Increased awareness in society with regards to health and well-being related issues has caused a boom in the health & beauty salon business. If you want to take advantage of the popularity of such SPA treatments from a business perspective, you will need to set up your own company. Read our article in order to find out what to do in order to open your own health & beauty salon.
Increased awareness in society with regards to health and well-being related issues has caused a boom in the health & beauty salon business. If you want to take advantage of the popularity of such SPA treatments from a business perspective, you will need to set up your own company. Read our article in order to find out what to do in order to open your own health & beauty salon.
What is a health & beauty salon?
Let’s start off by having a look at what they usually offer. These can be various beauty and relaxation treatments, as well as ones concerning wellness and your physical health. Such places are sometimes also called a SPA or Wellness Centre. This is often the case if they offer services such as massages, peeling, skin firming, moisturising, etc.
Nowadays, with more and more people leading a stressful lifestyle, such salons are becoming increasingly popular, with Spa treatments chosen by both women and men.
If you are looking for information on how to open a massage studio, read our other article on this topic.
How to set about opening a health & beauty salon
There are a few basic things you will need to do in order to set up your own health & beauty salon. These are issues related to planning your business activity, choosing the location and necessary legal requirements.
A health & beauty salon business plan
A business plan is the foundation of any well-functioning company, not only a health & beauty salon. It should contain all the basic information about the company, including the owners, contact details, company tax number etc. However, most importantly it should show the results of your business analysis.
One such element is the SWOT analysis, which takes a closer look at the Strengths and Weaknesses, Opportunities and Threats related to running your future business. You can directly influence the first two factors, but the opportunities and threats are largely dependent on external situations. Here are some examples of such an analysis:
- strengths:
- your experience,
- certificates and diplomas,
- qualified staff,
- your interior design,
- good location,
- competitive prices,
- cooperation with cosmetic companies,
- state-of-the-art equipment,
- weaknesses:
- unable to get an attractive loan,
- no brand recognition,
- no experience in running your own business,
- costs related to real estate purchase or a lease agreement,
- opportunities:
- growing demand for SPA treatments,
- threats:
- growing competition,
- competitors have loyal customers,
- staff turnover,
- high fixed costs,
- high rent.
You should also state the initial investment cost analysis in your salon’s business plan. Remember to include all expenses related to setting up the business, e.g. purchasing or renting a location and its renovation, purchasing the necessary equipment, the cost of connecting a sufficient water and electricity supply, etc. You also need to take into account the expenses that come with running your own business, such as all the monthly bills, rent, loans, salaries, taxes and material costs. And do not forget to allocate some funds for marketing and promotional activities.
Your estimated price list is also a very important element. At what level you set your prices should depend on several factors. The easiest way to start off is to check how much your competitors are charging for simple treatments, and use this as a base. Your location should also influence your prices. Locations in the centre of a town or city will usually be more expensive than those more difficult to reach. Brand awareness is also important, and well-known brands will generally get away with offering higher prices. The last aspect is the popularity of the chosen treatments. Treatments available in almost every such salon will be cheaper than specialist treatments intended for a niche group of customers.
Your business should therefore also mention your target audience. This analysis should include such aspects as age, gender, place of residence, marital status, standard of living, etc.
Choosing the premises of your health & beauty salon
As you already know, the perfect location is one of the elements of a SWOT analysis. But what is the perfect location for such a business? This could be where most of your potential customers will come from. Following such an analysis, try to purchase a venue close to this target group if you have sufficient funds to do so, or alternatively look for premises to rent.
Such businesses often operate in places with a lot of potential customers visiting every day, such as high streets, shopping malls or even office buildings. Residential areas, where the majority of residents are young families, are also a good option. This is a target group that pays a lot of attention to their appearance and well-being, so they will very likely be looking for such treatments.
