In a couple previous posts, I mentioned that personal care services are going strong even with the dismal economic conditions and I offered a brief rundown of options for those looking to start their own salon business.
But even with a strong consumer demand and an enthusiastic entrepreneur, it doesn’t necessarily mean that success will follow. Running a profitable salon business takes work and knowhow. Here are a few tips to keep in mind:
Your location can make or break the business. You need to make sure that your salon business is easily accessible to your customers. If the location is inconvenient or unfrequented then potential customers may head elsewhere.
Customer service should be your top priority. A beauty or hair salon is, after all, a service business, and as such your goal is to make your customers happy. This means consistently providing quality and professional service, soliciting and listening to customer feedback, and rewarding customer loyalty.
Hire the right personnel. Your salon business hinges on the skill, talents, and personalities of your hairstylists and beauty technicians. They represent your biggest overhead cost, but they are one of your biggest assets. They are on the front lines with your customers. Make sure that your employees fit the business culture, are professional, courteous, skilled and experienced.
Stay on top of your cash flow. Make sure you are aware of the money coming into your business (ie revenues) and going out (ie for expenses, such as payroll). Also, pay attention to places where money can get tied up, such as with unused inventory. These cash flow bottlenecks can wreak havoc on your operations. If you are aware of an impending cash shortfall, you can then take measures, such as taking out a small, short-term loan, to help ease the situation.