Remember you can smart small, Ruane says: Just because your space has room for eight workstations doesn’t mean you have to put them all in now.
Jarman works with Sebastian, which has sent her to various business academies for salon professionals.
But, she adds, “make sure they support you in your business and continue to be an ally to push you to the next level.” A shocking number of potential salon owners launch without a business plan, says Kevin Ruane, president and CEO of Castleton Capital.
“You can always pay debt down, but you can’t have $20,000 magically appear if you didn’t forecast and plan properly,” Ruane says.
He recommends creating a plan under the guidance of an accountant and attorney.
To do this, many or all of the products featured here are from our partners. Few salon owners reach celebrity status and command such rates, but the nation’s 1 million-plus salons and spas do enjoy annual sales of $46 billion, according to the Bureau of Labor Statistics.
Without proper financial and legal planning, however, even the trendiest shops can crash and burn.Jarman says that’s ideal if you’re teaming up with a few friends to run a small operation.But if you want to grow your salon, Jarman advises, do commission.His company owns Quest Resources, which specializes in equipment financing for salons.“Your success will be predicated on the fact that you come with a plan,” he says.Seek strong business partners, whether it’s an investor or simply a strong mentor group, Fantetti says.“The most successful salons are those that have somebody who focuses on the day-to-day business,” she says, “and then another person who focuses more on the creative end of it.” Consider partnering with a product company or line.Will you operate on commission or chair-rental model?With chair rentals, stylists are independent contractors who carry their own insurance.Jarman scored such a great deal, she didn’t need outside financing.She rebranded it with a memorable name, Hairroin, and her shop became a major success.