Creative HEAD UK March 2018

#BusinessEdit
KEN’S CLINIC
GOT A BUSINESS HEADACHE?
LET KEN WEST, DIRECTOR OF BUSINESS
EXPERTS 3•6•5, OFFER A PERSONAL PRESCRIPTION
LIFE
LESSONS
KEN’S DIAGNOSIS
SEE
KEN WEST
SPEAK AT
25 MARCH AT THE PARK
PLAZA, LONDON
This is a super question Melissa and
one that has an apparently simple and
yet complex answer. ‘Expand when you
are ready to’. So why is that simple and yet
complex? Well, far too often salon owners
open a second salon for the wrong reason –
ego! Many of us want to grow but big does
not always mean beautiful. I know many
salon owners who make a fabulous living
out of one beautifully formed salon.
The right prices, the perfect team, a
wonderful clientele and more importantly a
healthy profit margin. Ego is not a bad thing
but sometimes it can lead you to make rash
decisions, especially when
faced with what looks
like an opportunity. A
business for sale, an
empty unit to let, they
can be very tempting.
So when is it right
to grow? Well it’s
a bit like life
really, we
move when
our existing
house is
too small or
when those
we love feel
the time is
right to leave
home and we
If someone is
thinking of
opening a second
salon, what
advice would
you give them?
MELISSA TIMPERLEY,
MELISSA TIMPERLEY SALON
decide to grow with them. If your salon is
too busy and your team utilisation numbers
are too high, then the time could be right
to look for a bigger or second ‘home’. But
just like moving home, make sure you can
afford it. Opening a salon is expensive.
You need two things, start-up capital and
working capital. Your first salon should
ideally be producing enough surplus
cash to tide you over the initial start-up
period that any salon has. It will probably
take three to six months before you
have an income near to your break even
point. Larger salon groups often plan for
much longer. Rent, rates, overheads and
guaranteed salaries all have to be paid from
somewhere, and cash flow in a new salon is
always a challenge.
Splitting your existing team to man a new
salon can often mean twice the overheads
with the same total income. However, if you
have ‘children ready to leave home’, it is far
better to combine your talents to provide an
opportunity for an amazing stylist than to
lose them completely. This would of course
require their financial commitment and
therefore a share of the potential
risk to make this happen. Expansion is
exciting and I would hate to pour cold
water onto anyone’s dreams, but I have
also been saddened by seeing someone lose
everything they had worked for
by expanding too soon.
DO YOU HAVE A BUSINESS HEADACHE YOU’D LIKE KEN TO
HELP WITH? Email KenW@365Hair.com or tweet @creativeheadmag
GAVIN
HOARE
RICHARD WARD
HAIR & METROSPA
SEE
GAVIN
HOARE AT
25 MARCH AT THE PARK
PLAZA, LONDON
Learn to listen. As an
industry, we love talking
about ourselves, but we
must never lose sight that a
client appointment is about
them! So talk the business
of hair before you get onto
the niceties and be the
expert you are trained to be.
Concentrate on the
long game. Grow your
own team and cultivate a
culture of delivering great
service. Give your team
the autonomy to deliver
professional, educated
advice whatever their role.
Match-make your
clients to the right team
member and watch the
relationship grow. In an
industry of individuals,
it’s essential that whoever
is taking our bookings
is educated on not only
the services we offer, but
also in understanding the
sensibilities of the team.
Never believe that you
only have to say things
once to your team.
Instigating change on the
salon floor is a constant
drip feed of information.
CREATIVE HEAD
37