For those interested in the beauty industry, a salon can be a great startup business. From hair salons to spas to nail salons, or even a combination of these services, various salon models can be successful businesses for the right entrepreneur. But opening a salon comes with unique challenges and considerations. Before starting a beauty business, you should familiarize yourself with applicable laws and regulations, consider financing and other important factors.
Tips for opening a salon
These 10 expert tips will help you get your business off to a good start and set your salon up for success.
1. Create a business plan for your salon.
When starting a business, the first step is to write a business plan. A business plan helps you set clear goals, outline how you will achieve those goals, and define what you need to do to be successful.
“A business plan is important when opening a salon,” explains Ali Ryan, founder of The Dry House. “The plan provides a roadmap for salon owners to follow and helps entrepreneurs consider all areas of the business. A business plan allows you to set standards for success and think through your financials before investing a ton of time and money into your new salon.”
When creating a salon business plan, you need to have a thorough understanding of the existing salon market in your area, including its size, growth potential, trends, etc. This information will help you determine how you can differentiate yourself from your competitors.
According to Michelle Lee, co-founder and master designer at Salon Eva Michelle, salon owners also need to understand their target customer: “Think about what kind of salon you want to open. [and] “It depends on what kind of culture you want,” Lee advised.
2. Research local laws and regulations.
Laws and regulations vary depending on where you live and the type of salon you open. For example, a salon that only offers hair services will need a different license than one that also offers facials and massages.
“Do your research,” advises Chanel Jett, owner and stylist at Jet Set Mobile Studio. “Make sure you're following state laws and regulations. If you have to make any adjustments to your plans because of regulations or laws, you could find yourself closing down your business later or having to re-open. [having to pay] fine.”
Common licenses, regulations, and permits related to salons include:
3. Find ways to make your salon stand out.
“Even in small towns, salons are everywhere, so entering the market with a specialty or niche service can dramatically increase the buzz and coverage your practice receives,” points out Pamela Jeschonek, former owner of Everyday Esthetics Eyebrow Studio.
Think about what makes your salon unique. Is it your services? Attentive staff? Customized experiences? Whatever it is, make your defining element the focal point of your identity and grow your business from there.
A niche market gives you more security against failure, and it also gives you the opportunity to discover what works (and what doesn't) for your business by interacting more closely with your customers.
“Even if you offer many services, promoting niche or specialty services will not only help you gain a loyal customer base, but it will also give your salon instant credibility as an expert in your niche,” Jeschonek explained.
4. Form strategic partnerships with distributors.
You will need to contact a distributor to get products for your salon, such as chairs, mirrors, washer/dryer, shampoo, conditioner, pins, brushes, etc. You can find local, wholesale, or national distributors with local agents.
For larger items like chairs and hairdryers, you'll work with large wholesalers like Belvedere Maletti and Takara Belmont. Smaller items can be purchased from local distributors or directly from manufacturers like Paul Mitchell and Estee Lauder.
As you begin your search for a reseller, remember to think carefully and consider all prospects. Check out the price ranges and customer support (such as advice and consulting) of different resellers, and ask if they offer any discounts or special offers.
5. Build a strong customer base.
As a salon owner, your customers and their experience must be your top priority. Focusing on customer-centricity will encourage repeat business and build a loyal client base over time.
“My best advice to aspiring entrepreneurs before opening a salon is to have some professional clients who can help cover your expenses,” recommends author, speaker, and entrepreneur Sandra LaMorgese. “With a solid client base of your own, you'll be in a better position to take the lead.”
6. Choose a suitable location to open your salon.
Choosing the right location for your salon is very important. Whether you're buying a building or signing a commercial lease for retail space, location is one of the biggest expenses in opening a salon. There are many things to consider. For example, it needs to be in a well-populated area that's easily accessible by car or public transportation. You also need to make sure it's far enough away from competitors offering similar services.
“Make sure you have a solid location with ample parking,” suggests Jim Salmon, vice president of business services at Navy Federal Credit Union. “Providing a convenient location for customers to visit your salon will increase customer numbers, which will result in more revenue to pay off your initial loan and cover growth expenses.”
7. Hire a designer.
If you can afford it, hiring a designer to help you design your salon can help reduce stress and ensure an attractive, functional workspace. A designer can help you determine an overall look and feel that matches the image you want to project.
“work[ing] Designers and space planners [can] “Try to maximize the profitability of the space,” advises Miriam Deckert, former marketing director at Salon Smart. “If construction work is required, try to negotiate that cost into your lease.”
Deckert recommends taking advantage of the space in the center of the salon with a double-sided station or a couch for waiting customers. Before purchasing any equipment or furniture, know the dimensions of each area.
8. Focus on staff.
Your salon is only as good as the staff you hire to help run it. The beauty industry is a very personal industry, so maintaining a skilled, knowledgeable and friendly staff is essential.
“I recommend that new salons invest time in training and motivating their staff,” advises Jennifer Quinn, online content executive at Forest Salon Software. “Salons are built around stylists and technicians. [so] Ensuring that customers are happy with upsell products and other treatments across brands can be the difference between success and failure.”
Taking the time to effectively train your employees will help your business run more smoothly and maintain a professional reputation. Your employees' career growth will translate to a stronger business.
“It's important to be passionate about your staff's development,” says Lee. “Be a leader, not a boss.”
9. Think about your customers.
Your customer's experience is key to your salon's success, and to create the best experience for them, you need to know your customers.
“Paint a vision of how you want your customers to feel, what you want them to experience, and what adjectives they'll use to describe that experience,” advises Samira Farr, founder of Bellacures. “This will help you craft the look, feel, and atmosphere.”
Your business plan outlines how you will meet your clients' needs and wants as best as possible. As you develop your business, you will gather feedback from your clients to show them that you value and act on their opinions.
10. Charge what you're worth.
Deciding how much to charge for your services can be difficult, especially when you're just starting out. You should do your research and get a rough idea of what someone with your level of training can charge. However, you should carefully consider your skills and training and base your price on that factor, not what others in your area are charging.
“They don't know anything about them or their craft,” points out Cheryl Miller, owner of Fringe Hair Arts. “When I first opened, I charged $60 a session in a town where the most expensive haircut was $38. It's taken me 25 years of training and education to get to this point. Some people thought I was crazy, that I'd never understand. Not only did I get it, [but] I have since [prices] “Go up to $70 and keep charging it. If your work is great, people will pay for it.”
