10 Mistakes to Avoid When Starting a Spa or a Salon

Are you about to enter the exciting world of owning a spa or a salon? Now is certainly the time to invest, as the industry is growing at a rapid pace. Yet, many entrepreneurs are apprehensive about opening theirs. Why? They fear failure. 

Behind every successful beauty business,spa or salon, you will find a trail of failures and mistakes owners had to navigate through and learn the hard way. Luckily, we’ve put together this list of common mistakes for you to avoid as you embark on this exciting journey.

Here are the top 10 mistakes to avoid when starting a salon.

1. Skipping the Business Plan

A business plan is essential to the success of your business. It’s here you’ll outline all of the important financial details, manage your expectations, and forecast for the worst case scenarios even. It will also clearly define your business objectives and strategies for achieving them. From your marketing expense, revenue generation strategies, capital spending, design budget, staff salaries and incentives; here all will be outlined to make sure you are on track towards success. An intricate business plan also acts as a problem solver in different situations.  

Your business plan should:

• Forecast growth inclinations
• Highlight your current and future financial needs as well as goals
• Acts as a roadmap for your business financial performance

2. Underestimating Your Startup Costs 

Before you invest the majority of your capital, you’ll need to understand the exact costs of starting and running your business. Aside from your facility rent, you’ll need to consider the following items:

• Consultancy (some top-shelf self-promotion here!) 
• Decor and furniture
• Equipment (i.e. beauty supplies, sinks, hair dryers, chairs, etc.)
• Utilities (i.e. electric, water, gas, etc.)
• Licenses and permits
• Payroll
• Marketing
• And more

3. Not Setting your Benchmark

What better way to understand WHERE you want your Business to be, than aiming high and eyeing a Great spa or salon to aspire towards?

Before you open your doors, start competing with your market players; find a business that inspires you and work on your track of becoming as close as you can, without copying it, to their status and positioning. 

4. Choosing the Wrong Location

Location matters. Be sure to really research the right location for your spa or salon. When looking for the right space be sure to consider whether or not the area appeals to your target. Is there a lot of competition in the area? Would you get great foot traffic? Is there enough parking? Is the rent affordable? Ultimately, you want to find a space that appeals to your client and is well within your budget.

5. Using a Cheap Logo

Many new business owners aren’t aware how significant their logo is to the business, brand awareness, and positioning. A thoughtfully designed, visually appealing logo not only will catch the eye of potential clients, but it can also be used across your social media and marketing campaign to help gain true brand equity. While you might invest a little more for a quality logo, it’s worth the initial cost.

6. Using the Wrong Salon Design

Have you ever visited a salon where the hair washing sinks were directly next to the bathrooms? Not exactly ideal for creating an enhanced client experience. Just like location matters, so does the design and layout of your salon. People who visit a salon not only want a quality cut, but they also want a great experience in a relaxing and pleasant environment.
The goal is to make your customers feel comfortable. This extends to your decor as well.

7. Not Budgeting for Marketing

If you neglect to set aside funds for your marketing, you will find yourself in an unfavorable position. Afterall, word of mouth will only get you so many new clients. The purpose of marketing is to create enhanced visibility in the market within your target demographic. Setting aside marketing funds from the start will allow you to launch a marketing campaign on social media, google, and even physical arrays (such as printables or billboards).
The goal is to make your customers feel comfortable. This extends to your decor as well.

8. Hiring the Wrong Staff

A salon is only as good as it’s employees. Not only do you want experienced stylists, but you want to make sure they represent your brand and its culture. Make sure your employees present themselves well, are friendly, and eager to help your customers. It’s important to pay attention to personalities when you are interacting with potential employees. At the end of the day, your employees serve as your brand ambassadors.
The goal is to make your customers feel comfortable. This extends to your decor as well.

9. Avoiding Social Media

90% of consumers in the UAE market rely on social media in influencing their decision to buy a product or try a service in a spa or a salon. In fact, a recent study conducted by Nielsen found more than 60% of consumers admitted to researching brands on social media before experimenting their services. Simply put, society is a gold mine for potential clients. With a little effort and market analysis, you’ll be able to determine which social channels your target audience follows the most.
The goal is to make your customers feel comfortable. This extends to your decor as well.

10. Not Working with an Accountant

A professional and reputable accountant will ensure you are dotting all your ‘i’s” and crossing all of your “t’s” when it comes to payroll and taxes. They also keep track of all of your revenue and expenses, and provide reports so you are 100% aware of where your money is going. You’ll have enough going on with running your new salon. The last thing you need is to be running your payroll and taxes!
The goal is to make your customers feel comfortable. This extends to your decor as well.

Hire a Professional Consultant 

When in doubt, hire a professional salon consultant to help you navigate the intricacies of your area. Opening a salon is an exciting time in your life and career. However, it can feel overwhelming managing all of the moving parts. At RMC (Royal Metis Consultancy), we help entrepreneurs to develop their business from concept creation and market analysis to design to branding, and everything in between. If you are feeling a little, or alot, overwhelmed we can help!

Contact a member of our team to learn how we can help you.

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