What do I need to open a beauty salon?

[hippy-chick]

hiya kaala,

glad that you are still sticking in there and still asking for advice.

I have been following this thread on and off, and think that some of the comments have been quite aggressive.

It looks as if you've got it about right, starting off with 2 treatment rooms, and going for popular treatment ranges.

Have you checked out your neighbours/rivals (of course you have).

Although I am not a beauty therapist, I am a holistic therapist, I have worked in a beauty salon, the owner rated caci highly.

dermologica have got a very good reputation and a lot of geeks would love to use the products.

St Tropez is very popular too.

If you take staff on, would you then bring in the professionals to train you all?

Why don't you invest in trying a few of the treatments out yourself? If I decide to do another course or try a new range, I book into a salon that already does it, and try it first, it saves a lot of time and money, as sometimes you just don't like what you experience.

 

[jacquisu]

I have owned a hair, nail, and beauty salon for over 11 years now and this thread scares me. Qualifications and experience are EVERYTHING, I'm still at college now 20hrs a week learning new stuff as well as working, and I'm sure I always will be, but the experience has taught me things no quick fix training course ever could.

Its a wonderful fantasy to think you can just buy a shop and start making buckets of money but back in the real world clients do not grow on trees and they do not come back if they get unexperienced staff. You can hire staff but no matter how many certificates they show you at interview you usually don't really know how good or bad they are until they've been with you a little while, by then you can have lost your best clients - I should know I've sacked my fair share! Staff are not cheap either, and they want holiday pay and call in sick - who's going to cover for them??

The most popular beauty treatment in my salon is an eye brow shape, and for hair it's a dry trim - simple stuff for qualified people, but you have to do a lot of them to make any real money. That business loan will have to be repaid along with the rates, leccy, staff, stock, maintenance, training, tax, bank fees, PDQ, subscriptions, insurance etc etc. Thats a lot of eyebrows.

Its harsh but so is business honey. If you can't handle this then how are you gonna handle a client with a complaint, vandals that smash your windows, bank charges, staff stealing stock, treatments that don't work, fire, flood, electrical failure, storm damage, major roadworks diverting customers away, perverts, break-ins, bounced cheques ....i've seen all this and much much more....it's not all plain sailing and fluffy bunnies...and it's certainly not a get rich quick scheme.

If you want to do it go to college, then go mobile, then start small, one step at a time.

Good luck!

 

[minky]

Hi Kaala it may be best as you say Kaala to start off small ,
so you could offer things at first which doesn't require expensive equipment , these things may be better coming a little later because if it doesn't take off then you are not lumbered with the vast expenses ,

My friend is a beauty therapist level 3 and offers absolutely everything you mention ,
and she has bought every single thing herself plus payed for all her own training , she is self employed and provides her own insurance too. she pays around £100 a week ,

So you could start off with renting out a couple nail of nail stations to a couple of well Qualified nail techs one trained in Gel and one in liquid and powder
(You may want help in this area )
so you could go on a Private Creative Course like a lot of the Nail Techs do on here.

The courses are not cheap but are of excellent quality and value ,
you will find out every thing you need to know about Creative CND on here.

They are well worth the money as the name will speak volumes for itself , (It is loved world wide) .

Also renting a room to a beautician who just does all the basics for now ,
waxing ect facials massage ect, they usually have all their own equipment and products if you are lucky they may have a lot more to offer ,

Then you could also rent off a couple of Salon Hairdressing Stations
this way you will not have to provide anything ,
as they will provide all of their own equipment

A teeth whitening room for rent maybe the more newer not harmful type (no peroxide ) again I know someone who does this ?
He is making a lot of money , and he has only been in it for 4 months,
again its a private course anyone can do it but cost a few thousand to train up and doesn't take too long
maybe you could train up in this ?


