Want to know what to focus on in your business? Then a salon SWOT analysis could be the answer for you to focus on what are the key business drivers to make a successful salon.
What is a SWOT Analysis?
A SWOT analysis, is a process whereby an organization or team undertakes examination of its Strengths, Weaknesses, Opportunities and Threats.
The purpose of the exercise, is to enable a more detailed understanding of what is working well, what can be improved, what opportunities are available and what threats there may be to a salon.
The process of a SWOT analysis works for every type of salon business, regardless of how large or small it is. For those in the hair and beauty industry undertaking a salon swot analysis will yield positive results.
What Does SWOT Mean?
SWOT stands for Strengths, Weaknesses, Opportunities and Threats. The process was developed in the 1960s by Albert S. Humphrey. It is not a complicated process. An individual can lead but the analysis can be a group effort.
How Does SWOT Analysis Work?
A SWOT analysis is also sometimes referred to as an Internal-External Analysis. This is because the Strengths and Weaknesses elements largely apply to the internal factors of a team or business, whilst the Opportunities and Threats elements are more related to external factors.
When To Do A SWOT Analysis?
Generally you should do a SWOT analysis when you write your annual salons marketing plan or part of your salon business plan but it can be done at anytime as a standalone if you wish.
It is always a great way to create focus on your business plans
Don’t forget to ask your team for their feedback on your salon SWOT analysis.
Salon SWOT Analysis Examples
What follows is a salon swot analysis example.
People are asked to think about what they feel is working well and what strengths lie within the team and business. This may include positive characteristics of individual staff members as well as how they work together as a team.
How successful the business is and what makes it so can be discussed in detail, highlighting the positives. For example, does the salon have the right products at the right prices?
Are there specific hair treatments and processes at which the salon excels?
Are the premises being used to full effect?
Participants can look at the salon from an external, customer perspective in order to gain the most from discussing what strengths lie within it.
Will include things that can be done better;
that customers may perceive as areas that are lacking.
This might include issues such as insufficient staffing, limitations in premises, the way they are laid out, location, advertising and so forth. What can be learnt from competitors in the area?
Generally, weaknesses can be identified as the other side of strengths.
An area in which the salon is strong will usually highlight a weakness as well.
Are just that.
What local resources, such as opportunities for advertising, are available?
What new technology or processes can be tried? Strengths and weaknesses should feed into examination of opportunities: what opportunities do they create?
What weaknesses can be turned into strengths by eliminating them?
Are there current trends such as particular colours of hair dying that can be exploited to encourage increased business? Are there special promotions that can be used to encourage more customers?
Are there new products that other salons in the area are not offering?
Are factors within the salon that are hindering progress and performance, or they can also be external forces such as market competitors, changing expectations in the market, financial issues, and trends.
Identifying threats as soon as possible can help reduce them, or at least enable salon operators to reduce the impact.
Undertaking a salon swot analysis should become part of the process of regular evaluation of how a salon is running…
and remember this process can be used for beauty salons and nails salon as well.
Rather than remaining a ‘one off’ activity a salon swot analysis can be used as a regular tool for evaluating performance and highlighting ways to improvement.
The more often a SWOT analysis is undertaken, the more familiar and comfortable staff will become with using it.
What are you thoughts on your business SWOT Analysis?
Have any questions or tips on how you wrote your SWOT analysis for your salon? Share them below in the comments.