Tips For Opening A Successful Salon


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.


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.


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.


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.

Hair Industry Trends


One of the biggest new trends this year in the hair salon industry is organic hair color.  Big name brands have left consumers distrustful.  A great way to combat that distrust is go organic especially in the boutique environment.  Organic gives an option that people associate with being natural and better for you.  According to JP Morgan Chase analysis the industry contracted 2% each of the last three years.  The fastest growth is in organic offerings.  Clients concerned with information on the internet about exposure to specific products causing cancer makes organic an easy sell at premium prices.  Not only are consumers expecting organic product offerings but they are willing to pay a premium for the option. Environmentally friendly social responsibility is the way to go for hair salons looking for growth in the coming year.

Beauty Industry

Growth in the beauty industry has been fuels over the last year by cosmetics and skin care.  Lotions and Bath Oils have proven to have seen accelerated growth.  One standout is Lush which focuses on the idea to go green and give back with products like sea salts or bath bombs.  Things like body treatments, bubble bath, hair care and facial care have shown huge growth.  High quality and organic lines have particularly shown growth and increased consumer demand over the last year.

All most 20% of salons have gone to the booth renting business model.  Retail sales drive profits.  The average retail ticket this year is just under $20 per transaction. Retail sales average from 20% to 30% in the more successful salons.    Client visits dropped from an average of 4 times a year last year to 3 times this year. A salon must be in the 15% to 20% average to be profitable.  Check out Salon Today for more industry data.

Booth Rentals Vs Commission Employees

For entrepreneurs who wish to open their own salon some suffer the dilemma of choosing between hiring full-time employees and just renting a booth. Most often, people who opt to rent a booth have no inkling of the situation they are getting into. This results in confusion and most often than not, business owners find themselves in chaos as they realize the problems that come with a renting a booth for business. The concept of renting booths in a salon is a good way to start a new operation because the renters bring with them their own clientel and it establishes a great initial cash flow.

For those who are new to the concept of booth renting, they must take note of the advantages and disadvantages of availing such things for their business. Some people may vouch for booth rental while some may be against the very idea. Nevertheless, the opinions of these people vary and most are based on personal experiences and thus, people must take care in heeding these opinions as something much more different can happen to them if they choose to rent a booth for their business.

When renting a booth, the pros and cons vary according to the points of view of the owner or the stylist and other personnel. If the a salon proprietor chooses to rent a booth, some of the advantages that may come with it are not having the responsibility of providing compensation and insurance for the employees and look for grand ways to promote the business. If the one renting a booth is a contractual stylist, he or she has the freedom of setting the schedule to service the customers. The stylist can also use whatever styling products he or she prefers and all the money earned is his or hers alone.

On the other hand, renting a booth does not always promise positive outcomes for the renter. For a renter who hires other staff for his services, there is the risk of losing them to other businesses that offer a more stable job. Longer working hours cannot also be avoided if the business owner needs to reach a certain quota for his income. The chance to provide an improved quality in the services provided is also missed as staff and personnel do not have additional trainings. Legally, financial issues involving the income and taxes may catch the attention of certain authorities if there no supporting documents to back up the statements of the renter.

For a stylist who rents a booth, the negative side of renting booth comes in the form of having to compete with the more established salons. And if he or she wants to fight off these competitions, training and education for additional skills may be quite expensive. The rental fee also proves to be a burden especially when there are not a lot of customers. Also, the stylist needs to handle all the work from managing the money, buying supplies, and making business decisions.

With the things mentioned above, one may be enlightened regarding the benefits and burdens of renting a booth in accommodating a salon services business. But if filled with doubt, the business owner can still opt to establish a fully owned salon complete with the necessary staff, equipment and supplies. But like booth rental, it has its sets of upsides and downsides.

For the positive aspects, a salon owner has the freewill to do his own bidding in every aspect of his business. He can improve the quality of the services his salon provides if he chooses to let his employees gain addition skills training. And with proper strategy and planning, the limit on the amount of money coming in is infinite. In the case of the employees like the stylists, the promise of having a long-term job is there. The stylists can also build long and lasting relationship not only with their co-workers but with the customers as well. Health benefits and tax payment are shouldered by the business owner and each person employed is assigned with a specific such that one does not need to do a job that he or she has little knowledge of.

For an aspiring stylist, doubts may come in considering renting a booth. The stylist may feel some hesitance especially if he or she is not confident that renting a booth can prove to be profitable for his profession. In this type of situation, the stylist may opt to undertake a commission-based job.

In a commission-based type of job, the stylist will work in a salon. He or she will be given a schedule dictating the days and time regarding the work for the salon. Like any regular employee on other types of businesses, a stylist working on commission-based job gets to be paid with a certain salary but aside from that, there will be a commission based on the standards set by the salon owner for his or her services. Aside from this, the stylist can also get professional help from the other personnel working in the salon. He or she does need to carry alone the burdens that come with the nature of his or her work. Stylists on commission-based jobs can also receive free and additional skills training from their employers.

