How Much Does it Cost to Open a Salon

Your dream of opening a successful salon is about to come true! You've studied hard, trained, saved, and now, the time has come. There is a price tag though, uncover the upfront and hidden costs involved in starting your salon.

Opening the doors to a salon requires a solid business structure and smart investments. Know what to expect, and you can avoid both financial and legal surprises.

In this SalonCA article, you will discover the real costs of opening a salon, what should be included in your budget, and the legal requirements involved in its successful beginning.

Hair Salon Opening Expenses List

Part of opening a successful hair salon or barbershop is the understanding of the expenses involved. The following are standard expenses that new salons will need to consider and plan for in their budget:

Cosmetology Licensing - To open a salon, you must be a licensed cosmetologist. The cost of getting a cosmetology license from a reputable school can range between $10,000 and $20,000.

Rent - Location and square footage will determine the rent for a salon. Expect to see a range from $1,800 to $5,000 per month or more.

Renovations - It is highly unlikely to walk into the perfect setup for your salon. Improvements, installations, or renovations may cost from $5,000 to $15,000.

Stations, Chairs, and Mirrors - For a 5 station setup, new salon furniture and wall units will run anywhere from $5,500 to $7,500 or more depending on brand and quality.

Equipment - A single shampoo and dryer station can range from $1,000 to $2,000. Go here for barber equipment salonca.com/barber.html and here for salon equipment salonca.com/salon.html

Product Inventory - A three month supply of products for use and retail can range from $5,000 to $10,000.

Website and Social Media - Invest in a professional website which includes a listing of your services, profiles of your stylists, your business information, and a system for scheduling appointments. Your website should also be linked to the social media platforms you use to promote specials, events, and advertising new styles or skill sets. Custom website design ranges from $3,000 to $10,000.

Marketing - Flyers, banners, and promotional products for a grand opening can run from $500 to $1,500 or more depending on quantity, quality, and size.

Cash-On-Hand - When your salon opens its doors, your POS will need a cash reserve. Typically, $500 to $1,000 cash is kept on-hand to make change or used for impromptu or emergency purchases.

From $32,300 to $72,000 is what you may spend by the time you are licensed, have a great location, furnish, equip, stock your salon, and market its opening.

Legal Requirements for a Beauty Salon

As with all businesses, federal, state, and sometimes municipal registration or licensing is required to operate legally. The following are examples of the permits and legal requirements you should fulfill before opening your salon.

• Federal EIN (Employer Identification Number)
• Business Operation License
• Certificate of Occupancy
• State Cosmetology License
• License to Sell Retail
• Building Permit
• Fire Department Permit
• *Insurance (theft, damage, and liability)

As each state and municipality may have different requirements, you can visit their websites for specific instructions, or visit https://library.municode.com and search “salon” for your applicable state and municipal codes.

Each license or permit will typically require a fee, and that fee will vary depending on the state and municipality you choose to open your salon in.

*The cost for insurance will depend on the types of coverage you wish to purchase, and the amount of the deductible you choose.

You must form an Incorporation, Partnership, Sole Proprietorship, or a Limited Liability Company, etc. Depending on your business structure, there will be tax and legal requirements for your business. Consult and decide with your attorney and/or accountant which structure will be best suited for your salon.

Open the Doors to a Successful Salon

After so much preparation and hard work, the time will arrive to open your salon. Know what to expect and avoid financial surprises by preparing for the process.

Having read this article, you are now able to understand better the cost of opening a salon, know what should be included in your opening budget, and which legal requirements must be met.

Knowing what to expect during the opening phases of a salon eliminates the majority of financial and legal surprises. This benefit allows you to focus on bringing in talented licensed stylists, attracting new clients, and making your dream a reality.

Sources:

https://www.sba.gov/business-guide/launch-your-business/apply-licenses-and-permits
https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
http://www.business.lacity.org/starter-kits/beauty-salon

Promote Your Salon or Barber Shop Using Social Media

If your salon or barber shop’s marketing campaign is not including the use of social media, you are missing out on revenue and increasing both your new and returning clients.

Nearly everyone has a cellphone, and most of those phones are connected to at least one social media platform. Ask yourself, why not use this to your advantage?

In this article, the team at Salon Ca outlines innovative, easy, and free ways to build your client base through the use of social media and its advertising platforms.

Hair Styling Videos & Tutorials to Gain Instagram, Facebook, and Twitter Followers

Getting new followers on social media platforms is a process like any other marketing activity. If you are regularly contributing by posting relevant and interesting content, people will naturally gravitate to your page or profile.

Showcase the talent of your team through videos and tutorials. No fancy filming equipment or scripted lines are needed, simply shoot an Instagram photo or video of one of your barbers or stylists doing what they do best.

The video can be a single part of a series or a one time introduction to a new product or style at your salon or barbershop; in addition, the video can be narrated or have no sound at all.

