E161: Hitting Higher Goals from Being Stagnant at $10-Million with Habib Salo

Entrepreneurs Circle

Habib Salo is the CEO of Young Nails, a nail care business that grew with the help of VaynerMedia and every portion of it from being stagnant at $10 million. Habib’s mom started a cosmetics company back in 1992. She had a passion for the nail industry and they did everything in their power to support her. It was a family business after all. Greg, the older brother, became a licensed nail technician after switching gears from firefighters' training. Habib, on the other hand, jumped in a few years later, taking a detour from medical school and a life in music.

Today, 24 years later, Young Nails Inc. is more than a professional nail care manufacturing company exporting to over 40 countries worldwide and distributing domestically to over 3,000 stores.

Here are some power takeaways from today’s conversation:

• Operating out of 25% fear and 75% challenge
  
• How they got out of debt
  
• Breaking through their revenue ceiling
  
• About the VaynerMentors program
  
• The changes they’ve made to grow their business and brand
  
• How to differentiate yourself in a saturated market
  

Episode Highlights:

Operating on 25% Fear and 75% Challenge

Habib says he doesn’t operate totally out of fear. It’s 25% it's fear and 75% of taking the challenge of how he could get to the next level. Because when you reach $10-million revenue, that’s almost like a ceiling that’s hard to crack. For them, it’s not the money and having to want more. But it’s about not taking things for granted because things can change in just a couple of seconds.

As they were still starting out their company, they found themselves in deep debt. Habib says that in order to get yourself out of this rut, you have to figure out how to manage your debt. Have a realistic timeline. Then also figure out a way to bring money in each week.

Breaking the Glass Ceiling

When they got debt-free, they connected with VaynerMedia. They had already hit $10 million in revenue and couldn't get past. And so, Habib’s company joined the VaynerMentors Program run by The Sasha Group, a VaynerMedia company. They work with small businesses as a mentor to help you double or triple the size of your company. It's nothing like traditional consulting. They really get into your business, understand your business, and put a plan together to put hyper-growth behind your organization.

Habib says they didn't see results in the first year. But they saw the change happening within their company. For instance, their model of business traditionally has been distribution. But with Vayner, part of the strategy was for them to go direct and build out their own eCommerce business. They also had to elevate their brand to the consumer.

And so, while distribution was going down, eCommerce was going up. Because of this, they didn't see a change in revenue initially and even their profits went down. And it wasn't until the second year that things really took off. And even now in 2021, things are skyrocketing for them. Now 80% is eCommerce, and 20% is distribution. This has been a complete flip from what they've done previously.

How to Differentiate Yourself in a Saturated Market

This is where content is vital. You have to pump out content consistently on all platforms. They put out 60-70 pieces a day on all platforms. And relevance is key. They're not selling their product. The core of their content is teaching people how to be successful and how to do nails successfully. Then add in some entertainment for some good laughs.

Resources Mentioned:

VaynerMedia

www.youngnails.com

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