Did you know the beauty industry is worth $56 billion annually? Yes, you read it right! The truth is most people want to look beautiful so they seek out salon services. Be it makeup, hairstyling, waxing, or any beauty service, salons are the foremost choice of many men and women across the world.
If you are thinking about opening your own salon to be part of this booming industry, you need to know how to open a beauty salon. We’ve boiled it down to six essential steps.
Step 1: Create a Business Plan
Any business, regardless of industry, needs a proper business model. Start with a business plan. A business plan should include everything you need to start your beauty salon. If you don’t know how to make it, you can find templates online, but it would be a wise investment to hire a financial planner or an attorney to help you.
A well-written business plan includes everything from supplier plan, acquisition channels, revenue streams, important business relationships and other major resources required to run a business. Different salons have different types of business models, so make sure you understand your business needs and what you are going to offer and create your business plan accordingly.
Step 2: Consider a Business Partner
Having a business partner offers many benefits. They can help increase your productivity by balancing all the responsibilities of running a business. However, when considering a business partner, you need to make sure that you can trust them completely because business can be damaged by a bad partnership.
Business partners could come in the form of a product company or an investor. Most top-notch salons have somebody who focuses on the creative end of the business and someone who concentrates on day-to-day operational tasks. It makes managing a salon easier.
Step 3: Look for financing options
Whether you are establishing a small business or a large enterprise, you need time as well as money. In the beginning, most new businesses require at least 6 months of capital in the bank. You need to take into account your operating costs, rent, equipment purchases, and stocking inventory. There are several financing options available to entrepreneurs, such as traditional bank loans, business lines of credit, or even crowdfunding.
Step 4: Choose your location and hire a team
Another crucial step is to choose your location and team. When choosing a location for your salon make sure it is centrally located where there is sufficient parking or lots of foot traffic. Good space and the right staff are major factors to the success of your business. So before opening a salon, make sure to consider the location as well as the quality of staff.
If you already have a network of clients, you can use them to find potential new customers. If you’re just starting out, then make sure to provide the best services to set yourselves apart from the crowd. Moreover, the team you choose must be experienced and provide quality customer service to keep people coming back to your salon.
Step 5: Secure permits and insurance
Almost every business requires insurance and permit as a part of their legal process. You will get many insurance options starting from basic, standard to pro and custom. Proper business insurance protection is essential for businesses like hair cutting, coloring, and trimming. When looking for proper insurance protection, make sure it will protect you against common salon risks such as losses and accidents caused by damaged salon equipment, trips, slips, spills and bodily injuries. Remember businesses like beauty salons need Commercial Property insurance and General Liability insurance as well.
Step 6: Create a marketing plan
This is one of the most crucial steps when opening a beauty salon. Once you take care of your business plan, know your target market, set your location and insured your beauty salon, now it’s time to get customers. This is a challenging task for most businesses. So the best option is to start tapping your old customers and let them know that you’ve opened a salon.
Tell them about your services and offer discounts for first-time customers or loyal clients. To help increase awareness for your new salon, make sure you’re utilizing social media. Create engaging content and consider using digital ads. In addition, it’s important to register your business on Google to make it easy for patrons to find your contact information.
When opening a beauty salon, you should keep the tips mentioned above in mind, which can help you become a part of the billion-dollar industry with flying colors.