them.
Speaker BAnd when they show up, same for the hair stylist.
Speaker BWhen the hair stylists are there, they get a cheat sheet.
Speaker BWhat is the WI fi password?
Speaker BWhat is the AC out there?
Speaker BWhere's the back bar?
Speaker BWhat are the rules of this?
Speaker BSo they are not like, it's a handy.
Speaker BI understand every hairdresser is like, we're not very like, like technologically, we, we just want everything up front so we give it after the booking.
Speaker BSo that's a handy to them.
Speaker BAnd they're not, you know, they're focused on their client and they have everything.
Speaker BLike the client says, what is the WI fi?
Speaker BThey just open the phone and say, this is the WI fi.
Speaker AYou know, Nice.
Speaker AAwesome.
Speaker AWell, not to, not to add a, like a last minute add on there, but I, I wanna, I was curious.
Speaker AOkay, well, thank you so much for coming on.
Speaker AThis was such a pleasure.
Speaker AIt was so great to like hear two things in one episode where we get to not only hear about the entrepreneur, entrepreneurial process, developmental process, but we also get to learn about a tool and how, how a founder thinks about their tool, but then a tool also that we can use as well for our industry.
Speaker ASo that was, it was really cool.
Speaker AI really enjoyed it.
Speaker AThank you so much.
Speaker AAnd I imagine that there's probably other conversations.
Speaker AI think it'd be curious to know your thoughts on considering your vantage point.
Speaker ALike, you know, like, where's the industry going?
Speaker AHow's this, what's this evolution?
Speaker ALike, what are your visions for the industry?
Speaker AAll that kind of stuff.
Speaker ASo I'd love to have you back on the show and talk again and.
Speaker ABut until then, I just wanted to say thank you.
Speaker BThanks, Robert.
Speaker BYou're a great host.
Speaker BI'm so, so happy that I was able to make it and you invited us.
Speaker AAbsolutely.
Speaker AAll right, well, until next time, I'll see you later.
Speaker BThank you very much.
Speaker BBye bye.
Speaker BTake care.