Did you know that eight out of ten new salon businesses fail in their first year? The hair and beauty industry is an extremely competitive field to get started in. If you are thinking of opening your own business, you need a solid plan to survive.
If you really don’t know where to begin, we can help. Read on as we discuss five tips for starting your own hair salon.
Create a Hair Salon Business Plan
While you may think starting your own salon is easy, the business plan is not. The plan should cover the first year, three years, then five years. You will need it to grow your business and crucially, to secure funding.
The plan should include key factors such as location, competition, marketing, and expected revenue. Location is very important and can be the deciding factor on if your salon will stay open. The better the location, the higher the price and cost.
You will need to include all of this in your budget, making sure you have enough money to keep you afloat in the first six months when business is slow. A budget should include rent, startup costs, materials and equipment, legal work, and permit costs along with insurances.
The second task when starting in the hair and beauty industry is financing. If you don’t have the money outright from savings, then a loan is the only option.
Small business loans are low interest and can be paid back quickly. However, getting hold of them is very competitive. Microloans are similar but you do not need the excellent credit history that you need to have for SBA loans.
Another method is equipment financing. Lenders will give you the equipment and you pay back the value with interest.
Choose Your Staff
When choosing staff, make sure you select people who have a similar mindset. Start with a skeleton crew, then build the workforce as the business expands. You want to employ a range of experiences, from juniors up to senior stylists.
Check the Competition
As a hairdresser, you are in a very competitive market. If you know about your competitor’s services and pricing, then you can match what they do and improve upon it. You may undercut them slightly or offer services they do not have.
Finally, you need to let the salon customer know that you are open for business. This comes down to marketing.
Start by building a brand. Select a name and logo that reflect your aesthetic and mission. After this, you can split your campaign into two distinct areas, traditional and digital marketing.
Traditional marketing is the tried and tested route, such as advertising in print media and on advertising boards. Digital is getting your business online and will involve building a website along with a social media following.
Your hair salon opening day should be a big event! Make sure you have incentives for people to come in and see what you do. Advertise it heavily, and try to get people signed up for your services as quickly as possible.
Did this article help you out? If so, then the rest of our blog has lots of advice on starting a business. Visit us today and lets us help your company grow!