A Comprehensive Guide to open a Profitable Hair Salon Business in 2020

A Comprehensive Guide to open a Profitable Hair Salon Business in 2020

The hair salon is a service profession par excellence! Opening a hair salon is a popular activity. Many professionals open their own salons to be self-employed. However, working in a hair salon and opening one is very different. You can’t improvise your own boss. You must comply with specific regulations. Put the odds on your side by seriously creating your business in the right conditions.

Hair and beauty salons are growing exponentially every day. It isn’t easy for small businesses to stand out in this crowd to compete.

Digital technologies significantly affect all businesses. Even those who still enjoyed a guaranteed customer without the need to communicate beyond measure. Yet today, with the heyday of information and communication technologies, all businesses must launch marketing campaigns. It will help the entrepreneurs to stand out from the competition and attract customers.

Wondering how to open a hair salon? How to set up a marketing strategy in a hair salon? You are at the right place!

In this article, we review all the major steps that you must take to complete your project.

Do market research for opening your hair salon

Once you are legally able to open a hair salon, the first thing to do is market research. The purpose of this is to allow you to validate the commercial potential of your future show in the implantation area you are considering.

For this, you need to perform complete research on industry trends. Analyze your competitors in-depth, as well as the expectations of your future customers.

. To find out if your business will be profitable, you must first be able to answer these five questions:

  • Who’re my clients?
  • What’re they looking for?
  • Who’re the competitors?
  • What’re the prices? –
  • What my property for?

Obtain Professional Qualification

Unfortunately, degrees do not, or do not train enough, for entrepreneurship. In order not to throw yourself into the unknown, we strongly advise you to prepare yourself in setting up a business. Online training courses exist and will teach you how to start a business. Drafting of the statutes, appointment of the manager, and deposit of funds or legal notices…! You must know these terms to startup your hair salon.

The primary qualifications require to open hair salon are:

  • A professional hairdressing certificate,
  • A master’s degree in hairdressing,
  • A diploma registered in the national directory of professional certification.

Writing the Business Plan

The business plan is essential. It is the document that will allow you to justify all of your expenses. It will enable you to convince your banker to finance your business project by granting you a loan. The business plan will submit all of your hairdresser projects and demonstrate its economic potential through financial forecasts. It also enables them your investor to judge the progress of your project. Furthermore, it also allows them to analyze the solidity of your business.

If you have personal finance, the business plan helps you anticipate spending in order not to get stuck at the end of the first year.

The presentation of the hair salon must provide the following information:

  • Lounge Description (mixed, male or female);
  • Positioning the show (high end, low cost …)
  • Location and area;
  • Capacity (number of bins, number of styling stations, number of treatment devices).
  • Hair market size and trends
  • Amount of turnover and/or number of products or services,
  • Market behavior in recent years, the annual growth rate in%
  • Who is the target clientele? What% of the market or sales does this clientele represent?
  • Forecast balance sheets
  • Forecast funding tables
  • Cash flow plans
  • Summary of funding sought etc.

Do you not know how to create a business plan? Are you too much busy and it is difficult for you to find time to make a plan? Don’t fret. You can take help from the professional business plan writer. They’ll go to greater length to move your business in the right direction.

Get trained in the management before opening your hairdresser

Then, before launch your hair salon, you must train yourself in management techniques. Two points can be noted:

Administrative management: what are your obligations to your employees?

Affective management: how to manage a team?

Different options are available to you based on your experience.

Find the Right Location

The choice of location for this type of activity is crucial. Your salon should be ideally located on a busy street and be welcoming to your customers. To find the ideal property, you can go through the ads on the internet or through a real estate professional.

Choose Legal Status

There are many different legal statuses suitable for hair salons. To make your choice, you must ask yourself two questions:

Would you like to start your own business with one or more partners or alone? In the first case, your legal status will be turned to companies. In the second case, you can opt for a sole proprietorship.

Are you ready to risk it all for your hair salon? Protecting your personal assets is decisive in the choice of legal status.

Raise the necessary funds to be able to open your hair salon

Opening a business requires having funds. For this, several options are available to you, personal funds, or external contributions (crowdfunding, donations, credit, etc.). To estimate the funds needed to launch your activity, you must:

  • Calculate how much money you need each month to live.
  • Calculate how much money you will need each month to run your hair salon or beauty parlor.
  • Estimate the amount of taxes you will have to pay.

It is by asking yourself these questions you can establish a fixed price. Moreover, you can avoid being in deficit at the end of the year.

Increase your traffic

Your first goal should be to escalate traffic to your living room. Make your customers numerous and regular. It’s not a good thing to have only specific customers or only regular customers. Your objective must be to have a mixture of the two to circulate your name as widely as possible. But also to make sure you’ve faithful customers.

Only by increasing traffic, you can improve your turnover. This is why it must consider you to organize the operations mentioned above to ensure a record.

Set up a loyalty program

Bringing customers to your salon is excellent, making them come back is better! As the saying goes, it is much less expensive to retain customers than to seek to win new ones! If you want your customers to be your first ambassador, make sure that they are only interested in you. Encourage your customers to come back by personalizing your relationship with them. Remember to wish them their birthday by offering them a massage session. Send them a reduction on a treatment they are used to … in short, make them feel unique!

Also, set up a sponsorship program that will reward the sponsor for their support and the godson as a welcome. In this way, your customers will be invested and will want to make you known.

Establish a Communication strategy

Once your hair salon exists, you are going to have to publicize it. This is the most important step to hope to have a profitable business. You can promote your business by

  • Creating a website
  • Animation of your Facebook page
  • Customer recovery
  • Implementation of marketing operations.

Promote your business on social networks like Instagram, Facebook. Further, send out a regular email to your target audience. Stay consistent on scheduling your posts on Social Media. Use fresh and unique content to get ranked on Google search results.

Take advantage of the niches available on your market to differentiate yourself and capture unsatisfied clientele. You can also offer new services such as massages to diversify your activity and thus stand out.

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