In 2024, businesses are taking a turn for the better. However, aspiring businesspersons are still skeptical about starting new ventures. Their skepticism is justified, considering the fact that they fail to operate businesses owing to many reasons. These reasons majorly include no market need and no money. Irrespective of the apparent failure, it is not impossible to launch a business.
When it comes to launching a business, you must understand its dynamics. The first step to understanding the dynamics is data collection. According to the data, the beauty industry makes $100 billion worldwide. It is a lucrative industry and is well-suited for anyone. This industry involves salon studios that you can open with minimum investment.
Unprecedented Obstacles in the Salon Industry
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As thriving as this industry is, there have been instances where the business fell off the wagon. Let’s get to the bottom of those instances stage by stage.
The COVID-19 Pandemic: Surprising Turn of Events
The epidemic outbreak of coronavirus had a substantial impact on the salon industry. The industry suffered a decline of 15% in revenue. To point out the specifics, lockdowns, social distancing, and reduced customer demand contributed to this decline.
Furthermore, beauticians put up with layoffs, minimizing their income and motivation. The U.S. government obligated all outlets to manage at limited capacity and volume. A report from the year 2020 had already claimed that there would be a drop in “salon visits.” Thus, the mounting of unemployment became obvious.
The Good Fortune
Even though COVID-19 diminished the salon industry’s revenue, there were positive connotations. The negative aspect of the pandemic has engendered explicit plus points.
Online sales saw a considerable hike. These sales mainly included do-it-yourself or DIY beauty products, and among them was hair color. The sales of hair color increased by 23% in the first quarter of 2020.
Given the circumstances, nobody can defy the vitality of a salon business if carried out appropriately.
Know Your Niche
The “beauty” of beauty salons is their versatility. It is up to you to settle upon your ideal customers. If you think your niche is nail treatment, search for customers who want to have their nails treated. If your niche is makeup, scout out customers who want to wear makeup.
Research the market to identify your customers’ needs and preferences. It is time-consuming but worth it. This measure is prior to your actual business operation. A thorough research will cost you less than nothing. You can remain in the comfort of your home and do your thing easily.
Licensing and Permits
It is paramount to legalize your salon business by acquiring licenses and permits. After this step, you can adjust the $500 budget with fewer things to worry about.
Follow these legal guidelines:
- Apply for a business license. It costs $50 to $400 per year.
- To ensure health and safety standards, get a salon license. It costs $100 to $200 per year.
- Get a cosmetology license because it will certify you as a beauty specialist. It costs $100 for the initial application and $50 for two-year renewals.
- Get a health and safety permit to conform to the country’s sanitary and hygiene regulations. It costs $50 to $300 per year. The cost relies on the inspection rate of recurrence and the location.
- Get a tax identification number. Apply from the Internal Revenue Service (IRS) website because it is free.
- Do not forget the liability insurance. It is crucial to have this insurance as it will protect your salon from lawsuits. The cost begins at $500.
You are now privy to all the necessary licenses and permits and their approximate costs. Altogether, licenses and permits will cost you over $800.
Kick-Start Your Salon Venture
You have the liberty to take a few measures. They can help you launch and revitalize your salon venue.
Choose a Serviceable Location: Rent a Booth
Salon studios should be spacious for your customers. These salons are all about beautification and relaxation. Hence, find an accessible place. Be mindful that the investment amount is $500. At this point, you can occupy a rented property and start slow.
Work From Home (Cost: $0)
The concept of work or remote work is now commonly observed. During the COVID-19 pandemic, salons had a lucky break to offer consultations, home services, contactless payments, and digital marketing. Subsequently, the salon industry embraced the concept of working from home. It saved time and money as workers did not have to commute.
Launching a salon business from home will not cost you anything. You can save money on rent, utilities, and transportation. You can claim some business costs as tax deductions, such as council tax, heating, and phone calls. Moreover, you can have more flexible hours and work-life balance, improving your productivity and satisfaction.
Rent a Booth (Cost: $50 – $200/Month)
A place should be convenient, accessible, and affordable for your salon. You may want to consider renting a booth, a chair, or a room in a present salon or sharing a space with another business, such as a coffee shop, a boutique, or a fitness center.
Obtain the Necessary Equipment: The Fundamentals
It is where the situation can get dicey, but with some tricks, you can obtain the necessary equipment.
Make a List
Enlist the supplies you need for your salon. Those are scissors, combs, brushes, dryers, irons, polish, towels, etc. Avoid buying luxury items. Rather than buying luxury items, buy ones that beauticians frequently use.
Set a Budget ($500)
Allocate your money wisely and plan how much you can spend on each item. Compare prices and quality of different brands and models, and look for discounts, deals, or coupons. You can also use the Salon Equipment Calculator to estimate the cost of your salon equipment.
Consider Second-Hand Equipment
Look for refurbished or discounted items online or at local auctions, flea markets, or garage sales. You can find some great bargains and save a lot of money. In other words, buy used or slightly damaged items that are still functional and in good condition.
Image Source: amazon
Image Source: ebay
You can visit Amazon and eBay to discover sellers willing to sell their salon equipment at low prices. Do not burden yourself with custom cabinetry, shampoo bowl, and hydraulic salon chair. Salon Booth Rental provides these amenities, saving you the hassle of purchasing furniture.
Through and through, the costs of these salon tools are over $250.
Develop Your Website: Online Branding
Your salon website should showcase your services, portfolio, and testimonials. Your website will help attract and book more clients online. You can create a free salon website using a business profile manager like Google Business Profile, enabling you to create and manage a profile on Google Search and Maps. Like a tax identification number, there is no cost to Google Business Profile.
The Next Step
Once your salon website development is complete, brand it. You can do that through search engine optimization or SEO, email marketing, content marketing, and social media marketing.
Search Engine Optimization (SEO)
SEO optimizes your website and the content on your website. On the strength of SEO, your website ranks higher on search engines like Google. If you use SEO, you will bring traffic to your website and amplify your online prominence.
Once you start making your audience, reach out to them using email marketing. It involves the process of sending emails to your subscribers. You can update them with your salon’s news, services, and packages.
Social Media Marketing
Use social media applications to connect with your customers more. The integration of social media helps form long-term relationships. You can boost your sales and increase your brand awareness.
On a Final Note
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This new year has opened doors for fruitful opportunities as far as businesses are concerned. The budget of $500 to elevate your salon business is adequate. The combined amount of rent and tools is roughly $450. Under $500, you have a golden opportunity to succeed in launching your salon business.
Although it is adequate, you should be resourceful to propel in the beauty industry. Be ready to embark on an exciting journey in the salon business with minimum savings. It all comes down to your awareness and energy. Remember, the given figures are not absolute. They change from location to location.