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Starting a Hair & Beauty Salon Business in South Africa – Business Plan (PDF, Word & Excel)

Posted by BizBolts | All Articles , Business Ideas , Business Plans

When it comes to South Africa, hair is big business, it is estimated that the hairdressing sector contributes over R24.8 billion. There is an increase in the number of people who need their hair cut, styled, or simply washed. It is safe to say that everyone from all walks of life needs their hair taken care of. As the population increases along with rising living standards, children, students, adults, and their families seek professional hair stylists and beauticians. As such, setting up a hair & beauty salon business in South Africa is a profitable venture. Hair and beauty services will continue to be in high demand, creating massive and creative opportunities for hairstylists and beauticians. South African women prefer a variety in their hair care products, going from braids to weaves, to chemical treatments, to other drastic style changes. There has been a recent trend towards embracing ethnic hair amongst black people and the demand for hair products specifically meant for ethnic hair has been on the rise. There will always be a large number of men and women, especially in the formal sector, who want to look presentable, and this continues to create a large market for hairstylists. Everyone wants to look beautiful and smart, but it is important to understand that anyone venturing into the hair & beauty salon business needs to learn various hairstyles and creative ways to style hair. This article will outline how to start a hair and beauty salon business in South Africa, and the hair and beauty salon business plan – PDF, Word and Excel.

A salon is a lucrative business, providing income for many entrepreneurs, but there are some essential decisions you need to make before you venture into this business. You need to decide on the size of your hair and beauty salon; the location, the various products and services you will offer, plus your target market. These factors will be affected by the amount of capital you have. Thus, you should carry out a feasibility study, market research and have a good hair and beauty business plan before you venture into this business.

MARKET RESEARCH

Before setting up your salon business in South Africa, it is always best that you first research your market. You must understand the market before venturing into any kind of business. Market research will allow you to see if potential customers would be interested in the services you offer. It is necessary that you segment your market, determine who you want to target, and understand what they like. This will help you find your place in a sea of various beauty service providers.  You must have an idea of the number of salons in the area where you want to set up shop. A market analysis can show you how many salons are already in your town or city and who they serve. It is critical that you determine whether there are any unmet needs or areas in the hair and beauty industry. You must also have an idea of your competitors’ products and services and how you can compete with them. A market assessment will help you discover all that information plus it will help you determine your competitive advantage.

BUSINESS MODEL

There are many beauty products and services that you can offer in your salon. As such, you need to think about the specific services your business will provide. Some of these services you can consider offering include hair styling, hair coloring, extensions, cuts, trims, and shampooing, to name a few. You can also offer complementary beauty services in your hair and beauty salon, which can help you generate more revenue. Some of these services include pedicures, manicures, nail tipping, skin exfoliation, and acrylic nail application, among others. You’ll be surprised at how much your clients value having such services under one roof. It would take them a long time and cost them to travel from one luxurious spa to another, so having beauty services under one roof can attract a lot of clients. In addition to these services, you can also sell hair and skin care products to your clients. Shampoos, conditioners, nail polish, nail filers, and exfoliating creams are just a few examples. It is important that you do not focus on providing these products and services alone. Most businesses succeed by creating a warm, clean, and comfortable environment. Since you will be selling beauty services, how you make your clients feel really matters. When determining your business model, it’s important to consider the atmosphere as well as your specific products and services.

LOCATION & PREMISES

This is an important decision to make before you start a hair and beauty business. It’s important that you locate your shop close to your target market. Consider the amount of road traffic, find an easily accessible location where people can stop and quickly get service. There are several possible locations, including shopping centres, malls, and the CBD. Opening a hair and beauty salon close to places that typically have potential for traffic will be ideal depending on your target market. The salon should be large enough to accommodate all your equipment and a number of customers at the same time. Your hair salon business plan should cater for the costs of purchasing or leasing the premises.

COMPETITIVE ANALYSIS

The hair industry in the country has many players. There are a huge number of both local and international salons and beaty bars operating in South Africa. You must therefore determine your competitive advantage and find ways to differentiate yourself from other beauty parlors. You can consider pricing your products and services competitively, locating your salon in a convenient place that is close to your customers’ homes, and ensuring that you offer a great atmosphere. Every business owner should conduct a competitive analysis for their business in order to understand where it will fit in the market. This way, you can find out where your strengths and opportunities lie, “spy” on your competitors, and take advantage of their shortcomings.

LICENCES, INSURANCE AND BUSINESS BANK ACCOUNT

When setting up a salon in South Africa, you need to have a license. A license can be obtained by visiting the National Bargaining Council for Hairdressing and Cosmetology, Beauty, and Skincare’s office. The National Bargaining Council website has the application form as well as a list of the required documents. Some of the documents required are a certified copy of the applicant’s identity document book, a documented description of the premises, and a site clearance, you also need to pay some fees. Make sure to renew your salon license whenever its expiration date approaches. In addition to having a license, your business premises must be insured. Just like any other kind of business, a salon needs general liability insurance, commercial property insurance, professional liability insurance, and workers’ compensation insurance. You need to be protected against claims arising from bodily injury, property damage, and personal injury. Repair expenses are also covered by insurance. Another important issue when running a salon is separating your business bank account from your personal bank account. This will make your accounting more efficient and protect your assets from legal liability. Also, separating your personal bank account from your business bank account will give you access to business-only financial services. You can also take advantage of tax deductions.

EQUIPMENT FOR A HAIR AND BEAUTY SALON

You need various equipment for your hair and beauty salon business. The equipment you need will depend on the size of your business and the kind of products and services you will offer. Some of the required equipment and tools includes blow dryers, multi-styling kits, curlers, hair brushes & combs, cart & trolleys, and hair styling stations. You also require furniture like hair styling chairs, dryer chairs and all purpose chairs. Your beauty salon business plan should cater for the costs of purchasing the equipment.