In return for rent you would provide all beauticians and hairdressing sinks, electric plug points running water hot and cold,
toilet facilities,
a staff room , a receptionist to take appointments phone calls ,and handle cash,
Client record cards or computerized record bank ect
(for you to keep if staff leave)
Heating lighting and fixtures and fittings such as hairdressing chair , and dressing table , storage room for stock preferably all lockable cupboards
(saves a hell of lot arguments )
A couple of nail desks again all lockable :green:
because sometimes usually out of sheer desperation tints ,nail polish, ect get borrowed and never get given back ,

This is a major bone of contention with staff who supply their own stuff they get so get fed up and will walk out if their stuff goes missing all the time
so Lockable storage, and stations are a must

Also lot of nail techs, hairdessers , and beauticians like to use their own brand of products , so its best they supply all their own stock ,

other salons work on a percentage basis the staff still buy all their own stock ect and they give you 25% to 30% of everything they make .

if you were to provide all of the stock instead then you would have to work out a bigger percentage in your favor usually figure of about 50 /50 or 60/40 if any product is involved ? eg a haircut No product 50 /50 with product
60/40 to you

If you use a lot of certain products you may get discounted prices with certain company's for using their brand , so shop around and ask.

Also a very important issue is to have a contracts of employment set out for your any staff ,
get some professional legal advice about this as it will have to be clear in it what they are responsible for and what you are responsible for ,
eg what thier rates of pay are or the percentages or rent charged ect
when any contract and price reveiws will take place,
what to charge the clients
eg they must be responsible for all their own insurance taxes vat if any ect ect .
You will definitely need this ,
hope this helps ,:hug: Im off for a cuppa now .

.

 

[carlyhead2toe]

one question Kaala,

whos going to cover for your amazing staff when they either-

• call in sick?
• leave with no notice? (probebly because theyve realised their boss doesnt have a clue what shes doing)
• or do a runner with all 'your' client base that theyve built up for you?

CLUE: The beauty industry doesnt have temps! and your clients wont wait around!

 

[kalaa]

thanks minky,:hug:

You're comments have really helped me understand one of my main worries. I've been worried about a) do I hire staff and pay them a wage and then additional percentage incentives or b) do i hire out the space and then work things out from there. Thanks for the great advice

If I was to hire out treatment rooms and nail stations, what would be appropriate to ask for? I have certain brands in mind that I feel strongly about including, as I have been a consumer for many years and have enjoyed the results. So I would be providing the products, equipment,space, electric,power,running water etc. But I really dont know what I could possibly ask for in rent for this predicament. Any suggestions would be gratefully recieved.

On another note I would love to offer IPL using either epilight or aculight, but I'm finding it impossible to find out how much these machines are brand new and where I would be able to purchase one. I'm really excited about this new technology and would like to find out more. If anybody offers this treatment please let me know what you think of it.

 

[kalaa]

sorry I forgot to ask,

If I rent out space and go 50/50 is this on the price of the treatment before or after costs?

I'm pretty sure its before, but I just want to make sure that I understand properly.

many thanks:green::green:

 

[Katelisa]

If I was to hire out treatment rooms and nail stations, what would be appropriate to ask for? I have certain brands in mind that I feel strongly about including, as I have been a consumer for many years and have enjoyed the results. So I would be providing the products, equipment,space, electric,power,running water etc. But I really dont know what I could possibly ask for in rent for this predicament. Any suggestions would be gratefully recieved.

dunno if someone has already mentioned this but if you provide everything inc products, they may not be classed as self employed. so just check that out.

 

[minky]

sorry I forgot to ask,

If I rent out space and go 50/50 is this on the price of the treatment before or after costs?

