A hair salon can be a stable and profitable business, but you’ll need a good business plan and strategy to get started. Opening any firm, whether it’s a small start-up or a large enterprise, comes with its share of challenges.
Before operating a hair salon or any other type of beauty salon, there are a few things you need to consider, and it can get quite confusing if you’re not experienced. You may be reading this article because you’re not even sure where to start.
The best starting point is to have job experience in the industry and a strong desire to succeed as a business owner. But even if you’re a talented hairstylist, opening your own hair salon can be difficult, so you will need to be patient and do your research.
Write a Business Plan
To start your own business, you need a business plan. It should include cost structure, revenue streams, key resources, supplier plan, critical business relationships, customer segments, and acquisition channels.
You’ll also want to conduct market research to check if there is a demand for another salon in your area and if that demand can generate enough business to support it.
Make sure to include a checklist in your business plan so that you can refer to it as you proceed with the different stages of starting a hair salon:
- Write business plan
- Choose a legal structure for your business
- Choose a name for your business
- Register your business
- Choose a location
- Get a business license
- Get insurance
- Find suppliers
- Buy equipment
- Buy supplies
- Hire and train staff
- Start advertising and operating your hair salon.
The Cost of Opening a Hair Salon
Calculating how much money you’ll need to run your business is an important part of your business plan. Bear in mind that it’ll take at least a few months, if not more than a year, to break even and start making a profit.
Here are a few common hair salon setup costs you’ll need to take into account:
- Licenses and permits – In order to start a hair salon, you’ll need a business license as well as any local permits that may be required.
- Rent – You’ll need to either rent or buy space for your hair salon. Most people rent and pay a security deposit.
- Payroll – Wages and additional benefits you offer your employees.
- Equipment – A hair salon requires quite a lot of equipment like chairs, sinks, hairdryers, tools for styling, and beauty supplies. You’ll also need at least a computer, POS system, and business phone system.
- Hair salon insurance cost – You’ll need to set aside money for a good insurance plan to legally protect your business.
- Inventory – Many hair salons also sell products to their customers. If you want to do the same, you’ll want to stock up before you open.
Location and Staff
When choosing a location for your salon, it’s important to make sure that there’s plenty of foot traffic and ample parking.
Location may be important, but hiring the right staff can make or break your business, so don’t make any hasty decisions. The employees you start off with will have the biggest impact on your hair salon’s reputation.