How to Make a Salon Successful: A Comprehensive Guide for Aspiring Salon Owners

The UK hair and beauty industry is growing, offering significant opportunities for salon owners. Between March 2022 and March 2023, the number of hair and beauty businesses increased by 870 (2%).¹ With an annual turnover of £4.56 billion, the sector contributed £8.541bn to the UK economy in 2023, an increase of over £3bn since 2022.²

This is encouraging news if you're considering starting your own successful salon business. However, there are many factors to consider. Here’s a guide to how to make a salon successful and help you on your way to becoming a successful beauty salon manager.

1. Develop a Business Plan

As with any successful business, developing a comprehensive business plan is crucial. This is essential if you need to borrow money and a great way to track your progress. It helps salon owners set goals for the first year and beyond, which is key to salon management and ensuring you stay on track to achieve a successful business.

2. How Will Your Business Operate?

Before you begin, decide on the structure of your salon services. Will you work from home, set up a mobile business, rent a chair in a salon, or open your own beauty salon? Are you planning to be a sole trader or form a limited company? Each option presents its own set of challenges. For instance, salon owners working from home need to notify their mortgage provider, update home insurance, and possibly register with the local council. Salon managers should also consider setting up salon staff facilities to ensure the workspace is suitable for employees and salon clients.

3. Rules and Regulations

When managing a successful salon business, you must follow regulations that protect both salon employees and clients. Salon managers must ensure all electrical equipment is regularly checked.³ The salon owner should also be familiar with the Control of Substances Hazardous to Health regulations (COSHH), particularly when dealing with products like hair dye.⁴ As the head of the salon, it’s worth training to NVQ Level 4 or an equivalent if you're going to perform treatments.⁵ Furthermore, training is key for all salon staff, and it’s common for a successful beauty salon manager to expect their employees to hold at least NVQ level 2 qualifications.

4. Costs

Starting a successful salon business involves costs that vary widely, depending on the size and nature of your hair salon. Whether you are setting up a mobile business or renting a chair, you’ll need to budget for essentials such as scissors, styling products, and hairdryers. If you’re opening your own salon services, you’ll have to consider the cost of premises - whether you’re renting or buying - fitting out your salon, signage, equipment and stock. Initial costs to purchase basic equipment may range from £3,000 to £30,000 or more.⁶

5. Setting Your Prices

Pricing is a key element of salon management. When setting prices, it’s important to cover your costs while staying competitive. Research your competitors, evaluate your overheads, and ensure you provide value for money to your clients.

6. Salon Owners Insurance

Having the right insurance cover is essential when running a successful business. Especially in the hair and beauty industry, ensuring protection in the event of a compensation claim. Whether due to incomplete or unsatisfactory treatment or an accident involving your staff or customers on your premises.

Depending on the size of your beauty or hair salon and the number of employees, you may need various types of insurance, including public liability, employers liability - a legal requirement if you hire staff - and product liability. A business owner should consult with a specialist insurance broker to ensure their coverage meets their business needs.

7. Marketing

A creative marketing strategy is essential for attracting new clients and retaining existing clients. To make your salon services stand out, consider building a website, creating business cards, and utilising social media. Defining your target audience and budget will also help focus your marketing efforts. This can help to create a steady flow of new clients for your successful salon business.

Running a successful beauty salon takes dedication, careful planning, and effective management. By focusing on these key aspects, business owners can build a thriving salon.

Sources

1. nhbf.co.uk/about-the-nhbf/industry-statistics

2. hji.co.uk/hair-and-beauty-services-sector-contributed-ps85bn-to-the-uk-economy

3. pat.org.uk/the-importance-of-pat-testing-in-hair-salons

4. hse.gov.uk/coshh/hairdressing

5. startups.co.uk/beauty-salon-legislation-regulations-health-and-safety

6. zolmi.co.uk/salon-expenses­-uk