Owning a Beauty Salon Way

Owning a Beauty Salon

Way back in the 1890's, Martha Matilda Harper opened a salon in Rochester, N.Y. which grew into a string of salons called Harper Hairdressing Parlors, located in Buffalo, Detroit, Chicago, Seattle, San Francisco, London, Paris, Toronto, and other big cities. Harper was the first person to think of replicating outlets and franchising beauty salons. In the beginning, she trained servant women in her shop to operate her salons, which gave them a chance to become financially independent. After opening a beauty school in 1921, she published the Harper textbook in 1926 in which she explained her procedures, philosophy, and business operation.

Recruits came, paid tuition, were trained, and were then assigned a territory.

Tuition entitled each to a bowl, chair and dryer for servicing customers. Training included how to operate a beauty parlor profitably. At a time when women were often kept from participating in the work world, Harper's Hairdressing Parlors provided an opportunity for women to be financially successful (Larson, 2002).

Harper's Hairdressing Parlors are no longer in existence, of course, and the world is a different place, but owning a beauty parlor still represents an opportunity for financial independence and success. Owning a hair salon is "do-able" even if you don't have a lot of money with begin with. Owning a shop can be profitable and enjoyable. Even in depressed, urban areas hair care salons often thrive. They don't require a huge amount of capital, but they do take a lot of work, a serious investment of time, self-confidence, belief in success, and faith in the dream (Taylor, 2004). This essay will focus on how beauty salons get started, owning a franchise, and the logistics of starting one from scratch.

One of the first decisions to be made is whether to purchase a franchise, buy an existing shop from a previous owner, or start a shop from scratch. A franchise division, or branch, becomes yours when you pay money up front, which allows you to open a shop under an already popular name. For example, Regis Corporation has 10,000 salons all over the country. It buys shampoo by the train load, spends millions of dollars on advertising to build its brand names, and uses sophisticated technology to track each salon's performance. The owner reaps the advantages of bulk prices, business recognition, and national advertising.

Another such franchise, but newer, is Haircolorxpress which specializes in color and custom-blended cosmetic services and aims to have 10,000 shops worldwide in the next ten years. Owners of Haircolorxpress shops pay 3% of their sales for advertising and marketing, and the company helps them plan effective advertising and publicity (Dolbow, 2002). Although there are many benefits to opening a franchise shop, it can be quite expensive. However, for those people who want to start one, business loans (including government small-business loans at reasonable interest) are available. A web site also exists which provides a directory of hair care franchises for sale with information to help you identify the right opportunity that fits your needs (Hair Salon Business web site).

Another way to start a beauty salon is to buy one that is already established. The previous owner might be retiring or moving to another state. Whatever the reason, you would inherit the customers who are already loyal. Of course, you would want to check on the reputation of the salon and be sure the business had a good track record. The age and condition of the building and equipment would be another thing to consider and whether or not you would need money to remodel and upgrade the facilities. If the previous owner rented to stylists, you would want to know who they are, how they get along, and how the operation functions organizationally.

A third way to open a hair salon is to start from scratch. This requires a lot of hard work and patience but seeing your own business grow into a reputable salon would be very rewarding. The fist thing to consider is a good location for the shop. It should be in an area where lots of traffic going by can easily see the building, sign, and where the entrance is. Another consideration is the businesses that surround the location. For example, a Midas Muffler shop on one side and a used car lot on the other would not be appropriate because people who go to those businesses are usually not people interested in getting their hair done. The salon should fit in with surrounding services. For example, a small shopping strip or mall with several types of businesses, such as a restaurant, an insurance office, a real estate office, an accountant, a doctor, dentist, or optical store, and a tanning salon would make an ideal location for a beauty shop (Constant-content.com).

If you are going to own your own shop, you need a business plan. Your plan should include short-term and long-term business goals; a financial assessment of how much the start-up costs will be and whether a business loan will be necessary; a detailed list of necessary equipment (including how much the equipment will cost); a plan for partnerships (if you intend to rent out salon booths), and a marketing/advertising strategy. For example, you might put ads in local papers and on placemats at local restaurants with a coupon offering a special deal for the first haircut. Local radio advertising aimed at people driving is another good bet (but more expensive). Many shops have their own websites now, too. It is best not to "put all your eggs in one basket," but spread your budgeted advertising money around for balanced coverage. That way, if you don't reach your targeted audience in one place, you may in another. KudosBoard on the internet offers consulting services it says will "accelerate the ability for your customers and business partners to refer your beauty salon business to others! They offer three packages: (1) Referral Accelerator, (2) Reputation Builder, and (3) Donation Motivator (Hair Salon Marketing web site).

Someone who wants to own their own salon also needs to find out the county, city, and state requirements for opening a beauty salon in their area. Even if you plan to open a shop in your own home, there are still regulations. You'll need to study the rules and become familiar with all of them right away. You'll need to get a business license immediately, before you open your doors, and look into what taxes and fees you'll be expected to pay.

It will pay to consult an accountant for help setting up a bookkeeping system to keep track of income, expenses, and taxes, and to plan a workable budget.

An operational plan will be needed where you think out how the salon will be run and managed. What will the hours be? Who will work in the shop? Will there be music, coffee, magazines? Will you make appointments, and if so, how will you manage them? How much time will each customer get? Will your place be an inexpensive "in-and-out quick service" type place or will the pace be more elegant and relaxed? If you plan to rent out salon booths, you'll need to work out how the salon is to be organized and who will do what. Everyone should have a part in cleaning, keeping organized, giving exceptional customer service, etc.