It’s devastating seeing how many salons and studios are struggling unnecessarily and closing hits close to home when I know it doesn’t have to be this way.
With all the economic doom and gloom currently being predicted, there is a light for the Hair and Beauty Industry…
Did you know that approximately 80% of salons AND studios do not survive beyond their first 18 months and 50% close within 6 years… Even despite seemingly having everything necessary for a thriving business?
While each will have their own unique contributing factors to their closure, certain patterns have emerged…
The MOST COMMON 3 CAUSES are…
Failure to Understand the Business KPI’s
(Budget, Pricing, Promotions and Tracking Performance)
Lack of Business Planning
(Target Niche Market, Client Attraction Strategy and Goals)
Staff Management
(Leadership and Education)
For example if a business is making $75,000 a month, and it costs them $74,800 in running coasts, then they are just “Breaking Even” and would not be considered successful even though the turnover is so high.
Profit margins in most salon and studios are surprisingly slim. According to one report, the average profit is just 8.2% for salons and from 5% for studio’s.
You don’t have to be a big business to be a profitable and a successful one.
Below is a short example from Adri of a “little business” doing BIG things…
“When we started working together they were just covering their monthly running costs INCLUDING their wages on average $26,296pm zero profit and often had to take money from personal saving to top up for some costs – the monthly average takings after working on their business together for just 6mths increased to $35,872pm – that’s going from zero to an average of $114,912 pa PROFIT” ~ Adrienne Varga
The difference between breaking even and making a exceptional profit is having a plan with and strategy, when everything is considered and mapped out with a goal in mind and a purpose for everything you do.
When we begin working with someone, the first place we look at is their pricing structure… What they are charging and how they came up with that number.
Setting your prices by comparing them to your competition and asking other business owners in a facebook group what they charge is NOT considered a pricing strategy – it’s a mistake.
A pricing strategy requires you look at your budget, how many clients you see each day and work back from there.
Is Owning A Business All It’s Cracked Up To Be?
“Many [self employed people] are finding the answer to that question is no. Real estate prices are skyrocketing, and good help is hard to find. Many have rediscovered the long list of perks of working for [someone else].”
~ A sad but true observation.
The good news is that the beauty and wellness industries are two of the fastest growing industries in the world and yet, can often seem over saturated in the market.
HOWEVER…
Most business owners in both industries have gone into business for the love of what they do and the illusion it’s better being a boss, rather than for the love of business!
Few have invested time or money into understanding their business KPI’s, business planning, and have often hired the wrong people for their business goals – hence they are closing down rapidly due to inflation, exhaustion and the inability to compete in the current market.
Some visionaries are taking advantage of the change by pressing on these pain points when looking for staff because they have more clients than they can currently service and need more staff on the floor…
“As a stylist, do you consider yourself an artist or a manager? For many stylists, it’s the former. Creativity and client interaction are where their passions lie. In a comfortable employee setting, these skills can grow and thrive. When you open a salon, everything changes. You have to be a businessperson as well as a stylist. You need entrepreneurial and management skills in addition to your awesome cut and color skills.” ~ A VA Salon Blog
So to help as many industry entrepreneurs as we can, we have decided to help 100 Salon and Studio Owners join the Top 10% Club!
The Top 10% Club is a group of business owners in the Hair, Beauty & Wellness Industry who have achieved exponential growth and sustainable long-term profitability in their business.
If you would like to find out how you can take join the Top 10% Club, register for our next Empowerment Training Session, Adrienne Varga show you how to create a vision and map out a plan for your success.
We’ll be covering three key subjects:
Profitable Pricing
Finding New Clients, and…
The Ice Bath Strategy.
PLUS, we’ll address how to continue growing and strengthening your business resilience no matter what the economic environment looks like AND there are some exciting opportunities for you to access our $2,000 FOCUS Business Growth & Development Grant and heaps more.
There is a catch…
You MUST be in the session LIVE and you MUST to be there till the end to discover how you can apply!
Don’t miss this opportunity to invest into the most vital part of your business… You.
See you on the inside!! xxJodie
TAKE THE FREE 60 SECOND QUIZ
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