Launching and managing a salon business is a dream of many beauty passionate. Are you dreaming of opening a nail bar, beauty salon, hair salon, or day spa? Do you also dream of setting up your business or start-up by opening a salon?
A salon business can be a steady and profitable business if everything is planned from the very beginning. You need a strong business plan for any start-up as such. A salon being an unusual career field, it needs an extra amount of planning and groundwork for starting a salon business.
From time immemorial girls have given importance to beauty and placed beauty as their source of happiness. A beautician is someone whose job is to give people beauty treatment. They are also called beauty therapists. Perhaps the only reason being they are as important as therapists. A beautician can offer treatments in skin care, facial, hair care, nail, makeup essentials, etc. They specialize in making their client’s appearance better. There are different types of beauticians like makeup artists, cosmetologists (experts in facial treatments), hairstylists, salon sales consultant (selling beauty products and cosmetics). Considering all the stated facts, opening a salon business can indeed make you rich and improve your lifestyle.
What are the basic requirements to open a salon?
- One must have a solid business plan before opening a salon. Management, business skills, beauty requirements must be met.
- Finding a niche for your salon helps to attract a loyal fan base for your business.
- A customer/client in your salon needs to feel welcomed, comfortable, and must be able to talk to the salon stylist or professionals freely. There should be an aura of hospitality, care, and well-being.
- One must hold a degree in any of beauty fields like the bachelors in various streams of beauty and cosmetics.
- Only after experience, you are allowed to open a salon of your own.
- A good culture is a must and understanding the clients is as important as any of the beauty tools. If you do not wish to understand the clients, you may come out to seem rude and the clients may not refer to your salon.
So, when it comes to Salon business, it is a safe bet but it can be challenging as there are so many processes you need to go through before opening a salon.
Here are a few tips to open a salon:
- Before opening a salon create a business plan and look for monetary expenditure. The cost of opening a salon can be as high as $62,000 for a basic set up, $500,000, and even more. Your one-time investment can only be a success in this beauty field as a beauty salon never goes down even in case of an economic crisis.
- License and certificate are the most common requirement for a salon. Without them, you cannot open the salon. You will need a business license and permit near your area to set up the salon or parlour. If you also plan on selling beauty products such as nail paint, hair care, skincare products, you will also need a seller’s license. It allows you to sell your products or services and collect sales tax and revenue.
- And before all the credentials one must look for a real estate agency to find a place for setting up his/her salon. You can either rent or buy a place. If it is a start-up, it is advisable to rent a place rather than buy. But if you are investing in large amounts (one-time investment), buying a piece of land also works. Renting a place needs a monthly lease to be paid without fail.
Consider getting a salon suite. A salon suite is essentially a rental space, often on a month-to-month basis for such independent entrepreneurs and salon professionals effectively cutting down the large capital investment, opening a brand-new salon.
The salon suites concept eliminates management issues and facilitates high start-up costs.
- The next step is hiring other salon stylists and employees to work for your salon. Set wages and payroll for the professionals and the benefits you choose to offer to them.
- Investment is a long-time thing because you not only invest in the real estate and license but also the salon equipment. It is essential to buy sophisticated salon equipment to attract clients/customers. The salon also needs other essentials like branded and trusted products to be used on the customers, reception, telephone, computer, and so on.
- Insurance: The cost of a beauty salon insurance is based on various factors like the coverage, staff size, etc. For example, a salon with three hairdressers on staff will have a different cost to insure than a larger number of hairdressers.
When it comes to choosing insurance, the cost is always a factor but choosing a cheap hair and beauty salon may not cover all your needs. It is necessary to get insurance because it protects your salon from any mishap or damage.
Salons are traditionally considered as a risky business. For this reason, banks do not approve of loans. In such a case, SBA (small business administration) loans are handy. Any start-up business can use such loans to start their business with low investment. The lenders don’t exactly provide loans to small businesses but set guidelines made by its partnering lenders which makes it easier for small businesses to take a loan.
Equipment financing is essential for salons because a good salon needs chairs, sinks, dryers, straighteners, etc. while starting it can be difficult to buy all of it. Consider leasing the equipment at the beginning.
Whether you are buying a building or leasing a place, the location of the salon is the most important factor. Look for densely populated areas of a city like the residential area to set up the salon. This will improve your customer base. Hire a designer. Make you salon look smart and an attractive place for the customers. Customers are god. Treat them with respect and care. Listen to their needs.
Opening a salon is a bold move and to succeed, you must plan everything and must be willing to adapt to new technologies and strategies for your business. Prefer ongoing trends at your salon. Spend a lot of time and energy and you will succeed.