helens_hair
New Member
Our mom has owned her salon for over 40 years and is getting into the sunset years of her life. My brother and I are considering taking over the business, but we have some concerns. We are hoping to get some different perspectives, advice and suggestions on how we should proceed.
Getting straight to the point, the salon isn't profitable. In fact, it's losing money every month. The salon has 12 stations and a back room that could be used for eyebrows/waxing/facials/etc, and enough space for a couple manicuring stations. Unfortunately, only 8 stations are currently occupied, and a couple of those only partially (i.e., lower rent). To make matters worse, mom hasn't raised her station rent in a couple years and the business is strictly a station rental model. We also have the issue of the overall look and feel which screams 80s strip mall. Read "big hair" wall art, dark oak partitions and cabinets, and a yellowing drop ceiling with florescent lights. Sprinkle in a bit of deferred maintenance here and there, and you'll get a good idea of what we're dealing with. Moreover, the salon has operated by word-of-mouth (i.e., no advertising, social media, nada) and primarily catered to senior white and Hispanic woman. Local demographics has shifted towards Asian, much of the clientele has died off, and hair style preferences aren't what the once were.
As far as the pros go, the salon is located in a decent part of town and less than a half mile away from one of the most affluent zip codes in the state. It is also a stones throw away from thriving businesses that attract lots of younger, more affluent people with plenty of disposable income. And the salon has a long-standing presence and reputation in the area.
Stating the obvious, we need to be fully rented, attract new talent, and target younger clients.
We have hired a brand designer to create a new logo, branding package, and color palette. We also obtained a domain name and are establishing our business presence on Yelp, Google, and Nextdoor, and plan to set up Instagram and Facebook pages as well. We are considering changing the salon's name to go make it more youthful. Our plan is to begin distributing advertising to local businesses and community centers, invest a small amount in online advertising, and partner with local cosmetology and barbering schools in the area. We also want to tackle the aesthetics and ambiance, but our budget is a big sticking point.
I want make clear that my brother and I are not professionals in this industry. Although we are not completely green to this world, we are going to need some help along the way.
Are we getting in over our heads? Does it make sense to try and save this business, or should we sell it and let mom continue working to her hearts content? If we keep this business, we don't want to work IN the business, so we'll need to hire an operator (i.e., we need to make more money). How do we go about changing the current business model to increase our profits without muddying the waters too much?
I feel like we can do this, but have so many questions and aren't sure where to start. Feel free to give it to us raw and uncut. We need to get the honest truth.
Looking forward to your replies.
Thank you!
Getting straight to the point, the salon isn't profitable. In fact, it's losing money every month. The salon has 12 stations and a back room that could be used for eyebrows/waxing/facials/etc, and enough space for a couple manicuring stations. Unfortunately, only 8 stations are currently occupied, and a couple of those only partially (i.e., lower rent). To make matters worse, mom hasn't raised her station rent in a couple years and the business is strictly a station rental model. We also have the issue of the overall look and feel which screams 80s strip mall. Read "big hair" wall art, dark oak partitions and cabinets, and a yellowing drop ceiling with florescent lights. Sprinkle in a bit of deferred maintenance here and there, and you'll get a good idea of what we're dealing with. Moreover, the salon has operated by word-of-mouth (i.e., no advertising, social media, nada) and primarily catered to senior white and Hispanic woman. Local demographics has shifted towards Asian, much of the clientele has died off, and hair style preferences aren't what the once were.
As far as the pros go, the salon is located in a decent part of town and less than a half mile away from one of the most affluent zip codes in the state. It is also a stones throw away from thriving businesses that attract lots of younger, more affluent people with plenty of disposable income. And the salon has a long-standing presence and reputation in the area.
Stating the obvious, we need to be fully rented, attract new talent, and target younger clients.
We have hired a brand designer to create a new logo, branding package, and color palette. We also obtained a domain name and are establishing our business presence on Yelp, Google, and Nextdoor, and plan to set up Instagram and Facebook pages as well. We are considering changing the salon's name to go make it more youthful. Our plan is to begin distributing advertising to local businesses and community centers, invest a small amount in online advertising, and partner with local cosmetology and barbering schools in the area. We also want to tackle the aesthetics and ambiance, but our budget is a big sticking point.
I want make clear that my brother and I are not professionals in this industry. Although we are not completely green to this world, we are going to need some help along the way.
Are we getting in over our heads? Does it make sense to try and save this business, or should we sell it and let mom continue working to her hearts content? If we keep this business, we don't want to work IN the business, so we'll need to hire an operator (i.e., we need to make more money). How do we go about changing the current business model to increase our profits without muddying the waters too much?
I feel like we can do this, but have so many questions and aren't sure where to start. Feel free to give it to us raw and uncut. We need to get the honest truth.
Looking forward to your replies.
Thank you!
