Are you interested in opening a hair salon franchise, but still looking for an extra push before you commit? It’s important to weigh out the pros and cons of a decision as important as this one, but investing in this type of business is an endeavor that boasts many inviting qualities. The following information will help you further understand the benefits of this undertaking.
The top six reasons to invest in a hair salon franchise are:
- Reduced risk of failure
- Support of the franchisor
- Automatic brand recognition
- High return on investment
- Growing industry demand
- Ability to work for yourself
If these qualities sound desirable to you, keep reading for more detailed information on them!
Let’s first talk about the benefits of investing in a hair salon franchise as opposed to creating your brand. These benefits will include reduced risk of failure, franchisor support, brand recognition, and high return on investment.
If you search for franchise success rates, you’ll find a lot of information telling you that franchises have a much higher success rate than independent businesses. For example, one statistic that’s commonly reported is that 95% of franchises are still open after 5 years. Researchers have since reported that this statistic is exaggerated; however, according to the International Franchise Association, there is still a reduced risk of failure in buying a franchise over starting a new business.
What is the explanation for this reduced risk? The main reason for this can be traced to aspects of franchising such as the built-in assistance, encouragement, and resources that come along with the franchisor you are purchasing from. These are features that are not readily available when starting your independent brand. Let’s take a closer look at these benefits to help you get a better understanding of reasons to invest in a hair salon franchise.
You’re Not Alone
When investing in a hair salon franchise, you’re automatically not alone due to the franchisor support you will receive – starting right from day one! The franchisor you’re purchasing from wants you to be successful. This means that you’ll get all of the resources and knowledge that your franchisor has acquired. They’ve learned what works in the beauty industry, what doesn’t work, and everything in between.
A few examples of supporting your hair salon franchisor may provide to you include standard operational guidelines, training opportunities in a classroom setting or the field, marketing, and advertising help, and contact to reach out to as you need. Likely, your franchisor may also help you fully design your salon. In some cases, they can even act as a financial resource.
These elements extremely helpful in building and growing your franchise, but they also often give owners an extra sense of confidence through knowing that they aren’t alone. This is especially beneficial when the franchisee doesn’t have certain industry knowledge or the resources to obtain thorough training on their own.
It’s important to remember that the terms of your contract (and therefore the resources provided to you) will vary based on which hair salon franchisor you purchase from. Regardless of who you partner with, you should expect an exceptional amount of support in starting and maintaining your salon.
Marketing Made Easy
One of the greatest benefits of investing in a franchise is the brand recognition that comes with it. Think about some of the most well-known salons you know – and then imagine what it would be like to automatically inherit their customer base. This is an enormous asset to have when becoming a business owner. It takes a significant amount of time and money to build the kind of loyalty and recognition large brands already have, so this is a major perk that will put you ahead right from the start.
In addition to the brand recognition of your franchisor, it’s also likely that they have a comprehensive marketing and advertising plan that they’ll be willing to share with you to increase your customer base even more. Adding the strategy of a fully developed brand to the creative vision you have for your salon can be a great path to success.
What About Money?
Now that you’ve learned about franchisor support and brand recognition for your hair salon, we can talk about money. When purchasing your salon franchise, the amount of capital required for your initial investment will vary depending on the brand you’re purchasing from. There is typically a one-time franchise fee that can range from as low as $10,000 to as high as $100,000 plus.
It’s important to thoroughly evaluate your investment before moving forward, but generally speaking, franchises bring in a higher return on investment than an independent business. Simply put: Utilizing the franchisor’s expertise and brand recognition will attract customers, and attracting customers makes money. These advantages, which don’t typically apply if you’re starting a hair salon brand from scratch, give you a better guarantee that you’ll make your money back (and more) – the main goal of every investor!
(When you’re getting to the more serious stages of your investment opportunity, you may way to learn how to evaluate a franchise opportunity. If the franchisor you’re looking at isn’t hitting some of the numbers that will make your investment worthwhile, you might decide to look into other brands offering franchise opportunities – especially when there are such favorable circumstances for a high return on investment and high profits when partnering with the right hair salon franchisor).
A Booming Industry
You’ve learned that your hair salon franchise will come with various benefits starting from the very beginning of your ownership, but there’s an important question we haven’t answered yet: What about the beauty industry?
A top consideration of an investor is whether or not their desired industry has a good outlook for the future. When thinking about this, you should consider both the near future (one year down the line) and longer-term projections (20 years down the line). Unfortunately, it doesn’t matter how much franchisor support or marketing is available to you if you’re going into a dying industry that just doesn’t have a high demand.
Luckily, this isn’t the case for investment in the beauty industry. There is high demand for this kind of business, and a great forecast for the long-term future of the market!
Everyone wants to feel their best – and for a majority of people, looking their best is an influential part of this. It has often been said that the beauty industry is “recession-proof.” Whether or not you believe this, the point behind it remains true: demand for beauty products and services, including hair salons, is not going anywhere. The consistent growth of this industry is a considerable reason to invest in a hair salon franchise.
Be Your Boss
A final reason to invest in a hair salon franchise is the ability to work for yourself. There are so many benefits of this, but the quality that everyone usually finds most attractive is the capability to create your schedule. As a hair salon owner, you’ll have a great deal of responsibility – but you’ll also have a great deal of flexibility! Your investment will allow you to dedicate time to the things you care about outside of work, even during times that you normally may not have been able to while working for someone else.
As a franchise owner, you’ll also have more freedom to make business decisions. For example, you’ll finally have the ability to create the healthy, positive atmosphere that you always wished your 9 to 5 had.
You’ve now learned about the six top reasons you should invest in a hair salon franchise! Which quality is most important to you? No matter what your answer is, it’s safe to say that this decision can bring a great amount of happiness and success to those who decide to go for it. Good luck in your endeavor!
Want to do it yourself? HERE are our start up tips!
What services does a hair salon offer?
You probably already know that hair salon employees cut hair – but this isn’t the only service that they can provide. Cutting hair would be the minimum requirement of a hair salon, but most locations offer additional options as well. These additional options can include coloring hair, adding extensions, masks/deep conditioning services, and styling hair in special ways (usually for events).
How many employees does a hair salon need?
The number of employees required for a salon depends on the specific location. A small salon will usually have at least 2-3 employees, but large salons can have up to 20 (or even more)! This is dependent on the physical size of the hair salon, along with customer demand.
What qualifications do hair salon employees have?
Most hair salons will require their employees to have at least a high school diploma, along with graduation/licensing from cosmetology school. Previous experience in the field and strong industry knowledge are also important. Finally, most hair salon employees are outgoing with good communication skills.
Looking to start your own Salon? Get the documents you need to get organized and funded here.
Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.