How to Start a Hair Salon Business 2023
Women spend $225,000 on hair care during their entire life? — Yes, you heard that right. And the entrepreneurs who killin’ it, have million dollar salons and they’re making history. And the best part is, this was all planned. You see, up until a few years ago, the hair salon industry was actually in a decline, but then something happened. TikTok happened...People started getting recommendations on cool hairstyles, lifestyle tips and hair products for growth.
Did you notice, I even jumped on this trend and I got beautiful locs installed this month. What makes this statistic even more interesting is if women are willing to spend a quarter of a million dollars on their hair, how does a salon capitalize on this opportunity? Not everyone will be able to set up a million dollar salon, and let’s be frank, how DO you identify who’s willing to pay top dollar for your services. “This” sounds like a challenge. So, what are we missing here? Let’s dive in a bit deeper. I think I’ve discovered the blueprint on how to start a successful hair salon business.
Before I reveal the success formula, do you see this little money meter? I’m donating .05 cents to charity for every subscriber this video gets, so if you’d like to help some people in need, hit that red subscribe button. In every new video, the meter will go up and I’ll share exactly how much money we’ve all collected. Now, Let’s get into it!
Salon owners are using a 10 step system to become successful. When most entrepreneurs start, they’re usually pretty unclear about what their strategy is going to be. Some of them have a business plan and some of them just go by previous knowledge. The really interesting thing is the people who have a business plan are 15x more likely to succeed. If you have no idea how a hair salon operates or you are a first time business owner, I recommend getting a business plan from Fiverr. They will create a custom business plan that outlines exactly how YOUR business is supposed to work and what you should expect.
Interestingly enough, a lot of salon owners are quickly going broke because of two things, they’re finding it extremely difficult to find affordable supplies or the supplies they ARE buying are of less quality and customers are finding what they want .…elsewhere. So, here’s the secret, in order to get supplies at a discount, you’ll need what we call a retail merchant certificate or sales tax ID. This is issued directly by YOUR state and it allows you to buy products tax free. If you want to find salon supplies, just google the words "wholesale hair salon supplies". And what you’ll see is a list of companies you’re qualified to buy from and from here you can find a company to buy in bulk from.
Remember that old saying, location, location location? Growing a million dollar salon has a LOT to do with finding and securing the right location. You don’t want to have a property that is hidden somewhere in the back and then no one can find you. So, what’s a better option? There’s two main website’s that have great “front and center” type of properties for lease, but you’ll have to use their filters to find the HIDDEN gems. Checkout loopnet and property shark, these are the two best search engines for leasing a salon space.
A lot of people think starting a salon is like hitting the jackpot. But if the business isn’t properly registered or licensed, you’re making a HUGEEE mistake, and it can all backfire on you. You won't be able to buy wholesale equipment or salon supplies or even start working with customers until you complete this step. You'll need to register & apply for a federal EIN Number, and form an LLC or Corporation. AND you’ll also need to obtain the proper licensing from your state’s department of health or cosmetology board before you can open for business. If you want to get started right away, I recommend using MyCorporation.com, as they have a wide variety of packages to choose from and they’ll do all the research for your licenses in less than a week.
On average, most entrepreneurs starting out, deal in cash transactions and forget to put money in the bank. But since you’re a SMART entrepreneur, having a business bank account will actually become your competitive advantage. Turn in a copy of your legal incorporation paperwork and EIN number and they’ll give you an account with lots of benefits including access to credit lines, budgeting features, and easy tax prep for the future. You can use a local bank that you’re already using, or choose a new one. And if you haven't heard of Square, they also have a business banking department who can get you set up right away with a checking account, and it's free.
Have you ever noticed how many salons nowadays have these new cash register systems? These allow your business to get paid in up to 10 different ways. Getting one of these isn’t difficult. You just set up a merchant account with a company like Square, pay for the POS system and you’ll have it within a week.
A million dollar salon needs MILLION dollar branding, right? Interestingly enough, when branding is done right, all things fall into place and THINGS just start happening for you. People remember you, people choose your salon over the others, people will wait longer for appointments, it’s literally JUST crazy. If you want to appeal to the high paying customers, go for the high-end luxury look. I only trust my designs to be created by 99designs. They’ll make your logos, your flyers, banners, social media and email marketing designs. Just create a design contest or choose a designer to work with one-on-one and you won’t be disappointed.
You know what the real secret to having a million dollar salon is? How your website is set up and what people see JUST before they arrive. Do you have samples of your work, testimonials, a service menu, pricing, do the people on your website look happy and excited, does your venue look clean, bright and sharp? If not, there’s a solution. So, how do you get a million dollar website for less? Find and register your website name with Bluehost, pay for a web hosting plan, get your login credentials, save this information and find a website designer on Fiverr. Most of their people will design a luxury website at an affordable price, fully custom, for you in under 3 days.
Growing your salon to a million or even billion dollar business is a challenge. But when you hire the right people, they can help you meet your goals a lot quicker. Choose people who have experience, people who can speak well and people who have great customer service skills. Remember all of your staff needs to be licensed by the state and YOU need to provide them with an employee handbook and training for how YOUR salon works. This will help avoid issues where your staff are missing appointments, showing up late and making their clients wait.
A lot of people say the salon industry is too competitive, and hey there is some truth behind it. But here’s the good thing. When you show you care about others, it rewards you back. And now, this might sound super simple, but this is TRULY how million dollar salons are beating the competition. Your first customers are always the hardest to capture, and you’ll need to use some creative strategies to keep them coming back. Go ahead and write these down! Here’s a list of promotions that ALWAYS work and add to the success formula.
Now, I know what you're probably wondering... what's the price tag on this baby? Startup costs for this kind of business usually starts anywhere from around $20,000 to $100,000 on average. Remember, dreams don’t work unless you do. You’ve got the victory and you can do this!
If you like this business idea, I’ve included a list of places where you can get the supplies from, a sample rate sheet, business credit guide, places to get financing, hiring templates, AND the million dollar money plan in my hair salon startup course. The course has tons of 5 star reviews and the link CAN be found here: Hair Salon Startup Course for Beginners.
I'm also giving away my new marketing strategy book series for FREE. If you want it, just go to my website, enter your email address and I'll send it to you right away.
If you liked this video or you know someone who needs to see this today, tag your friend, hit like and please give it a share...and until next time guys, take care!
About Adella Pasos
Adella Pasos has over 20,000 subscribers on YouTube. This Entrepreneur and Marketing Expert has shared her passion for growing brands from the ground up. She’s worked with Startups, Small Businesses, Fortune 500 Corporations and Entertainment Talent to help them recognize the value of marketing, and give her clients the ability to access their niche market via online, social media, mobile, merchandising, and events.
She hosts the What's Your Game Plan TV show features: Free Expert Advice, and Growth strategies for Business Owners Across the Globe. Access thousands of FREE Tips, Trends & Tools to Move Your Business Forward.