{"id":26688,"date":"2018-02-08T08:45:09","date_gmt":"2018-02-08T07:45:09","guid":{"rendered":"https:\/\/phorest-ob-staging.com\/?p=26688"},"modified":"2022-06-14T14:16:22","modified_gmt":"2022-06-14T14:16:22","slug":"opening-a-salon","status":"publish","type":"post","link":"https:\/\/www.phorest.com\/au\/blog\/opening-a-salon\/","title":{"rendered":"The True Costs Of Opening A Salon That Will Thrive"},"content":{"rendered":"<p class=\"p1\"><span class=\"s1\">Opening a salon is exciting &#8211; <em>especially if it&#8217;s your first<\/em> &#8211; but it\u2019s important to get it right from the very start. I\u2019ve seen too many salons open up and be out of business within six months to a year because they hadn\u2019t thought it through. It\u2019s not enough to tell the world the good news by hosting a launch night and expect clients to come flocking through your door after that.<\/span><\/p>\n<p><!--more--><\/p>\n<p class=\"p1\"><span class=\"s1\">Chances are you may already have a loyal following that you\u2019ve built up elsewhere. If you\u2019re mobile, you may find many don\u2019t follow you to your salon as they might have different expectations or perhaps enjoy the convenience of home visits.<\/span><\/p>\n<p><strong>Listen to the audio version of this blog, and\u00a0<a href=\"https:\/\/itunes.apple.com\/ca\/podcast\/the-phorest-blog\/id1182467915?mt=2\" target=\"_blank\" rel=\"noopener noreferrer\">subscribe to the Phorest Blog Podcast here<\/a>:<\/strong><\/p>\n<p><iframe title=\"Spotify Embed: The True Costs of Opening a Salon That Will Thrive\" style=\"border-radius: 12px\" width=\"100%\" height=\"152\" frameborder=\"0\" allowfullscreen allow=\"autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture\" loading=\"lazy\" src=\"https:\/\/open.spotify.com\/embed\/episode\/2qfOPZ8B3fO4sego1kce5K?si=8egNmvIHQrqIPRGDGAsDvw&#038;utm_source=oembed\"><\/iframe><\/p>\n<h2>Opening A Salon Or Spa Is About Knowing Your Numbers<\/h2>\n<p class=\"p1\"><span class=\"s1\">You may find thinking about your numbers a bit boring, but they are fundamental to the survival and success of your business. Here are the essentials you need to think of when opening a salon.<\/span><\/p>\n<h3>Determine Your Break-Even Figure<\/h3>\n<p>How much will it cost for the salon to run weekly or monthly? To calculate this, list<span class=\"s1\"> your outgoings:<\/span><\/p>\n<ul>\n<li><span class=\"s1\">rent<\/span><\/li>\n<li><span class=\"s1\">business rates<\/span><\/li>\n<li><span class=\"s1\">heat\/light<\/span><\/li>\n<li><span class=\"s1\">product costs<\/span><\/li>\n<li><span class=\"s1\">staff costs<\/span><\/li>\n<li><span class=\"s1\">insurance<\/span><\/li>\n<li><span class=\"s1\">the wage you need to live on<\/span><\/li>\n<li><span class=\"s1\">loan repayments<\/span><\/li>\n<li><span class=\"s1\">accountancy fees<\/span><\/li>\n<li><span class=\"s1\">bank charges<\/span><\/li>\n<li><span class=\"s1\">refreshments<\/span><\/li>\n<li><span class=\"s1\">cleaning, etc<\/span><\/li>\n<\/ul>\n<p><span class=\"s1\">Then, divide the resulting figure by your average service cost. For example, if you determine that your salon&#8217;s outgoings are going to be \u20ac\/\u00a3\/$1,500 per month and your average service is charged at \u20ac\/\u00a3\/$20, then \u20ac\/\u00a3\/$1,500 divided by \u20ac\/\u00a3\/$20 = 75 services\/clients per month, which is just to cover your basic costs. That\u2019s your target, right from the start.<\/span><\/p>\n<h3>Make Sure You Have Money To Cover Contingencies<\/h3>\n<p><span class=\"s1\">Until you have built a steady client base, make sure you have enough money to refurbish and cover cash going towards your basic outgoings. Many salons go out of business because they expect to be busy from day one and haven&#8217;t prepared for any contingencies. Make sure you have this money to use if you come to need it.<\/span><\/p>\n<h3>Current Clients<\/h3>\n<p><span class=\"s1\">How many current clients do you have? Will they all follow you? Perhaps not; so how many will? And how much is that worth to you with the prices you\u2019re charging in your salon? Determining this will gives you a rough base income to work with.