Table of Contents
- A hair salon can be a steady, profitable business, but before you open one, you need a strong business plan and preparation.
- Finding a niche for your salon helps you attract a loyal client base.
- The most important things a salon needs to succeed are a good culture, knowledgeable employees and an understanding of what its services are worth.
When it comes to owning a commercial enterprise, a hair salon is a pretty safe bet – the smasher diligence is valued at $ 532 billion per year. Beauty is besides a firm business, frequently remaining unaffected during economic recessions. But even if you have the style skills, launching your own business can be a challenge process that requires patience and know-how. The cost of opening your own salon is around $ 62,000 for a basic setup, but it can go up to $ 500,000 or even more. No matter how a lot you invest in your new business, you ’ ll lack to do everything you can to ensure your salon ’ second success .
The cost of opening a salon
Before mapping out your finances and securing fund, you ’ ll want to consider what, precisely, you need funding for. here are some common salon setup costs for aspiring owners :
- Licenses and permits: To open a salon, you’ll need a business license and any permits required in your area. If you plan on selling products, you’ll also need a seller’s permit.
- Real estate: You’ll have to find a place to either rent or buy. If you choose to pay a monthly lease, you’ll likely have to provide a security deposit upfront.
- Payroll: This involves salaries or wages for the employees you hire, and all the associated benefits you choose to offer.
- Salon equipment: A salon requires a ton of equipment, like beauty supplies, sinks, chairs and hair dryers. You may also need a POS system, computer, business phone system and more.
- Inventory: If you plan to sell cosmetics or other products, you’ll want to stock up on your inventory before opening.
- Insurance: To legally cover your business, you’ll want to set aside money for a decent insurance plan.
These are barely some of the many costs of opening a salon. Keep a checklist of possible salon expenses so you know what to account for when acquiring fund.
Financing for a salon
Salons are often seen as bad businesses, and many banks are hesitant to invest. however, there are many alternatives to traditional loans. here are some popular finance options for salons .
With broken rates and fast payback periods, SBA loans are arrant for minor startups. however, these loans are relatively competitive, so you ’ ll need a impregnable credit score to qualify. besides, if you need immediate fund, you ’ ll want to look elsewhere .
Microloans are much easier to attain than traditional SBA loans, because you don ’ t need an expansive credit rating history or meter in business. SBA microloans can be up to $ 50,000. just make certain you have a hearty business plan in place before trying to secure your loan .
alternate lenders tend to be much more accessible ( and immediate ) than other sources of capital. If you need quick money, you might consider a term loanword, asset-based lend, credit card or business pipeline of credit rating .
You need a decent amount of equipment to run a salon, like chairs, sinks and hair dryers. When you ’ re starting out, it can be difficult to afford all these purchases. With equipment finance, you ’ ll receive a loan to front these payments, so you can start off on the justly foot without breaking the bank. rather than buying all-new equipment, consider leasing it to reduce the upfront cost. Some lenders besides offer equipment finance, which uses the equipment as collateral ; you would then make regular payments until the value of the equipment is repaid with interest .
How to develop a salon marketing plan
marketing is an essential process for every business, but certain tactics work better for some businesses than others. When opening a local salon, you ’ ll want to focus on becoming a contribution of your community. Since you ’ re a brick-and-mortar clientele ( i.e., you operate out of a forcible location ), building your local anesthetic follow is all-important for you to attract and retain patriotic clients. Salon market requires proficiency and consistency. here are some tips for marketing your salon :
- List yourself in online directories. To show up in digital searches, you’ll have to make sure your business is listed in online directories.
- Manage online reviews. Consumers tend to trust online ratings and reviews to vet local businesses. It’s important to address every review you receive – especially the bad ones.
- Partner with local small businesses. Partnering with another business in your community will help you broaden your reach and build a reputation for your brand in the area. Host events or coordinate deals with your partner businesses to offer your customers an exclusive experience.
- Offer referral discounts. If an existing customer recruits another client to your salon, you should reward the recruiter with some sort of discount. This will encourage people to spread the word about your business.
- Create loyalty incentives. Loyal customers deserve special treatment. To show your clients you appreciate them, create incentives like discounts, punch cards and special promotions.
- Utilize social media. Your social media is a place for customers to get to know you on a more personal level. Connect with your community by following other small businesses in the area, engaging with your target market and sharing behind-the-scenes content (like before and after photos of clients’ haircuts) to build your credibility and cultivate brand awareness.
Opening a salon
Check out these 10 technical tips to start off your salon on the proper foot .
1. Create a salon business plan.
Writing a business plan should be your first footprint when starting any business. It provides you with a acquit aim, outlines how you will achieve that objective, and gives you a good theme of what you need to do to be successful. [Read related article: Guide to Creating a Business Plan With Template ] “ A occupation plan is key to starting a salon, ” said Ali Ryan, owner of The Dry House. “ The design offers a road map for salon owners to follow and helps entrepreneurs consider all areas of the occupation. A business plan makes certain you set up a measured for success and consider the financials before you invest huge amounts of fourth dimension and money in a new salon. ” Make surely you have a good understand of the existing salon grocery store in your area, including how big it is, if it is growing and the trends. This will help you to plan precisely how you will compete against early salons. You should besides have a strong mind of your target hearing, said Michelle Lee, co-owner and victor couturier of Salon Eva Michelle. “ Think about what kind of salon you want to open [ and ] what culture you want. ”