PRODUCTS AND SERVICES

Your target niche will determine the types of products and services you will sell. The most popular products and services offered in most hair and beauty salons include cuts, relaxers, perms, colours, massages, body waxing, facial treatments, manicures, pedicures, weaving and braiding.  It will be advantageous to sell hair extensions and hair treatment products to compliment your services. It is also wise to provide complimentary services such as free Wi-Fi to attract and entertain customers.  Another essential factor in running a hair and beauty salon is selecting the right suppliers for your products. Consider suppliers who can provide affordable and quality hair products consistently. Additional services such as manicures, pedicures, make up and facials together with spa services would be beneficial for your business. Your hair and beauty salon business plan should outline the various products and services you will provide.

STAFF & MANAGEMENT

As a customer-centric hair and beauty business, it’s important that you hire employees that are friendly and efficient. Your employees should be passionate about serving the clients and about hair in general. If you want to hit the ground running it’s better to hire a team of people who have experience in this business. Your beauticians should be able to braid or cut hair well in addition to being able to serve customers efficiently on a regular basis.  Inexperienced staff members need to get extensive training before they can be given intricate hair treatment tasks.

The equipment and chemical used in salons can cause serious injury thus it is important that you take the necessary precautions for the safety of your staff members and yourself. Depending on the size of your shop, the actual number of your staff will vary however, you will need hairdressers, beauticians, cleaners, and security as well as management. Your hair and beauty salon business plan should cater for the salaries and day to day expenses of your employees.

Some of the day-to-day operations of this business involves:

• Shampooing, cutting, styling, and colouring hair, as well as massaging and treating scalps
• Applying makeup, performing facials, and recommending skin care therapies.
• Performing manicures and pedicures, nail art, and color recommendations.
• Managing Staff
• Marketing and advertising

It is important to adhere to all industry related safety measures in place. These safety measures cover the cleanliness of your environment; how your staff members dress plus the general safety of your staff and customers.

SALES AND MARKETING STRATEGIES

When you set up your salon, consider launching your services in the local newspaper, on popular blogs, and on social media. Advertise greatly and consider setting up a basic website where you can post informative posts about hair care to attract new clients. Do not forget to keep all of your clients’ testimonials. If you can, record videos of what you did with them. Offer discounts to your regulars so that they can spread the word. Word-of-mouth advertising is still powerful, and it continues to build a lot of businesses . Make sure that your work meets high standards because each person who comes to you for hair treatment is a walking advertisement. You can offer specials, such as bring a friend along for a free service or give away a free shampoo.

Hairdressing in South Africa has developed and become recognisable as a profession and trade. There are more beauty and hair salons for the black population since they take up a large portion of the country’s population. There is an estimated 3 000 Caucasian hair salons and about 34 000 afro salons in the country.  They are a lot of hairdressers, hairstylists and cosmetologists who offer a variety of hair and beauty services. A large portion of ethnic consumers is moving away from harsh chemical relaxers in favour of less invasive products to manage their hair. The continuous rise in the urban population has resulted in an increase in the demand for hair & beauty care products and services.

Given that the South African market is one of the leading emerging economies on the African continent there is potential for high growth. The cosmetic and personal care industry sector in the country has been growing steadily for the past years, thus opening a hair and beauty salon is a good investment. Whether you are a young entrepreneur, a professional seeking to start your own business or someone who needs a retirement plan, investing in a salon is something worth considering. One thing that can set you apart before investing in any venture is developing a business plan. A well thought out hair & beauty salon business plan will help you in both the short term and long term for your investment. There are various risks associated with running a hair and beauty salon, like any other venture, your business plan should clearly outline these risks and ways to minimise them.

PRE-WRITTEN HAIR & BEAUTY SALON BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

For an in-depth analysis of the hair & beauty salon business in South Africa, purchase our hair & beauty salon business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the hair & beauty salon business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a beauty & hair salon business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the beauty & hair salon business plan will lay out all the costs involved in setting up and running the salon business. The business plan is designed specifically for the South African market.

USES OF THE BEAUTY & HAIR SALON BUSINESS PLAN (PDF, WORD AND EXCEL)

The beauty & hair salon business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your hair & beauty salon business
• As a hair & beauty salon project proposal
• Assessing profitability of the hair & beauty salon business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE HAIR & BEAUTY SALON BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

• Market Analysis
• Industry Analysis
• 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
• Marketing Strategy
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some South Africans in the hair & beauty salon business fail, so that you can avoid their mistakes
• Ways to raise capital to start your hair & beauty salon business in South Africa

The Hair & Beauty Salon Business Plan package consist of 4 files

• Hair & Beauty Salon Business Plan – PDF file (Comprehensive – 81 pages)
• Hair & Beauty Salon Business Plan – Editable Word File (Comprehensive – 81 pages)
• Hair & Beauty Salon Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 45 pages)
• Hair & Beauty Salon Business Plan Automated Financial Statements – (Editable Excel file)

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The business plan has a highly professional look and feel. The research really helps me look deep into the market that I am targeting, it’s well suited for the South African market. The business plan clearly outlined everything I need to start the business and the costs. It’s now easier to budget and plan. Thank you very much.

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BizBolts (Pty) Ltd is a business research company based in Johannesburg, South Africa. We sell prewritten business plans for various industries including livestock production, crop farming and retail businesses. BizBolts also publishes articles on business ideas, business news, business tips, personal finance, and entrepreneur profiles.

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Hair and Beauty Salon Business Plan | Download PDF

Hair and Beauty Salon: Business Summary

The idea is on mind, owning a beauty salon business. Great! So what next? Step one is done, the objective is in mind, but in order for it to succeed, there must be a plan; a detailed Hair and Beauty Salon Business Plan which will show that the idea is going to succeed. 

Do you remember the 5 w's in a the " Laundry Business Plan " article? What, When, Who, When, Why and How.  Well now we have the  What.  The following question would be:

"   How? "

I already know I want to make an investment in beauty salon, but how am I going to make this happen? With a very well structured business plan. In that document, the entrepreneur(s) must include, well, basically everything:

Many people think that beauty salons are a cliché business, we have many of them already, but why? Because our society lives on stress, it is always stressed out and salons are convenient kind of retreats.

They are relaxing environments providing great customer services, stressed people go there to be taken care of. That is the magic of it, beauty salons will always have demand, there is no going back on this hectic world. People love to be taken care of, women love having great colored nails done and men love having perfect hands and beards. The people that is planing on having a beauty salon knows it will have a highly demand, they know people will go there and that if it is well managed it will work.

