There are many factors to think about when starting any business. A beauty salon is no exception. Starting one involves hard work and preparation, particularly when you want your salon business to wind up a success. There’s no taking any shortcuts with this. No one simply starts a salon without any effort, in the hopes that they can just wing this.
Opening your own salon can be exciting, with so many men and women now more proactive about taking care of their hair. But, before you let the excitement get the best of you, be mindful first of the many things you have to consider before opening day.
Significantly, the more ready you are to meet those considerations, the more confident you can be about your beauty salon’s success. To give you an idea, here’s a list of what those important considerations are.
1. A Business Plan
Good business owners will never start one without first having a business plan. This is a must-have, as you would with just about any other business.
You see, without one, it’s hard to give your business that sense of direction it needs. You won’t have anything to look back on periodically to check whether or not your business is achieving all the goals and points you’ve set out in your business plan.
Meanwhile, a well-rounded business plan should have the following information:
- Customer or market segmentation;
- Cost and fee structure, particularly the capitalization requirement for salon furniture and other expenses;
- Acquisition and marketing channels;
- Other revenue streams for your salon.
2. Local Laws And Regulations
The last thing you want is to have a fully-operational salon only to discover later that you’ve been negligent in your compliance with local rules and regulations. As your business plan is in motion, take the time to go through the local laws governing salon businesses.
For example, what are the current sanitary legal requirements for salons? What certificates do you and your team need to have, so you can successfully start and operate the business? Are there any specific inspections that you have to comply with?
If you’re unfamiliar with the current regulations, check with your local business licensing authorities. You may also approach a lawyer, just to be certain you won’t miss out on anything important.
3. Financial Matters
Unless you have significant savings, or you have personal wealth, then you have to be very keen on making decisions regarding financial matters. Like many other entrepreneurs, you may need to look for financing options to help fund your salon business.
There are numerous financial institutions from which to choose. However, the ideal candidate would be the one with the best reputation and who offers the best interest rates. Take time to compare at least three different options, just so you can be certain that what you have is truly the best.
Along that line, here are some tips to help ease your financial worries:
- Find a strong business partner to help share the expenses with you.
- Look for ways to save money on your salon’s business expenses right from the beginning. By doing so, you’ll be more prepared for any uncertainties that may arise in your business.
- Determine the budget you’ll come up with, as there’s salon equipment and other necessary expenses you’ll have to cover.
4. Type Of Business
Opening up a salon means choosing the best business structure for it. Depending on what you can afford, your salon can either be sole proprietorship, a partnership, or a limited liability. There are many different implications of each type, and this is another thing that’s best discussed with your business lawyer.
Below are some of the factors to consider:
- If you choose to have sole proprietorship, you get to enjoy all of your business’ profits all to yourself. The only downside to this is that, should there be any losses, you’ll be solely responsible for covering all those liabilities as well.
- If you want to run your salon with a partner, then a partnership will be your best bet. You have someone else to share in the profits and losses of the salon, along with someone to share in the capitalization requirement.
- If you want to keep your personal finances separate from the business, a corporation can give you more protection along these lines. This is in addition to the other benefits you could get from choosing to establish a corporation for your salon business.
5. Salon Marketing Plan
You already have a salon business plan; now it’s time for you to have a marketing plan as well. This refers to your specific plan as to what marketing activities you’re going to do for your salon.
Marketing is an essential activity for any business, so you have to be very particular to get this done right. If not, you could lose so much in potential profits all because you were lenient with your marketing activities.
On the other hand, the key to achieving good marketing for a salon business is to aim for consistency and good technique. Some tried-and-tested tips you can use when marketing your salon business are the following:
- Make use of social media: This will allow your customers to get to know you on a more personal level.
- List yourself on online directories: This enables your business to show up on digital searches, especially for those new potential clients who are still searching for a salon.
- Give out incentives: To encourage your loyal customers to consistently prioritize your salon.
If you’re thinking of opening a salon, the list of points above are critical for you to consider. Once you get head-on with the planning process, you’ll find that there are many crucial items to consider.
A hair salon can be a very good source of income and a profitable one at that, for as long as it’s well-managed and with a good foundational start. Tick off the items above one point at a time, so you’re certain you have everything prepared and ready for your salon’s big opening day.