1. Would you be better off working on the current business?
Remember, you don’t always have to open a second salon in order to grow your business; allocating more attention to the business you already have could instead be the answer.
Before you even consider expanding your business to a second site, carry out a thorough audit of your current salon (you should be doing this regularly anyway) and gather a good idea of how your salon is performing. Are all areas performing as near to 100% as possible? Could you be doing more with retail? Are your team all trained to upsell clients to more services? How stable and regular is your client base? If you’re satisfied that there’s nothing more you can do to grow your current salon, maybe it’s time to look for that second premises.
2. Have you reached capacity?
Are all of your stylists working a full column? Are you sometimes having to turn clients away because everyone is working to capacity? If so, a second salon could be the answer – but so could expanding the current premises. Before you invest in salon number two, make sure you explore any potential for expanding the salon you have – is there space to add more styling stations or employ extra team members?
3. Will you create new revenue or take it from the existing salon?
You may think that opening a second salon will allow you to accommodate all of the clients you can’t look after in the current premises, however, opening a second location too close in proximity could end up cannibalising the existing salon. You need to be confident that the second salon will generate enough new business to justify the expense of running it. Does the new location offer enough potential new clients to guarantee success?
4. Will your brand transfer to another location?
On the flip side of opening a second salon close to the first, investing in a completely new location also needs careful consideration. Will anyone in the area have heard of your brand and what it stands for? What marketing can you do in the area prior to opening to ensure interest is piqued? Could you open the second salon under a new name that fits better with the local demographic?
5. Will you be stretching yourself too far?
You’ve heard of that thing called work/life balance? Well, opening a second salon will mean the scales lean one way for at least a couple of years. Do you have the time and commitment to oversee the development of a new business, while also ensuring that the first salon continues to prosper? You will need to make sure your current team is competent and committed without you needing to be there to always keep an eye on things. Do you have someone who can manage the original salon while you spend time at the second premises? In advance of any expansion, ensure you have the right people with the right training in place; you need to avoid stretching yourself to breaking point.