I'm pretty sure its before, but I just want to make sure that I understand properly.

many thanks:green::green:

Hi . Kalaa Im not sure what you mean but Ill try and clarify ,
if someone rents a room or station from you say for around £100.00 a week then that is all you would get from them and nothing more. (see below)


(Renting ) this means staff to be on a self employed basis only and they would also supply everything themselves,
they would pay youa clear rent of around £ 100.00 a week or more depending on the salons location, and they pay all their own tax ins ect

Obviously if you were providing all the products then you would have to add this on to your rent to make sure you cover yourself
(you would have to work all that out) eg how much stock they use ect.
but as Katelisa said this isn't the usual the way to do things.
In these circumstances you would usually just employ someone instead and pay them a normal wage ect

Also if you are buying all the equipment you say you want.
that does not entitle you to put their rent up,
it just means that you will own it
and the therapist will make you extra money out of using her higher qualifications on your specialist equipment, (so it evens itself out)


Here is an example of the percentage way which is easier to work out eg ;
if you buy all the products ect the person will still be self employed but on a percentage basis then there is no rent for that person to pay
it is done on a percentage basis of around 50/50 of whatever they earn but if they use any products provided by you then it is 60/40 with the 60 percent going to you and the 40% to them , plus they still pay all their own tax ins ect

eg a Hair cut no product used = 50/50 to each of you.

Hair cut and colour product used = 60% to you 40% to them
its that simple

same with other services nails beauty ect,
hope this is easier to understand

Another set up is if they buy the products then they pay you around 30% of all their earnings , plus they are still self employed

Sorry I cannot help you out with employing people as I don't really employ :hug: minky

.

 

[fly]

Thea green started nails inc, she was a vogue fashion editor i think. She then found Helen Harvey who is opperations manager or something like that, she has the nail know how. Thea just wanted to set up a service for women with little time, based on her own experiences of getting a manicure being a busy lady.

Nails inc prefer to employ non nail tech managers, or they did when i was with them, which put enormous pressure on me, the assistant when the sh*t hit the fan, because i was the only manager with the know how. I eventually ended up running the nail bar myself because the manager was crap.

I left shortly after because i felt they were in it for the money not the quality of service to clients.

I read ur post about Nails Inc and thought that i should spend a word.
Thea and Helen are great business people and are trying to set up very high standards in a industry that was only run by often unprofessional "corner"shops.
I don't know how things were when u worked for them but there are reason why the managment system is set up the way it is.
A retail manager is needed because of the big turnovers that the company has and also because every Nails inc shop has quite big teams to manage as well as lots of paper work to fill in that a tech or beautician would not be confident with or simply not bothered with.
A fast growing company will take time to be set up properly, and it takes mistakes to get things better, but we should all take good example from others mistakes and also be happy to see new ideas happening ,that are widening the beauty industry.
The point that alot of geek are missing here is that be a skillful beautician is not enough to run a salon when be a business person it's a good start.
It is a matter of linking both skills, beauty and business and not all of us have it.
I know lots of very good beautician that tried to open a salon and failed because if u r passionate about ur job and want to be hands in u simply don't have the time to dedicate to the business side of it, bills,marketing,promotions,customer's complaints,staff managment,service standards,recruitment,licenses,health and safety and so on and on...
I am qualified, I have studied hard and worked harder and still do, I 'm lucky to be a skillful beautician and manager and i am surely considering opening my business, and doing so I am aware that i'll have to sacrifice my beauty skills in order to run my salon efficently because I am not a super woman and cannot be everywhere doing everything.
The poster of this thread had a very arrogant and confused approch to this matter but I think she had a good ground to start her business and the support needed, because money is still the main problem when u want to start ur own business.
My advice is that she gets training to understand what treatment she wants to offer to her customers and employ a top manager and beauticians to work for her so she can concentrate on using her skills in her business.
My advice would be for her to work in a salon in any role first to have an idea of what can go right and wrong on a daily basis and get some experience on somebody elses's expenses as crude as it sounds.
I know the frustration that comes from seeing unqualified people trying to persue a dream of working for themselves that most of us might have, but it is not about being haters but absorbing some of that energy and positive attitude and get some confidence and braveness from them!
Not all of us will open a salon so we need people to do it so we can still get jobs and so all the college girls can too.
U don't see Sir Richard Bronson selling CDs at virgin or driving his trains, or flying his planes etc...he is a business man that trusted his sense of business and a lot of qualified people to make him the millionaire he is.
Dear poster as u r trying to get government money,I just beg u to be fully ready before u start so we can see our taxes going to something good for once!!
and please pass on ur accounter details, i surely need to speak to him, serious!
Good luck with everything.

