Spa Business Management

1 Understand the processes required to begin a hairdressing business

The vital components of a business plan are executive summary, business description, business vision, market analysis, organisation, management, product or service offering, marketing and sales strategy, funding requests, financial projections, operations plan, risk analysis, and contingency planning.

Funding options for a startup hairdressing business: personal finances, friends and family, small business loans, business credit cards, grants and government programs, angel investors, venture capitalists, crowdfunding, equipment financing and leasing, partnerships, joint ventures, incubators, accelerators, bootstrapping, lean startup approach.

Business structures:

• Solo proprietary
  
  • Owned and operated by one person
• Partnership
  
  • Business owned by more than one person
• Corporation
  
  • Separated from its owners
• Limited liability company
  
  • Combines features of corporations and partnerships
• Cooperative
  
  • Owned and operated for the benefit of members
• Nonprofit organisation.
  
  • Organisation that operates for social, educational or charitable purposes

The importance of knowing the industry trends prior to opening a new hairdressing business

• Market demands: identifying opportunities, meeting expectations
• Competitive landscape
• Resource planning
• Operational best practice
• Legal compliance
• Industry innovation
• Financial planning
• Suitability
• Anticipating change
• Future planning

The importance of keeping an up-to-date business plan: guide growth, adapt to change, budgeting and forecasting, attract investors, optimise operations, employee alignment, identifying risks, compliance and regulations, target customers, brand posting, innovation and adaptation.

Factors influencing the location of new hairdressing business: population density, target market, competitive landscape, market potential, foot traffic, parking, transportation, infrastructure, facilities, zoning laws, permits and licencing, cost of real estate, economic stability, brand alignment, ambience and atmosphere, local community, scalability.

2 Be able to write a business plan for a startup hairdressing business

Conducting market research: define goals, identify the target market, secondary data, primary research, analyse competition, evaluate demand, access regulatory and economic factors, draw conclusions, and develop a plan based on findings.

Creating a mission statement:

• Reflect on business values and purpose
  
  • Core values
• Define USP
• Consider audience
• Craft statement
  
  • Language, concise and clear
• Seek feedback

Deciding on staffing needs: number of staff needed, roles needed, training needed, budget for staffing.

Using a word processing program to produce a professional business plan: elements included structure, language, headers and footers, tables and graphs, diagrams, formatting, contents page, font, and accessibility.

Adding a graph or diagram to a business plan: create a graph, create a diagram, format, layout, and size.

Calculating financial projections: costs, income, profit, loss.

Presenting business plan to experts: create a presentation, know the audience, speech, confidence, and body language.

3 Understand the process of managing a hairdressing business

Legal requirements for a new hairdressing business: business registration, licencing, health and safety, professional licensing and certification, employment law, insurance, customer protection and privacy, advertising, tax, accessibility, contractual agreements, environmental regulations, local regulations and zoning.

Roles within a hairdressing business: (this list includes examples but is not an exhaustive list) receptionist, hairdressers, barbers, managers, marketers, maintenance, housekeeping, consultant, and cleaner.

Services that can be offered by a hairdressing business: (this list includes examples but is not an exhaustive list) haircuts, barber services, hair colouring, colour correcting, hair extensions, dreadlock creation and management, hair styling, hair maintenance, hair repair, application of hairpieces.

The importance of consistency in all aspects of management: customer experience, operational efficiency, employee performance and morale, brand identity, customer expectations, continuous improvement, establishing standards, and communicating effectively.

4 Be able to manage a hairdressing business

Managing supplies: stock control, stock check, order supplies, select supplies (quality, costs, supplier, delivery).

Developing a service menu: design, market needs, staff ability and training, licensing.

Setting price structure: cost profit margin, research market and competitors define pricing structure (value-based, cost-plus, bundle), add-on and upgrades, tiered pricing, psychology of pricing, perceived value, monitor performance, transparency.

Developing a health and safety policy: legislation, accessibility, language, ensuring staff understanding, clarity, policies for staff, policies for clients, first aid, emergency response, and chemicals.

