Your own salon - Getting it right in the beginning

The dream of almost every graduating aesthetician is to one day open their own salon. If after working in the industry for several years and gaining valuable experience the next logical step for you is to start your own salon. Or if you are new to salon ownership then this article may provide the information you need. Because getting it right in the beginning will save you money headaches and possibly the future heartache of business failure.

But before we go any further lets see if you have the qualities and commitment necessary for operating a successful aesthetic business. Remember just because you are an excellent aesthetician does not necessarily mean you have the ability to be an excellent business manager. While it is essential that you have a passion for aesthetics and that you envision your new business being committed to providing customers with a high quality service, it’s not all that you require. As a business owner you will also be required to establish staffing procedures and policies, create marketing opportunities, supervise day to day operations, monitor the finances, and attend to all your legal business responsibilities. So owning your own business is not a piece of cake. It is in fact hard work so before you go ahead make sure you are prepared for the long haul because a successful business is not made overnight.

Having said all that, there are also unlimited opportunities to make money and a stable financial future for your self and your family when you go into business. How successful the business will be and just how much money you make largely depends on the initial planning and the amount of time and effort you put into your enterprise. So don’t be fooled that it will be easy to succeed because the beauty business is a very competitive one.

And those who do not have a good business plan and the correct strategies in place, along with a strong desire to be successful will often fail or at best have a business that just pays its way. And operating a business that just pays its way and limps along from one week to the next is unfortunately where many salon owners often find themselves. In many case this could have been avoid by good planning and realizing that one person can not have all the answers knowledge or expertise. By seeking the help support and advice of other business professionals such as a lawyer; accountant and beauty industry specific business coach these businesses could have grown and prospered.

As one of the leading industry specific business coaches in Australia I am often called in by a stressed business owner when the business is starting to fail. And while I can generally turn the business around and into profit I would have loved the opportunity to be in at the commencement so that many of the pitfalls and stress could have been avoided. And also many thousands of dollars saved. In this article I will endeavour to offer the advice that could save you the stress of a failed business. But for a more in depth support please contact me - details at the end of the article.

The Business Plan – if you plan to succeed

Firstly you will need to create a Business Plan. A well-prepared business plan is essential throughout the life of your business, not just before you start. You will need it later on to guide your focus, to prepare for expanding the business or to help implement new directions, technologies or products. Before you start your business, a business plan will ensure that the business is feasible and that there is a well laid out blueprint for action. The business plan will cover critical business decisions made at the start, for example organizational structure, partners, initial debt, etc. It will be geared to the initial funding or capital requirements from a bank or investor.

If you require outside funding from banks etc the business plan will need to very in-depth and it is suggested that you get assistance from your accountant. you wish to set up shop in a shopping centre you will often find that they will require you to present your Business Plan so they can see if your business will be viable and can succeed through the term of the lease. Also once you are in the business, a business plan helps you track how you’re going. Business planning is an ongoing business activity – you should regularly review and revise the plan throughout the life of your business. Part of your business plan is the marketing plan.

The Marketing plan

This is a gutsy part of the business plan covering marketing and promotions, selling strategies, pricing and results. The ‘link’ between your marketing plan and the resulting business plan is vital. Marketing attracts and retains the customers and ultimately ‘drives’ the performance of the business.

You can use the ‘five Ps of marketing’ as a structure to discuss your marketing plans:

• the right Product (services and retail)
• the right Price
• the right Place (location)
• the right People (staff, business experts and customers)
• the right Promotional strategy

Marketing strategies

Your marketing strategy involves selecting a target market, developing an appropriate mix for each and allocating the resources necessary to achieve its goals. It is important to understand that the practicality of your business plan is determined to a large degree by how realistic the sales forecast and the supporting marketing strategy are.

