This guide will help you start, open, build, attract and retain clients, and grow and maintain a steady and profitable beauty and hair salon business. Learn the tips to create a working salon business plan, market your services, and start accelerating your growth with a 24/7 online appointment booking service for your salon business clients.
A detailed salon start-up checklist to set your business on the path to success.
A salon business name is your identity in the market. It is so important that it should enable clients to visualize your business and the quality of service you offer.
What does a great beauty and hair salon business name look and sound like?
Great business names for salon businesses should meet the following qualities:
An ideal business name should be authentic in a way that captures your brand goals. This includes questions like the intent of your running a salon business, guiding values, your differentiating ideals, your foundation, and your brand personality.
Choose a unique name that won’t confuse your target market. Pay closer attention to your geographical location to ensure no similar business have a similar name within your region.
Choose a salon business name that is easy for your customers to remember. Additionally, the name should be simple, easy to spell and search on Google.
An easy-to-remember salon business name will keep your business in the minds of your customers.
Your beauty and hair salon business will grow. Choose a name that will last as your business expands.
Remember, it takes time to build a brand. You’re better off with a less trendy name that will last through your business than a trendy name that will phase out quickly.
Focus on choosing a name that does not conflict with existing businesses. The name should earn your business exclusive legal rights to operate in your state.
Avoid choosing names that are like businesses in the same industry. It may be a lesser tussle if industries bear part of a name but operate in different business lines.
With a glimpse into what makes a great business name, keep the tips below in mind when choosing a beauty and hair salon business name:
Unless it’s very necessary, avoid using abbreviations when choosing a business name. Your business name can lose meaning if it’s lost in abbreviations.
Punctuations can make clients misspell your beauty and hair salon business name and that may make it difficult for them to find you on search engines or confuse your business with others with similar names.
Trust your instinct. Choosing a name, you don’t like is betraying your intuition and you won’t be happy working with that name throughout the existence of your business.
Shorter salon business names are easy to remember. Long and meaningless names are difficult for salon business customers to remember.
The purpose to use a salon business name with lesser syllables is to make it easier for clients to remember.
The more you can keep your business name in the minds of your clients the easier it will be for them to keep you in mind whenever they need your business services.
If you’re not sure, consult with a business developer to assist you to choose an ideal name. Even if the ultimate decision lies in your hands, ask for opinions from other people to ensure you get it right.
A name search will reveal whether the name you want for your beauty and hair salon business is available.
List a couple of names so you can move on to the next in case your first choice is not available. Once you find a name available, proceed to register it for a trademark to secure legal protection and exclusive rights to your business name.
Before you proceed to use your business name, check its availability for a domain name and social media handles.
Register the domain as soon as your business name search comes through. Secure the social media handles to ensure they have the same handle or closer.
If you intend to expand your salon business in the future out of your location, it’s best to avoid specific place names.
Proceed to include a place name if you have no foreseeable plan to grow your beauty salon business out of your current location.
Remember, your beauty and hair salon business name is the thing clients may first interact with. Choose it keenly to be in line with your business mission and values.
Carefully avoid names that may convey a negative impression before your beauty and hair salon business.
Find out the legal requirements of your state and the federal government to guide you to start your beauty and hair salon business the right way.
Consider the following requirements and pick what works for you. This is only a guide and you can add more when you’re making a fine copy of your salon business’s basic requirements.
A salon management course will equip you with the skills you need to effectively start and run your salon business.
If you’re hiring a salon manager to lean on your behalf, they should have dedicated salon business management skills.
Researching your state legislation will protect you and your business against landing in trouble after you’ve your business.
It will give you a glimpse into all that you need to comply will the rule of law so you can prepare yourself well as your start your hair and beauty salon business.
The state may require:
These are not the only requirements. Ensure you check in with your state to meet all requirements for smooth business operations once your business is set to run.
What is a salon business plan? How do I create a salon business plan? How much does it cost to start a salon? Why salon is a good business? How can I open my own salon?
A working beauty and hair salon business plan is the key to unlocking your salon business potential. It is the blueprint that guides your step from day one and throughout the existence of your beauty and hair salon business.
Is there a perfect salon business plan? How can I create the best salon business plan for a business?
Start creating your salon business plan by applying and building on the tips below. These are some of the best tricks that successful salon businesses use.
Market research is among the most important part of opening a process. It gives insights into the nature of the market you are about to enter.
Engage a market research firm to give you action findings about your salon’s target market. You’ll also get facts about the strengths, weaknesses, opportunities, and threats facing your competitors.
Leverage the failures and successes of your rival salon businesses and craft a plan that will set you ahead of the rest.
A summary of your salon business presents an overview of the entire business.
This includes your goals, your short-term and long-term goals, the intended salon location, and the budget estimates to get you off the ground.
