StudioTracker
Well-Known Member
There are many threads about taking the plunge to start a new business; here are a few hints on what to look out for to ensure your new business venture is successful!
1. Ensure you have enough capital
You need money to operate and grow your business to the next level. Capital is essential to pay rent, staff, market yourself and to buy inventory, it is essential that just because you are starting out you dont cut corners and purchase cheap materials as this will show in your service, you need quality products in order to deliver a quality service. It is important to be aware that your expenses are likely to be higher than you first anticipate and your revenue likely to be lower than you anticipate, do not over project your future revenues, it is better to under project as this will ensure you create achievable targets.
2. Focus on cash flow not profit
For new businesses it is unlikely profit will be seen straight away, this is to be expected however it is important that your business has a positive cash flow so that there is enough money to pay rent, staff and to buy materials. Ensure your goals are long term and youre not looking for quick ways to make money as having cheap prices to bring in customers wont attract the right customers to grow your business, they wont be there in the long term as soon as they get better offers they will move on elsewhere. It is important to invest time into each customer ensuring they will return for years to come. New businesses should not focus on profit; you can be unprofitable and still have a positive cash flow, making profit will be what you should aim to achieve.
3. Ensure you take care of your employees
Most people believe that customers are the biggest priority in their business; however this is not always the case, employees are those who look after your customers and they are a representative of your business, they handle the quality, service and delivery therefore it is essential that they are taken care of and are happy in the workplace in order for them to transfer this through good service to your customers.
4. Take care of your customers
It is much easier and less costly and time consuming to get a customer to buy off you again than attract a new customer. Therefore you should ensure you take care of existing customers, this can be done through remembering them, what treatments they usually have, reward them for being loyal and always make sure they are happy with the service they receive. A happy customer is a good customer, and a good customer will refer more customers.
5. Do not underestimate your competition
Many business owners think that their products and services are better and more attractive than their competitors. It is not about your competitors and trying to beat them, think about your competitors customers, why are they choosing to do business with them? How could you attract their loyal customers? Your competition is successful and has attracted clients for a reason you should learn from what they are doing right. How do they market their business? Do you offer the same treatments as them? You could differentiate yourself by offering treatments clients cant get with the competition, get them through the door with this and attract them with package deals which include treatments they may usually get somewhere else.
6. Do not over estimate the size of your market
If you have taken the plunge and opened your own business, it is likely that you are an optimist and are likely to think that everyone is going to buy what you have to sell. This is however not the case, many people within the market are already a loyal customer to one of your competitors. Remember you are not aiming to attract the entire market; you only need enough clients to handle the capacity you presently have. If you only have one employee there is only need to attract a small portion of the market. Once you are profitable then consider hiring more staff and growing your company.
7. Make sure you have an advertising/marketing plan
It is vital that you have thought about how you are going to get sales, what methods of advertising you will adopt and worked out your marketing budget. There is no point spending lots of money on equipment and materials to open your business and then finding no adequate way of driving sales. It is a good idea to start branding and marketing your business before you open, have a website designed, this doesnt have to cost you a lot of money but should hopefully create awareness of your salon before it opens and you can advertise a special open day promotion on there. Try and get a press release of your new business printed in the local paper, this is a free way to reach a large audience in your target area and is a more credible form of advertising than a leaflet drop. Capitalise on word of mouth advertising, tell everyone you know about your new salon and they will hopefully tell their friends, a potential client is far more likely to visit a salon if it has been recommended by a friend.
1. Ensure you have enough capital
You need money to operate and grow your business to the next level. Capital is essential to pay rent, staff, market yourself and to buy inventory, it is essential that just because you are starting out you dont cut corners and purchase cheap materials as this will show in your service, you need quality products in order to deliver a quality service. It is important to be aware that your expenses are likely to be higher than you first anticipate and your revenue likely to be lower than you anticipate, do not over project your future revenues, it is better to under project as this will ensure you create achievable targets.
2. Focus on cash flow not profit
For new businesses it is unlikely profit will be seen straight away, this is to be expected however it is important that your business has a positive cash flow so that there is enough money to pay rent, staff and to buy materials. Ensure your goals are long term and youre not looking for quick ways to make money as having cheap prices to bring in customers wont attract the right customers to grow your business, they wont be there in the long term as soon as they get better offers they will move on elsewhere. It is important to invest time into each customer ensuring they will return for years to come. New businesses should not focus on profit; you can be unprofitable and still have a positive cash flow, making profit will be what you should aim to achieve.
3. Ensure you take care of your employees
Most people believe that customers are the biggest priority in their business; however this is not always the case, employees are those who look after your customers and they are a representative of your business, they handle the quality, service and delivery therefore it is essential that they are taken care of and are happy in the workplace in order for them to transfer this through good service to your customers.
4. Take care of your customers
It is much easier and less costly and time consuming to get a customer to buy off you again than attract a new customer. Therefore you should ensure you take care of existing customers, this can be done through remembering them, what treatments they usually have, reward them for being loyal and always make sure they are happy with the service they receive. A happy customer is a good customer, and a good customer will refer more customers.
5. Do not underestimate your competition
Many business owners think that their products and services are better and more attractive than their competitors. It is not about your competitors and trying to beat them, think about your competitors customers, why are they choosing to do business with them? How could you attract their loyal customers? Your competition is successful and has attracted clients for a reason you should learn from what they are doing right. How do they market their business? Do you offer the same treatments as them? You could differentiate yourself by offering treatments clients cant get with the competition, get them through the door with this and attract them with package deals which include treatments they may usually get somewhere else.
6. Do not over estimate the size of your market
If you have taken the plunge and opened your own business, it is likely that you are an optimist and are likely to think that everyone is going to buy what you have to sell. This is however not the case, many people within the market are already a loyal customer to one of your competitors. Remember you are not aiming to attract the entire market; you only need enough clients to handle the capacity you presently have. If you only have one employee there is only need to attract a small portion of the market. Once you are profitable then consider hiring more staff and growing your company.
7. Make sure you have an advertising/marketing plan
It is vital that you have thought about how you are going to get sales, what methods of advertising you will adopt and worked out your marketing budget. There is no point spending lots of money on equipment and materials to open your business and then finding no adequate way of driving sales. It is a good idea to start branding and marketing your business before you open, have a website designed, this doesnt have to cost you a lot of money but should hopefully create awareness of your salon before it opens and you can advertise a special open day promotion on there. Try and get a press release of your new business printed in the local paper, this is a free way to reach a large audience in your target area and is a more credible form of advertising than a leaflet drop. Capitalise on word of mouth advertising, tell everyone you know about your new salon and they will hopefully tell their friends, a potential client is far more likely to visit a salon if it has been recommended by a friend.
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