But remember, always be different. There are many investments in beauty salons , make yours be worth it. People love different!

Not sure yet? The following article might help! Top 10 Reasons to invest in Beauty Salon

1. Describe your Company

The objective is to have an added value, to be different, to have that something that makes people think about it. Will your business atmosphere be relaxing? Will soft drinks be offered to the clients or as they enter the store or until they sit down to get the service? Will you have televisions? Separate rooms depending on the service? To develop great business strategies, it is recommended to perform a SWOT analysis to make the right decision. 

What are some of the keys to success?

Environment:

Convenience:, reputation:.

Considering the list above, it is of extreme importance to vary, not to only offer one thing, but to have a range of products and services so the clients find everything they need in the same place, in your oasis. There is no exact number of product or services a beauty salon must offer, but never ever offer least than the competitors. Again, plan plan plan! Hair and Beauty Salon Business plan , that should be your focus. 

2. Define your Target Market

Even though there are many beauty salons, there are different types depending on the target. Some for example, are for men, other for women, other for both and so on... and as I stated before, even though the idea of having a beauty salon is there, people have to do a profound analysis on the message, on what do they want to communicate to others.

WHAT DO YOU WANT FOR YOUR SALON TO SAY?"

WHAT DO YOU WANT FOR OTHERS TO SAY ABOUT YOUR SALON?"

WHAT IS THE HIDDEN MESSAGE?"

WHOM DO YOU WANT TO GIVE THE MESSAGE TO?"

Defining a target market does not only mean to think "oh ok, my beauty salon will be for both, men and women" No. It goes way beyond that. It is one of the parts of the business plan that requires the most analysis because it requires to stop everything and about the buyer's journey . People need to understand the process the buyer will go through in order to get to that precise beauty salon. And also, the key message.

"What will I do to get my customers to understand and retain the message I want to give to them?"

3. Creating a Marketing Plan

We are not done with the planing yet! We have the strategy, now lets go to marketing. In this stage people have to analyze and think which is the best marketing tool for the business. Is it people? Is it social media?

For some hair and beauty salon business , when a client leaves with a new look, THAT is marketing. Some say their client wears the marketing and that is why most of a the clients of a beauty salon are referrals from existing clients. 

It is important to note that research has shown that word of mouth is the best advertising for this type of business. Although as everything, it depends on many factors.

4. Figure the Finances Out

And here we go... the tough part, excel sheets. What is the financial goal? Is it to be a profitable business in the first month? To have a break-even in the 6th month? Number time! This is where you write down everything. Fixed costs, variable costs, every single thing that will involve money.

A sales forecast is extremely important. People need to have expectations on income even if they're only approximate. This is so managers know how much are will they be able to spend during the years and what will be the project that gives the hair and beauty salon profits.

Owning a beauty salon business is a great idea because of its potential, it has a potential growth (it never stops growing), it gives great amount of profit and it will never end.

Beauty salons have been on the market since long time ago; people always need to have their hair cut, nails done, a massage is always a good idea, etc.. But it is important for people to know that getting thins up and going involves planification, remember our focus? Hair and Beauty Salon Business Plan! Thinking and analyzing. If you do things the right way since the beginning, there will be less problems. 

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How to start a Beauty salon in South Africa

The beauty industry is flourishing in South Africa, presenting an excellent opportunity for aspiring entrepreneurs to establish their own beauty salons. With a diverse and growing population that values self-care and grooming, starting a beauty salon can be a rewarding and profitable venture. However, like any business endeavor, it requires careful planning and execution. In this article, we will provide you with a step-by-step guide on how to start a beauty salon in South Africa.

Step 1: Research and Planning Before diving into the salon business, conduct thorough market research to identify potential customers, competition, and trends in the local beauty industry. This research will help you determine your target audience and understand their preferences and needs. Additionally, create a comprehensive business plan that outlines your vision, goals, financial projections, and marketing strategies.

Step 2: Legal Requirements and Permits To operate a beauty salon in South Africa, you need to fulfill certain legal obligations. Register your business with the Companies and Intellectual Property Commission (CIPC) and obtain a tax clearance certificate from the South African Revenue Service (SARS). It’s also important to comply with health and safety regulations and obtain the necessary licenses and permits from your local municipality.

Step 3: Location and Facilities Choose a suitable location for your beauty salon that is easily accessible and offers adequate parking facilities. Consider proximity to your target market and the competition. Ensure that the premises meet the required standards for a salon, including appropriate infrastructure for water, electricity, ventilation, and waste disposal. Plan the layout of your salon to create a comfortable and visually appealing space for your clients.

Step 4: Equipment and Supplies Invest in high-quality salon equipment and supplies that align with your services. This includes hairstyling chairs, shampoo stations, hairdryers, facial and skincare equipment, manicure and pedicure stations, and salon-grade products. Establish relationships with reputable suppliers to ensure a steady supply of quality beauty products.

Step 5: Services and Staffing Determine the range of services your salon will offer based on your market research and customer preferences. This may include haircuts, hairstyling, hair coloring, facials, waxing, manicures, pedicures, and more. Hire skilled professionals who are trained and experienced in their respective fields. Ensure that your staff holds the necessary certifications and licenses required by the industry.

Step 6: Branding and Marketing Develop a strong brand identity for your salon, including a memorable name, logo, and aesthetic theme that resonates with your target audience. Create an online presence by building a website and engaging with potential customers through social media platforms. Implement effective marketing strategies such as offering promotional discounts, hosting events, and partnering with local influencers or beauty bloggers to increase your salon’s visibility.

Step 7: Customer Service and Experience Focus on providing exceptional customer service to ensure client satisfaction and loyalty. Train your staff to be friendly, knowledgeable, and attentive to the needs of customers. Offer personalized experiences and maintain a clean and hygienic environment within your salon. Encourage feedback from your clients and use it to continuously improve your services.

Starting a beauty salon in South Africa requires careful planning, diligent research, and attention to detail. By following this step-by-step guide, you can lay a solid foundation for your salon business. Remember, success in the beauty industry relies on staying updated with the latest trends, offering excellent customer experiences, and consistently delivering top-notch services. With passion, hard work, and dedication, your beauty salon can become a thriving enterprise in South Africa’s vibrant beauty market.

