As a small business CEO, there comes a time when you need to decide on whether you want to expand your business operations or continue to do business in the same capacity. While growing and expanding gives you more income opportunities, it comes with some important responsibilities. Expanding too soon can stretch you thin but waiting too long can have you missing out on amazing opportunities.
If you’re thinking about expanding your salon business, it’s important that you go into it with all of the facts. There are many things to consider when deciding whether or not a second or larger location will be successful for your business.
Before making any commitments, start with these questions:
1. Are you ready to take on more responsibility?
If you don’t feel ready to take on more responsibility, it’s probably not the right time for you to expand your salon business. But if you do feel ready, make sure that this is something you’re going to be able to handle. It’s important to remember that as your salon expands, so will the workload and responsibilities related to running it.
If taking on these new tasks doesn’t appeal to you or isn’t something that interests you right now, then maybe it isn’t a good idea for your business right now either.
2. What is your business plan?
There is probably a reason you’re considering expanding your salon business. Perhaps you’re having to turn people away. Maybe the wait time for clients is getting too long and you want to create more convenience. Expansion should solve a business problem. That’s why it’s important to develop a business plan for your expansion. This will help you define the problem and create solutions for it. It might seem like a lot of work, but it’s important to think about this before jumping in and starting on your next project.
3. What are your various income streams?
Salons offer more than haircuts. They also provide coloring, styling for events, extensions, esthetician services, and more. Additionally, they typically sell hair care products and make a good profit on those sales as well.
A good salon will choose high-end products that have undergone extensive hair care product testing to ensure that their customers will love them. By offering products that no one else does, your salon business can continue to turn a profit and grow.
4. Where will you get the money for your expansion?
If you’ve been wise in saving for future expansion, the funds can come from your business savings. Other savvy salon owners connect with investors or business partners, and some can get more funds from the bank. It’s important to understand your financial options as you expand. Can you rent a small location in a busy part of town or build a larger facility to help you grow your customer base?
5. What kind of location are you looking for?
Once you have the idea for your salon, it’s time to decide where it will be. The location of your salon is one of the biggest factors that will determine how much success you’ll have with your business. Is there a busy area that’s accessible? If so, this is ideal since people are going to be passing by often and want to stop in whenever they can.
Is there one near your current location so that customers don’t have to travel a different way? Is it affordable? You don’t want to spend more on rent than you need to.
How many parking spots are there? One thing customers dislike when visiting salons is getting stuck trying to find a spot after driving around the block five times while their appointment is waiting for them inside. Make sure there’s adequate parking available nearby before committing yourself to any lease agreement.
6. How will you staff your new salon?
While your current staff likely have a full set of responsibilities, you’ll need more people in order to expand. You’ll need to decide on training, experience, and other skills to ensure they are a good fit for your brand and your company. It’s important to have a plan in place so that your expansion plans are successful.
7. Do you have a marketing plan and budget in place to generate buzz and gain clients?
A marketing plan and budget will be critical to helping your salon expansion be a success. Creating a buzz around the expansion, planning fun events, and offering opportunities to win prizes will all help you connect with new customers and keep your current ones happy. Who wouldn’t want a spa day or a collection of incredible hair products for free?
A good marketing plan will include goals, objectives, and tactics for reaching your business goals.