There is nothing more exciting than starting your own salon business. From the planning stage to providing services to your clients, you get to make all the decisions. But with that creative freedom comes a lot of responsibility. There are requirements that change regularly and that you must abide by. And, now that COVID-19 has impacted the way salons do business, there are additional considerations as well. You must think about how to keep your employees, your clients, and yourself safe. Everything you do while setting up a salon will determine your level of success well into the future.
If you’re planning on opening a salon by next year, it pays to take a systematic approach. The following steps will help ensure you consider everything you need to make your salon business successful.
1. Do Your Research: You want your salon to be an investment into a profitable business. That means starting with the research you need to make sound decisions.
Look at the competition and which types of salons are excelling. Find ways to build on the most popular salon types without creating an exact duplicate. If you have always dreamed of having your own nail salon, and there is an abundance, that's OK. Look for areas of specialty that will set you apart. Once you finish your research, use your findings to create a strong business plan.
2. Create a Salon Business Plan: A salon business plan will provide extensive information that helps you make good decisions now and in the future. No matter how long you’ve been working in the industry or even if you have your own salon now, you need a business plan to keep you on track and organised.
A salon business plan will include everything from the executive summary to the steps you will take to establish your business and the types of salon insurance you will need. You have two options for writing a salon business plan. The first is to write it yourself following a good step-by-step guide. The second is to hire a professional company. In either case, make sure your business plan is geared specifically toward the salon industry.
3. Find Out About Licence and Permit Requirements: Anyone setting up a salon in Australia must register their business to receive an Australian Business Number (ABN) and Tax File Number (TFN). If you plan to register your salon as a company, you must do so before applying for the TFN and ABN. Also, you must register the business with the Australian Securities and Investments Commission (ASIC).
In addition, you might require a hairdresser certification from a registered training organisation. Additional permit requirements vary from state to state and according to the services you provide in your salon. For example, registration is required if you use techniques that penetrate the skin, such as semi-permanent makeup or hair removal.
4. Find the Perfect Location: New salon owners often see an existing salon as a good opportunity. They already have at least part of what they need to get started. But before you snatch up an existing property, find out more about the previous business. If they weren't able to maintain and increase their clientele, you might have problems too.
Compare the costs of multiple locations against the potential income. When listing down costs, include the purchase price or the monthly rent and deposit, the cost of fitting out the salon, and what you need to shell out for signage.
5. Decide on Salon Equipment: Every salon needs some basic equipment such as sinks and chairs. Specialty salons also require additional tools and equipment that can add to the overall cost. For example, if you plan to offer tanning, you must invest in tanning beds and maybe a spray tan gun.
Look at all your options before you buy. Compare the cost of new equipment to that of used equipment. There are also different options for leasing. Some companies offer a monthly rental fee, while others give you the option to lease-to-own. Determine your options for financing as well.
Once you know all the options available for equipping your new salon, you can choose which resource fits your budget and specific needs.
6. Determine What Kind of Salon Insurance You Need: Every salon business is unique in the tools you use, how you serve customers, and the services you offer. These specifications determine the kinds of risk involved. Most salons require a combination of policies to cover all their specific needs. Someone with a mobile salon requires different coverage than a salon owner who gives manicures in their own home.
Getting the right beauty professional insurance could mean the difference in keeping your business on track. Without adequate coverage, you might lose your salon to pay for losses from a fire, flood, or damages to an injured client.
The three basic types of salon insurance include:
• Public Liability
• Professional Indemnity
• Tools of the Trade
There are many things that can go wrong. Your expensive equipment might get damaged or stolen. You might accidentally harm a client’s hair or skin. Maybe someone steals a client’s purse while at your salon. Whatever happens, you are liable for their losses. Most new salon owners don’t have the funding to pay for these types of costs out of pocket. Thus, paying insurance premiums is a much better option — and a better business decision!
One Less Thing to Worry About
Salonsure Is an insurance broker that provides high-quality beauty professional insurance across Australia. We have more than 25 years of combined experience in the insurance industry. Our qualifications and custom insurance solutions ensure that you get the right insurance policies to protect your new business. Contact us today at 07 3135 7436 or email us at info@salonsure.com.au. You can also get an online quote for insurance based on your location and services.