Secrets of Starting Your Own Beauty Salon
If you are thinking of opening your own beauty salon, or even just working as an independent therapist who makes house calls, then you are about to embark on one of the most exciting and daunting career paths today.
Typically, one out of every three small businesses fail within the first year and a half of opening. This number is even higher for new salons. You should not be deterred by these statistics, as it is not the intention of this article to keep you from pursuing your dream, but more as a reminder that it will take a lot of hard work to get your business off the ground and to keep it running for the long term.
The Opportunity To Be Your Own Boss
Owning your own beauty salon can be a very rewarding experience. Not only will you have the opportunity to do something you love, but you will also be helping others to feel better about their own appearances. However, here are a few things you should be aware of before you open a salon.
Labor Costs
There are several costs associated with opening your own salon. Some of these may be attributed to:
- Salaries and benefits of your employees
- Your own salary
- Prices you charge to cut hair, do facials, or perform other tasks
Overhead Costs
These costs consist of anything associated with operating your business apart from labor costs. Your overhead costs can be in the range of up to 50 percent of your material and labor costs, and can include items such as:
- Lease or mortgage payments
- Utilities
- And other fees associated with buildings, whether owned or leased
Profits
A general rule of thumb for salon owners is that you can expect a 10 to 15 percent net profit margin. This number can, of course, vary depending on your operating methods, and you customer base.
Regular Maintenance
Implementing a regular maintenance schedule is critical especially if you have a significant number of tools, electrical or otherwise. In addition to the tasks of sweeping up hair and washing towels, you need to make sure your salon is spotless clean and smelling fresh.
Increase Your Profit Margins
You can easily increase you net profits every month with very little effort. Adding a line of retail products to sell can significantly increase your profits. Additionally, you can diversify your services. For instance, you can offer a free manicure for everyone who spends a certain amount of money in your salon.
Offer Gift Certificates
Gift cards are a great way for your regular clients to purchase time in your salon for a relative or friend. Furthermore, you have the ability to turn those gift card customers into long-term clients. All you have to do is offer superior services at an affordable price and give them a reason to come back soon.
Are you Interested in Opening Your Own Salon?
Would you like to open your own beauty salon? If yes, then you should enroll in a beauty school and take one of the many courses on offer. Contact us today for more information.
