The desire to look and feel attractive is important for almost everyone, making opening a salon a smart business option for entrepreneurial-minded people with a passion for hairstyling or beauty. However, opening a salon requires significant planning and work. This can be made easier by creating a startup checklist. It may also help you to determine important details like funding.
Prepare a Business Plan
Start by creating a business plan. This includes a mission statement and company description, as well as an analysis of your local market. It also contains details about your services and staffing needs. You will need to determine the financing necessary to start your business. This basic document can be created using online templates. If you are looking for funding from outside sources, a well-crafted plan will be essential.
Set up a legal structure
Decide whether your business structure should be sole proprietorship, partnership or limited liability corporation (LLC). If customers sue you, your personal and business assets will be at risk, whether as a sole proprietorship or partner. Although your risks will be limited if you decide to form an LLC, the Internal Revenue Service (IRS) does not recognize LLCs as a tax-exempt classification. To apply for a federal tax identification, corporations and LLCs must first establish their legal structure.
Select a location
Your salon’s location is a key element of your business plan. Consider foot traffic, visibility, and space availability when choosing a location for your new business. SpaBuilder states that most salons need a minimum of 1,000 square footage.
Get your licenses and insurance.
You can apply for a salon license through your state’s Department of Cosmetology or any other licensing agency. You will most likely need to make an appointment to have a representative visit your salon to confirm that it meets all state requirements. This generally means that both you and your stylists must be licensed to perform any services you plan to offer.
Your salon must also comply with applicable electrical, sanitation, and fire codes. Also, speak to your broker about your insurance requirements as a salon owner. You will need to protect your salon from theft, damage, and possible liability.
Salon Equipment and Furniture
Chairs, mirrors, and reception desks are essential when opening a salon. For proper installation, shampoo bowls and the services of a plumber are required. You will also need hairdryers and laundry equipment to clean towels.
You can manage your salon’s books and finances with a computer system that supports the most current salon scheduling or management software. You should also have telephones, a cash register, a credit card machine, or other collecting methods.
Purchase Salon Supplies
Some essential items such as shampoos and conditioners, towels, and drapes will be needed. Hairstyling tools such as mousse, gels, sprays, and gels will be needed. You will also need to supply trolleys to hold rollers, rods, and nail and body products.
Experiential hair stylists can leap from being an employee or contract worker at a salon owner to owning and running their salons. These hairstylists must have a passion for hair and the skills to attract customers to their salons and keep them coming back to refer friends and colleagues. A business plan is essential to build a salon that works well and makes money for both the workers and the owners.