Guide to Opening a Beauty Salon
Learn how to build your beauty salon business and increase brand awareness with these tips from Groupon Merchant Services.
If you’re thinking about setting up a beauty salon, honing your business skills could be as important as perfecting your beauty skills. Starting any small business can be challenging, and building a solid client base takes plenty of time and effort. This salon startup guide can help you navigate your way through the process.
1. Determine Your Beauty Salon Business Model
Salons don’t all operate the same way. Some salons are franchise operations, while others are completely independent businesses. You might also consider purchasing an existing beauty salon and re-branding it with your own name and personality.
Another aspect of your business model is how you plan to handle your relationships with the stylists who work in your salon. The main choices here are to operate under a chair rental system or a commission system. If you’re renting chairs to independent stylists, you have fewer upfront costs, such as insurance and benefits, but you also don’t have as much opportunity for later growth. If you want to build your salon brand to encompass multiple salons throughout your city or region, a commission system might work better for you.
2. Create a Business Plan and File the Required Paperwork
Before you consider hiring stylists or designing your interior salon aesthetic, you need a solid business plan. Your business plan is key to getting funding for your salon and essential for predicting your expenses and future profitability. Part of your business plan should include a list of the equipment you need to start a salon and how much those items cost.
There are specific regulations for opening a beauty salon, for example the registration of the salon and the application of a premise license with your local authority or council.
3. Handle the Practicalities of Setting up a Beauty Salon
Before opening a salon, you have to fund your business idea. Funding sources for salons vary widely. You might use the money you’ve saved up to start your business, borrow cash from family and friends, crowdfund the initial start-up costs or borrow money from a bank or private lender. No matter where your funds come from, make sure you have enough to cover operating costs for at least 6 to 12 months so your salon has time to start turning a profit and become self-sustaining.
Once your business plan is completed and funding is in place, it’s time to handle the practical aspects of creating your salon space and hiring stylists. Check out a few locations before deciding to lease a particular space, and have a general contractor look over the location before you commit to determine if you need to install or change wiring, lighting or environmental control systems before opening day.
Purchase or lease the equipment you need, and consider equipment financing to ensure you have everything a new salon requires. Styling supplies are another expense, and you need to decide which product line to carry at your salon. Partnering with a specific company to exclusively use their products in your salon could save you money because many companies offer discounts for long-term contracts or bulk purchases.
Hire stylists carefully because they will be the ones who make or break your reputation in those first crucial weeks after opening. Choose stylists for their personalities, not just their technical skills. You can teach someone how to create an incredible haircut or master a colouring technique, but customers build loyalty to stylists they actually like and trust.
You might also need to hire receptionists, bookkeepers and janitorial staff for your salon. In some cases, technology or outsourcing can reduce your hiring needs, but you’ll have to set these systems up in advance as well. An online booking system could take the place of a full-time schedule, and hiring a maid service to come in on a regular basis could free up other employees to concentrate on product sales or other duties.
4. Spread the Word About Your New Beauty Salon
Thinking about salon marketing before you open your doors helps get your beauty business off to a good start. Establish a salon website and social media presence before opening day to start building buzz about your business. Create opening day specials and limited-time promotions to draw people into your salon during the early weeks and months while you’re establishing your reputation.
Make the effort to make a great first impression on the clients who do come through your doors during those first days and weeks. Provide spot-on customer service, and go above and beyond to create a customer experience that new clients tell their friends and family members about.
Groupon Merchant Services can help you grow your salon business and build your brand in the community. Check out Groupon’s local marketing solutions tailored to salons, spas and wellness businesses to find out more.
If you’re thinking about setting up a beauty salon, honing your business skills could be as important as perfecting your beauty skills. Starting any small business can be challenging, and building a solid client base takes plenty of time and effort. This salon startup guide can help you navigate your way through the process.
1. Determine Your Beauty Salon Business Model
Salons don’t all operate the same way. Some salons are franchise operations, while others are completely independent businesses. You might also consider purchasing an existing beauty salon and re-branding it with your own name and personality.
Another aspect of your business model is how you plan to handle your relationships with the stylists who work in your salon. The main choices here are to operate under a chair rental system or a commission system. If you’re renting chairs to independent stylists, you have fewer upfront costs, such as insurance and benefits, but you also don’t have as much opportunity for later growth. If you want to build your salon brand to encompass multiple salons throughout your city or region, a commission system might work better for you.
2. Create a Business Plan and File the Required Paperwork
Before you consider hiring stylists or designing your interior salon aesthetic, you need a solid business plan. Your business plan is key to getting funding for your salon and essential for predicting your expenses and future profitability. Part of your business plan should include a list of the equipment you need to start a salon and how much those items cost.
There are specific regulations for opening a beauty salon, for example the registration of the salon and the application of a premise license with your local authority or council.
3. Handle the Practicalities of Setting up a Beauty Salon
Before opening a salon, you have to fund your business idea. Funding sources for salons vary widely. You might use the money you’ve saved up to start your business, borrow cash from family and friends, crowdfund the initial start-up costs or borrow money from a bank or private lender. No matter where your funds come from, make sure you have enough to cover operating costs for at least 6 to 12 months so your salon has time to start turning a profit and become self-sustaining.
Once your business plan is completed and funding is in place, it’s time to handle the practical aspects of creating your salon space and hiring stylists. Check out a few locations before deciding to lease a particular space, and have a general contractor look over the location before you commit to determine if you need to install or change wiring, lighting or environmental control systems before opening day.
Purchase or lease the equipment you need, and consider equipment financing to ensure you have everything a new salon requires. Styling supplies are another expense, and you need to decide which product line to carry at your salon. Partnering with a specific company to exclusively use their products in your salon could save you money because many companies offer discounts for long-term contracts or bulk purchases.
Hire stylists carefully because they will be the ones who make or break your reputation in those first crucial weeks after opening. Choose stylists for their personalities, not just their technical skills. You can teach someone how to create an incredible haircut or master a colouring technique, but customers build loyalty to stylists they actually like and trust.
You might also need to hire receptionists, bookkeepers and janitorial staff for your salon. In some cases, technology or outsourcing can reduce your hiring needs, but you’ll have to set these systems up in advance as well. An online booking system could take the place of a full-time schedule, and hiring a maid service to come in on a regular basis could free up other employees to concentrate on product sales or other duties.
4. Spread the Word About Your New Beauty Salon
Thinking about salon marketing before you open your doors helps get your beauty business off to a good start. Establish a salon website and social media presence before opening day to start building buzz about your business. Create opening day specials and limited-time promotions to draw people into your salon during the early weeks and months while you’re establishing your reputation.
Make the effort to make a great first impression on the clients who do come through your doors during those first days and weeks. Provide spot-on customer service, and go above and beyond to create a customer experience that new clients tell their friends and family members about.
Groupon Merchant Services can help you grow your salon business and build your brand in the community. Check out Groupon’s local marketing solutions tailored to salons, spas and wellness businesses to find out more.
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