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Beauty Salon business - Complete Controller

While it is common for many small businesses to fail within the first two years, you can still start a successful hair or beauty salon as certain factors can guarantee success.

1.   Location of the salon

While salons can succeed regardless of where they are located, an excellent location can make your life easier and improve the chances of success. Spend time finding a location that is just right, has passing traffic, sufficient footfall, and ideally a car park area.  Check out America's Best Bookkeepers

You may regret settling for the second-best later on. So, even if you have to wait a bit longer and pay a more significant amount of rent, it would be best to settle for a highly visible location and attract a large number of walk-ins and new clients.  

Keep in mind that your salon premises will be a long-lasting commitment and the most significant monthly expense, so choose a place wisely.  

2.   Do you have what it takes to be an entrepreneur?

You may be brilliant when it comes to beauty. However, that does not guarantee a successful business overnight.

Being a successful salon entrepreneur requires an entirely different skill set than that of a beautician. You must do your research before starting the journey to ensure if you are really up for it.

Here are some things you can do to prepare yourself for the upcoming load of responsibilities:

  • Observe a salon owner for a day
  • Sign up for a salon management course
  • Talk to other salon entrepreneurs. Check out America's Best Bookkeepers

Not everyone can run their own business. You can further evaluate your decision by doing these things and deciding if you are suited to start and run your own salon business.

 

3.   Avoid overspending

A lot of new owners end up overspending while equipping the salon. You may want a state-of-the-art salon with the latest equipment, but it is essential to ask yourself whether you need them.

Only buy the necessities and save the extras for when your business is booming. It is never a good idea to burden yourself with a large amount of debt when you start off and barely have any clients.

Find a balance. The majority of the time, all you need is a clean, tidy, and attractive salon. So it would be better to save up money to promote your salon because what would be the point of buying costly equipment if you barely have any clients.

It would also be useful to hire someone for bookkeeping to manage all your funds so you can focus more on other critical managing duties. Check out America's Best Bookkeepers

4.   Promote

It is essential to be realistic that a swarm of clients will not automatically come bursting in as soon as you open your salon doors. For this reason, marketing is essential. You need to announce your location, services, and specialty to the world.

Customers cannot read minds, so bright, frequent, and consistent communication is key to your salon’s success. Design a solid marketing plan for your salon to ensure you get the connection right.

It can be easy to forget the importance of marketing a startup when managing all other aspects of starting the business.

Any entrepreneur who made it will tell you the impact of new marketing. Create a marketing plan right after finalizing your salon location. It would be a good idea to aggressively start promoting your startup for several weeks before your salon launches.

5.   Leadership is essential

Lastly, one of the biggest reasons why a lot of startups fail is due to bad leadership skills. Starting a successful hair and beauty salon requires you to work within the premises and work on the business. Most salon owners, mostly at the beginning, think that they should be the primary earners. They consider it their duty to make the highest amount of money every week and end up overworking and overburdening themselves while their team does not have anything to do and waits for clients. Your primary focus should be on smoothly running the salon business instead of providing beauty services. You do not have to spend your entire day behind the salon chair- upholding your startup should be your main priority.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

The majority of startups face harsh challenges while trying to survive. An estimate of 80 percent of all small businesses ends up failing within 18 months. Factors including market conditions, financial issues, tax issues, mismanagement, and poor planning are some reasons startups fail. How can one overcome all the challenges and deep-rooted obstacles of beauty salon ownership?

Get help

First of all, employing professionals such as attorneys, bookkeepers, and business managers can offer the salon owners with help when it comes to managing and operating the business. Because no matter how talented, passionate, intelligent, and knowledgeable they might be, you can’t excel in every field. Even though beauty salon owners might find paying the professional fees for these tasks a financial burden, the benefits, in the long run, will help you focus more on the tasks you are good at. Check out America's Best Bookkeepers

Salon owners should spend most of their time directly dealing with customers instead of trying to manage everything from the services to financial responsibilities. It can be helpful to outsource your bookkeeping and give yourself a break. No matter what kind of salon you have, a bookkeeper can handle all your bookkeeping work, salon books, and back-office processes to support your business.

Education

Another great option that can help you overcome the challenges of owning a beauty salon is taking courses related to business management. Knowing the fundamentals of marketing, finance, and accounting can help you make the right decisions for your business. It can be helpful to understand business rather than be limited to industry-specific knowledge as it can help you make planned choices for your beauty salon. Quality education will make sure you get good outcomes when it comes to business—a well-managed business, whether a salon or anything else, is guaranteed to flourish.

Have an open mind

Check out America's Best Bookkeepers In recent years, the beauty salon industry and profession have drastically evolved, business methods and practices that worked in the past are old-fashioned and may not work well in the present. For this reason, it is crucial to consider the opinion of other people and then determine what would be right for your business.

