HOW TO START A ...

HAIRDRESSING BUSINESS

Look along any high street and you’re bound to spot a hairdressers. Viewed
as an essential part of many Brits’ grooming habits, hairdressing salons have
remained relatively resilient over recent years, in spite of the challenging economic
backdrop.
The 29,415 hairdressing and beauty salons in the UK rake in annual
revenues of £4bn, according to a report published by market research firm
IbisWorld in January. And while many other high-street sectors such as food,
coffee or fashion face strong competition from major corporations (think a local
newsagent competing against a Tesco or a coffee shop trying to hold its own near a
Starbucks), the hairdressing industry has no such dominant player, meaning it
naturally lends itself to independents.
The large number of hairdressers signals the relatively few barriers to entry
when it comes to opening a salon. Like most businesses, it’s worth putting together
a business plan, says Hilary Hall, chief executive of trade body National
Hairdressers’ Federation (NHF). “Most people have a good understanding of the
industry, but they struggle with the business and the finances. Business planning
and getting the finance in place are crucial.”
Potential owners should assess the costs of opening a salon, which tend to
range anywhere from £3,000 to £35,000 depending on how much the property
needs revamping. If possible, it may be more cost effective to take over an existing
hairdressers, which may still have facilities, than to rent or buy a property and
convert it. Costs such as hiring staff, rent, business rates, marketing and buying
products and equipment should also be taken into account.
Chloe Zumeris has been running House of Locks at Newington Green in
north London for the past two years after she paid the existing owner a goodwill
fee of £20,000. “I always knew I wanted to run my own business. I didn’t have a
written plan but I had in my head exactly what I wanted to do. I had to make it

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work as it was what I wanted to do.” She closed the salon for three weeks while
she rebranded the business, making it more stylish and contemporary.
She advises would-be salon owners to create a moodboard of how they’d
like their salon to look. “I was working with a lot of guys to help set up the
business and had difficulties trying to get across how I wanted the salon to look
visually. In the end I created a moodboard and showed them what I was after.”
To cut down on costs and to test the water, you could consider running a
mobile business or opening a salon in an existing shop.
Adhere to rules and regulations
In the UK you do not need to have any qualifications to practise as a
hairdresser or barber. Salon owners may wish to register with the Hair Council, a
statutory body set up by the Hairdressers (Registration) Act 1964. However, it is
voluntary and IbisWorld estimates that only 2% of hairdressers have signed up.
Another organisation they can join is the NHF, which offers members a slew
of news, events and information on the industry, as well as services such as free
employment contracts and chair-renting agreements. NHF says you will need
employers’ liability insurance and, as you and your staff will be working with
electrical equipment, it’s important to regularly check all portable equipment and
have electrical items serviced every two years by a professionally accredited
electrician.
If you’re going to include hair colouring on your menu, you’ll be tied to the
Control of Substances Hazardous to Health regulations. Allergy tests must also be
carried out on clients before proceeding with a colouring.
Stand out from the crowd
“Consider what niche you’re going to occupy,” advises Hall. “There’s so
much competition around, it’s good to have a point of difference.” With the trend
for male grooming, she cites barbers as a key growth area, as is offering hair
extensions. She adds that adding colour services is a “must for any salon”.

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 Setting the right price
David Rozman, who has run his hairdressers in Manchester for the past nine
years, based his prices on what his previous salon had been charging clients. He
advises those looking to set up a business to “work out their fixed costs, variable
costs, staff costs and how many customers you would need a week. Basically, look
at your overheads and work out what your break-even point would be.”
House of Locks’ prices range from around £30 for a men’s cut to about £95
for a full-head of highlights. “I did a lot of research before I opened,” says
Zumeris. “I checked what other salons were charging and I carried out customer
surveys.” On an average day, she says, the salon attracts around six clients, with
nine on “a good day”.
Location, location, location
Carefully consider what kind of location you’d like to open your salon in
and what kind of customers you wish to attract.
“Location is one of the most important things to consider,” says Zumeris,
whose salon sits opposite a relatively busy green in a fairly affluent part of
London. “It’s really got to be somewhere that suits you. I know a friend who is
looking to open a salon in the West End – that might suit them but this wouldn’t
suit me. Find somewhere that suits your personality. I love chatting with clients;
getting to know them. If you want people coming in and out quickly then you
might want to try opening in somewhere like the City.”