Beauty is big business – and it’s only getting bigger. A global cosmetic market that was $460 billion in 2014 is expected to grow at a rate of more than 6 percent annually to $675 billion by the year 2020. For salon owners, this equates to increased consumer interest and industry competition as more entrepreneurs decide to open new salons.
Building a strong salon brand and full book of business doesn’t happen overnight and shouldn’t be taken for granted. Presenting the salon at its best can help ensure its survival and growth, even in the midst of increased competition.
Most salon owners have a wish list of things they would do to grow their business if only they had more capital on hand. Many of the items on their wish lists could produce revenues that would enable them to quickly pay off any salon business loans. Here are four ways to invest working capital to grow a salon business more quickly:
1. Remodeling or Reworking the Salon’s Space
Sooner or later, a majority of business owners will realize the décor, furnishings or layout of their business simply isn’t working anymore. Remodeling a salon’s interiors can do more than just update the space; it can lead to business growth, too.
A salon remodeling project provides a chance to rebrand or attract new customers. One opportunity in reworking a salon’s interior space is creating space for additional stations. This could be a great option for a salon that finds itself with a waiting list or that is operating near capacity several days a week.
When it comes to remodeling the exterior of the salon, investing working capital in facility improvements, exterior signs, parking areas and other outdoor projects can attract new customers and make the salon easier to find.
2. Adding New Salon Services
Whether it requires a remodeling project or is the result of leveraging previously unused space, adding new services within an existing salon is a great way to ensure clients remain interested in what’s coming next. Adding new services can also be a way to diversify or expand the salon’s client base and stay on top of the latest trends.
3. Developing the Right Salon Website
Large-scale marketing projects like website development can quickly cost thousands, especially if a salon owner wants a website that facilitates online appointment booking, gift card purchases and retail sales. Building the right kind of website may seem expensive, but making it easy for clients to make appointments and purchase products often outweighs the cost.
4. Expanding the Salon
Expanding a salon by adding additional square footage – or even a new location – can provide increased capacity that allows a salon to accommodate its waitlist, take walk-in clients or take advantage of appointments it could not accommodate before during peak hours. Opening a new location – whether it’s across town or in another city – can allows a salon owner to offer a different vibe or menu of services for a new market.
Big dreams sometimes come with big price tags. When that happens, obtaining salon financing might be the answer, especially when the projects being undertaken can reasonably be expected to offset or even surpass the cost of financing.
For more information about how to grow your business, be sure to check out Kabbage.com!