Important Factors in Starting your own Salon business
Prospects for businesses in the service industry, particularly personal care businesses, remain bright despite the state of the economy. So if you’re planning to open your own salon, there’s no day like today. To make sure your salon succeeds and doesn’t just fizzle out, though, there are some factors you need to consider. Your decision on these factors of your salon can determine your salon’s long-term profitability and success.
- How exactly do you want to open your own salon? You have three options to go about this: you can open a franchise hair salon, buy an established salon, or establish your own salon. Opening a franchise salon is sometimes easier because it gives you an instant reputation, ensuring a somewhat steady supply of clients. The third option is particularly attractive for many because it allows total control over every aspect of the salon.
- What are your planned operating hours? This might sound like a minor detail, but your salon’s operating hours determine the number of clients you can accommodate each day. In turn, this affects your salon’s profitability. Businesses in the personal care industry don’t exactly stick to a 9-to-5 schedule; most salons today are open seven days a week and on some holidays, too. Plus, your salon’s operating hours will probably have to be extended during prom season and peak wedding season. Take this into consideration so you can properly plan for overhead costs and staffing.
- What are your prices going to be? The prices of your salon’s services have to be just right; too high and they drive potential customers away, too low and you end up not making profit. Your prices will usually depend on a number of factors, including labor and supplies costs, your salon’s overhead costs, and profit.
You’ll also have to consider the demographics of the area where your salon is. If your salon is in a neighborhood of well-to-do families, you can price your services accordingly and offer more high-end services. If your salon is situated somewhere with average-income young families, you’ll want to make your prices more affordably and offer more basic services.
- What services are you going to offer? Is your salon going to offer just haircutting and styling services? Or do you plan to offer nail and foot care services, too? Maybe you want to offer spa services like hair removal, tanning, eyebrow shaping, facials, massages, and wraps, too. Some salons even offer makeup services, including application, eyebrow tinting, and ear piercing.
Knowing the type of services you want to offer is important, because the services you offer determine the equipment you need to buy, which greatly figures into your expenses for supplies. This also affects the size of your salon, as you’ll need additional space for a wet room and spa equipment.