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Hair Salon Business Plan (PDF, Excel, Word)

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• Executive summary
• Company overview
• Products and services
• Operation plan
• Market and industry overview
• Sales & marketing plan
• Financial plan
• Risk management plan
• Potential funding sources

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You may also be interested in.

Market research

How to Start a Salon Business in South Africa

Starting a salon business in South Africa is a profitable venture . The demand for hair and beauty services is high, creating massive opportunities for hairstylists. The high number of women working in the formal sector who want to look smart creates a large market for hairstylists. Women want to look beautiful and smart, and anyone venturing into the hair salon business needs to learn different hairstyles.

Research the Market

Before starting a salon business in South Africa, it is good that you first research the market. You need to understand the market before venturing into the business. When researching the market, get to understand if potential customers would be interested in the services you will be offering.

Write a Business Plan for a Hair Salon in South Africa

After researching the market, you need to write down the facts on paper. A business plan is a road map for any business. In your business plan, you need to have a mission and vision for your business.

A good business plan should also have the following:.

• Startup capital
• Business location
• Market segmentation
• Salon equipment
• SWOT analysis

Identify a Good Business Location

You need to decide on a good business location for your hair salon business. Locate your business near your target customers, and where it is easily accessible. You can locate your business in areas with a high population. A hair salon is ideal in urban areas with high traffic.

Also, ensure that your business has enough space where your equipment fit and customers can get a place to sit and relax waiting to be attended to. 

Acquire Hair Styling Skills

You can decide to hire a professional hairstylist. If you don't want to employ someone in your business, then you need to acquire hairstyling skills. Find the best school offering hair and beauty courses and enroll. Once you have finished your course, get some time to gain some experience before you can start offering hairstyling services at a fee.

Read more: Small business ideas in rural areas in South Africa.

Register your Business and Acquire Business Licenses

The next thing you need to do is to secure business licenses for your hair and beauty salon. You need to register your hair and beauty business within 60 days after commencing operations. You will be required to fill out an IT77 form. It is available at the SARS offices or their website. Failure to register your business will cause conflicts between you and the authorities.

Requirements to Open a Hair Salon in South Africa 

When starting a hair salon or beauty parlor, you need some equipment. They include:

• Combs and brushes
• Hair blow-dryer
• Hair styling station
• Salon chairs
• Salon towels
• Water heaters
• Shampoo station
• Hood dryer  

Decide on Hair Salon Services to Offer

There are many beauty services that are offered in a salon. As such, you need to decide about the services your business will be offering. Some of the common services offered in a hair salon business include hairstyling, coloring and hair extensions.

You can offer other beauty services in your hair and beauty salon that can generate more revenue. These services include:

• Nail tipping
• Skin exfoliation
• Acrylic nail application

How Much Does it Cost to Open a Hair Salon in South Africa?

The cost of starting a hair and beauty business depends on your business size and equipment. The location of your business will also determine startup costs due to expenses like rent. The rule of thumb is to start small and expand your business as your customers increase. There is no use to start with huge startup capital if your business fails to pick up.

For business consultancy, strategic planning, organizational development, market research, financial management & accounting, risk management and business plan writing at an affordable fee, please reach out to us through a phone call +254728 621 138, or WhatsApp , or email: [email protected]

Is Opening a Nail Salon Profitable in South Africa?

The hair salon business is a profitable venture to start in South Africa . Many people are making a living in hair and beauty salons. However, the competition is high, and you need to offer excellent customer support to make it to the top of the competition.

Also, factor in your business expenses when deciding pricing for your hair salon services. You can set a 15 percent profit margin to earn enough revenues to cater to business expenses and leave you with enough profits. 

Starting a hair salon business in South Africa is a profitable venture. To make it in the business, you need to be good at hairstyling and also offer quality customer service. If people like your services, they will tell their friends to come and get hairstyling in your salon.

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• How to start a cosmetics business in South Africa

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(NEW) A Guide To Opening a Hair Salon

Updated on 6 January 2020

The beauty and cosmetics industry is one of the few sectors in which South Africa women dominate.

Morne Cronje, head of franchising at FNB Business, in a previous interview said that beauty salons and nail bars are industries that are cater predominantly for women, but that this is beginning to change. “Interestingly men are also increasingly making use of these services.”

Looking to enter this sector? SME South Africa did the research to find out what you need to start a business as a hair salon owner.

Industry overview

According to the Economic Report: Economic Impact Analysis of the Hairdressing Industry (Services SETA, 2014) by the Department of Higher Education and Training, the haircare sub-sector is comprised of hairdressers, hairstylists and cosmetologists who offer services such as shampooing, cutting, colouring and styling hair.

The report characterises the hairdressing and beauty industries as having low barriers to entry and high levels of competition.

The hairdressing industry is estimated to have contributed R24.8 billion in 2015 to South Africa’s GDP (translating to 0.62% of national GDP), and supported 185 415 domestic jobs that earned R15.99 billion in wages and income through its direct, indirect, and induced contributions, according to the same report .

Getting started

Michelle Bedderson is a hair salon owner based in Johannesburg. She has been blow drying and cutting hair since she was in high school – 30 years ago. “My brother’s girlfriend took me to a salon one day, I watched how curly hair was turned straight. I was hooked from then.”

Her first job in a hair salon was when she was 18 years old in Hillbrow, Johannesburg. She studied Cosmetology and Hairdressing part-time and qualified within two years.

Bedderson says despite having qualifications, you never feel you know enough when you first start, which is why it’s important to invest in your skills.

She advises that one never stop learning. “Invest in knowledge of the products. Invest most of your money on whatever you can learn.”

According to Bedderson self-motivation is what’s behind her success. “For ten years I drove around after work, doing people’s hair – I was doing it to supplement my income. I rented chairs for ten years and then I bought a salon. I’ve [rented a space for my salon] for the past 12 years.”

