Buzz
A successful Hair Salon (also known as a Beauty Salon) can be a profitable business venture that doesn't rely heavily on the overall economic situation. People are always willing to pay for services that they cannot perform at home, and hairdressing services consistently top that list. Running a hair salon and being a hairstylist are two distinct roles. You'll need to organize your business, hire staff, attract customers, and ensure that clients are always satisfied. Keep reading to fully understand how to open your very own hair salon.
Steps to Follow
Starting a Business
Decide whether to start from scratch or take over an existing business. Opening a brand-new hair salon is a great challenge, but if you're looking to minimize risks, you could buy an established business. Here's a brief overview of the options:
- Starting from scratch: You'll need to find a location, establish your brand, attract customers, and run the business without a stable customer base or brand recognition.
- Franchise a salon: Choose an established salon brand and open a new location. You'll need to follow the franchise company's policies, with less autonomy in business decisions, but you'll benefit from the brand's reputation and customer recognition.
- Buy an existing salon: If you find a salon for sale, you could take over the business. You'll avoid searching for a location or purchasing equipment. However, it's important to investigate why the owner is selling to ensure it's a good deal for you.
- Operate a leased salon: A recent option is opening a salon and renting out individual spaces to hairstylists, who are responsible for buying their own equipment and acquiring clients.
Understanding competition. Select a group of successful salons that share the same target customer base as yours, then research what has contributed to their success or what they might be lacking. Try experiencing their services from the perspective of a customer to understand what expectations your clients might have, and how you could meet those expectations. You can then implement these solutions into your business efficiently, eliminating ineffective strategies and incorporating those that work for you.
Pay attention to the legality of your business. Requirements for registering a small business may vary by jurisdiction. Visit your local court and the Small Business Administration website, or contact your local People's Committee and the Department of Planning and Investment to find out what steps you need to take to legally run your salon. Here are some of the things you need to do according to regulations:
- Register a business license. To start your business legally, you'll need to obtain a license where you reside. Visit your local court and the Small Business Administration website or contact your local People's Committee and the Department of Planning and Investment to learn how to apply for a business license and where to submit your application. You will need to complete the required forms and submit them along with the applicable fee to obtain your license.
Obtain a Business Tax ID (or Federal Tax ID). This is a mandatory step when starting a small business. Your Business Tax ID is the number you will use to file your business taxes. Visit your local tax office website for information on how to obtain a tax ID.
- Create a business plan. This is a detailed document covering all aspects of your business strategy, including costs and competition. You may need it when applying for a loan or a business license.
- Find financing for your business operations, either through loans or available funds. Research the necessary amount of money to start your business and cover operational expenses, including rent, salaries, equipment, and products.
Lease a location. A hair salon should be located in a convenient, bustling area with other businesses nearby that complement your business type (e.g., clothing stores, lunch spots, and other establishments attracting similar customers). Look for a spot with easy parking and an attractive storefront.
- Ensure the location is properly wired for sinks and other necessary equipment, as you may need to spend extra on renovations.
- Talk to other business owners in the area about the challenges they face and weigh the pros and cons before leasing the space.
Purchase equipment. You can either buy brand new equipment or seek out used items from another salon. Make sure everything works well and matches your needs. Create a list of what you need and calculate the necessary costs.
- Determine how many stations you want inside the salon. How many wash stations? How many chairs and makeup tables?
- Ensure the tools you use are top-quality. If you're buying used equipment, make sure it's still in good working condition and allows you to create the trendiest hairstyles.
- Decide which products to use. Using branded products can help attract customers, though high-end products can be expensive.
Design the space and hire hairstylists
Create a relaxing environment. The atmosphere of your hair salon is critical for customer satisfaction. Visiting the salon is a treat for many, a much-anticipated self-care experience, so it should be one that helps your clients rejuvenate and feel refreshed. If your space feels dreary or unattractive, customers will go elsewhere.
