Hair Salon Business Tips

You love the ins and outs of being a hairstylist, and you’ve decided to be the big wig and run your own salon. But the transition between being a hair beautician turned salon owner makes your own hair stand on end and is easier said than done.

So, you’ve scoured the Internet searching for ways to improve your beauty salon to ensure you won’t be the only salon owner in your neighbourhood with a permanent bad hair day. Well, scour no more! This guide will provide you some tips and tricks that will transform your hair salon into a business that will keep heads turning for years to come.


  1. More. Clients. 

There’s an A-plus idea. No brainer, right? But here are a few ideas from left field that’ll help you get new clients through your doors.

Develop a rewards program – New customers for hair salon businesses are largely generated from word of mouth. It’s time to use this to your advantage.

Give your current clients an incentive to recommend your business to their friends, family, and neighbours. Offering discounts on services or products and exclusive deals in exchange for organic advertising will do wonders for your client base.

Offer new customer discounts – As you may know, people love their hair. And a lot of trust is given to you when a new client sits down in that chair for the first time. Help ease that fear of the unknown with a discount for new customers. And if you have inexperienced beauticians, help them learn by being a hair model.

Target multiple clientele – Yes, the ladies will bring in the big bucks. Planning to go from jet black to platinum blonde requires multiple bleach sessions along with purple shampoo and other at-home treatments, all of which add up and goes right into your pocket. But men and children also need your service and can generate a consistent income stream.


  1. Invest in your team


Investing in your team is really investing in your business. Not only does it foster a positive work environment for your employees by making their jobs more rewarding, but skilled employees and processes will improve your salon’s reputation.

Send them to beauty school to learn some extra skills, or schedule some time each week to show them the ropes yourself if you are an expert in your trade. But investing in your team isn’t all about extra training. Setting clear goals about their career progression and letting them into your vision of the business will only improve your salon’s atmosphere and skillset.

Furthermore, invest in your team by investing in some new technology. Updating your business processes through centralised management technology products such as Kitomba can vastly improve your team’s efficiency.


  1. Mitigate the risks you face

Risks come with the job description of running a small business. Even that decision to make that call was a big risk! But there’s no point trying to improve your business if all it takes is one claim to ruin you financially and put you out of business. While you can’t control everything, there are some things you can do to either reduce these risks from happening or put in a safeguard just in case they do happen.

Risk to your customers – From a miscut buzzer to hazardous chemicals and a variety of equipment that could result in trips, slips, or falls – the list of situations where you injure somebody or damage their property in your salon is seemingly endless.

Cleanliness and the systems you have in place within your salon are some the most significant factors that could determine the likelihood of an event occuring.

When hair gets cut onto the floor in your salon, that presents a risk of a client slipping on it. Likewise, a hazardous chemical in your salon that is in proximity to your customers also presents a risk.

It’s how you mitigate it that makes the difference. Whether that be sweeping up and disposing of hair after every customer or keeping hazardous chemicals in a safe space away from customers and high enough so children can’t reach it, there is a lot you can do as a small business owner to protect your customers.

But even the most safety-conscious places can still experience accidents from time to time, so it’s also prudent to have a safeguard in place in the form of beauty salon insurance.

Public Liability insurance is an essential form of insurance for beauty salons as it provides peace of mind against claims made against you by third parties for property damage, and personal injury or death, in circumstances that are not covered by the Accident Compensation Commission (ACC).

The risk when giving advice – Your clients expect the best when they come to your salon, relying on your technical and professional skills to get the job done.

But sometimes, despite your best intentions, your service could be wrong and damage your clients, and you may be liable if a claim were made against you. This is why an important type of insurance for beauty salons is Professional Indemnity insurance*.

Professional Indemnity cover is designed to protect your business against claims for negligence or professional misconduct. It protects businesses against settlements and court costs, legal and defence costs, and costs relating to your public relations.

You can do many things as a small business owner to minimise risk. But having Professional Indemnity cover is essential to protect your salon and mandatory if you are a member of the New Zealand Association of Registered Beauty Professionals.


The bottom line

Like any small business, running a hair salon is a process of trial and error. It will probably take a while to understand what works for you and what doesn’t. Keep reading and learning, and most importantly, don’t give up! Hopefully, these ideas will bring and your business success.


*This information is a general guide only and does not take into account your objectives, financial situation or needs. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this blog is general only and should not be relied upon as advice. © 2022 BizCover Pty Limited BizCover Limited is owned by BizCover Pty Ltd (ABN 68 127 707 975).

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