4 Growth-Stage Obstacles Salon Owners Face and How to Overcome Them
Business growth is exciting. It opens up your salon to new opportunities and provides new experiences to your employees. Running a business is, however, not a bed of roses.
Even though the growth stage means that your salon or day spa is exploiting its profitability potential, it also comes with various challenges.
Studies show that more than 80% of small businesses make it past their first-year mark. This number, however, reduces with time and only half of them get past 5 years.¹
If you hope to give your salon a fighting chance, you need to effectively navigate the business growth challenges you face.
Salon Business Sustainability: Top Challenges You’ll Face
Your salon business scalability is highly dependent on how well you overcome the challenges you face at the growth stage. At this point most of your priorities have changed, and your main goal is enhancing sustainability.
Here are the challenges you'll face and practical tips on how to overcome them.
Cash Flow and Financial Management
More than 80% of small businesses fail due to poor cash flow management.²
If your business outflows are more than inflows then your salon is in trouble. Start by auditing your finances to determine your financial position.
You should then implement strategies such as;
Accessing flexible lines of credit.
Renegotiating your credit terms with your suppliers.
Accurate and timely invoicing.
Prioritize credit control.
You should also start using an accounting system.
Diverse Needs of Your Growing Customer Base
At the growth stage you have a steady flow of customers. While this is exciting, it also means that you have to scale your operations to meet their diverse needs.
Conduct extensive audience research to identify what your customer really wants. You should then follow this up with a growth plan. For instance, if you have more cryotherapy customers, you may have to get a new cryotherapy machine. This means that you have to research several manufactures for an affordable cryotherapy unit price.
Inventory Management
The influx of customers means that you’ll need more stock. Stay updated on your inventory status to avoid running out of essential products. For instance, if your main offering is cryotherapy and tanning services, you need to make sure the relevant products are always in stock.
Don’t lose customers to the competition because you can’t offer them the products they need.
Demands of a Growing Workforce
A major part of scaling up your salon is increasing your workforce. This ensures that you're able to meet your customer's demands. It, however, comes with challenges such as workplace conflicts and complex administration.
This can easily be solved with an HR management system.
Enhance Your Salon Business Sustainability by Navigating These Challenges
The growth stage can make or break your business. It's exciting, but it also comes with several challenges. To enhance the scalability and sustainability of your salon, you need to stay ahead of the above challenges.
Founded on facts: for peer-reviewed articles, scholarly journals, and articles cited above please see the below sources.
What Percentage Of Small Businesses Fail -- And How Can You Avoid Being One Of Them? - https://www.forbes.com/sites/forbesfinancecouncil/2018/10/25/what-percentage-of-small-businesses-fail-and-how-can-you-avoid-being-one-of-them/?sh=f91ed9743b5f
Billionaire Richard Branson: This is ‘the biggest killer of start-ups’- https://www.cnbc.com/2017/01/17/billionaire-richard-branson-this-is-the-biggest-killer-of-start-ups.html
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