- Select a main color scheme and layout. Use bright wall paints and decorate with stylish artwork or cheerful accents.
- Invest in high-quality mirrors and lighting to ensure the space is bright and clean.
Hire experienced hairstylists. Think about how many stylists you need and either ask around or place ads to find candidates. Make sure the people you hire have graduated from reputable beauty schools and have prior cutting experience. Check their work history and consider having them do a trial run before hiring.
- Decide if you want your hairstylists to bring their own clients to you. If so, ask about their loyal customer base.
- Hire individuals with specialized skills that you're seeking, such as expertise in highlighting or experience cutting children's hair.
Create a list of your services. Every salon has a unique menu of services tailored to their clientele. Design yours to be stylish and aligned with your team’s skill set. In addition to basic cuts for men, women, and children, you may want to consider offering services like:
- Hair coloring
- Perms and hair straightening
- Specialty services (bridal makeup, advanced treatments, etc.)
- Consider adding spa services like manicures, facials, or massages.
Set your prices. Decide how you want to charge and whether you’ll set different fees based on the hairstylist's experience level. For example, you might charge more for a haircut from a seasoned stylist than for one done by a newcomer. When setting your prices, consider these factors:
- Labor and material costs. If you’re offering high-end services with premium products, your prices will need to reflect that, compared to if you’re hiring newer stylists and using budget products.
- Research competitor pricing. Find out how other salons charge and aim to keep your rates affordable while ensuring you make a profit.
Choose your appointment management system. There are numerous convenient computer software options available to help manage salon activities, such as Neohair.com, Shortcuts, Rosy, Envision, and Hair Max. Most of these software offer similar features, such as managing customers, staff, finances, inventory, and purchases. A few of them, like Salongenious, even provide appointment reminders through SMS or allow you to save photos of clients' hairstyles.
Salon Operations
Set your opening hours and customer service policies. Hairdressing services are increasingly available outside the traditional 9-5 working hours. Many salons are becoming more flexible, with some operating evenings and weekends. Remember that in the competitive race for customers, flexible working hours are crucial to providing easy access for clients when they need it most.
- Many people prefer salons that open after regular office hours, as this is often when social events take place and people feel the need to look their best. Consider offering services by appointment only, with a surcharge, or organizing your staff in shifts so your salon can open at hours typically reserved for closing.
- The key to any business lies in its workforce. While many hair salons offer similar products and services, only a few stand out due to exceptional customer service, exceeding customer expectations. Training your staff in customer care can give you an edge over your competitors, and if you can make clients feel truly special and well cared for, they may become loyal, repeat customers. In some cases, hiring an experienced manager to oversee day-to-day salon operations may be an effective solution.
Design a stylish website. If your salon has a sleek, modern website, it will build customer trust even before they've stepped through the door. Hire a web designer to create a visually appealing, user-friendly website and promote it on your Facebook page and other advertising platforms.
- Be sure to include a service list with detailed information about each offering.
- Include high-quality color photos.
Keep your equipment clean and up-to-date. Ensure that your salon meets all environmental hygiene requirements and complies with regulations. Besides disinfecting tools, make sure to have someone sweep the floor, clean the windows, and wash the sinks regularly. Occasionally, refresh the furniture and fixtures to maintain a sophisticated and high-class appearance for your salon.
Find ways to retain your customers. Offering the latest products is a great way to attract new customers, but to keep them coming back regularly, you’ll need to ensure your haircuts are consistently excellent. There’s nothing worse for your salon than delivering a bad haircut or poor dye job, as customers will undoubtedly write negative reviews and share their experience with others.
- Respond to complaints promptly as soon as they arise. Even if you've done everything perfectly, customers may still not be fully satisfied. It's best to offer to redo their service for free or refund their money rather than subtly ushering them out the door.
- Adjust your business practices to maintain profitability. As you gain more experience, consider raising your prices and hiring more skilled stylists.
