Starting a hair salon business can be an excellent business choice if you are a licensed cosmetologist or will employ qualified professionals. Having a passion for hair styling and for people is critical to doing well in this business.
Before Starting a Hair Salon Business
Before you plan to start a hair salon business, consider your options. You may want to open a local shop from scratch. However, the competition in the surrounding area can be extensive and limiting. Another option some may wish to consider is to invest in an already established franchise. Great Clips and Sports Clips are examples of a franchise investment opportunities. For those who plan to start their own company, there are a few things to keep in mind prior to opening your doors.
- Conduct Research: At least some research is necessary to determine who the competition is and how prevalent hair salons are within the area you hope to open in. If there is competition, determine what your hair salon will offer that is unique and will help it to stand out.
- Estimate Expenses: If you are starting your own hair salon, you will need equipment and product. You will need to invest in chairs, wash sinks, laundry equipment and much more. Estimating the cost of these products, as well as the purchase or rental costs for the facility, is critical. If you will need additional funding to help you to pay for these costs, determine where those funds will come from.
- Licensing: Anyone working within a hair salon, doing hair, will need to have a cosmetology license, which you can get from the state after passing exams and meeting other qualifications. As a business owner, you may also need to have a management license in cosmetology as well. Further, most states require any business operating within it to obtain a business license in advance. Your local chamber of commerce can help you to get these needs underway.
- Determine Services: What services will the salon offer? This may include all types of hair styling for women, men and children. It could also include nails, massages, waxing and other day spa features. Determine what you will offer based on the demand in the local area.
- Estimating Costs and Revenue: Before moving forward with your hair salon, the next step is to determine how much it will cost to operate the facility and how much your expected revenue will be. If you are unsure of these number, try to break them down by considering employee compensation, rental costs for the facility, utilities and fees. Determine what your pricing is likely to be for the basic hair cut, which may account for 40 to 60 percent of your business sales or more. How many customers do you need to turn a profit?
Tips for Starting a Successful Hair Salon
There are many ways to start a business, but when your goal is to start a hair salon, you need to focus on your experience and skills. These tips for starting a hair salon business can help you to get the process started.
- The best way to see all facets of what operating a hair salon will be is to work within a salon in a management position. Spend some time building experience managing others, managing the costs of the business and building a reputation.
- Clients often follow their hair stylists from place to place. Welcome those that do, but have a marketing plan in place to draw in other clients. Ask yourself what makes your business unique and then find a way to let the local community know about it.
- A business plan is critical. It outlines every part of your business so that those who will help finance your business understand the details. It is also helpful for business owners as it gives them a clear direction. Create one for your business or have one professionally done.
- Stand out. Hair salons may be readily available in most locations, but those who have top-notch service, great prices and are readily accessible will do the best.