on Feb 6th, 2010Tips on Buying a Hair Salon – Hair Salon for Sale?
& beauty salons are businesses that are in a very high demand market. However there is a lot of competition in this industry.
If you learn how to set your business up right then competition will not be a problem for you.
Here are a few things to consider before starting your search:
1. Start Date
2. Income Goal
3. Start Up Capital
4. Franchise or Existing:
5. Location
6. Time Commitment
Start Date:
When do you plan to actually start your business? Many people think that they first have to find out all of the details first so that they can plan the start date around everything else. Well that may take a little longer by doing it that way. Do it like the pros do. Establish a date that is realistic in your mind, for example: I will start in 3 months on August 1st, 2008. Now that you have established a date then everything else will revolve around that date. Know your start date & write it down.
Income Goal:
How much do you want to make monthly or annually? This is a very important question to ask yourself because it will help match you up with the right business opportunity. It doesn’t matter if you don’t know how much you can make with a hair salon, beauty shop or any other type of business. Know how much you want to make & write it down.
Start Up Capital:
How much money do you have to start your business venture? It’s okay if you don’t have any idea of how much it may cost to start a business as long as you are able to find money when you need it. Most successful businessmen rarely ever start a business with their own money even if they have it sitting in their bank accounts. They use other people’s money like banks & credit unions.
Franchise or Existing:
Franchises are the best way to go because they have a good system in place that has been proven for years. Systems don’t fail, people do. The franchise will train you on everything that you will need to know about this business to become very successful. They cover every area that will need to be covered. However the start up costs is very high. Most franchises start from $250,000 & they may require you to have $100,000 liquid cash on hand before even looking at you. The $100,000 is for you to survive on during the first 6 months (the hardest time). That’s the main reason that the franchise model works so well.
If you are looking at an existing business then find out exactly why they are selling, for example: If they are selling due to illness or retirement then that’s okay but if they are selling due to lack of success then be very careful. Most businesses fail due to poor management skills.
Location:
This is very important because if you don’t have a good location then you may not get enough business. The thing about high traffic locations is that they generally cost more to get. You may make more money in a high traffic area but you will end up having a higher overhead than a low traffic area.
It is not impossible to still make a lot of money in a low traffic area as long as you advertise to let people know that you are there. Since you can save by being in a low traffic area you can spend a little more on perks for your customer like free coffee or newspapers or just better service. If you treat people well they will always come back to you for business. It’s all about customer service.
Time Commitment:
You will definitely have to put in the hours if you own your own business. Most business owners generally work 60 + hours per week. If you are passionate about owning your own business then the time factor will not be an issue for you. However if you are hesitant of working more than 40 hours per week then you may need to think about this a little more before going any further.
About the Author:
Rory Singh is a Business Development Coach and Professional Marketing Consultant. To learn how to Make More in One Month than Most Make in One Year visit:
http://www.networkopportunities.net
Our industry has created more Millionaires than any other Career throughout the US & Canada.
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