Would you like to know more about opening a hair salon? It is a great idea indeed especially when 8 to 80, the people of all age group love to visit hair salons to have stylish haircuts, do straightening or color applications. These days, having a great hairstyle is somewhat essential for both men and women. Research also finds that more men dye their hair in recent times than ever before. The Bureau of Labor Statistics also shows that there are 1 million plus barber shops and salons in the US generating annual sales of $46 billion.
The hair salon industry is thriving at the moment and it will continue to grow for many years to come. The Bureau predicts a 3.2% increment in revenue sharing for this industry. If you like working with hair and want to open your own hair salon, then read on. I am trying to cover all the important steps to set up your own hair salon business in detail.
Step 1: Equip Yourself with Skills
The first step to opening a hair salon is to equip with all of the essential skills. The fact that you are interested in a hair salon means you should already have an interest in working with hair. If you are not yet a qualified hairdresser, then now is the time to seek a hair & skin institute or community college in your area and to sign up for a course. You should ensure you get taught the latest trends and techniques when it comes to cutting hair, styling hair, coloring hair and any other aspects that associate with hair. Once you have the right knowledge and received an adequate amount of training, you should be ready to move on to the next step.
Step 2: Prepare a Business Plan
It is always a good idea to compile a business plan before starting a new business. This will help to avoid rushing into things and will also ensure everything is done the proper, planned way. In order to prepare a business plan, you will need to make a few essential decisions that will have a direct impact on how you open and manage your hair salon business.
- Do you want to start a brand new salon of your own, buy an established salon or go with a franchise option?
- How do you want to operate your business? Do you want to use a chair-rental or commission model?
- Are you going to partner up with other successful salons or any product line?
Once you have made these important decisions, the process of compiling a professional business plan will be easier. The exact structure of your business plan will vary based on the decisions you make about your business model, but should essentially include:
- Branding information such as the name of the salon
- Business model you have chosen to use
- Whether or not you are planning to partner up with someone / a company
- Potential locations for your business
- Financial requirements for starting out
- Financial forecast based on extensive research
- Marketing strategy that will assist with gaining clients
Each of these sections should go into detail. Be sure to include required equipment and products in the financial requirements section.
Step 3: Capital Requirement
A hair salon will cost you money. According to Evergreen Beauty College, a hair salon start-up cost may vary from $75 to $300 per square foot depending on the salon location, covered space and the targeted market. It’s an investment and if you do not have a large sum laying around in a savings account, then you will need to get financing from an external source. It is important to note that this type of business takes a while before it is established, which means you will require capital for both startup and for the first few months of operation. There are a number of ways you can gain the initial capital, but you should be wary that it is usually very hard for a new business in this industry to be approved for a business loan. Not to fear, here are some excellent ways you can still gain the funding:
- If you have friends or family with large investments, see if they would be interested to invest in your business.
- If you have a savings account with a large sum of money, withdraw your savings and use it to invest in your business.
- Apply for a personal loan instead of a business loan at your local bank. This option would only be viable if you have a good credit score.
- Use a crowd funding loan marketplace and see if you can find potential funding sources for your business through this method.
- Contact investors and see if they are interested in investing in your business. Be sure to send along a copy of your business plan and tell them what they will gain in return.
Step 4: Select a Convenient Location
The salon location and the covered up space are vital for building up a successful hair salon business. It should be located in such a place where people can easily reach and also sufficient parking space is available. If you choose a visible and convenient location, your business will thrive. Try to find a location that is near other popular stores, fashion boutiques or restaurants. Opt for approximately 1,200 square feet. You also need to consider what is included with the lease and whether additional electrical wiring will be needed. It’s a good idea to hire a contractor to review the location, as well as the lease. This will help you determine the amount of expenses you will have with the building you want to lease.
Step 4: Permits and Licenses
Each state has its own requirements, so this step will defer from one location to another. You will most likely need an array of permits and licenses before you can start the process of opening a hair salon. The best way to tackle this step is to contact local authorities and to inquire about the requirements for starting your salon. Alternatively, you can contact a lawyer that specializes in business ventures for assistance with this process.
Step 5: Preparation
Once you have obtained funding, have a location and have the required licenses and permits, it is time to give it a start. During this step, you will need to purchase numerous equipment that are essential for a hair salon business. Phones, mirrors, chairs, washers, dryers and display cases are only a few of the essential requirements for a hair salon. Be sure to purchase all the necessary equipment. You will also need to complete the electrical wiring and get some to install the washers for you.
Step 6: The Launch
Now that you have everything ready, it is time to launch. If you do not already have other hairdressers to join your team, advertise in the jobs section of local newspapers and on the internet to find a couple of hairdressers to join your salon. Once you have a team ready, you can launch your business.
The next part of operating a successful hair salon is to properly promote your business. There are numerous ways to promote this kind of business. Remember that everyone needs a haircut at some point in their lives, so your target market will basically be everyone around you. Many salons find that promoting opening specials helps them build an initial client base from where they can grow. Some ways you can promote your new hair salon business include:
- Advertise in local newspapers, brochures and magazines
- Advertise in the local section of online classified websites
- Use banners and outdoor advertising material to promote services directly outside your business location
- Print flyers and distribute them wherever your target audience hangs out
- Print posters and put them up on local notice boards
- Start a website and use an advertising campaign from Google AdWords to find new clients on the internet
- Add your business to Google Places and other directories so people in your area can easily find you
These are only a few ideas that can help with the promotion of your business. It is important to use your own creativity to come up with unique ideas that will help you gain more clients.
With the hair salon industry growing year after and year, many people are opting for their own hair salon business. This is a great way to use your creativity to make money. While the initial capital requirements might be on the expensive side, the revenue of this business model is usually very lucrative and can provide you with a substantial monthly income.