Strengths, weaknesses, opportunities, threats; this is what SWOT is, or SWOT Analysis. It is a tool used to help businesses find out where they are doing well, and where there is room for much needed improvement. In a competitive industry like hair salons and spas, the SWOT analysis could be used to greatly improve the problem areas of a business, and to boost the real positive aspects as well. The beauty industry changes so much, it’s good to have a strategy in place to keep up and get over on your competition.
Finding out the strengths of your salon can sometimes be one of the easier parts. At times, you can just look at your clients. If you’ve been doing well with your marketing, and how you operate your business and really keep up with that client book and see you are running out of room, you’ve been doing well for yourself. You will see why the strengths of having a group of expert beauticians and having a great location can also be core strengths.
Sometimes, you can look at the cash drawer to begin finding the weaknesses in your salon. This is not always the case, but your salon’s income can start being eaten in to when there is not as much customer care, or there is no structured training for a stylist. You want to be able to identify the weaknesses within your salon, as this is the beginning of improving your business and growing it even further. When looking at weaknesses in your business, do try and look at it from an outside perspective. It is not beneficial to view anything with a biased eye when it comes to weakness, it can lead to potential problems not being addressed. It could be something as simple as not having enough products, or maybe you chose a location originally that was not suited for your clientele’s needs.
We are now looking at the opportunities portion of the SWOT analysis. The previous two portions dealt more with the inside mechanics of your salon and business, now we begin to shift to the outside, seeing all the external factors. Hair and beauty trends are always changing and evolving. Each year and each season within have their own trends, leaving beauty companies to market and sell the hottest new color or hairstyle. Keeping up with these trends is crucial to the success of your salon business. Showcasing new hairstyles and styling methods can be a real hit in your market. Also, don’t forget to change up brands and products you carry in order to attract new clients.
Your business can be threatened from several outside factors. This can be on a long line from new competition opening up next door, to the out-of-your-hand’s changes in industry laws and regulations. There will be many threats that cannot be changed, but this is where you develop a strategy to adapt to any sudden changes. Say a new salon opened up close to you, threatening your clientele base. You won’t be able to shut them down, but you can definitely adapt your marketing strategy to ensure you still have a piece of that pie. Adapt to any incoming threat, and your business can thrive!