Owning a beauty salon can be very demanding but also rewarding. As a beauty salon owner, opening and maintaining a full salon can be costly and challenging. On the opposite end, you have the opportunity to create an experience personal to each customer, giving them a sense of individuality and familiarity that no one else can.
As of May 2014, the median annual salary for salon owners, including salary and potential bonuses, ranges between $57k and $62k; and according to the U.S. Bureau of Labor Statistics, the average earnings for managers of personal service workers – a category which includes salon managers – was $35,300 in May 2013.
Of course, the amount a beauty salon owner makes depends on the services provided, the number of employees the salon has and economic conditions.
Owning a beauty salon might not be as easy as you think it is. Without prior management experience, your trials and tribulations may be magnified. Find an experienced beauty salon owner to spend time with and pick their brain for advice. Attend management workshops, enroll in ownership seminars and subscribe and participate in business, salon owner forums.
Before opening shop, obtaining salon financing should be a top priority. Here are a few things to keep in mind when getting your numbers together:
If your salon is on the corner of Rich Blvd. and Wealthy Ave., you’re sure to make tons of money, but the amount you pay per square foot might be outrageous. The majority of your clients will come from your warm market – friends, family and word-of-mouth – or satisfied customers. The random passersby will stop in every now and then, but shouldn’t be your main target when choosing your location.
Supplies and Equipment
Whether you are planning to run a hair salon, nail salon, spa or all of the above, you need at least a handful of salon chairs. With each chair costing up to $1,000.00, that’s already a big ticket. On top of these, you need supplies such as mixing bowls, scissors, styling products, shampoo and conditioner, pedicure tubs and any other equipment your beauty stylists may need.
Even John Frieda has stylists and employees at his salons. They are what help the business run. You might want to find a salon manager or front desk receptionist, if necessary. Maybe you want a nail technician or hairstylists that can do both. Unless they are simply renting a space and chair in your salon, you will need to have the means to provide compensation to them.
After the management experience and salon logistics have been taken care of, it’s time to look into actually financing your business.
Financing Your Beauty Salon
Small Business Loans
Taking out business loans can be a scary thought, but they have potential to be your biggest personal advantage as a salon owner. Small business loans are great for short-term expenses, helping fund the costs for property leasing or equipment and inventory.
Business Cash Advance
In some situations, a merchant cash advance may be the better option for you. When you need to access quick capital for leasing fees, certifications, permits or other sudden costs, a business cash advance is an easy route to take.
As soon as you are able to, pay back the loan in full. Things always come up, especially when opening and running your own business, but try to set a deadline for yourself and do everything you can to pay off your loan by that date. Work the loan payments into the budget before you borrow any money to avoid high interest and fees.
Another option to look into would be to rent out your spaces to stylists. You would act as a landlord and receive a set amount or percentage of the stylist’s sales on a determined basis. These “rent” payments could go towards any of the aforementioned expenses.
It might take the first paycheck or two to pay back your business financing, but getting your beauty salon up and running will be worth the costs in the end.
Image courtesy of marin / FreeDigitalPhotos.net
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