5 Mistakes I Made When Opening My First Salon

5 Mistakes I Made When Opening My First Salon

Starting a salon is an exciting yet challenging journey. Through my own experiences, I’ve learned valuable lessons that have shaped the way I run my business today. If you’re considering opening a salon, here are five mistakes I made that you can learn from.

1. Research Employment and Pay Structures Before Hiring

When I started my salon, I explored various pay structures to determine what worked best. Initially, two stylists from my previous salon followed me to my new venture. While I didn’t ask them to come, they were eager to join me. However, I later realized this situation could have been handled differently, as it put my former employer in a difficult position.

At first, my salon operated with booth rentals. However, I wanted to build a team of employees I could train from scratch, so I transitioned to a commission-based system. That’s when I learned my first lesson:

• In my state, commission-based stylists must be paid at least minimum wage if their commission earnings don’t exceed that amount. Unfortunately, minimum wage alone isn’t enough for a stylist to make a living.

• When we moved locations, my booth renters lost about 30% of their clientele, which is typical when relocating 15–20 minutes away. This made it harder for them to rebuild their client base.

• My first commission-based employee struggled to attract new clients, and her limited tips made it difficult to sustain her financially.

• She also lacked proper salon equipment, which didn’t align with my salon’s high-end branding.

After she left due to financial struggles, I invested in equipment for all stations, ensuring future hires had what they needed. I also sought coaching to refine my pay structure. While my new system worked well for three years, it had flaws, such as complicated calculations and unpredictable pay fluctuations. This led me to realize my second mistake.

2. Mixing Different Pay Structures Can Lead to Problems

At one point, my salon had both booth renters and commission employees. This caused tension:

• Employees saw booth renters enjoying more freedom and wanted the same benefits.

• Some employees began leaving work early or disregarding salon policies.

• Booth renters attempted to influence employees, questioning my leadership and encouraging them to demand more benefits.

• Over time, this division eroded my business culture.

Ultimately, I learned that it’s best to choose one employment model and stick to it to maintain consistency and avoid internal conflicts.

3. Create a Career Path for Growth

Having a long-term plan for your employees is essential. When I started, I didn’t have a structured level system in place. This led to:

• Stylists feeling stagnant in their roles.

• High turnover, as employees sought better opportunities elsewhere.

• A lack of direction for employees looking to grow within the salon.

After researching different models, I implemented the Summit Process, which emphasizes structured levels and training programs. Stylists need to see a clear path for career advancement—without it, they’re more likely to leave for other opportunities.

4. Training New Stylists Without a Plan Leads to Frustration

Hiring new stylists fresh out of school can be rewarding, but it requires a structured training program. When I first hired an assistant, I realized:

• Without a clear training schedule, they often felt like extra help rather than a valued team member.

• They had too much downtime, which led to other stylists trying to “steal” them.

• Once fully trained, they sometimes explored other job opportunities instead of staying with the salon.

To address this, many salons have started implementing training agreements where new hires commit to staying for a set period after training or repay education costs. While this approach has pros and cons, having a structured training plan is crucial to keeping new stylists engaged and invested in your salon.

5. Hire the Right People from the Start

Building a strong salon team starts with the hiring process. Over time, I’ve learned:

• Clearly defining job expectations and red flags helps filter out candidates who aren’t the right fit.

• Hiring friends or family can be risky—if they don’t meet the requirements, it can strain personal relationships.

• Firing a friend or family member is one of the hardest things to do and can hurt both the business and personal connections.

To avoid hiring mistakes, I’ve developed a detailed interview process that ensures I bring in people who align with my salon’s culture and vision.

Final Thoughts

Opening a salon is a journey full of learning experiences. By understanding these five common mistakes, you can avoid unnecessary struggles and build a salon that thrives. If you're looking for more guidance on hiring, check out my blog on interviewing tips and questions to ask potential employees.

Have you made any of these mistakes or learned lessons from your own salon journey? Let’s chat in the comments!