Hair salons and day spa businesses tend to be immune to fluctuations in the economy. One reason this holds true in this business is because the business is built around a clientele that returns frequently. It is important to make sure that customers become repeat clients if you want your business to thrive. When you consider any of our tips be sure to think of them in terms of how it will help turning clients into repeat customers. Our advice would be to prioritize these tips in ranking order in how they will help build repeat business.
The day spa industry has typically been immune to economic factors. In the year 2005, there was an average increase of 11% in the revenue in the salon industry dating back to 2002. Success in opening up a hair salon or day spa is not impossible. This type of business offers a wide range of services that people always look for. In addition, the things that people do avail in salons and spas are those that cannot be simply done at home. In addition, paying for a salon service seems to be less expensive than allocating money for things that are more pricy like new cars and appliances.
Surveys about the income that may be earned from salon businesses showed that salon owners do on average earn a nice profit from their business and if these owners are excessively industrious and hardworking, it’s not impossible earn six figures.
For people who are thinking of opening up a hair salon or day spa, they can opt to try three options. They may choose to franchise a known salon, buy an established salon or open a new one from scratch. Aside from this, some may suggest booth rental where a salon is owned by person who acts as some kind of landlord to other stylist who rent spaces or booths on the salon. Typically the most profitable business model is to have employees working on commission including the opportunity to earn bonuses by selling products. This type of business model while being more profitable does have a much higher failure rate.
FACTORS TO BE CONSIDERED WHEN OPENING UP A SALON
But before opening up a salon, a prospective owner must consider several factors. Neglecting to check on these aspects of the salon business may prove fatal to the business in hand.
The first one is the operating hours. An owner must have a clear idea of how long the salon will be open to the customers. Nowadays, most salons are open throughout the week. During special occasions, extended operations hours may be considered. Such types of schedules are pre-empted by the business of the people during the weekdays that’s why the time for relaxation and pampering themselves are commonly achieved during the weekends. Aside from taking note of the work hours of the people, salon owners must consider the possibility of setting up appointments and adjusting operating hours for some clients.
The next factor to be considered is the price range for the services offered by the salon. The prices must be properly appropriated in that they may not seem too high or too cheap. A very high price may limit the number of customers who will avail them while a very cheap service may not generate enough profit for the business. It is advised to survey the status quo of the people living within the area where the salon is located to gauge the people’s capability in availing salon services. In addition, the costs needed for the equipment and supplies, as well as the staff and personnel’s salary must be taken into account when computing for the prices of the services that will be offered. Taxes and other additional expenses should also be anticipated and thus, money must be constantly in reserve. Lastly, for setting up the prices of the services rendered in a salon, the overall profit should amount to a number that can not only cover the expenses and emergency financial problems but also the salaries not only of the employees but also of the owner.
Various types of salon offer a wide range of services. When opening one, the services that will be offered should highly be considered. For hair salons, these services may include hair styling, hair coloring, hair and scalp treatments, perms, hair straightening/curling and a lot more. In some, nail services may also be offered ranging from manicure, pedicure, nail tipping, nail treatments and hand and foot massage.
For spa services, additional services has elongated the list that the older ones can offer. These services are generally classified as skin and body care, hair removal and makeup. Skin and body care services comprise various body beautifying practices such as facial and body exfoliation, massage, hydrotherapy treatments, and tanning services. Hair removal services focuses on various parts of the body like the face, legs, arms back and underarms while makeup services may enlist application of cosmetics, eyelash and eyebrow modification and ear piercing.
In deciding the services that will be offered in hair salon or day spa, the cost that these services will entail should be considered. The owner must weigh if the income that will be generated by these offers can greatly contribute to the total earnings of the business. Also think about if the equipment that is required for the services. Rooms or spaces must be adequately provided for these services to avoid encountering problems with regards to their implementation.
HIRING THE RIGHT PEOPLE
A salon owner cannot do all the work in his business. Maintenance and doing the services is one thing while managing the business and doing administrative duties is another. As such, the owner must hire the right people to do the varying task that come when running a salon business. Hire professional stylists and cosmetologist for example, for services that require the skills of such kind of people. For administrative duties, hire someone with enough experience or if a newbie, has all the qualities that can be found in a good manager. Accountants should be consulted for financial issues like income taxes and expenses while consultants apt for marketing the business must also be kept in mind.
In order for a salon to be successful, proper marketing strategies must be generated and put into action. Some of the most common promotional strategies for salons are offering discounts, holding special events, and conjuring up catchy jingles or tag lines that may pique the interest of the old as well as potential customers.
Before doing or employing any marketing strategy, the economic status of the population must be surveyed. The owner must see if the people are able to avail the services that will be offered by his business. When this issue is settled, the owner can now focus on how he or she can properly promote his or her business to people.
Technology will play a very crucial role in promoting a business. It is best to create a website for the salon. Such website should contain pertinent information that the customers will find useful. It should also be quite interactive to let customers do something on the website like setting up appointments, posting commentaries and making inquiries.
When making a website for the business, the appearance must be something that must be appealing to the eyes of prospective customers. Eye-catching pictures and images of what the customers can attain when they go to the salon must be included in the website. It will be also totally helpful if brief and clear descriptions are provided for the services offered as well as their prices. The website must also be constantly updated for the benefit of the customers.
LOCATION OF THE SALON
Where the salon will be erected is a very important factor that must be given thorough consideration. The area where the salon will be built should be covered with enough light and safe. It must also be accessible to a lot of people and can easily catch attention. Moreover, it would be very good if there are other shops in the surrounding area to attract potential customers that also frequent these shops.
Hair salons and day spas can be situated in places like shopping malls, buildings and the like. In most cases, they can found as stand-alone properties outside and nearby malls because renting spaced inside malls can be quite expensive for some salon owners.
In choosing a location, there should be enough space to accommodate the customers and the different areas for the services that will be offers. Consulting a professional with regards to the layout of the building can provide insight on how the salon must be built. Ventilators and equipment must be properly installed and water pipelines and electrical lines must be working properly.
The most important resource when opening a salon is having enough cash on hand for the business to build. Resources must include those things that can give the prospective salon owner precise and accurate information regarding the industry that he or she will be venturing into. Nowadays, almost everything can be found on the internet so it will not be very hard to acquire information that are related to establishing a salon business. But aside from the internet, the right people must be considered and their opinions heeded if those sound sensible and may seem to help in properly achieving the desired business potential hair salon and day spa owners want.
With the things mentioned above, it can be concluded that starting a business is not easy even though condition seem favorable. Establishing a hair salon and day spa is no exception. Careful planning must be done and a lot of time must be allotted in preparation for such undertaking. The person planning to build a salon must at all times consider asking for help and the opinion of other people. Thorough research must also be conducted to gain adequate knowledge about the nature of the business and to accumulate pertinent details that are important to start the business. And lastly, it must be kept in mind that even though hair salons and day spas had been relatively successful despite the downfall of the economy, the success of any kind of business still lies in the proper way of managing and running it.
We also like to look at the mental aspects of the stress and strain of starting a business. Take a look at self help books and tools to keep a balanced mental wellness.