If you’ve been working as a cosmetologist, and you're considering making the leap to becoming a salon owner, there are specific things you need to research and plan. Being your own boss and owning a business is exhilarating, but it also carries different types of responsibilities versus working as a regular cosmetologist. The biggest challenge is realizing you’ll be working more on your business than in your business.
These are some of the biggest factors in whether you will be a successful salon owner.
Mindset and Determination
Running a salon, or any business, is a huge undertaking. When you’re building your salon business up, when challenges arise, you’ll need a positive mindset to get through the struggles to get to stability and success. The most successful salon owners never stop learning, not merely about the latest trends and hairstyles, but also about business practices, marketing and operations. As a cosmetologist working your chair, you expressed your creativity. As a salon owner, you have to channel that energy into growing, promoting, and nurturing your business. This determination and business-focused mindset will help you plan and execute for success over the long term.
Pre-Planning
Before you open your doors, you’ll want to find out what regulations and licensing is required in your city and state. What insurance policies do you need to carry as a salon owner? What business licences do you need to operate in your city? Are you organized as an LLC or other business entity? Will your staff be employees or independent contractors? And do you know the difference between the two?
Knowing the regulations for your state, and keeping track of what business-related fees and licenses are due, and when, is a crucial aspect of running a salon business.
Operations and Management
These are the main aspects of your responsibilities as a salon owner that you will be dealing with each day. While you still may see a few clients for cosmetology services, your time will be better served making sure the business runs smoothly.
Location and Leasing. The location of the salon will play a critical role in how much foot traffic and car traffic you get each week. Busy areas where your target demographic's customers are nearby will be better than a location that’s inconvenient to your potential clients. Each commercial property location will have a different cost, so analyze the impact of your location on revenue versus the overall cost of the lease to determine the best location to grow your business.
Staffing and Payroll. You’ll want to determine whether to hire independent contractors or hourly employees for your staff cosmetologists. Run background checks on any potential candidates and find out what their current clientele roster looks like. Decide how wages will be paid and how often employees will be paid. Using a payroll service or accountant to distribute paychecks might be a good solution to allow you time to work on other aspects of the business.
Finance Management. As a salon owner, your fiduciary duties are to make sure the business is covering expenses and turning a profit. What business taxes must you pay to the state and federal government? Does your salon price services competitively compared to other similar shops in your area? How do you set pricing in the first place and how do you know when to adjust? What do you pay your hourly W-2 employees per hour, and how does that compare to competing salons? How many clients need to book services every day for you to cover expenses and payroll? These are all questions you will need to answer before you open your doors.
Marketing
Promoting your salon is a big part of attracting new clients. Social media marketing, especially on platforms like Instagram, is vital for showing your salon’s high quality of work. Using your website and related profiles like Google Business Profile and Yelp will also help draw people to your salon. A large part of your time and energy should be spent on marketing your salon, every single week, and ideally, every day.
Trends and Technical Skills
Analyzing beauty trends and making sure your salon staff is prepared for customer requests is another important part of being a salon owner. Is there a new hairstyle or technique that everyone is sharing on social media? Are there new trends in nail art or hair coloring that everyone is talking about? Making sure your staff is fully trained on these techniques is key to making your salon successful.
Business and Finance
Managing the finances for a salon is crucial for success. Managing the revenue, setting and adjusting prices, staffing and payroll are all things you will be responsible for as a salon owner. Paying close attention to the profit and loss statements and ensuring there is enough margin in the pricing and operating costs to pay expenses and still turn a profit will help ensure the longevity of your salon.
Running a Salon is a Full Time Job
When you get closer to setting up, opening, and running your salon, you’ll quickly realize that this is a full time job that requires systems of oversight. Juggling multiple roles such as business owner, management, finances, marketing, and cosmetologist takes a lot of focus. Much of your time and energy as a salon owner will be spent on managing the business, vastly different from when you were working as an employee or independent cosmetologist. The biggest pitfall is when working cosmetologists make the big leap to salon owners, and they haven’t researched the business aspects of owning a business and planned accordingly. Having a business structure, leasing commercial space, understanding local business licenses and fees, and marketing are all things you should research thoroughly and understand before opening your own salon. With planning, dedication and oversight, you can keep growing your business and building an iconic beauty brand in your local community.
Begin Your Cosmetology Career Journey at Campus Sacramento
If you’re ready to begin your career as a licensed cosmetologist, Paul Mitchell the School at Campus Sacramento has a world-class Cosmetology program to help you learn the skills you need to get started. You’ll learn hair styling, skin care, nail care, hair coloring, and cosmetology marketing tips from industry professionals and learn what you need to know to get certified as a licensed cosmetologist in California. Flexible day and evening classes are available. For more information on start dates, curriculum, and financial aid, contact our friendly Admissions department or call 888-675-2460.