The Significant 7 for Successful Salon Owners
Ok, so you’re a salon owner. Maybe you got into this business because you were working for someone else for a period of time. Statistics say that this is probably true for you.
You may have also thought that “just being a great hair stylist”…would make your business successful. Maybe it has…but the statistics don’t bear that out.
What is true success in the salon industry anyway?
Well, people define it in many different ways…but here is how I define it. At the end of every week, are you able to deposit a significant amount of money into your own “personal” bank account? In other words, is the business paying you (or are you paying it)!
Now, here is something else to consider.
If you were to close up shop…and rent a chair…would you be making more money every week? If the answer is “yes”…then you might be actually paying the business. Why is this so important?
Because every day, I see salon owners that are working to pay everyone else BUT THEMSELVES. They’re working to pay the bank, the landlord, the employees, the credit card company, etc. and at the end of the week…there is very little left to pay themselves. It’s a very disheartening situation.
Look, a business is opened with the intention of making money. It is not opened to simply pay the bills. But this is what it ends up being for most. And there is a simple reason for this.
Salon owners never get any good at the seven key areas of growing a successful salon business. They actually run the business…like they run their own chair. It simply doesn’t work in the long run. Let me explain.
These are the things that salon owners must hone their skills at.
- Getting new clients externally (the Internet, joint ventures, marketing)
- Getting new clients internally (referrals)
- Maximizing the value of a client (cross-selling, reducing client time between visits)
- Client retention (keeping more clients and figuring out WHY clients are leaving)
- Staff retention and training (attracting good staff and improving existing staff)
- Retailing products
- Being a leader, having a vision and “inspiring the troops”
Those are the significant seven. Improve those areas every month…and you will have a super successful salon. Spend all your time working on your own clients…and you’re salon sales will plateau eventually…and you will end up paying the business.
Ask yourself honestly…have I spent enough time since January…improving those seven areas? If the answer is “no”…then now is the time.
It’s a sobering statement for many. In fact, if you’ve been in business for more than 3-4 years…I might be writing your story.
But here is the good news…
You can change it!
All you have to do is start by educating yourself. No…not technically. Actually educate yourself on running a salon business in 2011.
That’s right 2011. It’s different today. Technology has moved significantly faster than at any time in our history. It’s probably a little scary for you. But I’m going to help you out.
So, be on the lookout for help in each of the seven areas through this blog…I really want you to succeed. Let me try and see if I can get you on the fastest track possible!
Hello Steve. As you know I use your Hairmax software, and you have created a beautiful web site for me as well. Offering all your marketing ideas and managing my site monthly to market me has done wonders for my business.
However, with this last email you have sent, I feel as though you are speaking about me. I FIT INTO THIS CATEGORY! I have read your significant 7 ideas for successful salon owners and am on that page. I look forward to any ideas you have to offer me to make me as successful a business owner that I can be. You are great at what you do! Thank you for what you have done for my business so far and again, I look forward to your up and coming help in each of the 7 areas from your blog.
Thank u we need more guidance in our industry for marketing the economany is a challange for alot of buseness, how do u get new clients in a down ecno? With no cash for marketing?
Hi Steve, you set me up with Hairmax when I opened my first salon more than 20 years ago. Since then I have expanded to a salon and spa with 3600 square feet of space with 26 technicians. I moved locations 3 years ago and then expanded -doubling our size – 2 years ago. We are doing very well however it really hit home when you said “would you be making more if you closed up shop and rented space somewhere”. I would be, and I’ve thought about this many times. I still work 3 days a week on clients and do my best to switch them to other stylists but if I did not work on clients how would I get paid? I’ve gone to college for business, and taken many classes on salon management including Leo Lapierre’s year long salon management course. I have so much to work with but still need help making it all come together so that the business will make money for me even if I’m not working on clients – that’s the whole idea of owning a business – right?
Morning Steve,
First, I enjoy your e-mails keep them coming!
I’ve been in buisness since1994. My situation is simply I’m in the worst state to be in buisness,and in the worst city to be in buisness. Worst of the worst if you will Yikes! I was fortunate to own the building which my buisness is a tenant I have three suites that are empty and i’ve trying to rent with no avail. The commercial tax rate in Woonsocket is nothing short of insane and recently went up higher. I paid under protest and will be fighting this I pay 3,159.32 a quarter.
The salon is doing okay but as I am up against these odds so are many of my clients. Our retention is good we at times will lose a client but they always return.my staff is small but loyal and for that i’m grateful .At this time I’m not looking to grow my staff as my building is on the market and I’m hoping to move to a better area. I have been the salon owner you described in your e-mail and your so right it is very disheartening. I pray for a sale and a move and have been pro active with my agent to make this happen
Sincerely,
Gisele