Knowing how to start a hairdressing business is easier said than done. But if you have the right information and financial support, this process will be easier on you.
Hairdressing has proven to be a long-standing and staple business in the beauty industry. In fact, hair salons were less affected by COVID than other businesses. Some people even turned to this business at the height of the pandemic.
It’s because salons will always be in demand. After all, people will always need to cut their hair, right? It is an essential service in every community. In addition to this, it’s an easy business to set up and maintain.
That’s why a lot of people are interested in opening hairdressing businesses today. However, doing so is easier said than done. There’s a lot of hurdles to overcome in order to be successful.
In this article, we’re going to make things easier for you. We’ll share steps you need to take to build a hairdressing business. We’ll also tell you how to get financing so you can grow and be successful.
How to Start a Hairdressing Business
Step 1 – Write a Business Plan
Every successful business starts with a business plan, and the hairdressing business is no exception. It’s the most important aspect of starting a business.
It describes the physical, financial, and organizational structure of your prospective business. It shows you, potential investors, and lending institutions:
- How you’re going to make money
- Who your ideal customers are
- Which locations are ideal
- How your day to day operations will be, etc..
A business plan gives you the general idea of how you want your hairdressing business to look like.
It’s recommended that you do some market research so that you can get it right. You may also need to take a class, hire a financial planner, or a lawyer.
Step 2 – Draw a Budget
As soon as you have a business plan, your next line of action is to draw out a budget.
If you’re a home based salon, a few thousand dollars should be enough to set things up. The capacity for a home based salon is smaller than a commercial one, and as such, your expenses are limited.
However, starting a hairdressing business in desirable locations could cost more than $100,000. There’s more chairs, desks, supplies, equipment, etc to buy and you have to factor in rent money too.
It’s always wise to have a general idea of how much you’re spending. It prepares you mentally when the time comes for the expenses.
Step 3 – Choose a Good Location
Starting your hairdressing business from home is not a bad idea. It just isn’t really scalable, and may come with a few security and legal risks.
To build a thriving hairdressing business, your salon has to be in a location that will attract your ideal clients. It must be easily accessible to them, too.
Establish your salon in an upscale shopping district if you’re aiming to attract an affluent clientele. If you’re focusing on young customers, you should be located in trendy or up-and-coming neighborhoods.
Step 4 – Obtain Necessary Permits
It pays to be on the good side of the law.
So, get the necessary permits in order to operate legally in your chosen location. This includes business licenses, permits and other legal documents. Ask the local government of that region for more details on this.
You can also consult an attorney if things look fuzzy to you.
Step 5 – Stock Up on Inventory
Get everything you need to run your day-to-day operations smoothly.
For starters, you’re going to need chairs, washing stations, hair tools, and styling products. These items are needed in order to cater to prospective customers.
You can also stock up on products that they may need after getting a service from you. This way, they can maintain their new look and be satisfied with your work for a longer time.
Step 6 – Hire a Team
It’s always wise to have a team of stylists, even if you’re an excellent stylist yourself. This improves your profitability, especially when you’re in a retail space and have a steady stream of customers.
When hiring stylists, keep your target customers in mind. Pay attention to their technical skills, knowledge, and talent. But remember that their personal character and overall aura are quite important, as well. After all, the right candidate should be able to give your ideal clients the best experience at your salon.
Step 7 – Create a Marketing Plan
Finally, build a plan to get the word out on your new salon.
You should do this even before you open. This way, you can generate enough buzz for your launch and go upwards from there.
So, launch your website and do some online adverts. Start taking appointments online before you open up – that’s if you don’t want to do walk-ins alone.
You can also do some ads in the local paper or media. A launch event or promotion is ideal too.
Once you’re up and running, devise an ongoing marketing strategy to keep customers flowing into your salon. This way you can keep growing.
Getting Finance For Your Hairdressing Business
Knowing how to start a hairdressing business from home is a good thing. In fact, knowing how to start a hairdressing business from anywhere is fantastic. However, all that knowledge is wasted if you don’t have the finance to start your business:
There are many ways to finance your hairdressing business. If your business plan shows that you don’t need that much of a capital, you could probably finance your operations by yourself. But in most cases, your budget will be more than you can afford.
That’s when you need to approach a traditional bank or other finance institutions for a loan. Before doing that, check your budget and research what types of loan you need.
If you’ve gotten a new space but need expensive salon equipment, apply for equipment loans. But if you’ve yet to get a space, buy necessary equipment or hire stylists, it makes more sense to get a small business loan. This allows you more flexibility on your purchases than equipment financing.
But make sure to only get loans for things you actually need. At the same time, the rate for smaller loans may look attractive, but they may not provide enough money to sustain your launch and day-to-day operations. Weigh your options to come up with the best plan.
Lastly, don’t forget to get the necessary documents asked by the lender before submitting your application. Don’t hesitate to ask them questions if you’ve got something on your mind. Finally, make sure you respond quickly to the lender’s queries so that your application won’t be delayed.
Kickstart Your Hairdressing Business With Ease
Knowing how to start your own hairdressing business may seem difficult. But if you’re serious about it and are armed with the right information, that process will be easier on you.
Have a business plan, set a budget and get necessary permits before setting up shop. It’s also important to get a business loan to finance your operations. This way, you can start the business whenever you want.
If you need further assistance, Unsecured Finance Australia is here to help. Apply online and you can receive your approval within 24 hours.
Find out more by taking a look at our unsecured business loans.