A big mistake that people make when setting up a salon is to plunge into running the store instead of creating a solid hair salon strategy plan beforehand.
However, hair salons with a business plan are much more likely to hit targets for sales and milestones than those who don’t.
“If you fail to plan, you are planning to fail.”
A hair salon business strategy is more than a tool for raising money and getting a bank loan.
It helps you understand how your business runs, to monitor your progress and keep yourself accountable for the achievement of your business goals. Writing a business plan forces you to think about your business, including; positioning, finances, marketing plan, staffing plan and your product and service strategy.
It helps you spot holes in your business that you otherwise would’ve missed.
This is why it’s important to have a hair salon strategy in place before you open your store. The main areas for your salon strategy are:
Let’s look at each one of these in detail, starting with your hair salon financial plan.
A financial plan helps to forecast the financial results of your salon and help you decide how to best use your financial resources to achieve your salon’s business goals.
It describes the resources, activities, materials and equipment that are needed to achieve your salon’s goals, as well as the timeframe for doing so.
Here are the sections of a salon budget plan that you’ll need for your Hair Salon:
Positioning refers to how your salon will be marketed so that it’s meaningfully differentiated in the minds of your target customers.
To achieve this, you’ll need to think about how your salon is different from the competitors. Do some market research to determine how competitors are serving the local market and figure out your own niche for your salon.
Here are 4 positioning strategies that you can use for your hair salon:
This positioning strategy sets up your salon as an affordable choice for customers.
For this strategy to be successful, you need to achieve economies of scale with your salon. What this means is you need to have enough hairdressers that can perform a hair-cut as quickly as possible, at a reasonable standard of quality, and turnover a large number of customers each day.
This strategy positions your salon as a high-quality and premium service.
Taking this positioning strategy means you will see a lower volume of customers. However, the customers you attract will spend a larger amount on your expertise and quality products. Price will not be an issue for them.
Some salons focus on positioning themselves for a specific demographic.
For example, there are hair salons that specialize in African hair, or Barber-shops who only target male customers. This works best if a particular demographic has specific needs, such as African hair which may need braids or males who also need to shave or style their beards (Barbershop).
Sometimes competition in a certain area can be so high that strategies such as demographics, price and quality alone are not enough to stand out.
In these cases, having a service positioning strategy that solves a specific problem can help you stand out. For example, becoming the go-to hair and makeup service for wedding photographers.
Your pricing strategy will help you determine the price point that you will be able to maximize profits in your salon.
If prices are set too high you might not attract too many customers, while if your prices are too low your salon may not survive. Here are 4 pricing strategies you could use in your salon:
Having an effective salon sales strategy helps you maximize the retail sales in your salon. Here are 6 steps to implement your salon sales strategy:
Hair salon marketing strategies will help you grow a customer base of loyal customers, help you sell merchandise, and bring in a constant stream of new customers. Here are the steps for creating a hair salon marketing plan:
The social web is growing fast with over 2 billion users between Facebook, Twitter and Instagram alone.
Your customers are active on these networks talking about your services (among other things) and your reputation can be improved and destroyed in the process. This is why it’s important to have a social media strategy for your hair salon.
Here are 3 things to consider when creating your social media strategy:
Pick the social media platforms that will work best for your salon and focus on them only.
Instagram is good because you can show the results of your work in photos. Facebook is another platform that can be used similarly. Also, YouTube can be used by salons to show hair styling tips and expertise and you can bring in customers this way.
An example of an unsuitable social media platform would be Linkedin since it’s primarily a B2B networking platform, and it’s unlikely that consumers are browsing the platform for a hair salon.
The final part of a social media strategy is posting consistently.
It will take time for your social media strategy to pay off, and a consistent posting schedule will help achieve this. Use tools such as Buffer or Hootsuite to automate and schedule your posts.
Your product and service strategy salon are about offering the right products and services to the right target market. The goal of this hair salon strategy is to develop products and services that will meet buyer expectations.
The hair salon strategy should include items such as quality, new products, research and development, product lifecycle, distribution strategy for a hair salon, and services offered. This is all defined in a product road map.
A product and service strategy hair salon is a customer-centric approach that will help you satisfy your salon customers and exceed their expectations.
Developing a hair salon strategy for your business gives it a higher chance for success.
A financial plan forecasts your financial results and keeps you accountable to your goals, while your positioning strategy helps you stand out from your competitors.
Your pricing strategy helps you to maximise the profits your sales, while your sales strategy ensures that the sales continue to increase in your salon.
Your marketing strategy for salon services grows your customer base, while your social media strategy keeps them engaged with your salon. Finally, your product and service strategy makes sure that the products and services you provide actually meet your buyer’s expectations.
If you would like to create a hair salon strategy marketing plan for your salon business, download your free hair salon marketing plan PDF here.
And if you love these ideas or have some other ideas that you've used in the past to promote your salon business, why not share it with the Belliata community in the comment section below. We would also be delighted to answer your questions, as well.
The strategy concept I: Five Ps for strategy
Moving from corporate strategy to project strategy