What is a Salon Business Forecast?
Let’s talk about a Salon Business Forecast. We are weeks into the New Year and how many salon owners, or independent stylists have already done their business forecast, or have you even started? Or maybe you are a hairstylist who is thinking of opening a salon, and you don’t even know where to begin.
If you are thinking of opening a salon, of course, the first thing you need to decide is location, and how big you would like the space. Does the area need to be built entirely out? Or is it an existing salon that you would want to update? So many questions and things involved with starting your own business. Figuring out how long the lease will be if there is a triple net on top of the monthly lease charge. How much are utilities, and what are you responsible for within the space. These and many more questions that you need to consider.
Preparation for a Salon
How many stations and stylists would you like to have in your business? Will they be employees or independent stylists. Will you have retail to sell. Any treatment rooms, such as skin and massage. What does your Cosmetology licensing board allow per treatment room? Some states require that a treatment room has to have a sink. You may need to look into whether you would want to consider that or remain a hair salon.
Do you need a salon license? A booth renting license for your business? Just take it one step at a time, it can be overwhelming. Take an inventory of everything you may need to open a salon. Price it all out. Get quotes from contractors, electricians, plumbers, etc. Know what you are getting yourself into before you jump in and realize that you needed more financing than you thought.
If you are an existing salon owner, did you put your business forecast together? Your goals of what you want to do monthly, both in retail and services. Do you want to hire more hairstylists, or fill your treatment rooms to offer more services? Creating a business forecast from year to year will help you to visualize what you want for your business, and what it will take to get there. Part of that is also educating your staff and giving them the right tools to be successful. In the end, if your employees are successful, it makes you more successful. Everyone will work together as a team.
Independent Hairstylist
Being an independent stylist, such as myself, is essential to creating a business forecast. How are you going to build your clientele continuously? A note to remember, we lose ten percent of our clients a year. Whether they go to another salon, try another hairstylist, move or die. We always have to be thinking ahead, on where to get new clients.
Here is what has worked for me, creating professional business cards, asking my clients for referrals and handing them a few of my cards. Clients are more than happy to refer you people. Have you ever thought of joining a networking group? Not only do you end up with a team of other like-minded business professionals. They are more than willing to help you succeed. You learn so much from them. Nowadays we also have social media. So it is like free advertising. It is about taking before and after pictures of your work and posting a clear and continuous theme to all your photos. Remember, these are potential clients looking at your work, so make sure the hair looks great!.
Then consider your monthly expenses, your chair rental, hair supplies. What do you spend a week? Do you have a business account separate from a personal account? Do you also have a professional salon system, that even has an app for your clients and yourself? Just because you may be one person in a business, does not mean you have to unprofessional. If you are considering being an independent stylist and no longer want to be an employee, think and plan, so you set yourself up for success.
As a Salon Development Adviser, this is where I can share with you on how to be successful in the hair industry.