The beauty industry is worth over $532 billion and shows no sign of stopping. Since it’s such a fun, creative and exciting business, more and more people are joining the industry. If you want to incorporate multiple aspects of beauty, try opening a salon. Salons offer several services from hair-cutting and styling to nail care to makeup. Before you open your salon’s doors to the public, here are a few mistakes that you will want to avoid at all costs.
Forgoing Market Research
Before diving into a new business venture, research is vital. It may be tempting to jump into work right away, but there are plenty of competitors out there who are looking to outdo you. Before you sign the final dotted line, do research on your competitors and potential clients. During this stage, reach out to business owners in your network, other salon owners, future clients, and even friends and family.
Not Creating a Business Plan
When running a salon, it’s important to implement a business plan. This will help your salon keep on track and act as a guide. Your plan should outline details such as funding and how will you move forward in the market.
Not Caring About Your Location
The location of your salon is crucial to the success of your business. Your salon should be in a location that can be seen and accessed easily. A place with plenty of foot traffic is the most ideal. While you are on the hunt for a property, don’t settle. Find a place that you love and checks off most of your requirements.
Not Realizing the Significance of a Business Logo
One of the most effective marketing tools is a professional business logo. Your salon’s logo will be displayed on brochures, business cards, websites, and a variety of marketing materials. Whenever a client sees your logo, they will instantly associate it with your business. That being said, it’s essential that your logo is eye-catching, recognizable, and represents your business as a whole. Not having a logo will prevent your salon from standing out against the rest of the competition.
Avoiding Social Media
One of the best ways to promote your business is through social media. To not utilize it, it is a big mistake. You will find that many of your clients and potential clients are active on social media sites like Twitter, Instagram, and Facebook. Utilizing these platforms allows you to showcase your services and your team’s talent.
Define your Culture First
Define the type of salon and the type of business you want to run at the beginning of your salon journey. Do you want to run a booth rental salon, a commission-based salon, a team-based salon, or even a network freelance salon? You are building your dream place to work, so define your exceptions of yourself and others sooner rather than later. Who is your dream client? How do they like to be greeted? How will you answer the phone, what will the dress code be? It seems like second nature to you, but if you don’t convey this to your staff and guests, in the beginning, it will leave them guessing and add frustration for you.
Put it in Writing
People forget, lives change, expectations are not clearly defined. Get any employee or booth rental agreements in place BEFORE you add staff to your salon. Have your documents written and reviewed by an attorney. Trust me on this one; you will be glad you did. It will save you thousands of dollars and lots of heartache in the long run. Most salon owners spend more time in their salons than they do with their family so protect your new baby like it was one of your children.
Always keep your spending under control. And don’t think that owning a salon is like having a blank check in your pocket. Keep your start-up costs to a minimum and always run your business like a business, not a hobby. Create a realistic budget and stick to it. Calculate how many hours each service provider will work per week and how many dollars they will bring in per week and create a monthly budget – every month. Most salons run at a 3-5% profit margin. With the proper planning, you can get that number to 10-15%. Don’t wait until you have been in business for a couple of years and you are in over your head to do this.