When you were kid, did you enjoy making hairstyles, trying different makeups or perhaps you loved watching your elder sister getting her hair styled, right? Well, that’s the stylist in you that always wanted you to become a hairstylist, makeup artists or may be a salon owner. People who are good at doing their own hairstyles and makeups always have this dream of starting their own beauty salon in future, but they have no idea where to start and thinking about how challenging it would, most of them give up on their dreams. Well, if you are one of those this article is definitely going to show you step by step process of opening a salon, but you must be prepared to put you dedication and passion on the line to make it as successful as it could be.
To begin with, analyse the amount of money you need to invest in your salon business. Starting a business is obviously going to cost you money, and it undoubtedly going to be difficult to raise funds for your salon setup. Majority of salon owners do not even aim to earn profit for the first 1-2 years and they are happy even if they are in no profit no loss equation. Here’s what you should do:
Ask yourself that can you manage your month expenditures while you work you way through to setup the salon because it is going to take efforts, money and time. First, calculate how much is your expenses every month, how much savings you have and what is the deadline amount you must make to survive every month. Once you have that figured out, make an opening budget for your business that includes employees salary, shop rent, business insurance, products supplies, emergency funds, and other monthly bills such as electricity, internet and phone.
Once you are done with your operation budget to run the salon business, it is time to analyse price structure of services you will be offering in your salon. Make sure you price the services or products so that you end up with profit at the end of the month. At the start of the business you can keep the prices low and gradually increase them as you establish your business. Also, create a menu of services and figure of what all services such as hairstyling, colouring, makeup, facials, etc you will be offering. This is important because you will have to hire specialists who can do these services for your clients and for them you will have to plan for their payrolls as well. For example you can learn from success story of Beaucage Skin Care Salon in Boston, MA. It was similarly planned and started by a stylist and then scaled it to reach great heights in the industry. It is now a successful business with over 30+ stylists working in the salon.
Amateur salon owners gets excited with initial response they get to their salon business because it’s new, and in excitement they hike their services prices and that is when the downfall of the business starts. Therefore always make sure that you do not charge too much to your customers in order to make more profits, otherwise soon you will send your customers away to your competitor. To solve pricing issue, do a bit of research about the prices offered by other salons in your area and accordingly set your prices in a similar range. That will help you to be competitive in the market and win more customers.
In case you have no money to start your salon business you can always apply for a small business loan from a local bank. Before you apply for it you will have to discuss about your business plan with the loan officer and for that make sure you have a presentation ready, because that will increase the chances of approval significantly.