Invest in knowledge of the products. Invest most of your money on whatever you can learn

Bedderson says she bootstrapped her business with the savings she had, which amounted to R25,000. Currently, she has weekly recurring clientele. When she has too much on her plate, she asks her staff to take over some of her new clients.

Bedderson explains what resources you need to start your own hair salon and gives advice based on her experience.

Setup costs

– A salon will typically need to be kitted out with chairs, counter tops, wash basins, mirrors and cupboards. The lighting must be good. Your hair salon must look hygienic, it must look good. – Wash basins cost a lot of money. You have to get the plumbing done right, it depends on how much money you can spend. I only have two basins, I have two geysers, plumbing can get a little tricky, the plumbers will tell you what they can do. – Each stylist needs his or her own chair, counter top, mirror and space. – Cupboards for each of your staff to use to store their products or brushes. – LED lights, not the hot ones, I prefer those because you work with a lot of heat in a salon. – Good ventilation is needed. In a shopping centre you need an air conditioning. I just open my door to get air. – A tumble dryer and washing machine to wash and dry the towels (some hair salons have this). I go to the laundromat – I don’t have space for those machines – also those machines can add to the cost of water and electricity. Currently my water and electricity costs for my shop is R1,600 a week. – If you are starting out at home, you will need a basin set, a chair and a mirror.

– The area where I have a shop currently is an area that is affluent and people are investing in this area. Before, this, I lived in Riverlea, Johannesburg, but I didn’t want to work in that area. – You must be in an area where you can get customers off the street. The costs of the premises will depend on the area, also the traffic around the shop. You will determine your prices of your services also based on the area.

Sales and marketing

– Advertise greatly, [announce the] launch of your services in the local newspaper and on social media. – Keep testimonials of the few clients you have, take videos of what you did with them. – Word-of-mouth advertising is powerful. Your work needs to be good, because clients are walking adverts, every time you do their hair, the standard of your work should be high. – Sometimes specials, like bring a friend along for a free service, is not a great idea because you can lose money. – Don’t waste money on flyers – people throw those away.

– Consider the cost of your products, break it down to the millilitre, also look at the area you are working in. – Be aware that some people won’t pay your price and will come in to negotiate. Remember, you are competing with other salons (including franchises) and your quality of services differs. – Understand that some clients will only want certain services. I have a lot of customers that will only have a cut and colour, not do a blow dry (they will do this at home), because of tough economic times. – When you advertise your services, be clear on what you offer. Colour, colour techniques and hair extensions are where the money lies.

Training and support

– You have the internet and people sharing advice. – The IQ Cutting Method course changed the way I cut hair.

Organisations to follow

– National Bargaining Council for the Hairdressing, Cosmetology, Beauty and Skincare Industry – Employers Organisation for Hairdressing, Cosmetology and Beauty (EOHCB) – Salon International Africa Exhibition

Startup advice

– Never stop learning. – Don’t become complacent. – Have the customer’s best interest at heart. – Invest in training – invest in improving your staff’s skills, invest in education, equipment, and resources for later. – To take leave, you have to save money. You also work ahead (to take leave). – You should not buy from [retail stores], instead buy from wholesalers who are also there to offer support. – If you are a novice, attend courses to get to know your products well.

Mistakes to avoid – Giving away free services, rather give away a free product. This is because your labour is your livelihood. Your skills are something you have honed to feed yourself, it’s the thing you earn your money with. – Over promising and under delivering – don’t do this. – Eating the rent money.

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How To Start A Salon Business In South Africa

You might be an investor contemplating the kind of business to venture into. Then, this article is going to present to you one of the thriving businesses that come with an overwhelming profit, which is starting a salon business in South Africa.

So, we strongly implore you to keep reading because the chapters in this article will give you a piece of detailed information on how to start and operate your salon business.

The salon business is one of South Africa’s most lucrative businesses, therefore choosing to invest in the industry is one of the best decisions you can ever make.

South Africa is filled with 34000 Afro salons with a little about 3000 caucasian hairdressing salons. These aforementioned figures show the beauty and lucrativeness of the salon business in South Africa.

It’s time, to begin with, our journey into the DOs and DON’Ts of starting, running, managing, and making your salon business successful in South Africa.

Table of Contents

What You Need To Start A Salon Business In South Africa

If you want to start running your salon business, some requirements have to be provided to help commence with business operation, and they include:

1. Business Plan: Build a business plan that covers every aspect of your business. If you want to help determine the required startup capital, it is best to plan within your financial capabilities

2. Business Location: make the right choice of business location that is easy to locate and accessible, attractive, well-lighted, and safe to host customers

3. Business Premises: in finding the best premise for your business, you can choose to buy from an already established salon, or you can go in for leasing property at the right location.

Your salon must have four (4) separate areas, which must include:

Reception and retail area

Shampoo room

Cutting/service area

Storage room

4. Hours and Days of Operation: choose your days and hours of operation wisely, study the market, know when demand is high and low, and decide when to or not to operate

5. Business Registration: in South Africa, it doesn’t require you to gain certification to start your salon business, but there’s the need to register for tax with SARS and also register with the regulatory bodies that govern the industry.

Registering under these regulatory bodies make your clientele know you are operating a credible business, and these regulatory bodies include:

The South African Association of Health and Skincare Professionals (SAAHSP)

The Beauty Health and Skincare Employers Association (BHSEA)

Afro Hairdressing and Beauty Association of South Africa’s (AHBEASA)

6. Business Services: know the kind of service wanted by customers, choose the kind of service you can offer

7. Pricing: if you put up your price at a higher rate drives away customers, a low rate affects profit and can shut down your business.

Therefore, place your price at a moderate rate that is affordable and reasonable to many.

8. Salon Equipment: get quality equipment for your salon business. You can choose to buy second hand or brand new if you’re financially sound

9. Staff Hiring: employ qualified staff for your business, check on the skillset, attitude and work ethics of the employee because they are the main reason why customers will keep coming for your service

10. Advertisement: there are a lot of salons across the length and breadth of South Africa, therefore to be heard of your service, advertisement plays a major role.

Partner with hairdressers for a recommendation from their clientele as you do the same for them

You can buy an advertising slot from telecommunication networks to advertise your business to the public through SMS

Buy an advertising space from local newspapers.

