It is no doubt that the business of hairstyling is among the most profitable businesses you can start in this 21st century. That is why it is the dream of everyone, after mastering the skills of styling stylish haircuts such as pixie cut styles, bobs, and medium length hairstyles that the next immediate step is to open their own hair salon.
With the necessary skills and experience in the hair industry, you can get access to celebs who will not mind spending $1000 to get a particular pixie cut or any other favourite hairstyle. However, you have to plan well before starting your hair shop. Without proper planning, even the well-established and operative hair shops go sinking after a short period of operation. Like opening any other business, there are steps you ought to follow to open a successful hair shop. Take a look.
Choose The Business Model.
There are various hair salon models you can choose. Think about whether you want to start your salon from scratch, purchase an already established hair salon or buy a franchise.
How will you operate it? On the rental or commission model? For rental models, each hairdresser is an independent contractor. It is advisable to team up with partners for a small business operation. However, if you need to grow your business faster, opt for commission model. The only limiting factor in this model is that you have to settle down all employee-related costs, such as employees’ insurance.
Partnerships are essential for the growth of your business. The partner can either be a reliable mentor group or an investor. With a partner, it is possible to specialise where one person is responsible for day to day running of the business, and the other one focuses on the creative section of it-e.g. doing research on new ways of creating a pixie cut, and teaching the other members.
A Business Plan Is Essential
Your plan greatly determines the success of your hair salon. A business plan covers so many crucial aspects such as your brand, requirements, marketing strategies, and the costs.
It is also prudent to consult an accountant when creating your business plan.
The fact that you know how to style the best pixie cut in the town doesn’t mean once you start your business, you will get clients immediately to get finances to settle next month’s bills. It is prudent to have at least five months operation finances in your bank. That will be used to pay for recurrent costs before your business can stand and start paying back.
And since it is hard for start-ups to secure loans from banks, you can get help from traditional lenders and the family members for starting capital. After a year in business, you might be eligible to apply for loans.
Choose Location Carefully.
The location and space you choose will determine the total costs of starting your business. Choose a site that is already connected to electricity and the space that is already installed with the HVAC system.
There are several permits needed for you to start a hair salon. It is advisable to browse your municipality website to know what is needed. Some can be applied online and if you get stuck, consult your local lawyer.
This is a major problem for most start-ups. You may need general stylists or someone who has a specialised in a particular field, for instance, styling a pixie cut. It is advisable to create links with the local beauty schools to recommend and supply you with the stylists.
The last thing to do is to budget carefully for your finances. The costs should never exceed business revenues.