{"id":45193,"date":"2018-11-13T09:00:30","date_gmt":"2018-11-13T08:00:30","guid":{"rendered":"https:\/\/phorest-ob-staging.com\/?p=45193"},"modified":"2024-11-05T12:10:07","modified_gmt":"2024-11-05T12:10:07","slug":"failing-salons-5-warning-signs-fixes","status":"publish","type":"post","link":"https:\/\/www.phorest.com\/au\/blog\/failing-salons-5-warning-signs-fixes\/","title":{"rendered":"Failing Salons: 5 Warning Signs &#038; Fixes For Continued Success"},"content":{"rendered":"\n<p class=\"p3\"><span class=\"s1\">It fascinates me when I see two seemingly identical businesses in completely different financial positions. While one flourishes, the other flounders.&nbsp;Oftentimes, a little probing into failing salons will reveal that the differences come down to the systems and processes in place.&nbsp;Fortunately, when things start going wrong, there are warning signs that every salon, clinic &amp; spa owner should look out for. <\/span><\/p>\n\n\n\n<!--more-->\n\n\n\n<p><strong>Listen to the audio version of this blog, and&nbsp;<a href=\"https:\/\/www.phorest.com\/blog\/\" target=\"_blank\" rel=\"noreferrer noopener\">subscribe to the Phorest Blog here<\/a>:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-spotify wp-block-embed-spotify wp-embed-aspect-21-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Spotify Embed: Failing Salons: 5 Warning Signs &amp; Fixes for Continued Success\" style=\"border-radius: 12px\" width=\"100%\" height=\"152\" frameborder=\"0\" allowfullscreen allow=\"autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture\" loading=\"lazy\" src=\"https:\/\/open.spotify.com\/embed\/episode\/3WLgmfvQvj8Krr5LI2Jyzx?si=SBYC8jWtRhCmQLf-d8VAgw&#038;utm_source=oembed\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"p4 wp-block-heading\">Recognising Failing Salon Trends &amp; Acting Before it&#8217;s Too Late<\/h2>\n\n\n\n<h2 class=\"p4 wp-block-heading\">1. You don\u2019t have any cash reserves<\/h2>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Symptoms:&nbsp;<\/b>You\u2019re missing supplier payment deadlines and starting to worry about how to pay your team. Money that comes into the business is instantly swallowed up, and you may be injecting your own cash to pay the bills.<\/span><\/p>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Causes:&nbsp;<\/b><\/span><span class=\"s1\">Over-spending and lack of budgetary planning.<\/span><\/p>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Remedies:&nbsp;<\/b>As the saying goes, <em>\u2018cash is king.\u2019<\/em> This means staying on top of your cashflow to ensure you always have enough to cover your costs. The easiest way to do this is with a <a href=\"https:\/\/www.phorest.com\/blog\/salon-cash-flow-projections\/\" target=\"_blank\" rel=\"noopener noreferrer\">cash flow chart<\/a>. All you need is a simple spreadsheet that tracks your current and pending expenses over the coming months, against expected and actual revenues.<\/span><\/p>\n\n\n\n<p class=\"p3\">Whether you choose to approach your cashflow issues with a mentor, accountant, or bank manager, please don\u2019t be afraid to ask for help. There\u2019s no point suffering in silence. The same goes for suppliers \u2013 if you\u2019re struggling with bills, suppliers far prefer setting you up on a payment plan than to see you default entirely. <\/p>\n\n\n\n<p class=\"p3\">To get back on track with your cashflow, it&#8217;s important to scrutinise every expense, both large and small, to ensure you\u2019re getting the best possible rates and terms. You may be surprised at how much you can save.&nbsp;<span class=\"s1\">Also, stop spending!&nbsp;Only buy the absolute essentials to keep going. Budgeting does change your buying habits for the long term. Consider whether you need to <a href=\"https:\/\/www.phorest.com\/blog\/charging-premium-salons-services\/\" target=\"_blank\" rel=\"noreferrer noopener\">raise your own prices, too<\/a>. A structured, strategic increase can have a huge impact.<\/span><\/p>\n\n\n\n<h2 class=\"p4 wp-block-heading\">2. You start questioning your leadership skills<\/h2>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Symptoms:&nbsp;<\/b>You look around and feel overstaffed, despite feeling like the busiest person in the business. <a href=\"https:\/\/www.phorest.com\/blog\/salon-meetings-motivate-team\/\">Team meetings<\/a> only take place when something goes wrong. Your time is consumed by looking for ways to fill the appointment book and, at the end of the month, you\u2019re always the last in line to get paid. The team doesn\u2019t know whether they\u2019re having a good day or a bad day \u2013 and neither do you. It\u2019s general chaos.<\/span><\/p>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Causes:&nbsp;<\/b>I hate to say it, but, as a leader, the responsibility lies with you. You must regain your confidence, step up, and take back control.<\/span><\/p>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Remedies:&nbsp;<\/b>As a rule of thumb, a good benchmark is that the value of services provided by an employed beauty therapist\/stylist should be equivalent to three times<\/span> net or four times<span class=\"s1\"> gross of their weekly salary. At that level, with what equates to roughly 85% average occupancy, employees become an asset to the business rather than an expense.