Examples of procedures that a standard operating procedure (SOP) could be developed for: (this list includes examples but is not an exhaustive list) treatments, interacting with clients, first aid, marketing, documentation, training, recruitment, staffing management, health and safety.

Monitoring equipment to ensure the safety of staff, self and clients: regular inspections, maintenance and service, maintenance logs, documentation, staff training and awareness, safety protocols, electrical checks, cord management, cleaning protocols, risk assessment, and legal compliance.

Managing client complaints: active listening, empathy, apologising sincerely, investigating issues, offering solutions, taking action, following up, learning and improving.

Managing a budget: establish financial goals, create a budget plan, estimate costs, allocate funds, monitor expenses, control cost, review and audit, cash flow management, financial discipline, plan for contingencies, seek advice, and transparency.

5 Understand leadership in the hairdressing business

The importance of monitoring staff competencies: service quality, enhanced experience, operational efficiency, risk management, employee retention and engagement.

Leadership styles

• Autocratic: leaders make decisions without much input from the team.
• Democratic: team are involved in decision making.
• Laissez-faire: The leader provides minimal input and allows the team to make decisions.
• Transactional: based on rewards and punishments.
• Transformational: focused on inspiring and motivating the team to reach the highest potential.
• Servant: focus on the needs of the team.
• Situational: adapts to the needs of the team.
• Charismatic: The leader uses charm and appeal to inspire the team.

Factors that can result in conflict within a team: communication issues, differences in goals and objectives, personality clashes, role ambiguity, interpersonal issues, resource allocation, organisational changes, external pressures, lack of team cohesion, and unresolved issues.

Motivational tools: recognition and rewards, professional development, team building activities, feedback and communication, empowerment, autonomy, health and wellbeing initiatives, celebrating milestones, transparent leadership.

Strengths and weakness of sales incentive programs for staff

• Strengths
  
  • Motivation and performance
  • Goal alignment
  • Competitive edge
  • Retention and loyalty
  • Flexibly
• Weakness
  
  • Focus on short-term results
  • Potential for unethical behaviour
  • Complexity and administration
  • Impact on team dynamics (could result in a competitive environment and lack of teamwork)
  • Cost considerations

Importance of effective scheduling: optimise resources, meet customer demand, balance workload, smooth workload, improve communication, improve coordination, adapt to change, manage the cost of staffing, employee satisfaction and retention, compliance and legal requirements, strategic planning, alignment with objectives.

6 Be able to effectively manage a team within a hairdressing business

Leading a team meeting

• Prepare for meeting 
  
  • Set objectives
  • Agenda
  • Material
• Setting stage
  
  • Choose environment
  • Welcome and introductions
• Facilitate discussion
  
  • Stick to the agenda
  • Encourage participation
  • Manage discussions
• Promote collaboration
• Seek consensus
• Assign action items
• Summarise
• Plan next steps
• Meeting minutes

Setting realistic goals and expectations

• Understand context
  
  • Assess situation
  • Align with vision and mission
• SMART goals (specific, measurable, achievable, relevant, time-bound)
• Break goals down
  
  • Divide into milestones
  • Prioritise
• Consider resources and constraints
• Communication and alignment
• Evaluate and adjust
• Reflect and learn

Allocating roles according to staff strengths

• Assess staff strengths
  
  • Skills inventory
  • Feedback and self-assessment
• Identify role requirements
  
  • Define roles
  • Match skills to role
• Allocate effectively
• Communicate and collaborate
• Provide development opportunities
• Monitor and adjust

Ensuring staff are sufficiently competent in duties: skills gap, training, qualifications, monitoring staff ability, responding to client feedback.

Recognising staff success: in meetings, bonuses, an employee of the month, recognition of specific achievements, pay-related responses to success, increased autonomy, increased responsibility, and promotion.

Creating a work schedule: staff availability (hours, holiday, sickness), matching skills to appointments, creating a daily balanced team, legality, hourly staff, salaried staff, staff costings, fairness. 

Resolving staff conflict: address promptly, create a safe environment, active listening, clarify misunderstandings, identify needs, generate options for resolutions, negotiate and find common ground, implement and follow-up, and seek mediation if needed.

