Salon Management: Grow from Cosmetology School Seed to Salon Flower
Cosmetology school is about so much more than learning to cut hair, paint nails, or apply makeup. Much of what is learned in beauty school can be applied to running an individual hair or beauty salon.
The main goal for many cosmetology students is to become self-employed. There is a lot involved in renting salon space, financing equipment and supplies, and hiring employees. Following are some tips, tricks, and things to think about before opening a salon.
Create a Business Plan and Message
There are many beauty salons in the most areas, so being unique is a must for successful managers. While not all cosmetology schools give abundant guidance on creating a marketing plan for an independent salon business, there are several short courses and online resources that you can take advantage of.
Consider the following when developing a plan:
- Contact others in the industry. Talk to people who have several years of experience in salon ownership, either via phone, email, or Internet message boards. Use their advice and learn from their mistakes and successes when deciding how to proceed with a new salon.
- Identify clientele. What types of customers will visit the salon, and how will it serve them? Determine who your target consumers are, and market to them directly
- Differentiate from competitors. Describe why this salon will be different from other salons in the area, and use that to market it. Examples include:
- The only hair salon in the city that uses all organic products
- The city's only salon that offers acupuncture and reflexology along with spa treatments
- The only licensed distributor of premium nail products in the state of Idaho
- Create a message. Explain how customers would benefit from the products and services at the salon. Will their skin and hair be healthier because the salon uses organic products? Perhaps they can avoid being bombarded with chemical fumes and toxins? Will they enjoy alternative-style treatments along with standard salon services?
- Formulate mini-plans and promotions that incorporate the message. These include Internet, TV, radio, and newspaper advertising, as well as giveaways, competitions, referral programs, newsletters, and email marketing.
Solidify Salon Plans
The marketing plan may inform other areas of decision making for the business, like searching for a location, deciding how much financing is necessary, and determining staffing needs.
- Find financing for the project. Loan brokers offer a straightforward way to find business financing. They make the paperwork as easy as possible for a business owner but still must comply with the lender's requirements. Sometimes a loan has both secured components (oftentimes with collateral, like the property purchase) and unsecured components (no collateral, like financing for consumables and wages at the start). This makes requirements stricter than fully secured loans. In this case, a lender may require:
- A full business plan
- A personal credit history report
- Any previous business tax returns, if applicable
- Academic transcripts from cosmetology school
- Search for a location. Opening a new salon where a previous one existed can help reduce financing costs. However, setting up in a completely new space helps create a fresh image and ensure that the hairdressing or salon space is suited to individual owner and client needs.
- Get a cosmetology licence. Licensing may or may not be necessary depending on the type of beauty services being offered and the state where the salon is to be located.
- Interview and hire employees. This may not be necessary in the initial stages, when the client base is small and most of the administrative work is fairly simple. Marketing, accounting, janitorial, and other duties can be outsourced. As the business grows, however, employees may become necessary. Some salons start by using an employment agency, contractors, or part-time assistance to determine suitability in the workplace. Be sure to get appropriate legal advice on hiring employees and the tax issues associated with it.
Salon management is not to be taken lightly, and ownership is even more complicated. Life is easier when you make the right arrangements, take the right steps, and educate yourself.
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