Are you considering starting a personal-services business? One smart choice is a hair salon.
The hair salon industry is massive. In 2018, there were 996,000 hair care businesses in the United States. Those companies generated $46 billion in revenue and employed 1.3 million people. From 2013 to 2018, the industry has seen a 2.4 percent average annual growth rate.
It is a business choice that is a cut above the rest.
As seen in the recent post, Have Entrepreneurial Dreams? Watch These 11 Industries in 2019, there are many options for you to consider. Here are some of the key tasks when launching your own hair salon.
Choose a Business Model
The salon experience has changed over the years, and salon owners have had to adjust business models accordingly. There is a lot of variety from which to choose. Many salons are moving from hiring employees to renting space – or a chair – enabling stylists with an affordable option to provide service to their customers. There are luxury and value salons to accomodate consumer budgets, and there are also niche services, from blow dry to beard/moustache grooming.
Create a Business Plan
You need a roadmap, and a business plan is the best way to plot your course to business ownership. Business plans require a bit of work – researching the nearby competition, understanding the local marketplace in terms of prices, hours and services provided, and developing a marketing strategy.
Establish a Budget
You need to consider how much business funding you will need based on the type of business you create. There will be one-time costs, such as a business purchase or franchise fee, capital expenses such as equipment, and ongoing expenses such as lease or rent payments, utilities, credit card processing, supplies, and marketing.
Identify Your Customers
You will need to get a sense of your local market and the customers they attract. Is there a need for an upscale salon with spa services in your target market? Does your area need a more affordable option? Do you want your business to focus on women, men, families, or all of the above?
Find the Right Location
Location is everything with a brick-and-mortar business. You need a spot that has high visibility, good traffic, and ample parking. You also want a site that is near where your target customers live, work, or shop. Can’t find the right location? Mobile businesses, including hair salons, are trending.
Get Experience
You will benefit from having some experience in the industry. Being a stylist requires training and certification. If that is not realistic, consider contacting a salon owner outside of your target market or geographical area and ask to learn from them by shadowing them at work or asking a few questions. Of course, you can still own a salon without experience., as long as you hire qualified stylists.
Secure Your Permits
Hair salons are usually governed by local health departments. In addition to business permits and occupancy permits, you may be subject to certain local or state guidelines before you are able to open the doors.
Design the Interior
You want to have the amenities available to your target clientele. If you are targeting men, for example, you may want to have a mounted television that is tuned to local sports news or game broadcasts, with a waiting area stocked with magazines related to men’s health, finance, and sports.
Secure Financing
When you are starting your own business, securing business funding is a top priority. Benetrends offers an innovative solution that eliminates the need for costly bank loans, interest rates, and payback schedules. Our Rollover as Business Start-Ups (ROBs) plan uses a 401(k) funding approach, letting you roll over existing funds into a new plan for your new company. Cash is available quickly without upfront taxes or early withdrawal penalties. To learn more, download Innovative Funding Strategies For Entrepreneurs.