4 Mistakes in Running a Beauty Salon and How to Avoid Them

The beauty industry might be thriving these days – beauty salons are a good repeat customer, steady income type of business. But salons fail way too often, like the majority of small businesses do. According to the Entrepreneur, the main reasons for this have to do with cash flow. The businesses either run out of cash or can’t estimate the required amount to keep their business afloat. Some even fail because they cannot set the right process for their services.

Another major reason salons fail is that their owners never took the time to learn the key steps in starting a business. No matter what kind of business you want to start – including a beauty salon – you need to be proficient at such skills as marketing, business planning and accounting for example.

However, there are many other mistakes in running a beauty salon that can bring your business down extremely fast. You need to be aware of the issues, like hiring ‘too good’ stylists, not splurging on high-quality essentials, or lack of branding so you can fix these matters right away and thus increase your business’ chances of success.

4 Most Common Mistakes in Running a Beauty Salon

Hiring not the right kind of people

The professionals working for you are the ones that will ‘make or break’ your salon as it’s their skills and disposition toward clients that will determine if the people will become regulars at your shop. Of course, you need to hire highly qualified and talented professionals who are able to build warm and friendly relationships with customers.

However, with a beauty salon, there’s a risk of hiring people that are ‘too good’. In this case, the person might put their creative expression before the client, which can result in dissatisfied customers who will spread their angry reviews of your salon. As negative info spreads like a wildfire, one angry customer with a decent online following might be enough to break any chance of your business succeeding.

Be sure to discuss matters like this in great detail when interviewing candidates for your salon. It will be best to hire young professionals who don’t have their ‘personal style’ yet and will be able to adapt to your policies and regulations more easily. Big names might bring in some customers, but if you go with that line of marketing, you will basically have to build your entire business to promote that single name.

Not prioritizing the quality when setting up your salon

The best thing about this business is that it’s quite easy to set up. All you need to do is find a place, hire a couple of talented stylists, and get basic salon furniture. There’s no need for huge investments in some luxury items and advanced equipment. However, it’s essential that you splurge on those necessary basics.

One of the biggest mistakes in running a beauty salon is trying to save money on essentials. This simply cannot be allowed as top-quality products are needed to provide great service. Plan your budget in a way that will allow you to install good and reliable professional furniture and buy high-end tools for your employees to work with.

Using expensive professional hair and skin care products is also a must. You can use this as an opportunity to make more money by opening a small shop where your customers will be able to get these essential products to use at home.

Not creating a distinctive brand

As the competition in the beauty salon industry is fierce, you need to make sure your business stands out. You also need to make it memorable, and not only with the quality of service provided. A salon should have a brand with a logo and an easy-to-remember name.

Having a logo will help make your business a distinctive entity that your customers will come to like and recognize. Then you can use the power of brand marketing by participating in various community events. All you need is to get your logo on the banners and every time your customers see it, you’ll be earning ‘kudos’ and enhancing their loyalty.

Not using social media to the fullest

One of the biggest mistakes in running a beauty salon in 2018 is not making social media marketing your priority. Check out the data from Statista to see how renowned beauty brands are dominating social media. They use the power of ‘word of mouth’ and you should too.

If you want to succeed in this business today, you need to not only have an account on all major social media platforms, you need to invest a big part of your marketing budget into advertising there and ensure that those accounts are active. Not only do you have to answer any customers’ messages and comments right away. You also have to be active at various groups and discussion boards relevant to your niche.

The bottom line

A beauty salon may not be one of the lowest investment businesses to start. But if you start and run it well, it could develop into a solid long term profitable business opportunity.

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