Describe your salon business to highlight the type of salon you purpose it to be, the list of salon services you intend to provide, and the unique selling point (USP) that will help you stand the competition from rival businesses in the same industry.
A salon marketing plan documents the strategy to reach out to potential customer leads, tell them about your services, entice, convince, and bring them to your business for services.
Most successful beauty and hair salon businesses combine two or more marketing strategies for maximum returns.
The most common salon marketing strategies today fall into two broad categories of online and offline means.
Online salon business marketing involves reaching out to an audience pool of potential customers via business websites, business social media pages, online directories, or promoting ads to a target audience.
The offline marketing process for a salon business can involve work of mouth marketing and getting referrals from friends, family, and former clients.
A salon business financial plan assumes a three-dimensional perspective. It covers the start-up costs, ongoing/maintenance costs, and target revenues.
The goal of running a business is to generate profitable revenues in exchange for the services that your salon business is offering to customers.
The basic items in financial planning for salon businesses is the estimated start-up and maintenance budget and financial project often quarterly, semi-annually, and annually to assess business performance, sustainability, and exploring opportunities for growth.
What is a salon business concept? What are different types of salons by size? What are the different categories of salon businesses by size?
A salon business concept is a type of salon by size, price, and services a business owner purposes to start.
Use the findings from your market research to define the concept of the types of a salon you envisage.
Market research findings reveal characteristics of your salon business’s potential clients, the services they seek, the state of competition in your target, their offers, wins, and shortfalls.
Utilize the valuable information from the findings to create a unique concept for your salon business.
Salons vary from one another by size. Usually, the bigger the salon the higher the start-up and maintenance costs with higher revenue return expectations.
Small salons take lesser space and cost less capital to start and maintain, with average revenue return expectations.
A beauty parlor is the smallest salon size on the list. It is a characteristic of basic beauty and hair services, a few staff, and requires minimal operational space.
Beauty parlor salon businesses operate with minimal capital, consequently commanding lesser revenues and profit margins.
A beauty salon is the second on this list and is a medium-sized salon with more services compared to a beauty parlor.
Diversely skilled professionals account for the range of services offered commanding higher prices. The reception area of this business model may have skin care, hair, and hair treatment products.
The start-up and maintenance costs of a beauty salon business are relatively higher. In turn, revenues and profit margins are also higher.
Spas and wellness centers offer premium services to premium customers. They are mainly run by professionals with specialties in diverse fields of beauty and hair care services working with assistants.
The diversity of skills and experience of the beauty and medical professionals in spa and wellness centers offer an expansive range of services.
Pricing services are much higher in spa and wellness centers. Clients who visit the spa and wellness center are willing and able to pay higher prices for the premium services.
As the name suggests, chain salons are a set of the same business operating as a franchise or run by the same owner. It can be a collection or mix of beauty parlors, beauty salons, and spa and wellness businesses.
Salon business models already define the pricing category. The most common pricing models for beauty salon businesses include:
Salon businesses running on economy pricing offer basic services using low-end-priced segments. They rent cheaper spaces and this helps them stay afloat in their businesses.
Moreover, economy pricing targets clients at the bottom of the pyramid seeking cheaper services. These clients do not give much thought to the spacing in the salons or the products used to serve them.
The prices in business pricing are mid-range and the services are of a higher quality compared to the economy.
The staff working in such business environments are more professionals and clients can consult for optimal decisions.
Premium pricing salon business services target high-end clients.
You’ll commonly find beauty and hair salon businesses with premium pricing located in dedicated buildings.
The businesses employ professionals with higher qualifications like diplomas and higher-grade certifications. They use high-end equipment, technology, and products for their clients.
Luxury pricing salon business services target VIP clients who with overly higher standards and service quality demands.
Businesses offering such services are common in areas with low traffic near neighborhoods with individuals with a higher disposable income.
They have ample parking space for their clients.
Every beauty and hair salon business purposes to offer the best services to their clients. To start on the right track, ensure you pick services you and your team are comfortable and confident to offer.
Once you make a list of the services that you offer, you want to ensure that the intended salon treatments meet the requirements of your clients.
Beyond salon hair-cute and hair styling, here are some of the most common treatments that clients are looking for:
What is scalp treatment? What are the benefits of scalp treatment? Is scalp treatment helpful?
Salon businesses offer scalp treatment services to their clients to keep the scalp and hair clean and healthy.
Treating the scalp involves procedures that unclog hair follicles inducing them to release natural conditioning oils that improve the overall health of the scalp and hair.
What is hair gloss treatment? Is hair gloss beneficial to hair growth? What beauty salons offer hair gloss treatment?
All clients who want shiny and stronger hair will ask you for hair gloss hair treatment services.
