You Got The KeysIf you have always been a master of hair design and dream of having your own business, you may consider opening your own hair salon. There are a lot of elements to make this happen but don’t fret, Private Label Extensions has compiled the steps to success. Take a look at our guide to get you started down the path of prosperity.
Business PlanNo business can function adequately without a business plan. You need a reliable roadmap that will guide your business to success. It doesn’t have to be a long drawn out. There is no right or wrong way to write a business plan. What’s important is that your plan meets your needs. If you need a little help getting started, you can always research online or visit your local small business association for assistance.
Type of BusinessDetermine whether you want the legal structure of your business to be a sole proprietorship, partnership, a limited liability corporation (LLC), or a corporation. You can apply for your legal structure, LLCs and corporations must go to the website of the IRS to apply for a federal tax identification number for tax purposes.
Accounting PlanWhether you decide to hire an accountant or you will handle the accounting duties, having an accounting plan in place is going to be an essential element of your hair salon’s success. If you decide to handle the numbers, there are several accounting tools to help keep your figures such as QuickBooks.
LicenseYou cannot operate a salon without a business license. If you fail to do so, the consequences may be fine, and in some states, you will lose your cosmetology license so take the necessary steps to avoid the hassle. Obtaining a business license can be done through your state’s cosmetology board. The requirements of your licensing agency depend on which state you live in and which types of licenses they provide.
InsuranceInsurance is a legal requirement for most businesses. Employees, clientele, and space need coverage in case the unexpected occurs such as damage, theft or a fire. As the saying goes, it is Better to be safe than sorry. Your stylists will need to have the proper licensing to do hair, nails or whatever services your salon intends to provide.
Funding and CostWhether you’re borrowing money through a bank loan or have an investor, you need to figure out how much money you need to get started, and where it will be coming from. Consider your budget and be sure not to go too far over your limit. Consider the cost of the following:
- Equipment such as hair dryers and basins
- Hair styling tools such as flat and curling irons
- Shampoos and conditioners
- Towels and drapes
- Supply trolleys for holding rollers and rods
- Nail and body products