The 5 Biggest Challenges That Salon Owners Face 

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Richard McCabe

When you’re a salon owner, it’s easy to feel as if the problems your salon faces are unique. You’re so immersed in your daily duties and issues that you may fail to recognize that your major problems are essentially the same as what the competition is facing.

In 2019, many challenges salon owners face and how you respond to these challenges will make a big difference in how successfully your salon handles them.

The Seven Challenges You’re Probably Fighting Right Now.

1. Hiring New Employees

Hiring new employees is a challenge many salon owners have to deal with. Part of the difficulty relates to finding good trained staff, but it also has to do with the substantial costs of bringing new employees on board.  With taxes, benefits, equipment, training, bonuses, etc, the cost of employing new employees is far greater than just the respected award wage. That’s a significant investment for salon owners that are typically strapped for cash. With salon owners taking on less apprentices over the last few years we are seeing a shortage of well trained staff now. The salons that reward and train their current staff will find it easier than other salons that do nothing.

2. Increasing Profits

For salon owners with perhaps five to ten employees, increasing profits is the biggest challenge. There are any number of reasons, but usually it comes down to an inability to remain a low-cost business against the competition as your bills and wages rise you need to really take control of the numbers. Winging it at this level is dangerous

3. Growing Revenues

Part of the difficulty with increasing profits is that many salons have found it hard to increase their revenues. The issue can’t necessarily be explained by a single root cause, because four things drive revenue: strategy, structure, people, and process. And many salon owners struggle in this area.

4. Managing Cash Flow

Money problems in their various forms are top of most lists of salon owners woes, we all know that most salon owners hate maths and shy away from numbers.

The good news is that cash flow issues are largely curable. Running a salon budget is very much like running a home budget, the key is finding one that fits your salon.

5. Staying Energized

While it may not get as much publicity as Facebook marketing or staff shortages, staying energized and overcoming burnout are also big problem areas for salon owners. When the burnout sets in, the weariness with the hours and the results can lead to rash decisions about the business, including the desire to abandon it completely. Finding a pace that keeps the business humming without grinding down the owner is a challenge that comes early (and often) in the evolution of a salon owner.

In today’s world there are many challenges for the average salon owner, but what I see from salon owners is the gap between salons earning a massive amount and salon owners that are struggling is getting bigger. I called it the War Zone and it’s real.

You enter the War Zone naturally as your salon grows.

We call it the War Zone as most salon owners move into this zone and never get out of it.

You know you are in the War Zone if you are scared to discipline your staff in case they leave and take their clients with them; you attract clients that you shouldn’t do just because you become desperate and need the money.

It’s like a battle field as salons fight over clients and staff, the only way you know how to react is with money, either offering discounts to attract clients, and offering more money to attract staff.

With so many salons doing this every salon owner reacts by doing it more and more.

Bigger discounts to attract the clients, and offer more money to attract and keep the staff. This has a massive effect on the salons profits and it soon becomes apparent to you, the salon owner, that things are very tight on the financial front, the bills are starting to pile up to a really scary amount and you’re wondering how on earth you’re going to be able to pay them.

The bills start to come fast and furious and takings take a nose dive, the staff lose their passion and morale and then the reality really hits home.

The staff are NOT pulling their weight (it’s not their fault, they’re doing cheap work, with clients they don’t like, this is not what they wanted when they became a hairdresser or beautician). You get angry with them and start to pass the blame onto them. With the added pressure of staff today being more demanding and not wanting to work late nights, nor wanting to work weekends, and of course wanting more money, they too feel that they could do a better job than you and they soon feel that owning a salon themselves is a good idea, once that seed is set, the battle is lost.

That results in a lot of smaller salons opening in your town that are fighting for the same clients as you. It’s a War Zone out there!

So let’s take you out of this War Zone and into the Lifestyle Zone.

With only 3 ways to grow any business, why do so many salon owners get this so wrong, not only to get their salons to survive but to thrive?

The only 3 ways to grow your business:

1. Get more bums on seats (more clients)

2. Get the bums on seats to visit more often (to get the clients to come and visit you more regularly)

3. Get bums on seats to spend more (to get your clients average bill up)

If it’s as simple as only doing 3 things to get your salon busy then why don’t we do it, why do we struggle so much and why has no one ever said before, that it’s only 3 things we need to spend our time on?

Interested to know more?

Are you looking to grow your salon and have a great lifestyle that isn’t ruled by your business?

Before you do anything else I want you to grab your FREE copy of this short book I wrote on attracting your ideal clients: http://bit.ly/2Ma38tc

Check out the website for more details of what we do https://lifestylesaloncoach.com

I’m putting together a new salon case study group at Lifestyle Salon Systems this month… stay tuned for details. If you’d like to work with me on your salon growth plans… just send an email and put Case Study in the subject line and I’ll get all the details to you rmccabe3@me.com

Watch this FREE webinar on what it takes to get your salon fully booked in todays world. http://bit.ly/2vK451d

Work with me and my team privately. If you’d like to work directly with me and my team to increase your salons takings by 30% in 12 months… just send an email and put PRIVATE in the subject line… tell me a little about your salon business and what you’d like to work on together, and I’ll get you all the details! rmccabe3@me.com

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