Running a successful hair salon is about more than just having sufficient training and skill as a stylist. A salon is a business. It takes a lot of work and a solid plan to get a new one up and running. Let’s talk about how to get started.
Step One: Create a Business Plan
The first step for anyone who wants to open a new business is to create a comprehensive business plan. This document should include nine sections:
- Executive summary.
- Company description.
- Market analysis.
- Organization and management.
- Services and products.
- Marketing and sales.
- Funding request.
- Financial projections.
- Appendix.
Remember that the document will be read by lenders, investors, and others who will have a stake in the business. Take it seriously and be as comprehensive as possible.
Step Two: Secure a Location
Choose a location for the salon that is zoned for the right type of business and has enough space to accommodate work stations, storage, a client waiting area, and a break room. Most successful salons are at least 1,000 sq ft large and are conveniently located near public transportation or easy parking.
Step Three: Obtain Licenses and Permits
While salon owners don’t need cosmetology licenses, anyone who plans to perform salon services needs one. While it’s up to the stylists to get licensed as cosmetologists, salon owners must worry about other details like business licenses, certificates of occupancy, and building permits.
Step Four: Secure Financing
It takes a significant amount of money to get a new salon up and running. Salon owners should plan to secure enough financing to cover the first six months of operating expenses before opening the business. That includes everything from equipment and ProStylingTools beauty supplies to rent and employee pay. Use the business plan established during step one to secure financing from lenders or investors.
Step Five: Set Prices
Before opening their doors, salon owners must determine which services to offer and at what prices. Remember that high prices can limit customer range, while low prices can restrict profits. It’s best to aim for somewhere in the middle. Be sure to consider factors like costs, ideal profit margins, and local competition when determining prices for salon services, and don’t be scared to make changes as necessary.
Step Six: Insure the Salon
Salon owners need small business insurance to protect themselves. Most salon owners purchase general liability insurance to cover property damage and injuries, personal liability insurance to cover employee errors, and commercial property insurance to cover the physical space, equipment, tools, and products. Larger companies may also need to provide employee health and workers’ compensation insurance.
Step Seven: Purchase Equipment
Next, get ready for the big opening by purchasing all the necessary equipment and supplies. Depending on what services the salon will provide, they might include:
- Stylist stations.
- Carts and trolleys.
- Mirrors.
- A reception desk.
- Furniture for the reception area.
- Shampoo chairs and bowls.
- Cabinets.
- Towels.
- Light fixtures.
- Manicure stations.
- Makeup stations.
Plan to purchase the equipment two to three months before opening day.
Step Eight: Hire Stylists
Finding skilled employees is one of the hardest parts of running any business. To find trained and talented stylists, try attending trade shows, networking events, and workshops. Recent graduates are also a good labor pool.
Step Nine: Plan for Opening Day
Now that all the pieces are in place, salon owners can focus on spreading the word about the new business to make a splash on opening day. Establish a website and social media presence, consider email marketing, advertise in local print publications, and don’t forget to exploit in-person networking opportunities.