Are You Looking For A Career That Is Full Of Excitement?
If you like the ever-changing atmosphere of the beauty industry, owning a salon could be a great career fit for you! Bringing in $63 billion* annually, the hair salon industry is the highest grossing sector within the $500+ billion beauty industry.
Fashion and beauty trends are always changing, keeping the market fresh. As one of the most resilient markets around, beauty products are always a top market item. Hair care remains in high demand within the industry because it has proven to be recession resilient - people always need haircuts, even if they have to skip on the pricier services. And in a booming economy, hair salon businesses do exceedingly well by offering multiple services like colors, perms, styling, and treatments.
From balayage and highlighting to organic products and deep conditioning, there are always new trends on demand to keep business flowing and salon owners turning a healthy profit. Owning a salon is a great way to take advantage of this thriving business and makes for an exciting career!
*Numbers obtained from our 2022 FDD
A Salon Business Opportunity Capitalizes On These Positives Within Beauty The Industry:
- Revenue in Beauty and Personal Care in the US reached over $82 billion* in 2020.
- By 2023, market value is expected to top $90 billion*.
- This industry is expected to grow at a CAGR rate of 4.06% from 2021-2025.
- Over a lifetime, people spend about $55,000 on hair and grooming.
Hair Care: A Stable Industry
As part of a lucrative market that sees growth year-over-year, salon and haircare services are always needed. Job security is easy to come by when you’re able to offer an indispensable service that is essential to consumers. Industries that do especially well in this regard are health care, food and grocery, transportation and personal care.
Within the beauty industry, salons rank right up there with the strongest businesses because they offer an essential service most people aren’t qualified or able to do for themselves.
Affordable self-care often becomes even more important during economic crises. A little TLC can boost morale and give people a familiar ritual to turn to for comfort. For that reason, low-cost salons often see a steadier flow of traffic than high-end salons when times are tough.
Beauty salons are uniquely human oriented, meaning they can’t be overtaken by technology or automation like many other businesses can. That alone protects them from becoming obsolete.
Salons have survived periods of economic downturn and even experienced growth during times of recession. Hair continues to require maintenance and people still want to feel good about how they look, no matter how bad things get.
While no industry is ever immune to setbacks, salons have proven to be historically stable. Salons that are able to adapt to new developments within the beauty industry are best equipped to handle fluctuations within the economy. For example, online booking of appointments is now a must for patrons, so salons must implement that option to remain relevant in this market.
Should You Open Your Own Salon Or Franchise?
The Power Of Entrepreneurship
Traditional employees are limited in their professional growth, earning potential, and schedule. When you work for a corporation, you are unfortunately just another cog in an economic machine. It can be next to impossible to break away from the daily grind in order to find flexibility, a higher salary, and growth potential.
Entrepreneurship, on the other hand, is the oil that keeps the economic machine running smoothly. When entrepreneurs launch a business with fresh ideas and a drive to succeed, they keep the economy going in areas that may have become stagnant. They also have more freedom and flexibility than a traditional employee slogging away in corporate America. For an entrepreneur, the sky's the limit when it comes to earnings, future growth, and scalability.
Starting Up Your Own Salon
Opening a salon you can be proud of is a tempting possibility for entrepreneurs with an eye for opportunity. If you’re looking to operate your own salon independently, it can be done. However, there are many associated risks in doing so. The time it takes to develop your brand, establish a solid customer base and launch an effective marketing program will likely be some of your leanest months that are often touch-and-go. There’s also the risk of running into accounting issues and only seeing a weak ROI during those first high-stress years.
Yes, it can be done. But it’s important to calculate the risks and have a solid business strategy in place before taking that leap.
Financing Your New Business
Once you’ve made up your mind to start up a salon, there’s also the question of financing your endeavor. When you add the expenses of opening a hair salon to the recurring costs of monthly management, the numbers multiply quickly.
If you’d like to invest in your own hair salon, there are a few start-up costs you can expect to budget for. From the get-go, you’ve got business licenses and sales permits to line up, the location to arrange for, and salon equipment and initial inventory to acquire. Don’t forget the consulting fees and insurance costs, as well as the sales and marketing software packages needed to help drive traffic through your doors.
Ongoing costs have to be factored in as well, which includes employee wages, taxes, utilities, processing fees, repairs and maintenance expenses. By the time it’s all said and done, you may have easily sunk $250,000 into this venture and still, the work has only begun.
Have You Considered Franchising?
By comparison, if you were to choose to franchise, you’d be buying into an established brand within the hair business. Not only that, but you’d become part of a tight-knit community of Franchise Owners and corporate members who would be there for you, cheering you on and offering support along the way. You’d see a strong ROI come through far more quickly without having to ramp up your business the slow way, and would have access to a proven marketing platform.
The other advantage is, a hair salon franchise can be opened even without any experience in the industry. You’re not even required to have any experience in franchising. A background in management is helpful however, as is the desire to provide excellent team leadership and stellar customer service. Add to that a willingness to build a trusted brand within your community and you’ve got all it takes to be an exemplary Franchise Owner within the hair salon industry.
Just imagine being the mastermind behind-the-scenes, making sure everything operates smoothly and customer satisfaction is high. With the right management skills, business acumen and a desire to succeed as a salon operator, you’ll be sure to find success in the industry.