What you need to think about when starting your own hairdressing business

There is nothing more exhilarating than deciding that rather than working in someone else’s hair salon, you are going to work in your own.

But, before you get too excited about this prospect, there are some things that you need to consider. 

#1 Purchasing a pre-existing business or starting from scratch

Depending on how much finance you have to put into your new business, you have a few options open to you. You can, for instance, find a pre-existing hairdressing business – complete with a salon, for sale. 

This is a wise investment if you can afford it, as you will also be purchasing an established business with a client base as well as all the fixtures and fittings. However, you should carefully review the books and be advised that some clients will follow their hairdresser to their next salon. Of course, you can also limit this by taking over the working contracts. 

If you cannot afford this, then you will be looking to start your salon from scratch, and here, you will probably be looking at renting a unit. Ensuring that it is in a location where there is a lot of footfall could mean that you will not have to advertise your services as much as you will have a percentage of passing trade coming in off the street.

#2 Ensuring your insurance fully covers you

Whether you are purchasing a readymade hair salon business or starting from scratch, you will need some general business liability insurance to protect your investment and your business assets.

As with many businesses that rely on physical contact and chemicals, there are many things that can go wrong. For instance, damage to customer clothing, allergies to chemicals, or injuries from slipping or tripping due to trailing electrical leads or spillage.

Ensuring that you have enough insurance coverage to cope with lawsuits, medical payments, or even just legal fees and defence costs could mean that your business remains strong and can continue to function. Without it, it could mean the end of your salon and financial ruin for you. 

#3 Kitting out your salon on a budget

Even if you are purchasing (or taking over the lease of) an existing salon, it is likely that you are going to want to put your own stamp on it. However, it is also likely that you are now on a tight budget. This means that buying everything new will be out of the window, but that is OK if you are shrewd.

Some things in a salon do not have to be new; there are plenty of salon businesses selling off items they no longer need due to refitting that have plenty of life left in them. For instance, a reception desk and chair, hairdressing mirrors and workstations, backwash sinks, and accompanying tilt-back chairs can all be brought secondhand.

This will allow you to put your money into your products, electrical tools, and decoration (including your sign, online presence, and promotional material) and hire new qualified staff to make your hair salon work and make a healthy profit.

The information in this article is general in nature. Please see a financial advisor for personalized advice.

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