Opening a hair salon? Find out how to get started and what salon equipment you’ll need from day one with our guide for small business owners.
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Opening a hair salon, as with any business, requires plenty of planning and forward-thinking. There’s lots to consider, from business plans to hair salon equipment.
Starting any business from scratch comes with risk, but with a hair salon there is the assumption of long-term customer interest. After all, most people need regular haircuts.
There are around 900,000 hair salons in the US1, with the industry accounting for a staggering $20 billion. Though there’s clearly plenty of competition for cuts, with the right strategy you can prep your potential salon for success.
Read on to find out how to open a hair salon and what hair salon equipment you might need to get started.
Starting any new business takes determination, commitment, and a little cash upfront. As with other businesses, it helps if you have had previous experience in the industry. However, even if you’ve not worked in a salon before, you can always hire people who have.
Follow the below steps to find out how to open a hair salon.
Preparation is everything. After all, proper planning is the best strategy for avoiding common errors and mistakes. Get started by creating a vision for your salon, think:
Find out more about creating a business-ready plan.
Do your market research. What are customers in your area in need of? Are there other salons nearby? Consider whether your chosen location is easy to get to and sees a lot of footfall. Of course, if you set up your salon in an out-of-town business park, you may see less business than in the city center.
Once you’ve got your business plan and overall vision together, you’ll need to decide whether you can afford it.
Set a strict budget but remember – this will need to cover all initial costs and beyond, such as renting a space for your salon, buying equipment and hiring staff.
Indeed, operating costs alone can account for up to 80% of your eventual revenue.
How you finance opening a hair salon is up to you, but it’s important you can afford to do so. Some people start a business with an initial cash lump sum, while others might seek a business loan from a bank. Of course, if you do get a loan, you will need to be sure you can pay it back.
You’ll need to be fully up to date on all the legal guidance and ramifications of hiring staff, paying taxes and operating a business. Some of the things you’ll need to do before opening day include:
You’re going to need staff and not just those that work in the salon. Getting the hiring process right is important. You want to attract the best talent, but you also want to employ people who are going to be trustworthy, loyal and friendly. After all, customers will interact directly with your staff and affect how they judge their experience with your business.
Your budget will determine who you can hire. Experienced stylists and hairdressers will require a higher salary than a trainee, for example. Hiring a mixture of those with experience and those just starting their careers may be your best bet.
If you are hiring trainees, or newly qualified stylists, consider whether they will need any additional training or upskilling to get them ready to work in your salon.
Beyond salon staff, think about other workers you might need to hire or give work to on a temporary or short-term basis. Such as:
Once your salon is ready to open, you’ll want to start spreading the word and marketing your business. After all, how will customers know to come by if they’ve never heard of your business before?
How you market your business is up to you, but in today’s digital world having a social media page is the minimum requirement. Ensure your social media page is up-to-date with relevant information about your business and use it to interact with customers or post updates about any deals, promotions, or business news you might have.
You could also market in other ways, including:
You’ll need to factor marketing spend into your budget, whether you’re paying for a slot on local TV or printing off flyers to hand out.
With everything in place, it’s then all about opening your doors and attracting customers. Excellent service, personable staff and a welcoming atmosphere are the best ways of drawing and retaining customers.
It’s good to think about the next steps after opening and how you want to shape the future of your business with them in mind. Consider where you want your business to go, or whether you might expand if you are successful in the future.
Supplies can be one of the biggest outlays you’ll face when opening your new hair salon. Plus, as you’re just opening your business, you’ll need to consider all the one-time purchase equipment, like workstations, too. Think about what you can afford on your budget and how it fits into your business plan.
Here’s a list of salon equipment to get started with:
Stations are the most important place to start when designing your salon and pulling together your salon’s budget. Think about the equipment you’ve worked on or interview stylists you trust to determine what set-up works best. You’ll need:
You may want to consider buying gently used salon chairs, stations, or mirrors from a closing or closed salon.
Think about any COVID guidance or safety regulations you may need to adhere to.
You will need about one shampoo bowl for every three stylists. Make sure the bowls and chairs you purchase work well together and can be easily adapted for different clients. Many salon equipment suppliers sell rubber lips that can be fitted over shampoo bowls to help reduce the dreaded neck cramp.
You’ll also need to consider whether you’ll perform coloring and dyeing over the shampoo bowl, or if you’ll need separate stations for these.
Although hood dryers may seem old-fashioned, they can be a huge help. A busy stylist can put one client under the dryer while they get started on the next customer. Hood dryers are also great for updos and other styles that require setting, as well as for color jobs.
If you’re ringing up sales and scheduling appointments, you’ll need a register and a reliable POS system. Your receptionist will also need a phone, a desk, and some basic office supplies. Consider investing in scheduling software and contactless payment systems to streamline your salon operations and make paying more COVID-friendly.
A good-looking reception area with decor that matches your salon’s vibe will make a great impression on your clients. Comfy chairs, couches and a place to store magazines and coffee cups are a must.
A neatly organized display showcasing your retail salon inventory and purchasable salon equipment will help promote your products and generate additional sales. Choose between wall-mounted shelves, a top-of-counter rack by the register or a free-standing display case depending on your layout.
Hairstyling and care products are typically sold at a markup of 50%, meaning you can make quite a profit on wholesale price.
Keep your stylists looking coordinated with pull-over aprons and uniforms. This also protects their own clothes from chemicals they may be using during beauty treatments. Depending on the treatments you’ll offer, you may also need to supply staff with protective gear, like latex gloves.
Finally, since you’re likely to go through plenty of towels, you may want to consider an onsite commercial washer and dryer to make sure you never run out.
Check out our detailed guide for a complete breakdown of the salon equipment you need and get more top tips and business strategy suggestions when you become a Groupon Merchant.
Article was first published in October 2021 and updated in September 2022.
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