Salon and spa business today is a very attractive and lucrative proposition but only if you get it right from the very beginning. Choosing a wrong location, expanding infrastructure faster than growth in client base and pricing yourself out of the market are some of the common pitfalls that many salon owners find themselves in leading to slow growth and abysmal profitability.
However if you go about setting up your business with a certain degree of caution and then follow a few steps in day to day operations, you can surely pick up the pace of growth and turn into a profit generating entity in the shortest possible time.
Factors to look out for –
Choosing the wrong location can have long term repercussions on your business. There is a common notion that salons located in residential areas prosper more than those located in a commercial environment. This is not correct. While salons in residential locations do have a recurring captive base of clients, they tend to get to saturation points faster and the growth in clientele tapers off after a few years, leading to a slowdown in business. On the other hand, salons in busy office areas get a steady stream of impulse customers who simply walk off the road to avail your services. If you can provide a high degree of customer satisfaction, you will be constantly increasing the number of committed clients.
Failure to follow modern marketing techniques can slow down your business. While opening the salon and spa business, you may follow traditional marketing methods of placing advertisements in print and visual media and distributing flyers. But once your business gets off the blocks, new techniques have to be followed.
In today’s business environment, whatever sector or industry it might be, searches are constantly being made by potential customers and purchasers online over small Internet enabled devices such as smart phones. It is therefore necessary that you have a highly optimised website that ranks high on results pages of major search engines. If your business is not visible online by searchers looking for local salon services, you’ll be missing out on business opportunities resulting in slow and stagnant growth.
Salon owners often feel that packing their spas with costly and top of the line equipment will boost business. This again is not true. If you invest heavily in state of the art machines without a corresponding demand for such services, you’ll have blocked your investments in other more productive channels related to your core activities. Hence, when you really need funds to expand your business, add furniture, hire trained and skilled staff or go for a complete makeover, you’ll face a cash crunch that will adversely impact your business.
Get equipment on a need-to-buy and use basis, not to keep them as showpieces. Further, when you do feel the need to add to the existing ones, explore leasing options on monthly rental. By doing so, your internal cash accruals can be kept aside for core activities, not large scale capital investments.
Pricing your services right is perhaps the single most crucial aspect that can make or mar your salon and spa business. Too low and people might have doubts about the quality of your services, too high and you price your salon out of the market. How do you get it right? For a start, make a research of other salons in your locality and the prices they are charging. Are they increasing their customer base? What are the services being offered by them? Is it at par with yours? Once you get these basics in place, there should not be a problem to get the cost of services right.
Follow these guidelines and you should be on your way to exponential growth and development.