Getting things right from the start will give you a much greater chance of success. “You’ll need to start with a business plan and cash flow forecast before you go any further,” advises NBF director Tina Beaumont-Goddard.
“Your business plan is a vital document, and something you will definitely need to have if you plan to apply for loans to help get your business off the ground,” says Beaumont-Goddard. “Include the short, medium and long-term plans for your beauty salon and key information such as your business idea and goals, how you will cover your start-up costs, if you plan to employ people and how you will compete against the competition.”
Download a free in-depth guide to starting your own beauty salon at nhf.info/beauty-startup-guide. This comprehensive guide covers key issues such as types of business, insurance, health and safety, GDPR, business finances and marketing.
Cash flow forecast
Your cash flow forecast is equally important. “Running out of cash is a major cause of business failure – even when businesses are profitable. You’ll need to plan your incomings and outgoings for the coming 12 months and enter the figures on a spreadsheet so you can clearly see where you stand,” says Beaumont- Goddard. Find out how to create a cash flow forecast at nhf.info/cashflow
Choosing a name and location
Make sure the name you select hasn’t already been taken by another business by checking on the Companies House website. “Also, don’t limit future growth by naming your business after a treatment or location – after all, you may expand the treatments you offer and eventually open more salons or move to a different area,” says Beaumont-Goddard.
It’s crucial to choose the right location while sticking to your budget. You’ll need to think about the locations where you can best reach your target market and also consider practical issues such as public transport and parking.
Qualifications and licences
“You must make sure that you have the necessary qualifications to carry out the treatments you plan to offer, otherwise your insurance will not cover you,” warns Beaumont-Goddard. “Our fact sheet (nhf.info/age&qualsfactsheet) sets out the minimum qualifications required for each type of treatment.” You will also need to check which licences you’ll need from your local authority.
You will need to comply with a wide range of employment laws if you take on staff. “This includes paying the National Minimum Wage and providing a workplace pension scheme,” advises Beaumont- Goddard. NBF members can download a free guide to employing staff at nhf.info/recruitment-guide
For less than 75p a day, the National Beauty Federation (NBF) will help you boost your business while keeping you safe, legal and bang up to date with all the latest business laws. You’ll wonder what you did without us. The NBF is the sister trade association of the National Hairdressers Federation (NHF). Find out more: nhf.info/nbf
Join the NBF before the end of October 2019 and quote PBO25 to get £25 off your membership fee.
Join online at nhf.info/join Or call us on 01234 831965