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Articles > THIS Is The #1 Reason Why Salon Owners Close Their Business
November 21, 2019

THIS Is The #1 Reason Why Salon Owners Close Their Business

Phorest Read This Before Opening Your Own Hair Salon Business Tips Top Factors For Closing Down A Salon
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What They Don’t Tell You About Opening Your Own Salon

Is becoming a successful salon owner at the top of your career bucket list? Before you start the process of opening a salon, let’s get real about what you can expect. Because according to a study conducted by Phoresta company that specializes in computer software for hairdressers, spas and beauty salon owners—of the 1,000 salon owners they surveyed, 45 percent said they considered closing their salon at some point.

 

So because we’re rooting for you to run a successful salon business, below, we’re sharing the things people don’t tell you about opening your own salon—like, why salon owners consider closing their business, the biggest challenges of setting one up AND the most challenging aspects of running one. Keep scrolling to learn more!

 

Why Salon Owners Consider Closing Their Business

 

Phorest Read This Before Opening Your Own Hair Salon Business Tips Top Factors For Closing Down A Salon
Image courtesy of Phorest

 

  1. Difficulty finding and managing staff.
  2. External factors like the state of the economy, rental rates and taxes.
  3. Their passion for hair became a chore.
  4. Marketing their salon business was too taxing.
  5. Trouble keeping up with the admin and accounting side of the business.
  6. Difficulty juggling a business and family.
  7. Ready to retire.

 

 

Biggest Challenges Of Setting Up A Salon

 

Phorest Read This Before Opening Your Own Hair Salon Business Tips Top Factors For Closing Down A Salon
Image via phorest.com

 

  1. Finding and hiring skilled staff. 
  2. Creating a business plan and projecting financial figures.
  3. Finding the right location for their business.
  4. Building a website and establishing a social media presence.
  5. Marketing their salon and getting the word out.
  6. Securing a loan or funding.
  7. Designing the salon and equipping it with furniture.
  8. Choosing the right suppliers.

 

Most Challenging Aspects Of Running A Salon

 

Phorest Read This Before Opening Your Own Hair Salon Business Tips Top Factors For Closing Down A Salon
Image via phorest.com

 

  1. Taking on the human resources role—hiring, training, payroll, commission.
  2. Handling the admin side of the business—cash flow, stock, permits.
  3. Thinking of sales promotions and marketing plans—loyalty programs, retention, upselling.
  4. External factors like the state of the economy, rental rates and inflation.
  5. Time management. 

 

What’s Next In The Process

Feeling overwhelmed? We got you. Put your anxiety at ease by checking out some bonus business tips below that’ll help you get started in the planning process: 

 

 

But don’t let these stats deter you from one day opening your own salon! Use them as motivation to be fully prepared before taking the plunge and beginning the exciting, crazy venture that is running one’s own salon. Good luck, BTC fam! 💖

 

TAP HERE To Learn 3 Key Things Your Salon Website Is Missing

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