Expert Advice: Sell, scale or franchise your salon?
Katie Godfrey asks, does your beauty or hair business have more potential than you realise?
The beauty industry has changed dramatically in recent years. Once a thriving, fast-paced industry, it now presents salon, clinic and training academy owners with new challenges.
Staffing shortages, rising costs and shifts in consumer behaviours have made it harder than ever to maintain profitability.
Many beauty business owners find themselves exhausted, stuck and unsure of their next move. Some feel like closing is the only option, while others wonder if their business has more potential than they realise.
The truth is, your business is an asset and with the right strategy, you can sell, scale or even franchise it for greater success.
Do you feel like giving up?
Running a beauty business has always been demanding, but recent years have made it even tougher. Here's why many owners feel drained:
Staff recruitment struggles: More professionals are choosing to work for themselves, making it harder to find reliable employees.
Rising costs: Inflation has increased expenses for wages, rent, and supplies, squeezing profit margins.
Changing client behaviours: Consumers are more cautious with spending, and loyalty isn't as strong as it once was.
More competition: With the rise of home-based and mobile beauty businesses, traditional salons need stronger marketing and differentiation.
These challenges leave many owners wondering if it's worth continuing. But instead of shutting down, there are smarter ways to exit or scale your business profitably.
Is your business sellable?
Many beauty business owners never consider selling because they assume no one would buy their business but most are sellable, if they're structured correctly. Here's what makes a beauty business valuable to potential buyers:
Profitability: A business that generates consistent revenue is more attractive to buyers.
Operational independence: If your business can run without you, it's more valuable.
Systems and processes: Documented procedures make it easier for a new owner to take over.
Brand reputation: A strong client base and online presence increase its appeal.
Team stability: Having reliable, well-trained staff in place adds to the business' value.
If your business isn't fully sellable yet, small strategic changes can increase its value in 6-12 months and make it a lucrative asset instead of a burden.
Sell, scale or franchise?
If you're feeling overwhelmed in your business, selling isn't your only option. Here are three different ways to move forward:
1. Selling your business
Selling is a great option if:
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You no longer feel passionate about running it
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You want a lump sum to invest in something new
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The business has strong systems and profitability
A common misconception is that selling means finding someone willing to pay the full price upfront. However, most salon sales involve structured payments where the new owner takes over gradually, reducing financial risk.
Tip: The more profitable and well-documented your business is, the higher the sale price you can command.
2. Scaling your business
If you still love the industry but feel overwhelmed, scaling can provide relief while increasing revenue. This might involve:
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Hiring a salon manager to oversee operations
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Expanding services, locations or online training
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Leveraging passive income streams like retail sales
Scaling allows you to increase profits without working more hours, but it requires strong leadership, marketing, and financial planning.
3. Franchising your business
Franchising is an ideal option for business owners who want to expand without managing multiple locations themselves. A franchise model works best if:
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Your salon or training academy has strong branding and systems
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There's demand for your business in other locations
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You want to grow but prefer others to handle day-to-day operations
Many buyers prefer buying established salons instead of starting from scratch. If your business is thriving, it could become a franchise opportunity for other aspiring owners.
Shifting to a CEO Mindset
One of the biggest mistakes beauty business owners make is becoming too emotionally attached to their business. Yes, your salon is your passion but at the end of the day, it should be profitable and sustainable. If it's draining you financially and emotionally, it may be time to:
Streamline operations: Improve efficiency, reduce waste, and optimise pricing.
Delegate and automate: Invest in management and software that lightens your workload.
Think like an investor: Instead of seeing your business as a personal project, view it as an
asset that should generate long-term value.
By shifting your mindset from a stressed-out salon owner to a confident CEO, you'll be in a stronger position to sell, scale or franchise successfully.
If you're at a crossroads in your business, you don't have to shut down or struggle alone. There are ways to turn your hard work into a profitable exit or expansion strategy.
Whether you decide to sell, scale or franchise, the key is making your business attractive to buyers. If you're unsure how to assess your business value, make it sellable, or transition into franchising, now is the time to start planning for the future.
Your business is worth more than you realise, make sure you maximise it!
Katie Godfrey is a Business Strategist, Mentor and CEO of KG Professional, offering ABT Accredited courses. Listen to a recent episode of her podcast,
The Life of KG, where Katie and Amy Lewis, Founder of Mooeys, talk beauty business franchising.