<\/span><\/p>\n<h3>Think About New Client Retention<\/h3>\n<p><span class=\"s1\">What percentage of new clients do you aim to turn into regular clients? And be realistic; you can&#8217;t expect 100%. Initially though, aim for 50-75%. By working this out, you can put together expected sales for your first year. For example, if you have:<\/span><\/p>\n<ul>\n<li><span class=\"s1\">30 new clients coming to the salon each month, and<\/span><\/li>\n<li><span class=\"s1\">50% of them become regulars who come back every 2 months <em>(this is just to make it easier to follow, you would expect 4-6 weeks)<\/em><\/span><\/li>\n<\/ul>\n<p><span class=\"s1\">Then by the end of Month 1, you&#8217;d have 30 clients, Month 2, 30 clients, Month 3, 45 clients, Month 4, 45 clients and Month 5, 60 clients. It would be Month 7 before you have 75 clients. Increasing your retention to 75% would see you with 75 clients by Month 5 of opening your salon; aka,\u00a0<em>two months<\/em> earlier!<\/span><\/p>\n<blockquote><p>Related | <a href=\"https:\/\/www.phorest.com\/au\/blog\/expanding-second-location\/\" rel=\"noopener\">Expanding With A Second Location: Is Your Salon Truly Ready?<\/a><\/p><\/blockquote>\n<h3>Hire An Accountant<\/h3>\n<p><span class=\"s1\">Get yourself a good accountant who can help you plan and grow your business. An accountant who works with you and understands your business will help you avoid costly mistakes and save you money in tax and VAT. They can also ensure you have a rough idea how much tax you can expect to pay. Also, make sure they understand how to treat gift vouchers &#8211;\u00a0<em>I\u2019ll cover this next month<\/em>.<\/span><\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.podbean.com\/media\/player\/tfxbf-6fee32&amp;?from=site&amp;skin=1&amp;fonts=Helvetica&amp;auto=0&amp;download=0&amp;share=1&amp;btn-skin=111\" width=\"100%\" height=\"100\" frameborder=\"0\" scrolling=\"no\" data-name=\"pb-iframe-player\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<h2 class=\"p1\"><span class=\"s1\">Other Practical Business Things To Consider<\/span><\/h2>\n<ol>\n<li><span class=\"s1\">If you have any current clients, ask them what they think of you opening a salon in <em>xyz<\/em>\u00a0location that you chose. Would they be likely to follow you?<\/span><\/li>\n<li><span class=\"s1\">Speaking of which, think about the location of your business long and hard. If you don\u2019t have much footfall, then don\u2019t expect many walk-ins. If you\u2019re too far off the beaten track and there\u2019s no parking, you&#8217;ll have to work harder to build your client base. Is it a rundown area? If so, it might be harder to attract quality clients.<\/span><\/li>\n<li><span class=\"s1\">Get your price right, charge what you&#8217;re worth. If you\u2019re too cheap, you will struggle to make enough money to cover your basics and grow your business. Remember: you need to have cash in the bank for taxes, repairs contingencies, etc. Also, if you don&#8217;t charge the right price, you could also be sending the wrong message to potential and existing clients about the quality of your service. In this industry, people generally believe that\u00a0<em>\u201cyou get what you pay for.\u201d<\/em><\/span><\/li>\n<\/ol>\n<p class=\"p2\"><span class=\"s1\">One last thing: if you&#8217;re looking into hiring staff, the group of individuals you hire needs to work as a cohesive, motivated, enthusiastic team. One of the best ways, besides training, to guarantee your salon\u2019s success is to hire the right people.\u00a0<strong><a href=\"https:\/\/www.phorest.com\/au\/blog\/salon-interview-tips\/\" rel=\"noopener\">Download Phorest Salon Software&#8217;s interview checklist reminder to help you do so.<\/a><\/strong><\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Have a look at <a href=\"https:\/\/www.phorest.com\/au\/blog\/new-salon-look-established\/\" target=\"_blank\" rel=\"noopener noreferrer\">5 ways you can make your salon feel established<\/a> before the big launch night<\/span><span class=\"s1\">,<\/span> <span class=\"s1\">and if you\u2019d like more business and finance tips then<\/span><strong><span class=\"s1\"> <a href=\"https:\/\/www.facebook.com\/groups\/GMkyn\/\" rel=\"noopener\">join my Facebook group Knowing Your Numbers<\/a>.