A well-operated salon can be a profitable business regardless of the state of the country's economy. People are always willing to pay for services that cannot be replicated equally well at home, and hairdressing is on the list of services that most people want. Running a salon is a little different from working as a stylist or hair stylist. You need to form a company, hire employees, attract customers, and make sure they remain satisfied with your salon services. Keep reading to learn how to set up your own salon.
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Part 1 of 3: Setting Up a Business
Step 1. Decide to start a new business or run an established business
Setting up a salon from scratch is a great option if you want a challenge, but you can also build an established salon if you prefer a less risky option. Here are the options:
- Starting a new business: You need to learn a location, create a salon name, attract customers, and run the business without a customer base or brand.
- Open a franchise salon: Choose a franchise salon or franchise with an established brand and open in a new location. You must follow the franchisee's policies, so you have little freedom in making business decisions, but you benefit from using a brand or name that people are familiar with.
- Buy an established salon: If you know a salon whose owners are ready to sell their business, you can buy and take over the salon. You don't have to find a new location or buy equipment. However it is very important to investigate the reason the owner is selling his business and make sure that you are getting a good price.
- Renting salon space: a popular option these days is to open a salon and rent out the space to hairdressers who are responsible for their own equipment and customers.
Step 2. Study your competitors
Identify a group of salons that are already successful and have a target customer similar to yours, and see what makes them successful and what they lack. Go to the salon as a customer, and get a feel for what your customers expect, and how you can provide the service they expect. You can adapt this solution to your business. Leave the things that don't work, and adapt what works for you.
Step 3. Learn about business inauguration
Each region has slightly different requirements for setting up a small business. Visit your local court office or check out the website of the Micro, Small and Medium Enterprises (MSME) administration office for requirements to legally run your salon business. Below are some things you may have to do to legally register your business:
Register a business license. To set up a business, you must obtain a permit from your city of residence. Go to the local court, or check the MSME website to find out how and where to get the permit. You will fill out the required form and submit it along with the set fee for obtaining a business license
Step 4. Get the tax number
This is a mandatory step when you are setting up a small size business. Visit the tax office website for information on how to get a tax number.
- Create a business plan. This is a plan that details all the sides of how you plan to run your business, what the expenses will be, and what kind of competition you will face. You may need this business plan to get a loan and a business license.
- Decide how to finance your business, either by making a loan or using your own funds. Do some research to determine the amount of money you will need to get your business up and running. Include in the calculation of rent, employee salaries, equipment costs, and maintenance product purchases.
Step 5. Rent a place
The salon should be in a busy area with other shops suitable for your business nearby (e.g. boutiques, lunch spots and other stores that attract similar customers). Find a place with easy parking and a nice storefront view.
- Make sure the place has fittings for sinks and other appliances. You need to provide more budget for renovation.
- Ask local business owners about the challenges they face in the area, and weigh the pros and cons before renting a place.
Step 6. Purchase equipment
You can buy new equipment or look for other used salon equipment. Make sure everything is still working properly and matches the interior look you want. Make a list of things you need and plan your budget according to that list.
- Decide how many treatments you want. How many seats? how many places to wash hair?
- The equipment you use must be good. If you buy a used one, make sure the tool works well and allows you to create all the latest styles.
- Decide which product to use. Using a well-known brand may attract customers, but these products can be very expensive.
Part 2 of 3: Designing Spaces and Hiring Hairdressers
Step 1. Create a relaxing space
Salon atmosphere is very important for customers. Cutting hair is what customers look forward to, so the whole experience should be calming and rejuvenating. If your room looks boring and uninviting, customers will move to another salon.
- Determine the arrangement of colors and decorations. Choose a fresh, bright paint color, decorate it with a classy painting or fun object.
- Provide high-quality mirrors and lighting that makes the room bright and clean.
Step 2. Find an experienced hairstylist
Decide how many hairstylists you need and ask around or create a job advertisement. Make sure you hire employees who have graduated from beauty school and have experience cutting hair. Look at the references and test their skills before you hire.
