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Seven Business Mistakes Salon Owners Must Avoid

Seven Business Mistakes Salon Owners Must Avoid“Some of the best lessons we ever learned,we learned from our mistakes and failures.”

The beauty industry is rapidly changing. Business costs continue to rise, it seems like it is getting more difficult to find quality hairdressers, an economy that is struggling, staff turnover, price and commission wars, and the list goes on and on.

With the abrupt closing of 56 beauty schools by the Dept.of Education due to alleged fraud and other violations,which I feel is just the beginning, beauty schools are jeopardizing the loss of school funding by the department of education, salon owners will be facing other challenges. It’s difficult enough finding good help.

Salon owners are especially vulnerable to these challenges, with a shrinking labor force. Learning how to meet and overcome these obstacles by trial and error is just unacceptable. If we are to avoid these obstacle we must identify what they are and then seek out solutions.

I have to ask the question who’s at fault?

 I have outlined a few reasons why this is occurring as well as offering a few solutions.

Denial ––Far too many salon owners want to stay in their comfort zone due to a resistance to change, because it requires effort and new thinking. Sometimes we must keep an open mind and be willing to admit our faults and mistakes and seek out solutions. Overcoming the fear of failure is a challenge many owners are unwilling to take.

You have two choices; you can do nothing and hope your challenges will go away,or you can do something about it by taking action.

Complacency —– it is much easier to keep making excuses to fail rather than put apply the effort to meet the heavy challenges of salon ownership.Over my 45 year career I have seen salons booming one year and go out of business the next year.

It doesn’t take much for salons to fail,turnover, poor management, competition, rising business costs ,the list goes on and on.

 Failure  to Seek Out Help — especially in the area of developing powerful business skills. There are many excellent resources and business coaches available that can help you.Meeting these challenges alone can be frustrating and extremely costly.

 Failure to Develop Your Business Skills: Most of you already have developed your artistic skills, but how many of you know how to manage your team and promote your business cost effectively. Owning a salon is a business and must be run as a business. A recent study showed that 94% of all business failures  were due to poor business management skills on the part of the owner.

Poor Hiring Decisions — hiring the wrong people can be devastating and lead to salon walkouts. Make sure you have your own staff development program,training program and employee handbook. or follow mine.

 Lack of a Client Retention Program — failure  to monitor your customer return rate, and implementing a client retention program through  negative word of mouth advertising is a huge detriment in trying to build and grow your business.  

Poor Planning and Organization — Lack of careful planning and organization is a huge time waster. A trial and error approach to building a successful business is just too costly in terms of time.money and energy spent.

Salon owners face difficult challenges, learning by trial and error is just too costly. I do hope some of these tips will be helpful. If you want to help and want to take your salon to a higher level.

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3 Responses to Seven Business Mistakes Salon Owners Must Avoid

  1. julie February 20, 2016 at 1:19 am #

    Great article Jon, I think there is another reason too, and thats the reason they went into business in the first place. Did they really do their due diligence or are they pursuing a whim and have not really thought through the issues and ups and downs of business we all have to face. Its a huge reality check for many people going into business and trying to make a business out of a hobby or passion. They should all read The E Myth before they start!

    • Jon January 16, 2017 at 10:35 am #

      Thanks Julie for your comment, great advice,lack of business planning and poor business management skills is one of the key factors why so many salons are failing.
      This will be one of my topics I will address on my two day business Seminar in Las Vegas

      Jon Gonzales

    • Jon February 7, 2017 at 8:29 pm #

      Hello Julie, lack of business planning is one of the leading causes of salon failure.
      in today’s changing and tough environment, no longer can a person build a successful and profitable business by trial and error.
      Well managed salons with business minded salon owners will be in huge demand.
      Thanks Julie for your comment,i appreciate your opinion.
      Jon Gonzales

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