Ishrat's

It’s never too soon to start thinking about some of the operational issues that will impact and contribute to the success of your business. To begin with, you must consider your hours of operation carefully so you can accommodate the maximum number of clients during the business day.

Ishrat's

You undoubtedly already know the beauty business isn’t a 9-to-5 kind of industry. Typically, hair salons in metropolitan areas are open from 10 a.m. to 9 p.m. seven days a week and from 10 a.m. to 6 p.m. in smaller communities. By design, Sunday and holiday hours often are the same as those of local retailers like malls and department stores, and generally run from noon to 5 p.m. Lunch hours and early evening hours tend to be the busiest times for salons. You also may need to have hours to accommodate special needs. For example, if you do a lot of wedding work, you’ll probably have to be open earlier on Saturday mornings, say at 7 a.m., for brides who have to get to church for a 10 a.m. service.

Salon owners who manage their time in a way that enhances their money-making ability will find their business will grow and prosper faster. Focus with laser-like intensity on income-generating activities. As a new owner, you’ll be tempted to try to do it all yourself—from working behind the chair, to managing the books and overseeing your staff. Instead, hire skilled staff (both business and salon professionals) to handle the day-to-day work, then delegate responsibilities so you can devote yourself to tasks that can help you grow the business and make more money.

Another important part of your salon development plan is the appropriate pricing of your services. Set prices too high, and you’ll limit the number of people who can afford them; set them too low, and you’ll limit your profit potential and possibly put the business at risk.

Setting prices requires more than visiting other salons in your target market, collecting service menus, and pricing your own services so they’re competitive. Rather, you must consider the three factors that will influence your prices: labor and supplies, overhead, and profit.

1. Labor costs for salons/spas include salary and benefits costs for both your stylist/spa staff and administrative people. Your own salary is included as a part of this cost. This cost is generally expressed as a price per hour and can vary depending on the amount of time it takes your employees to cut hair or perform other services.

2. Overhead costs, which consist of all costs required to operate the business other than labor. This includes your mortgage or lease payment, utilities, and so on. It’s reasonable to estimate that your overhead will be from 40 to 50 percent of your labor and materials cost.