Four variables shape your marketing strategies for meeting the customer needs:

• product features
• quality of product
• level of service to the customer
• price – and this must be profitable to the business

You will need to decide the Branding of your business – how do you want your business projected to the general public. How you position your Brand will influence the services you hope to provide and this in turn will dictate the type of equipment or products stocked. A cautionary note here – I often get called into help a failing business that has not successfully Branded and their potential customers are receiving mixed messages. Not good for business. An example of this would be a salon that projects itself as very clinical offering high tech services but stocks a skin care range that can not support the services. This salon would have been better stocked with cosmeceuticals. Alternatively a salon that concentrates on delivering the more traditional pampering services might be best to stock an aromatherapy or organic product line. The services and products you stock must also be suited to the demographics of the trade area.

Choosing the right location to start your new salon can also be a big determining factor to its success. The major points to consider are first what particular area or suburb do you want to locate and are there any specific site within that area that would suit. Then ask yourself is the population base large enough to support your business? Are the demographics compatible with the market you wish to attract? What is the competition like in the area? Is the available site the right size for your business – large enough for growth but not too large that you are paying an unnecessarily high rent.

The physical layout of the business is also extremely important and must be practical but aesthetically pleasing. When choosing a site pay particular attention to the shape of the premises because unusual shaped premises can be harder and more costly to fit out. In addition they often have hard to use areas and thus wasted space. And where are the plumbing and electrical outlets situated? By keeping all plumbing within a certain area you will save valuable dollars. There are many savings to be made in the fit out so make sure your draftsperson and builder are very aware of your budget. The amount of money to set up a salon will depend on the quality of salon, the fixtures and fittings you would like to project this quality, the equipment you need and your stock inventory.

The amount of money your business will need to generate to break even and then to make a profit will largely depending on your variable expenses for example wages, supplies, cost of goods and your fixed expanses like rent, utilities, insurance etc. You will need to know how many services and/or retail sales you need and if they are achievable. If it doesn’t stack up than you will have to decide if the idea of opening your own salon is feasible, or could you adjust your plans and make it more feasible. And any decision you make must be based on the goals you have for your intended business.

There are also numerous operational issues you will need to decide on. For instance are you going to employ people and if so will they be employed as casual, part-time or full time employees. You may even decide on contract staff. What are the qualifications and qualities you desire of employees? And will you be offering a good staff training program and introducing an effective systems of incentives so you can recruit and retain valuable staff?

Once you have a team of employees you will need to furnish them with the tools to perform at the high standard you desire your customers to receive. This will require you to provide them with all the necessary equipment and products to successful perform the services. It also means that you need to provide them with a formal salon staff policies and procedures manual so they are able to deliver a high standard each and every time a customer receives a service in your salon. Your salon staff policies and procedure manual is the “Blueprint” necessary to enable your team to provide a consistent level of service that will lift it above the competition.

Quality Customer Service is essential through the life of your business but never more so than in the early establishing of your business. It is important that both you and your staff go the extra mile and happily meet the customer’s needs wants and desires in their aesthetic services and home care requirements. If this is done you will be a long way towards establishing a strong and loyal customer base.

If you decide after taking everything into consideration that you have the necessary passion, drive, commitment and the start-up money then I would suggest that you may be an ideal candidate for operating your own salon. But one final word before you start looking for the perfect location go an do a business management course at your local TAFE or through your states Small Business Resource Centre who provide numerous informative seminars and workshops. Read everything you can and consider employing a industry specific business coach to guide you through the mine field of starting up in what can only be described as a very competitive industry.

Getting the best out of your Staff Training Program

Simply speaking the aestheticians or therapists you employ can make or break your business. And it’s not only their ability to perform treatment procedures to a high level of proficiency but also their attitude and customer relations skills that affect your business for the good or bad. Your employees are on the frontline of your salon or spa and the impression they make will determine the success of your business.

