Owning a business in a struggling economy is not an easy task. In fact, every new business owner faces an uphill battle for their own survival. While there are many reasons for the challenges faced by salon business owners sometimes the problems are down to the owners own actions. From a lack of marketing, poor planning, financing problems, mismanagement, tax related issues and a host of other problems. Here are some of the major challenges faced by salon owners.
Keeping up with the latest trend – The trends in beauty industry constantly keep changing. Hence, to be a successful salon owner you need to keep yourself updated with the latest trends so that you can meet your client’s expectations and requirements. It can be hard to find time to do research, but the internet can come to your rescue. Give yourself an hour or two in the morning or evening each week to do your online research. Also, try to attend hair and beauty shows as this will empower you with skills and knowledge to cater to clients of all ages.
Getting new clients and retaining them – Many salon owners constantly attempt to bring in new clients, which is beneficial for growth. However do not forget the old ones, remember to put efforts into retaining the existing clients. Loyal clients are important in this industry, as some people get their hair done as often as once a month. Provide discount vouchers, loyalty cards or give free products to clients who frequently visit you. If you want more clients, offer additional services out of the salon such as wedding shoots and photo shoots. This will not only build your clientele but will also boost your finances.
Licensing and regulatory concerns – For opening up a salon, there are many regulations and licensing requirements designed to ensure the safety of clients and the people working there. Rules and regulations change frequently so it is critical that you stay up to date on the requirements and relevant federal safety standards. It is advised that you consult property lawyer in Melbourne to keep yourself well informed about legislative and regulatory updates for businesses. They have the expertise and experience to help you out in case you need to renew your licence.
Managing and motivating staff – The greatest challenge many salon owners find is managing and motivating their staff. The challenges they face is keeping employees happy, getting them comfortable with selling, dealing with absenteeism as a result of holidays, sickness or pregnancy. Consider offering incentives such as bonuses or health insurance to keep your staff motivated. Invest in their development, provide them training from time to time and take interest in your employee’s well-being.
Property risk – Salon owners invest a substantial amount of money on equipment such as chairs, dryers, sinks and consumables. Damage from electrical outage, fire and vandalism could be devastating to your business’s survival. Consider getting commercial general liability insurance, which will not only cover the damage to the building and furnishing but also your products, computers, the point of sale terminals and other equipment. Hire a commercial lawyer to get the insurance and understand all legal aspects.
These are some of the challenges faced by salon owners but to overcome them you need to be dedicated and continually review your skills.