How to start a salon business
Beauty salon: the establishment for the hairdressing, manicuring, or other
cosmetic trement of women Also called beauty salon, beauty shop.
People see beauty, they are constantly lookin to improve what they have or give
themselves a whole new look. They drop by the nearest hiar and beauty salon
to be pamered by the styleist and beauticians to style their tresses, shape their
eyebrows, and clolr their nails.
It’s no wonder that hair and salon business re mains one of the rapidly growing
Starting your own beauty salon business can be a great move whether or not
you are currently working the styling or beauty business. If you are
knowledgeable about the beauty salon business and willing to put in a lot of
long hours and planning and hard work, owning your own beauty salon can be
a very profitable and rewarding experience.
Starting a salon business can be hard but not as hard if u have a business
plan. Creating a business plan can achieve those goals that seem a daunting
and arduous task. Every business needs a business plan and here’s why:
Business plan enables you to know exactly everything you need to do in order
to hit your profit objectives including: targeting specific customer groups,
product pricing, all your costs, sales forecasts and marketing. The amount of
capital you need to start the business depends on the type of quality and choice
of salon design, rent and utility deposits, fixtures, leasehold improvements,
opening inventory, and equipment that you intend to use. Key start up expense
components of a hair salon business are:
Finding a suitable location would be one of your first steps for your beauty
salon. Your ideal location will have a convenient location and lots of foot and
vehicular traffic. It is helpful if there is a large employer located within a
conventient distance. That way you can advertise to their employees. Many
people like to schedule their beauty salon visits over their lunch hour or on
their way home from work. If your beauty salon business is convenient to them,
it will be a big plus. You may want to find some empty space for rent in your
local shopping center. Your local shopping mall may have some empty space
due to a recent store closing. If the space has been empty for awhile, you may
be able to negotiate and excellent rental agreement with a motivated landlord.
After you found the perfect location for your beauty salon you may need to
undertake leasehold improvements to your space based on your interior layout,
design, and pluming requirements. Leasehold improvements are defined as the
construction of new buildings or improvements make to existing strucktures by
the lessee. As the lessee, you will have the right to use these leasehold
improvemtns over the term of the lease, in many states, these improvents ill
revert to the lessor at the expiration of the lease. Moveable equipment of office
furniture that is not attached to the leased property is not considered a
The equipment you buy will depend on the services you offer. Some of the
equipment you need to purchase include washing basin, styling chairs, hair
dryers, supply trolleys, aprons, manicure tables, massage equipment, pedicure
and spa chairs, styling stations, mirrors etc. If you are planning to sell beauty
products you also need to invest in inventory. Contact a beauty salon
equipment suppliers and check if you can get a good deal. You can choose to
spend anywhere form $2,000 to $30,000 for salon equipment alone. Other
start-up expenses may include: cash register, merchant account fees (to accept
credit cards), business license fees and other required documentation ( varies
by state), utilityes, insurance, professional fees ( accountant, lowyer, etc.),
signage costs, imitial marketing and advertising expences. Depending on the
range of services you offer and the overall look and design, you can spend
anywhere form $10,000 for a bare bones operation to $100,000 for a full -
service ourfit to jumpstart you salon business.
You may need to explore financing to open your beauty salon business.
There are many state and federal loan and grant programs available to help new
small businesses. Mae sure you check out all the resources avalible. Make sure
you have sufficient cas on hand before you poen your new beauty salon
business. It generally takes a new beauty salon business a minimum of six
months to a year to become cash flow profitable. Make sure you have sufficient
funding to carry you through the lean times. Doin this kind of advance
planning will help ensure your beauty salon survives long enough to thrive.
As with all businesses, you will need to consider the tax and accounting
needs of your new beauty salon. Be sure to make an appointment with a good
tax attorney or certified public accountant to discuss your new salon business
and any tax considerations you may have. Your tax professional can help you
with such things as how to prepare your taxes and wheather or not to
incorporate your salon.
Here are some of the coomon mistakes business owners make when
completing their business plans: mistake 1: incomplete financials, this is
perha[ps the most important section of any business plan. Leanders want to
know when they will have their loans repaid and assess the risk. You need to
produce financial state ments that accountants will endorse with our question.
Mistake 2: over ambitious projections, everyone thinks their business will grow
in the first 12 months but in reality this is rarly the cas. Your business plan
must show a realistic path to profitablility that proves your actual revenues and
profits are comparable with your written plan. Mistake 3: leaving something
out, every business plan follows a certain structure. Lenders and professional
readers generally look for 3 or 4 aspects of your plan. You need to ensure you
have these elements correctly written in the right area of your business plan.
Mistake 4: incorrect format, your readers do not expect 100 page tomb nor 1
page overview. Getting this fundamental are a wrong will show your readers just
how inexpwerienced you are. Mistake 5: poor understanding of marketing,
communicationg your produckts to your prospects is a critical success factor
for every business owner. You need to show uou understand your target
customers, what their needs are, why they will buy from you and how you will
communicate with them. Mistake 6: an inability to sell your plan, having an
accountant prepare your plan may save you a headache, but it is you who needs
to lender or investors every question they have about your plan. You need to
understand everything that is written in your plan.
Now that you have your business going you need to hire employees. You will
want to make sure any employees you hire for your beauty salon business have
all the necessary training, licenses and certification. It is your responsibility as
the salon owner to ensure theat your personnel are adequately trained and
understand each procedure offered. You need to be aware of the liablilites that
you and your business can be subjected to a result of accidents and botched
procedures (from rashes resulting from imporober waxing procedures to
damaged hair). Check with your insurance company to policies that can be
protect you and your business form liability to lawsuits that way arise form
Save on personnel costs it will be one of the biggest recurring expenses of a
hair and salon business. To save on expenses, you can arrange for everyone but
the receptionist to be contractual workers to be paid a sliding commission scale
based on the amount of revenue created. A typical full-service hiar and salon
business offers all or any of the following services: Hair, haircuts, trims and
style, highlights/foils & weaving, hair & scalp treatments, relaxers, perms,
colors, shampoo and conditioning, curling, reconstructing, permanent wacing.
Nails: manicuring, pedicurs, polish, sculptured nails, nail repair, hand
conditioning treatments. Skin care: facials, body waxing, massage.
Sale of professional hair/beauty producks: many slaon businesses also offer a
wide range of ahir and beauty products in proder to provide everything a
customer needs in one covenient location. Your may choose to sell top-of-the-
line beauty products shampoo, daily and deep tre atment condtioners,
hairstyling products such as mousse, gel, pmades, among others; and other
specialty hair products. Retailing professional hair produckts is an important
strategy for retaining clients and making additional profits.