In our franchise interview, Esna tells us how she always wanted to be in the beauty industry, more specifically she wanted to own and run her own business. She made the decision to purchase a franchise from Placecol, and opened her salon in Randburg in 2009. She knew the brand very well and already had a relationship with it, so the decision was not a hard one to make.
In May 2010, she got more involved in the business by taking up the role of CEO. Her salon is now one of the World of Beauty franchises which is a combination of the renowned Placecol and Dreamnails &Body brands.
The Strength is in the System
Esna says all of the salons have a good point of sale system, which she believes rules the franchise system. She adds that it is important to have a good system to control stock management, appointments and customer relationship management. CRM is of utmost importance because it allows you to communicate regularly with customers and maintain their loyalty.
Esna’s commitments in the corporate world mean she is unable to be at the salon every day, but she does try to spend as much time as possible in her salon on weekends. During the week, Esna travels which makes it difficult for her to be in the salon. However, if she is needed she is always available over the phone.
While she may not physically check on the store on a daily basis, she knows how it has performed as she receives daily reports. She relies heavily on the point of sale system for this information.
Esna depends on her salon manager to run the salon effectively. She recently appointed someone she believes is a strong manager who is capable of running the salon in her absence. She says many of the franchise’s salons are run by managers, but the group prefers the franchise owner to be actively involved.
She says franchise owners should take an active interest in the people and salon itself. The process of finding the right person for the job is a challenge. Esna requires her manager to be driven, have good retail experience and skills, serve the needs and requirements of clients, and be able to work in a team, while motivating the other staff.
The Numbers Game
Buying into an established beauty franchise made more sense to Esna than operating an independent salon. One of the reasons for this is that due to the buying volumes, better rates can be negotiated with suppliers.
Since beauty treatments and products are regarded as a luxury, this is becoming increasingly important as consumers become more price sensitive. Securing better prices from suppliers allows the salons to be more profitable while offering customers value for money.