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Setting Up Shop – The Basics of Salon Ownership

If your dream is to open a hair salon, you’re in luck… the salon industry is growing. Since the most recent recession, the industry has rebounded and is expected to continue growing for several years. While the timing might be right, you’ll still face a lot of competition, as there are nearly a million salons across the country. However, don’t let that number deflate your ambition…those salons are generating over $40 billion a year in sales. If you’re committed to opening a salon, you’ll need more than determination to get started. Here are a few things you’ll want to do before you open your shop:

Step 1: Plan, Plan, Plan

Business Plan The point of a solid business plan is to figure out what your business is, how it will be successful, and how you’ll troubleshoot problems. If you need a little help getting started, here are some great resources for you including free business plan templates and business planning software called LivePlan that can get you on the right track. Funding Whether you’re borrowing money through a traditional bank loan or have teamed up with investors, you need to figure out how much money you need to get started, and where it will be coming from. Find a Mentor As you’re planning your business, it’s a great time to find a business mentor. It’s best to find someone in the salon industry that can answer questions for you as you start and grow your business. Accounting To keep track of your money, inventory and project growth, you’ll want to implement an accounting and inventory program. On the accounting side, you’ll need a program to track your revenue and expenses. You’ll also need to figure out how you’ll pay Uncle Sam. You should sit down and chat with an accountant to help you get started. Location The right location makes all of the difference in the world. You want to select a spot with good traffic and high visibility that is located where your target demographic shops or lives. Enlist a realtor for help or drive around and look for vacancies in areas you are considering. Know the Area Know the demographics, the local competitors, and think about how your customers will get to your salon. How is the parking situation? Is a construction project planned on your block? You want to know everything you can about the area before you select a place.

Step 2: Implement

With the planning stages complete, you’ll move on to details of actually opening your salon. Design to Your Market Before you start painting the walls and picking out furniture, make sure that your design matches the kind of clientele you want to attract. If your customer base is the younger generation, go with fun, bold colors and furniture. For a higher-end vibe, go for a modern and sophisticated look. In other words, tailor your look to your intended client base. Customer Service Standards After you’ve created an environment that your clients will love, you have to follow through by offering excellent customer service, which will make them want to come back. Marketing To be successful, you need clients. To attract clients, you need a marketing plan, so set aside a budget to promote your business. Without it, you’ll struggle. Consider hosting an event like a ribbon cutting or a small charity event to attract more customers. For example, sponsor a school play or have the staff volunteer at a local baseball game. You want to get the word out about your salon, and getting involved in your community is a great way to do that. Web Presence Before you dive into a design for your website, take a look at the sites of your competitors and try to design something that sets your salon apart. Your site should be attractive, easy to navigate, and ideally include helpful information for your customers, such as hours, location, contact info, and pricing. If you have the money, hire a professional to create your site, but if you’re tight on cash, there are plenty of DIY website platforms to consider. Get Social Social media is an important component to your marketing plan. You can use as many platforms as you’d like, but make sure you post regularly and engage with your customers. Retail As an owner, you’ll need to select products to retail. Consider one to three lines that take care of all needs for your various clients. Don’t expect it to be a big moneymaker right up front, as you’ll need to buy inventory and it will take time to sell it, let alone you’ll need to reinvest in the next batch. Now that the planning stages are over, new salon owner, it’s time to get to work….
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Social Media Versus Community Management

It’s easy to confuse the responsibilities and benefits of social media with that of community management. To help clarify the two entities and identify the best talent for the responsibility in your salon, take a look at this well crafted article by Sarah Judd Welch – CEO/Head of Community Design at Loyal Hello! as posted on American Express OPEN Forum. The Difference Between a Social Media and Community Manager Though they can overlap, social media and community managers serve two different business functions. Here’s how to maximize the efficiency of both roles. If every other company seems to be hiring a community manager these days, it’s not your imagination. Demand for the role has grown 29 percent year over year. But a quick look through job descriptions for community managers may leave hiring managers confused. Isn’t this the same role as a social media manager? Though the roles may overlap at some companies, they’re different job functions. Social media is an online marketing and communication channel defined by the ability of consumers to create their own content and directly interact with brands and other consumers. A social media manager manages this marketing channel and sometimes also manages the marketing content distributed on the channel. The goals of social media are to:
  • Increase brand awareness and reach (ultimately, to acquire new customers)
  • Distribute relevant marketing content and advertising
  • Provide customer support
On the other hand, community management is the discipline of engaging consumers with each other. Often, community will also include ensuring customer happiness, acting as the customer advocate internally within a company, maintaining customer retention and facilitating the creation of common resources. Social media is to community as graphics are to design; it’s just one potential output of the discipline. A community manager may also use email, independent platforms, in-person events, forums, product features, etc. The goals of community management are to:
  • Connect customers to one another
  • Keep customers happy
  • Make customers stay (retention)
A community manager may use social media channels to achieve these objectives. However, social media is just one communication channel for engaging with and growing a community. Social media is to community as graphics are to design; it’s just one potential output of the discipline. A community manager may also use email, independent platforms, in-person events, forums, product features, etc. The options for channels can be endless, because community management is a channel agnostic business function. A community manager may also touch or even manage customer support, whether via email, phone or social. However, a community manager’s focus is on resolving the issue indefinitely so as to not be repeated, rather than responding to and resolving individual issues. For example, an airline social media manager may help rebook a flight via Twitter direct messages. A community manager may also do this, and work with a technical team to create an app allowing customers to more easily rebook flights themselves. So which role do you need for your growing company? Let’s reframe this question: Are you currently looking to market to new customers on a low-cost channel, or are you aiming to retain and leverage your existing customers? Most likely, you need both. However, you may need different employees for each function. The interviewee who’s an excellent copywriter for social content is likely not the same interviewee who instinctively knows how to find commonalities between and introduce customers to each other. When discerning community from any marketing activity, just remember that marketing brings people in the door and community can ensure they stay. Like this article? Follow Sarah Judd Welch or check out some the great small business advice from American Express here: