Todd's Story [EP:35]

Expanding Your Business: Risks and Rewards Expanding your business can be tempting for many salon owners. But is it the right choice? We're big on using BOTH sides of our minds, the creative side AND the logical side, for this exact reason. It's tempting to expand based on emotion and assume everything will be ok. Although, taking a look at numbers, logistics, and reality tell a different story. One thing is for sure; you must have a solid foundation, including systems in place, before expansion. Otherwise, you could be in for some serious overwhelm and frustration. This blog post will cover critical topics to consider when expanding your business, including franchising, multiple locations, and expanding your current location. We've owned and operated businesses in a ton of different industries for an accumulated 25 years or so, with ties to the beauty industry for over 23. Enough about us; let's dive in! Franchising: A Unique Expansion Option Franchising is a business model in which someone pays a royalty to use your business name, model, systems, etc. While rare in the hair industry , it's still an option to consider if you want to expand. The key to franchising is having well-established systems and processes in place and a strong brand that somebody can easily replicate. Admittedly, I'm not well-versed in franchising. If you're interested in exploring the option further, seek out someone capable of helping you. Multiple Locations: A Popular Expansion Choice One of the most common ways to expand your salon business is by opening another location. Multiple locations can help you reach a wider audience and increase your revenue, but it also comes with challenges. For example, you'll need to hire, train, and manage additional staff, increase your marketing and advertising efforts, and manage the finances of multiple locations. At this level, a management layer that's strong enough to run things in your absence isn't an option but a necessity. These people must be well-versed in and buy into your company's mission, vision, and core values. Expanding Your Current Location: A Lower-Risk Option Another option for expanding your business is to grow within your current location. This option might mean knocking down a wall, taking over another unit, or increasing your existing space's size in another creative way. Expanding your current space can be a lower-risk option than opening multiple locations, but it still requires careful planning and execution to ensure success. We strongly encourage the optimization of your current setup before expanding. One example is rearranging your salon layout to create space for additional stations, etc. Overcoming the Challenges of Expansion Expanding your business is not without its challenges, including: Perfecting your systems Hiring, training, and managing staff Increasing revenue to cover increased costs Marketing and advertising Financial management Increased risk It's crucial to keep in mind that bigger is only sometimes better. In most cases, expanding too quickly can lead to out-of-control increased costs, decreased revenue, and a lack of focus on your core business. Carefully and thoroughly work through a strategy and create a plan you can double and triple-check before making any moves. The Importance of Customer Service I've noticed a shift in the industry, or at least what's reflected on social media, that puts hair pros before the clients. That mindset is a massive mistake, puts businesses at risk, and is reckless. While I agree it's vital to have boundaries and take care of yourself, this is a service industry. Based on what I'm seeing, I assume the mindset stems from ego. I've worked for restaurants, gyms, delivery companies, etc., and when you put being of service at the top of your priority list, magic happens. Building solid relationships with your customers is vital to retaining their business, and providing excellent customer service is the foundation of this relationship. Some tips for delivering top-notch customer service include: Building and nurturing relationships Dealing with difficult or demanding customers effectively Communicating clearly and effectively Following up with customers to ensure their satisfaction Measuring and tracking customer service metrics In closing, expanding your business can be a rewarding experience, but it requires careful planning and consideration. Make sure you have a solid foundation, consider your challenges, and prioritize customer service to ensure your business is booming. Reach out to have a conversation and find out how we can help your salon business!