Beyond the artistic side: what successful salon and spa owners know:

Taking Control of Your Salon Business
from East Coast Salon Services July-August Connection Catalog, pg. 2
Bruce Goldstein, Vice President/CFO, East Coast Salon Services

The decision to open a salon is life-changing.

Many times it is the result of years of hard work and sacrifice, however the focus must not be solely on the artistic side but equally on the day to day requirements of managing a business (viewed by some as a necessary evil).

The success of a salon is measured not only in terms of satisfied clients, but also the ability to manage the financial aspects of the business by setting realistic goals. So how are these goals set? The first step is obtaining the proper analytical tools and industry guidelines to measure the salon’s activity.

Financial information should be available to determine revenue generated by various departments within the business such as color services, styling, nails, waxing and sales of retail products. Realistic weekly and monthly goals should be set not only for the business as a whole, but also for each professional within the salon or spa. Along with specific revenue sources, projected fixed and variable expenses of the salon should be budgeted. If the salon is not achieving revenue goals, you can be sure that when it comes time to pay the bills, there will not be sufficient funds available.

Successful businesses do not become that way by accident. Their owners possess specific traits and tools that they rely on each day in their businesses:

• Ability to Make Decisions: Owners are required to make a whole number of decisions on hiring, pricing, marketing and business culture in their salons. Decisions are not always black or white and may not be easy, but must be implemented—maintaining a focus on the goals of the business.
• Customer Service: The goal of the salon must be to provide the most professional level of customer service (including attire of employees) with the goal of creating the most inviting environment possible for clients. Salons are “feel good” businesses, and making every salon guest “feel good” should be the priority of every employee, from the moment the client first enters the salon and throughout their entire salon experience.


• Business Strategy: A (written) business plan should be in place to define and drive the activities and behavior of the entire organization. A sound strategy includes a financial plan of attainable goals, product strategy, marketing plans and employee retention. Without it, the business becomes a ship without a rudder and out of control.
• Financial Road Map: Successful business owners create a financial road map and budget—and then practice the discipline to follow it. A financial plan reminds owners and managers where and how to most effectively invest money to reach established goals.
• Training and Education: Our business is so dependent on new styles, techniques, products, equipment and trends. It is imperative that every professional within the salon or spa understands the need for continuing education in order to provide a constant source of inspiration and updated technical skills to propel their careers forward and meet the needs of clients.
• Team of Advisors: Every successful business owner recognizes the need to have trusted advisors to help maintain their focus on their path of success. Your East Coast Sales Consultant can be a great resource, providing valuable information about products, services, inventory control, merchandising, marketing, industry trends and guidelines.
• Work-Life Balance: Establishing a balance between career and personal time is important while maintaining a focus on reaching business goals. Successful entrepreneurs recognize that how they invest their time directly impacts how effective they will be in growing their business.