The process is simple. It boosts cuticles by lifting them hence smoothing the hair surface. The outcome is great-looking and firm hair.
Help your beauty salon customers to correct and maintain the color of their hair with hair toning treatment services.
Every client desires a hair color that looks great on them. Work with your beauty salon customers to understand their needs and provide them with the color taste they desire.
Applying hot oil treatment service entails the sealing of hair cuticles, nourishing customers’ hair locks, and promoting healthy growth.
Protect your customers’ hair against UV rays, and make it bright and soft through detox treatment’s mechanical, physical, and chemical processes.
Salon relaxer treatment services help in straightening and managing customers’ hair by applying selective lotions and creams.
Protect your clients’ hair from split ends and breakages by making the hair stronger using moisture-deep conditioning treatment services in your salon.
Every salon business needs financing to get started. Everything you need to be done within your business requires money.
The question most people ask themselves when starting a salon is “how much does it take to start a beauty and hair salon business?”
There is no one size fits all cost to starting a beauty and hair salon business.
Some of the factors that make this cost vary from one business to another include location and client target. If you’re targeting high-end clients in a city’s CBD, then the cost will be higher compared to a salon located downtown and outskirt of the city.
Other costs may include the set of services that you intend to offer in your beauty and hair salon business. Salons with basic services like hair-cuts, styling, pedicure, and manicure would cost less than services that include massage services in their packages.
Different states offer varying loan packages depending on their state rules governing businesses. Here are the most common sources of funding options that you can check out for your beauty and hair salon business:
Most salon business owners start with personal financing from their savings. It’s only when the funding is inadequate that investors explore other financing options.
In the event personal savings become insufficient, then friends and family can be another viable option.
The advantage of seeking financing from friends and family comes with zero or low-interest rates.
Instead of seeking direct funding, salon business owners can seek financing for their salon equipment like hair dryers, sink installation, and chairs which can be overly expensive when starting out.
The government provides Small Business Administration (SBA) loans to businesses to purchase long-term fixed assets and operating capital.
SBA loans are highly competitive and need adequate credit history for businesses to qualify.
This is a micro-loan that supports beauty and hair salon owners to start and run their businesses.
Find out with your state the available SBA loans for your business and the application processes.
Your hair salon business’s location will dearly influence your success in determining the number and type of clients checking in and revenue levels.
As you seek the best business location for your business, here are a couple of the key things to guide you make a better choice:
Prioritize an area with higher people traffic. Higher traffic grows your chances of getting more clients.
Your number one choice of salon location should have adequate parking space. If your client knows you have parking for them, they’re likely to consider your services.
Focus on areas with fewer salon businesses to stand better chances of poaching new clients. Such a location could be near shops and business centers dealing in other lines of services.
locations near highway intersections where clients can turn easily get more clients.
It’s easier for a client to make a turn and check into a beauty salon business than driving several meters off the highway to seek service.
Some salon business enthusiasts could prefer to start their salon businesses at home to save on business premise costs.
Even if you run your business from home, you should ensure that you have the right tools, furniture, and supplies required to offer the services.
Check with your state legislation and meet all the requirements for running a salon business at home.
As a new salon business person, be keen on how and the types of salon business equipment to acquire. It all will depend on the list of services your services can offer:
Use the salon equipment, tools, and items below as a starter list of what you may need to start your new or upgrade your salon business:
Set up and equip your reception impressively to give your clients a memorable experience:
Hair styling is one of the most common services that beauty and hair salon businesses offer to their clients. Prepare your business with the essential tools that you need for your salon business team to offer competitive services to your clients.
The list of hair styling tools can include, but is not limited to:
It is not a must you start with all these tools. Select the most essential ones to get you off the ground then you can always acquire more tools and upgrade your services.
Apart from fixing your clients’ hair needs, facial services is another area you would want to address. Beyond looking for hair services, clients are also looking for professional facial treatment services. Use this to your advantage because most clients would prefer to get all their services within the same location as opposed to jumping across multiple services.
Some of the tools that you need for your salon facial services would include:
Commit to get the best equipment with the budget you’ve set aside for your business.
Hair cutting, styling, and facial services are the most common functions that will utilize the shampoo area of your business. Get started with these tools:
This list may not be exhaustive. Remember services differ from one salon business to another. Pick what works for your business or add more items as necessary.
You need pedicure and manicure tools to take care of your client’s fingernails and toes. Consider the following tools and adjust as appropriate to suit your business needs:
If you’re starting out, you may want to incorporate manicure then pedicure services one at a time, and then upgrade as the clients’ demands rise.
In addition to the tools above here are other general supplies that you may need for your beauty and hair salon business:
Any other supply can fit into this category of general supplies for beauty and hair salon business.
