Get out there and start making your dream living room a reality!
Spas and beauty salons are becoming increasingly popular as the need for wellness services increases. Growing urbanization and changing lifestyle are the major growth factors in the industry. If we look at the numbers, the hair salon industry is expected to grow at a compound annual growth rate (CAGR) of 6%, reaching over US$217.25 billion by 2026.
If you’re thinking of opening your own salon, now is a great time to hit the road. But before diving headfirst into the world of hair and beauty, there are some things you need to take care of first to start a successful hair salon business. From choosing the right location to designing an effective business plan, here are five tips to help your salon run smoothly from day one and avoid common pitfalls so you’re ready to go when your salon doors open. open for the first time!
1. Create a business plan
A business plan is the most important prerequisite for any type of business. Start with the following areas:
- the objectives of your salon
- target customer groups
- your services and rates
- marketing strategies
- funds needed
- financial plan
- your competitors
- your unique selling point (USP)
Once you have noted these points, you can move on to the next step to finalize the location of your living room.
2. Choose the right location
Now that you have a business plan in hand, it’s time to find the perfect location for your salon. The ideal location for your salon will depend on several factors, such as cost, size, proximity to your competitors, and local permits and licenses. Other than that, consider details like foot traffic, parking, and demographics. Considering the pros and cons of different locations will help you finalize the best one for your business.
3. Obtain necessary licenses and permits
Before opening your business, you will need to obtain all required licenses and permits from your local government. While specific trade show and general business licensing requirements depend on your location, these rules are consistent (in the US):
- All businesses require a general permit, which includes a Federal Employer Identification Number (EIN) for tax purposes and a Retail Vendor’s License to sell hair and skincare products.
- You must obtain a cosmetology or esthetician license issued by the state government prior to the start of the salon. The overall licensing fee for a lounge is approximately $12,000.
- You need insurance that covers general liability, commercial property, workers’ compensation and professional liability insurance.
- Buying or renting a property will require a certificate of occupancy. This document will contain information such as the use of the rented or acquired space, whether the place is suitable for renting and whether the installation complies with all applicable building regulations.
Be sure to do your research ahead of time to have everything in order and at the lowest cost before opening day.
4. Find the right suppliers for your equipment and products
You’ll need to partner with vendors who can provide the goods and equipment you’ll need to run your salons, such as hair dryers, straighteners, shampoos, and cosmetics. Before choosing your suppliers, consider these points:
- the distance and ease of access between the supplier’s warehouse and your salon;
- whether it is a reputable supplier who will deliver the exact things or services on the day and time scheduled, according to your specifications;
- if you are negotiating a long-term contract, look for stability (eg how long the supplier has been in the industry and their reputation);
- spend time comparing prices and services to find the best deals for your business.
5. Hire the right team
Finally, you will need to assemble a competent team of experienced members who share your vision for the salon and can provide excellent service to your customers. Hiring the right team is critical to the success of any business, so take your time finding the perfect person for each role (eg receptionists, hairstylists, makeup artists and nail technicians).
To find the best stylists, ask for recommendations from people you trust. You can even use websites to hire freelancers before onboarding them full-time, if there is a shortage of money. Once you have a few names, ask them to send in their portfolios to get an idea of their work. Then schedule a call or meeting with each of the candidates to get to know them better and see if they would be a good fit for your salon.
Opening a salon is a big undertaking, but if you’re prepared and have done your research, it can be a rewarding experience. With these five things taken care of, you’ll be well on your way to opening a salon that will thrive for years to come. So what are you waiting for? Get out there and start making your dream living room a reality!
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