The salon business is very lucrative and fulfilling. However, since ~85% of owners lose money, the salon business can be pretty unstable. It’s lucrative because nearly everyone needs a haircut on a regular basis. It’s fulfilling because of the positive impact we have on the way our clients feel about themselves. Yet, it’s unstable because most owners try to “wing it” when they should be more prepared. They don’t do the kind of research—before opening their salons—that would prepare them for the inescapable business cycle of Launch-Growth-Maturity-Renewal (or Decline).
So, if you’re considering getting into the salon business but all you have considered so far is: being your own boss, a catchy salon name, and how you want the interior to look, then you need to do some research. Let’s get you off to a fast start.
Here are the 7 most important pieces every salon business must understand, even before starting a formal business plan—that is, if you want to still be a salon owner five years from now.
- Values. These are the accepted rules of conduct by you, your team, and your brand.
- Purpose and Vision. Purpose is why your salon exists—and why anyone will care. Vision is where you are leading your team, your clients, and your brand.
- Type of Client. If you are thinking that you want, “All types of clients,” then you are not ready. Pick one, two, (or three) types of clients and be able to describe them in great detail.
- Finances. Salon businesses are one of the few that can be opened with your own life savings and some money from friends and family. Opening is one thing—staying open is 1,000 times harder. Be ready to track—and analyze—your income and expenses.
- Partnerships. You may, “Be your own boss,” but you will not succeed alone. Who will help you get up and running—and who will help you stay that way?
- Talent. There are a lot of licensed stylists but you already know that only a few are really good. What you want to do is recruit your first team. What you need is a method to recruit your 3rd, 4th, and 5th teams.
- Organization. A solo owner in the salon business, also working behind the chair, making most (or all) of the decisions is typical. But remember, “typical” loses money in the salon business. How will you develop an organization to help you and how will you learn to lead?
genesis is an amazing private label products company able to get you into your own brand for less than $1,000. We are also here to help you with a variety of programs to prepare you to get into the salon business or to improve your existing salon. Please go here to order your own hair care sample kit today. If you would like to talk more about the salon business, contact us!