Apart from the service you offer to clients in your beauty and hair salon business, visitors, customers, and the general public may purchase salon supplies.
Selling retail supplies in your salon business may not be necessary to get started, but it will be helpful in the long run.
Here are some guiding categories of the items that you can stock and quickly start selling at your beauty and hair salon business.
If you are looking for what to sell, the list above will give you a head start.
Take precautions against possible risks to your salon business. An ideal insurance policy as part of the requirements to start your salon business. Legally protect your business, your staff, and your clients with a beauty salon insurance cover.
Reasons why you need insurance coverage for your beauty and hair salon business:
You can also consult with your state to find out whether there are any mandatory business licenses you need to start your beauty and hair salon business.
Salon businesses have the chance of getting returning customers and recommendations from previous clients. Therefore, the quality of first-time services greatly influences return clients and recommendations.
Choose a team that will ensure exceptional and satisfactorily services to your customers. Assemble your beauty and hair salon staff keeping in mind that they can make or break your business.
A thorough hiring process of salon service staff can give you an upper hand towards getting the right team ready for excellent beauty and hair salon services to your clients.
Successful salon businesses use these tips to get the best teams to serve clients:
The staff you intend to hire should possess the skills that match the services that you purpose to offer to your clients.
Beauty and hair salon businesses that operate with teams should hire individuals comfortable with working with teams.
A positive will culture of healthy working relationships both with clients and the team members working in your beauty and hair salon business. Though it requires time to learn a person’s attitude, basic interactions can give you a hint. It is best to hire staff on trial to have adequate time to weigh in their work ethics and attitude.
Existing and new beauty and hair salon businesses can consider the following positions and pick what they need then scale up as they grow:
Who is a salon manager? What is the work of a salon manager?
If you intend to run a medium-sized or bigger salon, a salon manager will help with the overall management services and coordinating your team.
Who is a salon receptionist? What does a salon receptionist do in a beauty?
A beauty salon receptionist greets and welcome clients, answers the phone call, manages appointments, answers client questions, and provides them with any other support they may need.
Who are aestheticians and what do they do? What is the difference between aesthetics and esthetics? What do aestheticians use?
Aestheticians are skin care therapists also called skin care professionals skilled in facial and skin cleaning, beautification, and maintenance.
What’s the difference between a hairdresser and a hairstylist? What jobs can a hair stylist do? What is a hairstylist called?
A hair stylist specializes in identifying hair designs and doing them according to a client’s preference. Hairdressers provide hair coloring, cutting, and shampooing services to beauty salon customers.
Who is a manicurist? Who is a nail tech? Who are considered nail technicians?
Nail technician professionals specialize in nail extension services, manicures, and pedicures and usually work from beauty salons.
Manicurists help beauty salon clients maintain their nails and you would want them in your camp.
Who is a massage therapist? What do massage therapists do? What is massage therapy? What is therapeutic massage?
Although a massage therapy business can run exclusively, you can consider including it as part of your beauty and hair salon business.
Select a suitable online salon appointment reminder and scheduling app for customers to start booking your services from your website and social media.
Look for the features below when choosing an ideal appointment scheduling software for your beauty and hair salon business should have the following features:
Most beauty and hair salon businesses today are getting more clients by accepting client appointments from their website and social media online presence.
It is as simple as adding a unique appointment reminder booking link that you get once you start using the appointment reminder app.
Start a Free 14-Day Trial: Check out the Appointment Reminder solution for online appointment scheduling and booking for beauty and hair salon businesses.
Beauty and hair salon businesses operate from a physical location making it important to attract new clients and retain existing clients.
Explore the following salon business marketing tips to attract new clients and maintain returning customers:
A quality business website is a powerful sales tool that helps clients discover your business and book their next beauty and hair treatment.
Ensure your website is responsive across all devices especially mobile to increase your chances of getting more online client appointments.
Salon businesses use their business websites to:
Getting your business website right will get you a step closer to succeeding.
Successful beauty and hair salon business run maintain and run an active social media presence.
Social media channels provide a pool of potential clients. Use it to your advantage.
Online directories are internet-powered catalogues that list businesses with their contact and service information. They are popular among beauty salon businesses looking to get clients to book online services for their business services.
Here are the benefits of listing your beauty salon business in online directories:
Listing your business on reputable online directories is a plus for your business as it helps you gain more exposure, get more leads, and potentially more customers.
Working with other businesses in your area can grow the client reach of your salon business. It’s a beneficial means to strengthen your brand by growing your market reach.
Benefits of your salon business partnering with other businesses:
Businesses that collaborate with other businesses gain more traction in authenticity.
Succeed in your beauty and hair salon business by paying closer attention and implementing every step of the process with these tips: