Is your dream to open a hair salon? The Professional Beauty Association reports that today is a great time to start a salon. In 2015, over 900,000 salons opened across the country. Still a number of these salons closed after only a year in business. This means that it is easier to start a hair salon, but it requires a great deal of effort to keep salon doors open. The following are a few tips to set your salon up for success.
Make a business plan
Entrepreneurs should come to the table with a solid business plan. Plans should extend deep into the first year, and even serve as a guide for the life of the business. The business plan doesn’t have to be intricate, but it should address the fundamentals like: who your business is, how it will be successful, and how your business will face any problems that could occur.
Find the Right Location
Does your salon serve a niche market? What areas will your products and services gain the most traction? Will your salon products appeal to the area of your choice?
Select the Right Product Lines
This can tie into your location as well. Your salon should have a brand identity, which influences the products you sell. Ensure that the products you sell are what your target audience is actually looking for. Also consider how stocking particular products will affect your bottom line.
Price for Profitability
Pricing for startups like new salons is critical. It is important to price for your brand according to what your target market is willing to pay. It may take a few times to get pricing just right, but this is a part of the process. Is your target market price sensitive? Will your clients pay extra for quality products, or will they sacrifice quality for cost? Understanding your clients will be the key in pricing your products to sell.
Get a cash advance with bad credit with First American Merchant. We are a leading online lender that gives merchant cash advances to a variety of small businesses like your salons. Your hair salon can succeed with the right backing. Contact the representatives of FAM to learn more about our easy loan options and cash advances for merchants today.