The demand for beauty services is on the rise all over the world. In fact, globally, revenue in the Beauty and Personal Care market values nearly $526,827 million this year. People worldwide have started to pay more attention to the way they look, driven by various trends in the beauty industry, including the trends promoted by social media influencers.
In Canada, according to Statista, revenue in the Beauty and personal care market values nearly $7,355 million in 2020 and is expected to grow by 3.5% annually. So, this is a lucrative market to get started in.
Yet, like with starting any type of business, opening your beauty salon isn’t easy, nor cheap. You need to think through a lot of details and pay for a lot of things. And, you may also need to use a loan calculator to get the money you need to finance your beauty salon. While owning a salon seems to be a lucrative business with a high possibility of making a profit, starting this business will require you a hefty injection of capital for payroll, salon equipment, and a good location.
When you are already tight on money, you may want to go through your business’s budget twice before deciding what’s worth paying for and for which areas of your business you can save a few bucks. This guide will give you all the details you need to know on what to save and what’s worth to splurge.
Where to splurge:
There are a few key things that no business can find success without, including skilled employees, an accessible location, and an effective marketing strategy. These are the things that you shouldn’t skimp on.
Like it or not, choosing the right location for your beauty salon can make the difference between success and failure. As with any business location, you may want to pick a place with good traffic, high visibility, and, preferably, located where your target audience shops or lives.
Sure, rent for a place on a backstreet may cost you a lot less. Yet, it won’t be that advantageous when you think that clients may choose your competitor over you due to your poor location.
Another critical aspect worth investing in is high-quality equipment and furniture.
Professional salon equipment can cost a lot of money. But in time, your investment will pay off as it will provide your customers with comfort and the results they were hoping for when they entered your door.
You’ll need furniture, such as chairs or sofa for the waiting area, hair and nail workstation, a massage table, and professional equipment such as hair and nail tools (dries, curlers, nail drills).
Your beauty salon is only as good as the people you hire to help you run it. Skilled and friendly employees make happy customers. And, ultimately, your business is winning more when your customers leave your doors with a pleasant experience about you in their mind.
Beauty is a very personal industry, meaning that your customers will expect to have a great experience when coming to your salon. And what better way to provide them with excellent customer experience than by hiring professionals who provide high-quality beauty services?
So, even if a skilled, knowledgeable, and friendly staff might cost you more money, it’s definitely worth the investment to keep your customers satisfied and loyal and attract new ones as well.
Imagine losing all your investment in your beauty salon business due to an accident or business interruption. You wouldn’t like that to happen, right? That’s why you should also invest in a beauty salon insurance to protect your business, equipment, and employees in case of the unexpected.
Most beauty salon insurances provide coverage for business interruption, treatment liability, public liability, and product liability.
The next thing you want to do after you’re done setting up your business is making it stand out from its competitors. When you are new to the market and need to set your business apart, you need to invest some capital in marketing.
Lately, beauty and personal care services are more attractive to younger audiences, which is also the audience you should focus on. The good news is that today’s young adults and teens can be easily found on social media or online in general. We recommend you invest more in online marketing strategies, such as social media, website, or app, to attract new customers and retain loyal ones.
When to save money:
Some things are crucial for a beauty salon business to function well and offer excellent customer experience. Yet, there are also some things that are less important, and it doesn’t really make a difference if you invest a smaller amount of money for them.
Sure, providing a welcoming, cozy environment in your salon is essential to make your customers feel comfortable and come back. Yet, although providing a pleasant environment is important, you don’t have to spend a fortune on decorating your location.
Decoration prices can add up and make you pay more than you actually should. So, instead, to invest less in making your salon look welcoming, you can create your own decorations if you are a handy and creative person. You can also use cheap decorations such as flowers or candles that look nice and have a significant impact on how a place looks and feels like.
Do you really need to pay one more salary for a receptionist, or can you handle your own appointments? If you’re a tech-savvy person and know how to use an appointment scheduling tool to manage your customer appointments on your own, you can save a lot of money monthly.
Why waste more money on printing flyers or on posting your advertisement in the local newspaper if your target audience can be found online? There’s no need to pay extra for offline marketing if you can promote your business for no or less money online.