Because no matter how much time effort or money you invest in promoting your business how customers bond with your staff will determine if and when customers rebook and revisit your facility. So it goes without saying that a team of efficient, happy, enthusiastic and well-trained employees can be the most valuable business asset you can have. And while training can seem a luxury when you are trying to keep your business running, one of the benefits is that employees who are learning and growing tend to stay with a job longer. And we all know the benefits that a long team committed employee will bring to the business.

There is no doubt that staff training can be beneficial to your business. And it should be considered as a great opportunity to up-skill for both you and your team. The most important consideration is to design your training program around desired outcomes therefore the first priority when creating your staff training program is to outline the goals you are hoping to achieve. And while there may be many goals and desired outcomes in goes without saying that most should lean towards increasing service and retail sales. Identifying your training needs is the first step to establishing a relevant and effective plan for your business.

What to do before designing your Staff Training Program

The business needs - start by assessing your businesses current growth needs and how they are meeting your Business Plan objectives. Identify what areas may currently not be meeting these objectives. For example you may identify that your retail sales are not reaching projected goals. This would then imply that you would need to improve employee’s product knowledge in addition to training in communication skills; improved or advanced consultation and analysis; selling skills and even customer service. Training in all these areas might be required to deliver an overall sales improvement that would meet your business objectives.

Assess staff skills and needs – the main reason of an appraisal is to review employee’s performance and potential. It also identifies where any problems exist which in turn can highlight a need for training. Appraisals can benefit both employers and employees by making it easier to identify strengths and weaknesses. It also allows you to identify skills gaps which can be filled by training. And as an employer don’t forget yourself, you may benefit from training in management and leadership.

What does a good aesthetic Training Program contain?

Be very clear on the training goals you wish to achieve. Your staff training and development program can and should include one-on-one and group training. One-on-one is when you undertake to mentor an individual employee. The employee may be a new team member or someone who requires extra training or encouragement. Mentoring these individuals will help them perform better, improve morale and aid them in quickly gaining skills. While many business managers feel their time is too important to devote to an individual employee if you want them to grow and help your business succeed then this level of training will be necessary. And if you can’t provide it yourself use existing experienced employees to support staff at all levels, improving their knowledge or performance in their role, or supporting them as they take on new roles.

Be mindful that mentoring is not simply answering questions it is about promoting a professional relationship that fosters guidance and support during the mentee’s development. It offers huge benefits to the mentee supporting the development of self-confidence as they take on their new role or tasks, increases their ability to handle responsibility and helps them feel part of the team’s success. A good mentor creates open and supportive two-way communications. They provide constructive feedback and advice. And do not give only negative feedback but instead give a balance of praise and constructive feedback on how to improve. They must also support the mentee to make goals specific and realistic with target dates and monitor progress and help them adapt plans when necessary while providing ongoing encouragement.

Group training is when the team go to workshops, seminars or trade events and these are great in developing the team spirit. Or it can be in-salon training. For maximum results you need to have a good mix of both.

Tips for Developing an Effective Training Program

1. Assess your business gaols and how training will help these to be realized
2. Complete a needs and skills analysis to determine the real need for training and development
3. Make sure it will solve the problem or skills development issue
4. Be sure you are training the right employee for the right position as there is no point taking the time to train an employee who has neither the talent necessary nor the temperament or interest to successfully fill the position
5. Make sure that the employee/s understand the necessity for training and how the training will positively impact on their job
6. Make sure the employee is committed to improvement otherwise they will view the training as a waste of time and invalidate the training potential
7. Design your training to include clearly stated objectives that each employee is fully aware of
8. And make sure there are measurable objectives (not just a wish list) i.e. you want retail sales to improve and by providing the training and any additional tools necessary you expect a 20% increase in retail sales over the next three months – be very specific with the expected results required
9. Provide each employee with a schedule of the training times, dates and content. Explain what is expected of the employee during the training session for example if they are attending an off site training they should be required to take detailed notes and hand in a report of what was learnt and how it will help them reach their individual and salon goals
10. Explain that the learning outcomes of training is the employees responsibility and that you require her to take the training seriously during and after the session and that she must undertake to complete all assignments given and apply the new learning and skills to her job

