How to start a beauty salon business
If youโve been daydreaming about opening your own beauty salon, maybe it's time to snip those thoughts into reality. But how do you start a salon business thatโs truly a cut above the rest?
Launching a salon is a lot like perfecting a new hairstyle. Thereโs a bit of prep work, some serious styling (and by that, we mean planning!), and a dash of creativity to make it all shine. Between researching the latest trends, nailing down licenses, hiring your glam squad, and making tons of decisions, youโll be on your way to opening those fabulous doors to clients in no time!
In this blog, weโre spilling the tea on everything you need to know about starting your salon. From a handy dandy opening checklist to a glam-packed guide answering all those burning questions, weโve got your back! Letโs get started.
Opening a salon checklist
Did you know that according to 2024 data from the US Bureau of Labor Statistics, 20.4% of businesses fail in their first year? But donโt let that scare you away from your dream of opening a beauty salon. With the right prep and know-how, you can thrive in the salon industry. Use this checklist to guide you through the essential steps of starting your own successful salon business.
A solid beauty salon business plan
A killer business plan is like your salon's roadmap. It outlines your goals, strategies, and the details of how you plan to succeed. A good business plan will give you a personal confidence boost, proving to yourself that youโve thought of everything, and giving structure to the way you run your business. But if youโre planning to borrow money to start your salon, your business plan, with detailed financial projections, will be vital to your success, because iit gives a lender confidence that youโve thought seriously about every aspect of your business.
Whatโs inside your business plan?
- Executive summary: This is your salon's elevator pitch โ a quick snapshot of what youโre all about. You want it to be enticing enough to make anyone want to read more. Include your salonโs name, location, and the services youโll offer.
- Market analysis: A detailed look at your local competition that helps you to identify your target market. Are you catering to busy moms, trendy teens, or the luxury crowd? Knowing your audience will help you tailor your salon services and marketing strategy.
- Services Offered: Be clear about what beauty and hair services youโll provide. Will you focus on haircuts, color treatments, or skincare? Donโt forget to mention any unique offerings that set you apart from the many salons out there!
- Marketing strategy: How will you get the word out about your fabulous new salon? Consider using social media marketing to showcase your skills, run promotions, and engage with potential clients. You want your salon to be the talk of the town!
- Operational plan: This section covers the day-to-day operations of your salon space. Think about staffing, salon hours, and the software youโll use for scheduling appointments and managing finances efficiently!
- Financial projections: Time to get real about those numbers. Include your startup costs, fixed expenses, and revenue forecast. This helps you understand when youโll break even and start turning a profit. Just as importantly, your projections will allow you to keep testing whether the assumptions you made at the start were realistic, or whether you need to adjust your expectations upwards or downwards.
TIP: Check out some of the other salon owner responsibilities youโll have once you open your doors!
Register your business trademark
This is where the magic happens, and it all starts with the IRS. To get your Employer Identification Number (EIN), youโll need to fill out a quick application. This little number is super important because itโs what youโll use when filing taxes and handling payroll.
While youโre at it, think about trademarking your salonโs name. This is a smart move to protect your fabulous brand! By trademarking, you ensure that no one else can snatch up your name or use it in a way that confuses your loyal customers. Plus, it adds a level of professionalism that shows you mean business.
Find the ideal location for your customers
Ready to find the โitโ spot for your own salon thatโll have clients flocking faster than a fresh blowout on a Saturday morning? Letโs talk about how to secure the perfect location!
First up as a new salon owner you've got to think about your target market. Are you all about snazzy cuts for busy professionals who need to look fab on their coffee runs, or is your vibe more about indulgent pampering for the self-care warriors? Pinpointing who you want to attract will help narrow down the areas that match your brand. For trendy urbanites, a spot near chic boutiques and bustling cafes is golden. If youโre catering to families, look for locations close to schools or playgrounds โ parents love convenient beauty options!
What about foot traffic? You want a hotspot where people canโt help but notice your salon. Think shopping districts, farmerโs markets, or community events, places where the crowd gathers and could be tempted by your glowing salon sign.
