9 steps to starting your own salon business.
#1. Create an LLC
One of the main purposes of an LLC is to provide liability protection for the members and managers. Unlike some other business structures, such as a sole proprietorship, an LLC structure protects the personal assets of the owners from business liability. Creating an LLC can cost on average $100-$350 depending on how you file. https://www.legalzoom.comwas how I started mine 10 years ago and from that I remember, it was quite simple. To learn more about what an LLC means
https://www.moneyunder30.com/should-you-form-an-llc
#2. Open a business bank account
“Don’t mix business with pleasure” is a saying for a reason. If you try to use your personal bank account for businesses use, it will create a headache when it comes to tax time. Keeping everything separate will allow you to keep track of your profit vs business expenses. If you are not good with money, I would suggest opening a second bank account that automatically withdraws money from your main business account to a separate savings account so you are ready to pay taxes when that time comes. Which leads me to my next point
#3. Find an accountant
Trust me when I say it’s worth the money. In the 10 years that I’ve owned a business I’ve gone through 3 different accountants. You will need to find one that feels right and that may take time. I’ve never been a numbers girl but maybe you are. Quickbooks can do your accounting for you if that’s your thing. I personally need someone else to check my number and have someone I can ask for advice. They will also be able to help decide on the best way to pay yourself and estimate your taxes for the next year.
#4. Get a credit card processing service
You will be needing a way to collect payments and since almost no one carries cash anymore, a credit card processing system is a must. Here are a few services to consider but do your own research and decide what’s best for you. Your bank will also have options for you
https://squareup.com/us/en/payments
https://www.clover.com/pos-systems/accept-payments
#5. Get insurance
Professional liability insurance- This insurance will cover any potential risk that comes with your profession. If, for example, a client who is cut or burned during styling seeks damages from you for a bodily injury or emotional distress claim, professional liability insurance will protect you. Collect some quotes but professional liability insurance is not expensive, often times less than a dollar a day. Here are a few to check out but also check with your home and car insurance company. They will sometimes give a bundle discount.
https://www.thesilverlining.com/ada/beauty-insurance
https://nacams.org/cosmetologists/
#6. Budget your first order of products needed
This will vary on whether you decide to join Salon Vie or go into a private room rental. Here at Salon Vie we take care of the towels, capes, scale, bowls, client gowns, beverages, magazines, decor and laundry. In private rooms you will need to purchase all this upfront which could cost you a few hundred dollars. You will just need to look at your book for the first 2 weeks of clients and purchase color needed, shampoo & conditioner and any chemical treatments you might offer. Depending on your book size you can spend less then $1,000 on your first order to start your own business!
#7. Select a Booking Software
A Point-Of-Sale system or booking software will keep your clients and schedule in order. Here at Salon Vie, myself and the two other girls all share https://www.vagaro.com/salonvie1/staff. Its $15 a month and we enjoy it. Vagaro has online booking, sends text reminders and confirmation, can generate gift cards and will keep track for any notes or formulas made on clients. There are several booking systems on the market and you might even find one that is integrated with your credit card processor. This is often helpful when taking a deposit for appointments. Here are a few to consider. Ps, I use to have MindBody and hated it, but that’s just my experience. Squareup is FREE and I’ve heard great things about it! But play and explore that works best for you
https://squareup.com/us/en/appointments
https://www.mindbodyonline.com
#8. Get a free google number
Since you will be handling all your own booking, giving out your personal number may not be the best option. Google provides a FREE phone number that goes directly to your personal phone. It’s a separate app that allows texts, calls and voice mail all free as long as you have a gmail account. Put your phone number on the internet and social media without giving away any personal information.
#9. Create social media
This may be obvious but many stylist lack in this department. Invest in yourself and start taking photos of your clients. This is your bread and butter. This is your hard work and its the best form of advertising other than word of mouth. Take advantage of our social platforms and let us help spread the word! Instagram.com/thesalonvie