Be aware that a highly skilled employee will soon become bored and frustrated if they have to constantly sit in on training sessions designed many levels below their skills level. Therefore the more skilled employee’s training needs may be best provided by sending them to out-of-house advanced training courses. This will raise their morale as they learn new information and skills they will feel more valued and will be more likely to stay in the job for longer. On the other hand group staff training might focus on general topics, such as communication skills, treatment procedures, customer service and retail selling. The most important consideration is that the training program is designed to lift the performance of every member of your team regardless of where they fit in the overall staffing structure. Also as often training is provided on the job or in-salon make sure that each training session keeps to a set program and does not become a chat-an-coffee.

Evaluation of the Training Program

Evaluation is another key part of the training program and it is vital important for any changes or improvements that may be necessary of future programs. You need to know what worked well and what may not have. By doing this you will be making sure that the money spent to provide training and the staff time used during training was money well spent. Keep in mind that for training to be a long-term success it must consistently move the business forward and help you meet your Business Plan objectives and make your vision of success a reality.

Beauty salon management and Spa management for attracting new customers.

Any good business plan incorporates a marketing and advertising strategy that is specifically designed to attract new customers. If you are using traditional media channels like TV, radio and local magazines to promote your salon, you advertising expenses will be prohibitively high. 

These media vehicles are notoriously expensive because they rely on a blanket approach, whereby an entire geographical area receives the same ads - regardless of whether each individual your campaign reaches actually meets your target consumer profile! Now, contrast that to the available direct marketing techniques that properly divide your target prospects into segments, isolating those customers who are most likely to buy from you. 

The more you know about which members of your community are most likely to buy from you and which are not, the more precisely you can target those individuals and the further your advertising dollar will go.

It is very difficult to entice people to change their behaviors once those behaviors are entrenched in a regular habit pattern. It is best not to waste your limited advertising dollars on prospects that have no good reason to look for a new salon because they are complacently comfortable with their current one. 

One such target-rich prospect base is that of new movers: those customers who have just recently moved into your neighborhood. By subscribing to a new mover direct mail service that offers up-to-date new mover mailing lists and direct mail fulfillment services, you are able to target only those customers who have recently moved into your business area and are probably already looking for a new salon to try. 

Creating a business plan for your hair and beauty salon is an important step in building a stronger, more profitable business. Be sure to incorporate precisely-targeted marketing campaigns that reach the right customers who are most likely to give your salon a try. Then, follow up the initial visit of new customers with an e-mail, phone call or postcard in order to gather valuable information and send the right message about how you value their business.

The world of fashion changes ever so rapidly from hairstyles to handbags, the seasonal transition covers style, beauty and luxury in its many forms. Any keen observer of fashion understands that at the heart of the cosmetic world lies the beauty salon with its array of treatments to relax, rejuvenate and restore both body and mind. A standard beauty salon management offers a variety of services, which include hairstyling, massages, facial and skin treatments, manicures and pedicures, performed by trained beauticians, masseuses and hairdressers.

Spa is a place where your customers come to relax but what about the owner or manager of the spa? They also need to relax but how they can if they haven't got the time for that as they are so busy? The answer to this is by using spa management system. 

Spa management system enables you to organize the staff's schedule, customer's account, payroll management, appointment book and many other functions. These spa management systems are the solution for the large business. By using these spa management systems you can easily know about the clients and their details about their style and preferences. You can also view whether your employees are at the work or not. Besides that spa management system also allows you to manage inventory and stock. By using online booking feature you can get more and more customers.

Spa management system with a window based interface allows you to work more conveniently even if you are not known to computers. Due to window based interface it also allows you to open many windows at a time. In the spa management system there are different forms for different users with various privileges.

