The Struggles of Running a Hairdressing Business

The Struggles of Running a Hairdressing Business

By Hairstory

Published on September 27, 2024 — 7 min read

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Running a hairdressing business can be one of the hardest things to do by far. Understanding where the money goes, how much to charge, paying taxes, monitoring expenses, and finding enough to pay yourself is a full-time job even if you’re no longer working behind the chair.

Challenge: According to a survey conducted by Phorest Salon Software, over 48% of respondents stated that managing and motivating staff is the most difficult aspect of running a salon.


Let’s start there.

Keep Staff Happy: Keep Teaching.

Good, talented people naturally want to advance, and appreciate meaningful support in the process. Capable, ambitious employees want training, mentoring, and coaching. They want to gain skills. They want to become more versatile, and valuable.

A manager’s focus should be on curious individuals who are genuinely interested in acquiring knowledge. Some people are more coachable than others – humbler, more open, more ambitious – and hungrier.

But what about you: Managers who want people to learn new things encourage it by example. Do you make time to learn new things?

Development planning doesn't have to be elaborate or costly. it’s mostly a matter of taking the person-to-person time to understand employees, recognizing their skills and needs, and guiding them to fill in the gaps.

Well-trained employees will never say, “That’s not my job,” because investing in professional development helps them feel valued. Valued individuals make morale – and productivity – soar.

So many businesses are in constant upheaval, reorganizing and trying to do more with less. In this environment, managers naturally focus on the essential day-to-day rather than longer-term payback. If you believe that development planning is valuable, make it a priority and carve out the minutes and hours for it.

Reward successful learners by providing new challenges. Not only are you fostering a highly-skilled team, but you’re modeling a mindset of always learning and growing. This pays off when you need to promote people – they are already skilled, loyal, and know your business.

“What things would you like to get better at this next month?” Goal-focused questions show employees that you want them to grow and that there are things on the horizon to learn. But it also establishes the expectation that growth and development is a job requirement.

The most productive people are goal driven. Goal setting shouldn't be a perfunctory, once-a-year activity during an annual performance review. It should be an ongoing activity. Ask employees "What will you have to learn to achieve this goal?" If there's no new learning, increase the difficulty of the goal. Make sure that everyone on your team is learning, all the time. If not, they’ll leave. It’s that simple.

Learn more about the ways to set goals for yourself and actually achieve them here.

Challenge: Almost 32% of respondents stated that getting new clients is the most difficult aspect, and approximately 20% said that retaining existing clients is.

The average hair/beauty business loses up to 25% of clients each year. And, when it comes to new clients, 67% never return for that second visit. Your retention rate – how well you’re keeping clients – may be the most important metric of all to measure. The best type of client is the one you already have.

You’re a “people person” or you wouldn’t be a hairdresser. You know how to listen well, and clearly, you can communicate. But how keen are your marketing skills? Are you – like so many of your colleagues – struggling with telling the world (or town) how good you are?

Social Media Matters

Marketing is no longer a one-way street; social media is a dialogue. When making a purchase decision, people now get more information about it from other people than from who is selling it. Be part of that conversation.

Your Instagram page should leave people inspired, of course, but what else? Entertained? Thoughtful? Soulful? Whatever it is, it should reflect you. Yes, you’re a businessperson, but you’re also someone who offers a very personal and intimate experience, and we want to get to know you.

So, show your work and the environment you’ve created, and show a photo of you in the first nine images in your grid. At the same time, keep in mind who you want to attract. Know your audience, existing and future – and consider what matters to them.

Who follows you matters more than how many. Attract people within your community, because followers don’t pay the bills. Clients do.

Read our top tips for hairdressers on Instagram here.

Winning in the Inbox

Email addresses are marketing gold – they are the basis for appointment reminders, newsletters, referral programs, surveys, and more.

Email marketing works. Why?

  • More people use email than social media.
  • It can be highly targeted.
  • It can be personalized.
  • It is inexpensive.
  • It drives traffic to your other online properties.
  • It’s highly measurable.