 

[SallyGirlJojo]

hi fly, welcome to salongeek, this is a very old thread (nearly 6 months old now) so I don't think you will get much of a reply, especially as this was quiet a controversial thread anyway! hope that helps x

 

[fly]

hi fly, welcome to salongeek, this is a very old thread (nearly 6 months old now) so I don't think you will get much of a reply, especially as this was quiet a controversial thread anyway! hope that helps x

hello and thank u! ahhaha i started reading the comments and didn't even look at the date it could have been 3 years old....im such a newgeek!!!see u around!!!

 

[Prettyinpink85]

Firstly I just want to say its not as easy as just getting a loan that you don't have to pay back, whoever told you that I think wasn't quite telling you the truth or living in cloud cukku land, like seductive says the princess trust fund which can give partial grants if you fall into the right category don't give out much AND it's very hard to obtain, I think its up to £3000, the most they will give is a £5000 loan which yu have to pay back no matter what. IF the govenment gave out loans that if your business failed you woldn't have to pay it back don't you think everybody wouldn't be jumping on the bandwagon? When I was setting up my other business a few years ago I looked everywhere for loans from the govenment and never once did I ever hear "you don't have to pay it back if your business fails" so I think thats rubbish personally, I ended up taking out a loan from a bank and am still paying it back thankfully my business was a success and I am able to pay it back.

Secondly, opening a business without any knowledge even the smallest bit is a disaster waiting to happen, like others on this board have said either go and get qualified, work for yourself once qualified and get a feel for the industry or hire a manager who knows all about the beauty business, but don't expect it to be a "get rich quick scheme" or for you to be a success over night, it doesn't matter where your business is based whether it be a major town centre or a side street, if you don't have the experience it will fall flat on its face.

OK rant over lol

Danni

I had a buisness loan of the princess trust fund my business struggled and after 3 years I gave up and still had to pay the money back.

And trust me you dont get that much maximum £5000 in very rear case most are around 1-2 thousand and i had to have endless meetings with the board

 

[number1kitty]

Going to add to this that I spent ten years in this industry and I am highly qualified and come from a fantastic business background. I set up a salon that took three years before I could move to bigger premises but only because I love what I do!

I worked in the business working 12 hour days if not longer 6 days a week. Without me working full time I would not have survived. I am fantastic at marketing, pr and advertising but its still a cut throat industry!

I have also been in the bar industry and its completly different. people goe to several pubs/bars on a night out but you will have to be the best to attract clients from other salons and stay at the top of your game to keep them!

People dont just see a pretty salon and think i'll go there! Most clients are loyal to certain therapists.

Also I find it hard to see how salon owners with no experience can keep their staff up to date with training as well as having respect for you! I know of many girls whom have worked for people who just thought it would be glamorous to open a salon who had no prior experience and they left because they knew more than the owner and that all the owners cared about were profits.

And yes the mintel report may say that the beauty industry sector is growing but this is so general and covers make up and beauty product sales mainly. The high street salon now has to compete with clients who want to take on their own treatments to save money, such as DIY microdermabrasion, Laser Hair Removal and spray tanning! The cosmetic industry are now able to offer what salons can offer in a pot for 5 x's less than the salon cost!

So whilst the industry is getting bigger, its mostly from the consumers buying stuff from boots! An example is teeth whitening, a treatment costs £100-£400 in a salon but now crest have created teeth strips for £10. A pack of these give you whiter teeth than tom cruise and I know I have had both done. I got far better results from the strips than the professional treatment.

