How to Start a Beauty Salon Business

A beauty salon or beauty parlor provides products and services that enhance the client’s physical appearances and mental relaxation. This is one of the most trending beauty business ideas in the retail segment. Find here a free beauty salon business plan guide and step by step guide on starting a beauty salon business.

Selecting the right location, efficient manpower, and proper sales promotional activity is required in starting this business.

Opening a beauty salon is a lucrative and also a competitive business. It comes with high startup costs and a large number of competitors. It is important to have specific knowledge about hair, beauty, and personal care. In initiating a beauty salon business any aspiring beauty professional must-have business management expertise to successfully run the business.

You can start a beauty salon business in two ways. One is by purchasing a franchisee of a reputed brand or establishing your own business.

Here are the 6 Steps to Follow to Start a Beauty Salon Business

1. Write a Beauty Salon Business Plan

In starting this type of cash-intensive business, crafting a business plan is a must. You will need to determine what are the services you will offer. How much floor space you want? What will be your target demographic? What is your business objective? Accordingly calculate your startup cost investment with rent, equipment, manpower, beauty products, and other utilities.

In the case of buying a franchise, the parent company generally provides operating software. While you are opening your own you must purchase the software of your own. Crafting a marketing plan is also a must. Following these steps will definitely help you in running the business smoothly and getting the confidence of investors also.

2. Legalities 

Different states and Government authorities issue different license and permission for different specific services. Check it out with a local lawyer.

If you want to run a legally compliant beauty salon, registering the business is a must. In addition to this, craft a stylish easy-to-spell ‘name’ for your salon. Protect the name by registering Trade Mark.

3. Select the Services

Different types of salon services are there. You need to choose according to the style trends and your own expertise. You can broadly find four categories such as hair, nails, skincare, and makeup. Selecting the services typically depends on the store size. However, you must offer basic services.

Hair: Haircut, relaxers, perms, colours, shampoo, conditioning, curling, reconstructing, weaving, eyebrows, treatment, hair spa, hair removal, etc.

Nails: Manicure, pedicure, polish, nails sculpture, Acrylic nail application etc.

Skincare: Facial, waxing, massage, tan removing, spa, paraffin treatments, Hydrotherapy Treatments, body piercing, exfoliation, etc.

Makeup: Bridal makeup, party makeover, etc.

4. Setting Up your Beauty Salon 

The most important factor in getting success in the salon business is choosing a suitable retail location. Location with numbers of footfall, wide storefront, and available parking is a great option. Never compromise in choosing the best location. Your entire emphasis and investment will stand on only this. Carefully check the rental agreement before signing.

Pay attention to interior and exterior too. It is advisable to consult with an interior expert. You must design the store attractive, comfortable and well arranged. Drawing a floor plan prior is a must.  Measure the length and width of the space and keep those dimensions in mind when coming up with your design.

Place the waiting lounge and cash register toward the front, and put mirrors, salon chairs and hair drying and shampoo equipment in other parts of the salon.   Separate treatment rooms are needed for wet and dry services. Group similar equipment together. Pick a color and theme and use it carefully in interior designing.

Purchase salon furniture that fits your interior theme, color structure and layout. Your clients need to feel comfortable, relaxed, and clean when they visit your salon or spa, and the furniture and spa equipment you choose will set the mood. Each service in a beauty salon will require a specific piece of equipment.

Once you finalize the kind of services your salon would be catering to, you can think of washbasins, the latest hair styling equipment for perming and hair straightening, hairdryers, supply trolleys, etc. Salon equipment is generally expensive, and hence, it is best to purchase directly from distributors. Check the warranty period before placing the order.

  • You will need to purchase a Point of Sale software for daily basis operations, tracking records and data analysis.
  • Fix pricing carefully. Your direct, Indirect and labour costs are variable costs and will increase as sales increase, but fixed costs stay fixed regardless of the sales you make. Check the tariff of your competitors also.

5. Hiring Professionals

Proper manpower planning is one of the most challenging issues in starting a beauty salon or spa. In fact, employees are the front-line representatives of the business. Their skill and talent, as well as their attitudes and work ethic, will influence every aspect of the business, from client retention rate to the bottom line. The main key responsibility areas are salon manager, hairstylist, cosmetologist, receptionist, manicurist, massage therapist, salon assistant, etc.

6. Promote Your Beauty Salon

Brand promotion is extremely important in the beauty salon business. The success of any growing salon depends on generating a core group of regular clients and treating them with the respect they deserve. Place advertisements on the local directories like Yellowpages. Do some outdoor media advertisements. Concentrate on in-store branding.

You may offer special discounts for the higher purchase. You may launch a customer loyalty card concept. Clients who sign up can enjoy more discounts and offers on the services. Pay attention to online promotion also. Creating your own website and social media activity will definitely help you in online leads generation.

List your business on popular web directories. Your business website, web directories, your Facebook page, handouts, flyers, and even your local newspaper – any place you feature your business should include a call-to-action.

A call-to-action can be anything from “Call for a free consultation!” to a cut-out coupon or even a small discount on one’s next visit. You can also offer and promote ‘daily deals’. This discount will need to be higher than other smaller incentives.

Foot Note:

Starting a beauty salon business isn’t easy. It requires investments in time, money and your opportunity cost of working elsewhere. Having true passion, risk-taking ability and business operational skills any individual can initiate a beauty salon business even then also when he/she doesn’t have professional beauty or health care skills.

Hope this beauty salon business plan will be useful in starting your own beauty salon.

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