Factors That Leads to Fail of Starts Up

QUESTION 1: WHAT FACTORS CONTRIBUTES TO SALON FAILURE AND SALONS SUCCESS

Factors that contributes to salon failure

Poor Customer Service

Salons depend on customer satisfaction as it is a business centered on altering people’s appearance. The majority of salons offer a number of services, from basic haircuts and coloring to facials and manicures, which also provides a number of opportunities for customer service to break down. The normal customer service issues faced by every business, such as a staff member acting in a rude or unprofessional manner, can emerge. If a customer gets a hairstyle she didn’t ask for, the wrong color in his hair, or a bad manicure, she will almost certainly tell his friends and family about the bad experience. If a salon develops a reputation for poor customer service, it will lose customers and revenue.

Insufficient Financial Oversight

Salons require careful financial oversight to survive. In addition to the normal taxes on the business revenue, salons running a traditional business model with a permanent staff must also pay taxes on any tips employees receive. Failure to pay the taxes in a timely fashion can lead to fees and fines from the government. Salons must also price services in a way that allows them to compete in their market, but also turn a profit. Insisting on offering expensive services that the market cannot realistically afford or under-pricing services to appear more competitive can push a salon out of business.

Licensing

The Government of Kenya typically require licenses for hairstylists, aestheticians, cosmetologists and manicurists to work in a salon. The failure to get approval from the government might lead to the closure of the business.

Failure to Adapt

A failure to adapt to the changing landscape in the salon industry can lead to financial ruin. The salon business model involved hiring a permanent staff of stylists, aestheticians and even manicurists. The new model consists of renting out a chair or...