Reasons Why Your Salon is Not Growing

4 Reasons Why Your Salon is Not Growing

Whether you just started or you have been in business for five years or even ten, there may come a time when revenue either stagnates or even significantly declines.

Business challenges impact every industry, but some unique challenges or roadblocks face beauty brands. If this is your first time in business, you may find yourself overwhelmed and stressed out about dips in revenue or lack of growth. 

Even if you have an idea as to why your business is not moving in the direction you want it, you may be so fixated on the problem that you cannot discover why the problem exists in the first place. Below, we break down four reasons why your salon is not growing.

1. You Have Not Established Your Unique Selling Proposition

Having a unique selling proposition, or USP for short will set your business apart from your competitors who live in uniformity. If you have not done this yet, reflect on what aspects of your company differ from your competitors. Perhaps you have established yourself as a mission-driven salon due to donating a percentage of revenue to a nonprofit organization. Or, maybe your salon or barbershop has a vintage feel and caters to a young Hipster demographic.

Whatever the USP is, if you are not leaning into it hard enough, your ideal customers will not come through the door. Try updating your salon equipment to something new and fresh, keeping your salon on trend with new furniture will set your business apart. Keller offers on-trend salon equipment to keep your hair salon or barbershop up to date.

2. Your Marketing Strategy is Unclear or Nonexistent 

Think you’re too busy for proper planning? Think again. Without strategic plans in place, beginning with a business plan and then a marketing strategy, you may find yourself spinning your wheels or constantly trying new marketing activities to see what sticks. 

The problem with not having a plan is twofold. First: doing marketing on the fly is likely to fail and create more overwhelm (which you don’t need). Second: without a strategy, you can guarantee that the marketing activities you do pursue are unlikely aligned with your vision and specific business objectives. 

The good news is that you do not necessarily have to hire a fancy marketing agency or marketing strategist to get a plan in place. Start by writing down two overarching business goals. One should connect to your brand awareness, and the second should link to a conversion-specific goal (i.e., how much revenue do you want to generate at the end of the second quarter, per month?). 

You can think about what activities would be required to achieve these objectives. If you still need help and have a limited budget, consider reaching out to your local chamber of commerce for resources or the local SBA office. 

3. You Have The Wrong Staff or Tenants

Whether your stylists are employees or tenants, you want to ensure that the people who represent the salon or shop are in line with your values and mission. If they are not, or worse, do not even know your mission and values, you may find yourself working with individuals you’d rather not spend even more than five minutes with. Clients and potential clients can pick up on this energy from leadership (salon owners) and staff. Avoid creating a hostile and disjointed environment by carefully vetting the people that will work in and represent your business. Create boilerplate questions for your stylists to clarify their values, vision, and intentions. 

4. Your Expenses Are Eating Away Your Cashflow 

When did you last review your business account? Small business owners often juggle so many balls that they forget to examine their numbers. Ensure vendors give you the best deals and ensure that you are not overspending in one area. Be sure to work with established businesses that can offer affordable solutions, like Keller International Salon & Barber Equipment, when seeking new furnishings for your salon.


Being a salon or barbershop owner is not easy; however, the rewards of business ownership are worth the challenges. In the end, the growth of your business depends on how much focus and effort you put into it. For more tips on how to run a salon business or to learn what's trending in the industry, check out the Keller International blog for the latest.


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