Do you want to open a salon business and not sure how to start?
In this comprehensive guide, we are going to share with you all you need to get your salon business started and successful.
At Moniepoint we believe that every business with the right support has what it takes to give you a successful and comfortable life and the hair salon business is no different.
You provide an essential service that people need! With 15.4 million people living in a city like Lagos, that’s almost 16 million people who would walk into a salon needing you to do your magic at one point in time.
Opening a salon business can give you the life you dream of. You just need to know how to start, grow and stand out.
Let’s help you get started.
Table of Contents
You’Are Going To Need Some Capital
Starting a salon business can cost a lot of money. This isn’t to scare you.
It’s to let you know that if your idea of the perfect salon is out of your budget, you can get started with a smaller one until you work your way there.
You can make a lot of money in no time – depending on how hard you work, how well you’re delivering great service to your clients and also how prime your location is.
Your next step after making this money isn’t to pack all your savings and go and get a shop, no! Won’t you eat?
With your new source of income from your small hair salon, you can request for a good loan that would help you own that big salon that you’ve wanted all along.
So don’t wait till you have plenty of money before you start. Get the essentials and do your best.
How Much Does It Cost to Set Up A Salon Business?
The cost of a salon can vary wildly depending on your location, the current cost of equipment and the type of services you’d like to offer.
What we can do is break down the things you must consider when preparing a budget for your salon business.
- Rent: The cost of renting a space for a salon business can range based on the nature of the neighbourhood you’d like to set up shop.
- Equipment and supplies: it’s important to take note of the services you’ll be offering. This would let you know what equipment and supplies you need to get started. A standard beauty salon needs hair dryers, hair clippers, hair straighteners, and hair products to be functional.
- : For your beauty salon to see any sign of success, you’re going to need a team to maximize the number of services you’re providing. You can’t do it alone and the more people you have, the more customers you can attend to.
- Marketing and advertising: Without a marketing and advertising budget your beauty salon business would be visited by only the people who manage to stumble upon it on their daily commute. To be able to attract your desired customer base and not depend on referrals and walk-in customers, you need to put some money down. Check out this article on some of the advantages of having a business account for your small business,
Location, location, location!
As we just mentioned, something that you need to make sure your hair salon business is a success is finding the perfect location.
The secret to a great hair salon location is finding a nice residential neighbourhood in your area. People expect to spend hours in a hair salon.
They would be drawn to you if you are just within walking distance because they know they can get there anytime and be back home in minutes as well.
You can choose to set up your shop in high-income areas and be among people who are willing to pay you fairly for your services with the added possibility of a tip just for great service.
Your only worry is the rent. Our advice as always is to start in a mixed-income area and grow your business until paying the rent in a more expensive neighbourhood becomes an easy expense. Don’t spend all your money on rent!
What Type of Salon Are You?
Hair salons offer many business opportunities other than hair styling. You can help your clients with hair fixing to give them healthier hair, you can wash and treat their hair to save them from any hair infections, and you can even sell wigs that you can prepare right in your salon. But that’s not even half of it!
A standard hair salon usually offers a pedicure and manicure service. These services not only bring more money to your business but also more clients.
Because if someone came in and they weren’t interested in getting their hair styled, you can always offer to help them with a nice relaxing hair wash. The more services you offer, the bigger your business would grow. That brings us to our next step.
Hire Some Help
Your hair salon is up and running, and you have clients trooping every hour of every day. How do you manage if three people came in all asking for you to attend to them?
Do you listen to one and send the others away? Of course not! If you can’t attend to every customer that comes in, you are not only losing money but also the chance to build a relationship with that customer.
You need to hire people who might not be as skilled as you but can comfortably do the job, are hardworking and are also ready to grow with your business.
Like everything, start small and as your business grows you’ll be surrounded by professionals who can put money in your pocket even when you’re not around.
How Do You Go About Hiring Staff For Your Salon?
Hiring staff for a beauty salon business can be a daunting task, but with the right approach, you can find talented individuals who will help your salon grow. Here are some steps to follow when hiring staff for your beauty salon business:
- Define the roles you need: Start by defining the roles you need to fill. This may include hairstylists, estheticians, nail technicians, and receptionists. Make a list of the qualifications, skills, and experience required for each role.
- Create job descriptions: Once you have defined the roles you need, create detailed job descriptions for each position. This should include the duties and responsibilities of the role, the required qualifications and experience, and any other important information.