Ensuring health and safety compliance: understand the legal requirements, clear and accessible policies, staff training, cleaning, waste disposal, handling of chemicals, equipment safety, personal protective equipment (PPE), client health and safety, emergency procedures (first aid, emergency contacts), hygiene practices, regular audits and inspections, record keeping.

7 Understand the importance of technology in a hairdressing business

The strengths and weaknesses of a digital booking system

• Strengths
  
  • Convenience accessibility
  • 24-hour access
  • Ease of use
  • Efficiency and time-saving
  • Improved customer experience
  • Data management and insights
  • Marketing and promotions
  • Payment and integration
• Weaknesses
  
  • Technical issues and downtime
  • Initial setup and costs
  • Data security and privacy
  • User adaptability
  • Integration challenges
  • Lack the human touch

The data management responsibilities of a hairdressing business

• Data collection and storage
  
  • Client information
  • Secure storage
  • Backup systems
• Data privacy and compliance
  
  • Regulatory compliance
  • Privacy policies
  • Data minimisation
• Data security
  
  • Access controls
  • Cybersecurity
  • Employee training
• Data use and analysis
  
  • Personalised services
  • Operational insights
  • Marketing and promotion
• Data sharing
  
  • Third-party services
  • Data transfer agreements
• Client rights and transparency
  
  • Data access requests 
• Incident reports
  
  • Data breach protocols
  • Reporting

Examples of programs used for data management: (this is not an exhaustive list) Microsoft Excel, mindbody, Vargo, Zenoti, Acuity Scheduling, Square Appointments, Fresha, Salon Iris, Meevo 2, Rosy Salon Software, Phorest.

8 Be able to use technology to ensure effective management of a hairdressing business

Selecting a reliable booking system

• Access your needs
  
  • Business size and type
  • Client base
• Essential features
  
  • Online booking
  • Automated reminders
  • Calendar management
  • Client management
  • Payment processing
  • Marketing tools
  • Reporting and analytics
• Integration capabilities
  
  • Existing systems
  • Third-party tools
• User experience
  
  • Ease of use
  • Mobile access
• Security and compliance
  
  • Data security
  • Compliance
• Customer support
  
  • Support availability
  • Resources
• Cos and value
• Customer reviews
• Recommendations
• Scalability

Booking an appointment using a digital system: ensuring availability (staff, client), using a digital system, and sending an email appointment reminder.

Moving an appointment using a digital system: reasons to move a session (client factors, staff factors), movement fees, discussing movement with the client, using the digital system, and sending email confirmation.

Taking a payment over the phone: data security, phone etiquette, using a card machine, entering details correctly, email receipt, thanking customers.

Processing an online payment: using a range of systems, setting up an account, using an existing account, payment integrated with a booking system, enabling online payments, setting up payment options, securing the payment process, testing the process, monitoring transactions and payments.

Creating a client profile using a digital system: online systems, required data, collecting data. Deleting a client profile using a digital system: securely delete data, reasons to delete an account (GDPR, loss of client).

9 Understand marketing in the hairdressing industry

The importance of search engine optimisation (SEO)

• Makes it easier for potential customers to find the website by making the website appear sooner in internet search results.
• Helps the business reach specific audiences by using specific key words.
• Websites seen early in search results are often seen as having a higher authority on the topic being searched for. Therefore SEO can result in a business being seen as one of authority.
• SEO is a relatively low cost form of marketing.
  
  • No direct advertising costs.
  • Minimal maintenance.
• Can give a competitive advantage.
• Supports other marketing efforts.
• Measurable results and insights about customer interactions and intents.
• Is flexible and can be adapted to trends.
• Marketing techniques effective at gaining local clients
• Online presence
  
  • Local search engine optimisation (SEO)
  • Google my business
  • Online directories
• Social media
  
  • Local content
  • Geo-targeted advertisements
  • Engage with followers
• Email marketing
  
  • Local promotions
  • Newsletters
• Partner with local businesses
• Community involvement
• Loyalty programs
• Referral programs
• Flyers
• Adverts in local newspaper
• Engaging with local influencers

The impact social media can have on a hairdressing business: brand visibility, customer engagement, promotional opportunities, showcase services and expertise, building community and loyalty, influencer partnerships, customer insights and analytics.

