Establishing a home salon is no easy task. But there’s no denying that it’s a lucrative business and one that can be highly rewarding for you and your family.
In this article, we’ll discuss 8 essential steps to take when you’re trying to establish a successful home salon. Let’s get started!
Research Your Local Laws
Before you open your doors, research the local laws that pertain to your business. This will help you avoid any legal issues down the road.
You should also consider the regulations for home salons, such as those set by Hair And Barber New Zealand.
The Hair & Barber NZ is a professional association for hairdressers in New Zealand, and its website provides information on training and licensing requirements for opening a salon.
While there are no specific requirements or certificates to become a hairdresser, you will need a licence to operate as a salon in New Zealand.
In addition, if you plan on hiring employees, you’ll need to learn more about employment law in New Zealand.
Many employees will work as independent contractors rather than full-time employees, and this is something that must be discussed with your accountant beforehand so that all taxes are properly reported and paid on time.
Create A Salon Business Plan
A good business plan is the foundation of a successful business, and it should be created before you start operating a salon for the first time.
Your business plan should include:
- The type of services you’ll offer
- Your target audience
- How much will it cost to run the business each month, and how much revenue do you expect to bring in each month
- How much money will it take to start your business and keep it running until profitability
- How long will it take for you to reach profitability
Estimate The Cost
The most crucial step to starting your home salon is to get a rough estimate of the cost for starting out. This will include the cost of equipment, training, permits, and logistics like a portable EFTPOS machine.
This will help you determine whether or not it’s worth pursuing, as well as help you set a budget for yourself so that you don’t overspend on supplies and equipment.
You can do this by looking at what other home salons are charging for their services and researching how much it costs them to keep their doors open.
You can also take into account what the going rate is in your area, which may be higher or lower than what you’d expect based on national averages.
Get Financing
Getting financing for your home salon is a necessary part of opening your own business. Before you can apply for a loan, however, you’ll need to figure out what kind of financing you should apply for and how much money is available.
There are two main ways to go about this: traditional bank financing and crowd-funding.
- Traditional Bank Financing
Traditional bank financing is the most common way for businesses to get funded, but it can be tricky if you’re trying to open a home-based business. But if you have the credentials and experience necessary to convince a bank or other lending institution that your business will be profitable, then they’ll probably be willing to work with you.
- Crowdfunding
Crowd-funding is another option that has gained popularity recently due to its ability to connect potential backers directly with entrepreneurs who need their support.
This method allows borrowers who might not otherwise qualify for traditional bank loans — such as entrepreneurs without a proven track record or those who don’t meet specific financial requirements — to still find investors who believe in their vision and see potential in their projects.
Design Your Salon Space
When you first open your home salon, you want to ensure that your space is well-organised and inviting. This will help keep your clients comfortable and make them feel more relaxed in a new environment.
Here are a few tips that will help you create a cosy environment:
- Make sure that each chair has enough room for the client and that there’s a good amount of space between each seat so clients can easily flow in and out of them.
- Set up a sound system to play relaxing music.
- Consider installing a clean and energy efficient air conditioning and heating system depending on what season it is when you open up. This way, you can be sure that your space isn’t too hot or too cold for comfort.
- Ensure there are plenty of mirrors around so everyone can see themselves clearly while they’re getting ready!
Get The Right Equipment
The equipment you use can make or break your salon, and it will also be a significant cost needed to start out.
For example, if you want to offer manicures, you’ll need tools such as nail files and clippers. If you want to provide facials, you will need a facial steamer and skin cleanser. If your clients will need hair removal services, you will need waxing strips and other products used for this purpose.
It’s never a good idea to save (too much) money on equipment. Ideally, you should invest in the best products and machines so that you can give your clients the best experience possible.
Price Your Services
You must be able to price your services in a way that reflects the value you offer and the experience you create for your clients.
Too high and you will lose clients; too low and customers will not value your work. You need to find a middle ground that makes your services affordable without compromising quality.
Create A Good Marketing Plan
Marketing is the lifeblood of any business. If you don’t have a marketing plan in place, it can be hard to know where to start or how to keep track of what you need to do.
Here are five key elements to consider when creating a plan for marketing your home salon business:
- Define your target audience
- Set goals and objectives
- Research competitors
- Identify channels for reaching customers
- Create a timeline for your marketing efforts
If you’ve no experience with marketing, we suggest working with a digital advertising agency. That’s because digital marketing is one of the most affordable and effective marketing channels today, and it’s important not to miss out on it.
Finally, try to get a mentor whose business advice you can trust. A mentor can prove extremely useful when you’re venturing into the business world with little or no experience.
