Studio 904 Salon Proves True Beauty Is In Making a Difference
Graham & Dunn supports small business in its innovative practices, commitment to community
September 1, 2002
At first glance, Studio 904 looks like many upscale hair salons. Well-coifed stylists provide clients with trendy haircuts and color consultations. Sleek chrome furniture and designer lighting showcase a chic environment. Rows of smartly packaged shampoos and conditioners line the reception area. It is a place where you would expect high-quality beauty services and supreme customer service, and Studio 904 certainly delivers both.
Look a little deeper, though, and you will discover the true beauty of Studio 904. Owner Kay Hirai and her team of 20 employees are running a thriving small business built on innovative business practices, a culture of lifelong learning and a steadfast commitment to community. The salons, located in Pioneer Square and on Mercer Island, stand out in a crowded beauty industry and provide an example from which companies large and small can learn.
Since 1995, Graham & Dunn has applied its unique business perspective to Studio 904's challenges, providing counsel in legal matters that can make or break a small business. "Most recently we've consulted on lease issues and corporate matters," said Marcia Fujimoto, a shareholder at Graham & Dunn.
Studio 904 Shines Through Innovative Business Practices
Studio 904 is founded on business practices that make most salon owners shudder. "We do not pay stylists on commission or tips because the system does not promote teamwork," Hirai said. Instead Studio 904 offers its employees a salary and benefits, such as 401(k), vision and dental.
"A compensation package is practically unheard of in the beauty industry, but I think it encourages employees to think about long-term financial management," Hirai said. Employees also collaborate on salon-wide goals for sales, client retention and productivity; Hirai pays bonuses based on the team's collective results.
Potential employees undergo a rigorous interview process, in which the salon's HR specialist introduces Studio 904's philosophy and business practices. Those that make the cut participate in a regimented training process, designed by Hirai, to ensure that they provide clients with consistent, high-quality technical skills and customer service.
"Our Kaizen, or lifelong learning, training system has four modules," Hirai said. Pay raises are tied, in part, to progression through the levels of skill certification. Three of the stylists double as training coordinators and coach new stylists through the levels.
Trina Jennings, a salon coordinator at Pioneer Square, joined Studio 904 six months ago. "I had to grow both professionally and personally in a very short timeframe," she acknowledged. Most beneficial was a 360-degree team evaluation designed to provide Jennings with constructive feedback. "My teammates praised my strong points, and suggested ways in which I could improve. The feedback was amazing," she said. Jennings was voted a five-star employee in July, a team recognition award that makes her proud.
Studio 904 Thrives on Teamwork
Hirai believes that many small business owners burn out because they are in the office seven days per week, 24 hours per day. To avoid this path, Hirai encourages her team to take ideas and run with them. "Everything we do at Studio 904 is about building teamwork and encouraging leadership," Hirai said.
For example, one stylist has a gift with cosmetics so Hirai asked her to research a make up line for the salon. Another employee, a top trainer, is leading a project to expand mini spa services-such as nail care and waxing-for the salon.
Teamwork also is what drew Hirai to Graham & Dunn. "I've known Marcia Fujimoto for years, and I routinely bounce business ideas off of her. Marcia has helped me considerably and also connected me with other attorneys at Graham & Dunn, such as real estate specialist Maren Gaylor, who has aided me on lease negotiation issues," Hirai said.
"I like knowing that I have access to the entire Graham & Dunn team and applicable expertise when I need it," she added. "Graham & Dunn's attorneys work cooperatively for the good of their clients. I'd say our two companies share the same teamwork philosophy."
Salon Specializes in Community Outreach
In an industry that is mostly about vanity, Hirai and her team are determined to make a difference. "I want my employees to remember that lots of people in this world don't have a nice lifestyle. They need help just getting by," Hirai said.
In fact, community service is central to the way Studio 904 does business. It is part of the salon's vision statement and is built into the Kaizen training curriculum. Hirai also encourages employee involvement by providing them with 40 hours of paid time per year to perform community service projects.
