Q. In addition to your salons and spas, you recently founded a school that teaches both massage and cosmetology. What was the genesis of that idea?

A. It actually came about as a need. We were having very steady growth in our business and didn't have the staffing to meet the demand of our clients. We weren't able to train fast enough from the schools that were existing and the quality was not what our clients were accustomed to. So we were having to retrain, and it was very expensive. So I looked at doing a school. We looked at all of the other schools and felt that we would raise the bar in education in the state.

Q. What kind of response have you received from students to your school?

A. Right now we have about 25 students, but we hope to have as many as 100. The students are mostly from here, but some are from the Mainland. Not only are we teaching them a higher level of technical training, we're also teaching them business, which I didn't have when I went to school. Multi-tasking, because so many of the opportunities are in spa hotels. So if you can multi-task, you can have the opportunity of being able to add a massage if a client comes in for a haircut. We're going to be doing some marketing next year in Asia for our advanced training.

Q. It sounds like there is a lot of competition in the industry for hair stylists.

A. The business is booming. It's amazing how much business we are turning down, and that's difficult for a businessman. We're not the only ones. Every salon in the state of any significance is looking for talent. They're always trying to steal our staff because they have good training. This is a national issue.

Q. Do you have any plans for future expansions?

A. In the last 10 years, we've built seven salons and spas and took over our (hair-care) product company. We've reached a point where I could keep squeezing (current operations), but we're ready now to go forward. I'd like to grow more. We're looking at expanding the product line part of the business. We're going to be doing some consulting. We've also had interest in expanding the school division, so that would take more capital. As I get older I need more challenges. I'm feeling too complacent, and I'm an entrepreneur.

Q. Where does your funding come from?

A. We finance from inside the company. I do allow people on my staff to come in as investors, but I maintain control of the companies. We take short-term notes from the bank sometimes, but we do not have an investment group. That doesn't mean I'm not going to do that in the future because I would like to expand more, and it will take more capital to do that. We've been very lucky that we've been able to do it so far just off our own cash flow.

Q. What is the secret to keeping a salon chain going for 30-plus years.

A. If the only reason why you are doing it is to make money, it's not going to have longevity. Because if you don't have a passion for what you are doing and everyone doesn't feel that, and they're not part of that, it just starts breaking down. And I've seen it. That's why salons don't last. It's a very difficult business to continue that charge. You've got to consistently have your staff feeling passionate.

Q. How important is employee motivation in the salon industry?

A. If someone's not feeling good about their job it shows in the numbers. So we try to keep them motivated, and I think it has to come from the top. Also your educators have to be motivated. We travel a lot to these shows so they get excited about that and then they come back and try to put that through the ranks.

Q. How has your leadership style evolved over the years?

A. There's nobody really below me. Frankly, I do make the last decision, but I do really listen to my people. I didn't used to, but that's one of the things you learn as you get older. It doesn't matter how it gets done, if it gets done and it's with integrity and credibility. It doesn't have to be done exactly my way.

Q. What does it take to become a successful stylist?

A. We could teach anyone how to cut hair. It's a technical thing. But to have that little edge, that little talent, it comes from within. It can also come from being in an environment of high talent and energy. I don't think you have to have some innate, inborn thing to be a successful artist. I think you have to practice and be around that kind of energy.

Q. Economic growth has been pretty impressive lately, but all economies eventually go through slow periods. How would you expect the salon industry to fare in less favorable economic conditions?

A. The only businesses that made money during the Depression were cosmetics, alcohol, beauty salons and theaters. After 9-11 the increase in Revlon's lipstick sales was 26 percent. Because after 9-11 every woman went out and bought a lipstick to make herself feel good. If a woman comes into your salon and you do your job right and she feels great about herself and she looks great, you've done something good. It's a good feel-good business. So during slow economic times we don't see a shift in our business really.

Q. How did you end up in Hawai'i?

A. I was sent here from the Glemby company in New York in 1969 to be the art director for the Liberty House chain. They only allowed you to stay in a town for six months at the most. I wanted to stay in Hawai'i. I went back to New York and I said "Man, I don't want to be in New York and I do not want to go through winter here." I had a Hobie Cat in Hawai'i and I loved the water. So I came back, and they took me back at Liberty House as a hair dresser. I'm a lucky guy. I made a lifestyle decision to be in Hawai'i. There were times where I would say I should have stayed in New York. I go to New York a lot — four or five times a year — and I'm so happy I get to come home and put my flip flops and T-shirt on. I love Hawai'i.

Q. Are there advantages to marketing a hair-care product line from Hawai'i?

A. The Hawaiian identity. I didn't even think about that when I was 21 years old. I was interested in my Hobie Cat. I didn't think about the fact that being in Hawai'i was going to be a cool thing eventually because it's such a cool place. It's just a great identity to be associated with. It's a brand itself. So yes, to answer your question, Hawai'i definitely is a great branding opportunity for a hair-care line.

Reach Alan Yonan Jr. at ayonan@honoluluadvertiser.com.