April 7, 2015

Why do salons or spas fail?

Most businesses including salons and spas fail because they run out of operating cash. US government studies indicate 8/10 businesses fail because their revenues do not match their expenses so the business runs out of cash to continue to be in business.

The following three reasons are why many salons or spas revenues do not bring in enough of the green to stay open.

1) Not marketing to the right audience: Know your business and who you are marketing to. Know your neighborhood, the people who are around and the type of people you want to bring in. Make sure your prices are within range for your clientele, and you provide not only specialized services, but services that are in high demand for your area. If you are in are in area that is dominated by a military base but you do not offer men’s haircuts or buzz cuts then you did not define your salon suited for generating optimum revenue.

2) Not communicating with your customer. To stay in business you need repeat customers and satisfied customers. If you are not getting the feedback that you need to adjust and improve your business then clients will not come back to your salon or spa.

3) No leadership or the right leadership. It all starts from the top. The owner and or manager of your salon or spa must be focused and experienced to make the important day to day decisions and long term decisions to improve the bottom line as well generate the revenue needed to keep the salon or spa open!