When it comes to owning a business, the beauty industry generates approximately $60 billion annually, with hair care makes up to 24% of the revenue. Also, this industry often remains unaffected during economic recessions. So, if someone is looking for a steady, profitable business (initially with less investment), a hair salon is a pretty safe bet. But before opening one, get a strong business plan and preparation.
Is there a need to hire a business consultant?
A business person who is already busy in managing numerous activities can’t spend hours on research before making a business plan and feasibility report. This can be very time-consuming and might delay the decision-making process. A business consultant has the knowledge and expertise to help salon owners to plan and make decisions regarding their business strategically. So, before jumping into the business world, a hair salon owner must consider hiring a business plan consultant to give some of the helpful insights and resources.
What are the other important things to consider?
When opening a hair salon, a person probably has a grand vision in mind for how it will look and feel to the target audience. There are several ways to make a salon inviting without breaking the bank. And it’s important to try keeping the place tidy, offering a good hand and scalp massages, and playing soft music throughout the space. Furthermore, a complimentary glass of wine or a cup of tea might not cost salon owners big, but it will make a big difference to their customers.
Check out these 5 expert tips to start a hair salon on the right foot.
1. Gain industry experience
To break into the world of entrepreneurship, it is essential to have some level of experience in the salon industry. And to start with, it can be beneficial to wet your feet by working at another salon first to understand how the system works on a daily basis. Likewise, it may also give a person valuable industry connections.
2. Create a salon business plan.
The first and foremost rule is to get a detailed business plan when starting any business. A good plan provides business owners with a clear objective, outlines to achieve that objective, and gives a good idea of the financials.
Mr. Ali Ryan, the owner of The Dry House, said “A business plan offers a road map for salon owners to help them consider all areas of the business. It is a key to starting a salon and makes sure you set up a metric for success.”
Make sure a person has a good understanding of the hair salon market in an area, including how large it is, and common trends. And research about the market will help understand exactly how to compete against other salons.
3. Find a way to make salon stand out.
Businesspersons need to think about what will make their salon unique. Is it the price they offer? Services? Attentive staff? Whatever it may be, the uniqueness in terms of services, ambiance, and of course, low rates makes every business stand out from the competitors.
In addition to bringing old customers over, it’s crucial to find ways to bring in a new audience and retain them. In this era, nothing is better than creating an appealing website and communicating through the social media platform. Get an idea of the target audience and what culture they want.
4. Talk to distributors.
Once a salon owner begins the distributor search, he or she must shop carefully and consider every prospect; at price points, and deals or any kind of support the different distributors offer. Shop chairs, washing and drying stations, mirrors, conditioner, pins, shampoo, and brushes – take rates from the best distributors (wholesale, local, or national distributors)
Likewise, for larger items, it is vital to work with a larger wholesale distributor who can offer lower prices.
5. Choose the right location.
Whether a salon owner buys a building or rents a retail space, the location is one of the most significant factors in the success of a salon. As the saying goes, the crucial thing is choosing a site. It should be easily accessible by car or public transportation and must be in a well-populated area. In the same way, the salon owner also makes sure that the salon is far enough away from competitors.
6. Hire a designer.
A designer can help salon owners determine an overall look that is consistent with the customer’s taste and overall image of the project. Moreover, they can help to create an environment that can go a long way to reduce stress and ensure functional workspace.
7. Hire a competent team
A common struggle for salon owners is searching a competent staff. It’s not easy to find great stylists that contribute to the success of a salon business.
Why Is Financial Forecasting Necessary?
Financial forecasting, aka financial planning or feasibility, is an excellent tool for estimating the future of a business in the upcoming few years. Through this tool, the financial analysts estimate the future profitability forecasts of the company that helps for better planning of the business.
What Mistakes To Avoid When Starting Hair Salon?
- Not getting a professional business plan
- Not figuring out funding
- Not finding a mentor
- Running the business without an accountant
- Not caring about the right location
- Not having a professional logo
- Not researching the demographics
- Not paying attention to designing the salon
- Ignoring customer service
- Not keeping budget for marketing
- Not hiring the right staff
- Completely avoiding social media
A business consultant can give an honest evaluation of operations and a third-party view of the business. This objective view helps business owners with future planning and finding the mistakes or problems that may be holding them back from true success. Whether you own an established business or a new company that’s hoping to establish, a business consultant can help.
Keep reading to learn more about business plans and their benefits.