Successful management of a beauty salon means tying together all the ends - from stock taking to handling appointments and schedules. While the former is generally handled by the salon owners, a receptionist is often employed to keep track of schedules using a salon appointment book. The receptionist uses the salon appointment book to schedule the right employee for various clients and their individual needs. A good salon appointment book is a guide which provides the receptionist with essential names and numbers as well as notes and reminders, in addition to appointment details.

Facebook - Put Your Spa Staff To Work!

Facebook - Put Your Spa Staff To Work!

How long are you going to wait for your staff to support your Spa's marketing on Facebook? Are you trying to prove that you can be the Spa that does not generate any income from Facebook? There are a few steps you can take today to kick start your Facebook strategy, are you ready?

1. Start by getting your staff to encourage every single customer to "Like the Facebook Page." If everybody is talking about it, your customers will Like your Spa's Page. Your staff is the foundation your Facebook strategy is built on!
2. Your staff MUST start encouraging your customers to write recommendations on your Facebook page (top right hand corner of the Page). This is the fastest and easiest way for your clients to help you grow you Facebook presence. Recommendations are promoted activity on Facebook, this means the activity will be seen by more of the friends of your customers!
3. Get a demo of DemandForce - They have a simple Facebook application that will enable your customers to book appointments as they surf Facebook. Why let your clients forget to make an appointment? Make it easy for your clients to book appointments on Facebook!

It’s Time for a Paradigm Shift in How You Market Your Spa

It’s Time for a Paradigm Shift in How You Market Your Spa

The educational sessions at ISPA were innovative, dynamic and inspirational. And as Tony Hsieh from Zappos explained, inspiration drives action.

Ready to leave Las Vegas, my bags were packed and I was looking forward to the last session “How to Rapidly Grow Your Business with New Social Media Marketing Strategies.” Speaker Michael Stelzer captivated the audience when he said, “Get ready because I am going to completely shift your perspective from what you’ve traditionally learned in marketing to the radical truths of marketing today.” What was the founder of Social Media Examiner , the world’s largest online magazine specializing in social media, about to say? Allow me to share.

The only constant is people.

Today, industries advance, ideas expand, products morph and customers change at an alarming rate. However, people don’t change at their core.

What do people want?

1. Great insight
2. Access to great people
3. Recognition

Your customers want these things before your products and services. Therefore, in order to be successful, your spa business must stay focused on other people and their desires.

Remove the “give to get” mentality

In the social age, this old thought process simply doesn’t work. No one can predict when people are ready to buy. Marketing messages are coming from everywhere, all the time: television, billboards, email, the Internet and even in bathroom stalls. This marketing onslaught causes two problems. One, it’s overwhelming: people completely tune out and seek refuge from the marketing “rain.” Two, people by default don’t trust you or your business.

It sounds harsh, but it’s true. Do you trust every company selling to you? Traditional “in your face” marketing is friction for your spa’s growth. The more you sell, the more you repel. So, what’s your spa to do?

Focus on other people first

If people inherently want great insight, the solution is to provide quality, relevant content to your audience. Meet their core desires by helping them solve their problems at no cost. At first, this might sound crazy. But you must look deeper. If you help people with the smaller issues, inevitably they will look to you for answers to their bigger problems.

Survey your customers, answer questions they want to know, then provide engaging “how to” information and insight using your social media channels. Regularly post content in your blog then spread the word via your newsletter, Facebook page, Google Plus page and Twitter. Engage with your audience and keep the conversation going. Over time, your spa becomes a credible source of information and perceived as a thought leader in your niche. Content marketing keeps you moving, draws people to you and establishes trust. If you still doubt the evidence of opportunity for your spa in social media, read this.

The Elevation Principle

(Great content + other people) – marketing messages = Growth

The Elevation Principle requires that you do not focus on yourself and your business. Instead, shine the spotlight on others such as outside experts, successful peers and your client’s companies. Because when you lift people up, they lift you up and everyone can rise.

How does this apply to the spa industry?

