What I’ve Learned in My First Year in Business

Starting a salon was a dream come true for me, but little did I know that running a salon would be one of the most challenging and rewarding experiences of my life.

In my first year as a salon owner, I learned valuable lessons that have shaped how I manage my business today.

If you’re new to the hair and beauty industry or just opened your own salon, I hope these insights will help you avoid some of the mistakes I made and set you up for success.

What I learnt…

When I first opened my salon, I thought pricing my services would be straightforward. Boy, was I wrong!

I quickly realized that pricing too low attracted clients but barely covered my costs. On the flip side, pricing too high risked losing potential clients. The sweet spot is somewhere in between, and I had to find that balance.

I also learned that pricing isn’t just about covering costs – it’s about value. Clients are willing to pay for quality services that meet their needs.

That’s where Insightful Sums became a game changer for me. It allowed me to calculate my service prices properly, factoring in costs, time, and profit margins, so I wasn’t underselling myself.

Cash flow problems can sneak up on you faster than you’d think. In my first few months, I noticed that while I was getting more clients, I was barely breaking even.

The culprit? Poor cash flow management. I wasn’t tracking my income and expenses carefully, which led to unnecessary stress when paying bills or wages.

Now, I track everything meticulously.

Keeping an eye on cash flow means making informed decisions about expenses, investments, and pricing. With Insightful Sums, I was able to better manage this, avoiding those end-of-the-week panic moments when it was time to pay staff and rent.

In the beginning, I was quick to offer discounts and promotions to bring clients in the door. But what I didn’t realize was how these discounts were impacting my bottom line. The more I discounted, the less I earned, even though my workload increased.

Offering discounts regularly can train clients to expect lower prices and devalue your services.

It’s important to be strategic with discounts. I now reserve them for special occasions and make sure they don’t eat into my profits. If you’re unsure how much you should be discounting, Insightful Sums can calculate the impact of discounts on your profits, giving you the clarity to make smarter decisions.

I learned very quickly that a salon is only as good as the team behind it. Having talented, motivated staff can make or break your business. But keeping them motivated and productive was more challenging than I anticipated.

It’s not just about paying wages but creating an environment where they feel valued and rewarded.

One thing that helped me was setting clear targets and goals for my team. When they could see how their work contributed to the salon’s overall success, they were more engaged.

With Insightful Sums, I’ve been able to set realistic staff targets that not only motivate my team but also drive more revenue for the business.

I used to think that selling retail products in my salon was a nice little bonus – something I’d offer on the side to clients if I remembered. Big mistake.

Retail can be a significant revenue stream, and if you’re not taking advantage of it, you’re missing out.

I had to learn the importance of stocking the right products, pricing them correctly, and training my team to recommend products effectively.

With the help of Insightful Sums, I’ve been able to price my retail products in a way that ensures profitability without scaring off clients. Now, retail accounts for a healthy portion of my monthly revenue.

The hair and beauty industry is always evolving, and so should you.

Whether it’s learning new techniques, improving client experiences, or mastering the business side of things, staying up-to-date is crucial.

In my first year, I took every opportunity to educate myself – through courses, seminars, and networking with other salon owners.

Running a salon is about more than just delivering great services. You have to be an expert in everything from customer service to financial management.

That’s why I continue to rely on tools like Insightful Sums to ensure my salon remains profitable and sustainable.

The first year in business is a wild ride, full of lessons and growth.

You’ll make mistakes, but each one is an opportunity to improve. My biggest takeaway? Having the right tools and mindset makes all the difference. Insightful Sums has been my secret weapon in navigating the challenges of running a salon, from pricing to cash flow management and everything in between.

If you’re just starting your salon journey, don’t be afraid to invest in tools that make your life easier and your business more profitable. The lessons I’ve learned in my first year have set me up for long-term success – and I hope they can help you too!

xxDee Moore – Founder of Moore Beautiful