If you’re looking for a stable, profitable industry to get involved in, the beauty industry is one of the best. Bringing in over $60 billion dollars a year and historically recession-proof, a salon can be a smart investment for an aspiring entrepreneur.
Still, before you start any business, you need to look carefully at the expenses you’re likely to incur and how you’ll manage them without inhibiting your ability to turn a profit. You also need to consider what type of beauty salon you’re interested, different salons have different costs associated with running them, and require different types of licenses from the state. If you’re interested in getting into the salon business, read on to learn a little more about what your start-up expenses might look like.
Projecting Start-Up Costs
The differences between opening a hair or a nail salon are significant, and not just in terms of the services offered. Nail salons tend to be more inexpensive to set up than a hair salon or a barbershop, but your services are obviously more limited and you can’t charge as much for them. Experts suggest a business owner starting a hair salon should expect to invest at least $90,000 on the low end and up to $500,000 depending on the location, quality of equipment, and size. A nail salon will generally start around $62,000 but can run up to about $125,000 or more. Both businesses require a substantial initial investment, but they also offer opportunities in a market that few industries can match and the promise of consistent business if you can build loyalty with your customers.
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Purchasing Equipment and Products
One of the biggest expenses that come with owning your own salon is filling it with professional looking and functional equipment and appealing products for your customers. Whether you’re talking about what type of salon chair you prefer, mirrors, sinks, booths, or supply areas, you need a lot of equipment. For nails, you’ll need to focus on manicure stations (which can run over $750 each) and pedicure chairs that can cost up to $10,000 depending on the model you’re looking for. You don’t want to cut corners, make sure you’re providing a comfortable experience for your customer that will make them want to come back.
Attention to Detail
For any aspiring salon owner, thorough attention to detail is necessary, especially in a business where customer loyalty is key. One thing that might get overlooked is branding. Everything in your business should reflect your identity. If you want to be seen as a professional, everything from your tax envelopes to your logo should present a consistent image of what your business stands for.
When handling bookings, always double and triple check the time with customers to avoid confusion. Make notes of what your best selling products are and make sure you always have them in stock and offer competitive prices and promotions for things that aren’t selling. When designing your services, consider offering a few low-cost services so people can get to know your establishment slowly and then invest in your more expensive options. You need to know everything about your business, how it operates, and what’s making you money.
All of this only scratches the surface of what’s involved in opening a beauty salon. The costs associated with a hair salon can be higher than focusing on nails, but your services will generally net a higher profit. If you do nails, your start-up and equipment costs will certainly be lower. Whether your aim is to do hair or nails, you need to manage your start-up costs, invest in quality equipment, and differentiate your business by paying attention to every aspect of it. It can be difficult to get into the beauty industry, but given the potential reward, it’s a worthwhile effort.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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