The beauty and wellness industry is more than just a multi-billion dollar industry! It's filled with passionate people who truly believe in their ability to make a profound impact on the world. Whether it's within a local community or on a global scale, the vision that drives many salon and spa owners is one of transformation, empowerment, and connection. Yet, despite this passion and zeal, only a small percentage of businesses in this industry truly realize vision or reach their full potential. Many fall short, not because of a lack of talent or creativity, but due to lack of business principles that produce longevity and success.

Having spent over 25 years in this industry, I’ve witnessed the rise and fall of countless businesses, from small, independently owned salons to large corporate chains. The reasons for their successes and failures often boiled down to a few critical factors. Some had immense talent but struggled with the business side of operations. Others were well-structured but lacked the creative fire that fuels our industry. And then there are those who had a bit of both but were held back by ego, poor leadership, or a resistance to change.

The businesses that not only survive but thrive, have a few things in common. They are built to last, not by chance, but by design! Here are 5 key principles that these successful businesses embody:

1. Structure: The Backbone of a Thriving Business

One of the most telling signs of a business's strength is how well it can function in the absence of its owner. If you were to step away from your business for two weeks, would it continue to run smoothly? Would it still generate revenue, or would you have to close the doors until you returned? The answer to these questions lies in the structure of your business.

In the beauty and wellness industry, structure is often overlooked in favor of creativity and service delivery. However, a robust business structure is the foundation upon which everything else is built. This includes clearly defined roles and responsibilities, policies and procedures that govern every aspect of your business, and a system that ensures continuity regardless of who is present.

For example, consider the importance of having a comprehensive company handbook that outlines everything from dress codes to client interaction protocols. This not only ensures consistency in service but also empowers your team to make decisions aligned with your business values without needing to consult you for every little detail.

Additionally, Standard Operating Procedures (SOPs) should be in place for all critical tasks, from booking appointments to handling customer complaints. These SOPs should be so clear and detailed that any competent team member can follow them and achieve the desired outcome. This level of structure not only frees up your time as a business owner but also instills confidence in your team, knowing they have the tools and guidelines to succeed.

2. People First Approach: Valuing Your Greatest Asset

At the heart of any successful business, especially in the beauty and wellness industry, are the people who bring it to life. Your employees are your most valuable asset, not your clients!  Placing their well-being at the center of your business strategy is not just the right thing to do but it’s essential for long-term success.

The People First approach begins during the hiring phase and continues throughout an employee's tenure with your company. It’s about creating an environment where your team feels valued, supported, and motivated to give their best. This starts with a thoughtful and strategic hiring process that seeks out not just the most talented individuals, but those who align with your company’s values and vision.

Once hired, it’s crucial to invest in your team’s development through updated training and professional growth opportunities. This not only improves their skills but also boosts their morale and job satisfaction. Remember, a happy employee is more likely to stay with your company long-term, reducing turnover and the associated costs of hiring and training new staff.

Moreover, a People First approach also means exemplifying a positive workplace culture. This involves recognizing and celebrating achievements, providing constructive feedback, and creating opportunities for your team to bond and build strong relationships. A positive work environment leads to higher employee engagement, which in turn translates to better service for your clients and higher customer satisfaction.

3. Effective Leadership: From Transactional to Transformational

Leadership in the beauty and wellness industry has previously been rooted in transactions. For example when clients are satisfied, appointments are filled, and revenue is generated owners often exchange these expectations to commission rates, piece rates or team pay. However, the most successful business owners understand the importance of evolving from transactional leadership to transformational leadership.

Transformational leaders build genuine relationships with their team members to build trust and respect that goes beyond the day-to-day operations. They inspire and motivate their team by connecting with them on a deeper level. They take into consideration the individual's strengths and aspirations and then help them achieve their personal and professional goals.

This type of leadership is about more than just managing people; it’s about empowering them to take ownership of their roles and contribute to the success of the business in meaningful ways. By developing an environment of open communication, mutual respect, and shared vision, transformational leaders create a workplace where everyone feels valued and motivated to excel.

One of the key aspects of transformational leadership is the ability to adapt to change and lead your team through it. The beauty and wellness industry is constantly evolving, with new trends, technologies, and client expectations emerging regularly. A strong leader can navigate these changes with confidence and guide their team through transitions smoothly, to ensure that the business continues to thrive.

4. Vision: The Light of Your Business

A business built to last is one that has a clear and concise vision. A vision that is known and embraced by everyone in the company. This vision serves as a guide for decisions making and all conduct from within the business. It gives the necessary purpose and direction that keeps the business on course even in challenging times.

Your vision MUST be more than just a statement on a wall, or an empty statement in a handbook, it should be a living, breathing part of your business culture. It should inspire and motivate your team, giving them a sense of purpose and helping them see how their individual contributions are part of a larger mission. 

For example, if your vision is to be the most innovative and client-focused salon or spa in your area, this should influence everything from the services you offer to the way you train your staff and interact with clients. Your team should understand this vision and be able to articulate it in their own words, using it as a framework for their daily tasks and interactions.

A strong vision also helps in attracting like-minded employees who share your passion and commitment to the business’s goals. When everyone is aligned with the vision, it creates a cohesive and motivated team that works together to achieve shared success.

5. Innovation: Growing on Purpose

In an industry as dynamic as beauty and wellness, staying stagnant is not an option. Businesses that are built to last are those that grow on purpose, constantly seeking new opportunities for improvement and expansion. They are not content with last year’s numbers or successes; they are always looking for ways to innovate and stay ahead of the competition.

Innovation can take many forms, from introducing new services and products to adopting the latest technologies that enhance client experiences. It’s also about being proactive in understanding and responding to industry trends, customer preferences, and market shifts.

For example, a salon or spa that regularly updates its promotions, memberships or loyalty programs to include the latest hair and skincare treatments is likely to attract a steady stream of clients who are looking for the newest trends. Similarly, a spa that invests in state-of-the-art equipment and technology to provide innovative treatments or amenities will stand out in a crowded market.

Innovation also involves being adaptable and resilient in the face of challenges. Whether it’s economic downturns, changes in consumer behavior, or the inevitable competition, businesses that are built to last are those that can pivot and evolve while staying true to their core values and vision.

Is your company built to last? 

Building a business that is truly built to last in the beauty and wellness industry requires more than just talent and passion. It requires a strong foundation of structure, a People First approach, effective leadership, a clear vision, and a commitment to innovation. These key 5 principles are what separate the businesses that thrive from those that merely survive or worse that close. 

At The Ardent Factory, we understand the unique challenges and opportunities that come with running a business in this industry. Our People First signature service is designed to help you build a business that not only stands the test of time but continues to grow and succeed in the ever-evolving business world.

Whether you’re looking to refine your business structure, develop your leadership skills, or explore new opportunities for innovation, we’re here to help. Contact The Ardent Factory today to schedule a discovery call and explore how we can help you build a business that is truly built to last.

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