- Decide if you want your stylist to bring their subscription. If so, ask their customer base.
- Hire employees with the special skills you're looking for, like making great highlights or cutting kids' hair.
Step 3. Compile your list of services
Each salon has a slightly different menu of services to offer customers. Customize your menu with current trends with the expertise of your hair stylist. In addition to women's, men's and children's haircuts, you can consider the services below:
- Colouring hair.
- Curling and straightening hair.
- Special services (wedding reception, latest treatments, etc.)
- Consider spa services, such as nail, facial, skin, or massage treatments.
Step 4. Determine the price
Determine how much the service will cost, and whether you set a tiered pricing system according to the experience of the hairstylist. For example, you might charge more if the haircut is done by an expert stylist than if it is done by a junior stylist. When you determine the price, you can consider the following things:
- Manufacturing and product costs. If you offer good service and expensive products, you need to charge more than junior hairdressers and cheaper products.
- Competitor prices. Look at the prices of other salon services, and try to set prices in a range that is affordable but you still make a profit.
Step 5. Decide how you will handle your work schedule
There are several computer applications for managing salons such as Neohair.com, Shortcuts, Rosy, Envision and Hair Max. Most have similar functions: customer arrival management, personnel, finance, inventory and procurement. Some applications, such as Salongenious, provide more complete services, namely reminding customers about their arrival schedule using SMS or saving photos of the customer's hair styling.
Part 3 of 3: Running a Salon
Step 1. Determine opening and closing hours, and customer service policies
The salon industry is getting further and further away from working hours from 9-5 every working day. Salon services are now more flexible. Some salons are open late, some are open on weekends. You should note that capturing customers requires more flexible opening times - and making your salon more tailored to your customer's needs.
- Many people want a salon that is open after work, because they need to attend an event and need to look good. Think about offering services with advance bookings and additional fees, so you can rotate your employees so that your salon can open at times that are not normally open.
- An important part of any business are people. Many hair stylists offer similar quality products and services, but few salons are different that not only cater to the needs of their customers, but offer even more. Therefore, practicing customer service to your employees can help you stay ahead of the competition, and if you can make your customers feel very, very special and well cared for, they will likely become repeat and loyal customers. And in many cases, hiring an experienced manager who can manage your employees and the day-to-day operations of your salon is a good business decision.
Step 2. Advertise your salon
When your salon is up and ready to open, this is the perfect time to start attracting customers. Spread the word through friends and family, put up banners in the area, and consider advertising in local newspapers, magazines and blogs. In addition, consider the following ways to advertise a salon:
- Promote on Facebook and Twitter. Create a Facebook page with information about your business, and update it regularly with news and discounts.
- Offer a service to a local celebrity and have him spread the word.
- Encourage your customers to write reviews or reviews on Yelp, as many new customers will see reviews before making an appointment.
Step 3. Create a modern website
If you have a modern website, you will build customer trust before they even enter the salon. Hire a web designer to create a searchable website, and put the link on your Facebook page and other ads.
- Enter the service menu with its description.
- Create high quality color photos.
Step 4. Keep your equipment clean and new
Make sure your salon meets sanitary and regulatory requirements at all times. In addition to cleaning the tools you use, keep the floor clean, wash the mirrors and the hair dryer. Paint and change the furniture regularly so that the salon is always chic and looks luxurious.
Step 5. Keep customers coming back
Offering the latest products is a great way to keep customers coming in, but to keep them coming back you have to provide top-notch styling service all the time. There's nothing worse than a bad haircut or hair coloring, because customers who experience it will write bad reviews and tell their friends.
- Handle complaints directly. Even when you do your job perfectly, the customer won't be happy every time. Offering a free service or refunding a customer who complains is better for your business than asking them to leave.
- Keep your business practices profitable. As your experience increases, increase the price and hire better hairstylists.
