Create a Business Plan
Some basic decisions to make upfront include the type of business model you will use and whether you prefer to be part of a partnership or a solo business owner. Next, consider your startup budget. What will be the costs to establish your business? These will include space and equipment costs, along with licensing and permits. Finally, how will you market your salon business and the services you offer? At minimum, you will need a website.
Consider Legal Requirements
Running a business includes many legal requirements, such as permits, insurance and licensing. Special licensing can be required for performing beautician services, in addition to the standard licensing necessary to operate a business. A federal tax ID is necessary for tax purposes. You should also consider establishing a Limited Liability Corporation (LLC) to keep your business and personal interests separate. To be sure that you are in full compliance with all legal provisions, it is helpful to consult with an attorney.
Financing Your Salon
In most cases, outside financing will be necessary when starting a hair salon business. Different financing options are available, including lines of credit (secured and unsecured), Small Business Administration loans and conventional bank loans. You will need to have a clear picture of your costs in order to obtain an appropriate amount of financing. Be sure to consider the legal and tax implications of various forms of financing as well. This is another area in which it can be helpful to discuss with an attorney.
Operating Your Salon Business
Financial considerations continue even after you have obtained financing to start your business. Now you will need to establish your operating budget, including anticipated monthly expenses and income. What services will you offer, and what supplies and staff will you need in order to offer those services? How much will you charge for those services? Will you sell supplies to your clients? These answers will be based in part on the demographics of area where your salon is located. Finally, you will need to hire stylists and support staff to keep your business running smoothly and able to provide satisfactory services to clients. Support staff may include a receptionist, a bookkeeper and cleaning staff.
There are many factors to keep in mind when embarking on a plan to start your own business. These guidelines can be a helpful way to be sure you are on the right path.