Taking a commission-based job can be a good opportunity for stylists who are looking for a steady income, but for those who aspire to build their own career and someday have a salon of their own, this type of job can pose some risks.

In conclusion, venturing into any profession does not come easy. When starting a business or renting a booth as a stylist, a person must be professional and ensure that employed or not, bound by a contract or a freelance for providing services, problems in any chosen profession cannot be avoided. Success in any chosen career path still depends on perseverance, patience and the ability to cope up with problems and come up with solutions to solve them.

What Causes A Salon To Fail

Every person who establishes a business faces a very formidable problem: the risk of losing their business. Hair and day spa salons are some of the most lucrative businesses nowadays. Almost everywhere, any one of these is sure to be found. But with this situation, a lot of people who decide to put up a salon of their own sometimes fail in their venture. The reasons for such failure vary from financial problems to issues on proper management of the salons. Aside from these, there are some other factors that were discovered to contribute in the failure of hair and day spa salons.

First and foremost is lack of money to support business maintenance. Some people tend to forget to reserve money for emergency situations. Next is misunderstanding the nature of their business. There are business owners who venture into industries which they lack knowledge of. Unable to perceive the market of an established business may ultimately lead to failure.

Prices that are too high or too cheap may sound dubious to potential customers. Competition with other establishments is also a very crucial factor in making businesses fail. In addition, owners often fail to see that they need help in running their business. Trying to solve problems without consulting some professionals may lead to making incorrect decisions.

So for new hair and day spa salon owners, hiring professionals should be above their list. Next is properly studying and understanding the nature of the business they are trying to build. Financial reserves should also be secured for additional expenses that may come up. And lastly, patience and hard work are the virtues very business owner must have. Establishing a business will not pay off right away. Hardships must be faced. But for each obstacle, one must always think the reason for immersing in his selected industry.

Poor Employees

Dealing With Overly Confident Salon Personnel

Having a hair salon can be a lucrative business. Aside from having the luxury of being styled and pampered everyday, money is surely earned when such business is successful. The owner also gets to widen his or her social connections as different types of customers may visit a salon daily.

But a running a hair salon is not without its problems. The proprietor, from time to time, may prove to be unlucky when they hire by chance stylists or other personnel who seem to feel like they own the salon. With these type of people, negative behaviors can be observed like being late for work, unheeding a business regulation, or doing acts that may seem disrespectful to the owner.

If such things happen, there are several ways that a hair salon owner can try to gain the respect that is due to him or her and such ways can also teach overly confident personnel to exhibit proper attitude at work.

The very first thing that a salon owner must do is to lay down the rules and regulations for the employees. The owner must relay the expectations that he is he hopes to see in each employee. Details must also be provided to provide so that the stylists and other personnel can gauge their performance when working. Each employee should be made aware of his or her responsibilities and the limits by which he or she can perform.

If the owner wants to be respected by his/her employees, then he/she must show the same to them. Showing kindness and good behavior towards one’s employees can be rewarded with respect more that the owner can bargain for. Also, a proprietor must demonstrate that he is not exempted from the rules and regulations he implements on his business. When employees see that their boss does the right thing, it is not impossible that they will follow suit. A superior must be someone that the employees can always look up to.

It’s not bad to mingle with the staff and personnel but an owner must be conscious of the relationship that he forms with his employees. If an owner is too friendly, his kindness may be abused and other staff may think that favoritism exists within the company. As such, an owner must keep his relationship with his employees as formal as possible, restricting the connection to the matters that are business-related.

When a particular stylist or any personnel proves to be unproductive, then the owner must not hesitate in firing that person especially when such a person can be the cause of downfall of the business. Letting a lazy and overly confident person running about can influence the other employees and the development of bad habits among the people managing a business can pose negative effects. An employer should not be afraid of what other people say and he may seem cruel when he fires a person but business and business and those things that are bad for the business should be eliminated.

Lastly, the owner must not forget that he controls what happens with his business. He may heed some ideas regarding on how he can run his salon but in the end, it’s his decision that will determine the path that will be taken as he continues his ventures in money-making.

How To Make A Salon Profitable

To make their salon businesses more profitable, there are a number of ideas that the owners can try.

Booking appointments is one method. With the advent of technology, social media and various phone and computer applications can now be used to gain more clients through making appointments. Online booking gives the customers the satisfaction of reserving a slot for a certain service without any hassle. This also serves as a good platform for promoting one’s business.

