Need advice starting up a business?

Question

My wife wants to open up a salon. But neither of us have expirience running a business. Im primarily the one who pays the bills in the house so Im not to worried about risking our future (or should I be?). How do we go about starting she just graduated beauty school, what is the next step. What kind of loans or start up costs should I be looking at? Any advice is appreciated.

Answer 1

I would suggest looking into the Small Business Administration. There is a lot of helpful information on how to start a small business. There is a link to small business planners, tools, and local resources.

There is another site that should help you. smallbusiness.findlaw is a site that will help you with First Steps, Business Plans, Financing, Licensing, and a Start-Up Tool Kit.

Check out both of these sites and you might get the answers you need.

http://www.sba.gov/
http://smallbusiness.findlaw.com/

Also many banks will offer a small business loan to get you started. Another thing I know (from previously working in a bank) is to have your business accounts as an LLC. This is Limited Liability Cooperation. This will protect your personal finances from being tied in with you business finances. That way if it does not work out you won't loose your house to pay off the business.

Answer 2

If she just graduated, she does not know anyone needing hair stylist. Why doesnt she rent a chair from a local salon to see how she does and get an idea of what its like and if she will actually do well. If she has many returning customers, open the salon. Plus, make sure to estimate the lease, utilities, and bills to see if you at least break even. I've never heard of someone who just graduated beauty school and opening a salon right away. It's too risky and people don't go to any random salon, they go to ones they've been to before. I know several hair stylist personally, and unless you are very wealthy, and are a established well known stylist, you cannot open a salon right away.

Answer 3

I'm in the same situation--the start of a business. First and most importantly, put together a plan!

1. Check with you local City Hall and State Revenue Department to find out about licenses, zoning, etc.
2. Find a location. Build on to your house if you have to. Find a good location if you have the funds.
3. Expect to struggle at first. Everything will grow in time. Keep your eye on the goal.
4. Save your money. If you need more, goto the bank with your business plan and talk to the manager. Be direct and professional. That will show them you're serious.
5. Work Hard. Advertise.
6. The money end of the business--organize like this:
money in
money out
Save ALL your receipts, organize them, and write everything down.

Answer 4

First of all, congratulations to you both for wanting to expand your world...Becoming a small business owner, seems to be an easy task, as there are many things, such as the multiple taxations, that people perhaps aren't aware of to begin with. My husband and I have owned our company for nearly 15 years, and as tax laws change, so do your requirements. My best advice is first: never get behind on your IRS stuff, or city taxes, etc. Get organized immediately with licenses : (re: sales tax license, city licenses, etc.) Second, you should hire an attorney (do a lot of research prior), that will represent you both inevitably. Third: become a CORPORATION, NOT sole proprietor. Reasons:1.) More tax breaks, 2.) If you should ever get sued, the person placing the suet can only hit the business for collections. Sole-proprietors automatically link their personal assets with the business of choice. Fourth?: Never hire friends if you want an exceptional job...friends are human, and make mistakes, It could cost you the friendship if they disappoint you. Because it is not THEIR business, they may have different work ethics. Fifth: Read over your lease agreements, contracts and all legal paperwork thoroughly, especially if buying a pre-existing company. Sixth: Research the area where you'll be opening the salon and make sure its a prime spot.,Think about the clientel you prefer (women/men, elderly/middle-age/teens, etc...) Then, appropriately design your salon to suite (down to the music you'll have playing). Select sales techniques that bring in revenue. Run specials for the appropriate upcoming events to boost sales: such as ..prom, homecoming, weddings, holidays, etc. Well, I hope the info was somewhat helpful, and best of luck to you both in your new venture!

Answer 5

In order to own and operate a salon, she must have a managers license which requires a few extra months of education. Go to the bank and ask about all programs for small business start-ups...they can provide you with information on various types of loans and programs. You and she will need to look into locations, demand in the area (don't go where there are already many stylists operating), what renovations will be needed, allow extra money for inspections, equipment, etc before applying for the loan

Answer 6

The Small Business Administration has free seminars on a regular basis that will be able to help you both. The most important advice is to set it up legally with the help of a CPA to make sure you are filing all the forms required by law.
No matter what,.... the 1st three things of business are location, loction, location.
And I believe you should work for someone else for a minimum of 1-2 years to find out all there is to do. Plus build up your clientele.
Believe me, it's the small things that can make you or break you. I constantly hear how clean our store is,....I pay a window washer once a week as part of my cleaning,...it is so important how you look to people.
In my trade there are 5 magazines free to store owners that give you tons of ideas, strategies,...just fantastic information. Layout of the store, etc. Google to see if there are free publications for your industry. And, Best of Luck!

Answer 7

First of all I would not start a salon right out of beauty school.She needs work experience.Beauty school does not give you the skills you need to run a business.She needs to work on getting her skills perfected and build up a loyal clientel.I would suggest her working at a reputable salon that seems to be doing well.She later needs to take a few business development classes but she will learn alot her first few years working as a stylist.Just watch the owner and how she/he runs things to see what works.At beauty conventions and shows there are always special classes for owners and mangers to take too,this will be a great asset for her future salon and business.
good luck

Answer 8

Salons are like bars. Unless you`ve got a large one and become popular, it won`t make enough money.
If you can rent a large space in a busy Mall or something ($2000 rent a month + expenses) Figure it out if only 3 out of 4 chairs will be full each day!
It will cost at least $20000to $30000 for remodel & fixtures before opening. Then you`ll have all the other overhead too!

Answer 9

Decide on the type of business you want to run, Corporate, Corp - Chapter S, LLC, Partnership, Sole proprietorship. Each has their benefits

Talk with a lawyer. Find a good Accountant. Write your business plan, talk with your banker. Insurance, find out what licenses you need from your town, state. You will need to set up tax accounts with state, and federal. You might want to get hooked up with a local Chamber of Commerce, they can help.

I would recommend working for someone else for a little while to learn some of the ins and outs of the business.

Good Luck

Answer 10

It really depends on the size of the salon...I would start looking a places to lease...Business licenses and fee's are usually in the area of 3,000... Looking at loans I would start with Wackovia they usually have low rates. Also see what your bank has to offer...Credit unions are another great idea. Since this is your first business and she is a women have her search for grants on-line...There are a lot of grants for first time business owners and there are a lot more for women who want to start their own business... Good luck 2 you both =)