 

A post shared by Sergio Rodriguez (@srfashionstylist) on Jun 29, 2018 at 4:33am PDT

From Instagram, once you’ve sized and chosen a filter for the video, you will have the option to add a descriptive text, add hashtags (more on this later), tag people, and share the video to your Facebook, Twitter, and Tumblr accounts.

Hair Salon, Stylists & Barbershop Social Media Marketing & Promotion Ideas

The only limitation to the variation of marketing and promotions is your imagination. Below are some ideas that can boost your salon or barber shop’s image and put more paying customers in your stylist and salonca.com/barber-chairs.html (#barbers see that shameless plug and what we did there).

Client Interviews Become Your Reviews - Along with the great written reviews your clients are giving you on Google and Yelp, ask them for a quick one-on-one interview.

In the interview, they can rave about the service they just got, their favorite stylist, or just what they enjoy. The point is to have real people saying and expressing how they feel to other real people.

When considering a client for an interview, make sure to cover the following:

• Send the client an email with your questions (see the examples below). Or hand them a printed version.
• Only use their name, profession, website, etc. with their expressed and documented consent. See this release form example.
• Allow the client to speak freely about their experience and in response to your questions. This feedback is important for your business.

A great interview formula is to ask some/all of these questions, and combine them as a testimonial:

• What service did you come in for today?
• How was your experience with us?
• Were your expectations met?
• What about our salon? What should people know about us?
• What would you like to say to your stylist?
• Is there anything else you’d like to add?

The above questions are specifically engineered to address the concerns and thoughts of potential customers, thus reducing doubt and instilling trust.

Salon and Barbershop Facebook Live - As your number of followers increases, start having live video sessions.

Monthly, weekly, or daily live videos can help you communicate directly with your followers. Here are a few ideas for your live video:

• Q & A session
• launching a new or exclusive product
• a live tutorial

Remember, during live videos, your followers will be able to communicate with you. This is a fantastic way to keep your “followers”, current, and potential clients engaged and entertained through social conversations and interesting topics.

Using Before & After - In the beauty industry, one of the most powerful tools you have is the end product of your work, and a customers response to it. Posting and sharing before and after images of your clients has the potential to greatly increase your followers and client base.

Using a time-lapse video to capture a person’s transformation allows potential customers to see the process from beginning to end.

The impact of before and after shots is that you are giving someone the opportunity to imagine what they could look like by visiting your shop.

Using Instagram, Facebook, and Twitter Hashtag Trends to Increase Your Followers and Branding

Hashtags are a functional search tool that helps users efficiently discover likeminded people and relevant content. Their purpose is to categorize what has been published and make it readily available to people searching those terms by just clicking the search phrase.

Three ways to apply hashtags is to consider the three categories you can use.

Broad - Hashtags that appeal to a broad range of people generate a high volume of searches. Rising to the top of these searches is harder due to more competition, but provides the potential to attract tons of eyeballs and attention. These hashtags can attract traffic from other states and even other countries.

Some examples are: #Salon #Beauty #Hair #Barber #HairStyle

Narrow - Hashtags that attract specific people and visibility to your business should be more narrow, even geographically specific. Also, some customers know exactly what they want and search specific hair styles or cuts. Simply using the right hashtag puts you directly in front of them when they are looking for a stylist.

Some examples are: #SacramentoSalon #GarysBarberShop #Fade #Pompadour #Bob #Balayage

Trending - Keep an eye on trending topics and their hashtags. Even if the trending hashtag is not relevant to hair necessarily, you can still use it. Trending hashtags have the potential to bring extraordinary traffic to your page or profile given they are being searched and seen worldwide.

Social media is about connecting people, and doesn't always have to be about your profession or business. When you have a unique perspective or valuable contribution, use the hashtag and share your content, perspective, or stories.

Social Media - How to Build Salon Clientele Fast

Once you’ve gotten used to posting and using social media, promote your business and use the social platforms for their advertising and direct-response capabilities. Below are several ways to use social media to further engage your clientele:

• Offer discounts or add-ons when a customer follows your page.
• Post a promo code with a deadline offering a discount or a free gift.
• Send direct or private messages to your clients on special occasions (birthdays, anniversaries, etc.).
• Tag your clients in videos and pictures of them, or ones you believe they will like.
• Reference (and tag) your clients in videos. Make them a part of the activity.
• Add the “follow us on...” verbiage to your website, online and printed media.

However you go about using social media platforms, it should be well organized and consistent. Always work to have fun with the content, engage your clients, and contribute to the community.

With consistency and interesting content, new clients and followers will find, connect with you, and subsequently see your work. Likewise, your existing clients will enjoy, engage, and refer their friends and family to you.

Social media is one of the most powerful platforms for entrepreneurs, barbers, and hairdressers. As with everything, the market evolves, so join today and take advantage of the great opportunity while it lasts.

This article appeared first on https://salonca.com/blog/promote-your-salon-barber-shop-social-media/