State of the Industry
In recent times, workers skilled in hair and beauty services have moved into more clerical type jobs as their pay is similar while the work itself is easier.
Added to the number of people moving out of the industry, is a growing number of apprentices failing to complete their apprenticeship.
This shortage can be partly to blame for the poor attendance rate for planned interviews with job applicants, as good staff are being snapped up fast as they are hard to come by.
Short term forcasts
Though in recent years there has been a drop in the rate of completion of apprenticeships (down to as low as 11% in 2009), this rate is forcast by NCVER to increase to the more solid figures seen in 2008, at around the 40% mark.
The current low apprenticeship completion rate will have an effect in the industry until at least the 2015-16, after which the increased completion rates will make teir effects felt on the industry.
Key success factors
The success of a salon relies on multiple factors, the main ones however are listed below:
- Links with local health professionals
- Use of specialist equipment or facilities
- Proximity to key markets
- Loyal customer base
- Ability to control stock on hand
- Superior financial management and debt management
- Access to highly skilled workforce
- Marketing of differentiated services
Where does the money go?
The highest expense for any salon, is it's staff. With more than 50% of the money coming in, going back out in the form of wages it's imporant to be hiring efficient staff to ensure that your largest expense, is also your best expense.