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Salon Business 2024-2030: The way to profits

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09 лютого 2024

How can the manager of a modern beauty salon create a profitable business?

1. A modern beauty salon, cosmetology centre and SPA, as a rule, combines three directions, namely production, service and trade. 

2. Time is the only non-renewable resource for a beauty salon. 

Time management is the main task of the manager!

3. Obediently following the common stereotype that "a client goes to the master" is a delusion and reality at the same time. 

The client goes where we lead him. 

"Volume eyelash extensions Flirty 2D. Two synthetic eyelashes are attached to each natural eyelash. Stunning bushy eyelashes make the look spectacular and incredibly attractive. And you look like a million! Guarantee 7 days. 2 hours, $120" - is a product.

"Manicure + gel nail polish, 1 hour 30 minutes, 10 days warranty, price $49" - is a product. 

"Haircut + colouring + styling, 3 hours, consultation, pre-booking of the visit time, possibility of cancelling the appointment 24 hours in advance, price 230 $" - is a product. 

"Make an appointment with our new master Monica at a 30% discount!!!" - is a sale of the master, which sooner or later will negatively affect the business. This is an undeniable fact.

4. Creating service protocols with timing is a basic action that should be implemented before opening a beauty salon and later improved.

Without protocols, the manager won't be able to manage time, create products, understand what kind of staff the salon needs and how to teach them.

In addition, protocols are a basic element of the service and staff control system in the salon. They are part of the SOP. Without protocols, we can't calculate the production capacity of each workstation for each direction, i.e. the maximum number of hours we can sell in one single working shift. Also, without protocols, we can't create technical regulations for the salon administrators to record clients.  

Because of the lack of protocols for each service, beauty salons lose 2-3 hours per shift at each workplace. And incorrect protocol development (for example, each of them includes 15-20 minutes for master's rest or client's being late) leads to artificial decrease of beauty salon's production capacity.

5. A modern beauty salon operates according to standards of service and service realization, strictly following protocols, flow charts and customer service regulations. 

6. If time is the most valuable and non-renewable resource, we understand that it must be sold in the whole volume. 

7. A business model is not the same as a beauty salon, cosmetology centre or SPA.

In the book "We Have Opened!" my interviewee asks in amazement: "Well, what kind of business models can beauty salons have? You come in. Get a haircut. Leave." Exactly so, this is one of the common business models, and quite successful, if you stick to it. Sometimes it goes like this: "Signed up. Came. Got a haircut. Gone." This is a completely different business model.

"Purchased a season pass for the course. Scheduled visits. Visit." - is another business model. Or: " Made an appointment for four services that are being performed at the same time. Arrived. Had a manicure, pedicure, haircut and colouring done at the same time" - a very forward-looking business model. 

We are used to the fact that in a typical beauty salon the administrator keeps an appointment with a particular master. It is possible to continue to work this way in the future. The question is different - how long will your business be able to survive?

8. It only makes sense to open a business in the beauty industry if you have a clear idea of how to improve the lives of consumers of beauty salons and clinics. 

About the author

My name is Nataliia Honcharenko. Since 2011 I have been the founder of The Concepts. Beauty Business School (Ukraine) (until 2020 the school was known as Beauty Salon Boss). For 13 years of the business school's existence, the formation of various programmes allowed more than 5000 owners, managers, administrators and masters of beauty salons, cosmetology clinics, SPAs and also specialists of distribution companies to improve their professional level.

The books "The Perfect Beauty Salon Manager", "My Beauty Salon" and "We have opened!" also belong to my authorship. They are read in 35 countries around the world. Presently, I am starting work on a new book in English, "Managing the Modern Beauty Salon".

In 2017 and 2018, I won the "Stella International Beauty Awards" ("Best Beauty Education Company in Ukraine" and "Best Business Development Consultant in the Beauty Industry of Ukraine"), which also characterises me as an expert worthy of your edition's level.

Since 2013 I have been accredited as a consultant in the field of "Operational Management of Beauty Industry Companies" in the Small Business Support Programme of the European Bank for Reconstruction and Development (EBRD), which gives me the opportunity to consult companies within the grant projects.

Honcharenko's Premium Education




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