ARTICLES

The Beauty Behind Tax Benefits for Zazú Salons

by | Jul 3, 2018 | Business Strategies, Tax Planning

Sam Segretto has built a business on making people look beautiful. He, his wife, and three sons own the upscale Zazú salons with locations in Chicago, Hinsdale, Wheaton and Naperville.

Being a business owner is never part-time. “We live it,” he says. “It’s 24 hours, thinking about it, talking about, it’s part of who we are. It’s not 9 to 5 and we walk away. It never leaves us.”

So when Segretto decided to switch accountants, he wanted to make sure he picked people who cared about his company as much as he did. “There’s a distinct difference between Apex in that they actually drive a huge amount of satisfaction in seeing us earn more,” said Segretto.

“I’ve been in business for 38 years. I’ve been working with Apex for about seven years,” said Segretto. “Prior to them, I had an accounting firm. I never had any tax benefits ever prior to working with Apex in terms of getting any type of a refund. Every year since I’ve been with Apex, I’ve gotten a substantial refund so they have pointed out the many tax loopholes I was missing in the past. I had been missing out on a lot!”

The Tool of Choice: Business Strategy

More than knowing the tax code, he points to the strategic business strategies he has used through Apex’s FutureBiz program, a small business solution focused on improving profit, minimizing taxes, maximizing business value, and growing leadership. “Accounting is business planning advice – it’s a necessity when you run a business that looks out for tomorrow,” says Segretto.

How did Apex help on this front? Segretto says, “Being in business and owning commercial real estate, there were things like cost segregation and there was a lot of tax benefits I was missing out on by not having cost segregation – tens of thousands of dollars. Tax preparation, after the planning and talking . . . there was actual dollars I benefitted from. To get a refund is a great thing.”

Apex’s FutureBiz also helped Zazú enhance its business value by providing forums for Zazú managers. Through different exercises, managers learned how to lead more confidently with a clearer understanding of their roles. “It has fleshed out problem areas that kind of were lingering for a long time, a real positive outcome from that,” says Segretto.

Objectivity Paramount for Family-Owned Businesses

“I have three sons that work with my wife and I,” says Segretto. “Apex has been a good go-between for all the parties in the business so we have a more unified vision and strategy. More than just tax planning, it’s a good sound business strategy for achieving growth and moving forward with a succession plan for our sons taking a bigger role in business.” He adds that the people at Apex were “easy to work with and fun.”

One of Segretto’s sons graduated with an accounting major and worked for a Big 4 firm. As he gradually took over the CFO position for Zazú, Apex streamlined the transition. Having outside objectivity and expertise raised the business value across the growing company.

The Refund, the Car, the Celebration

With a tax refund comes decision-making. How do you redirect the extra money? Zazú’s luxury upscale brand means ongoing renovation. “Our business is a fashion business – but there’s a fashion to anything, a way of thinking, seeing things differently and it costs money to do that,” says Segretto. “Having a plan on a specific amount for renovation and then actual cash, being more liquid and putting more back into the business. There’s not only physical renovation, but better benefits for the staff, more reasons to be employed by Zazú.”

Of course, like most business owners, a tax refund is also a great way to buy something you’ve long pined for. For the Segrettos, that meant a new set of wheels. “One of the things I did was buy a nice car for myself,” says Segretto. “And Jim and Lucas wanted to see it. They got a kick out of it. It was like showing it to one of my friends or my brother. The other accountants I worked with didn’t care how much I was or was not making, but Apex wants to see the people they work with succeed.”

Segretto circles back to why he started the business, “It was a type of business that I loved. My goal was always to be the best that I could be and for my employees to be the best they could be.”

Beautiful.

Minimizing taxes is a beautiful thing that started with strategy for Zazú. Are you ready for 2018?