Keep an eye on the competition! A little friendly rivalry can be good, but you donโt want to be drowning in a sea of similar beauty salons. Scope out the area and look for gaps that you can fill with your unique offerings.
Finally, the neighborhood vibe is key! Your salon should reflect its surroundings while also standing out. Whether youโre going for a glam and modern feel or a cozy, welcoming space, the right location will set the perfect tone for your beauty oasis.
Equip your salon with the essentials
The furniture should reflect your style, whether itโs modern glam or cozy charm. You want clients to sink into those plush styling chairs and feel like theyโre in for a treat. But itโs not just about looks; comfort is key! A fabulous chair can make all the difference during that three-hour balayage.
And letโs not forget the all-important salon equipment. Investing in high-quality hair dryers and styling tools isnโt just a luxury; itโs essential for delivering those stunning looks. Picture yourself wielding a sleek flat iron that glides through hair like butter, leaving your clients feeling fabulous and ready to hit the town. Plus, if your wash stations arenโt as comfy as a cloud, you might find clients squirming instead of enjoying their shampoo.
Now, what about those must-have beauty products? Stocking your shelves with the latest and greatest will not only elevate your services but also entice clients to buy their favorites to take home. When they see that shiny new hair serum that promises to transform their locks, trust me, theyโll be reaching for their wallets faster than you can say โadd to cart!โ
Describe clearly your services and products
Whether youโre all about those stunning haircuts, creative color transformations, makeup transformations, or trendy styling techniques, you want each service your beauty business offers to sparkle with personality.
For instance, instead of just saying โwomenโs haircut,โ try something like, โSnip, snip! Our expert stylists will help you find the cut that flatters your face shape and brings out your inner goddess. Say goodbye to bad hair days!โ
Next up is your treatment menu. Maybe you offer rejuvenating deep conditioning treatments or smoothing keratin treatments that make hair feel like silk. Use enticing language that lets clients envision their hair looking and feeling fabulous, like โTransform your look with our deep conditioning treatment that hydrates and revives tired hair, leaving you with a radiant shine thatโll turn heads!โ
Hire the right amount of team members
Ready to assemble your dream team? Your wage roll will be one of the biggest costs, so your business plan should set out who youโll be recruiting, when, how much theyโll cost and what value theyโll bring to your salon. Because the right staff can make or break your salon, and you want a crew thatโs as fabulous as your services!
Hereโs a quick breakdown of what you might need:
- Stylists
- Beauticians
- Receptionist
- Assistants
- Nail technicians & estheticians
- A marketing and branding guru who specializes in the hair and beauty industry
For payroll, youโve got three options: do you want to tackle payroll yourself, use payroll software to make life easier or pay to outsource to another company? If you love crunching numbers and keeping everything organized, handling it in-house might work for you. But if youโd rather focus on your salonโs day-to-day operations, consider investing in payroll software. It can save you time and headaches by automating everything from tax calculations to direct deposits.
Create a marketing plan
A solid marketing strategy holds everything together and makes your salon shine. Here's what you need to do:
- Define your brand identity: Are you all about luxury and pampering, or do you embrace a trendy, edgy vibe? Your brand identity will guide everything from your salon's decor to your marketing materials. So, slap on some color and let your personality shine!
- Build your online presence: In 2024, just having a brick and mortar location isn't enough to make your salon the latest hot spot. Create a sleek site that showcases your services, team, and pricing. Donโt forget to sprinkle in some stunning before-and-after photos! And while youโre at it, set up profiles on popular social media platforms like Instagram, TikTok, and Facebook.
- Content is queen: Start a blog or create eye-catching posts sharing beauty tips, trends, and salon news. Whether itโs a โHow to Choose the Right Hair Colorโ guide or โMust-Have Products for Gorgeous Locks,โ valuable content positions you as a beauty authority.
- Use email marketing: Regular newsletters are a fantastic way to keep clients informed about promotions, new services, or salon events. Throw in some exclusive offers just for your subscribers to keep them excited!
