These days, the hair and beauty industry is growing stronger and more vibrant than ever before in the UK. In fact, this industry has become so popular that it has a spectacular £7.6 billion contribution to the UK’s economy from almost 42.000 hairdressing, barbering, and beauty businesses across the country.
With a growing demand for beauty treatments and services in the UK, this market has a lot of potential for you to get started in. If you are planning to set up your own hair or beauty salon and join this growing sector, there are a few vital factors to consider as an aspiring salon owner. Read on to find out what are the steps you must take to open a fully legal and operational hair and beauty salon business.
Create a detailed business plan
First things first, like with any type of business opening, you need to start with creating a well-detailed business plan. A good business plan for setting up a hair and beauty salon needs to contain a few key factors that will help you draft your path for the next few years on the market. A business plan for a hair and beauty salon business needs to cover the following elements:
- Business background and experience
- Target audience
- Market competitors
- Marketing strategy
- Business location
- Services offered and the team of employees
- Financial forecasts
A business plan containing all these details is essential to help you stay focused on your business goals and how much you have achieved so far. It can also help you be smart about managing your business’s budget including stock, wages, and other expenses so that you avoid financial difficulties.
One vital aspect that you must pay extra attention to is choosing your business’s location. There are many elements you should consider in order to ensure your business location is suitable for your business model. The top four factors linked to the location that can influence your business’s path include location accessibility, costs, competition, and transport links.
All these four aspects can play a major role in your hair and beauty salon business’s success. It is obvious why your location needs to be somewhere where customers and employees can reach easily. However, you also need to consider how much the rent will cost you and what competitors already exist in the area.
Figure out finances
Next, after building your business plan, it is time to get your finances straight and figure out how are you going to pay for everything. If you already have enough money in your bank account to start your hair and beauty salon business, things will be a thousand times easier for you.
However, if you lack the initial capital and need to get a loan, you also need to figure out how to maximize your profits in order to be able to pay back the money.
Start with creating a budget in which you will include all the expenses you will have to pay for when opening your business. Do you already have the necessary equipment or you need to invest in it? How much will you pay for the supplies?
How many employees and how many salaries will you be paying? And, one extremely important step is to get the pricing right because your business’s financial health will be supplied by how much money your customers will pay you.
Next, you need to consider that any business, no matter its type or industry, has financial obligations. So, you need to make sure that you will pay all the necessary taxes.
Adhere to rules and regulations
Although in the UK it isn’t necessary to have qualifications to practice a job as a hairdresser or barber, when it comes to owning a salon, there are a few rules and regulations you must consider. First, you need to start by registering your business with the local authority.
Next, regarding the health and safety regulations for the products used, hair and beauty salon owners must consult with The Control of Substances Hazardous to Health.
Whereas, for the regulations for the salon equipment, you can check the guidelines offered by the Healthcare Inspectorate, The Care Commission, and the Department of Health, Social Services and Public Safety.
These institutes are the ones that can help you clarify the legal requirements for the safe running of a beauty salon in the UK.
Get insurance
Although the hair and beauty services industry is growing fast, it is a sector predisposed to a number of things that can go wrong. Customers can develop allergies, burns, or other health conditions that can be extremely costly for salon owners.
Also, to provide customers with hair and beauty services, every salon uses expensive equipment which can break down or get stolen leading to a huge hole in the budget of any salon business.
So, it is absolutely vital to have proper insurance that will protect not only your customers but also your business and your team of employees. You need to compare salon insurance types and choose the right ones for your business. You can choose from:
- Public liability insurance
- Employer’s liability insurance
- Contents insurance
- Buildings insurance
- Business interruption insurance
- Terrorism insurance
Depending on your business model and which hazard your business is the most predisposed to, choose types of cover that will help you run your business with peace of mind.
Promote your hair and beauty salon business
As the hair and beauty sector is growing and more and more such businesses are being opened, the competition is a lot tougher. So, as an aspiring beauty salon owner, you need to find innovative ways to spread the word about your new start-up salon business.
Aside from the traditional marketing strategies including offering flyers and discounts, you also need to build a strong online presence these days.
So, don’t forget to get online and engage with your target audience on Social Media, on your salon business’s website, and anywhere in the online world where potential customers can be found.
To sum up, starting a hair and beauty salon in the UK won’t be plain sailing. There are many aspects to consider and to take care of in order to run a safe and legal business.
From creating a good business plan to being smart about budgeting and paying taxes, getting insurance in place, and respecting all rules and regulations, these tips are a great way to get started on opening your salon business.