Advice for small salon owners
January 3, 2008
Running a small business is less fun than you think. I talk people out of opening salons all the time. When I explain to them the details of payroll, inventory, taxes and the like, all but the most determined think better of the idea. But many of you didn’t ask me before you started your salon. So if you are already in too deep to get out, here are some tips (from my workshop: Getting and Keeping the Clients You Want).
The average salon only keeps 30%-50% of the first time clients who walk through the door.
If you can control who comes in, you can significantly increase your odds!
- You need a website. The day has passed where you could put this off. I used to think I didn’t need one because, as a service business, I didn’t need to reach the whole world. The thing is, the people in your community want to be able to check you out anonymously and at odd hours. At the very least, give them some basic info: hours, prices, location, contact info, staff names, payments accepted, products you carry. You probably have a client who can do such things and would trade services with you. Put a note up on your mirror asking “Can you help us build a web page?”
- Our salon and our clients LOVE our online scheduling. It cuts down on phone calls and decreases the chances of no-shows (it sends a reminder the day before.) The one we use, Flash Appointments, is very affordable for small salons. There is an interesting service I have read about, but not tried called Salon Service Central that can take the place of a receptionist.
- Every business has a personality. Does yours have a personality disorder? Don’t try to be all things to all people. Not everyone is your target client. I know you think you want anyone with a pulse and a credit card, but you will be much happier (and more successful) if you determine your business personality and embrace it. Azarra is the salon where you can wear your pajamas and cuss. What makes your salon different from the 300 other salons in your town?
- Don’t waste money on advertising your target client won’t see. If you are an upper-end salon, discounts and coupons that come in a bulk mailer are unlikely to appeal to your target market. We use CitySearch. It lets you set an advertising cap and we pay what we can afford. It allows clients to leave reviews and we get tons of new clients from it (way more than we ever got from our yellow pages ad which we have now dropped.)
- Build relationships with your vendors. They have tools to help you grow. Partner with the ones who can be the most help.
- Get an accountant you can trust and understand. It is crazy to think that you can keep up on all the tax rules. If you ever have a problem with a tax agency, you will be glad you have someone who can back you up.
- You do not want pissy clients. If a customer is pissy, give them back their money and send them on their way.
- Under-promise, over-deliver. Don’t promise the moon if you don’t think you can hit Mars.
- Detoxify the staff. Staff who sabotage your goals and vision will cost you more than you will ever make from them. Let them go. You know who is poisoning your environment. Get rid of them.
- Live your brand. Once you figure out who you are, be sure that all your materials reflect it. Business cards, menus, website and advertising should all be cohesive and should help prospective customers determine if you are the right salon for them. If you do a better job of appealing to only your target market, then you will be more likely to keep the clients you get.
February 25, 2008 at 8:26 pm
I like your advice. I have owned my own business for a little more than 10 years but just recently started thinking about something I can do that will make me stand out a little more and be noticed. I have a client that might do a web page for me, I think that will be my next step! Thank you!
February 27, 2008 at 8:46 am
Hello. I have owned my own salon for 19 years now and have noticed the processing fees from charges have been going up. Not due to the bank, but from the amazing use of charge cards and debit cards. My stylist work on a commission basis. I wanted to know if it would be wrong of me to charge them their own fees on their tips left on the charges.
Thanks…..
February 27, 2008 at 10:04 am
Patty,
I would do the math and have a very clear idea of how much money we are talking about before bringing it up to the staff.
(An example: if the stylist gets $300 a week in tips, the bank charges of 4% are $12. Less of a big deal if you have three employees than if you have twenty.)
Tips are a touchy issue with staff (and the IRS!) Are you running the tips through their payroll or do they declare them separately?
Some salons are so cautious of running afoul with the IRS on the subject that they are not involved in the process at all. I have seen salons that have small envelopes available for customers to leave tips. There are some salons that have stopped taking tips all together.
My salon is booth rental and since each stylist is running their own business, the banking fees are something they pay and write off on their taxes.
All that being said, if you are paying more than 4%, get a new processor. Look at places like Costco that offer a discount on processing to their members.
When I look at my total cost for the credit card processing, I look past the percentage rate they advertise and look at the total fees (monthly fees, rental of terminal, per swipe costs, etc) as a percentage of the total sales. They make it really hard to compare these rates (I think on purpose!) so I have to look at the big picture in order for it to make sense to me.
Look at your last few statements. If you can switch to a company with lower fees overall, you could save more than enough to offset the fees you are paying on the tips and then you can be the good guy!
The other part of the equation is making sure the staff knows that it cost to run the business. I have been guilty of this myself. The salon has to make o profit or it makes no sense to be open. If your costs are eating up your profit, then you are in trouble and so is the staff. If you keep them in the loop and don’t “nickel and dime” them, they will feel more a part of the team.
Wow, that’s a long comment! Maybe this needs to be a whole new topic.
Anyone have more questions?
March 4, 2008 at 7:49 pm
Nine months in and loving it! I have one other stylist and one shampoo assistant. We only cut and color. I’m working on a web site. One thing I found helpful… we only accept cash and checks. Some clients complain, but there’s a mac next door.
I’m currently using a paper book. Do you find it pays to go computer with only two to three stylists. I’ll take any suggests/advice. It was nice to find this site, thanks!
March 4, 2008 at 8:05 pm
Stormi, computerizing the salon can be done much more affordably than used to be possible. I suggest you have a system, whether it is salon specific or not. It is a lot easier to compare where you are with where you have been if you have it on computer. Do an internet search for “salon software” and you will find lots of choices. I do know that Extended Technologies (Salon Biz) has a free program for salon of 4 or fewer service providers. Check it out here: http://www.salonbizlight.com/
Our online appointment service is $15 a month per stylist, and the website is about $20 a year. Pretty affordable, if you ask me! If you have other questions, let me know. Good luck!