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Hair Salon Business Loans
Guides and resources for hair salon business loans

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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

 

The market size of the hairdressing and beauty industry in Australia is valued at $7 billion [i]

 

 

The Hairdressing and Beauty industry employs more than 81,100 people in Australia [iv]

 

The Australian Government Job Outlook indicates a strong future growth outlook for the hairdressing industry [ii]

 

 

Hairdressers make up over 58% of the related Hairdressing and Beauty Services industry workforce [v]

 

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]

 

How can OnDeck Help?

        1.  

A quick and easy loan process

Our simple application process can be completed in minutes and you'll know within hours if your loan is approved

Flexible loans to suit your needs

With loans from $10,000 - $250,000 over 6-24 month terms, we work with you to understand what best suits your needs

Dedicated Australia-based Loan Specialists

You'll get an Australia-based Loan Specialist to assist you with your application

Find out how much funding you could get for your business

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What life stage is your hair salon business in?

OnDeck has specialised business guides and tips for every stage of your business.

Have a look below to see if your industry is listed.

Starting
Out

Learning the ropes and honing your business owner skills 

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Establishing yourself

Making a name for yourself and cementing yourself as a successful business owner

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Re-Invention and Evolution

Evolving as a business to newer and better heights

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OnDeck, the small business loan specialist

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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.

Not if you apply for the right loan and have a good credit profile. You can learn more about Ondeck’s easy application process and eligibility requirements here.

You first need to evaluate your financial options. Once you’ve identified what you need, you can apply for a business 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.

Create a profitable salon business with a steady stream of new customers as well as a loyal customer base, build a good pricing model, and avoid a cash flow crisis.

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.

One way salons can increase profits is by serving more customers. Your online presence and marketing strategies can help you reach more people, and then you need to turn them into loyal customers.

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.

Start by coming up with a business plan, which includes identifying how much capital you need. Once you’ve figured out the resources needed, the next step for most new business owners is to for a loan to help with the funding.

Ready to unlock opportunity?

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Sources:

[i] https://www.ibisworld.com/au/industry/hairdressing-beauty-services/677/

[ii] https://www.joboutlook.gov.au/industries/industry-profiles?industryCode=S 

[iii] https://nationalindustryinsights.aisc.net.au/industries/personal-services/hairdressing

[iv] https://www.ibisworld.com/au/industry/hairdressing-beauty-services/677/

[v] https://nationalindustryinsights.aisc.net.au/industries/personal-services/hairdressing

[vi] https://nationalindustryinsights.aisc.net.au/industries/personal-services/hairdressing