I find most people that go to salons are those who want to relax and have the disposable income and in the past couple of years with money getting harder to come by fewer people are spending!

You only have to read these forums to see just how many people struggle getting clients and they all come from various backgrounds, from being newly trained, to being in the industry for years.

I too have heard of these government grants, they are a waste of time as there are so many clauses to be adhered too and if any are broken you have to pay back the entire grant immediatly! From what I am aware the maximum is 60% of the cost required to set up with the borrower having to fund the other 40%.

You also need to meet the people who will be authorising the grant and they can be ruthless especially the european union grants. They expect you to know everything in your industry. Thats why research, research and more research along with years of knowledge of how your industry works is advisable!

Other factors to consider is that many people whom get consultants to put their case forward LOSE! The grant givers often want you to put your case forward and not some third party. Also the grants are liable to tax! There are over 3000 different schemes out there that offer business grants and most business' are eligible to apply and recieve several grants to help their business.

I was offered two grants, but you have to weigh up the pros and cons! They watch your every move to see if your putting in 110%. Any F(&% ups they demand the entire grant back straight away! You also have to meet the grant with your own money too, to show commitment.

I ended up opening my salon off credit cards and a secured loan, and repaid them with the profits as even with the best business advisor or accountant mistakes can still be made! And i only ever answered to me!

I am not saying dont ever apply for them, as they have plus sides too. But I would never go for £100K worth as the restrictions could end up with you being left high, dry and homeless!

 

[nail_star2003]

Wow! I know this thread is a bit old now but I will share my thoughts with you! I came across this thread as I was doing a bit of my own research re opening a salon and up this thread popped!! I have read every post from every poster on every page so here are MY thoughts:

Kalaa, when I read the first post my initial reaction was "Who the hell does she think she is!". The reason for this is, as many of the girls have said, you are stepping on ground where others have worked so hard for and spent lots of their own time and money for people like yourself who think that because they have a good 'business head' they do not need to do this and that they can bypass us mere 'therapists' and go straight in at the top because they have money.

Now, I too have a great 'business head'! I have run my own business for 8 years now and I started this at the age of 20 which is quite something for someone of that age. BUT, I built up my clientele AFTER doing some training AND I worked from HOME whilst I had a FULL-TIME JOB as a Senior Accounts Executive for a very large worldwide business travel agency! I worked two jobs for two years until I went on maternity leave and then I decided to make a go of the business full-time. I have worked this way for another 6 years which has had it's good times and bad. Sometimes I don't know how I can work any more hours because I have so many clients to deal with and there are others when I don't know how I'm going to pay my next bill!!

The reason I have now decided to LOOK INTO opening a salon (and with all my knowledge of the industry I haven't decided if it's the right decision yet) is because I am getting frustrated! I can't take on any more clients because I can't physically work any more hours but also because after 8 years of building my business up from scratch, I know feel I have enough knowledge about both the industry and the business side of things to at least give me a better % of succeeding.

You see the reason for this is that I kind of see opening a salon like a marriage and although I know it happens in some religions, the vast majority of people would not marry someone they know nothing about. For those that do, it can take an awful long time for the marriage to either succeed or separate. Either way, that stemmed from someone thinking it was 'a good idea'. So, I'm not saying that it can't work because it can - all we are saying is please trust us at some point to know that we DO have more knowledge of the day-to-day running of a business in the industry than you currently do as this has been built up by our years of training! You have the knowledge from a consumer's point of view but it does differ greatly from that when you're the other side of the desk!! This is not a put-down just merely a fact that you have said so yourself.

I am very interested to know how you have proceeded with this given the time elapse. I really do wish you well if you have decided to proceed. Maybe we could benefit from some of your experiences should you wish to share them with us.

Finally, please take the criticism constructively as this is really how it has been meant, I'm sure and I hope I have not offended you. I have put thought into the way I have typed this so that you would see I have tried to be objective. Good luck with whatever decision you come to.

