If you’re wondering how to open a salon with no money, look no further. There are plenty of ways to get started without a lot of cash in the bank. As long as you have a workable business plan, you can become a salon owner without having to dip into your savings.
The salon industry is a great place for small business owners who dream of running their own salon businesses and working closely with clients. If you want to start your salon and need financing, read on.
In this article, we will show you many ways how to come up with funds for opening a new hair salon as well as options on how to avoid capital investment at all.
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- Create a Business Plan
- How to Fund a New Salon?
- Option for Opening a Salon with No Money
- Free Salon Software
Create a Business Plan
Your salon business plan is a roadmap that helps you get started in the salon business. Salon owners must know how to pay their bills, get a new business license or permit, and afford their equipment. The business plan will help you see all of your start-up costs and long-term expenses in one place.
It might seem overwhelming - but a lot of the work is already done for you. You can find salon business plans online, and all you have to do is fill them out with your information.
It might take a little legwork to find the exact costs of everything, but that’s part of starting a salon. Knowing what you’ll have to spend and how many services you’ll have to provide to make your business profitable will be a huge help as you learn more about hair salon requirements for opening.
How to Fund a New Salon?
So now you’re probably wondering: how much does it cost to open a salon? The truth is, the cost will vary depending on your location, the number of employees you want to hire, and what professional services you intend to provide.
But, more importantly, you want to know how to open a hair salon with no money. Here are a few options that you could consider.
Check Credit Unions
The best way to approach a credit union is to find a local one, especially if you already have an account with them. Staying local gives you a chance to find a bank that wants to invest in your community by developing relationships with businesses.
Loans from a credit union might offer better interest rates than other options. Talk to a representative to make an appointment and bring your business plan with you.
Bringing the plan will help show them that you’re serious - especially if your business plan includes information about your local market and the need for the service you want to provide.
Are There Charities to Support Your Opening
Sometimes charities or organizations can help you break into the salon industry. Check with your local small business association or Chamber of Commerce to see what kind of funding options they might offer to salons or other startups.
If you know other business owners, you might also ask them what programs they used when starting their businesses.
Family and Friends
Sometimes family or friends are willing to help you create your own business. You can also offer them insurance or incentives like a profit-sharing plan or make a deal to take loans from them rather than just money.
There’s no harm in talking to the people in your life. Even if they can’t help finance you, they may be able to give you some guidance on where you can find funding.
Business Loan from Bank
If you visit your credit union, also stop by your bank. The cost of opening a salon can be high, and you don’t want to leave any stone unturned. If they offer more favorable terms, they might be the better option in your market.
Take your loans from the person or place that gives you the best interest rate, for example. Some areas are more favorable to startup businesses than others.
You can send your plan to an angel investor, explaining what type of salon you want to open and the services you’ll offer. For example, if you’re going to provide nail services in addition to hair cutting and hair styling, make sure to include that.
Angel investors give money to businesses that are just getting off the ground in exchange for an eventual return on their investments.
Rent Free Periods + Landlord Fit Out
Talk to the landlord and explain what you’re hoping to bring to the industry and what services you have to offer. Salons are a great cornerstone business that can help get traffic into other local businesses - so a landlord might be willing to help you find the right location for your space.
Sometimes a landlord will give you a rent-free period while you’re still getting your service off the ground. They may also contribute to helping you outfit the building with things like nail counters or upgraded flooring.
You can lease equipment for your salon - an upgraded chair or tools for employees, for instance - without having to take out a loan and pay the total cost upfront. This means you don’t have to purchase a large number of expensive items before the profit starts accumulating.
Look into multiple leasing options before choosing one. Sometimes one will be less expensive to better fit your budget or one may just offer better equipment.
Option for Opening a Salon with No Money
One way you can build your brand without money is to look into salon suites. These are businesses that offer a salon space at their large location. You can bring clients, work on your marketing, and start making money from doing hair without having to take out a loan.
Salon suites are more private than other types of rentals and give you more personal and private interaction with the customers who come to you.
If you want to save a little more when you open a hair salon, look into booth rental. These aren’t quite as fancy as salon suites, but they’re an excellent choice to get your brand off the ground.
If you’re interested in a booth rental, check with local salons. You can save up while you take advantage of these programs and, eventually, choose something else if you prefer.
You might be able to save even more by opening a home salon. If you don’t mind doing hair and other services at your house, consider this. It’s one of the least expensive ways for salons to start working.
Check to make sure it’s legal in your market, and remember that you might have to get different licenses. All of this should be considered and included in your plan.
Why take out loans to open a large space when you can start a mobile hair salon in your area? Meet with people at their homes or in places that are convenient for them.
Many people believe this is a better way to meet people and find related services in the area where you’re trying to get your business off the ground.
Free Salon Software
One great place to save money is with free salon software. Zolmi is the perfect program to help you manage your salon when you have limited or no budget.
With Zolmi, you can allow clients to book their personal salon services. This means that if clients suddenly desire hair removal at midnight, they can go online and make an appointment with you - even when your business is closed.
But the best free salon software isn’t just about client management. Zolmi also offers reporting that will help you better understand your performance in the salon industry.
You can be sure that your marketing is successful, that you’re making a profit, and decide what needs to be adjusted to meet your goals.
If you’re a small business owner, you’re probably constantly on the go. Zolmi also has a salon management app that works on iOS or Android. You can check how your business is doing between keeping your social media business pages updated.
Do not miss our post on salon grand opening ideas that will help you introduce your new salon to many potential clients.
So what do you do now that you understand how to open a salon with no money? You get started on your salon business! Remember, having your projections and research prepared before seeking funding shows that you’re a serious owner who will make your salon a success.
And if you love these ideas or have some other ideas that you've used in the past to promote your salon business, why not share them with the Zolmi community in the comment section below. We would also be delighted to answer your questions, as well.
If you find this article helpful or have similar salon business ideas or experiences you would love to share with the Zolmi community, please leave a comment below. Also, we would be delighted to answer your questions, if any.
Doing Business without Exchanging Money: The Scale and Creativity of Modern Barter https://journals.sagepub.com/doi/abs/10.1525/cmr.2013.55.2.46
The Crowdfunding Handbook: Raise Money for Your Small Business or Start-Up with Equity Funding Portals
The Standout Business Plan: Make Irresistible- and Get the Funds You Need for Your Startup or Growing Business https://search.proquest.com/openview/c0c3f3724258368b913fee5ea659b6e2/1?pq-origsite=gscholar&cbl=25565