Having your hair salon can be a profitable venture, providing its owner with a high income. However, it is worth first analyzing various possibilities and scenarios for that to be the case.
Lease positions or hire hairdressers?
You should first consider your role in your hair salon business plan. Do you want to be his manager and deal only with managing your business, or do you also want to work in it as a hairdresser? Since most salons belong to hairdressers, the latter option is the most popular, and we will focus on it. There are several business models for running hair salons. In this article, we’ll cover the two most popular.
- Lease of a hairdressing station
- This solution seems to be quite convenient. You, as a hairdresser, occupy one position, and you lease the remaining ones to other hairdressers. This is the optimal option if you do not have many loyal customers lining up for you. This form of running a hairdressing salon is optimal if you manage to serve your clients in one position. The remaining ones are leased to other hairdressers, allowing you to obtain predictable monthly revenues.
- However, it also has its drawbacks. When renting positions, it will be much more difficult to impose your expectations regarding, for example, the price level of services provided by other hairdressers or the selection of cosmetics on which they will work. You may not care about it, but it is worth at least taking care not to compete with each other in the price of services. This usually leads to conflicts within the team and becomes an excuse for unnecessary tensions.
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Employment of a hairdresser in the salon
- If you’re considering this form of running a salon, you’ve probably come a long way as a hairdresser. For this model to work, you must feel that you already have an extensive list of customers who would like to sign up for you, but you have to offer them very long dates. You cannot arrange them in advance, working only in one position, which is constantly crowded with others.
- Then, you hire a hairdresser who will be able to serve your “excess” clients. However, do not forget that they would often prefer to come only to you and may feel offended that you are handing them over to “foreign” hands. Then try to show your interest and care at the beginning, during, and end of the service performed by the hairdresser you employ.
- However, what difficulties may it be when hiring a hairdresser in your salon? You must bear in mind that the hairdresser you hire, who, after all, will perform services on your behalf, at the beginning will not perform his work at the level you would expect. However, this should not be a cause for discouragement. Be patient, clarify what you expect, spare him your knowledge, and send him to hairdressing training as often as possible. It will certainly pay off.
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Think about who your client will be?
Defining the customer profile is one of the most challenging steps in preparing a hair salon business plan. For example, many people whom we helped to open their hairdressing salons stated that each client would be worth their weight in gold for them. This is understandable, but it will be challenging to offer clients the services they expect while maintaining the venture’s profitability without imposing a specific framework on oneself.
You will probably agree that a different client will visit a hairdressing salon located in a large city on the market square or the main street, and another in a small town. First, analyze the area in which your salon is located, consider the brand of hairdressing cosmetics you will work on and what competition you have around you. Then, choose your offer correctly to the surroundings.
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Does the location of a hairdressing salon matter?
It has a considerable amount. Hairdressing salon customers can be divided into new and returning customers, and it is the location of your salon will have a decisive impact on attracting new ones. However, you don’t have to tear your hair out if you plan to open a salon somewhere outside the center, on the sidelines. Your key to success will then be a recommendation, recommending you as a good hairdresser by your satisfied customers. Consolation may also be that most women declare that they are attached to their hairdresser, and then the location is less critical.
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Are you working with hairdressing cosmetics of one brand or maybe many?
When thinking about setting up a salon, you cannot help but ask yourself whether you want to be associated with one specific hairdressing brand. But, on the other hand, maybe you prefer to have a will and choose the products on which you work to your customers’ expectations. Here, every choice seems to be correct.
Suppose you decide to run a salon under Loreal, Schwarzkopf, Wella, Goldwell, or another premium brand. In that case, you can count on a lot of support in the form of training, bonuses such as salon equipment, e.g., shelves for products, hairdressing assistants and sometimes even hairdressing furniture . . We have delivered a barber’s chair many times to a newly opened showroom, for which one of the concerns above paid. So are there any downsides to being associated with a particular brand?
Of course, when looking at a matter critically, there will always be a reason to complain. However, the fact is that “there are no free dinners,” and the support you get will cost you higher prices for the products you work on. However, this does not mean that it does not pay off. On the contrary, access to numerous training seems to be a sufficient reason not to delete the idea of being associated with a specific brand.
Now let’s discuss a scenario in which you decide to be free to choose the hairdressing products used in your salon. It is inferior to the model where everything is under the name of a well-known company. This solution can even bring you many additional benefits not talked about loudly. First of all, no one, even a leading manufacturer of hairdressing cosmetics, offers everything you may be interested in. It allows you to select the products with which you work.
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What to consider when pricing services in a hairdressing salon?
The temptation for many novice hair salon owners is to compete with price. They believe that they will attract customers like a magnet in this way. It is, unfortunately, a dead end. Instead, defining the customer profile should be the main guideline for choosing the product segment you want to use. Whether you should choose a premium brand like Loreal, Schwarzkopf, or Wella, or a brand that offers good quality at an affordable price, such as Indola, Matrix, or Londa, will depend on what type of customer you choose.
So try to ensure that your advantage is not the price but what you offer. I do not mean only the quality of your skills but additional services and the atmosphere you will create in your salon. For example, provide care treatments, hair strengthening, keratin straightening, or regenerate hair damaged by numerous therapies. Of course, we know that hairdressers mainly focus on cutting, modeling, and dyeing. Still, you will always gain in your client’s eyes by proposing additional items, even if they decide not to use the proposed options.
Marketing of a hairdressing salon
They say that satisfied customers are recommending the key to the success of any hairdresser. It is true. However, while it is an essential source of acquiring new customers, it is not the only one. Also, look for them on social media. Create a Facebook or Instagram account and showcase your accomplishments. Take out your smartphone and capture images of your hairstyles to share with others. If you experience hesitation since you are not a professional photographer, have no fear. The public will appreciate that you took as many photographs as possible.
Offer people services with a high level of culture. Greet them in your living room, offer a coffee, and read exciting trade press when they come. The sum of all these, perhaps seemingly small things, will make you establish a relationship with your clients to make them happy to return to you.
Where to get additional profits, i.e., resale of products in a hairdressing salon
I don’t know if you know, but the popular opinion is that hairdressers do not offer products for resale to their clients. Meanwhile, most customers are very interested in purchasing them. When you wash your hair on the washcloth, the client wonders what shampoo you’re using. When you use mousse, paste, or hairspray, the same questions pop up in the customer’s mind. Many hairdressers do not see this interest. This is a mistake. Tell the customer what products you use during the visit and offer them to buy them.
Statistics say that a hairdresser can increase his turnover only by reselling products by as much as 15-20%. Hand in hand is also customer satisfaction with a properly selected cosmetic.
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