How to Start a Hairdressing Business

The first and most important decision to make when thinking about opening your own hairdressing business is whether to start completely from scratch, or simply take over an existing salon. There are advantages and disadvantages to both, and the pros and cons need to be carefully considered and weighed up before approaching a bank or a Business Angel investor for the necessary capital.

The next step will be to decide the way in which you will run your business, in terms of the number of staff you will employ, and whether they will be individually ‘running’ their own business, by hiring out a chair to them and letting them build their own client bases or whether it will be on a more ‘first come first served’ basis, where by customers simply use which ever stylist is free at the time. The current market needs to be assessed to see whether there is a need for a particular type of salon, i.e. male/female or unisex. If there are limited services in the area for men, then it may be worth thinking about opening a gentlemen’s salon; this would then have implications on the staff you hire, and any specialist stylists.

Many modern salons are not just about hair, so a new business might have to think about whether to incorporate a beauty salon on the premises, offering extra services such as manicures, facials and sun beds.

As with all new businesses, the market research must be thorough, to ensure you know as much about the current market situation/trends as possible. A key aspect of any hairdressing business is the location of the salon. Sales could be affected by the number of potential customers who walk past the store on a daily basis, so if you are largely relying on non-appointment making customers then a busy location is likely to be the most successful. After location, the pricing issues should be resolved. Are you offering a premium service or a low-budget cut? The price needs to match the type of service you offer so that it covers all the costs sufficiently.

Any business which is selling a service, rather than a physical good, relies heavily on their reputation as business. Customer satisfaction has a huge influence on customer loyalty, and building a loyal customer base who will keep coming back to use your service is what it is all about. Therefore, to ensure you can get the financial backing of any potential investors you need to be able to prove that you will have the ability to attract and retain your client base. To do this, you need to have clear unique selling points that differentiate you from your competition - this could mean a themed salon, carving a niche market, or introducing competitive pricing strategies.

Business Angels will always need to see an extensive business plan, which has been thought out ad thoroughly researched. They will be very scrutinising, and your business plan needs to be able to hold up to intense questioning. Remember, Business Angels are funding your project with their own money, and are not likely to part with it and invest into your business if you have not invested your own time and effort into getting the plan right.

Angel Startups, home to all your Business Startup Needs.