Changing ownership in a salon is a big move, typically filled with lots of emotions.
But the good news is: If a salon ownership change is done right, it can be a super rewarding experience.
Take it from me. I just sold my hair salon a few months ago, so the subject of salon transfers is still pretty fresh.
While I learned a lot through the process, there are a few steps I wish I knew about before I started the transition.
To help keep the salon transfer as easy as possible while you’re working through the changes, here are the twelve most important things to keep in mind.
12 Things to Keep in Mind When Changing the Owner of a Hair Salon
- Legalities and Contracts
- Financial Transition
- Employee Communication
- Client Communication
- Transfer of Assests
- Brand and Image
- Transition Plan
- Customer Data and Records
- Inventory Management
- Outstanding Debts
- Stay Available
1. Legalities & Contracts
Before you change the owner of your salon, first review your lease agreement, contracts with employees, and any licenses or permits.
Different landlords require different things when it comes to a potential lease transfer or asset purchase.
You might need to transfer licenses or notify relevant authorities of the ownership change.
2. Financial Transition
Smooth out the financial transition.
This includes settling outstanding bills, transferring bank accounts, and ensuring you have a clear financial agreement with the new salon owner.
It’s also a good idea to look into retaining your own attorney to help you look over all of your contracts for the sale.
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3. Employee Communication
Of course, you want to keep your employees in the loop. Inform them well in advance about the change in the salon’s ownership.
Reassure them about job security and address any concerns they might have.
You might not be able to make everyone happy in the transition, but as Brene Brown says “clear is kind,” so keeping everyone informed is going to be a huge asset through the changes.
4. Client Communication
You’ve worked hard to develop your relationships with your salon clients, so be sure to communicate with them openly about the change.
Let them know who the new salon owner is, why the change is happening, and how it will affect their appointments.
Going above and beyond to make it a positive experience for them will set you and the new owner up for success.
Pro Tip: A detailed email or even PDF breakdown is a super helpful tool to answer, lay out your plan, and give out details on your terms.
5. Transfer of Assets
Create a detailed list of all salon assets, including furniture, equipment, and products.
Think about going room by room in your salon and listing what will be included in the sale and what won’t. (This is also a great place to take pictures for reference.)
Work with the new salon owner to transfer ownership smoothly, ensuring nothing is lost or overlooked.
This might seem like an overboard step, but it’s a huge help to make sure that everyone is on the same page.
6. Brand & Image
Discuss with the new owner how they plan to maintain or evolve the salon’s brand and image.
This topic might come up in conversation, so it’s super helpful for you both to have discussed the plans moving forward after the sale.
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7. Transition Plan
Have a clear transition plan in place.
Outline the timeline for the salon changeover, including any training or shadowing periods for the new owner. (Make sure and include that outline in your Asset Purchase Agreement.)
Remember: A smooth transition minimizes disruptions.
8. Customer Data & Records
Safeguard customer data and records.
Ensure the new salon owner has access to client information to maintain continuity in appointments and services.
This will usually require a change in ownership of your salon booking software, so make sure that you understand in advance what that looks like with your unique software.
If you’re using a scheduling app like Schedulicity at your salon, you’ll want to switch up the credit card on file for your monthly subscription.
(Schedulicity businesses can do this by accessing the Subscription area of their account.)
Think forward to what you might need for the following year’s taxes etc, and make sure you obtain all reports that you need before any account changes happen.
9. Inventory Management
Sort out your salon’s inventory and product management situation.
Decide whether existing products will be sold or used up, and how to handle product suppliers during the transition.
Make sure and reach out to your beauty supply rep and let them know that the location is going to have an ownership change.
10. Settle Outstanding Debts
Make sure all outstanding debts, whether to suppliers, landlords, or employees, are settled before the change in ownership.
11. Celebrate and Say Goodbye
Don’t be afraid to create a positive vibe around the transition.
I took my team out to dinner, and it was such a special way to close that chapter on my business.
12. Stay Available
Lastly, make yourself available. Even after you’ve handed over the keys, be available for advice or guidance if needed.
It shows you genuinely care about the salon’s success.
Of course, change can be challenging, and you can plan for all the things, but life happens.
Remember to take one step at a time each day, take deep breaths, and be proud of what you’ve built.
Cheers to the next chapter!
Starting a new salon? Or venturing out on your own? Don’t worry, Schedulicity has you covered!