How to Start a Salon Business
Many young women and men dream of opening a salon because it is an exciting business that allows the owner to have more personal freedom. They can decide on business hours that are convenient for them and spend their days chatting it up with customers and stylists while doing something that they love. The process of starting a salon can be a little hectic, so if you need help, don't be too proud to enlist the help of a friend or associate who knows more about starting a business to help you iron out the details.
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Things You'll Need
- Cosmetology license
- Business license
- Business checking account
- Salon equipment
- Stylists
Instructions
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1
Get your cosmetology license from an approved program in your area. While this is not always required to own a salon business, it is helpful to have knowledge of the cosmetology field before starting this type of business.
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2
File for a state business license and find out if your desired business name has been taken. Many salon owners either choose to use their first name in the business name or a phrase related to beauty. Also, apply for any occupational and safety licenses that your state requires for operating a salon business.
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3
Decide on how to fund your new salon business. Are you getting your investment money from a family member or angel investor? Are you using personal wealth, or a loan? If you need to borrow for your business, you will have to draw up a business plan in order to be approved for a small business loan.
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4
Scan your town for possible salon locations. The best locations are clean and spacious and don't require much work on your part. Find a location that is close to major shopping centers to maximize the chance that new people will discover your business.
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5
Open a business checking account with which to pay your business bills and make deposits. Get business insurance to protect you in case of an accident or property loss.
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6
Lease your salon space and place the deposit. Have your utilities turned on in your business name if your landlord hasn't already done so.
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7
Buy salon equipment including salon chairs, bonnet hair dryers, hand hair dryers, brushes, combs, dyes, perms, hair straighteners and other products for a hair salon. If you are opening a nail salon buy nail polish, pedicure chairs, manicure tables and hand dryers.
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8
Interview and hire stylists who can bring in a lot of customers. Charge them to rent a chair from you; you might also want to ask for a percentage of their sales depending on your agreement.
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9
Throw a grand opening celebration for your new salon once everything is in operation. Tell your stylists to bring all of their customers for an afternoon of fun, food, and maybe even free styles for the day. This will get people talking about your new business.
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Tips & Warnings
There are plenty of business checking accounts available with no monthly maintenance fees, or at least free for a year. Try to maintain a balance of at least $1,000 in your business account if at all possible.
Don't spend anything until you have all of the money you need in hand to get your salon business off of the ground. You don't want to be stuck paying for one piece of the puzzle while the other pieces are still awaiting funding. For instance, leasing a space before you have the money to pay for salon equipment will leave you with an unnecessary monthly bill until funding is available.
