Opening a new location is a major goal for many business owners in the professional hair and beauty industry. Expanding your business, some believe, represents success. It signifies opportunity and expansion, allowing you to share your offerings with more people and continue building the brand you’ve worked so hard to create.
That being said, however, opening a second business location doesn’t come without its challenges. Moving from a single to a multi-location business can be tough, and must be not be done without a robust strategy in mind.
We caught up with Nate, owner of Luxe Lancaster and Luxe Lititz; two full-service hair and beauty salons located in Pennsylvania, USA. Nate successfully expanded his business six years after opening his first location and has been going from strength to strength as a multi-location salon owner and CEO ever since.
In an interview conducted by Avril from the Phorest team, Nate offered some valuable insights on knowing when your salon is ready for growth, the challenges you may face, and the key factors to focus on when scaling your business.
Knowing When Your Salon is Ready to Expand
The decision to open a new location goes far deeper than just wanting to grow your business or make more money. It requires operational stability in your existing operation and the right market opportunity. When Luxe Lancaster got to that point, Nate knew it was time to take the next step.
“For my salon, I decided we were capable of managing an additional location about six years into the first,” he explains. “We had really streamlined our systems by then, so we were able to devote more energy to growth and scaling.”
When an opportunity arose in an affluent suburb just 20 minutes from his city salon, he knew it was the perfect time. “The suburb didn’t have much client crossover with our city location, so we saw it as a completely new market to tap into,” he recalls. This readiness, combined with streamlined system processes and an opportunity to tap into a completely untouched clientele was a dream combination that made opening a new location feel right.
“It’s not just about having the money to expand,” explains Nate. You need to ensure your internal systems, team, and market conditions are all aligned before taking that step.”
Staffing a Second Location
Once Nate decided that the time was right to expand, the next thing to consider was staffing. Like in any salon, clinic, or spa, the staff you employ can make or break the business- and dictate whether or not your expansion will be successful. Before opening a second location, your team, old and new, must be trained and ready to handle the increased demand.
“When we expanded, we focused on acquiring new staff rather than moving our existing team,” Nate shares. “Since there wasn’t much client crossover between the locations, it made sense to build a new team that could cater to the suburban clientele.”
Nate began recruitment four months before opening his second location, which allowed time for onboarding and training at the original salon-something that worked well for new hires adapting to the onboarding process; “It was so helpful to have the existing location for onboarding and training of new hires. It was much easier to acclimate new staff to our culture, procedures, and values through hands-on experience with existing staff and clients, and we were fortunate enough that our original location was close enough to easily do that.” he explains.
His advice? “Use your original salon as a training hub.” By immersing your new team in the culture of your original location, they can bring all the things you’re known for to your new location seamlessly; whether that’s your five-star customer service, the way you perform certain services differently, impressive efficiency on the salon floor, or strong visual branding.
Handing The Financial Side of Expansion
For many salon, clinic, and spa owners, one of the motivations to expand will come from the desire to generate more revenue. While this is a major benefit of successful expansion, be aware that in the early stages of opening a second location, finances can be tricky. When asked about the financial aspect of opening a new salon, Nate explained that planning and tracking KPIs were vital in determining whether his salon was ready for growth.
“We’ve always followed the Summit Salon method, which helps track key performance indicators (KPIs) like client retention, new client visits, and service utilization,” he says. “When our numbers consistently indicated secure growth, we knew we were financially ready for expansion.”
Working with an accountant was also crucial. “Our accountant tracked financial KPIs and advised us when we were ready to support a second location. It’s important to have that external financial expertise to guide you,” Nate explains. No matter what success looks like to you, knowing that your business is on an upward trajectory is key if you are considering opening a new location.
Pssst: Phorest’s salon, clinic, and spa reporting features can help you stay on top of all the important numbers for your salon, spa, or clinic, from finances and marketing to staff and clients!
Facing Challenges-The Reality of Opening a Second Location
With any big business changes, challenges are a given. For Nate, this was the learning that no two locations are alike—even if they’re located close together and grouped under the same salon name!
“Our two locations are only 6 miles apart, but they may as well be on different planets. In the same solar system, sure, but 100% unique,” laughs Nate. “One example of where this became very clear, very quickly, was our retail brand partnerships. We initially stocked the same retail brands at both locations. The individual markets were so unique that we had to adapt very quickly when retail at the suburban location was underperforming.”
Thanks to diligent tracking of retail KPIs, Nate’s team quickly adjusted their product offerings to better suit the suburban market, avoiding a retail and revenue disaster. Even under the same company name, when expanding your business it’s important to know that each location will have unique needs. Be prepared to adapt, and don’t assume that what works in one location will automatically work in another. “As similar as our locations are, I have to constantly remind myself that they are not the same!” he laughs.
Advertising a New Salon With The Help of Social Media
After opening, the Luxe team focused their marketing efforts on social media to ensure a steady footfall of clients through their doors. And with 45% of people searching for new hair and beauty businesses online, it’s no surprise that this marketing strategy worked for them, driving awareness and engagement almost immediately.
“At the time we had a very large and interactive Facebook community [for our original salon], so that was the primary platform we used… Now, when we move our second location to a new location [and open a third salon], we will absolutely use social media, including Facebook and Instagram to let people know about that.” Nate says.
His advice for salon owners? To not underestimate the power of social media. Engage your audience early and keep them involved throughout the expansion process to encourage them into your new locations, and to create a sense of hype that encourages new clients in for the first time.
Pssst: Phorest’s SMS & Email marketing tools, as well as Phorest Ads Manager, can help you make the most of your marketing efforts and spread the word about any new business expansions on the horizon.
The Importance of Maintaining Quality & Consistency Across Locations
Quality and consistency, across all locations, is super important to the Luxe team- across all locations. To ensure high quality services and experiences resonated across the business, especially as the team opened their second salon, culture was at the core. No matter what the location, the Luxe team made sure to continually define and reinforce the strong culture they were known for which, in turn, reinforced the quality of their services.
“Maintaining quality and consistency during periods of growth is always going to be a challenge. The single biggest thing that has helped me is clearly defining my culture and communicating expectations… It has definitely helped us grow and continue to define who we are.”
At the same time, Nate advises staying flexible and keeping your brand fresh. “Do frequent pulse-checks on your culture! It is the heartbeat of the business and runs through every employee. It’s exciting for your staff and clients to feel like they’re part of the evolution and growth of your business.” An engaged team + engaged clients = a dream salon environment where everything runs smoother.
Nate’s Top Advice to Salon Owners Considering Expansion
So, what is Nate’s biggest learning after expanding his business? Interestingly, it’s about the importance of being flexible and accepting that you can’t control everything. When asked what one piece of advice he would give to salon owners in a similar situation, he said;
“My biggest takeaway from expansion is that each of your locations are going to present distinct opportunities for growth and development. The staff, the clients, the communities, the challenges, and the successes are all unique. Keep your eyes and ears open for feedback and identify those unique opportunities for insight and perspective at each location. They can be similar, but they will never be the same.”
Thanks to Nate and the rest of the Luxe team for taking the time to chat with us, and we wish them every success in their future business endeavors!
Interested in hearing more from multi-location salon owners that use Phorest?
