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Discover the 11 Reasons Salons Fail, Make Sure You Avoid

Avoid these obstacles

Change is the law of life. And those who look only to the past or present are certain to miss the future.” –John F. Kennedy

This past year has been a very difficult year for many salon owners.  Sadly far too many salons have failed while many more will continue to struggle,this need not happen to you.  Unfortunately 2011 shapes up to be an even more challenging year as our country continues to overcome a very tough economy.

Despite these alarming trends I feel a coming boom for well managed salon/spa owners who are well informed and determined to develop powerful business management skills

I have listed some of the reasons salons fail in an effort to help you avoid the many mine fields that are hurting so many of our salons and their staff.  Please review the following 10 reasons why salons fail and make sure you avoid the following business challenges.

Poor Business Planning — most of us opened our salons with out a business plan.  We sort of winged it through with little organization and planning.  You can no longer afford a trial and error approach to owning a business in today’s competitive and challenging economy.  My book Creating Your Salon will be of great help in this area. Click here

Lack of Business Information — in my opinion there is too much glitter and hype as seen at many of our hair shows.  The few business classes many of our shows are trying to present are ignored by far too many salon owners.

Failure to Get Help — there are many excellent educational resources you can turn too for help and ideas.  As a salon owner/hairdresser I formed Hairdresser Career Development Systems free of any special interest groups to help you overcome the many challenges of salon ownership.  If you’re struggling seek out help.

Apathy and Indifference — far too many salon owners are in denial and refuse to develop their business management skills because it requires commitment and effort.  Far too many complain about staff, lack of profits and long hours behind the chair. They always complain but do nothing about it.

Lack of Employee Training — many owners do not take the time to develop their own training program because it requires effort and time. Many more try to build their business by recruiting hairdressers with clientele from a competitor.  Getting ahead at the expense of others is just wrong.

Poor Business Management Skills — lack of business skills is one of the leading causes of salon failure. As leader of your team it is your responsibility to run your business as a business.  I urge you to develop your business management skills, learning to work smarter, not harder.

Inability to Hire the Right People — without a comprehensive staff development program, you take a hit and miss approach to building your winning team.  Develop your championship team a team, a team that shares your values, goals, and vision will be your major business challenge.  Hiring the wrong person to when adding a new member to your team will make it difficult to create a positive and professional salon work environment.

Inability to combat and overcome turnover — first you must define the causes of turnover and develop a preventative plan of action to avoid and overcome turnover.   Sadly many salon owners fail to seek out feed back from their staff, as well as providing a positive and professional salon environment in their salons.

Lack of Leadership skills — as leader of your team you must develop your leadership skills.   Reward your staff for a job well done, a little pat on the back can do wonders, praise and recognition, a busy salon are just some of the things you can do to improve staff performance and productivity.   Refer to my book Developing Your Skills. Click here.

Client Retention — the loss of even one customer and their family can be devastating to the stability and growth of your business. Negative word of mouth is the worst kind of advertising.  It affects everyone in your salon.  You must develop a client retention strategy.  Refer to my book Growing Your Business. Click here

Lack of Unity Among Salon Owners — all of us are battling these challenges of salon ownership in isolation.  Why not unify into an organization that protects our business interests.   Salon owners helping salon owners will be our theme.   Only when we unite together will we be able to address these challenges and make this industry more responsive to our needs.  Combating turnover, staff pirating , commission and price wars will be a good start.   Will soon make an announcement about upcoming salon owners summit conference.

Let us all unite together as professionals and take our salons to higher levels of excellence.  You cannot afford to miss my upcoming business seminar. Click here for complete details

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0 Responses to Discover the 11 Reasons Salons Fail, Make Sure You Avoid

  1. Massage therapy schools November 16, 2010 at 2:49 pm #

    This is a good informative list. The simple values are always taken for granted and this article adds in emphasis on those. I am going to add this to my wall at the salon.

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