The importance of a brand image: differentiation in the market (unique identity, competitive advantage), customer perception, customer recommendations, brand consistency, effective marketing, staff recruitment, partnership opportunities, and scalability.

Social media influencers

• Someone with the power to effect purchasing decisions and behaviours
• Often prominent on social media
• Key characteristics
  
  • Audience reach 
  • Authority
  • Expertise
  • Content creation
  • Engagement
  • Brand collaboration
  • Impact and influence

The importance of online reviews: builds trust and credibility (social proof, third-party endorsement), influences purchase decisions, improves search engine visibility, customer feedback and insights, brand reputational management, customer engagement and loyalty.

The impact of introductory offers

• Attract new clients
  
  • Incentive to try
  • Reduced risk to the client
• Increased brand awareness
  
  • Promotional visibility
  • Word of mouth marketing
• Drive initial bookings and revenue
• Build client relationships and loyalist
• Competitive advantage
• Best practice
  
  • Clear terms and conditions
  • Limited timeframe
  • Upsell strategy
  • Monitor effectiveness

Customer retention techniques: exceptional customer service, building relationships, effective communication, building relationships, creating memorable experiences, customer relationship management software, soliciting and acting on feedback, market intelligence, reward referrals, and long-term engagement.

10 Be able to market a hairdressing business

Designing a website homepage for business: heading, logo, imagery, service menu, links, advertising space, embedded social media pages, accessibility, key terms for search engine optimisation.

Designing a social media post to market a business

• Goals and aims
• Choose platform
  
  • Match intended content
  • Ensure awareness of platforms policies
• Type of content
  
  • Short form video
  • Long form video
  • Photographs
  • Test based content
• Consider current trends
• Music
  
  • Using trending music
• Hashtags
  
  • Avoid overuse 
  • Using appropriate hashtags

Identifying a social media trend in the hairdressing industry: following key influencers, monitoring a range of platforms, matching to the market, sensitive management of trends, and appropriate trends.

Planning an influencer visit: select influencer (reach, cost, expertise), decide goals and aims, decide on events, book day, create content from the visit, create a contract, and decide on fees. 

Designing a flyer for local distribution

• Title and headline
• Attractive visuals
• Key information
  
  • Services
  • Special offers
  • Contact information
• Call to action
  
  • Incentives
  • Encourage action
• Design elements
  
  • Layout colour scheme font
• Distribution
  
  • Local hotspots
  • Door-to-door
  • Digital version
• Proofread
• Gather initial feedback
• Consider printing options

Collecting client feedback:

• Feedback methods
  
  • Verbal feedback
  • Feedback form
  • Surveys
• Timing and approach
  
  • Post-visit
  • Anonymous options
  • Incentives
• Types of questions
  
  • Overall experience
  • Specific services
  • Staff interaction
  • Suggestions for improvement
• Online surveys
• Email campaigns
• Review responses regularly
• Analyse data
  
  • Data management tools
• Express gratitude for feedback
• Act upon feedback

How to respond to an online review

• Positive reviews
  
  • Appreciation
  • Build loyalty
  • Encourage further engagement
• Negative reviews
  
  • Address issues
  • Empathy
  • Offer solution
• Neutral reviews
  
  • Acknowledge
  • Highlight positive mentions
  • Encourage revisits to improve experience
• Fake or inappropriate reviews
  
  • Maintain professionalism
  • Report if needed
  • Clarify misunderstandings
• General advice
  
  • Be prompt
  • Personalise response
  • Stay professional
  • Acknowledge all feedback
  • Offer solutions
  • Encourage return visits
  • Use keywords

Designing a seasonal special

• Decide audience and goals,
• Choose a theme,
• Craft offer
  
  • Value,
  • Package components
• Compelling messaging
• Visual elements
• Clear details
• Promotion (online, in person)
• Motor and adjust