Learn more about mounting a successful email campaign here.

Come One, Come All

Even in the age of social media, nothing beats old-fashioned word-of-mouth. Every client is a walking, talking, hair-tossing advertisement for your work, and all of them have more influence and reach than you can on your own. When you’ve made a real connection and a good impression, asking for referrals should come naturally.

To beat those odds, the trick is to make sure you market yourself with your ideal clientele in mind: People who are the perfect fit for your salon practically speaking – conveniently located, for example – and creatively – you get each other’s vibe.

Clients who refer each other create community and a deeper bond all around. Besides, it’s a lot harder for a client to leave you when all her friends want to stay. If you don’t have a referral strategy, start one yesterday.

Here’s the easiest way to get a retention snapshot: Take a 3-month period in your schedule from a year ago and see whose hair you did. Then take the same period a year later and compare. Who came back? Who didn’t? You can expect to lose some people due to factors you can’t control, but it’s worth looking at the things that you can control, and what you might do differently this year.

* * *

Take this to heart: You’ll never know it all. You can’t do it all. One of the traps entrepreneurs find themselves in is the belief that they need to be good businesspeople, money managers, real estate mavens, human resources executives, operations managers, emergency first-responders, heads of family, – and somehow find time to be creative artists. Learn what you are good at (and keep learning), but in the meantime delegate the rest. You’re a hairdresser, not a superhero.

Frequently Asked Questions

  • What is the most difficult aspect of running a hairdressing business?
    According to a Phorest Salon Software survey, over 48% of respondents said managing and motivating staff is the most difficult aspect of running a salon. Almost 32% cited getting new clients as the hardest part, and roughly 20% said retaining existing clients. Successfully running a salon means balancing staff development, marketing, and client retention all at once.
  • How can salon managers keep their staff happy and motivated?
    Capable, ambitious employees want training, mentoring, and coaching so they can gain skills and become more versatile. Managers should carve out person-to-person time for development planning, recognize each employee's strengths and gaps, and reward successful learners with new challenges. Asking goal-focused questions like "What would you like to get better at this month?" signals that growth is both encouraged and expected.
  • Why is client retention so important for salons?
    The average hair and beauty business loses up to 25% of clients each year, and 67% of new clients never return for a second visit. Retention rate may be the most important metric to track because the best client you have is the one already in your chair. Keeping existing clients is far more cost-effective than constantly chasing new ones.
  • How should hairdressers use Instagram to attract clients?
    Your Instagram should leave people inspired, entertained, or thoughtful — and it should reflect who you are. Show your work, the environment you've created, and include a photo of yourself within the first nine images of your grid. Remember that who follows you matters more than how many, because followers don't pay the bills — clients do.
  • Why is email marketing effective for salons?
    Email marketing works because more people use email than social media, and it can be highly targeted, personalized, inexpensive, and easily measured. It also drives traffic to your other online properties and supports appointment reminders, newsletters, referral programs, and surveys. Collected email addresses give salons a direct, reliable channel to the people most likely to book again.
  • How can hairdressers get more client referrals?
    Every client is a walking advertisement for your work, so when you've made a real connection, asking for referrals should come naturally. Market yourself with your ideal clientele in mind — people who are a practical and creative fit for your salon — so they bring in others like them. Clients who refer each other build community and loyalty, making it much harder for anyone to leave.
  • How can salon owners measure their client retention rate?
    Take a three-month period in your schedule from a year ago and note whose hair you did during that window. Then compare it to the same three months this year and see who came back and who didn't. Some loss is unavoidable, but tracking retention this way gives you a clear snapshot of what's within your control to improve.
  • Should hairdressers try to handle every part of their business themselves?
    No — one of the biggest traps salon owners fall into is believing they need to be expert businesspeople, money managers, HR executives, operations managers, and creative artists all at once. Learn what you're good at, keep building those skills, and delegate the rest. You're a hairdresser, not a superhero.

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