Here are some of the most common beauty salons to consider

  

You have invested years of training, established reliable and loyal customers, and developed a foolproof business plan. Now, you are ready to open your own independent beauty salon. But like any shrewd business owner, if you want to ensure business success, you must understand the daily ex

You have invested years of training, established reliable and loyal customers, and developed a foolproof business plan. Now, you are ready to open your own independent beauty salon. But like any shrewd business owner, if you want to ensure business success, you must understand the daily expenses of running a beauty salon.

Here are some of the most common beauty salons to consider.

1. Rent

Paying for space to run your beauty salon will be one of your most important monthly expenses. In addition, you need to consider that your space may be renovated. For example, it may require a new floor or appropriate piping. The rent range is large, depending on the space you want. Rent a salon booth of about 100 square feet, starting at $400. The cost of an ordinary salon is $1500 to $4000 a month.

2. Equipment

With the right equipment, your salon should run smoothly. You can choose to purchase or rent equipment in advance. You can buy second-hand equipment from other beauty salon owners to reduce the cost of equipment. However, most people find that renting new equipment is a better choice.

3. Permits and licenses

Do your due diligence before your salon opens. Each state requires different licenses and permits. If you fail to get the proper permission, you may pay a huge fee. At the very least, you should have a business and beauty license. However, if you plan to increase services such as facial care or nail care, you also need a corresponding health license. If you plan to sell products in your salon, you can also consider obtaining a resale license. The license is renewed annually or every two years. The average cost of a business license is $50 to $100 per year.

4. Supply

Speaking of beauty, it is necessary to keep up with the latest trends. There are various colors of dyes, modeling products and miscellaneous items in the inventory, which can make you adapt to the changes of customers at the last moment. Unfortunately, beauty products are not cheap - they cost $2000 to $15000 anywhere.

5. Insurance

What if there is a fire? Or what if the client injures himself in your house? In this case, you can't give up rental insurance. The lessee's insurance will help to reduce the cost of any accident, such as property damage caused by natural disasters or medical expenses caused by accidents. The price of insurance depends on the number of policies and coverage you choose. When you consider how much insurance you need, consider the total value of your property and any litigation that may occur in your salon. The annual insurance premium for beauty salons ranges from $450 to $2200.

6. Wages

If you plan to have several stylists, the salary will be a big expense in your operating budget. In addition to paying wages, taxes and benefits, the actual cost of employees is usually 1.25 times the basic salary. According to a JPMorgan study, 62% of business owners have difficulty paying wages on time. Therefore, if you can't keep paying, you may lose the best stylist. Nearly half of Americans said they would start looking for a new job if their salary was delayed twice.

7. Utility companies

Opening a beauty salon requires electricity, water and gas. Large beauty salons often incur more expenses because of energy consumption. If your salon is equipped with luxury lighting or TV to please customers, your bill will also increase. Sharon's utilities range from hundreds to thousands of dollars.

8. Credit card service charge

Most people use their debit or credit card payment services, which can eat a considerable part of your profits. Whenever a customer decides to pay with their credit card, you are responsible for paying processing and transaction costs. The fee for each transaction ranges from 1.5% to 2.7% just by paying the handling fee. For example, if you charge $50 for a haircut and your credit card processor accuses you of 2.7%, you will pay a handling fee of $1.35. Although it didn't seem like a lot of money at first, it did add up over time.

9. Marketing

As a salon owner, you have the responsibility to bring new customers. Even if you have loyal customers, you also need more word-of-mouth to attract customers. That's why creating marketing campaigns is an effective way to get new customers. However, frequent marketing of your business can be expensive. While social media and email marketing can generate business opportunities at the lowest cost, Facebook's advertising campaign can cost you hundreds of dollars.

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tomlee01

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