A sad reality in the WORLD: many salons are open daily, however, few thrive in the medium term. This happens due to a number of factors. In this article, we have gathered the 5 main management problems that lead a beauty salon to close.
1. Lack of Servant Leadership
Many beauty salon owners don't understand how much their mood and work style can influence the results. Being rude, asking for a type of behavior that he doesn't have, lack of vision, paying the minimum and not being grateful are just a few points.
Without a leader, no business thrives for long. The same goes for your salon. The people who work with you don't need motivation, they need direction. Be a servant leader, one of those who seek daily to understand what their leaders need to do an excellent job and provide it to them.
Geraldo Rufino, founder of JR Diesel, has a phrase that sums up this style well: “I don't do anything in my company, my role comes down to taking care of people. I take care of people, they take care of my company”.
2. Inefficient Financial Management (and the lack of Integrity)
The important thing (in terms of business) is not how much you earn, but how much your profit represents in percentage terms. If your salon earns U$ 50,000.00 per month, but you need to spend U$ 47,000.00 to achieve this result, is the risk worth it?
If, for example, another salon earns U$10,000.00, but only needs to invest U$7,000.00 to reach this result, it not only achieved the same profit as you, but did it with much more efficiency and less risk.
Both give U$3,000.00 in profit, right? However, with one brutal difference:
Scenario 1: U$ 3,000.00 / U$ 50,000.00 = 6% profit
Scenario 2: U$ 3,000.00 / U$ 10,000.00 = 30% profit
Now think like an investor. If you could choose, where would you invest your money? In a business that gives 6% profit or 30%? Although the answer is obvious, most beauty salon owners never do this analysis.
As a leader, you have an obligation to know whether or not your company is financially attractive. After all, in the scenario presented above, which beauty salon would you invest your money in? In our article How to Make Your Salon More Profitable we talked about some “hidden costs” neglected by salons. In the article Simple Tips for Organizing the Finances of the Beauty Salon, we deal with 4 strategies that you must apply in your daily life. The main one is this: Have a Salary. See the others here.
Integrity goes beyond Money This is a delicate subject, however, it needs to be addressed. Unfortunately some entrepreneurs have the bad habit of launching personal accounts for the company and vice versa. In addition to affecting your company's cash flow, it gives your employees a bad image.
And integrity goes beyond numbers. Consistent attitudes are important to keep people “in line”, however, if you don't set an example, there is a great possibility that at some point you will see behaviors like these in your beauty salon. After all, your team members will think: this is normal around here.
Be honest in 100% of your attitudes, don't let waste, petty theft and moments of anger be "normal around here". Want to start solving your financial management problems today? Register to use our system.
3. Lack of Customer Experience Planning Do you like going to a restaurant where one day the food is excellent, the next cold and tasteless? I imagine not. Have you noticed that large franchise chains have the same standard of care? We are not going to go into the merits of what quality care actually is, because that is relative. What is good for you may not be good for me or vice versa. However, 2 things are unanimous: 1. Everyone wants to be well attended and 2. There are some universal parameters, such as: A) Clean and well-lit place; B) Educated people who know how to conduct a conversation (guiding the client properly); C) Price and conditions suited to the customer's profile, style of establishment and service delivered.
Does it seem obvious? Yes, but again there are few beauty salons that pay attention to their customer's experience. Few plan this experience properly. Our suggestion is that you, together with the team, begin to define what this experience should be like from start to finish. We suggest these articles to help you with this activity: Why You Need to Know Your Customers How to Organize Your Beauty Salon in a Simple Way
4. Lack of Marketing Strategies In our eBook How to Build a Successful Beauty Salon, we talk a lot about how to think strategically when it comes to Marketing. After all, it's no use having a beautiful salon, the most modern equipment and nobody entering it. The beauty salon market is highly competitive. According to estimates by Sebrae + data from MEI (Individual Micro Entrepreneur), there are currently around 1 million salons in Brazil (both formal and informal).
If that wasn't enough, add to this account the countless YouTube channels of women who teach other women how to do almost everything they would pay to do inside a salon.
Therefore, you need to plan and execute a Marketing Plan. The good news is that right here on our blog we have already published several ideas to help you:
3 Ways to Make Your Salon Grow
Discover 2 Marketing Strategies that cannot be missing in your Beauty Salon
Increase your customer loyalty and still receive in advance
3 Free Tools to Leverage Your Beauty Salon Tools for more success in your Beauty Salon What to Post on Social Media for your Beauty Salon Why Your Beauty Salon Needs a Website Why You Need to Organize Your Salon Bookings How to add my Salon on Google Maps