What is a beauty salon?
A beauty salon is a commercial establishment that offers cosmetic treatments aimed at the wellbeing and wellbeing of men and women, both for their day to day and for special events, such as parades, parties and weddings, for example.
A beauty salon can offer various services such as hairdressing, makeup, aesthetic skin treatments, manicure, pedicure, hair removal, massage and many others. But they can also choose to specialize in just a specific area such as eyebrow design, for example. Some establishments still sell related products such as articles for hair, beard, skin etc.
Advantages and disadvantages
The biggest advantage of opening a beauty salon is that it is a business that never loses the interest of its customers. Spinning billions of dollars around the world, this industry remains operative even in times of crisis, as people do not neglect their appearance unless they are in serious financial trouble.
In addition, it is a career whose success and growth is based heavily on the quality of service provided. That is, usually, if you offer a good service, fair price, using a good line of products, your business tends to work. This means that you are primarily responsible for driving your venture. If you dedicate yourself, it will work.
The disadvantages are mainly about the workload, especially in the beginning, when you will probably have a small team - and maybe even yourself! Some halls open from Monday to Saturday and most of them do not have time to start or end the expedition, stretching or advancing their attendance according to the need of the clients.
Moreover, any of the professions related to a salon require constant improvement and updating, so you will need to keep studying, participating in courses and congresses, to enable the latest technologies to your audience, in order not to lose space for competition.
Speaking of competition, this is one of the challenges of this market, since it is the second fastest growing industry in Brazil. When opening a beauty salon, you need to determine very well who your target audience will be and choose your point according to these people. This targeting will allow you to reduce competition. Over time, you will be able to meet the needs of your customers and meet your expectations promptly.
The other challenges are to have a team of qualified professionals and good suppliers of quality products, since the success of your venture is completely linked to the satisfaction of your customers. A very common mistake is to focus first on the infrastructure and equipment of the salon and overlook the choice of workforce. However, it will not do you any good to have state-of-the-art instruments if you do not have people able to guarantee a high standard service.
The same goes for the products that you will use in your establishment. Look for articles that meet you not only in the "price" category, but also in quality, delivery time and terms of payment. For this, you will need to seek knowledge about brands and raw material in order to ensure the best cost-benefit for your salon.
Estimated Initial Capital
Of course, the initial investment of your venture depends greatly on the size of the salon, as well as the type and variety of services offered. However, in one form or another, you will need to calculate the fixed investment (purchase or remodeling of real estate, furniture, equipment and utensils etc.), pre-operational costs (market research, registrations and licenses, projects, service providers etc.), plus working capital (all the monthly expenses you will have to pay until the salon begins to make a profit, such as rent, products, taxes, salaries, etc.).
Sebrae estimates that it will take around 80 1,000 reais to open a full salon. However, this amount can vary considerably depending on the amount of equipment and products you will have to dispose of, the amount of services and human resources needed to run them, and the geographic region where the facility will be installed.
How to open a beauty salon (step by step)
Certainly the first step in setting up a beauty salon will be to determine the type of salon and the variety of services included. You need to define, for example, whether the establishment is targeted at a segmented audience or not (male, female, child or all). You will also have to choose whether the salon will be specialized or offer a wide range of services. And still decide whether there will be commercialization of products or not.
Having answered all these questions, you will be able to choose a suitable location that meets the space required for all operations and that is in accordance with the intended audience, and also check the purchase of essential equipment and articles to structure this space.
The main suppliers of a beauty salon are the manufacturers and distributors of the products and equipment that you will use in the services provided. The basic raw material of the establishment includes cosmetics, shampoos, conditioners, hair creams and masks, enamels, wax, makeup, tinctures and other coloring articles, moisturizing and / or cleaning creams, scissors, and numerous other tools and products.
The management of your stock is that it will be preponderant for you to organize the supply of your raw material. Ideally, you can balance your inventory according to demand, maintaining a healthy turnaround that allows you to serve customers through a minimum storage that does not impact your working capital.
This minimum stock is calculated by observing the delivery period and duration of the products, and must include both the articles used to provide the services on site and the goods sold to customers, such as treatment creams, fixatives, makeup, etc.
As for the chosen suppliers, we repeat that the quality of the raw material is fundamental to the success of your business. There are a number of brands and models on the market. Try some and separate at least three vendors who are able to serve you according to the type of product you need, as well as delivery times and frequency.
And do not forget to ask the feedback of the customers as to the satisfaction with the products, and to observe what the competition has offered different.
How to Open a Company
If you want your store to receive the money and issue invoices, you must open your business legally. You can also read one step by step about opening a business. Here we will take advantage of the following main points:
- Creation of the Social Contract
- Registration at the Board of Trade
- Issuance of CNPJ and Choice of Activity
- Municipal and State Registration
- Operating Permits
Special Tips for New Businesses
Starting a new business is not only putting products on sale. As demonstrated, opening a virtual store is easy, simple and inexpensive. Precisely because of this, there are hundreds of thousands of stores and people trying to make money that way. However, only those who look at their stores as a complete business will be able to survive and profit. So, I will list below some special tips for those who really want to undertake.
1) Define a SPECIFIC Customer Segment
There is no successful business that has not well defined your area of expertise and your target customer. This is even more true and important on the internet. Unlike a street store, you will have to fight for customers to enter your store and you will have to spend money on it. Do not fall into the error of speaking "Everyone is my clients", because this is the beginning of the end.
For example, if you are going to build a t-shirt shop, make a store for someone specific, they may be elderly, soccer players, people who like to collar V. Anyway, there is no right answer, the market will respond positively or not. Immerse yourself in this theme by reading our post market segmentation.
2) Create a Differentiation (Specialty)
In a commoditized market, you're going to have trouble selling generic products, and especially those that big players already have. By defining a specific segment, you'll be able to tweak your value offer by delivering something unique and memorable. For this, I recommend that you draw your Business model and also make your value curve!
3) Calculate the Expected Return on your Business
"Whoever does not make the bill pays the bill." This is a maxim in the business world. Without estimating your desired return and what potential your online store can bring, you will be adrift. For this you will need price your products very well and make a economic feasibility study of your project.
Beauty Salon Spreadsheets
- Economic Feasibility Study Sheet: for you to evaluate the potential return of your business. You will include information such as start-up capital and expenses to decide how much to open your salon.
- Service Price Formation Worksheet: Sometimes it is very complicated to determine the prices of each service offered. But this worksheet makes the task a lot easier by allowing you to calculate all the costs involved, analyze the competition, and find the balance for your business.
- Supplier Evaluation Worksheet: One of the factors of success for your business will be the choice of your suppliers, as we mentioned above. This worksheet will simplify this decision by recording all the essential criteria for that resolution.
- Business Plan Sheet: this is the fundamental spreadsheet for anyone setting up a new venture. You include strategic plan, marketing plan, financial analysis and feasibility all in one place with automated reporting.
- Financial Management Worksheet: presents how your finances are and what the forecast is for the future of your company. Very simple and intuitive, just feed the data essential to receive accurate graphs about your financial situation.