With the beauty industry being valued at over $530 billion per year, opening a salon business could be one of the greatest decisions in your life. It will require a lot of work, but doing it correctly could set you up for monumental success and satisfaction.
In order to open a salon business you need to have an idea of the kind of business you want to have, the kind of environment you want to create and a plan to put in all in motion.
Create the Vision
The most successful salon businesses have an ideal customer experience in mind when building their dream salon. They have envisioned the space, the design, the feel, the culture and the environment of their dream salon. Having this vision will ensure that all of your decisions line up with the ultimate goal: from the location to the employees and even the products sold. This vision —this brand will follow you through business plan and your branding (e.g., website, logo, etc) and even into the salon’s aesthetic.
Know the Business
The beauty industry, as a whole is very complex and a salon is no different. Do all of your research. Know what’s popular in your area, how much services costs, what’s on-trend and what’s missing so you can including those things in your offerings.
Outside of skills and services, take the time to research all of the federal, state and local requirements for operating a salon. There are specific things that apply to you as a business owner in addition to what’s needed for you to practice. Some things to consider include:
licenses and permits to operate legally (e.g., business license, cosmetology license, building permits, seller permits, occupancy permits, etc.),
insurance to protect you, your building, your business and your guests,
inventory if you plan to sell any,
salon equipment (e.g., dryers, chairs, towels, products, laundry, etc.), and
payroll including training and employee benefits.
Write a Plan
Business plans are necessary if you plan to seek outside funding. Banks and investors like to see that business owners took the time to do the work and research required to put a solid business plan together. Make sure to include detailed financial plans and budgets as well as potential locations with a budget of what you would need to make it your dream salon.
Tip: Work from a niched, specialized, position and expand outward. When writing the business plan for your salon business, start with what you’re good at. Most salon owners are also stylists or service professionals, starting there will help you write a business plan that focuses on adding assets to your salon which will, in turn, attract more customers. Create a plan that adds professionals and experts to your team who are able to bring a following and invite new customers into your salon space.
Get Started
After having a plan in place, jump right in.
Legally register your business.
Apply for an EIN with the IRS.
Find the perfect location.
Secure Financing
Apply for necessary licenses and permits.
Build a relationship with distributors.
Market. Market. Market.
Grow your clientele list.
Max out your salon’s experience before opening a second location.
Have fun.
Some of your favorite people in life will be your clients. Don’t forget to celebrate and have fun throughout every stage of the process.
BT84 Commercial Capital & Business Solutions offers financing for salons nationwide. Contact our offices today to learn more.