Tuesday, July 5, 2022

5 Highly Effective Salon Management Tips to Boost Your Business

The beauty industry was flourishing before the pandemic and is already showing early signs of being among the industries that will recover and adapt the fastest in the “new normal”. It is evident that the world cannot do without our skills and talents. If you are running a salon business in the new normal, you can hold your head up high knowing that you are already marked for success. Because you are your own product, it is up to you to combine your skills, your talents, and your management capabilities to help your business thrive in the new normal. To help you with that, here are 5 tips for successful management of a salon business:

1.   Money matters!

There is no success in any business without steady revenue streams and prudence in financial management. If you are like most salon owners, finances and numbers aren’t your cups of tea. You probably would rather hire a financial expert to handle all your matters finance. But although that isn’t the worst decision you’d make, it is paramount that you always stay on top of your money. At the very least, understand these basics of business finance:

i.                    Know how to measure your costs. How much money goes to running your salon business, say, on a weekly basis? That includes rent, payroll, energy, water, taxes, and insurance, among other expenses.

ii.                  Understand your personal finances. How much do you spend on gas, food, and health care? For most small business owners, there isn’t a clear separation between their personal and business finances. Their personal expenses easily take money from their business budgets. So, don’t hide your head in the sand and assume that all is well with your personal finances. Always keep your personal expenses in check because if they spin out of control, your business will most likely take a hit.

iii.                Understand the principle of opportunity cost. Sometimes you will be forced to shelve one idea in order to finance another. Your success as a manager will depend on your ability to pick your priorities.

iv.                Understand matters of insurance. It is crucial that you protect your business from unforeseeable disasters. Your ability to pick the right insurance provider can be the difference maker between your business collapsing after a disaster or making a comeback.

v.                  Know your worth as a service provider and price your services as per your worth. Low pricing isn’t sustainable as a unique selling factor- don’t sell yourself short in a bid to outdo the competition. Use your expertise as your unique selling factor and then target the clients who are willing to pay a premium price for your premium services.

vi.                Don’t hire more people than you need. Get salon management software and automate your repetitive day-to-day tasks such as scheduling and client booking. That will keep your wage bill down.

2.   Always think of the bigger picture

A good manager always thinks about the future- the bigger picture- when making business decisions. Always ensure that the decisions you make today are good for your profitability today and, more importantly, good for your reputation and business vision in the long run. Don’t be carried away by prevailing trends and forget about the bigger picture. For example:

        i.            Know your boundaries and limitations. If you aren’t good with a particular hairstyle or treatment regimen, don’t be too proud to admit it to clients. Don’t take on a job that you can’t do well. You will get money from doing it, but that revenue stream will be short-lived. It won’t be worth losing out on future clients over. If you realize many clients request a service no one in your team is comfortable with, your best line of action is to hire a new specialist for that specific service.

      ii.            It is a good idea to work with social media influencers when marketing your salon. More often than not, business owners go for the trendiest, most popular influencer that they can afford, forgetting that some celebrities are bad for business. Never make that mistake. Always interrogate the general reputation of a potential influencer and ensure that he/she won’t ruin your reputation in the long run. Don’t sacrifice your reputation for a few days or weeks of social media fame.

    iii.            When building your website, picking your brand logo and colors, choosing your interior décor, or picking a vibe for your salon, always ensure that all your choices align with your bigger picture. Always ask yourself: 5 years from now, will I be proud of the branding choices I make today?

3.   Automate where possible

Automation minimizes human error, time and energy wastage, and repetition. You should procure the right automation technology in order to inject efficiency into your team and manage your resources more effectively. Start by procuring a chatbot and integrating it into your online profiles and website. The chatbot will help you answer frequently asked questions around the clock. Most importantly, invest in an all-in-one salon management software to help you with, among other things:

·         Data collection and clients’ database creation. It will help you create short questions that, when answered by clients, will help you gather the client information needed for service personalization.

·         Email marketing automation. The software will use the information it saves in its databases to help you customize and automatically send emails to clients.

·         Automatic notifications and updates on critical aspects of your business, e.g. product availability and shortages in your retail section.  

·         Reporting on employee performance, cash flow, marketing trends, and other insights that you need when making critical business decisions.

·         Online booking. Your software provides hair salon online booking capabilities to clients. That puts clients in charge of their appointments, which is great for your reputation and client experience.

4.   Always give clients extraordinary value

Always ensure that your services effectively satisfy the needs and desires of your target market. That is how you will attract and retain high-quality customers. Among other things:

        i.            Focus on the experiences customers want to have, such as convenience in contacting your business, quality of your services, and friendliness of your client interactions.

      ii.            Focus on relationship building. Nurturing personal relationships with clients is what will keep them coming back. You will nurture these relationships by understanding the wants, needs, and pain points of each customer. This information should be available in your software’s databases.

    iii.            Treat your customers well and make them feel as though their happiness and satisfaction is the priority, not their money.

    iv.            Be unique and specialize! Clients will love working with you more if you are exceptional in one service as opposed to offering many mediocre services.

      v.            Let your customers know you. Always be transparent and straightforward with customers.

5.   Empower and allow workers to work for you

The reason many salon owners hire employees is that they cannot do it all on their own. But many of them don’t empower or even allow the people they hire to work as they should. You will give your business a competitive edge by empowering your team and making it better than all other teams in the industry. Here are a few tips to help you empower your team:

i.                    Create a hiring process that always gets you the best fit for your set business culture.

ii.                  Retrain your employees regularly to ensure that they are always at the top of their game.

iii.                Engage your employees in decision-making processes. Alienating them will only push them further away from your vision and mission. Such employees only work for the paycheck and their personal interests. That is enough to get your business over the line, but you need a lot more than that if you want your salon to thrive.

iv.                Reward effort to make employees feel valued.

v.                  Don’t shy away from being vulnerable. Don’t be an anonymous figure to your subordinates.  You will build trust more easily by letting employees see your human, mortal side.

vi.                Don’t force your team members to avoid conflict. No one works well when walking on eggshells. You should allow people to disagree on issues in order to nurture innovation and creativity in the team. To ensure that disagreements don’t get out of hand, learn the art of conflict resolution and become the unbiased, respected arbiter that your team needs.

vii.              Create cultural cohesiveness. Build on your team’s shared values to create a cohesive family, regardless of members’ race, gender, or socioeconomic status.

Final word

Making the right decisions when running your salon business is what makes the difference between failure and success. Although you have a lot on your to-do list and only so many hours in a day to clear the list, therefore, you cannot afford to rush through business decisions and management tasks. The good thing is that the 5 tips we have shared here lay a good foundation for you to build on. Now get to work!

Cary Grant
Cary Grant
Cary Grant is the founding member and Manager of Premium Websites for First SEO Paper , also owner of Answer Diary, Techvercity and Gamingversity He is a special Manager and is responsible for PR Local, the most powerful USA UK Canada, and Australia platform for Press Releases, List Your business & services, Products Market, Trending News, and Home of Premium Blogs.