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Contents
Introduction
Types and classes of beauty salons
How to write a good beauty salon business plan
What documents do I need to start a beauty salon
How much money do I need to open a beauty salon
How to choose the best beauty salon premises
Purchasing beauty salon equipment, tools, and consumables
Hiring beauty salon staff
Advertising and promotion for a beauty salon
Connecting CRM and a widget
Finance calculations: ROI
Statistics on the number of beauty salons at the end of 2021
Beauty salon business as a prosperous niche
Conclusions
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#1 Introduction
The fast scaling beauty and fashion industries have made people pay attention to their looks. Everyone tries to look attractive. Being better than average is very important for both women and men. And it happens so, not only because we are too selfish. On the contrary, now, to stand out, you have to differ. And you know how hard it can be.
Beauty salons are the best helpers in this constant beauty rush. They are famous among females, males, and even kids and pets. Actually, the 21st century has given us so many various choices. Therefore, the main task of a client is to find the best option for himself.
Today, we will look at different types of beauty studios, learn how to write a well-thought-out business plan, see how to stand out, and get your first loyal customers.
This material will be helpful for beginners and skillful beauty salon owners. So let's start our journey.
90% of any business is a well-made business plan. Writing a detailed business plan will save you from numerous problems and expenses.
The type depends on the service a beauty studio provides. However, there is a typology by classes:
Economy beauty studio.
Business beauty salon.
Lux salon.
We have written several articles on choosing the best beauty salon name:
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#2 Types and classes of beauty salons
There are so many beauty studios, and we cannot even count all the types. Talking about classification, it is a bit easier.
Three main classes of beauty salons:
Economy class. Affordable prices, simple services, and minor premises.
Business-class. The prices are medium, the services tend to be more varied, and the premises have to be spacious.
Premium or Lux. The most expensive beauty salon. The prices here can go up to eternity. Usually, clients are ready to pay for the brand, so even very overpriced but famous salons will work well.
The varieties of beauty studios are also numerous. The classification depends on the services, for example, cosmetology, depilation, massage, manicure, hairstyles, SPA, etc.
We will not waste your time and talk about every single service and type. Instead, let's see how the system works on several examples. Today, we will take a look at a brow bar, barbershop, and hair salon.
So fine. It is high time to start!
Brow bars. This type of beauty studio is relatively new. Brow bars are specialized beauty salons where clients can get any lash & brow treatment, and sometimes massage or facials. Usually, there is no need to hire a big team. For an average brow bar, one or two employees will be outstanding.
Barbershops. Men created these beauty salons and for males. Barbers are usually skillful male hairdressers ready to give clients a nice haircut and a dose of manly talk. However, nowadays, women are also allowed to be barbers.
In a typical barbershop, a man can get a stylish haircut, various hair treatments, massages, and sometimes a manicure with a pedicure. Barbershops are among the most popular beauty salon businesses in America. However, the rest of the world has also caught this prosperous business idea, so barbers tend to work worldwide.
The hair salon is a classic beauty studio type. Salons masters create a lovely hairstyle, professional hair treatment, hair dyeing, etc. Nowadays, they are also famous for makeup and other related services.
As usual, once an aspiring entrepreneur wants to open a beauty salon, he starts with a hair studio. This business isn't too complicated to open, profitable, and prosperous. Then sure, when you add more services, you can grow into a multifunctional beauty salon.
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#3 How to write a good beauty salon business plan
Starting a beauty studio is a prosperous idea, but only when you know how to stand out from the competition.
The first rule of opening a lovely beauty salon and avoiding issues is to plan the business very well. Yes, it can seem that you can correct a business plan and add there all you need. But there is no point in adding anything if you've started the startup in the wrong way.
Steps on opening a beauty salon business:
Register the company officially.
Decide on your budget.
Choose premises.
Get equipment and consumables.
Hire a professional team.
Promote the business.
Connect CRM and widget for online booking.
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#4 What documents do I need to start a beauty salon
You can start the beauty salon business under LCC or sole proprietorship status. Although LCC works well if you create a company with a partner, the sole proprietorship is suitable for individual ownership.
To open a beauty studio, you have to cope with:
Premises lease agreement
Opening a bank account
Sanitary conclusion on the premises
Permission of the State Fire Inspection
Permission from the local administration to open
Employment documents
Certificates for consumable cosmetic materials
You will also be required to get the following papers:
Medical certificates – sanitary books for personnel
MSW export contract
Laundry contract
Inventory sterilization log
Agreement with a medical institution on the passage of permanent examinations
Documents about the health of the ventilation system
A license is required only for cosmetic services and procedures close to medical ones, such as hair removal, tattooing, piercing.
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#5 How much money do I need to open a beauty salon
The budget depends on the area and the class of the salon. Sure, the expenses can be minimized for small cities, while they can be doubled for megalopolises.
The average expenses for starting a beauty salon are:
Preparing documentation: $750-1000.
Renovation of the premises: $2500-3500.
Purchasing consumables: $1000-2000.
Buying tools: $1500-2500.
Premises rent: $2500-3500.
Salary for staff: $3000-4000.
Marketing and ads: $1500-2500.
Other consumables: $500.
In general, you will need about $25 000-35 000 to start a beauty salon. We have calculated the budget for the economy salon. In case you would like to open a lux or a business salon, the expenses will differ.
Regular expenses:
Rent: $2500-3500.
Utilities: $500-750.
Consumables: $500-1000.
Salaries: $5000-10000.
Taxes: $1500-2000.
Others: $500.
So, to maintain a brand-new beauty studio, you have to be ready to invest about $10 000-15 000.