Theoretically, this sounds great, but it made me think: how can this realistically be applied to the spa industry? Stay tuned for the next article in the series to find out practical ways you can apply this new marketing paradigm to your spa.

Arranging Employee Birthday Parties

Arranging Employee Birthday Parties Every Month

Keeping employees happy is very important and one way to do that is by arranging employee birthday parties. Because of the economic slump, a lot of employees are worrying about losing their jobs and their daily expenditures. Employers can enhance the production or output of their employees by finding ways to ease their minds. There are many ways to motivate your employees like giving 3-day weekends, giving your employees some extra time, take-home work, birthday day-off, and providing a flexible work environment. One of the most important occasions is the birthday so it would help if you celebrate your employees’ birthday.

You already have the personal data of your employees and all you have to do now is to get the birthdates. Since one or more employees will be celebrating their birthdays in a month, it would be best to arrange for monthly birthday parties. For instance, you can schedule the birthday party at the end of every month. All employees celebrating their birthdays for the month should be given tokens as a remembrance of the party. You can make the party simple or extravagant depending on how much you’re willing to spend for the party.

Some Tips on Arranging Employee Birthday Parties

Generous employers will surely not hesitate to spend some money on the party but since you will be holding it every month, you may need to minimize the costs. The cheapest will be to hold the party during coffee break and serve snacks rather than opting for main meals. The party can be held in one room of the office. Set up decorations and a birthday streamer where you will put all the names of employees celebrating their birthdays for the month. Snacks can save you a lot of money because you can simply serve burgers, drinks, fries, and other light foods.

Preparing for the party in advance can save you time and energy. You can designate the tasks like preparing the snacks, decorations, and other matters to different departments. Choosing the tokens should be done by the employer so that you can give it a personal touch. Tokens can be mugs, pens, desk organizer, and other reasonably priced items. Arranging for birthday parties is really easy and you can do it as well. You must do it advance so that you have plenty of time for buying the tokens, preparing the menu, and shopping for party supplies. Celebrating the birthdays of your employees can keep them motivated throughout the year and you can expect better performance.

How to Start a Mobile Beauty Business

Your Mobile Beauty Business

Things have changed over the years and now it’s possible to start a mobile beauty business. Just imagine having your own beauty business and going to different places. The first thing that you should do is work on the business plan. Conduct extensive market research to identify competition. You can check out local beauty salons and see what they are lacking. By knowing the weaknesses of your competitors, you can offer what is lacking to meet the needs of customers. You can use their weakness and use it to your advantage. With a good plan, you can apply for a small business loan.

Convincing potential lenders is quite easy if you have a thorough and formal business plan. Once you have the needed funds, you can now purchase the vehicle, the specialized equipment, furniture, and fixtures for the mobile salon. By now, you should have chosen a name for the business. Apply for a business license so that you can have a legal business. The business license can be a bit expensive but over time, you’re going to get your investment back. The license can take time so you should apply for it in advance. By the time you open your mobile business, the license is ready.

Buying Equipment and Supplies

Aside from the equipment, you also need to get beauty supplies. Use the internet to look for suppliers or manufacturers of beauty supplies. Negotiate for the best deal; the lower the price of the supplies, the larger is your profit. It would be impossible to run the mobile beauty business on your own. You will need a driver and an assistant. Setup the requirements or qualifications of your staffs. Hire only the competent and reliable individuals to ensure business success.

Don’t forget to take photos of your clients, especially the best ones and post it in your home office and in the mobile beauty salon. There are many services that you can offer like hairdressing, nails, and makeup. Determine the right pricing for your services and since you’re starting out, you can offer introductory prices. Don’t forget to carry out extensive advertising in your local area. Send out flyers, business cards, and leaflets. Create a buzz about your mobile beauty business so that by the time you open, customers will be more than excited to try it out. Provide only the best services and through word of mouth, you can gain popularity. Make sure that you provide the same quality of service and maintain it at a great level to ensure highest customer satisfaction.