Why salon business

They expect it. Now, this does not mean you should be pushing products on your clients. Instead, use your expertise to create value for your clients by giving a professional and personalized take home recommendation. A simple habit to install with your staff is simply to alway tell your client what product you are using on them and why. Clients want to know this. It also opens a very natural conversation around your retail products which significantly increases the likelyhood they will purchase salon retail at the end of their visit.

A good way to grow your salon business is to promote your higher priced services and products over your basic products. In order for you and your staff to be able to trade customers up to a higher priced item, you need to make sure your product and service menu enables this.

Not everyone are ready to pay for your most expensive service but many of your clients will. Even if your client do not go for your higher price service, having it will still add value to your business. Our brains work that way. When we see a higher priced service next to the one we go for, we feel the price of it is lower. A higher priced service sets a reference point for what services costs and suddenly it looks as if your base service has a really attractive price.

By using a combination of offering add-on services as well as trading up customers to a premium, higher priced, service, you can significantly increase the value of each customer visit.

This can have a tremendous impact in your business. What salon owners often overlook is also price increases. All business increases their prices regularly, typically ones per year.

People continuously earn more, and businesses charges more for the there products and service. Too often I see salon managers being hesitant to increase their service prices.

A worry can be that their loyal customers will be up set as you are now charging more. As your suppliers will increase their prices and your staff will demand higher salaries. The first four ways to grow your salon business have been focused on driving your top line. That is, the sales you generate in your salon.

Growing your top line is the most healthy and sustainable way of growing your business. In the end it means that more people are visiting your salon and are paying more for for your products and service. But we cannot only focus on top line. We need to also consider the bottom line.

Your profit. The average salon profit margin is about 8. All salon will be different. But this is at least a reference point you can take when looking at the profitability of your salon. If you are just in the process of starting a new salon, you can read my article on how much it costs to start a salon.

In this article, I break down the common salon start up cost and salon operations expenses. If you could wake up in the morning to see that your salon business had already generate significant sales. It can be done. You just need to think a bit outside the box or salon should I say.. To grow your salon business you should look at adding additional revenue streams to your business.

The more income streams you add to your business, the more ways you have to grow and the less risk you run incase one of your income streams slows down. As you enter into new spaces where you can generate income, you need to be prepared to learn and try out new things. This will take some time and trial and error. To identify new income streams, you need to start by looking at the capabilities and strengths your have today.

You then brainstorm how you could put them to use in a different way. They are typically related to your reputation, your physical location, your skills, and your network. But it could be other things. If you have a good name and reputation in the industry, you can work to become an ambassador for a brand in your industry or in adjacent industry.

Maybe you run a barber shop and become the next ambassador for a new electric shaver launch. Brands always look for partnerships with ambassadors that have a good fit with their brand. Similarly, if you have a good following on your social channels, you can earn an income by promoting the products your work with in your channel. Obviously, to earn bigger money here, you need to work up a larger follower base. If you run a hair salon, you probably have good cut, style or color knowledge.

You could turn this knowledge into an online business. You can for example record how-to videos for YouTube and earn income on ads when people watch them. This way you can generate income even while you sleep. You or your team could also educate other hairdressers. This would be a freelancer setup you could run in partnership with some other education organization unless you are up for creating your own academy.

If the plan is just for you, a basic one-page document can suffice and consist of an executive summary or a Lean Plan. It should contain the following:. You should attempt to do this yourself. This is your dream; only you know its potential and how you want it to be. A business plan is not a document you create once and store in your bottom drawer. Successful businesses review and update their business plans when circumstances change.

For more great tips, check out our full resource on how to set up, run and grow a successful salon business. You can always connect with Julie on LinkedIn! Got general feedback?

Let us know either in the comments below or tweet us ThePhorestWord! Do you take the money you earn from retail sales, put it in your account and pay bills with it? You have forms waiting to be filled out and documents that need to be […].

From hairdressers to medispa and beauty, this business had […]. By clicking submit you agree to Phorest Salon Software storing and processing this information for your request. Please review our Privacy Policy. Subscribe to the Phorest blog for topics on leadership, management and salon success, with insights from the industry's top experts.

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again. This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

More information about our Cookie Policy. Finance Finance. September 12, By Julie Lee. In business, taking the longest route is time-consuming and expensive, and as a new salon owner, the two things you have least of are precisely that: time money You need the shortest, fastest and cheapest way to get there. There are a lot of varieties such as: nail salon, spa, hair salon, etc.

This is why its the most important factor, because the space needed and equipment varies depending on the choice. Knowing the profile of clients wanted give the owner more flexibility when choosing the location of the franchise and, depending on the location of the franchise, depending the fixed costs.

The more capital a person has, the more options for the salon the person wants to open the salon would be bigger, multiple chairs, etc. However, it is important to keep in mind that even though there will be an increase in economies, there will be a bigger increase in financial risks in case the business doesn't turn out as planned. It is important not to push too far when it comes to finances. Remember when we talked about the location? Well this has the same importance.

According to many researches, in the U. So, depending on the area a person wants to put their franchise on, depending on the cost of the sqft. Yes, knowing the rent, the customers profile and the location is important, but people should not forget about the importance of the equipment and the initial supplies of the salon.

This involves things such as: styling tools, aprons, chairs, etc The beauty sector is a very demanded sector, which is why it is a great business to invest in. Having great demand is very good but, the more the demand, the more the competition.

As stated above, the franchise is a proven system, people are investing on something that already exists. When selling a franchise, Franchisors are "giving" their brand to the buyer as well as the consumer recognition and marketing. One of the key benefits of buying a franchise business instead of starting a business from scratch is that, as you represent a brand and every franchise has to follow the same guidelines, the franchisor will provide the franchisee with any support needed in order to get the franchise up and running.

The main reason people want to start a business of their own is because they do not like working for someone else, they want to have they want to be their own boss; by buying a beauty franchise, they are able to be their own boss but have the benefits that working for someone else has marketing, guideliness, trials, etc..

Owning a franchise business is tough that is for sure, but the message here is that the business plan which involves, costs, marketing, idea, etc.. All the paperwork and boring excel sheets nobody wants to has been done. The message stated here is that the "big mistakes" have been made by the creators of the franchise, the trails, tests and errors have been made by others, and because they learned from their mistakes, a "manual" has been made and hopefully will not be made again.

As stated before, the boring excel calculations have been made, so based on the franchisors experience, they will develop a working business plan and teach the franchisee how to manage the finances.