The Key Factors Needed for a Business to Succeed
We all know full and well that success does not happen overnight and by no means does it happen by accident. It happens through practice and intentional focus, through hardwork and determination. Success in this industry is no exception. Luckily in this field, there are an endless amount of career avenues to explore, one of them being a salon/ spa owner. As I’m sure you could have guessed, in order to be a successful salon/ spa owner, you need to have a full-proof plan and a target market to match, same as any new business. According to the IBISWorld report, there are 250 key success factors for business. Because we wanted to save you a lot of time and tears, here are their most important key factors for success needed for this industry–
Business expertise of operators
It is critical to have experience and skills in managing and operating all aspects of a small business to achieve financial success. This covers everything from suitable price points, a solid staff (even if it’s just you), how to manage business expenses including supplies, bills, payroll, etc. Opening your own business can be A LOT and incredibly overwhelming. That’s why at Creative Images, we offer a deeper look in our Advanced Cosmetology course into the world of entrepreneurship and business management for any of our artists who are looking to take it one step further.
Having a loyal customer base
A highly satisfied client base will likely encourage repeat customers, who make up the majority of clients. In addition to repeat customers, this will also generate referrals. Word of mouth is the most trusted form of advertising, and the best part? It’s free to you! Utilize this. Make connections with your clients and your staff. It is much harder to mend a relationship than it is to break it so do what you can to build that strong foundation at the start.
Access to niche markets
For those of you who don’t know, a niche market is where you want to aim. If you find your niche, that means you have found the hole in the market that needs filled. Either there is such high demand for it that the professionals in the industry cannot keep up or you’ve discovered a brand new need that people aren’t even aware of yet. In either scenario, this is a good place to be because because when you have high demand and low inventory, this is what will allow you to charge more for your services. Look at the storm hair extensions created. There is such a high volume of demand for hair extensions across all platforms but only a handful of trusted extension experts. This is why clients are willing to pay over $1,000 for this service and an additional $200+ every few weeks for maintenance when all in all, the extensions themselves typically cost less than $300 wholesale, depending on the brand.Operators that develop niche areas of service and expertise reduce the effects of local price-based competition. The price is up to you and what you believe is fair and fuels your worth.
Maintenance of excellent customer relations
Do not stress because it happens. You will not be able to please 100% of the people who walk through your doors. It just can’t happen. Between people’s varying opinions, expectations, communication, etc. you will stumble across a client who does not leave happy. However, that does not mean you just let it be so. Do what you can to salvage any type of client relationship that you can because again, word of mouth is the most trusted form of advertisement, good or bad. Operators that strive for positive customer relations will likely promote customer satisfaction and encourage positive word- of-mouth recommendations.
Must have license
This is a given but employees must possess the appropriate licenses operate. This can get you in BIG trouble with the state and even in some cases, the law. If you’re looking to offer newer services that require training, don’t rely on YouTube to teach you. Take the appropriate training classes and get certified. The reward is not worth the risk otherwise.
Accessibility to consumers
I’m sure you’ve heard this on any HGTV real estate show– it’s all about Location. Location. Location. A salon in a convenient and easily accessible location may benefit from walk-in patrons and repeat business. You also want to ensure that your business is in the area of your target market. People will 9/10 times choose convenience over desire any day. For example, if your target market is women 25-45 who are needing a salon that stays open late to accomodate the working moms, it probably would not be your best bet to set up shop on the outskirts of town across the river. Nor would it be ideal to plant your roots between a sports bar and a gun and ammunition store. Thinks of your clients and what areas would not only be convenient for them to get to but also areas where they would feel safe walking to their cars at night.
At the end of the day, there are two main things that matter when starting a business– a solid business plan worked out to the ‘T’, and your clients. Everything else will work itself out in due time through trial and error and ceased opportunities. If you have any questions about our programs and our exposure on business culture and management, please feel free to reach out or give us a call at any time. At Creative Images, your goals become our goals, and we do not stop until you get there.