<\/span><\/strong><\/p>\n<p>Thanks for reading! #LetsGrow<\/p>\n<p>\u2013<\/p>\n<p>If you would like to get more business tips from Gloria, you can get a free copy of her printed business magazine by sending an email to <a href=\"mailto:mag@murrayassoc.co.uk\" rel=\"noopener\">mag@murrayassoc.co.uk<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Opening a salon is exciting &#8211; especially if it&#8217;s your first &#8211; but it\u2019s important to get it right from the very start. I\u2019ve seen too many salons open up and be out of business within six months to a year because they hadn\u2019t thought it through. It\u2019s not enough to tell the world the &hellip; <a href=\"https:\/\/www.phorest.com\/au\/blog\/opening-a-salon\/\">Continued<\/a><\/p>\n","protected":false},"author":40005,"featured_media":26745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5607],"tags":[6117,6030,6112,5934,5982,5659,6118,5984,5446,6119],"class_list":["post-26688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-accountant-au","tag-business-au","tag-figures-au","tag-finance-au","tag-gloria-murray-au","tag-know-your-costs-au","tag-know-your-numbers-au","tag-opening-a-salon-au","tag-salon-success-au","tag-tips-and-tricks-2-au"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The True Costs Of Opening A Salon That Will Thrive | Phorest<\/title>\n<meta name=\"description\" content=\"You may find thinking about numbers a bit boring, but if you&#039;re planning on opening a salon, they are fundamental to your survival and success. 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It\u2019s not enough to tell the world the good news.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.phorest.com\/au\/blog\/opening-a-salon\/\" \/>\n<meta property=\"og:site_name\" content=\"Phorest\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/phorestsalonsoftware\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/groups\/GMkyn\" \/>\n<meta property=\"article:published_time\" content=\"2018-02-08T07:45:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-14T14:16:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d2dfxqxblmblx4.cloudfront.net\/wp-content\/uploads\/2018\/02\/07030128\/OpeningASalon_1200x940_NewDimensions_v2-150x150.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1153\" \/>\n\t<meta property=\"og:image:height\" content=\"442\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gloria Murray\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/d2dfxqxblmblx4.cloudfront.net\/wp-content\/uploads\/2018\/02\/07030128\/OpeningASalon_1200x940_NewDimensions_v2-150x150.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@GloM62\" \/>\n<meta name=\"twitter:site\" content=\"@thephorestword\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gloria Murray\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.phorest.com\/au\/blog\/opening-a-salon\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.phorest.com\/au\/blog\/opening-a-salon\/\"},\"author\":{\"name\":\"Gloria Murray\",\"@id\":\"https:\/\/www.phorest.com\/au\/#\/schema\/person\/28d924500da88726de43660670095fd3\"},\"headline\":\"The True Costs Of Opening A Salon That Will Thrive\",\"datePublished\":\"2018-02-08T07:45:09+00:00\",\"dateModified\":\"2022-06-14T14:16:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.phorest.com\/au\/blog\/opening-a-salon\/\"},\"wordCount\":953,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.phorest.com\/au\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.phorest.com\/au\/blog\/opening-a-salon\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/d2dfxqxblmblx4.cloudfront.net\/wp-content\/uploads\/2018\/02\/07030128\/OpeningASalon_1200x940_NewDimensions_v2.jpg\",\"keywords\":[\"accountant\",\"business\",\"figures\",\"finance\",\"gloria murray\",\"know your costs\",\"know your numbers\",\"opening a salon\",\"salon success\",\"tips and tricks\"],\"articleSection\":[\"Finance\"],\"inLanguage\":\"en-AU\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.phorest.com\/au\/blog\/opening-a-salon\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.phorest.com\/au\/blog\/opening-a-salon\/\",\"url\":\"https:\/\/www.phorest.com\/au\/blog\/opening-a-salon\/\",\"name\":\"The True Costs Of Opening A Salon That Will Thrive | Phorest\",\"isPartOf\":{\"@id\":\"https:\/\/www.phorest.com\/au\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.phorest.com\/au\/blog\/opening-a-salon\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.phorest.com\/au\/blog\/opening-a-salon\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/d2dfxqxblmblx4.cloudfront.net\/wp-content\/uploads\/2018\/02\/07030128\/OpeningASalon_1200x940_NewDimensions_v2.jpg\",\"datePublished\":\"2018-02-08T07:45:09+00:00\",\"dateModified\":\"2022-06-14T14:16:22+00:00\",\"description\":\"You may find thinking about numbers a bit boring, but if you're planning on opening a salon, they are fundamental to your survival and success. 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