Having decided to start a venture in the beauty and wellness industry, perhaps the immediate question would be which considerations one must be aware of when opening up a hair salon business.
Whether you’re a first-time entrepreneur or taking the leap to be a freelancer, taking cognizance of the business requirements is something that is absolutely necessary.
Being aware of the requirements will not only help you avoid the pitfalls but also ensure that your business is built on solid foundations.
Let us guide you on what is the essential list of things that you must know before opening a beauty salon.
1. Budgeting
Starting a venture requires capital investment, and almost nobody has an infinite amount of money. You may have grand ideas for the business and what the salon must look like.
However, it is important to know what the ideas will cost you. Thus, it is important to pencil in each and every cost, to arrive at what is your estimated investment.
On this estimate keep a contingency buffer of approximately 10%. If you’re wondering how will a budget help me? First and foremost your budget will restrict you from going overboard with your expenses.
Secondly, the budget will also help you in arriving at the break-even price at which you can offer your services. Thirdly, it will inculcate the habit of maintaining financial discipline from the beginning.
2. Location
It is the most important decision that you will have to take. With the market competition being intense, it is important you are easily accessible to clients.
Your services can be brilliant but if you’re not easily accessible then the chances of you getting clients dip drastically.
Keep the demographics that you want to cater to in mind and the scourge of locations.
If you looking to select a space where a previous salon is shutting down, do you do due diligence to ascertain whether the business shut down due to lack of footfall or there were other reasons?
3. Staffing
Based on your business model, your degree of concern will vary. If you opt to run rent-out chairs in lieu of commissions, you have to be aware that if the stylists leave, so do the clients.
If you’re running a salon wherein you hire the staff you should look for their skills, personality, and demeanor.
A reference check is absolutely necessary for an industry where individual connections affect the business potential.
A skilled barber is one, who is able to show his talent, be receptive to customers’ needs, and have the right engagement with the client such that every customer feels that the service is solely focused on him or her.
Some states may need your staff to be licensed and or have completed some stylist courses.
Therefore, it is highly recommended that you check on the special requirements of the jurisdiction, where you wish to operate.
4. Customer Relations
The service industry is no stranger to the concept that the “Customer is always right”, and the same mantra follows for a beauty salon. To ace the competition around you, you have to get the customers’ relations right.
Present-day customers aren’t looking solely for a service, instead, they seek an experience. The journey of experience commences from the time of making an appointment and culminates with a review.
At every point, it is important that customers should feel empowered and valued. Therefore, it is highly recommended that a professional setup, including by way of deploying salon management software, be created.
From appointment booking to taking a review, the salon management software will enable you to give a modern experience to your clients.
5. Marketing
From the very onset, you must have a plan for marketing your salon. It starts with having a good website, social media pages on Facebook, and Instagram, listing on Google and Yelp.
Your website and the app should have an easy booking feature. The social media pages should be able to link clients to your website. It is advisable to engage a digital marketing consultant.
Aside from relying on tech, you could also consider a gala opening where you allow clients to get some free services to showcase the skills of your staff.
Consider partnering up with local businesses and offering combined services. You may also consider a partnership with a beauty product company to become the preferred stylist recommended by their marketing team.
Aside from the above, considerations, you must bear in mind that learning from experience and experimenting with different cosmetic products will also assist you in building your salon business, as you will find your niche and be able to make informed decisions.