Cash reserves 

It is important to have at least six months of cash reserves to support you until your startup starts generating profits.

Pricing

You can overcome major financial challenges if you price your services and products correctly and keep in mind that you can either provide the best services or the cheapest. It is impossible to do both and can ultimately lead to failure.

 

Perseverance Check out America's Best Bookkeepers

It can be easy to give up when things get too tough to handle, but it is important to persist and never give up. Not just a salon, but owning any business comes with both sacrifices and rewards. Business ownership is not an easy job, and you are bound to face a lot of problems and challenges, but what matters is that instead of giving up, you determine the source and address it head-on.

 

Talk to other experience beauty salon owners

The best way to overcome any challenge is by talking and depending on the insight and expertise of people who might have faced them before. You can learn a lot from beauty salon owners who have experienced the same obstacles as you while starting and overcame them. Certainly, they can provide beneficial entrepreneurship advice. It would be a smart move to join an association in the beauty industry and create social relationships at its regional meetings or conventions. Realizing that even the owners who are incredibly successful now were in your position at one time and used to have similar concerns as you do now. It can reduce a lot of the stress that comes with running a business and motivate you to persist.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Closeup of a young female hairdresser in salon. Hairdresser holding scissors standing with hands folded at salon.
Women love fashion and, if you look around, almost every corner has a beauty salon of some kind. Running a beauty salon is not easy, especially when the economy is difficult. Someone once said: “If it is your passion, then make it your profession and you will see a success.” However, when running a business, it is not always the case; your passion can only get you so far as an entrepreneur. Below, we will focus on owning a beauty salon and what the biggest challenges are when you are in this industry.

Competitive Market

Every business faces some struggles in the beginning. The most important element when running a business is to keep an eye on your competitors. Trends are changing every day, it seems; make sure to stay updated with the latest fashions (haircuts, dying, nails, etc.). Hire beauticians who come with an extensive background of trends. And, if not, offer a training program to get your employees up to speed. The services provided by your beauticians will have a huge impact on your business progress.

 Employee Motivation/Incentives

Your employees are your business asset. As a business owner, it is your responsibility to encourage and motivate them. When an employee believes that their employee will take care of their needs, they will be willing to loyally stand by the business, through good and bad times. Offer incentives such as a bonus, gift hampers, or even health insurance. If you offer them support and make them feel secure, they will be one of the most positive assets to your salon.

Managing staff is not an easy job. Be friendly with your staff, avoid confrontations when you are dealing with issues, allow them leaves on holidays or when sick, etc.  The more flexible you are, the more willing they will be to go the extra mile.

 Getting New Clients/ Retaining Old Clients

One of the most basic challenges that business owners face is getting clients. Different businesses use a wide variety of tactics to attract clients to their services. Think of different marketing ideas, give attractive discounts, run special offers, and let people know you are there. Word of mouth is a great marketing tool; do not rely on social media only, although it is a great way to let people know about your salon. Display prices at the front desk, along with special offers.

When your client leaves the salon, try to make sure they have already booked their next appointment. Offer them lower rates compared to other salons. Create an ambiance in your salon that will make your client feel like home and relaxed. Involve your client in discussion about fashion and trends – women (and some men!) love talking about it. At times, there will be walk-in customers; many salons give priority to clients who already have an appointment, but walk-in clients give your business a boost as well, make them feel welcomed. They could possibly become a long term client.

Initiate a program where clients earn points for every service they get. When they have reached a certain amount, give them a free service or product. Another great way to bring clients to your salon is giving vouchers on their birthday. Women love to be pampered on special occasions.

 Salon Maintenance

Maintenance of your salon is another important aspect that will help you bring your clients back to see you. No one wants to go to an unhygienic place to get their services done. Decorate your salon in a lavish, trendy style to make it attractive for clients. Pay special attention to lights and chairs and use fresh, natural oil diffusers; they help create a warm, inviting ambiance.

However, when maintaining your salon, keep in mind the expenses that you will bear. It is important for any business to keep track of their expenses. If you find it difficult, hire an accountant or bookkeeper for your bookkeeping needs.

 Product Sales

Choose a product that you believe in. Your clients put trust in your choice, so make sure that the product is of high quality. Learn about different products and share your knowledge with your clients. Your product sales can bring a lot of profit to your business. If you feel uncomfortable selling, then just acquaint your clients with the products you are using on them while providing services. Most importantly, do not be pushy when selling different products. 

Conclusion

Owning a salon is, no doubt, challenging, but also rewarding and fun if you love it. Come up with strong strategies to ensure a successful business. Keep in mind, there are challenges in every new business, do not give up. Work with key performance indicators to measure your company’s growth.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.