Recognising the Right Time to Expand: Hiring Your Next Stylist for Salon Growth & Expansion

As a thriving salon owner, the decision to hire a new stylist is a pivotal moment in the growth trajectory of your business. While it may be tempting to base this decision solely on the busyness of your salon, there are key indicators and strategic considerations that should guide this process for long-term success.

The Foundation: Benchmarks for Your Existing Team

Before even contemplating expansion, it's crucial to evaluate the performance of your current team. Several key metrics can serve as benchmarks. Why? Because if current team aren’t winning in these areas then there’s money to be made there AND you want to make sure that you’ve build a team of winners before bringing in any newbies - poor performers will hurt your salon culture

1. Bookings and Scheduling:

Your existing team should consistently be booked out at least six weeks in advance. This indicates a high demand for your salon's services and ensures a steady flow of revenue. Additionally, being booked in advance allows for better planning and organisation.

2. Retention Rate:

Aim for a retention rate of at least 70%. A high retention rate signifies client satisfaction and loyalty. Satisfied customers not only return for services but are more likely to recommend your salon to others. If current team do not have a high retention rate, chances are you’re losing clients through broken strategies. Train your existing team in appointment flow, consultations and rebookings to ensure this increases. Otherwise, your marketing strategy might be working but there are leaking holes in your bucket and people aren’t coming back.

3. Rebooking Rate:

A rebooking rate of at least 65% is a strong indicator of customer loyalty and satisfaction. This shows that clients are not only returning but are committed to regular appointments, contributing to consistent revenue. Don’t be lazy and reliant on online booking systems - train your existing team in the importance of rebooking and creating hair journeys to ensure clients come back. They are after all, their pay check.

4. Retail Percentage:

Achieve a minimum retail percentage of 25% for the salon. This indicates that your team is effectively promoting and selling retail products, contributing to increased revenue per client. Plus, it shows that team are solving client problems. It can be difficult in this day and age to sell retail with hard hitters like Adore Beauty, but if your team truly love the products you stock and the results they give, they will do well in this area.

5. Confidence in Filling Appointments:

Your team should demonstrate confidence in managing appointments efficiently and filling any gaps in their schedules. This proactive approach ensures optimal utilisation of salon resources. If you’ve got a foh manager or receptionist - IT IS THEIR JOB TO DO THIS. They should be making 2x their wage per week by ensuring salon books are filled through social media efforts, sms reminders, client follow ups etc.

Strategic Readiness for Expansion

1. Lost Client Strategy:

Before expanding, have a robust strategy in place for reclaiming lost clients. Analyse the reasons clients leave and create targeted approaches to win them back. A proactive strategy can prevent a decline in client numbers. It’s important that you pull your clients not retained reports and identify how many clients you’ve lost - then, create email or sms campaigns to get them back in.

2. Financial Preparedness:

Ensure your salon can financially support a new stylist's wage for at least six weeks without relying on additional revenue from that stylist. This buffer provides time for the new stylist to build a clientele without causing financial strain on the business. When stylists enter a new business, without a following it takes time for them to actually turn a profit. That’s why you need to be certain that you can get someone earning 3x their wage ASAP especially if you’ve negotiated a high hourly rate. This is why I prefer profit shares - you can learn more about that here

3. Appointment Stacking:

Maximise the efficiency of your existing team by implementing assistant and apprentice roles. This ensures that your experienced stylists can focus on high-value tasks while building the skills of junior team members. Your seniors should be doing all of the foundational colour work, while your apprentices and assistants cover all areas of toning, treatments and styling. Seniors could bring in $700 a day working one on one with clients or up to $1400 working with apprentices. Which, if you’ve developed a profit share arrangement will only reward your seniors more. It’s a win, win - plus, you’re nurturing and growing new talent.

4. Career Progression Frameworks:

Establish clear career progression frameworks and opportunities for your existing team. This not only motivates current staff but also creates a structured approach to internal growth, reducing the likelihood of talent turnover. We need to have an idea of where our team can go within our company and we want to build out plans to help them get there.

Signs It's Time to Hire

1. Demand Exceeds Capacity:

If your salon consistently turns away clients or cannot accommodate last-minute appointment requests, it's a strong indicator that additional staff is needed. Especially if your current team are already stacking and are highly productive.

2. Extended Waiting Times:

Clients experiencing extended waiting times for appointments may seek services elsewhere. If wait times become a common complaint, it's a sign that your salon may benefit from additional stylists.

3. Quality of Service at Risk:

If the demand for services compromises the quality of your team's work or client experience, it's time to consider expansion. Maintaining high standards is crucial for long-term success. We don’t want to burn out your existing team or have to cut down appointment times just to squeeze people in.

4. Positive Financial Outlook:

If your salon is in a stable financial position, with consistent revenue and profitability, it suggests a readiness for expansion. Make it a goal to get your profit margin to 10% per month and then 20% with a goal to grow to 30%

As a good rule of thumb, it’s ideal if your wages come in at 30%-35% of your overall turnover - keep an eye on your profit and loss statement and business summary report to monitor this.

We also want to make sure that we’ve set things up in a way that our emerging team are growing and moving up the ranks. For example, I currently have 3 year apprentices in my salon business who are more than capable and on the verge of qualifying - why would I consider hiring a new senior now when I have 3 talented humans ready to qualify and smash it.

I want them to win first, it’s important that my focus goes there and that I go deeper with what I have right now.