How to Start a Hair Salon Business – A hair salon business is just one of the sub sectors of the fashion industry and also the beauty care industry. Now it is a known fact that fashion is never static, it is an ever changing industry. When it comes to fashion or hair and beauty, trend is the name of the game.
The hair salon business is a very lucrative business that was solely a women’s affair but these days, I have seen men successfully venturing into both the hair styling boutique and beauty care in general.
Another important fact about this business is that it has strong potentials in almost every country of the world; as long as the region is fashion conscious; you are in business. So whether you are resident in Nigeria, Ghana, USA, Canada, South Africa, U.K, etc; you can definitely do this business. Without wasting your time, below is a detailed hair salon business plan.
- Acquire as much knowledge the hair salon business
In business, knowledge is not just power but also a strong competitive advantage. To succeed as a hair stylist entrepreneur, you must know everything that needs to be known about the business. You must know about the human or women’s hair, you must know a little about beauty care, you must know how to run a hair salon business and you must also be well informed about fashion in general.
- Get the needed skills
To run a successful hair salon business, you need skills. It is even advisable you know how to style and dress hairs but that is not too important as you can always employ capable hands to do the job. More important than the technical skills or hair styling and dressing, you need business skills such as accounting, marketing, management, customer service, sales, negotiation, networking skills, etc.
- Write a Business Plan
To start a business, a small business plan is crucial. A business plan has five main parts:
- The introduction or overview
- The company profile
- Services offered
- Target market
- Financial plan
Sample Hair Salon Business Plan Template
The purpose of a business plan is to guide you through the process of setting up your business. Also, many banks or financing organizations require a business plan before they lend you the funds to start your business. There is no business exempted from requiring a business plan even a hair salon, no matter how small, will need one. Usually, there are people you can hire to write your business plan for you but if you don’t know anybody or you are not willing to pay for a service like that, there is always a sample hair salon business plan template available on the web that you can refer to.
A real or just a sample hair salon business plan must be concise yet detailed. It shouldn’t be hard to understand. That’s why it’s very important for the business owner to participate or contribute in the making of the business plan; better yet, he or she should be the one drafting it out.
- Your Hair Salon Mission and Vision Statement
A hair salon business plan must have a mission and vision statement in the introduction part. This is very important because this is where you will lay out your goals and plans for your business. It is not enough to state that you want to be successful. It is important also you state how your business will not only benefit you but how your business will contribute to the community as well.
- Your Company Profile
Also to be included in your hair salon business plan is your company profile. Company ownership and a little background about how your company started will be included in the company profile. It will also include how much it will cost to put up the enterprise.
- Services and Products
A hair salon is a service oriented business and it is only logical that in any sample hair salon business plan you are expected to find the list of services that a certain salon will offer. It is important that you offer a wide range of services aside from hair treatments because people are fond of one-stop shops. You must know the specialty of your personnel.
Knowing their strength can help you know the services you can advertise heavily to get the interests of your potential customers. Not all hair salons are the same and some salons offer more services than the others. I have even seen some hair salons that carry hair products such as weavons, relaxers, hair creams, etc.
- Hair Salon Marketing Plan
A very important detail of any hair salon business plan is the market analysis summary. This is where you will see how your business will fare in comparison with other local salon businesses in your area. This is also where you will see what kind of clientele you will be attracting with regards to your location and type of business.
Will you be attracting a more mature crowd or will you cater to the young ones? Will you be a salon that caters to budget friendly customers or clients that’s willing to pay a few extra bucks for salon services?
- Financial Analysis and Projections
The most important detail of any business plan is the financial aspect. This is where you will find expected costs, overhead costs, expected recurring expenditure, target profits and the like. This is also where you will probably find how long it will take you to regain all your capital expenditures. Estimations will allow you to allot the money you need to replenish every month. This will also let you decide whether you will need to get a loan, or if you can finance your shop using your savings.
Now there is always a sample hair salon business plan template available in the web for your reference. These plans are meant as a guide and you are not supposed to copy it word for word. A business plan should be written for your business and your business alone and it should be something you can understand and explain well.
- Research the requirements needed to get your business licensed
Before proceeding with fully operating your hair salon, you must visit the website of SBA (Small Business Administration) or any other relevant body to know more about the requirements for your business license. Contact DOPL (Division of Occupational and Professional Licensing) or any other relevant agency to license your shop personnel, and to check if they are licensed. Also prepare your shop for sanitary inspections. The inspection guidelines vary per state.
- Seek the most profitable location for your business
The location of your shop must be in a place where people frequently pass by. Avoid placing your shop where many competitors exist – this is to prevent any possible difficulties during your business’ launch.
- Employ professional and skillful personnel
If your goal is to become a successful hair stylist and business owner, then you are going to need extra talented hands. The beauticians you must hire must be licensed, skilled and experienced. It is also advisable to create a manual and contract for your future workers before you start hiring.
- Hire an interior designer to make your shop look clean and beautiful
This will help you convince the health inspector to give you a business permit immediately. And since you are entering the beauty industry, it is essential that your shop is clean and beautiful to attract customers.
- Advertise through the power of viva voce (word of mouth)
Word of mouth is the most effective technique when it comes to advertising and marketing. You can start by providing free or discounted services during the first days or week of your shop to get more customers to know you. Letting many people know your existence will raise the awareness of the people around you about your presence.
In conclusion, I believe that these tips on starting a hair salon business would surely get your dream shop running in no time. Just make sure you take note of the points above and implement them; and I will see you at the top.
More tips on “How to Start a Hair Salon Business” is coming soon…
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