Jeff - Nov 20, 2020

How to open a hair Salon - The final guide

Here is a guide to opening a successful hairdressing salon or beauty franchise?

 

"It doesn't matter how slow you go as long as you don't stop" 

- Confucius

 

INDEX

What do I need to Open a New Beauty Salon?

Why open a Beauty Salon?

Steps to open a Hair Salon

Services to highlight for your beauty salon

1. Complete hair care

2. Manicure / pedicure

3. Esthetics + beauty and hairdressing

4. Offer unisex services

5. Natural beauty products

 

What do I need to Open a hair Salon?

The beauty sector has always been a market full of possibilities. It’s  a promising market because it presents countless business alternatives and investment opportunities for entrepreneurs. For many, opening a beauty salon  is a chance to achieve their dream of starting their own business.

The beauty sector is indeterminate, meaning that not only is there economic flexibility, but the sector itself is constantly changing and adapting to new trends. The sector is flexible and ready to adapt to customers' new tastes.

With this in mind, here is everything you should take into account when setting up your own beauty salon.

 

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Why open a hair Salon?

According to a study carried out by Euromonitor International on data from the sector:

"Growth in the beauty and personal care industry in Latin America reached a decade of growth last year (2018) and will continue unabated in 2019."

We consider this to be a decisive factor.

For many women, going to the hairdresser is simply a necessity. In addition, more and more men are beginning to take more care of their physical appearance. As we mentioned before, the beauty sector is very broad. Therefore it must not only provide services in line with current trends, but services for all genders, lifestyles, cultures, seasons, ages. 

Also read:

"The current path of the beauty market is marked by the mixture of cultures, styles, constant change, daring shapes and colors and within everyone's reach, taking over the streets."

 

 

The beauty sector has great potential in Latin America. People want to show off a great hairstyle, cut and color. This interest in their personal image helps to energize the sector regardless of the economic context. It’s a market that evolves with the times, but also requires the support of those who value their experience, work and know how to enjoy life.

 

Hair and Beauty salons in the 21st Century


Taking a closer look at the evolution of beauty salons, several patterns become clear. From the beginning, they have been more frequented by women, but not exclusively by this gender. Many women strive to be satisfied with their appearance, and so have made this sector very profitable. 

However, men have also begun to concern themselves more with their physique, use cosmetic products, follow fashion trends and dedicate time to personal care.

Nowadays, hairdressers also respond to the needs of an increasingly demanding public, who want to consume environmentally friendly and sustainable services. This opens a new market niche, which will potentially attract the attention of a segmented group of people who would be willing to pay more for sustainable and high quality services and/or products.

 

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➡️ Here you can see the opening of the first Beauty Jeff franchise in Argentina.

 

Steps to opening a hair salon

Before making the decision to set up your own beauty salon, you should sit down and think about the different factors you need to take into account, regardless of the country, city or town you want to open in. There are generic topics that apply to any place and the results vary according to culture, laws, policies and demographics. 

Here’s a list of steps that we consider useful to consider:

1. Market study

Like any new business, you need to have analyzed the market you are going to enter. Once you’re clear that the beauty salon will be your business focus, start investigating what your target audience is looking for and what they like. Take a look at what the existing companies (your competition) are offering and what they don't. This information will help you to provide something unique and differentiate yourself from the rest.  

Use tools to carry out your market research. You don't have to invest money and it will help you to segment not only your customers, but also your services. Use tools such as online surveys, monitoring on social networks or carry out a study of online trends for example.

 

2. Business plan

Next you can start to put together a business plan to chart out the details. Planning is necessary for entering any sector. A plan is a guide for the operation of your company and it can show you how feasible the venture is. You can use methodologies such as the SWOT analysis that analyzes the situation of the company internally and externally, and from there, you can create strategies that allow you to see the different scenarios and the application of solutions.

 

3. Documentation and legal issues

This is an essential point for setting up the company. It’s a step that, due to the process and time involved, becomes tedious, but it’s impossible to avoid. The necessary requirements vary according to the location of the premises, so we will include these requirements in the information for each country.

 

4. Choosing a premises

The location will be a determining factor for the profitability of the business. Certain characteristics must be taken into account when searching: level of traffic, close to meeting points where people can see it, parking areas and nearby businesses (not competitors). You can also take the purchasing power of the area into account.

 

 

A premises must adapt to the corporate image and the technical and legal requirements depending on the area/city where it is located.

 

5. Budget

Although it starts with you already having approved capital or credit to invest in your beauty salon, it’s important to analyze the previous steps to have objective and grounded confidence. Within your budget, you must include different factors that can increase or decrease the investment. Depending on the type of services, customer and the location, the amount will vary significantly. Adapting your premises will take up a large part of this amount.

 

6. Observe the details

Observation should be continuous, before, during and after opening your salon. It’s something that very few companies do, so many don’t get the expected result. People are always talking about their needs. With the rise of social networks and their synchronization with companies, customers are constantly commenting on their experiences. So listen, observe, read, ask and question everything you offer and see how your customers are perceiving it. Their satisfaction with your service is our goal. 

  

Services to provide at your hair Salon

We have mentioned the range of services that can be offered when setting up a beauty salon. Here are some popular options to include in your offer:

1. Complete hair care

Highlights, full color, balayage, Californian highlights... Within the world of coloring, there are always classic and passing trends, and a good professional knows how to deal with all of them. In many hairdressers, you’ll find that each type of hair service has a specialist, from the colorist who recommends the color that best compliments your skin, to someone who tells you which haircut can accentuate the shape of your face. A good salon will be your personal influencer.

2. Manicure / pedicure

While your hair is being worked on, your cuticles should also be pampered. A good beauty salon always includes a manicure and pedicure service and has a wide range of nail polishes available so customers can choose the color they like the most. In addition to the traditional manicure, you can also find permanent or semi-permanent manicure treatments and, of course, gel nails.

 

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3. Esthetics + beauty and hairdressing

If you want to open a business based on the combination of these two specialties, you can offer facial and body dermo-aesthetic services, laser hair removal and IPL, and also have beauty professionals dedicated to hairdressing, nails or makeup. To structure your Salon, you can create different areas: an area for styling and washing stations; an aesthetic booth with appliances and even a nail bar.

 

4. Spa + beauty and hairdressing salon 

If your base business is a spa with massage and hydrotherapy areas, how about adding beauty and hairdressing to your range of services? With this business idea, your customers not only leave feeling relaxed, but looking wonderful! To offer your services, you can create packs of personal care and beauty experiences so that your customers can enjoy a unique and special morning or afternoon.

 

5. Offer unisex services

Create two independent areas in your Salon. One with more feminine decor with resources and a personalized treatment menu, and the other with a more masculine decor, barber chairs and a list of services adapted to their needs. Two atmospheres in one business!

 

6. Use natural, ecological and cruelty-free cosmetic products

Customers are beginning to care more and more for the planet.  This is no “trend", and customers realise their ability to support sustainability through the purchases they make.  Try to use products that go are sustainable and contain natural ingredients, raw materials and have more environmentally friendly packaging.

You’re not going to save the world single handedly, but you will be setting an example. Many customers will appreciate this detail and you will also have added value in the service you provide.

Finally, keeping in mind all the information that we have provided, you can start thinking about your new endeavor. Also think about the fact that you can start your beauty salon not only as your own business, but also as a franchise. As of today, there are beauty brands that have experience and essential positioning when investing in this sector.

 

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Written by Jeff