Because of their straightforward business model, salons are often easier to break into than other types of startups. This means you can spend more time doing nails and less time chewing your own.
After you’ve applied for your operator’s license and found a suitable location, your chief concern will be getting your hands on all the equipment and supplies you’ll need to carry out business on a day-to-day basis. From there, it will just be a matter of managing your resources and polishing your image to leave your clients happy and looking fabulous.
Get some experience working in a salon. If you’ve only ever set foot in a nail salon as a customer, consider putting your dream on hold and getting a job at an established salon. Becoming a technician yourself will give you a better understanding of the unique skills and demands of the profession. In time, this expertise will play directly into your success as an entrepreneur in the field of beauty.
- Even a part-time job can serve as a valuable learning experience while you’re gathering your resources.
- As you’re working your way up the ladder, pay close attention to the administrative side of the business. This is the role you’ll be stepping into once you become a full-fledged salon owner.
Decide what sort of salon you want to open. Begin by formulating a vision for your business. Do you imagine it as an urban oasis where tired clients can come to be pampered, or an in-and-out cash cow that caters to a hectic professional crowd? Once you have some idea of what you want to achieve, you’ll be better prepared to plan accordingly.
- The goals you lay out for your salon may have an impact on your location, spatial requirements, or the number and type of services you provide.
Obtain all necessary licenses. Licensing criteria will differ depending on where you live, but at the very least you’ll need to be able to show proof of your cosmetology certification and apply for a standard operator’s license to conduct business. Additionally, some U.S. states require that salon owners carry a seller’s permit in order to be recognized as a legal vendor of specialty products.
- If you haven’t already, start researching cosmetology programs in your area. These courses typically take 1-2 years to complete. At the end of this time, you’ll be awarded the credentials you need to operate your own salon.
- You can file for your operator’s license, along with other licenses like different classes of seller’s permits, through the central business licensing association for your state or territory. For more information on licensing and local laws, contact your city’s business affairs board or visit your county clerk’s office.
Build up your capital. Start setting aside as much money as you can to finance your upcoming business venture. If necessary, you can apply for a business loan to supplement the money you’ve saved up. There’s also the option of seeking contributions from your friends and loved ones.
- Consider opening a savings account to keep your startup money separate from the rest of your finances.
- While you’re in the planning stages of opening your nail salon, cut down on unnecessary spending as much as possible. Every cent you save will bring you closer to realizing your dream.
Estimate your total startup costs. Identify all the places your money will be going to get your salon off the ground. Along with the regular cost of operation once you’re up and running, there will be expenses associated with leasing, licensing and property inspection, taxes and basic equipment and supplies. There will also be the matter of payroll once you begin hiring employees to work under you.[7]
- Consult with a professional business adviser or talk to the owner of the salon you frequent to get an idea of how much it will take to open your own.
- Starting your own business is never cheap. Fortunately, nail salons tends to be less expensive enterprises, as they don’t require any sophisticated technology.
Establish your business legally. All that’s left to do now is to complete the paperwork needed for your salon to be recognized as a business entity. These forms should be filed with the office of the Secretary of State in your locality. When this is done, you’ll need to register for your Employee Identification Number (EIN), which will be used to identify your business and place you within the appropriate tax bracket as owner.[8]
- Your salon can be set up as a sole proprietorship if you’re going into business for yourself, or as a general partnership or LLC (limited liability company) if you’re bringing another person in with you. Joint ownership is a great way to split labor and expenses, but it also means your profits will be shared.
- If you live in the U.S., you can apply for your EIN by filling out a form on the IRS website.