8 Steps: How To Open Your Beauty Salon From Scratch

Today we’re talking about business in the salon industry and laying out the path for the budding entrepreneur.

The general interest in beauty and aesthetic services continues to grow, and with the right approach, a future entrepreneur can confidently take his or her place in the salon business niche. The profitability of a business in the industry will depend on the zest of the establishment, right or wrong salon economics, knowledge of everything about 1099 misc, promotion methods, and managerial abilities.

You will have to:

    1. Decide – a franchise or your own business?
    2. Develop a beauty salon concept
    3. Develop a financial model
  1. Register a business
  2. Choose a room
  3. Make a design project, buy equipment and make repairs
  4. Hire employees
  5. Draw the first clients

Step 1: Franchise or Own Outlets

To reduce the range of tasks in opening a salon and reduce risks, entrepreneurs can buy a franchise of a well-known brand. The franchisor will help with the design project and renovation, with the team and staff training, permits, purchase of work products, and much more. Of course, the franchisor almost always has specific requirements for the new location. Be prepared for him to monitor your work, to see if quality standards are being met.

So, on the one hand, franchising – is the best option to get a well-established organization of business processes and benefit from the reputation of the brand, thereby saving on advertising. On the other hand, you will not have a monopoly on decision-making in your own business.

If you decide to do your own business without buying a franchise, try to objectively assess your capabilities. Do not put everything on your shoulders, judge what you can entrust to professionals and ask for their services. 

Step 2: Choose the type of salon and come up with a concept

Decide on the direction of your beauty salon:

Traditional beauty salon.

A wide range of beauty services is available to clients, such as hair treatments, manicures and pedicures, eyebrow correction, eyelash extensions, cosmetologist services, and more.

Barber Shop

Provision of services for hair care, often economy or middle class.

Monosalon

The enterprise of one service. It may specialize in manicure and pedicure, removal of unwanted hair – epilation and depilation.

Express salon

Most often the masters in it do a quick styling and make-up.

Beauty salons are only for men or only for women.

Therapeutic beauty center.

Here clients are rendered services of aesthetic and apparatus cosmetology, and sometimes plastic surgery.

The SPA salon

Clients are offered body care procedures.

Tanning Studio

The salon may be equipped with a horizontal, vertical, or sitting tanning bed.

In the beauty industry businesses are also divided into classes: economy, medium (or business), premium, and luxury. Pricing is just one of the criteria that will determine the class of your future beauty salon. In addition to price, important are location, service, the claimed level of expertise, design, and loading of the salon

Determine your target audience: There are target groups of consumers who have similar properties and have similar requests. You need to collect and process information – a marketer can be involved in this – and classify the information into the following categories: target consumers, competitors, and completeness of services and services.

Step 3: Make a business plan

You have decided on the type and concept of the beauty salon – now you need to understand the scale of investment. Based on the numbers, start working on a financial model for your business plan.

Pre-investment research will form conclusions about the profitability of the future business. Marketing analysis will help calculate the planned costs and revenues of the beauty salon – it should also be reflected in your business plan.

A business plan for a beauty salon should be drawn up taking into account:

  • Definition of the target audience;
  • Approximate list of services;
  • Revenue and cost parts;
  • The payback period for the enterprise;
  • An average check. 

Step 4. Register the business

Now you need to register your business and open an account.

Which legal form is right for your future business is up to you. You will need to specify the main type of business in the application for registration.

Step 5: Choose a location

The location of your studio is very important. For an economy or mid-range beauty salon, it’s important to have good infrastructure, pedestrian traffic through the area, and nearby public transportation. Businesses in the premium and luxury classes need to be located in a prestigious area (look for places with private parking) and have the same prestigious neighborhood in the face of nearby businesses. 

Typically, the rules require salons to have a separate entrance and ventilation, not combined with apartments; salons should not be located in the basement or the apartment building; we need separate rooms for different procedures, divided into zones of the space and so on. If you opt for a space in a large shopping center, you will also need to take into account the additional requirements of its owners – for example, ventilation and water supply. 

Step 6. make a design project, buy equipment and make repairs

Important: Form the renovation according to your budget, not the other way around.

It is best to consult a designer who has done beauty salon design projects many times and knows the technical side of things. 

The equipment of a beauty studio directly depends on the type and class of the future salon. Usually, for beauty studios, the purchase comes down to two categories: cosmetics and grooming products and directly to the equipment and furniture.

Step 7: Hire Staff

A beauty salon is first and foremost a staff that works in it.

The most difficult thing in the salon business is the personnel. In salons, there is always a high turnover, even if the employees work on very favorable terms. Good craftsmen understand that they will not be without work, that they can work from home or open their salon. Also, the master may be alien to discipline and the concept of subordination, or, what is also not uncommon, he will try to steal products or not conduct services through the cash register. These reasons also generate turnover.

Nevertheless, you need to build a team of good craftsmen. Provide them with good wages.

Step 8: Get your first customers

Now you need to get your first customers.

Don’t invest a lot of money in one advertising channel at once, test different ways of attracting clients. Create a website and a couple of accounts on social networks, make an attractive visual image on them. The accounts should be managed by someone, and preferably a trained person. Also, think of a personal loyalty program, run more promotions in the early and low seasons.