Are you thinking of starting your own beauty salon? Learn how with these steps.
A beauty salon business can be very profitable. According to the U.S. Small Business Administration, as of 2014, the hair care services industry has a combined annual revenue of approximately $20 billion and that number is expected to grow over the next 5 years, rising to more than $58 billion by 2019 as disposable income increases in the United States.
If you are considering a beauty salon business, understand that there are a lot of things that have to be in place for you to be successful. Salon owners face pretty stiff competition and even the best salons go under. Therefore, it is important to know what steps to take to open your own salon.
Develop a Business Plan
A business plan is a must for any business. A business plan is a document that serves as a roadmap for your business. It will help guide your business to success. A business plan is a detailed outline of your plan for your new business. It should describe your mission, financial plan and operational strategy.
Once you have a business plan in place, you will need to secure funding. Figure out how much you will need and where it will come from. There are several options for funding for salons. You can approach investors, try to borrow money through a bank loan or ask family and friends for loans. It is almost impossible for start-ups to qualify for business loans right away so you will probably have to come up with capital in other ways, at least initially. After you have been in business a year or more, you will have more luck with credit unions and banks.
Find a Location
Choosing a location for your salon is a very important decision. You will want to choose an area that is easily accessible and that has plenty of traffic. The area should be well-lit, safe and attractive. It also helps to have adequate parking and other retail businesses close. Most salons are located in storefront properties, shopping centers and freestanding businesses or malls. Your choice of location will be determined in part by how much funding that you have. Mall locations tend to be the most expensive.
Develop a Marketing Plan
A marketing plan is essential for any successful salon. Spending time developing a marketing plan will make a big impact on your business. Choosing a marketing firm to help you develop a solid marketing plan is well worth the small investment.
Stay tuned to Salon Marketing Gurus for more industry tips and trends.