Your comprehensive guide for starting a hair salon business

Start from Scratch or Buy an Existing Hair Salon

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Designing, managing, and financially backing a hair salon from the ground up can be timely, expensive, and overwhelming, and it isn't always a good choice. For beauticians or entrepreneurs who want to start their own hair salon, but don't have the time and energy to start one from scratch, they should consider purchasing an existing hair salon. Purchasing an existing and starting a new hair salon each have their own unique advantages and disadvantages; however, either choice can become a worthwhile investment as long as they were well researched and analyzed in advance.

Starting a New Hair Salon

For entrepreneurs with limited time and energy, or for those with many other businesses, starting a hair salon from scratch may not be the best option available to you. However, if you won't have the time needed for your hair salon, you should reconsider opening one in the first place unless you have a great manager already hired. To determine if starting a hair salon from scratch is the right choice for you, consider the pros and cons of doing so before completely ruling out purchasing an existing hair salon.

  • Pros
    • Your hair salon is 100% your concept
    • You have the potential to provide a new product or service
    • Opportunity to improve upon an existing product or service
  • Cons
    • Writing a business plan
    • Large financial risks
    • More likely to have trouble securing funding
    • Large initial investment of time and energy
Purchasing an Existing Hair Salon
If a local hair salon has become available for purchase in your area, consider going to take a look. Don't immediately rule out purchasing an existing hair salon simply because it may not be the hair salon you always envisioned. Paint and remodels are always available down the road if you still desire your own concept's feel and flow. Buying an existing hair salon can provide many unexpected perks, but does have a few downfalls as well. They include:
  • Pros
    • Cash-flow could start immediately
    • Already available loyal customer base
    • Securing financing is generally easier
    • Proven products and business methods
  • Cons
    • You purchase the hair salon’s existing problems
    • Initial purchase cost is high
    • May not be able to cash in on receivables
    • Risk of conflicts with existing employees

Buying an existing hair salon may seem like the better option, however, buying an existing hair salon is just as big of a financial risk as starting one from scratch. Remember to research all aspects of your potential hair salon before buying one, and make sure to see all contacts, leases, financial statements, tax returns, and all organizational documents. So go ahead and inquire about that hair salon with the for sale sign in the window. You might be surprised by its potential.

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