- Foster local partnerships: Collaborate with local businesses, such as boutiques, gyms, or spas, for cross-promotions. Think about hosting joint events or offering referral discounts. It's all about building a beauty-loving community around your salon!
- Run promotions and contests: Everyone loves a good deal! Create special promotions, seasonal offers, or contests to engage your clients. A โRefer a Friendโ discount or a giveaway for a free service can generate buzz and attract new clients.
How much does it cost to open a salon?
According to The Salon Business, launching your beauty haven can set you back anywhere from $62,000 for a basic setup to a whopping $500,000 for something a bit more glam. Your costs can vary widely depending on a few fab factors, including:
- Salon size
- Location
- Business license and permits
- Business structure
- Equipment
- Operational costs
- Marketing strategy
Since you want your salon to be profitable as soon as possible, a little planning goes a long way.
Start by figuring out your fixed costs, which are the expenses that donโt change, no matter how many clients you have strutting through your doors. Then there are variable costs, which are a bit more flexible and can help you save some cash. These change based on how busy your salon is and include labor costs, products and tools and shipping and delivery costs.
Once youโve got your expenses all figured out, create a revenue forecast for your first year and identify your break-even point. This is where your earnings will finally match your expenses.
A carefully thought-out cashflow forecast will help you to understand if there may be times when you need access to small business finance, and there are lots of alternative options to consider that may suit your salon.
Essential salon equipment
Hereโs a quick rundown of the must-have equipment thatโll help you serve up fabulous looks to your clients:
- Styling chairs
- Hair dryers
- Hair styling tools
- Beauty products
- Shampoo bowls
- Mirrors
- Trolleys
- Retail POS system
- Salon payment processing tech
- Sanitizing equipment
- Retail display
Check out our full salon equipment list for more!
What is the best POS software for beauty operations?
Enter Epos Now, the ultimate beauty salon POS system thatโs here to revolutionize your business operations! From appointment scheduling to inventory management, itโs your all-in-one solution that keeps everything running smoothly, so you can focus on what you do bestโmaking your clients feel fabulous.
- Easier management: Say goodbye to stress and hello to efficiency! Save up to 10 hours a month on business management and staff admin. More time for coffee breaks? Yes, please!
- Save time: With Epos Now Payments integration, youโll save over 4 hours each month during sales. That's like a spa day you didnโt know you needed!
- Boost your bottom line: With the Epos Now Loyalty integration, you can enjoy an average 13% increase in revenue. Hello, loyal customers!
Our user-friendly system helps you manage every aspect of your salon business. With cloud-based POS software, you can set up promotions, manage your website, and even launch loyalty programs to keep those clients coming back for more.
In the beauty biz, itโs all about your clients, right? Epos Now makes customer management a breeze. Accept online bookings seamlessly, edit prices, and apply discounts on the fly. Plus, with Caller ID, you can provide a quicker, more personalized service.
So, if you're looking to elevate your salon game, look no further than Epos Now. Itโs time to shine brighter and work smarter! ๐
FAQ about salon business
How can I manage my salon finances better?
Keep track of every dollarโincome and expensesโusing budgeting tools or salon software (Epos Now, anyone?). Keep a constant eye on your cash position โ do you have enough in the bank to meet your immediate liabilities? โ and stash away some cash for emergencies. Review your finances regularly to catch trends and make adjustments. With a little planning, youโll keep your salonโs finances in tip-top shape!
What licenses do I need to open a beauty salon?
Youโll need a cosmetology license and any other occupational and professional licensing for you and your staff to offer services legally. A business license is also a must to operate in your area. Depending on where you are, health and safety permits might be required, too.
What are the best services to offer at a beauty salon?
Start with haircuts, coloring, and stylingโclassic crowd-pleasers. Nail services like mani-pedis are always a hit. Donโt forget waxing, facials, and makeup for special events. To really stand out, consider trendy options like balayage or keratin treatments.