It is important to note the proper use of social media in promoting one’s business. Information posted on various websites must be thoroughly check the details to avoid sending out false information. Aside from giving accurate and precise information, the use of images to catch the attention of potential customers is highly recommended. For salon owners, posting pictures of what they can look like after availing a particular service is a temptation that can be very hard to ignore.

For those who are still contemplating about building a business, they must choose a name for their business that is sure to catch the attention of potential customers. Even the logo of these names must be able to catch the eyes of the people.

The front desk of any salon business must also give something that can delight customers. Giving gift certificates or promotional gift cards can make the customers a little bit more special. In addition, promotional services like loyalty programs or contests can be conducted to provide the clients with additional entertainment while they pay for their salon services. Giving out small tokens like keychains are also recommended. Such things done to show appreciation for customers can make them recommend their favorite salons to friends and loved ones.

Improving one’s skills that are related to the business at hand can greatly help in making more profits. If there are any new services that can be offered to clients, news may spread out and new customers may be attracted in trying out those new services.

Helping to resolve the customers’ problems as well as their friends’ is good way to attract new clients. If news spreads out about the quality of service and the good hearts of the service providers, more and more people will be tempted to try out a salon.

Lastly, it won’t hurt to consult a professional who can provide a professional opinion in promoting a salon and its services. Consultants can give the facts with regards the market and other issues that can be very vital in promoting one’s business.

Overall, there’s no single way in making a salon business gain more profit. A salon owner must be willing to try out new things and should not be afraid to conform to the new changes happening in the society as the world becomes more modern and progressive.

Tips For Running A Salon

If you’re a little vain and you’re the type of person who likes to get pampered, then when you think of starting a business, establishing a hair salon or a day spa is one of the things that surely comes to mind.

When venturing into any type of business, an entrepreneur must properly the aspects that will play a vital role in making a business successful. Usually, a hair salon or day spa operate during the day and may be closed on weekends depending on the location.

For a first time salon owner, it can be helped that one may try to do things all at once or have the work all by himself. This kind of attitude must be utterly divided. The owner must hire staff and personnel that are adequate and fit for the different jobs involved in running a salon. Allocating tasks to the right people ensures proper operation and the owner can focus more on other tasks requiring his or her authority and expertise.

The prices for the services offered by such types of salon must also be taken into account. Customers will have doubts subscribing to a service if they think that they will not get as much as what they are going to pay. On the other hand, if the price range for the salon services and products is very cheap, there is the risk of not profiting enough to maintain the business and the danger of bankruptcy also looms around.

To avoid losing the business, some factors must be considered when setting the prices for the services rendered by a salon.

The cost of labor for the staff and personnel as well the owner must be taken into account. The salary of the staff may be paid by the hour or the amount of time consumed in attending to a customer. Aside from the salary, the cost of maintenance should be properly estimated as to avoid spending more than the allocated budget for the business. Lastly, the overall profit of a business plays a very crucial role in its success. Percentages allotted for each type of salon service must ensure that at the end of each month or any time when the profit is calculated, the expected amount of money earned is reached.

Repeat Customers

In any kind of business, the hardest thing that business owners can encounter is how to keep their customers in coming back to their shops. For people who own salons, it’s hard to gauge the degree of satisfaction of the customers since people may have different standards in assessing the services rendered to them. Because of this, salon owners face the dilemma of attracting and keeping the right number of customers that will avail of the services offered by their salon.

To solve this problem, salon owner can employ one method used in making the customers come back is most businesses: customer service. With the advent of technology, customer service has been easier and using such method can easily influence a customer into coming back to a salon.

To provide a good and reliable customer service, a salon owner may consider doing the following.

Good loyalty programs where the customers can avail points or free service as a reward is a good temptation for a customer to come back. Next, make sure that a new clients will come back by giving them some kind of reward just because they went to a salon. A discount or a small additional service can pave the way in building a long and lasting relationship with a client. Aside from the new clients, old customers must be given the same importance. Check on them and offer something that can entice them to go back to the salon, like a new promo or discount on some salon services. Make sure to give extra special treatment to generous customers or even to those who are just so nice to understand any misgivings.

For those who are already inside the establishment, make sure that they feel comfortable as they are serviced. Offer cold beverages or small snacks and always inquire if you can do anything for them. Also make sure that the other employees are doing the same treatment to the rest of the customers. If there are any complaints, make sure that they are clearly understood and resolved. Do not let the customers leave the salon disappointed.

For the salon, always ensure that the equipment used are all up and running. Always stock up on supplies. It is recommended to always use the most effective hair products. Renovation is highly suggest to give the salon a new and cooler feel that can appeal to the customers.

In general, customers are the reason why businesses flourishes. They may complain at times or they may ask for something that is highly improbable to happen. Nevertheless, salon owners must bear such things and keep in mind that good and quality service is the first and foremost reason to make the customers come back.