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Should You Tell Your Salon Staff That You’re Selling the Business?
Selling a salon can be an emotional and complex process. One of the most debated topics for salon owners considering a sale is whether to inform their staff about the decision.
Hi there. My name is Susan Wos, and I am the founder of Salonspa Connection, the #1 company for beauty industry business acquisitions. We help owners prepare to exit salon ownership and find the best buyers for their salons. Here is a recap of a discussion with Rob Hinds, on telling your salon staff that you’re selling the business before you list.
While it might seem risky to disclose this information, being transparent can yield surprising benefits when handled correctly. Let’s explore this controversial topic and uncover why honesty might just be the best policy in your situation.
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The Power of Transparency in the Beauty Industry: Do This BEFORE You Sell
In today’s workplace culture, transparency, honesty, and clear communication are more valued than ever—sometimes even more than pay or benefits. Employees and booth renters alike want to work with people they trust, and they respect leadership that prioritizes openness.
While the idea of sharing the news of a potential sale may feel uncomfortable, it can ultimately foster trust and strengthen relationships within your team.
Take it from Rob Hinds, a seasoned business coach and consultant who has guided salon owners through this exact scenario. Rob has seen salon owners announce the sale of their businesses to their staff without losing a single team member.
The secret? Preparation, approach, and authenticity.
Why Owners Fear Transparency… and Why They Shouldn’t
It’s natural to worry about how your team will react to the news. Common fears include:
Staff leaving immediately: Many owners assume their team will jump ship the moment they hear about a sale. However, most people won’t make rash decisions if they feel secure and respected.
Hurt feelings: Some owners worry they’ll disappoint their team. But keeping secrets can backfire, leading to feelings of betrayal or resentment.
Business disruption: Concerns about losing productivity or focus are valid but can be mitigated with a clear communication plan.
In reality, people leave jobs for all kinds of reasons, and a well-handled transition can actually encourage team members to stay and give the new owner a chance.
When Telling the Salon Staff You are Selling Works Best
Not every salon is ready for this level of openness, and that’s okay. Transparency works best in businesses with:
A culture of honesty and open communication: If you’ve built a salon environment where your team feels psychologically safe and valued, they’ll likely respond positively to the news.
Strong relationships: If you’ve cultivated trust with your staff, they’ll appreciate your honesty and feel more invested in the salon’s future.
If you’re not sure whether your business is ready, consider starting small. Engage in conversations about your long-term plans and gauge your team’s reactions. This can help you assess how a future announcement might be received.
The Benefits of Being Open About Selling With Your Salon Team
Being upfront about the sale can benefit both you and the buyer:
For the Seller (You):
You can focus on your exit strategy without the stress of secrecy.
Your team’s cooperation can ensure a smoother transition for the new owner.
For the Buyer:
Buyers often appreciate stepping into a situation where the staff is already informed and supportive.
It reduces uncertainty, as most team members who plan to leave would have already done so before the sale is finalized.
Handling Negative Reactions
It’s possible that some team members may express concerns or even decide to leave. Here’s how to navigate these challenges:
Acknowledge their feelings: Let your team know that their emotions are valid and that you’re there to support them.
Offer reassurance: Explain that you’ll ensure a smooth transition and that you’re committed to their success, whether they stay or choose to explore new opportunities.
Provide resources: Be prepared to offer glowing recommendations, career advice, or even connections to other opportunities if needed.
Time to Tell the Salon Team You are Selling: Preparing for the Announcement
When the time comes to share the news, preparation is key. Here are some tips for making the conversation as positive as possible:
Plan your approach: Decide whether to have a group meeting, individual conversations, or both. Tailor your message to your team’s unique dynamics.
Be transparent but optimistic: Share why you’re selling and emphasize the opportunities the transition brings for everyone involved.
Invite questions: Allow your team to express their concerns and answer their questions honestly.
Stay available: Let your staff know you’re there to support them throughout the process.
The Gift of Openness for Buyers and Sellers
When a salon’s team knows about the sale ahead of time, it’s often seen as a gift by buyers. It provides clarity and a sense of security, reducing the fear of staff departures.
As Rob puts it, “If a team was going to leave, they were already planning to do so.” For those who stay, the transparency fosters trust and collaboration, setting the stage for a successful transition.
Final Thoughts on Openly Selling a Salon
While telling your staff about the sale of your salon may feel daunting, it can lead to better outcomes for everyone involved. By being honest, transparent, and prepared, you’ll not only ease your team’s concerns but also position your business for a smoother transition to new ownership.
And remember, every salon is different. If you need guidance tailored to your specific situation, don’t hesitate to reach out for professional advice.
If you’re considering selling a salon, spa or barber business and want expert help, contact us today. Our team is here to support you through every step of the process. Transparency isn’t just a strategy—it’s a way to ensure your salon’s legacy thrives.