- Advertise the job openings: To attract the best candidates, advertise your job openings in various places such as job boards, industry publications, and on your salon’s website and social media platforms. You can also consider placing ads in local newspapers or posting flyers in community centres or coffee shops.
- Screen and interview candidates: After receiving applications, screen and interview candidates to find the best fit for your salon. Conduct phone or video interviews to get a sense of their experience and qualifications before inviting them for an in-person interview. During the in-person interview, ask questions that will help you understand their technical skills, customer service skills, and how they fit into your salon’s culture.
- Check references: Once you’ve identified your top candidates, check their references to ensure that their qualifications and experience match what they’ve claimed in their application and during the interview.
- Offer the job and negotiate the salary: When you’ve identified the best candidate, make them an offer and negotiate their salary. It’s important to be transparent about your expectations and the salary you’re willing to offer.
- Onboard new staff: Once your new staff members have accepted the job, it’s time to onboard them. This involves providing training, reviewing salon policies and procedures, and introducing them to the rest of the team.
Time to Grow
The hair salon business is a special one because it not only depends on how well you do the job. If you walked for ten minutes from your salon, chances are you’ll see another salon just like yours. You have a duty one to stand out and be special. How do you do that?
By being creative! You can hire a barber and give the women coming into your salon the chance to take a different direction with their hair. You could also offer hair dyeing services and give these women a bright and colourful new look to go with their new cut.
Don’t just limit yourself to women though. Men’s hair needs love too, and I’m not talking just nice cuts. From braids to dreadlocks, you can help them with new hairstyles that they can proudly show off.
With these extra services, you can bet that people would walk past your competition and straight to your salon. Your next and final job is to build strong relationships.
That is the best way to market your business. Let people be the ones to sell your business to their friends and families by doing a great job on their heads that would make people ask for your location.
What is The Best Way To Market Your Salon?
Marketing your beauty salon can be a challenge for one main reason. There’s so much competition. Chances are you have another beauty salon on the same street as yours just a few buildings away!
Before you market your beauty salon, you need to consider three things.
- You must stand out
- You must be consistent
- You must offer excellent service.
By standing out, we mean you must find a way to be different. This can be by offering a unique service or having a signature style that makes your work instantly recognisable.
It’s not enough to be unique once every 3 months. As a business owner who wishes to be successful you must offer excellent service consistently. That means every customer must be given premium service every single day.
With these in mind, it’s time to market your business. A solid plan to follow is:
- Develop a strong brand identity: Your brand is what differentiates you from your competitors. Develop a strong brand identity that represents your salon’s values and services. This includes creating a logo, colour scheme, and tone of voice that are consistent across all marketing materials.
- Utilize social media: Social media is a powerful marketing tool that can help you connect with potential customers. Create profiles on Instagram, Facebook, and Twitter platforms, and post regular updates about your salon’s services, promotions, and events. Use relevant hashtags to increase your reach and engage with your followers to build a community.
- Offer a loyalty program: One of the best ways to retain customers is to offer a loyalty program. This can be as simple as offering a free service after a certain number of visits, or a percentage off on their birthday. Not only does it incentivize customers to come back, but it also shows that you value their business.
- Provide exceptional customer service: Like we mentioned before, offering exceptional service sells your beauty salon by itself. Word-of-mouth is a powerful marketing tool. When your customers are happy, they will recommend your salon to their friends and family. Make sure your salon provides exceptional customer service by training your staff to be friendly, knowledgeable, and attentive to customer needs.
- Partner with local businesses: Partnering with local businesses can help you expand your customer base. Reach out to nearby hotels, wedding planners, and event coordinators to offer special promotions or discounts for their clients. This can help you reach potential customers who may not have heard of your salon before.
- Host events: Hosting events is a great way to promote your salon and attract new customers. You can host a grand opening event, a launch party for a new service, or a customer appreciation day. Make sure to promote your event on social media, through email marketing, and on your website.
Hair Salon Checklist
As a recap, here are the essential checklist for starting a salon business.
- Find your own blue ocean
- Get a business plan
- Register your business
- Salon Equipment
- Hire the right staff
- Create a marketing plan
Like any business, for it to be successful you need some level of guidance to ensure you don’t make mistakes that could rob you of your dreams or the joy of doing your business.
With Moniepoint, not only do you get access to experts who are ready to offer 24/7 assistance with whatever problem your business faces but you also get the tools you need to grow your business. Open a Moniepoint today and get all you need to create a business you’d be proud to call your own by clicking here!