Hair salon: Dreaming of opening your own beauty salon? Owning your own salon can be a steady source of income and the perfect opportunity to have more independence and be your own boss. To help you turn your salon dream into a reality, we’ve put together a comprehensive guide to starting your own beauty salon that includes everything you need to know to get started.
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1. Choose the right location.
Location is critical to the success of your business. Consider these factors:
- Get into a high-traffic area. Busy streets, malls or spaces next to locations people visit often (such as grocery stores) are ideal.
- Try to have easy access. If parking is a hassle and traffic is thick on the way to your salon, people might not consider it worth the effort.
- Stay away from the competition. Don’t situate yourself directly next to another salon — you’ll cancel each other out. Instead, try to stake out a place where you’ll be the only salon for a few blocks.
Hair salon
2. Take care of any licensing.
Unfortunately, running a business means having to deal with red tape and paperwork.
3. Figure out how much money you need.
Starting a business can cost a lot of money, and most entrepreneurs don’t turn a profit for 3-5 years. Here’s what to consider:
- Can you still support yourself while your business gets up and running? Calculate how much money you need for monthly expenses, how much of a cushion you have in savings, and how much you absolutely must make each month to stay afloat.
- Come up with an operating budget. Calculate how much money you’ll need to run your business every month.Include rent, licensing, training, payroll, supplies and an emergency fund.
- Figure out how much you’ll charge for services. Once you have an operating budget, you’ll know how much money you need to break even each month. To make a profit, though, you’ll need to do more than break even. Estimate how many services (such as hair cuts, colors, manicures, etc.) you might perform in a week and figure out how much they need to cost in order for you to make money.
- Keep in mind that though you need to charge enough to be profitable, you can’t charge too much — or you’ll drive away customers. Try to set a price point that is both fair for your clients and prosperous for you.
- Get an idea of what other salons charge. Browse comparable salons in your area, and take note of what they charge. Your prices should probably be in a similar range.
Hair salon
- Do you need a small business loan? Make an appointment with a loan officer at your local bank or Small Business Association (SBA), and ask him or her to talk you through the process of getting a small business loan. Before you go, write up a quick summary of how you expect your salon to be profitable — whether it’s because you offer a unique service or because there aren’t enough salons in your area.
- Figure out how you’ll pay taxes. Paying taxes as a small business is different than doing so as an individual, so be sure to figure out what you need in advance. To save yourself time and trouble, consider enlisting the help of a CPA while you set up your business.
4. Create a clean and safe atmosphere.
Salons thrive on an environment that is clean, safe and relaxing, where customers can receive prompt and professional service.
- Cleanliness is a particularly important element that can draw clients in again and again. Be sure your towels, foot baths, and other equipments are washed, clean and odor-free.
- Keep your tools sharp and current. Your clients must be able to trust that the products and tools that you use on them are of top-notch quality and safe. You cannot afford to put your clients at risk from infections, as it could damage your reputation.
- Make the atmosphere relaxing. Play soft music, use gentle lighting and keep loud chatter between your employees at a minimum.
5. Offer a wide range of services (optional).
This could give you a distinct advantage over those who offer only one or two types of services.
Many clients prefer to have their hair, nails and face done in one place, instead of going to three different places.
- While you can specialize in one main area (e.g. hair), giving your clients the convenience of a one-stop salon can set your business apart from your competitors.
It is important that your business create and maintain the desirable reputation as a quality hair and salon operation, so that your clients keep returning for maintenance. Try to give them the best possible experience each time, and go out of your way to make them feel valued.
- A salon’s best marketing tool is word-of-mouth. If a client is happy with the results, he or she will come back to your salon; after all, it’s a question of trust. Satisfied clients can then help advertise your business to their friends, family, and colleagues. Word can easily spread about the great look and outstanding personal service that your salon provides.
- Collect contact information from your clients e.g. an email address or cell phone number, and if you have a computerized system you than then easily text or mail them with updates on new products/services, and any special offers you have.
Hair salon
7. More tips
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Why not try holding some sort of opening event?
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Consider providing training classes on a regular basis to your personnel to improve their product knowledge and skills as well as awareness to trends.
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Create monthly contests amongst the staff and offer prizes from free product to a paid day off to a yearly contest that would afford the winner a free vacation.
- This is a beauty business; you’re expected to look your best! Have in your procedures manual what you expect as a minimum in grooming for all staff and set a good example yourself.
- At the beginning you may not be able to pay big salaries to staff, but there are many other things you can do to create a “feel good” factor. Be reasonable about time off and take time to devise a time in lieu give and take system — for example, staff can take time off and then pay it back during busy periods. Have a staff night out every two to three months — a pizza and wine night won’t cost much but creates a real team feeling. Introduce a commission-based system so staff are motivated to grow your clientele. Set up your salary system and holiday system so that staff get paid on time and up to date, and can check their time off entitlements. These are all small things but they make a big difference to staff.
- Buy good equipment and hire able competent employees to work at your salon.
- Make your own products to expand your company.
Hair salon
Conclusion
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You need to be aware of the liabilities that you and your business can be subjected to as a result of accidents and botched procedures (from rashes resulting from improper waxing procedure to damaged hair). Check with your insurance company on policies that can protect you and your business from liability and lawsuits that may arise from customer complaints.
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Have a procedures manual, a good salary system, contracts for staff and make sure you are compliant with your current employment legislation. If you have your paperwork in order then should any dispute arise it will be a lot easier for your to deal with it.