<\/span><\/p>\n\n\n\n<p class=\"p4\"><span class=\"s1\">It\u2019s critical to your salon\u2019s success that everyone on your team is on board with your goals and strategies. Book regular group and <a href=\"https:\/\/www.phorest.com\/blog\/conduct-staff-feedback-meetings\/\" target=\"_blank\" rel=\"noopener noreferrer\">one-to-one meetings<\/a> to ensure staff stay positive, engaged and clearly aligned with your business direction. Don\u2019t forget to ask for their ideas. You may also need to think about making staff cutbacks, rather than the constant pressure to try to fill white space in the diary.<\/span><\/p>\n\n\n\n<h2 class=\"p4 wp-block-heading\">3. You need more clients<\/h2>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Symptoms:&nbsp;<\/b>Empty appointment books and a revolving door of new clients coming into the salon, never to be seen again- it&#8217;s a salon, clinic, or spa business&#8217; worst nightmare.<\/span><\/p>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Causes:&nbsp;<\/b><\/span><span class=\"s1\">No mechanism for soliciting and acting upon feedback from clients. Limited attempts to keep your business at the front of clients\u2019 minds.<\/span><\/p>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Remedies:&nbsp;<\/b>First, a sanity check: is the problem <i>really<\/i> that you need more clients? Do you <a href=\"https:\/\/www.phorest.com\/features\/automated-sms-email\/\" target=\"_blank\" rel=\"noopener noreferrer\">understand where all your existing clients have gone and why they haven\u2019t returned<\/a>? You need to dig into these problems and fix the root causes to stop the cycle from continuing. Start by getting honest feedback from the clients you still have, as well as those you think have vanished.<\/span> You can do this by using your <a href=\"https:\/\/www.phorest.com\/features\/salon-accounting-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">Phorest reporting features<\/a> to track client retention and lapsed clients. <\/p>\n\n\n\n<p class=\"p3\"><span class=\"s1\">Investigating the reasons for clients not returning may feel like a distraction from the day-to-day running of your business, but with today\u2019s hectic lifestyles, it\u2019s more important than ever to keep in regular contact with your client base through good marketing. Otherwise, it\u2019s easy for them to let you slip from their minds.<\/span><\/p>\n\n\n\n<p class=\"p3\"><span class=\"s1\">Think up <a href=\"https:\/\/www.phorest.com\/features\/salon-marketing-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">new salon marketing ideas <\/a>and give them a go, actively encouraging your clients back into your business. There are so many things to try before you start discounting: special invitational events, bring-a-friend promotions, add-on treatment trials, launching a <a href=\"https:\/\/www.phorest.com\/features\/salon-loyalty-program-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">loyalty programme<\/a>, teaming up with other local businesses\u2026 Compose a thorough marketing plan that maps out the year ahead \u2013 don\u2019t make reactive decisions just to fill tomorrow\u2019s appointment book.<\/span><\/p>\n\n\n\n<p class=\"p4\"><span class=\"s1\">Alongside marketing, <\/span>rebooking clients while they&#8217;re in the salon, ensuring you&#8217;re sending appointment reminder messages, and making sure you&#8217;re providing a stellar in-salon experience for clients are all important factors to consider when trying to encourage clients back into your business.<\/p>\n\n\n\n<h2 class=\"p4 wp-block-heading\">4. You\u2019re overstocked<\/h2>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Symptoms:&nbsp;<\/b>You have shelves and stacked boxes full of dusty, unsold products. Some of the branding is out-of-date. You may also have under-utilised and expensive equipment getting in the way.<\/span><\/p>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Causes:&nbsp;<\/b>It only takes a few over-eager orders or a couple of days excitedly flashing your credit card at a trade show to run into this problem<\/span>.<\/p>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Remedies:&nbsp;<\/b>It\u2019s so easy to make inaccurate buying decisions as a business owner- especially when you\u2019re busy, tired, and ordering in a rush. This can impact cash flow and clutter up your business premises. Don\u2019t act hastily here; take the time to get a real handle on the situation and react appropriately. Get rid of retail lines you no longer want to stock, and be ruthless about redundant equipment. Try selling them in bulk.<\/span> Alternatively, create new ways of selling stock, such as with an <a href=\"https:\/\/www.phorest.com\/features\/online-booking\/\" target=\"_blank\" rel=\"noreferrer noopener\">online store. <\/a><\/p>\n\n\n\n<p class=\"p4\"><span class=\"s1\">Another great way to shift stock while also creating attractive promotions is to bundle excess product with limited-edition treatment packages. For more information on moving retail stock in your salon, clinic, or spa, you can consult our <a href=\"https:\/\/www.phorest.com\/blog\/guide-to-salon-retail-sales\/\">Salon Owner&#8217;s Guide to Retail Sales.