 

[Hair2Beauty]

Hi,

I have a salon in an Enterprise Centre,its approx 450 square feet and it has been ideal to get me on my feet and has been a trial run at whether i have what it takes to run a business,ive been in the industry 10 years and found its ALOT of hard work,my head spins with everything even though my accountant is great. Thankfully it has worked out for me & im in the process of buying a shop now.
I would advise you to start small & work your way up,even if its just to earn respect of people (your co-workers especially).
Knowledge is definatly power in this business & its the secret of getting ahead.
Get your NVQ's at the very least!!

 

[luci106]

Hi there,

firstlyI am absolutly shocked about your accountant, would HE open a beauty salon, secondly beauty is a very very hard industry to crack, especially with no training and knowledge, I finished training in 1999 and only this jan i opened my own business and it has been very very hard let me tell you plus this is with 8 years experience, I am really really worried for you and for your venture you will find it very hard and you dont want a senior therapist to take advantage of you if she thinks that you know nothing of the business, just be careful please please please xxx:cry:

 

[Saya]

Setting up any first business is always new territory, even for those who have the theoretical training in the relevent industry.
The whole point in it is that we are doing this as a fresh challenge.
It is a big risk going from a secure employed income to being self-employed.
If you are in a fortunate position in your life where you can take that risk, then I say give it your best shot : )
Of course you shouldn't be foolish about it, i'm sure no one has money squander. Certainly, I wouldn't do something based on what one individual says. You're taking that risk, so you need to do your own due diligence to satisfy yourself that every aspect of the investment is protected.
i.e. What would you do if it all fails?; what would you do if it succeeds beyond what you can handle? etc.

Then if you are serious about wanting to get into, say opening a beauty salon, with no prior knowledge, then join the boat mate! : )

My biggest fear is the not knowing, so although I'm not going to train to become an actual therapist, I am preparing myself as much as possible for what the managing business will entail.
There is a lot of market research to do, business knowledge to gain, finding an HONEST accountant and a reliable solicitor, and not just letting them get on with it, but learning about what they're doing to. i.e. understanding taxes, company formation, VAT etc. (e.g. I've already fired 1 solicitor because I realised he was charging me £1500 for something that will take £25 for me to do myself)
Beauty knowledge: researching equipment and suppliers and keeping up to date with all the various treatments and services.

I haven't even opened yet, but I have been up till late quite obsessivly to get my prep in. PREPARATION IS KEY.
You have nothing to lose and everything to gain. It may even be the reason why you end up deciding not to proceed at all. Because it's the only way you will get that reality check.

It's been a huge learning curve for me and quite a life changing experience, but atleast I can say I gave it the go instead of saying 'I wanted to, but never even tried'.

and finally,

'A quitter never wins & a winner never quits' ; )

 

[Saya]

Oh and this type of post is my favourite kind, because we get so much input from those who have all enevitably been there.

Surely there is text/ e-book available on how to set up a beauty salon, if not, then bagsy 'I'll write one myself' !

New thread coming up, input appreciated.x

 

[loulou1212]

How sad to see so many jealous, bitchy women trying to tear each other down.

How sad, i think personally some of you could maybe realise your potential and become salon owners if you spent less time bitching on forums and more time learning business and marketing.

And just so you know carly headtotoe......the beauty industry does have temps.....I hire them all the time.

 

[Zingara]

How sad to see so many jealous, bitchy women trying to tear each other down.

How sad, i think personally some of you could maybe realise your potential and become salon owners if you spent less time bitching on forums and more time learning business and marketing.

And just so you know carly headtotoe......the beauty industry does have temps.....I hire them all the time.

How sad to see thats someone's first post on here is one of little more than name-calling.

Whilst I've not posted previously on this subject (I think - its an old thread) I think its a great thread as we have a world of differing opinions here....something that makes this forum the special place it is. Thats the forum by the way that gave me the support and confidence to start my own very successful business.

Welcome to salongeek. I hope its a positive place for you :hug: