7 Steps Towards Opening Your Own Hair Salon
Many of us have dreams of opening up our own businesses, whether it be a simple stay-at-home online company, photography studio, or maybe a restaurant. Of course, the risk levels associated with each of these very different examples varies, and it’s recommended that you build a business plan first to ensure your chances of success are as high as possible!
How about your own hair salon?
Maybe your dream is to become like Adir Abergel, who styles the sacred locks of actresses like Gwyneth Paltrow, Anne Hathaway, and Reese Witherspoon (and can charge over $600 per cut!). Or perhaps your dream is simply to be your own boss with your own place, and success you can call your own. The Bureau of Labor Statistics estimates positive growth for this sector over the next five years. So what are the first steps in starting this new life adventure?
Choose your business model
Do you want to open your own brand-new one-of-a-kind place, or buy a franchise or an already-established shop? As well, you have to decide if your chairs will be rented out, or be based on commission. To start out as a small business, renting may be a good option because the stylists will be independent contractors and will be responsible for their own insurance. However, if you think you’d like to expand someday, a commission might be the better way to go. Avoid switching your structure after starting the business – there will be a risk of losing your employees!
Another important note, unless you have plenty of resources yourself, it’s a good idea to find a strong business partner, whether that be an investor, a mentor group, trustworthy friend(s) or group of colleagues. Your chances of success will be higher, and moral support from someone who is aiming for the same goals when things get tough will help push you through those hard times.
Have a Business Plan
Don’t just build this business for the sake of doing it, or for the money (which there may or may not be a great abundance of as an owner). Have a vision, and a unique identity apart from your competition (of which it is aplenty in this industry).
You’ll likely need time to get established if you’re starting from scratch, so if this is your only source of income, make sure you have a few months-worth stashed away (six months or more). Obtaining a small business loan through a bank will be difficult without a track record, but private term loans are a bit easier and much quicker to obtain if you have a solid credit rating, and a good history of business is always a plus. Fill out our simple form to see if you qualify.
Select a great space
A hair stylist of 23 years suggests not to invest too much money in opening the business, and a good location is more valuable than a crazy awesome renovation. Walk-ins can make your bottom line happy. So, pay a little extra for a convenient location, and make the place easy to keep clean with quality replaceable components. If renting, make sure you understand the lease and all extra expenses you may have to pay to make the place what you need it to be. Ask a general contractor to examine the lease and space before you sign anything so you have an estimate of potential costs.
Definitely do your research before choosing your equipment to get the best price for the quality you’re looking for. However, if you think you won’t be able to cover all the expenses right away, consider Equipment Financing. This works very well for startups and keeps your limited cash supply free for the other things you may need it for.
Set a Budget and Set Goals
Budgeting is so important especially for a new business. Do all the math and make sure you’re very clear on what it’s going to take to make a profit. Accountants are great for this, as well as helping you set goals to ensure the business grows the way you want and at a pace, you’re comfortable with.
Lastly, ensure you peruse your state government’s websites to apply for all the permits required to open a hair salon. It’s recommended that you consult a local lawyer who knows everything needed for this process. It’s also very helpful to join organizations like the Professional Beauty Association, where you can gain valuable industry insights and new ideas for your business.
So, are you ready to start your own business? This can be an exciting (and scary) time! Contact Worldwide Capital Management with any questions you have about small business financing or private business loans and we’ll be happy to help you out!