Setting up your company
Setting up a health & beauty salon, as with many other business activities, is subject to formal requirements. If you decide to run your business as a sole trader, you will first need to register your company. To set up as a sole trader, you need to tell HMRC that you pay tax through Self-Assessment, and will need to file a tax return every year. You’ll need to keep records of your business’s sales and expenses, send a Self-Assessment tax return every year, and pay Income Tax on your profits. You will also need to set up a company bank account and it would be helpful to sign a contract with a company providing accounting services if you are not comfortable doing this yourself. You must register for VAT if your turnover is over £85,000. You can register voluntarily if it suits your business, for example if you sell to other VAT-registered businesses and want to reclaim the VAT.
You can trade under your own name, or you can choose another name for your business. You do not need to register your name. However, you must include your name and business name (if you have one) on official paperwork, for example invoices and letters. Sole trader names must not include ‘limited’, ‘Ltd’, ‘limited liability partnership’, ‘LLP’, ‘public limited company’ or ‘plc’, or be offensive or the same as an existing trade mark. Your name also cannot contain a ‘sensitive’ word or expression, or suggest a connection with government or local authorities, unless you get permission.
Legal requirements
In some cases, you may be required by law to register with your local authority environmental health department, depending on the treatments you plan to offer.
If you offer treatments using lasers or intense pulsed light you don’t need to register if you’re based in England, but in Northern Ireland you’ll need to register with the Regulation & Quality Improvement Authority or the Healthcare Inspectorate Wales if you set up a business in Wales. In Scotland you do not need to register if you use lasers or intense pulsed light systems for cosmetic purposes, but you must comply with National Care Standards.
Some key areas where health and safety regulations affect your business, particularly if you employ staff, include the use of potentially hazardous substances, the safe use of work equipment and proper maintenance and testing of work equipment.
You must comply with workplace health and safety and fire safety legislations.
Essential equipment in a health & beauty salon
Choosing the right equipment for your salon depends largely on the scope of services you will be providing. However, there are a number of must-haves for any good health & beauty salon.
These include beauty beds, which can also be used for a variety of body treatments. They are ideal for various types of massages, but also peeling, firming, moisturising and more. When choosing the best beauty bed, make sure you pay attention to the upholstery. It should be resistant to water and other fluids used for such treatments. For hygiene reasons, beauty beds are usually covered with faux leather, which can come in various colours, making it easier to perfectly match your interior design. In the case of the filling material, it should be comfortable and shouldn’t deform, even after lying or sitting on it for a long time. High-density upholstery foam that keeps its original shape for a long time is best.
Modern beauty beds are usually adjustable, which makes it easier to adjust the position to both the treatment and your customer’s or employee’s preferences. Many models are electronically powered by remote control. You can adjust the height and angles of the backrest and footrest, as well as adjust the lying position. When choosing an electrically powered bed, make sure the motor is not too loud. A cheaper alternative are folding massage tables that can be adjusted manually.
Other important equipment that people often forget about are professional chairs and stools . These are essential if you want to provide your employees with a sufficient level of comfort for lengthy treatments. Such furniture should also be made of an easy-to-clean material with a comfortable filling. Height adjustment, in turn, will let you adjust the working position to the height of the customer and also the employee, while wheels will let you comfortably move around the salon without having to get up each time.
Traditional round chairs and stools offer plenty of room for manoeuvring. However, stools and chairs with saddle seats are a more ergonomic solution. They reduce pressure on the spine and, as a result, minimise the risk of fatigue as well as back and shoulder pain after long periods of work in a sitting position.
As already mentioned, the exact equipment you will need depends on what treatments you will be offering. You might need multi-functional equipment for performing various treatments on one device, manicure desks, or even towel warmers. You need to carefully consider your business profile when deciding what to purchase.
Setting up a health & beauty salon – summary
Opening your own health & beauty salon requires patience and a considerable financial investment. Follow our advice and you should succeed with your new business.
Prepare a well-structured business plan, covering the various stages of running your own health & beauty salon. The right location is also key, ideally with easy access to potential customers while keeping your available budget in mind. Also remember about the formalities related to setting up your own business, and don’t forget about the most important deadlines!
Are you looking for other business ideas? Read our other articles about setting up your own business, including how to open a beauty salon.
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