<\/a><\/span><\/p>\n\n\n\n<h2 class=\"p4 wp-block-heading\">5. You aren\u2019t sleeping<\/h2>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Symptoms:&nbsp;<\/b>You turn off the light and shut your eyes, but the problems are still churning around in your head. You spend the night anxiously tossing and turning, waking with the same thoughts immediately springing to mind- if you do manage to eventually go to sleep. It\u2019s all-consuming, all day.<\/span><\/p>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Causes:&nbsp;<\/b>It\u2019s easy to say, I know, but this is the outcome of focusing wasted energy on worrying, rather than creating a healthy plan to resolve the issues.<\/span> It could also be a symptom of burnout. <\/p>\n\n\n\n<p class=\"p6\"><span class=\"s1\"><b>Remedies:&nbsp;<\/b>To remedy this, it&#8217;s important to write down the issues you&#8217;re facing, the worries you&#8217;re spending time on, and the things that are overwhelming you. From there, it&#8217;s time to sit down and design an action plan with clear steps in place to correct the imbalances in your business.<\/span> This could range from hiring more staff or creating a solid marketing strategy to scheduling a holiday and having a rest. <\/p>\n\n\n\n<p>When dealing with stress related to your business, don&#8217;t be afraid to reach out and ask for help- from a friend, family member, or professional. At the end of the day, you&#8217;re only human, and can&#8217;t do it all. You need to look after yourself before you can look after anyone else. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Final thoughts<\/h2>\n\n\n\n<p class=\"p3\"><span class=\"s1\"> Constant fire-fighting drains your energy and distracts you from all the positives your business can have Take a moment to remind yourself of them. List what you do well and magnify each success. Write a <a href=\"\/?p=16049\" target=\"_blank\" rel=\"noopener noreferrer\">statement that makes you feel good about your business<\/a> and look at it regularly.&nbsp;Life and business ownership are supposed to be fun, but sometimes you have to take a few knocks to set yourself back on track. Take the lessons, learn from them, and keep doing your best every day.&nbsp;Whatever issue you\u2019re facing, there\u2019s much more help around than you realise, so don\u2019t feel alone, speak to someone.<\/span><\/p>\n\n\n\n<p class=\"p3\"><span class=\"s1\">Here\u2019s to your great business success!<\/span><\/p>\n\n\n\n<p>Looking for personalised advice? You can always email Susan at<span class=\"s4\">&nbsp;<a href=\"mailto:susan@susanroutledge.com\"><span class=\"s5\">susan@susanroutledge.com<\/span><\/a> or via <a href=\"https:\/\/www.susanroutledge.com\">https:\/\/www.susanroutledge.com<\/a>.<\/span>&nbsp;Got general feedback? Let us know in the comments below!<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n<div class=\"align wp-block-bannercta\">\n\n\n<div class=\"relative lg:mb-10 overflow-hidden bg-green-dark\" >\n  <div class=\"container py-16 px-12 lg:py-24 flex items-center  flex-wrap relative z-10\">\n   <div class=\"w-full mr-0 mb-6 md:mr-12 md:mb-0 \" >\n   <h2 class=\"text-white mb-2 text-3xl text-center md:text-left lg:text-4xl\" style=\"color:white;\"><p>Interested in partnering with a salon software that helps your business thrive?<\/p>\n<\/h2>\n  \n  <\/div>\n                      <a href=\"https:\/\/www.phorest.com\/au\/custom-demo\/?request_type=Demo%20request\" style=\"color:white; text-decoration:none;\" class=\"rounded btn-demo-cta button bg-red text-white hover:bg-red-light md:px-8 rounded-none mb-4 sm:mb-0\" data-ol-has-click-handler=\"\">\n                  Book a Phorest Demo!\n              <\/a>\n            <\/div>\n<\/div>\n\n\n<div>\n  <div class=\"acf-innerblocks-container\"><\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>It fascinates me when I see two seemingly identical businesses in completely different financial positions. While one flourishes, the other flounders.&nbsp;Oftentimes, a little probing into failing salons will reveal that the differences come down to the systems and processes in place.&nbsp;Fortunately, when things start going wrong, there are warning signs that every salon, clinic &amp; &hellip; <a href=\"https:\/\/www.phorest.com\/au\/blog\/failing-salons-5-warning-signs-fixes\/\">Continued<\/a><\/p>\n","protected":false},"author":40016,"featured_media":145064,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5607,5465],"tags":[7493,13598,13599,7494,7315,5571,6752,13597,5573,13596,6695],"class_list":["post-45193","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-management","tag-failing-au","tag-financial-advice-for-salons-au","tag-financial-advice-for-spas-au","tag-going-under-au","tag-issues-au","tag-salon-au","tag-salon-finances-au","tag-salon-financial-advice-au","tag-spa-au","tag-spa-finances-au","tag-susan-routledge-au"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Failing Salons: 5 Warning Signs &amp; Fixes For Continued Success | Phorest<\/title>\n<meta name=\"description\" content=\"While one salon flourishes, the other flounders. 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