The beauty business is BIG NEWS these days. Whether it’s nails, hair, skin or general pampering, the industry has grown massively in the past decade – despite the lingering effects of the worldwide recession. The stress of the recession may have helped to contribute to some aspects of the beauty salon and spa business. For instance, nipping to a nail bar makes you feel great doesn’t exactly cost a fortune and is exactly the kind of affordable treat we all need to help us feel good about ourselves. Called ‘the lipstick effect.’ It’s a well-known phenomenon that has been around for decades.
And, of course, massage helps deal with stress (who wasn’t anxious during those recession years?!!) In fact, according to research by the International Spa Association (ISA) fascination with our appearance – and our ‘need’ to spend on it – is now something many of us do these days without thinking. In other words, our pedicures, facials, hair treatments and massages have become less of a ‘treat’ and more of an ‘essential’ in our lives.
So, if you’re thinking of starting up your own Salon business – the industry itself has a massive turnover of around £6.2 billion according to the Health and Beauty Industry Authority (HABIA) – then it may not be a bad idea at all. Naturally, though, like all businesses, a lot of thought will have to go into certain aspects of your new venture. In terms of the beauty salon industry, here are the types of issues we’d prioritise:
Your business model
Consider buying an existing beauty salon or investing in a franchise. That way most of the hard work will have been done for you. This is especially true concerning the latter since the branding, advertising etc. is already out there, as well as the business model.
If it’s the former route you plan on going down then you’ll probably be able to pick up existing customers as well as those all-important ongoing sales. You’ll also have all the equipment you need right there to hand (and will hopefully be able to buy it at a discounted price).
You need to be officially registered these days to administer several beauty and salon treatments in the UK. This includes pedicures, massage, reflexology and for the commercial use of sunbeds and saunas.
Is the location good for the type of demographic you’re hoping to attract? If it’s not in the centre of town or on a convenient high street, is there a good bus or train route nearby so that your salon is easy to access for potential, and existing, clients who don’t have a car? While you’re doing your research, is there any competition in the area – and if so, can you offer treatments and experiences for clients that are different?
If you’re buying an established business then, provided they want to remain, you’ll already have trained staff. If it’s a franchise you’re investing in or you’re starting from scratch, then it’s essential to get qualified and trained staff. You’ll then have to start researching to get the best Employee Liability Insurance coverage, as well as Public Liability Insurance (it often works out more affordable to purchase both as a combined package).
Other financial outlays
As well as initially buying the business, you’ll also have rent to pay, staff costs and general overheads (such as stocking up on beauty potions etc.). Then there’ll be heating and lighting costs and perhaps transport if you offer a mobile hairdressing or aromatherapy service, for instance. Then there is your Salon Insurance to pay. This isn’t just essential for your financial health, but also your peace of mind since you’ll know that if the worst happens you’ll be covered financially.
To find out more about the type of insurance you’ll need when you plan on opening your new business, why take a look at our handy Salon Insurance Guide at Quoteradar.co.uk today.