Congratulations! Your salon is thriving, and you’ve made it out to the other side of the pandemic. Or at the very least, you’ve adapted to the new normal and are coping admirably. So admirably in fact that you’re ready to look at a new venture.
Or are you?
How do you know when you’re ready to diversify or do something different, and that your salon will survive without your full focus? Considering the fact that the personal care business was up 34 percent year-over-year in April 2021, and this figure keeps rising, now may be the best time to make a decision.
In this article, we’ll help you to spot the signs that you’re ready to make the move to a new venture.
1. You’re Looking For A New Revenue Stream
You can only make a finite amount of revenue from a salon. You’re limited by floor space, employees, overheads, and all other costs that come with owning a beauty business. If you’ve got every chair full and are booked from open to close, your chances of creating another revenue stream in-house are limited.
If you can’t squeeze another cent of your salon but have the drive to set up another business, now is the right time. You can consider a complementary business that ties in with your salon, or you could deviate completely. However, as you know the beauty industry, it’s an excellent idea to at least stick within the same sector.
This doesn’t mean opening another salon that provides the same or similar services. You may want to opt for a style bar, a permanent makeup studio, or even a fitness center instead. All these ideas allow you to diversify your revenue stream while offering the chance to expand your business offerings.
2. You Have Time On Your Hands
Venturing into a new business means that you have to dedicate more time and energy to your new endeavor.
Salons are amongst the busiest of all ventures in the beauty industry as you’re juggling existing clients, returning clients, new clients, and walk-ins. If you’ve managed to ensure this all runs smoothly and have the right staff in the right roles, you may find that you’re taking a back seat in the day-to-day running of the business.
This means you have spare time that you can dedicate to opening a new business, or at the very least setting one up and recruiting the right people to run it for you.
3. You’re Passionate About A New Idea
Passion is the key to a successful business. It’s what drives you to seek success and to keep aiming high. There’s also nothing wrong with having more than one passion. Your salon is successful because you are passionate about it, but you can also pour that same energy into a new venture if you’re so inclined.
The important part is to recognize that your passion may not be the ideal business idea. Before you embark on opening another new business, ensure that whatever it is you’re passionate about is a feasible venture. Having the time and finances to explore this is important, and if it’s not an option, you still have your salon to fall back on.
4. You’ve Noticed A Gap In The Market
Every salon fills a need, and every product offers a solution. If you’ve noticed that there’s a gap in the market for a service, you are uniquely positioned to fill it. You already have a sound knowledge of the beauty industry and can expand on that using your insight. Currently, some of the biggest gaps in the market are in green cosmetics and a lack of diversity in products, so these are excellent avenues to explore.
But it’s not as easy as just picking a gap and running with it.
For your new business to stand out from its competitors, it will need to offer a unique selling point. This means offering a product or service that’s distinguishable from your competitors. You need to think beyond what’s on offer currently and create something fresh and new that really fulfills a need. In the wake of the pandemic, there’s been an increased interest in all-around well-being, and you may find that people are looking for something a little different from before.
Spot that gap and make it your own.
5. You’re Financially Ready For A New Venture
Venturing into a new business will require capital. This means that you either have money in the bank that you can invest in your new venture, or you’re confident that you can secure a loan for the capital that you require. You may also consider finding an investor. If your current salon is a success and your financials are in good standing you shouldn’t struggle to secure a loan as you have existing collateral. Plus, investors will be keen to back you based on your past success.
Just don’t neglect the financial planning phase.
Ensure that you do your market research in the same way you did for your salon and that you plan ahead, forecast, and do a competitive analysis. While you may be more attractive to lenders and investors, you still need to ensure that your new business plan has merit and is primed for success.
Having the financial security that you need to open a new business is a major indicator that you are ready for a new challenge. If you’re financially secure and excited about branching out, you’re in an excellent position to try something new and expand your repertoire.
Make The Move
“I never dreamed about success. I worked for it.” — Estee Lauder
If one or more of these signs are flashing green, you can be sure that it’s time to venture into a new business. Running a salon is not easy, but if you can do this successfully and have the time, money, and energy for something new, go for it!
About the Author: Jill Goodwin is a content chcampion for a variety of online publications. She often covers topics that cater to business owners and entrepreneurs with a strong focus on finances, productivity, management and a few other topics.
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Originally posted on Salon Today