You’re considering scalp micropigmentation or SMP treatment. That’s probably too advanced as a service for you to offer. But you’re seriously considering putting up your beauty or hair salon.
You’re currently working at the back office of one of the big grocery store chains in Las Vegas, Nevada. On the side during weekends, you service a few houses in your neighborhood to give a haircut or manicure and pedicure for extra income. You’ve taken a few classes about being a beautician. Still, you had to stop to work at the grocery store.
You’ve managed to save your income from your sideline job, and you’re currently exploring the possibility of opening your hair salon. What will it take to do this?
An Overview of the Hair Salon Industry
The hair salon industry is probably one of the more robust businesses in America today. It is employing nearly 1.4 million people. For 2018, the sector recorded earnings of $46 billion. About a million businesses power the 2.4% annual growth rate from 2014-2018 in the country. Those are incredible numbers, and they serve as good indicators for your choice of business.
How to Get Started
The market is ripe. You’ve had some experience providing the service already. These factors are already in your favor. But you need to take note of other primary considerations:
- What’s your model? You have at least three options as a business model: a) start your own; b) acquire an existing business; and c) purchase a franchise. Your decision will be based, of course, on your resources as well as the kind of revenue you want to generate. If you do it on your own, you’ll probably need plenty of capital, but the returns on your investment will be yours alone. The two other tracks might be easier to set up as the shop might already be existing. For franchises, you are likely to pay royalties, which takes a cut from your profit earnings.
- Financing and business planning. Are you going to go at it alone with your own money, or will you take out a loan? This is where drafting your business plan becomes very important. You need to be clear on your financing strategy, your analysis of the competition, and your value proposition.
- Location. Location. Location. Whatever business you’re in, this aphorism could not be truer. Select a place where there’s high foot traffic and where your targeted demographics can easily access your site of business.
- Hire the right people. Put a premium on both personality and skills when hiring your staff. This is one of those industries wherein an efficient and warm customer service improves the chances of first-time customer returning. Invest in training your people to be the best at their craft.
- Improve industry knowledge. Haircut styles don’t change as rapidly as the OS of mobile phones. But there are changes and developments in the industry that you need to be aware of. Get on the radar of professional organizations, like the Professional Beauty Association, where you can get newsletters and other relevant information about your business.
- Marketing. Digital marketing is probably inevitable for all kinds of businesses today. You’ll need to put up a website and create your social media accounts. But perhaps your best marketing medium is your satisfied customer. Encourage them to make referrals and hand out your business cards and brochures. If they could provide positive testimonials on your webpage, that would be great.
You might not be able to charge more than $1,000 as you begin, but these pointers can help you get to that target of charging a high-priced haircut.