Establishing a Beauty Salon in Honolulu depends on more than knowing how to wield a pair of scissors and being a master of small talk. As with any business, one must understand the basic fundamentals of operating a business. For a beauty salon, some of these include the following:
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Start-up Costs -; A small beauty salon can do an excellent business with half-a-dozen chairs and a stylist for each. The minimum space needed for six chairs is about 1,000 square feet. If you are fortunate enough to occupy a former salon you can avoid the cost of beginning from scratch saving about $75,000 – $125,000, depending on costs per square foot. Bear in mind that to be fully functional will take an average of six to nine months.
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Recurring Costs -; The greatest expense is personnel. Stylists are typically compensated by commission or by booth rental. Commissioned-based personnel earn a percentage of what they bring in, generally between 30 and 60 percent. With the booth rental option, stylists pay the shop owner a predetermined amount weekly to “rent” the chair. An advantage for the stylist is that they don’t wait to wait for biweekly checks.
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Permits -; One should first be established as either an LLC (limited liability company) or as a corporation before obtaining a federal tax ID number so that you can pay the proper taxes. Next is scheduling an appointment with the state’s department of cosmetology to obtain the permit. Typical permits fees range from $100 up to $2,000, depending on the length of time the license is valid for. The applying Beauty Salon in Honolulu needs to pass all sanitation, fire, and electrical inspections.
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Choosing a Supplier -; Items like chairs, washing and drying stations, and mirrors, are sold by a few major suppliers. To find them you could look here online and browse through the suppliers. A steady supply of all things necessary for hair care will also necessary. Options are to buy directly from the manufacturer or through a distributor. Many will scramble for your business which gives shop owners a chance to negotiate for agreeable terms.
Every business needs a plan to be successful. Determine how you’re going to start the business and keep it running. Make sure it includes economic information such as cash-flow analysis and a profit-loss statement. Having a solid business plan is often required when applying for a loan to help start your business.