You can reach out to customers through social media, publish your work on your business social media handle, and it will keep attracting your customers.

How Much Does It Cost To Start A Salon Business In South Africa

The cost of establishing a salon business in South Africa differs depending on the type of services you can offer.

The cost of the business can range from as low as R5,000 operating from home or a small joint and as high as R1 Million setting up an ultra-modern salon for different kinds of services.

Is The Salon Business Profitable In South Africa

The salon business is very profitable, and that’s the main reason why it keeps attracting investors day in and out. The business can make about 35 – 50% profit on an annual basis.

Best Places To Start A Salon Business In South Africa

The following are some of the best places to set up your salon business in South Africa:

1. Along highways, main roads, and foot and vehicular traffic centers

2. Commercial areas

3. Industrial parks

4. Regional airport areas

How To Make A Salon Business Successful In South Africa

Make your salon business successful in South Africa by considering the following factors:

1. Choosing the right staff for your salon business is the best step to make. This is because the quality skill and work of your staff is what will keep customers coming back and recommending your service to friends and family

2. Set up an affordable price to attract customers from all walks of life

3. Operate special services for bridegrooms and others during special occasions, these type of services comes with a handsome profit

4. Good customer relationship is a requirement

5. Strategise an effective advertisement for your business

6. Offer special packages for customers

Challenges In The Salon Business In South Africa

The following are some of the challenges of the salon business in South Africa:

1. High competition in the salon business

2. Difficulties in finding the right staff for the business

3. Customer loyalty is a great challenge since it’s not easy to win customers due to the abundance of salon

4. Pricing is a major problem that, if not structured well it might go against customers or your business

5. High bills

6. Salon maintenance

7. Capital intensive to establish

Benefits Of Setting Up Salon Business In South Africa

Below are some of the benefits gained on setting up a salon business in South Africa:

1. Investors and employees are rewarded with a handsome financial income

2. Generates income for the government

3. Job creation

4. It has improved upon the fashion aspect of life

5. Some serve as a place of relaxation

That is the information we can provide on how to start a salon business in South Africa.

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Hair Salon Business Plan

This sample business plan will ensure you get your hair and beauty salon off to a good start..

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1. Executive Summary

Trend Setters is a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship.

We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work.

Our Mission: To supply services and products that enhance our clients’ physical appearance and mental relaxation.

Our Motto: “The Trend Begins Here!”

The timing is right for starting this new venture.

Patiently searching for six months for the perfect location, one was finally found. The demand from the owner’s clients, as well as the ambitions of the owner to one day start her own salon, and the procurement of highly professional and qualified beauticians to support the salon, has made this business one of great potential.

Curley Comb, co-owner with Roller Comb, Jr., her husband, has worked in a prestigious, upscale salon in MyTown, Texas for the past two years.

Curley has created a large client following through hard work and dedication.

Curley, and her talented team of beauticians, has what it takes to make this venture an extremely successful one. We expect our growing reputation to lead to new clients and beauticians to support our anticipated growth.

To achieve our objectives, Trend Setters is seeking additional loan financing. This loan will be paid from the cash flow from the business, and will be collateralized by the assets of the company, and backed by the character, experience, and personal guarantees of the owners.

1.1 Keys to Success

The keys to success in our business are:

• Location: providing an easily accessible location for customers.
• Environment: providing an environment conducive to giving relaxing and professional service.
• Convenience: offering clients a wide range of services in one setting, and extended business hours.
• Reputation: reputation of the owner and other “beauticians” as providing superior personal service.

2. Company Summary

Trend Setters will, upon commencement of operations, sell a wide range of beauty services and products. We will provide quality hair, nail, and skin services, along with top lines of beauty products.

What will set Trend Setters apart from the competition is our commitment to providing all of these services in one convenient location.

The salon will be located in a retail strip mall at 1234 Stylish Road, MyTown. The salon will utilize 1,540 square feet. The location is strategically situated on one of the busiest streets in MyTown.

It is a high profile area, with easy access from all parts of town.

2.1 Start-up Summary

After spending several months searching for a salon to purchase, the owners decided to start a salon from the ground up.

The start-up capital will be used for the design, leasehold improvements, and equipment of the salon.

3. Products and Services

Trend Setters is considered an upscale full-service beauty salon. We will offer a wide range of services that include:

• Hair: cuts, relaxers, perms, colors, shampoo, conditioning, curling, reconstructing, weaving, waving.
• Nails: manicures, pedicures, polish, sculptured nails.
• Skin Care: European facials, body waxing, massage.

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Hair And Beauty Salon Business Plan

Start your own hair and beauty salon business plan

Trend Setters Hair Studio

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

There is a need for a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship.

We plan to supply services and products that enhance our clients’ physical appearance and mental relaxation.

We will be targeting male and female clients who are fashion conscious and have disposable income.  Our clients are mostly women, but we will make sure to include men who fit the criteria as well

Competition

There are a number of salons like ours, but they are mainly in the very high income parts of MyTown and surrounding areas. We do not intend to compete with these so called “Day Spas.” We wish to offer a middle ground for those clients who can’t quite afford those high-end luxury salons.

Trend Setters will, upon commencement of operations, sell a wide range of beauty services and products. We will provide quality hair, nail, and skin services, along with top lines of beauty products. What will set Trend Setters apart from the competition is our commitment to providing all of these services in one convenient location.

Expectations

The forecast shows small profits leveling out in the third year. We believe this is realistic, even conservative. Of course we will be watching actual results on a monthly basis, and revising the forecast as necessary.

Financial Highlights by Year

Financing needed.

We plan on needing $60K owner’s investment and getting a $50K vendor financing to purchase equipment.

Starting costs include $50K cash cushion, $9K starting expenses before launch, and $53K tangible assets at launch.

Problem & Solution

Problem worth solving.

There is a demand for high fashion haircuts, manicures, and pedicures at reasonable prices. Men and women should not need to sacrifice their essentials to get a treatment that makes them feel good about themselves. 

Our Solution

Trend Setters is a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at a reasonable price/value relationship. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work.

Target Market

Market size & segments.

The market is our town, middle class, mostly women, so largely moms, working moms, and singles. 

