According to data by the Bureau of Labor Statistics, the salon business reports an average of $46 billion annual sales, making it one of the most profitable industries in the country. To benefit from such success will, however, require you to play your cards right, with specific attention to areas such as your finances and your legal operations. To help with this, we take you through the most essential steps to keep in mind when opening your salon venture.
Get the Right Financing
Getting funds during the start up phase of your salon business will likely be a difficult process, a factor that will require you to utilize the right financing solution. This means relying on family and friends, as well as alternative lenders who often provide enough capital for small businesses. In addition to this, equipment financing will also come in handy, allowing you to cater to specific salon equipment needs.
Get Your Legal Affairs in Order
Legal requirements are often the last point of concern when starting a business salon, yet will form a crucial role in how well your business scales up. To ensure you stay on the right side of the law, make it a point to apply for permits such as business operation licenses, cosmetology licenses and building permits.
Budget Your Costs
Budgeting is another essential part of salon business start up which will come in handy in helping you keep track of your expenses. Where you lack expertise in bookkeeping and budgeting, consider hiring an accountant to help you with your finances. Their services will make it possible for you to set targets of aspects such as product usage and client pricing.
No matter the level of expertise that you carry in your line of business, having a helping hand will be worth your while. By inviting able partners, you can focus on areas that you are good at, while your partners can help with areas that you fall short of such as mentoring you on the dos and don’ts of a salon venture. Partnerships may be individuals or trade organizations like beauty associations that provide tips in areas such as marketing, employee training, and everyday salon business insights.
If you are interested in owning a salon business, consider reaching out to Park Cedar Commercial Lending today for help with your financing needs.