The cost of starting a hair salon business depends on a number of major things such as type of business, location, services offered, initial purchases, focused target market and many others. Starting small by getting a space in an existing salon on rent, will cost you significantly less as compared to acquiring a well-known franchise. Both approaches may have similar nature of startup costs, except the amounts that depends on the scale of your business. Let’s see the critical costs you need to be aware or in order to start your own salon business.
Supplies For many customers a salon does not necessarily involve in giving only hair and skin treatment services, but also a store from where they can purchase related products. Adding items that can be purchased in the usable items list can increase your costs. The costs largely depends on the brand you are purchasing, for example, brands like Matrix, Nexus, Abba, OPI, etc. can raise your initial costs high enough till $23,000. Other important supplies include perm rods, hair capes and towels, sanitizers, cleaning tools, washer and a dryer.
Equipment In a booth rental case, the costs of equipment and supplies like styling chair, hair dryers and sinks is normally included in monthly rent. On the other hand, if you are purchasing a working salon, the prices on the equipment can be negotiated. Some initially fixed equipment including receptionist desks, sinks, booths, etc. can be paid as a part of the business purchase and costs negotiations can save you loads.
Getting a space on rent or purchasing a full-fledged franchise can cost you from zero to figures mounting till $32,000. As a startup, avoid to go extravagant like purchasing chandeliers, highly customizable chairs, fancy shaped mirrors, LEDs, etc.
Business startup costs Costs of insurance, utilities, obtaining permits and licenses sum up as your business startup costs. A rental space or booth can cost you around $1,000 that will include all of these costs. However, as a sole business owner of a franchise you will be required to pay for rent, deposits, utilities, insurance, and in some cases a percentage of your monthly sales. These costs can rise up till $10,000. In review of contractual agreements for both rental and franchising purposes, you will need to hire an attorney that is going to cost you around $250 per hour or more.
Promotional costs Promotion and marketing of your new business is the last thing you want to neglect. The constitution of this cost is not a one-time effort, but something that can go on for several months in order for survival and gradual expansion of your hair salon business. Several promotion activities can be chosen from such as mailing flyers to nearby residencies and businesses, radio advertising, and TV and billboard advertising.
Bifurcate the promotion expenses on the basis of activities such as: website, flyers, direct marketing and newspapers as cheap options, whereas, costly options appear in the form of radio and television advertising. Promotion costs range from few dollars to $15,000 depending on the opted method of marketing.
Visit Hair salon Maumee OH to get more information about Local salon Toledo OH
|