Are you wondering how to open a hair salon? You are in the right place!
This article reviews all the main steps you will need to take to complete your project.
Do the market research of your hair salon
The first step in opening a hair salon is to conduct market research. This aims to allow you to validate your future exhibition’s commercial potential in the area of establishment that you are considering.
For this, you will need to conduct comprehensive research on industry trends, the business potential of the location, and analyze your competitors in-depth and the expectations of your future customers. Your barbershop business plan would be an instrument that represents the organization from start to finish and back to front. We consider it a vital roadmap for Maven business plans that shows where you need your business to go and how you plan to go there.
Typology of the hairdressing market
The hairdressing sector includes three main types of players:
- independent hairdressing salons, which remain largely in the majority,
- hairdressing salons attached to a brand, which represent 10% of salons,
- and home hairdressers, who make up 20% of the entire industry
Some aspects of hairdressing salon regulation
It is essential to note that access to the profession of hairdresser is regulated. Indeed, it is necessary to hold a professional certificate, a hairdressing master’s certificate, or a capacity issued from an equivalent diploma to practice.
Opening a hairdressing salon without a diploma is only possible in villages with less than 2,000 inhabitants: there is an exception allowing hairdressers for men to exercise, provided that it is an activity that generates only one income.
It is also compulsory to register with the Chamber of Trades, which requires carrying out a preparation course for installation.
As you can see, hairdressing is a mature market in which competitive pressure weighs on business margins. By entering this market, you run the risk of facing many competitors. Therefore, it is essential to take the time to carry out a real market study before setting up a hairdressing salon.
Create an independent or branded hairdressing salon?
Several choices are available to you; you can: open a men’s, women’s, or mixed hair salon; an upscale or inexpensive living room; but one of the most critical choices is that of setting up an independent hairdressing salon or of choosing to be attached to the brand of a network.
Trade fair under the brand
Opening a franchise trade fair will reduce your room for maneuver but will allow you to benefit from the reputation and marketing force of a large group.
Independent living room
Setting up a freelance hair salon will give you more freedom and flexibility, but it will also take more work to make a name for yourself and acquire a clientele.
On average, the turnover of an independent hairdressing salon is $80,000 per year. This is therefore 3 to 4 times lower than the average turnover of franchised hairdressing salons.
Find a room for your hair salon
Choosing the location of your hair salon is an essential step, which will directly influence the success of your business.
An establishment within a busy street will allow you to benefit from high visibility and make yourself known quickly but will cost more in rent.
Conversely, choosing a more indented street will allow you to save on rent, but will probably require more investment in advertising.
You can also choose to take over an existing hairdressing salon: be careful to negotiate the price of the goodwill depending on the location of the salon, and its notoriety.
Choice of the legal structure of your hairdressing salon
Your hairdressing salon’s legal status is essential because it will have a considerable impact on your business (on its mode of operation, its taxation), but also on your personal life (social contributions, liability for life of the debts of the company).
The ideal remains to get advice from a lawyer to choose what will be most suitable for you: sole proprietorship or one of the many existing company forms.
It is generally not recommended to opt for auto-entrepreneur status because of the turnover threshold not to be exceeded, which is relatively low. It may limit the development of your business.
The marketing plan of a hair salon
Once you’ve done your market research, decided on the type of trade show you want to set up, and found a location for your business space, the next step is to make a marketing plan.
Hairdressing being an extremely competitive universe, it is essential to think about a solid marketing plan oriented towards the long term, which will allow you both to find new customers and retain them.
Street marketing operations, such as distributing discount coupons for a first visit, can help build a customer base. An active presence on social networks also represents an excellent opportunity not to be forgotten.
The necessary human and material needs, and the search for suppliers to set up a hairdressing salon
To open a hairdressing salon, it is necessary to make the first significant initial investment to acquire hairdressing equipment: workstations, chairs, bins, dryers, and hairdressing accessories.
You will also probably need to recruit one or more employees: the use of apprentices is every day in hairdressing, but it is essential to ensure that you hire qualified and knowledgeable staff and do not change too frequently, risk damaging customer loyalty.
Finally, the management of a hairdressing salon requires the subscription to several essential services, particularly insurance covering you against the risks related to your premises, your customers, and your activity, or an accountant to help you in the management.
Here you will have to start by listing all the means necessary for the exercise of your activity, then approach potential suppliers to ask them for quotes to quantify each position precisely.
The business plan of a hairdressing salon
Document where you will detail your business plan and the objectives you set for the years three years to come; the business plan is essential to create a hairdressing salon.
It will allow you to check that your project is financially viable, will be a most useful point of reference for your entire team, but above all will be essential to you when looking for funding.
The business plan of a hairdressing salon consists of two parts: a financial forecast to estimate the profitability potential and the company’s borrowing capacity, and a written piece highlighting the strengths of the project. .
If you are not used to making business plans, the right solution is to use specialized software.
Using a business plan software allows you to be guided with instructions and examples and not to worry about the calculations carried out automatically by the software.
This solution is also often much less expensive than hiring a consultant.
Easy to use and available for free on a trial basis, The Business Plan Shop has software that will guide you step by step and allow you to create a professional quality business plan quickly. You can try it for free by clicking here.
Armed with your business plan, you can then embark on the last step of creating a hair salon: fundraising.
Finding funding to set up a hairdressing salon
On average, creating a hairdressing salon costs $42,000, while a salon takeover costs around $58,000.
Choosing from among the various possibilities for financing the installation is essential: personal contribution, bank loan, repayable advance, and recourse to ACCRE, the surety company, etc.