A well-run hairdressing salon can be quite a profitable business, regardless of the economic time. People are always willing to spend money in exchange for services they can't do at home properly, and the beauty industry is at the top of the list. Running such a shop is not like working as a simple hairdresser. In fact, you need to set up a business, hire employees, attract customers and make sure they are satisfied. Read on to learn about the advantages and disadvantages of opening a hairdressing salon.
Steps
Part 1 of 3: Setting Up the Business
Step 1. Decide whether to start a new business or manage an existing one
Creating a hair salon from scratch is a great solution if you like challenges, but you can also take over an already well established salon if you prefer a slightly less risky alternative. Here is a rundown of the various options.
- Start a whole new business - you'll need to locate the venue, come up with a name, attract customers and run the business without an established customer base or brand.
- Open a franchise salon: Choose an established chain of beauty salons and open a new branch. You will have to respect the policies of the parent company, so you will have limited freedom of movement in business choices, but greater advantages in working with a brand recognized by the people.
- Take over an existing salon: If you know of a business that the owners are ready to sell, you can buy and take over it. You will not have to find the shop or invest in the necessary equipment. However, to make sure you are getting a good deal it is important to study the reasons why the manager intends to sell.
- Manage a "booth rental salon": this is a "coworking" job choice that allows young hairdressers to consolidate their style. You can open a salon and rent stations to other hairdressers who will have the task of bringing equipment and customers. In the US it is already a trend!
Step 2. Check out the competition
Choose a series of shops that are already established in this field and that have a target of customers similar to yours, evaluating the aspects that have contributed to their success or the most incomplete ones. Go as a customer, trying to get an idea of what your customers will expect and how you could provide the same services. Then try to efficiently adapt these solutions to your business. Don't consider what doesn't work and adopt what might work for you.
Step 3. Take care of the legal matters
Each country regulates the opening of small businesses in different ways. Decide, perhaps with the help of a trusted accountant, whether to open a private company as sole owner or in a company, and complete the associated bureaucratic process: each type of legal structure has different rules to follow. Here, in summary, is what you will need to do:
Go to the Revenue Agency in your area and have the VAT number associated with your company released. In addition, you must register with the Chamber of Commerce and present the regular license, as well as pay an annual membership fee. Finally, you will need to open a corporate trading account with a credit institution that offers good incentives
Step 4. Request your VAT number
This is a mandatory step when starting a business. The VAT number is the number you will use when paying the taxes associated with your business. Visit the Revenue Agency website for information on how to obtain it.
- Develop a business plan. It is a plan that defines every aspect of running your business, the expenses you will face and the challenges you will face depending on the competition. It may be necessary to produce a business plan to obtain a loan or license.
- Find a way to finance the business by borrowing or using your personal resources. Do some research to understand how much money you will need to start the business and keep it running. Pay attention to the rent, salaries, expenses related to equipment and products.
Step 5. Rent a room
A hairdresser should be in a convenient and busy location, no doubt close to other stores that fall into the same business sector (such as boutiques, eateries, and other places that attract similar clientele). Look for a place that provides parking facilities and looks good from the street.
- Make sure you have all the necessary hookups for sinks and other equipment. More money may need to be invested in the renovation.
- Talk to other business owners in the area about the challenges you will face, and also work out the pros and cons before renting a venue.
Step 6. Buy the equipment
You can buy them new or get used material from other salons. Make sure everything is in good condition and matches the style you have chosen. Make a list of everything you need and make a quote.
- Imagine how many seats you want to have. How many sinks do you need? How many chairs and mirrors?
- The tools you use should be first choice. If you buy them used, make sure they work correctly and allow you to create the most modern hairstyles.
- Decide which products to use. Well-known branded products might attract customers, but a brand's best lines can be quite expensive.
Part 2 of 3: Designing the Space and Hiring Hairdressers
Step 1. Create a relaxing space
The atmosphere at a hair salon is extremely important to customers. Cutting hair is a pleasure that people look forward to, so the climate should be comforting and regenerating. If the venue seems bland or uninviting, customers may turn to another salon.
- Decide on the color scheme and decorations. Paint the walls in fresh, vibrant colors and decorate with tasteful paintings and pleasant furnishings.
- Invest in high-quality mirrors and lights that give the feeling of a bright, clean space.
Step 2. Find experienced hairdressers
Decide how many employees you need by asking around or posting job advertisements. Make sure they have a professional hairdressing degree and hair cutting experience. Check their references and offer a try before hiring them.
- Decide if hairdressers can take clients with them. In this case, inquire about their clientele.
- Hire people who have the skills you're looking for, such as the ability to do great highlights or cut hair for kids.
Step 3. Create a list of services
Each salon has its own menu of services to offer to customers. Personalize yours in relation to current trends and the professional skills of your employees. In addition to the basic cuts for women, men and children, you may want to consider offering the following:
- Dyeing;
- Permanent and ironing;
- Special services (brides, latest generation treatments and so on);
- Consider adding other beauty services, such as manicures, facial cleansing and hair removal, or massages.
Step 4. Set the prices
Decide how much you intend to get paid and if you want to have a differentiated pricing system based on the experience of the individual hairdresser. For example, a cut made by an experienced co-worker might cost more than one with less experience. When setting your prices, take the following into consideration:
- The cost of labor and materials. If you offer high-quality services and expensive products, the costs will be higher than hiring inexperienced hairdressers and buying lower-end products.
- Competition prices. See how much the services of other salons cost and try to stay within an affordable price range, but without penalizing your income.
Step 5. Decide how to handle the job
There are also numerous computer applications to manage salon operations, such as Neohair.com, Shortcuts, Rosy, Envision, and HairMax. Most of them have similar functions: managing customer visits, personnel, financial aspects, inventory and restocking. Some of them, like Salongenius, have additional features, such as reminding customers of their appointments via text message or saving photos of their hairstyles.
Part 3 of 3: Managing the Salon
Step 1. Decide on working hours and customer service
The commercial sector of hairdressers increasingly seldom fits into a rigid working framework between 9 in the morning and 5 in the afternoon. Salons are increasing their flexibility. Some open in the afternoon and others even all weekend. You have to keep in mind that the struggle for customers often requires more flexible working hours, so that the salon is more accessible to their needs.
- Many people require hairdressers to be available after their regular day work hours, because that's when they have appointments and events to attend with looking flawless. Maybe you can consider offering this service just by booking in advance and increasing the rate, or you can create shifts with the staff so that the salon is open at times when it usually isn't.
- The most vital part of any business is the people. Many hairdressers offer similar products and services, but the salons that stand out for their uniqueness not only meet the requirements of the clientele, but exceed them. As a result, training your employees for customer service can help you outrun the competition. And if you can make customers feel truly special and pampered, they will likely build loyalty. In many cases, it can be essential to hire a manager with some experience, who can manage the staff and the salon every day.
Step 2. Promote your salon
When the salon is ready, it's time to start attracting customers. Spread the word to friends and family, post signs around town, and consider advertising in local newspapers, magazines and blogs. Also, consider these other channels to make your business known:
- Promote it on Facebook and Twitter. Open a Facebook page by entering information about your salon and update it regularly with news and offers.
- Offer services to a few celebrities in your city and ask them to help you spread the word.
- Encourage customers to write reviews on Yelp, as many new customers check out the reviews of others before making an appointment.
Step 3. Create a modern website
If you have a sleek, modern website for your business, you can gain customer confidence even before they enter your salon. Hire a web designer to create a website that looks good and is easy to navigate. Post the URL on your Facebook page and in your ads.
- Include a menu of services with their descriptions.
- Take high-quality, full-color photos.
Step 4. Keep equipment clean and refurbish when needed
Make sure your facility meets sanitation requirements and related rules. In addition to sanitizing the tools used, it is necessary to sweep the floor and wash the mirrors and sinks regularly. Paint and renew from time to time so that the salon always conveys an elegant and refined atmosphere.
Step 5. Get customers to come back
A great way to attract new customers is to offer the most modern products, but to keep them coming back you'll need to provide amazing hairstyling services every time. There is nothing worse for a business of this type than making poor quality cuts or dyes, as there is a risk that customers will write negative reviews and tell friends and acquaintances about them.
- Respond to complaints promptly when they arise. Even if you do your job perfectly, customers may not always be happy. For the sake of your business, offer a free service or refund instead of putting customers at the door.
- Run your business well to keep it profitable. As you gain experience, you can raise your prices and hire better hairdressers.
