Think hairdressers, think entrepreneurs. In a classroom in Hammersmith, Nergish Wadia- Austin is admonishing her students, all hair salon managers, for not putting enough research into their promotions. A former hairdresser with Vidal Sassoon who switched to retailing with Harrods, she runs a course on sales and marketing at L’Oréal’s academy.

“Hairdressing used to be seen as a frivolous business. Now it is much more about making money,” she says emphatically. Her job is to help salon managers to coax the extra pound from their customers. Behind the top stylists and their fantastic sculptured creations lies a nuts-and-bolts service and retail business, struggling with high rents, rising wages, fast-moving trends and cut-throat competition.

The route to the extra dollar is to improve the experience, a strategy pioneered by Toni & Guy, which entertains its customers with its own in-house TV channel. “Fifteen years ago we didn’t have air-conditioning,” recalls Toni Mascolo, the chain’s founder. Today, affluent, urbanised women want their hour of pampering in a beautiful environment. A successful salon needs designer lighting, attractive furnishings, a top-notch sound system and computerised appointments software that remembers customers’ birthdays.

Selling hair products is another big money-spinner and the margins on a bottle of gel or shampoo are very high, but retail sales rarely account for more than 10 per cent of turnover. A typical 20-seat salon would cost £180,000 and would need to take some £50,000 to £60,000 a month to justify the investment, says Mr Mascolo, more to make a good profit.

Wages are rising. Trainee hairdressers might have to live on minimum wage plus commission, but fully established salon managers will earn £30,000-£35,000 and top stylists and teachers will earn £40,000-£50,000.

Rents are rising, too, and to Mr Mascolo’s chagrin his firm is part of the problem. “When we move into an area, the rents go up,” he said.

The biggest single challenge facing hairdressing is getting good staff, says L’Oréal. The multinational is sponsoring a salon management course at Greenwich University in London and Martin Smith of L’Oréal’s Professional Products division reckons that hairdressing is beginning to compete with alternative careers.

Tracy Webb, a salon owner in Colchester, recalls a typical young woman’s first job. “I was a Saturday girl at 14. I loved it, I got paid to talk to people.”

Today hairdressing needs to prise young people away from the lure of university degrees.

It’s an unusual, literally hands-on business for people with artistry, a keen eye for fashion, salesmanship and a nose for profit. And it’s still all about talking to people.