Why are so many salons failing?
The purpose of this article is to help stop the bleeding among salon/spa owners who are struggling to survive and grow a profitable business. Many studies tell us only about 5% of salons make it past 7 years. This need not happen to you.
I will share some of the challenges and obstacles salon owners are facing in 2019. Sadly, there is a very dark side to our profession. We have to ask the question: why is occurring this? First, we’ll identify the obstacles, and then I will offer my opinion on how you can prevent and overcome them with confidence.
Once we address these challenges, then I will offer the bright side of our profession and offer solutions.
- Poor planning and research
- Your experience in the beauty profession
- Failure to write your business plan
- Goal setting
- Do you have what it takes? Excellence begins with you. Do you have the traits of excellence within? You, and only you, control the success and profitability of your business. I call this my Pyramid to Success.
A Winning Attitude
The hardest part of building a business is that you will be surrounded by negativity. You see it every day in the newspaper, TV, cable TV, and also from well meaning friends and relatives. Many will tell you you can’t; you have to tell yourself you can everyday. Get in the habit of developing a positive mindset; always look for the good in your goals, dreams, and happiness.
- Do you know what it takes?
- Have you clearly defined your obstacles?
- Do you have a plan to prevent and overcome these obstacles?
- Inability to find resources and information so you can make informed business decisions
- Working behind the chair
- Do you have strong business skills?
- Failure to adapt to change
- Inability to compete
- Underestimating your pre-opening cost projections and regular monthly costs
- Poor management and leadership skills
- Lack of a staff development system
- Poor choices in selecting people to join your team
- Your Employee Handbook and Procedures manual
- Terms of employment
- Poor employee training
- Failure to monitor staff performance and productivity
- No client retention policy
- Bench marks in evaluating employee performance
- Social media in the tech age
- How to prevent and overcome turnover
- No staff retention guidelines
- How to combat rising business costs
- Failure to seek help
- Comfort zone mindset
- Finding quality and affordable educational resources
- Following the glitter and hype of hair shows
- Beauty schools
- Teacher training
- No associations run by salon owners
- It’s all about business
- Inability to motivate, inspire and reword quality people