Opening a beauty salon can be demanding enough, but staying open and growing your business present their own set of challenges for salon owners. New or inexperienced salon owners (and sometimes even seasoned veterans) often end up making a few common mistakes that can be detrimental to their business. Here are some of the most common mistakes beauty owners make that you should avoid.
1. Ineffective marketing campaigns.
Many salon owners make the mistake of running ineffective marketing campaigns. The Internet and smart devices have forever changed the way businesses market to consumers, and salon owners need to incorporate integrated marketing strategies in order to reach their target market. In addition to running effective marketing campaigns, it's also crucial to measure your results. This helps you identify what's working and what isn't, as well as where to spend more money and where to cut costs. Effective marketing can help you get bodies in your salon chairs and turn first-time visitors into repeat customers.
2. Poor cash flow and money management.
One of the biggest problems beauty salon owners face is effective cash flow and money management. Seeing money coming in from clients each day is great, but in order to stay in business and grow your salon you need to understand where your money goes. Remember, there's a difference between revenue and profit, and a solid financial plan is a must for any successful business. If you aren't really the accounting type, be sure to hire a bookkeeper who can help you manage your money.
3. Too many "special offers."
It can be extremely tempting to run special offers in your salon when times are tight or business is slow, but tread carefully. For one thing, running too many specials without taking into account how it will affect profit can seriously hurt your business. You may be getting more clients at your styling stations but still end up losing money or barely breaking even. Another potential problem is becoming known as the "discount salon." If you run huge specials all the time, it can decrease the perceived value of your services in the eyes of your clients and hurt your brand image.
4. Insufficient employee training.
Your stylists are some of your most valuable assets at your beauty salon, so it's important to invest in their education. Training employees both on beauty techniques and effective communication with clients will ensure that each person who ends up in your salon chair has an exceptional customer experience.
Owning a beauty salon can be rewarding, exciting and profitable, but it can also challenging. As a beauty salon owner, you can help avoid sleepless nights and undue stress by learning from the mistakes of others and avoiding these four problem-causing situations.