We’re not doing formal market research because we know this market pretty well and we’re comfortable with market prospects in our town. We’ve been in this business for decades now. If we execute right, our customers will come in as we bring in our beauticians and barbers.

Current Alternatives

We’re well aware of a lot of competition, existing salons, all over town. We are not going to try to compete with the expensive spa salons around, with visibly fancy locations; and we are going to look nicer and price above the less fashionable strip mall and in-home options. 

We’re not pretending to be unique. We intend to bring in loyal customers because we are good people, easy to work with, good at what we do, friendly, and helpful. 

Our Advantages

Trend Setters wants to set itself apart from other beauty salons that may offer only one or two types of services. Having come from such a salon, Curley has realized, from talking with her clients, that they desire all of the services that we are proposing, but they remain frustrated because they must get their hair done at one place, and nails done at another. Although the focus of Trend Setters is hair services, we do wish to offer our clients the convenience of these other services in one location.

There are a number of salons like ours, but they are mainly in the very high-income parts of MyTown and surrounding areas. We do not intend to compete with these so-called "Day Spas." We wish to offer a middle ground for those clients who can’t quite afford those high-end luxury salons.

Our business atmosphere will be a relaxing one where clients can kick back and be pampered. Soft drinks will be offered to clients as they enter for service. Televisions will be located in the waiting and hair-drying area.

Keys to Success

The keys to success in our business are:

• Location: providing an easily accessible location for customers.
• Environment: providing an environment conducive to giving relaxing and professional service.
• Convenience: offering clients a wide range of services in one setting, and extended business hours.
• Reputation: reputation of the owner and other "beauticians" as providing superior personal service.

Marketing & Sales

Marketing plan.

We anticipate regular steady social media presence, in Facebook and Twitter. Our experience has shown that social media is the best advertising for this type of business. We will, however, run specials occasionally. We will also ask clients for social media referrals, and reward them with discounted or free services depending on the number of clients they bring. We will also offer discounts to the new clients who have been referred. 

We expect income to increase steadily over the next three years, as the reputation of the salon, its stylists and services become apparent to the general public. Second year revenues also anticipate the addition of one new stylist.

Locations & Facilities

The salon will be located in a retail strip mall at 1234 Stylish Road, MyTown. The salon will utilize 1,540 square feet. The location is strategically situated on one of the busiest streets in MyTown. It is a high profile area, with easy access from all parts of town.

Milestones & Metrics

Milestones table, key metrics.

The key metrics that will make this business a success is: 

• Average revenue per client per month.
• Average breakdown revenue from previous clients vs. revenue from new clients. We’ll develop specific standards as we go, so first we track. This will show us repeat business and new leads from word of mouth. 
• New clients from word of mouth. We’re going to have the discipline to ask new clients how they heard about us. As we develop the business we’ll track this metric and see how the different people compare. 
• Facebook likes and Twitter follows. We’ll develop standards as we develop the business. We need experience to see how this works. 

Ownership & Structure

Curley Comb, co-owner with Roller Comb, Jr., co founded and co own this llc 

Management Team

Curley Comb, co-owner with Roller Comb, Jr., her husband, has worked in a prestigious, upscale salon in MyTown, Texas for the past two years. Curley has created a large client following through hard work and dedication. Curley, and her talented team of beauticians, has what it takes to make this venture an extremely successful one. We expect our growing reputation to lead to new clients and beauticians to support our anticipated growth.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

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• We’ll be using a full commission model with stylists and barber getting 60% commission on revenue. Industry average runs 45-65%. We’re on the high end because we are not offering a guaranteed base. This is what we’re used to. The owner will take a straight salary plus dividends on profits. 
• We’ve looked at the booth rental model but we’re used to commission and that creates a more orderly process for payments too, with all stylists able to use our credit card account.
• There can occasionally be issues with commission base related to reporting revenue, but we are a small salon with the owner mostly present.  
• We project revenues lower than average over the first few months, and then stable. We anticipate annual increase to stay steady throughout the following year to account for the normal flow of new clients coming into the salon. Estimates for sales revenue and growth are intentionally low, while anticipated expenses are exaggerated to the high side to illustrate a worst-case scenario.
• Our direct costs are mainly stylist and barber commissions plus direct costs of the products we intend to sell, plus an estimate for the ongoing cost of products, supplies, etc. 
• Product sales are a minimal part of our market. We are not quite sure how much revenue will be derived from products, so we took a low-ball approach and estimated sales of $800 a month.  Also in the sales projections table are services such as nails and massages. We are not quite sure how much revenue these two services will generate. We are certain that in time these services will be a large part of our revenue, but to err on the conservative side, we estimate revenues from these services to be only $1,500 a month for the first year.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

We estimate initial purchase of $50,000 in equipment plus $1,000 for starting inventory and $2,000 for other current assets (supplies mostly) and $9,000 in initial loss for expenses incurred before launch. These include legal, location fix-up, early marketing expenses, branding, logo, and social media. 

We also estimate needing $50,000 cash cushion when we start. 

Total starting costs, therefore, are $9K in expenses plus $103,000 in assets including $53,000 tangible assets and $50,000 cash in the bank. 

Sources of Funds

We anticipate $60,000 in owner investment from owner savings, which shows up as paid-in capital in the initial balance; plus a 5-year $50,000 vendor/manufacturer loan to finance initial equipment. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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Hair Salon Business Plan

Cutting and styling hair is an art not many are adept with.

After all, it takes more than artistic talent to give cuts that suit different hair. And if you are someone who has this talent, then you might have thought of having your hair salon business.

Having your hair salon business is possible and just requires two things for success. That is, skills to make people’s hair look pretty and a hair salon business plan .

Here are a few facts about the hair salon industry and steps to setting up your business. But at the same time, the prospect of having a business is overwhelming to many of us. You don’t need to worry, though!

Industry Overview

The spa and salon market stood at an impressive value of $138.9 billion in 2020, and as people continue to return to salons after the pandemic, the market’s value is expected to rise at a higher rate.

The rise in personal care and beauty spending is one of the major reasons for the growth of the hair salon industry.

