Industry Spotlight: Starting a Salon

Starting a salon? This service industry seems to be an ever growing field. From hotels and restaurants to salons, these services contribute about $35 billion dollars annually to the economy. In recent years, high end salons have seen considerable growth as well. In fact, retail sales of professional beauty products are estimated to contribute an additional $7 billion dollars according to the U.S. Census Bureau. The immense growth in this industry has led to competition as well.

4 Tips for Starting a Salon Business

Considering opening a beauty salon of your own? Here are some tips from the experts at Sunbelt:

1. Secure Capital

Of course, capital is exceptionally important. Rounding up the capital to invest in a business can be done in a variety of ways. Be sure to do your research and speak with a financial planner regarding the options available to you. When determining the amount of money you need, be sure to have extra funds for at least 6 months of rent and expenses as you begin growing your business. Be aware that starting a salon can require a large upfront investment.

2. Select a Location

Location is the next factor you should consider. If you plan on opening a high end, full service salon, you will be looking for a very different location than if you were opening a barber shop. Large salons can sometimes require up to 1000-2000 square feet in order to accommodate a variety of services while a mom n’ pop shop may need only 300 square feet. The number of services you plan to offer will determine the size and type of space you will need. You should also consider growth opportunities and the option to expand your space, if necessary.

3. Build Out Your Salon

Build out the space to suit your needs. To start a salon you’ll need special fixtures, extra plumbing and ventilation, as well as decor to create a mood for your space. Stylish decor and signage can be pricey but when you create an atmosphere your clients enjoy, their repeat business will prove its worth.

4. Purchase Salon Equipment and Supplies

Equipment costs are a large investment, so plan ahead when deciding what to buy. Quality products may cost more upfront but will often need fewer repairs and have a longer lifespan, saving you money in the long run. Along with salon equipment, administrative equipment is also necessary. Quality scheduling and point of sale equipment will ensure that the administrative tasks run smoothly.

Starting a salon can require large amounts of capital, not to mention the investment of your time. By building a strong financial base, using high quality equipment and products, and making customers feel welcome, your business will thrive. When starting a salon, keep in mind that the biggest driver of new customers is a great experience. From the moment they walk in the door, everyone should feel welcomed and pampered. The services provided should be high quality, which means hiring top notch stylists too. The initial investment may be daunting but the long term benefits in building a healthy customer base and growing a reputation of excellence is well worth it. It is the reputation that can spell success or failure for a salon – make yours count!

Search Salon Businesses For Sale Now!

With thousands of businesses for sale, we’re going to have something that fits your wants, lifestyle and budget. Sunbelt Business Brokers provides brokerage services for a large number of businesses in the health and personal care industry, including successful salons and spas. Browse beauty salons for sale or learn more about buying an existing beauty salon with help from Sunbelt!

Article updated December 6, 2019.