PROSPECT AND CHALLENGES OF ESTABLISHING A BARBING SALON

Prospect

Establishment of barbing salons is probably the main source of self-employment for many youths in the country today. Everywhere one goes within a city or local community, barbing salons are a common feature, and they are owned and operated by the youths. Establishing a barbing salon is a viable business and have a very huge prospects as both old and young can hardly live without having a haircut, thus providing an avenue for wealth creation through the establishing of this noble outfit.

 

        Challenges

Owning any sort of small business in a struggling economy like Nigeria is difficult with barbing saloon inclusive. With passion for beauty and hair care, one can wade through this challenges and make a leaving. The following are the biggest challenges faced when running a salon:

1. Fees: The fees incurred when maintaining any type of small business add up as weeks and months progress. Maintaining chairs is sometimes the hardest. But many hair and beauty salons go for state of the art equipment. The more lavish and adjustable your hairs, the more it will cost. Everything depends on decor, and the clients you're trying to attract. Offering up products to sell is also an expense, but one that you're quickly reimbursed on.

2. Employee Incentives: If a hair dresser or salon employee believes they will be taken care of by your establishment, they will feel inclined to stay with you through good times as well as bad. Consider offering incentives, such as bonuses or even health insurance. The right POS software for beauty salons can help you keep track of who contributed what to the salon.

3. Schedules: Flexible scheduling is another employee incentive that lets beauticians feel more in control of their environment. It can also let them build a greater following, letting return customers come in when they're available. Scheduling shows your employees that you care about their needs. Point of Sale software for beauty salons allows you to keep both customer and employee incentives in line with the click of a mouse.

4. Regular Customers Vs Walk-ins: Speaking of customers - there are two kinds who will typically come into salon: return and walk-ins. The majority of your business may rely on return business; those who come in and see the same beautician every few weeks or months. Having discounts for returns is a great way to show how you love anyone who gives the salon repeat business. Walk-ins should always be welcomed too. Display prices at the front desk or near an entrance, along with promotions. This will help attract new business. POS software for beauty salons makes keeping records of discounts and promotions extremely simple.

5. Staying Competitive: Above all else – beauty salons, just like many other small businesses, have to stay hip. Teach your beauticians the latest in haircare design and product information. Offering different services (haircuts, dying, nails, etc.) will appeal to a variety of potential customers.

6. Financial Problems As summarized by Stevenson and Lundström (2001) access to financing is one of the oldest small business enterprises policy issues; it has a history of at least half a century (e.g., the US Small Business Act of 1953; Canada’s Small Business Loans Act of 1961). Small firms were disadvantaged in capital markets because they lacked the collateral security or knowledge to secure conventional financing, were perceived as higher risks and deemed less profitable. Therefore, small firms lacked access to the resources necessary to expand, modernize or grow. Inegbenebor (2006) stresses that even though banks are a major source of funds for small and medium enterprises in the developed world, in Nigeria, this is not the case.

7. Managerial skills Lundström (2005) stated that the ability to enterprise underlines the technical and business conditions necessary for running companies. As such, entrepreneurs need a collection of competencies in order to manage these functions. For example research and development (R&D), financial control and market management all demand education and experience. Rapid developments also require current advanced knowledge in multiple business sectors. The management of business also demands efficient training in leadership, production, financial control, marketing, etc. Ude (1999) claimed that small business owners mostly in developing countries have the problem of mastering the art and science of managing their business and this has posed a great problem to small scale enterprises development, growth and sustenance. Most often, the owners of small scale enterprises pay more attention in acquiring skills in producing one item or the other while they pay little or no attention on how to acquire knowledge in managerial skills concerning their businesses. According to Okafor (1984) this managerial problem comes to manifest especially when their businesses have grown, they find it difficult to cope with new challenges they are faced with. As a result of this, some of them remain at the small level instead of growing with the expansion that is supposed to be associated with business if properly managed.

8. Infrastructure and Technological Application As summarized by Aiyedun (2004:4) “this is another area worthy of note concerning the problems facing small business enterprises in Nigeria”. Inadequate and inappropriate technology; or non use of modern equipment, lack of engineering capacity to translate scientific research results into finished goods and maintain existing machinery as well as low level of entrepreneurial capacity in their production has posed a major treat to the growth and development of small scale enterprises in developing countries. Most of small business enterprises in Nigeria still use crude methods in their production of goods and services thus resulting to their goods being looked upon as inferior ones. Some of the small business owners still lack the appropriate training in using modern technologies for their businesses. Governments at various levels should encourage proper development of infrastructure and technology, that is, the relevant qualified and well-trained technical and management manpower, as well as the physical plants, materials and other facilities required to respond to the needs of small business enterprise.