Before starting a new business, it is important to have an idea of how much it will cost to set up and run it, as finances are one of the most important aspects of any business. From setting up a business to establishing it and running it, it will need money to support it from paying bills to paying the employees or paying for other minor and major expenses.
Setting up a beauty salon business is not a cheap affair. From getting a place to start a business to buying salon equipment, it can cost you from $2,000 to $40,000 depending upon the kind of place you rent to type of materials you use for services. You should also have a reserve of money to last you the first three months of working as you might not be making profits from the first day.
We have complied here a list of some basic expenses that should be kept in mind for setting up a beauty salon business.
A beauty salon is not complete with proper equipment. You cannot cut hair on a recliner chair not you can do a facial on a sofa. You need proper equipment fro chairs to combs and creams to hairdryer and numerous such things to satisfy customer in the best possible way and encourage them to come back next time.
Proper and comfortable seating arrangement, with a well done waiting area and working seats along with a good ambience can do wonders for the salon business.
Another important thing after proper equipment which plays a vital role in brining customers is good advertising. Even though advertising can be expensive, yet it is very important because if people don’t know your beauty salon exists, how will they come??
You can advertise you salon in news papers, TV ads and even have the brochures delivered in homes, and have the posters set up in malls and markets. Make sure to heavily advertise in the area your salon is located as people especially like to visit salons nearest to them due to lack of time. This can really help you in getting more clients and more business. Word of mouth is also good advertising but it will only happen once you have some clients and the salon is doing good and offering quality services.
Unless you own the beauty salon space or have purchased it, rent is a major expense that needs to given top priority.Find a space which is at the same time located in the right place to attract customers, does not already have an existing beauty salon and offers the required area to set up an impressive beauty salon.
The cost of rent will differ from area to area according to the space it offers. Bargain and check out other places before deciding on renting a particular place as you might get a better deal in some other form. Rent is one expense that you will have to pay from your own pocket even if your salon doesn’t get any business so choose wisely.
Electricity bills, telephone bills and bills from the product suppliers are also a major expense. They will have to be paid regardless of how much you earn during a month. Thus, make sure you buy the products on that you need in the initial phase of beauty salon set up as everything will cost you from a hairdryer to a hair cream and facial cream to a manicure lotion.
If you are establishing a big salon, you will need to hire trained personnel and staff to help you out and create a professional image. When you hire trained people, you will need to pay them too according to their job responsibilities and how they work. Decide on their wages before they start working to prevent any problems later on as by the end of the month you will have to pay their salaries no matter how much you earned during the month.
Other beauty salon start-up expenses may include:
- Cash register
- Merchant account fees (to accept credit cards)
- Business license fees and other required documentation (varies by state)
- Utilities such as building eminence or parking charges
- Professional fees (accountant, lawyer, etc.)
- Signage costs
- Interior design and decoration
No matter how small you start, these are some of the main expenses in running a beauty salon as they are every important for a proper business enterprise. Also, it is important to make sure that you control your expenses and keep them to a minimum unless you can afford to pay them all from the profits you earn from the salon.
It is advised that you go over details very thoroughly and check out what things you need and work expenses out to set up a prosperous and lucrative beauty salon business.