Transforming a Salon Business for Explosive Franchise Growth

Background

This case study explores the journey of a salon services company in India, owned by a dynamic mother-daughter duo. Starting with humble beginnings, the mother, a visionary with a background as a beautician, successfully launched a women’s salon, a men’s salon, and a hair and beauty training institute. After running these outlets for two decades, she aspired to roll out a franchise scheme to create multiple earning opportunities in the beauty and salon industry. However, while she had a deep understanding of the domain, she was cautious in the franchise world. The sale of their first franchise led to overwhelming demands for support.

Despite business growth, scaling the franchise model remained elusive. The mother and daughter were caught up in supporting the different outlets, dealing with prevalent staff attrition, demanding franchise owners, and the absence of formal marketing processes. Essential elements for making the franchise model viable and scalable were missing. The mother wanted her daughter to take over the salon business so she could invest in other ventures. However, the daughter, new to entrepreneurship, needed close hand-holding and a trusted partner. The challenges grew as she became busy monitoring service quality, managing franchise owner relationships, and handling staffing issues, leading to overwhelming stress and reduced franchise profits.

Transformation Journey

Coaching Methodology

The mother reached out to Business Coach Tabish Bibikar, whose coaching methodology included brainstorming, deep dive coaching questions, working on limiting beliefs, and one-on-one weekly coaching sessions. This approach provided an outsider’s perspective, essential for identifying and overcoming hidden challenges.

Reviewing and Structuring Processes

Tabish Bibikar began by reviewing the salon’s existing processes. An organizational structure encompassing Sales, Marketing, Operations, Legal, Accounting, and Customer Services was established. This structure created a second line of leadership, easing the burden on the owners.

Standardization and Documentation

Standardization and documentation of salon layouts and branding were implemented, ensuring consistency across all outlets, making the franchise model more scalable.

Financial Planning

A detailed P&L budget was created for the company. They hired a sales and marketing team and purchased office space, which became the registered office. This central location facilitated franchise partner sales and functional review meetings.

Expansion and Centralized Services

With these foundations in place, the company grew from one franchise outlet to 42 outlets in three and a half years. An internal HR and talent acquisition team was established to hire staff for all franchise partners as a centralized service.

Data-Driven Decisions

Detailed data was gathered about footfalls in each salon outlet to measure earnings. Revenue per square foot of salon space for men’s, women’s, and unisex outlets was calculated. This data ensured accurate business commitments to franchise partners and benchmarked ROI per salon, creating more sales opportunities.

Training Programs

Franchise partner training programs were launched to equip partners with the skills to handle salon staff during hand-offs. This training ensured that franchise partners could maintain high standards and manage operations effectively.

Outcome

The transformation was dramatic:

• Significant Growth: The company expanded from one franchise outlet to 42 in just three and a half years.
• Centralized HR Services: An internal HR and talent acquisition team was established, providing staffing services to all franchise partners.
• Financial Stability: Detailed financial planning and centralized operations led to improved profitability and business stability.
• Data-Driven Success: Accurate data collection and analysis ensured better business decisions and franchise partner satisfaction.
• Leadership Transition: The daughter became the CEO of the company, allowing the mother to focus on other ventures.

This case study demonstrates that with the right coaching methodology, strategic planning, and dedicated execution, significant business transformations are possible. The journey of this salon services company highlights the importance of structured processes, standardized operations, and effective leadership transitions in scaling a business successfully. If you are facing similar challenges and want to scale your business, reach out for a complementary brainstorming session to explore the best solutions for your business needs.