Many of these projects are coordinated centrally through the salon by senior stylist Kim Van Tassel, who has been with Studio 904 for six years. For example, Studio 904 recently spearheaded a fundraiser for First School, a school located on Capitol Hill for children who are homeless. The team also provides haircuts for teens and children at Ryther Child Center.
Other community organizations that have benefited from Studio 904's concerted efforts include the Northwest Aids Foundation, Children's Orthopedic Hospital, and the YWCA Young Leadership Program.
Clients have responded favorably to the salon's community-minded efforts. "Every two months, we select a new charity to support, many of which are identified by Studio 904 clients," Van Tassel said. Donation boxes and literature about the rotating charities are visible throughout the salon.
Van Tassel also worked with a chemist to formulate Studio 904's exclusive five-step hair product line, called Products for a Better World. "Each month, we donate five percent of the sale of the products to a community organization," Van Tassel said.
Hirai Achieves Growth Through Business Ownership
Hirai learned the ropes of small business ownership through trial and error. "I was starry-eyed when I started, and I have had to build my business savvy," she said. What has remained constant is her vision: to be a revolutionary business and to create a unique economic opportunity by improving the quality of life for all the citizens the salon serves.
"It took me a long time to achieve this vision," Hirai said. "I spent the early part of my career frustrated because I didn't fit the industry mold."
Hirai did not like the way the beauty industry operated, where stylists within a single salon compete for customers and have to find their own advanced training opportunities. "I believed that anyone who spends the time and money to go to school should be able to make a living," she said.
Even when she opened her own salon in Seattle, it took awhile to get the formula right. "I had to change the compensation system, and figure out how to instill my philosophy and learning culture into the business," she said. "At first, no one wanted to be a part of it."
Time and an unwavering dedication to doing the right thing changed that. Studio 904's reputation began to gather attention in the business community. In 1982, Hirai was invited to join the governor's Small Business Improvement Council. "It was a turning point for me because I was able to advocate for changes that would favor small businesses," Hirai said. Today she is active on several boards, including the Asian Counseling and Referral Service, Seattle King County Workforce Development Council and Economic Opportunities Task Force.
Graham & Dunn attorney Fujimoto marvels at Hirai's personal growth as well. "When I first met Kay, she relied heavily on her CPA to run the financial aspects of her business. Today she has a firm grasp on Studio 904's finances," she said.
Salon Garners Local and National Awards
Studio 904's business practices and community service efforts are far from going unnoticed. The salon has won numerous kudos for philanthropy and small business success. "We just learned Studio 904 won the 2002 Better Business Bureau International Torch Award for Marketplace Ethics for our company size category," Hirai said. "We competed against entries from more than 100 Better Business Bureaus in the US, and we are the first ever to win this award from Washington State. It's very exciting."
This announcement comes on the heels of the 2001 Oregon/Western Washington Business of the Year award, a big coup for the Studio 904 team. "This award makes me the proudest because a customer submitted our name," Hirai said. She took the whole staff to the award ceremony, stating that they are most deserving of the recognition for their daily efforts.
Building a Future for Studio 904
What is on the horizon for Studio 904? "My dream is to create economic opportunities for people with limited resources," Hirai said. To that end, she is talking with Graham & Dunn about setting up a non-profit arm to her business. "We cannot hire every person we meet but perhaps we can help people through a separate organization," she said.
While Hirai admits that her ideas are sometimes bigger than her funding options, you cannot help but think she will figure out a way to achieve her goals. Her employees wholeheartedly agree, describing Hirai as inspiring and approachable.
"I'm motivated every day by knowing that my company is making a difference in the lives of my employees and in the community," Hirai said. "We are doing so much more than the average small business."
For more information on Studio 904, visit www.studio904.com or call 206.626.0904 (Pioneer Square salon) or 206.232.3393 (Mercer Island salon). To contact Marcia Fujimoto, call 206.340.9637 or e-mail at mfujimoto@grahamdunn.com.
The Studio 904 team is dedicated to customer service and community.
