Start Your Own Beauty Salon Business
The Beauty and Aesthetics department is of the few recession-proof business ventures out in the market. In fact, it even demonstrated 4% growth during the downturn. This is quite an impressive feat for an industry that a number of people consider non-essential.
Starting your dream beauty salon is not impossible—but it’s not easy either. Being passionate about this business is one of its most formidable driving forces; but everyone who aspires to make their venture a success needs to have a comprehensive overview of its essentials.
1. Get acquainted with the Administrative side.
It all starts with step one. Majority of business prospects would incur loans as a capital. It is a good idea to apply from micro-investment agencies as they would demand a lower interest rate than the banks. If this is not possible, you can compare and contrast local bank interest rates to seek the best option.
Next, choose the legal structure that fits best. As a starting enterprise, you might want to opt to have it as a Limited Liability Company. LLC shields the owner from personal liabilities relating to the issues of your commerce. This type does not need to have a board of directors or a shareholders meeting. It is could also attract more money since it can fend off some taxes from the business’ and your personal profit.
2. Find a reasonably-priced location.
The location is one of the most critical elements that could spell the success of your business. It is strategic to choose a place that has the highest foot traffic in the area (e.g. in a mall). But this would also imply heftier rental fees. Some people prefer to build their establishments where local beauty suppliers are at a hand’s reach.
The ideal place for someone starting out is usually a compromise between these two aspects. If you can, opt for ample space—about 1000 square feet.
3. Get the necessary permits.
Obtaining permits may sound daunting but it is usually one of the easiest to accomplish. If you take heed to the rules, that is. State-issued licenses would only take a couple of waiting days. The bill could range from $100 to $2000.
An approval from the Department of Cosmetology can only be obtained after a thorough assessment in your area. This would mean that your establishment should pass the electrical, sanitation and fire safety codes. Your team would also be required to acquire due licenses in order to trim those bangs, do nail art etc.
4. Start-up costs
Conservative estimates for the furbishing cost in every square foot would range from $75 to $125. Thus, it is important for a prospective salon owner to get the best deals from the local beauty suppliers. In order to get the most out of the deal, do a point-ranking system. Grade the small business beauty dealers according to their propaganda—free training, sample products and equipment guarantees. Sourcing out beauty suppliers could be a nit-picky job but in eventuality, this would create big rewards for your salon.
Moreover, investing on software to organize data can revolutionize and even increase your profits. By that, you can also cut manpower costs for handling commissions, hourly wages, health insurance and other salary deductions like federal and state withholding taxes. Program developers, with concurrent promos such as free shipping, skills training and maintenance would require $29-$79 monthly subscription fees (excluding upfront payment).
5. Hire well-trained personnel
Customer satisfaction is the buying point for this line of business. Employing knowledgeable and licensed people minimizes the cost of procedural mistakes. Experience with no proper education limits the employees’ comprehension on the type of service he/she performs.Thus, this would increase the likelihood of subjecting clients to possible dangers. If you can afford it, getting someone to work on a specialized area in your shop is a plus point.
Sure, you can cut costs on salary compensation on hiring an inexperienced crew. But a tarnished reputation has no ransom.
6. Booth Rental Scheme
In this method, the salon owner acts like a “land lord” and would lease one or two of his chairs to a stylist (the “serf”) on an agreed span of time. Through the years this increasingly popular model is preferred by both parties. The technicians would want their pay on a daily basis and proprietors can shell out fewer dollars for their compensations.
7. Treat your staff like a family
Earning a satisfied grin from the costumer is directly proportional to the level of the employees’ happiness in working for you. Since at this level, retirement premiums and paid vacation guarantees are far beyond your reach; a biweekly pizza night-out isn’t. Aside from that, there are still more things to create that congenial environment. Being prompt and proper in the wages is a good idea too.
A little respect to your people won’t hurt you. It will create a big difference, instead.
Maximize your profit using the necessary media channels. Facebook, Twitter, Google+ and other social networking sites offer free or minimal pay for this purpose. Newsletters, a website and a feature from a local magazine are also dandy. Small business beauty dealers can also provide a helping hand in spreading out your market in their service channels.
In this business, the ability to establish as many close personal ties with the clients is vital. A reputed stylist can have a huge fan base. Needless to say, the best advertisers would be your costumers. Word-of-mouth referrals are by far considered quite reliable by potential clients. There is also a great tendency of them coming back alongside friends, family or colleagues.
If you can, opt to expand your horizons. Women do prefer all-in-one salon to cater for their different needs. After the hair-styling phase, expansion options such as spa services, nail art and make-up services can be included.
But before that, look for the perfect opportunity and person to do that for you as this choice would also entail careful planning. Small business beauty dealers can also give free consultancy options in this aspect. On most cases, they have experienced leaders in the field that can mentor you in this business leap.
10. Gauge your success
There are three factors that could hint you of a booming salon business: Client retention, Employee retention and retail dollars per client. More costumer returns ensure higher average earnings because it is most probable that she has recommended your services unto others. Employee retention would mean a lot to your progress.
When a tech leaves, the tendency is that he/she would also bring his subscribers with him. The last aspect is again about frequent costumers. Statistics suggest that returning clients are more likely to shell out money for your services than first timers.
Are you ready to start out? Though there might be hurdles along the way, a steadfast spirit would eventually win out. Remember, passion with careful planning is the name of the game.