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5 Smart Ways to Avoid Salon Business Failure

Updated on June 27, 2013

Starting your own beauty salon business is one of the most exciting decisions you can make as a hairdresser. Using your skills in a creative manner, being your own boss, setting your own priorities is thrilling. Moreover, as you start doing things on your own, you get more confident and that opens up a world of possibilities for the growth of your salon business.

Still, lots of beauty salon businesses fail. Why? Because they commit the most common mistakes every entrepreneur and business owner does. If you want to lead a successful salon business, follow these 5 tips and avoid making common business mistakes.

1. Embrace reality

Most business owners think they will break-even in first or second year and start making profit from the third, but that usually doesn’t happen because of a lot of factors that were not considered earlier. Therefore, have a clear idea of what your startup costs will be and be realistic about achieving your yearly financial targets.

2. Be consistent

“Brand equity” is something that can neither be hired, nor purchased or built instantly. It takes years of hard work to build that. You can shorten that time period by being consistent in your offerings to your customers.

If your salon is known to be a Green salon, customers would expect that all the products and processes used in your salon are environment friendly. If you keep following Eco-friendly practices regularly, you can win salon customers' trust and encourage them to evangelize your business amongst their friends and colleagues.

3. Charge what you’re worth

Most hairdressers underestimate their value. While starting out, you may think of giving discounted options (than your established competitors) but this works only if there is a specific reason that your service costs less.

If you think you should charge a particular amount for a specific cut or style, you should stick to it, even if it is higher than that of your competitors. Perhaps, you can sit down with your client and tell them about the pricing before they even sit in your chair. This works for you as well as for them.

4. Hire smartly

While hiring salon staff, make sure you hire individuals who have a passion for their art. Such employees will excel in their field and they will always keep your clients happy. Don’t hire someone by judging their school grades or their personal accolades, rather, hire someone who wants to get better every day in what they do.

5. Have fun

As a business owner, it’s very important for you to evoke the right type of emotions from your customers for building long term business association. Therefore, always be polite and nice when you’re at work. It makes your customers and your salon staff feel confident about your abilities and it's a great way to avoid salon burnout.


Starting any business is not easy. However, if you get the basic things right, there is a high chance that you will eventually succeed in business. If you follow the five tips discussed earlier, you will avoid failure in your salon business.


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