Hair salon small businesses
Hair Salons have proven themselves to long-standing and staple business prospects for entrepreneurs and investors alike. After all, just about everyone needs to get their hair cut at some point. It’s a business that represents an intersection of commerce and community service.
One of the key advantages that hair salons offer is the ability to tailor offerings to different types of customer; your salon might cater for the general customer, may be explicitly high-end in its approach or might even appeal to specific niches of customers across the spectrum of the market.
There’s also considerable opportunity for businesses to expand in the coming years. Increasingly, hairdressing salons – and the beauty industry as a whole – is attracting non-traditional customers who might have otherwise utilised barbers or chain hairdressers. Men have emerged as a new customer base, and there’s also an increased interest from customers in the use of “organic” treatments for their hair.
Legislation is also in the works to better standardise how hair salons operate around the country, which presents new and existing operators alike to get ahead of the curve with the right finance.
Additionally, while the hairdressing industry hasn’t been immune to the effects of COVID-19 during 2020, it’s been less affected than many other sectors. Hairdressers were classed as an essential service in many parts of the country, meaning they weren’t subject to the same shutdown orders as many other businesses around the country.
Whether you’re a long-serving expert in the industry looking to expand your salon or branching out after wrapping up your apprenticeship, hair salons represent an exciting business opportunity for any professional in the hairdressing space.
Hair salon Small Businesses in Australia – the Statistics
Employment levels in hairdressing are projected to increase to 79,600 by 2024[iii]
The Personal Services IRC’s 2019 Skills Forecast indicates that future growth in the hairdressing industry is expected to be partially driven by the increasingly popularity of specialised male grooming salons and organic salons [vi]
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OnDeck, the small business loan specialist
OnDeck has been an awesome help with my small business cashflow for many months and I thank you all in the company for the ongoing help especially Peter.
Jolantas Pty Ltd
Hair Salon Loan Frequently Asked Questions
Banks and lending institutions offer a variety of business loans for hair salons. The application process and eligibility requirements are different for each, so ask these questions before taking out a loan.
Start by doing heaps of research. Look into industry trends, specialties, locations, and resources/funding to make sure you’re aware of all the components associated with starting a new business. Then write down your company description, unique selling proposition (USP), market analysis, products and services, marketing strategy, and the funding needed. After that, you can start applying for any necessary business loans.
A salon that delivers a high-quality service and has efficient processing systems. Quality comes from offering better/unique services compared to your competitors, having experienced staff, and offering products your customers want. Efficiency focuses around POS systems, invoicing, payments, and customer experience.
This depends on what services you want to offer as that influences the equipment you need as well as space. The more you offer, the more you’ll need. Besides equipment and rental costs, you need to include staff, product inventory, insurance, loan repayments, etc.
A strong business plan, a well-trafficked location, and experienced staff are a few key necessities. Having sufficient resources and cash – oftentimes sourced through a business loan – to cover the start-up costs are also important.
Salons need to comply with their state or territory requirements based on the services they will offer. For example, in Sydney all hairdressers must have the right qualifications and licenses to work.
Choose your location based on your ideal customer base and price. Make sure you are in a convenient location for your customers while maintaining a rental price within your budget.
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