Updated: Jul 23, 2019
If your dream is to open your own salon, don’t hesitate since it may be the best time to do that.
The salon industry is said to grow steadily and will keep continue growing in the next coming years which is a good sight for people who hope to invest in it.
If you are confused among various ways to start your own salon, this article will give you the complete guide with details on how to run your own successful salon and step up against other competitors.
Keep reading and find out our tips written for you!
5 Challenges Every Salon Owners Must Run Into
First of all, you need to understand every salon has its obstacles regardless of age, fame, etc. But below are the 5 most common challenges you must go through when opening your own salon.
1. The competitiveness of the salon market
Every salon business faces some obstacles in the beginning. The most important thing when running your salon is to keep an eye on your competitors.
Beauty trends are changing every day so that make sure to stay updated with the latest fashions (haircuts, dying, nails, etc.). You can choose to find beauticians who come with an extensive background of trends for help. If not, carefully build a training program to get your employees up to speed.
2. Lack of employee motivation
Salon owners should bear in mind that your employees are your business asset. As a result, it is your responsibility to encourage & motivate them.
When an employee believes that their boss really takes care of their needs, they will be willing to loyally stand by your business regardless of good or bad times. If necessary, offer your salon staff incentives such as a bonus, gift hampers, or even health insurance to make them feel supportive anytime you can.
3. How to get new customers while retaining the old ones
One of the most basic challenges that every business has to face is getting clients. Different salons use a wide variety of tactics to attract clients to their services. To compete, think of as many marketing ideas as possible such as giving attractive discounts, running special offers, and so on.
Meanwhile, walk-in customers are unavoidable. However, it is a big mistake that many salons only give priority to clients who already have an appointment while you can offer walk-in clients some free treatment since they could become your loyal client in your long-term.
4. Salon maintenance will be a hard point
Maintenance of your salon is another important factor that will help you bring your customers back. No one would like to go to an unhygienic place to get their services done. There are many ways to do that such as redecorating your salon in a lavish, paying special attention to lights & chairs,...
However, bear in mind the expenses that you will count. It is important for any business to keep track of their expenses. If you find it hard to do, hiring an accountant to help may be a good choice.
5. How to boost salon product sales
Many salon managers confess that choosing the right product makes them really confused. However, most clients put their trust in the product, so make sure that the product is of high quality. By that, you can solve the problem of how to boost sales for your product. The method of selling products is also essential. Do not be too pushy when selling different products.
Top 10 Golden Rules To Open A Salon Business
1. Start with creating a perfect business plan
It is clear that no business can run properly without a business plan since a business plan acts like a roadmap that will guide your business to success. In spite of that, business planning doesn’t have to be a long-drawn-out process.
In fact, you can put together a lot of the information or even just scribble a few notes on paper as long as every idea is noted down. The point of a solid business plan is to figure out what your business is, how it can become successful, and how you’ll troubleshoot problems.
2. Think about your salon finance
Whether you’re seeking for a bank loan or intending to borrow some money from friends and family, you need to figure out “How much does it cost to open a salon?”, and where it will be coming from.
Most likely, you have been doing a combination of multiple fund-raising methods, and you may be using your own money but you can resist longer. Regardless of which route you choose to take, it’s important to have a clear idea at the outset of where o get the money.
3. It will be a big mistake if you forget about finding a mentor
Have you ever heard of a business mentor? It is an important part of your business strategy as you’re in the planning process, it’s a great time to find a business mentor. Especially, it would be best to find someone in the salon industry because they can answer all the questions for you when you start and grow your business.
4. Let's look for the right salon location
Choosing the right salon location should be your priority because it affects the decision of customers whether to go to your salon or not. You will love to select a place with good traffic, high visibility where your target customers shop or live because they tend to search for the keyword “salons open near me” to get the information.
However, you should know well about the location ranging from the demographics, the local competitors, and think about how your customers will get to your salon. Are there parking lots? Is there any construction project planned on your block?
5. Build your own catchy salon brand
Before you start decorating your salon, make sure that your brand vision matches the group of clients you want to attract. Make sure your customers feel comfortable in your salon, so make it a place they want to visit. This means that you have to spend more time researching the target market and working to create an attractive brand for your salon based on their interests, tastes, and habits.
You don’t have to overlook the importance of building a brand for your salon; the definition of “branding” might feel like something that big businesses do, but it’s necessary to decide your look on your customer base, and creating a brand is a key part of that process.
6. Don't forget to provide your customers with the best service
After creating an environment that your customers will love, the next step is to offer excellent customer service. Expert's advice is you should provide an experience for your customers, it’s not just about service.
Consider your customer service strategy early on if you don't want to be pushed backward by other competitors. Also, you may want to look into some tools to help you deliver better customer service like point-of-sale systems which provides solutions to the real problems of companies.
7. Make sure to set aside some budget for marketing
Every spa owners want to get the word know about their salon, and surely getting involved in your community is a great way to do that. One way to do that is to host an event or a small charity event to attract more customers—for example, sponsor a school play to organize beauty workshop series to attract customer's attention.
You do not only want a creative marketing campaign, but you also want it to be as low-cost as possible. Setting aside some money from your revenue for marketing will be a wise idea or you’ll struggle to execute a marketing strategy.
8. Utilize your salon social media to boost connection with customers
It is undeniable that social media is an important component of your marketing plan. It is not wrong that you want to set up an account on various channels, however, make sure that your target market uses those platforms, and that you have the bandwidth to post content and commit to them.
It’s a good idea to open an Instagram account, as it brings a good image of the visual business. Start by getting a sense of what hashtags are popular within your salon industry and create a content strategy, as well as follow other local businesses to know what are they doing to compete.
9. Hiring low-quality staff would be a big mistake!
Salon staff's experience, skill & personality are 3 elements that affect customer's judgment on your salon. In fact, you don't really need to hire talented employees, however, hire someone who fits your requirements.
One thing to remember is that you can’t train someone to love and nurture your clients so that personality is one factor that worths consideration. Choose your salon members with good attitude instead of the best skill but bad behavior.
10. Revisit your business plan to ensure things are being done correctly
A business plan should always be viewed as a work in progress each passing month. Time flies, you will learn more about your business and your customer base.
It’s a good idea to go back to your initial plan, read it over, and make sure you’re still on the right track. You can run a SWOT analysis on your business to check its strengths & weaknesses and find solutions to that.
One Way To Run Your Salon Business Smoothly
Running a salon requires a lot of techniques & patience and sometimes, you may find it really hard to maintain your salon properly.
We are living in a new era where technology can solve almost all the problems. To keep up with the new world, the company must consider high-tech solutions for their business, not except for salons. One of the most popular ways of managing salons is using salon pos systems.
Among those, bePOS has been proven by hundreds of experts and salon managers for its significant effectiveness in solving salon’s problems ranging from booking, inventory to employment by integrating the most advanced 4.0 technologies. In addition, bePOS is a cloud-based system so that you can control your salon everywhere, every time!
Download bePOS right now to get FREE trial & boost your salon's revenue up to 30%!