Lawyer, undergraduate accountant, and former franchise consultant, Jade Spehr explains to Amy Hadley.
Owning a beauty business with multiple locations is the ultimate goal for many. When executed skilfully, doing so can potentially streamline your business, attract more clients, increase revenue, and boost your presence in the industry.
Running a beauty business, let alone expanding it, can be challenging enough for owners. Opening a new location was once seemingly reserved for large or franchise-based businesses. However, it can be a lucrative prospect for small or independent business owners, when approached with a solid understanding of the benefits and risks involved.
“Many owners are cautious about growth due to economic uncertainty and rising costs,” Jade Spehr, the Director of JadeStart, shares with PB. “However, savvy, experienced players in the industry – who understand the market cycle – are taking advantage of this period to strategically expand their portfolios.” She attributes sustainable growth to an owner’s ability to plan carefully, develop strong structures, and be adaptable.
“If your vision is to create a brand with multiple locations, then expansion becomes a strategic goal,” Jade explains. “It allows you to increase your market presence, build brand equity, and generate higher revenue streams. This requires strong leadership, a capable team, and efficient systems to ensure your brand standards are consistently met across locations.”
She explains that you should be fully committed to the long-term vision, as expansion can be time-consuming and demanding. If your aspirations are to change your lifestyle, be hands-off, or exit the industry altogether, other strategies might be more appropriate.
Similarly, if your business isn’t operating smoothly, it lacks the right team members, or you’re already feeling burnt out, expansion may not be the best use of your time, effort, and resources. Jade recommends exploring other ways to maximise profitability and efficiency.
If you’re achieving what beauty business owners dream about, you might be ready to expand (think: a fully booked calendar, waitlists for weeks or months, consistently strong cash flow and systems). The other side is that you might be experiencing inefficiencies –such as space limitations or difficulty accommodating clients – by not growing.
“It’s a combination of market demand, financial stability, a strong team, efficient processes, and a reputable brand that makes opening a new location possible,” Jade says. “Expansion should feel like a natural progression, not an overwhelming leap. If you’re seeing these signs, and it aligns with your business goals, then it might be time to start planning for that next step.”
“It’s a combination of market demand, financial stability, a strong team, efficient processes, and a reputable brand that makes opening a new location possible.”
Establishing the new location as a separate legal entity, conducting market research, creating a detailed budget, building a strong leadership team, and documenting operational systems are crucial steps towards expansion.
“It’s essential to take a strategic, well-researched approach,” Jade notes. “Consulting with experienced business consultants, and legal and financial experts can help you set up the right business structures and negotiate agreements that protect your interests.”
When considering expanding your business, reach out to your insurer to learn how your cover and payments may be impacted. Companies like BizCover are experienced in supporting small businesses like salons. The Australian company may be able to offer tailored advice based on your particular business goals.
“What a lot of people don’t consider is the preparation required in your current location,” Jade highlights. “Before taking the steps to expand, you need to ensure your current location/s are optimised, setting a solid blueprint for replication.” This means assessing your team’s skills and capabilities, the entire client experience, and whether your business can run seamlessly if you step out.
Another factor is whether you have the funds to make expansion a reality or if you need to pursue investment. Jade suggests being clear about what you want (be it purely financial or seeking additional mentorship) and showing investors what they are looking for: future returns.
“Investors want to see how their investment will strengthen your business beyond immediate funding,” she says. “Be prepared to show exactly how the investment will be used, how it will increase revenue, and what returns they can expect.”
Whether you decide to finance the expansion yourself or involve an investor, Jade’s advice to aspiring multi-location business owners remains the same: “By taking a proactive approach to leadership, financial planning, and team management, you can increase the chances of a successful and sustainable expansion.”
Photography:iStock/onurdongel
This article originally appeared in the Issue 01 2025 print issue of Professional Beauty magazine. Read it here.
Read the current issue of our digital magazine here:
- For more news and updates, subscribe to our weekly newsletter
- Follow us on Instagram
- Like us on Facebook
- Join Australia’s largest network of beauty industry professionals on LinkedIn
- Subscribe to our print magazine
Have an idea for a story or want to see a topic covered on our site and in our pages? Get in touch at info@professionalbeauty.com.au.