2. Research your local laws and regulations.
Laws and regulations vary by where you live and what type of salon you are opening. For example, a salon that strictly provides haircloth services will require different licenses from a salon that besides offers facials or massages. “ Do your inquiry, ” said Shanell Jett, owner and hairdresser at Jettset Mobile Studio. “ see that you are complying with the state laws and regulations. If you have to make some adjustments to your design because of regulations and laws, do so early so that you can avoid potentially having to stop your operation later or [ having to pay ] a ticket. ” These are some of the common licenses, regulations and permits required for salons :
- Salon license
- Cosmetology license(s)
- Employer Identification Number (EIN)
- Building permit
- OSHA requirements
3. Find a way to make your salon stand out.
“ With salons on every corner, even in little towns, entering into the commercialize with a specialization or service recess can dramatically increase buzz and press about your open, ” said Pamela Jeschonek, owner of Everyday Esthetics Eyebrow Studio. Think about what makes your salon alone. Is it the services you offer ? Your attentive staff ? Your custom-make experiences ? Whatever it may be, try to make it a focal point of your identity and grow your business from there. In other words, find your niche. Growing your business in a niche market is much easier than trying to succeed in a boastfully, general commercialize.
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A recess market gives you more security against failure and a prospect to find out what works well ( and what doesn ’ deoxythymidine monophosphate ) for your business by allowing you to interact more close with your customers. “ evening if you do offer many services, promoting a recess or peculiarity service not only will help you attract a very loyal client base, but will immediately lend credibility to your salon as the experts in your recess space, ” said Jeschonek .
4. Talk to distributors.
To obtain products for your salon – such as chairs, mirrors, washing and drying stations, shampoo, conditioner, pins, and brushes – you will need to contact a distributor. You can find local, sweeping or national distributors with local agents. For larger items, like chairs and dryers, you will need to work with a big wholesale distributor like Belvedere Maletti or Takara Belmont. You can purchase smaller items from a local distributor or immediately from a manufacturer, like Paul Mitchell or Estée Lauder. When you begin your distributor research, remember to shop cautiously and consider every expectation. Look at price points and the customer confirm ( like advice or consulting ) different distributors offer, and ask if they offer any deals or perks .
5. Develop a solid client base.
As a salon owner, you should place your clients and their experience at the top of your precedence tilt. This will create return customers who, over clock, will form a dependable customer free-base. “ My No. 1 tap for aspiring entrepreneurs before they open up a salon is to have a number of professional clients of your own that will cover your operating expense, ” said speaker and entrepreneur Sandra LaMorgese. “ With a solid customer base of your own, you ’ ll be in a better position to call the shots. ”
6. Choose the right location to open your salon.
Whether you buy a construct or rent a retail space, your location is one of the biggest expenses of opening a salon, and there are many factors to consider when making this decision. It should be in a well-populated area and well accessible by car or populace exile. besides make certain you are far adequate away from competitors that offer the lapp services as your salon. “ Secure a solid localization with batch of park, ” said Jim Salmon, frailty president of clientele services at Navy Federal Credit Union. “ If you make it convenient for clients to visit your salon, you ’ ll have more customers, which in turn means more tax income to pay off your initial loan and to put toward growth expenses. ”
7. Hire a designer.
If you have the fiscal means, hiring a graphic designer to help you create your salon can reduce stress and ensure an appeal, running workspace. A designer can help you determine an overall look and feel that is consistent with the image you want to project. “ Work [ ing ] with a graphic designer or distance planner [ can ] ensure you are maximizing your gross electric potential for the space, ” said Miriam Deckert, marketing director at SalonSmart. “ If construction exercise is needed, try to negotiate those costs in your lease agreement. ” Deckert recommends taking advantage of space in the center of the salon with double-sided stations or couches for waiting guests. You should know the dimensions of each area before you shop for equipment or furniture .
8. Focus on your staff.
Your salon is lone a good as the people you employ to help run it. Because smasher is such a personal diligence, it is full of life to retain a skilled, knowing and friendly staff. “ I would advise any new salons to invest time in the train and motivation of the staff, ” said Jennifer Quinn, digital commercialize executive at Phorest Salon Software. “ Your salon will be built around your stylists and technicians, [ so ] ensuring they are comfortable with upselling products and early treatments across the mark is the dispute between achiever and failure. ” Taking the time to train your employees thoroughly will help your commercial enterprise run more smoothly and maintain a professional reputation. “ Being passionate about your staff ’ mho growth is important, ” said Lee. “ Be a drawing card, not a knob. ”
9. Think about your clients.
“ Create a vision for how you want clients to feel, what you want them to experience and what adjectives clients will use when describing their have, ” said Samira Far, founder of Bellacures. “ This will help in developing a look, feel and atmosphere. ” As you start out, accumulate feedback from your clients about what they like and don ’ triiodothyronine like about your salon. Outline in your business plan how you intend to meet clients ’ needs and wants a much as potential and show your customers that you value and act on their input.
10. Charge what you’re worth.
It can be unmanageable to decide how much to charge for your services, peculiarly when you are good starting out with your own business. After you do some research and get a approximate range idea of what person with your horizontal surface of prepare could charge, you should cautiously consider your own skills and train and determine a monetary value based on that – not what others in your area are charging. “ You don ’ deoxythymidine monophosphate know anything about them or their skill set, ” said Sheryl Miller, owner of Fringe Hair Art. “ I charged $ 60 a haircut when I first opened in a town where the most expensive haircut was $ 38. I had 25 years of aim and education to get hera. Some people thought I was brainsick and wouldn ’ deoxythymidine monophosphate beget it. not alone did I get it, [ but ] I have since raised [ prices ] to $ 70 and keep charge. If you are great at what you do, people will pay for it. ” Kiely Kuligowski and Brittney Morgan contributed to the reporting and writing in this article. Source interviews were conducted for a previous version of this article.