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#6 How to choose the best beauty salon premises
The location of a beauty salon is significant, especially if you open it by yourself, without any franchise. Clients have no idea who you are and what you can offer. They can doubt your services from the beginning. That is why selecting a good location can help with getting your audience.
There is no point in starting a beauty salon in an area where your target audience has never been. For example, let's compare the destiny of a beauty salon in a big shopping mall and the one far from the city center.
The first option will be winning because so many people would like to get a haircut or makeup. Talking about residential areas, it will be fine too. Then simply start an economy beauty studio to attract locals. But starting a new beauty salon far from transport hubs, city center, and residential areas is an awful idea.
We recommend starting a salon in the city center. It will be the best choice for a business and lux salon. However, if you open an economy class beauty studio, do it in the residential area.
Facts to know before selecting the premises:
Check whether there is a parking space nearby.
See whether you can place your ads on the building where you are renting the premises.
Select the location near the shops and malls.
Think about a beautiful and comfortable entrance.
Don't forget about good plumbing. It will benefit if it is already installed. If not, talk to the landlord about getting this equipment.
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#7 Purchasing beauty salon equipment, tools, and consumables
Now, let's see what you will have to get first to open a successful beauty salon.
Beauty salon equipment and consumables:
Beauty salon furniture: chairs, sofas, reception, etc.: $5000-7000.
Computer technique and software (CRM): $2500-3500.
Beauty tools: $2500-3000.
Other inventory – $1000.
The average amount to spend is about $1000-15000. Beauty salon equipment is extra essential. Clients come to pay for a quality service. Pretty often, without the right tools and cosmetics, there is no good service. Professional beauty products will also cost you about $1000-2000.
Can I save on beauty salon equipment and cosmetics?
Well, you can! There are many ways to minimize the initial expenses. Consider getting second-hand tools and budget cosmetics. The first and foremost is never to compromise quality. A pleasant moment is that quality doesn't have to cost too much.
Monitor the websites for selling used stuff. Sometimes famous beauty studios renew the design and get rid of the previous tools. Then they sell them for almost nothing. It is a perfect chance for small salons.
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#8 Hiring beauty salon staff
The number of your employees depends on the type, class, and aims of your beauty salon. There is no need to hire too many people to cope with customer flow. The main thing to cope with is to optimize the business, so you simply won't need any other staff.
How can I optimize staff?
Get a good CRM! Customer relationship management systems will help to optimize team because:
You will be able to see the results of every employee.
The staff will have a motivation to grow.
There is no need to pay for maintaining the routine. The CRM program automizes all the processes. Then you simply hire beauty experts and an administrator to control.
You will be able to demonstrate your team on the website. They will be inspired to get more certificates and courses as everyone will know about their success.
Life hacks and simply inspiring ideas:
Allow your staff to choose how they want to work. For example, if a person tells you that there is no sense in offering nail services 5 days per week, then rest for 2. Just get the 2/2 schedule. It will help both of you.
A lot of processes can be outsourced, for example, accounting and cleaning. The cleaning lady can come to you every day. It is not necessary to add her to the team.
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#9 Advertising and promotion for a beauty salon
Proper marketing can save any business idea. Starting a new beauty studio, think about its promotion.
How to advertise a beauty salon?
Work with influencers.
Use contextual and targeted ads.
Get a friendly website.
Connect widget for online booking.
Use ads in Google.maps.
Use out-of-home advertisements: billboards, leaflets, handouts.
Promote a beauty salon on TV and in magazines.
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#10 Connecting CRM and a widget
Before launching a beauty studio, choose a good CRM to connect with. EasyWeek is a perfect tool for small and midsize businesses.
EasyWeek has the following benefits:
Widget for online appointments.
Website.
A client base.
Financial calculations.
Marketing inventory.
Clients respect EasyWeek service for being easy-to-use, functional, affordable, and innovative. There are no additional fees or hidden payments.
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#11 Finance calculations: ROI
The ROI of a beauty salon is relatively fast. Usually, it takes 8-12 months to get your investments back. The ROI calculations are pretty easy: add the amount you get every day. Then see the monthly income, and so you will understand the ROI.
How to faster the beauty salon ROI?
Use marketing life hacks.
Get a loyalty program.
Develop quality day by day.
The beauty salon business is a profitable niche for beginners. The first and foremost is to understand who will buy your product/service, then create attractive offers for this audience.
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#12 Statistics on the number of beauty salons at the end of 2021
The beauty market has just survived the roller-coaster period. First, the demand went down. The main reason was the pandemic of Covid-19. Then the popularity of beauty services increased, then again, the process calmed down. Now, the beauty industry is at its peak.
Customers are full of restrictions. However, they are eager to spend on different services related to beauty and healthcare.
Facts:
During 2020 9% of beauty salons stopped working.
A lot of self-employed beauty specialists have appeared during the last two years.
Now, the beauty services have gone mobile. Specialists go to the client's home and serve him there.
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#13 Beauty salon business as a prosperous niche
According to the statistics, the beauty niche will continue to grow. There are a lot of issues, but clients are ready to pay for the quality. So, the rate will develop with time.
The problem is that a lot of salons were closed in 2020. So first, the niche has to come back to 2019 results, then increase.
Yes, it is! You simply have to be ready to work a bit harder than before.
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#14 Conclusions
There are several rules, following which you will win the battle for your loyal audience:
Research the market – see what is missing, then stand out, offering it.
Understand who will pay for your service – it is the only way actually to sell them.
Invest in marketing and professional team.
EasyWeek is eager to help you with opening a successful beauty salon. Stay tuned, and good luck with diving into the beauty business world!
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