5 Common Mistakes Salon Owners Make (and How to Fix Them)

Many salon owners are service providers who are talented at their craft but struggle with the business side. Other salon owners may not be beauty professionals at all, but recognized the potential to own a successful business and may be struggling getting familiar with this unique industry. No matter who the owner is or what motivated them to start their salon business, it's common for salon owners to face unexpected challenges when operating a new business. Here are 5 common mistakes I see often, and how to turn them around.

The first common mistake, and probably the most imperative, is salon owners not tracking their business finances clearly. This mistake in particular can possibly lead to very dire consequences. Without knowing exactly what's coming in and going out, salon owners often overspend, underprice services, or miss profit leaks. This leads to cash flow problems and stress, even when the salon looks busy on the surface. These problems can be fixed by setting up simple monthly reports or by using software to track revenue, expenses, and profit margins. Mastering your money is mastering your salon and that's why financial education isn't optional, it's the foundation that turns a busy salon into a profitable one.

The second mistake most salon owners make is ignoring their retail sales. Retail can make up 15-25% of salon revenue, and making the mistake of neglecting this revenue stream leaves thousands of dollars on the table each month. This directly affects client loyalty, because guests end up buying products elsewhere, often undermining their stylist's recommendations. Some ways salon owners can prevent this issue from the start are by training their salon team to recommend products authentically through education and engaging their client in their experience during the service. Salon owners should create aesthetically pleasing and creative displays that feel inviting, not pushy. By showcasing their products in a favorable way, salon owners can ensure that they are marketing products effectively to their customers. Plus, offering take home product recommendations serve as a way to build trust with a salon's clientele.

The third mistake I see commonly made is salon owners failing to have a marketing plan. Without consistent marketing, salons end up solely relying only on walk-ins or word of mouth. While these are effective ways of building clientele, alone they aren't aggressive enough to retain that clientele. Maintaining a core client base involves creating community, and communication is a huge part of that. Inconsistent marketing leads to slow seasons and unpredictable income. Some easy ways to fix these problems are by scheduling regular social media posts, and email newsletters. Offer client referral programs to keep new guests coming in and current ones returning. Offer promotions that emphasize client retention. Devising a plan to effectively market a salon can be crucial in it seeing a return.

The fourth common mistake is not investing in team development. This is particularly important because when staff don't feel properly trained, supported, or valued, turnover inevitably skyrockets. High turnover can be costly and ultimately lowers morale. This can create a shaky client experience. Salon owners can invest in training, mentorship, and recognition so their team feels valued. When the team feels empowered and supported, they naturally deliver better client experiences which directly influence whether clients return.

The final mistake I see most commonly in salons is failing to rebook clients. It is never guaranteed that a client will come back once they leave the chair, but rebooking them before they leave is committing the customer to returning. In some cases, when clients aren't rebooked they can end up stretching the time between their visits longer than ideal, resulting in detrimental damage. Failing to consistently rebook clients causes gaps in the schedule (which also effects employee morale), inconsistent revenue, and a cycle of always seeking new clients. It is important to encourage stylists and front desk personnel to secure the next appointment before the client leaves. This is the only way to guarantee clients will have an appointment on the books.

Owning a salon business can be difficult, especially when trying to keep from making mistakes that can leave business suffering. Mistakes like not properly tracking finances, ignoring retail sales, not having a marketing plan, poor team development, and failing to rebook clients can be solved all at once by the right salon consultant. Beauty Plug offers services like retail management, inventory tracking, team development, local marketing outreach, and so much more. Even these small shifts can create major business growth and set the foundation for a thriving salon.