Apart from beauty purposes, hair salon businesses have also seen a rise due to the increasing demand for hair care services.

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Things to Consider Before Writing a Hair Salon Business Plan

Find your usp.

A hair salon gives several services including cutting, coloring, styling, and hair care. Apart from that, your customer service, prices, and a lot of other things make your services a package deal for your customers.

But out of everything that makes up your business, you have to do something that you do differently or better than your competitors. This would help you stand out and become memorable to your customers.

Build your client base

Although this is an ongoing process, getting a head start with building your client base is essential. Know what sources you can use to reach out to your clients, what makes them pick a hair salon service, what makes them come back, and so on.

Knowing these things gives you an edge over businesses that dive right in without an action plan.

Find the ideal location

The ideal business location will be both accessible and functional. A good location for a hair salon would be either located in a busy neighborhood or a place that people frequent between home and work.

A good location makes accessing your services more convenient and hence more in demand.

Design your salon for both form and function

Although, it is advisable to hire a designer to design your salon in a way that is functional and also looks appealing. But cash crunches, startup costs, and whatnot might leave lesser scope for a designer in your budget.

In such a case, you can design your salon with the help of catalogs, outside inspiration, and your creativity to make it as functional as possible and build upon and redesign it as your business grows.

Writing Your Business Plan

If you are planning to start a new hair salon business, the first thing you will need is a business plan. Use our sample hair salon business plan created using upmetrics business plan software to start writing your business plan in no time.

Before you start writing a business plan for your new hair salon business, spend as much time as you can reading through some samples of hair and beauty salon business plans .

Reading some sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample hair salon business plan for you to get a good idea about how perfect a hair salon business plan should look and what details you will need to include in your stunning business plan.

Hair Salon Business Plan Outline

This is the standard hair salon business plan outline which will cover all important sections that you should include in your business plan.

• Business Overview
• Our Services
• Goals and Objectives
• Keys to Success
• Katarzyna Doe
• Legal Business Description
• Hiring Plan
• Products & Services
• Market Trends
• Target Market
• Market Analysis
• Customer Profile
• Competitive Summary
• Competitive Advantage
• Sales & Marketing Strategy
• Sources of Income
• Sales Forecast
• Pricing Strategy
• Publicity and Advertising Strategy
• Personnel Plan
• Startup Costs
• Important Assumptions
• Profit & Loss Projections
• Balance Sheet Projections
• Cashflow Statement
• Business Ratios

After  getting started with Upmetrics , you can copy this hair salon business plan example into your business plan and modify the required information and download your hair salon business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample hair salon business plan

Need help writing your business plan from scratch? Here you go;  download our free hair salon business plan pdf  to start.

It’s a modern business plan template specifically designed for your hair salon business. Use the example business plan as a guide for writing your own.

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Miosalon Blog | Get better at your Salon Business

South African Beauty Salon Rules and Regulations: The Complete Guide

Greetings, South African beauty salon entrepreneurs! The beauty business can be as intricate as it is rewarding, especially when it comes to rules and regulations. But worry not, as this guide is designed to walk you through them.

1. Health and Safety Regulations

Prioritizing health and safety is critical. South Africa’s Occupational Health and Safety Act, 1993 (OHSA) provides guidelines for this.

Key Points:

• Ensure proper ventilation.
• Provide personal protective equipment to employees.
• Limit noise to acceptable levels.

2. Sanitation Rules

Maintaining a hygienic salon is essential for the health of your clients and staff.

Sanitation Checklist:

• Sterilize tools after each use.
• Clean surfaces regularly with approved disinfectants.
• Wash towels and other reusable items after each use.
• Dispose of single-use items safely and responsibly.

3. Licensing Requirements

You will need a business license to operate a salon in South Africa. Local municipalities may also have additional requirements.

List of Potential Licenses Needed:

• Business license
• Business permit for foreign nationals
• Local municipality permits

4. Employment Laws

The Basic Conditions of Employment Act, 1997 (BCEA) and the Labour Relations Act, 1995 (LRA) govern employment practices in South Africa.

Key Employment Law Points:

• Adhere to minimum wage regulations.
• Follow guidelines on work hours, overtime, and leave.
• Comply with laws against unfair labour practices and discrimination.

5. Professional Ethics

Maintaining professional ethics is key to building trust with your clients.

Professional Ethics Checklist:

• Respect client confidentiality.
• Provide transparent pricing.
• Avoid conflicts of interest.

6. Building Regulations

Your salon must comply with local building codes and fire safety regulations, as well as accessibility standards.

7. Customer Service Standards

Good customer service can set your salon apart from the rest.

Customer Service Checklist:

• Train your team in effective communication.
• Honour appointments and respect clients’ time.
• Handle customer complaints promptly and professionally.

8. COVID-19 Guidelines

Your salon should follow COVID-19 safety guidelines outlined by the South African Department of Health.

COVID-19 Guidelines

9. Product Regulations

Use beauty products approved by the South African Health Products Regulatory Authority (SAHPRA).

10. Environmental Regulations

Ensure your salon complies with local environmental regulations regarding waste disposal and minimizes water and energy use.

11. Privacy and Data Protection Laws

If you collect customer data, you must comply with the Protection of Personal Information Act (POPIA).

12. Insurance and Liability

Insure your salon against potential risks such as property damage, accidents, or lawsuits.

Types of Insurance

13. Staff Training and Development

Ongoing training can help your staff stay up-to-date with the latest trends, techniques, and safety guidelines.

14. Rules for Minors

For certain procedures on minors, like ear piercing or hair colouring, parental consent might be required. Always check local laws.

understanding and adhering to the various rules and regulations is a critical part of running a successful beauty salon in South Africa. This guide is meant to serve as an overview, but be sure to consult with a local legal expert for advice specific to your area. Stay informed, stay compliant, and keep creating beauty! Book a free demo today.

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A step-by-step guide on how to start a spa business in south africa.

• March 27, 2023
• Beauty Tips

Introduction to how to start a spa business in south africa

We will discuss how to start a spa business in south Africa. If you’re interested in starting a business that promotes wellness and relaxation, a spa business may be the perfect fit for you. A spa business is a place where people can go to receive various services, such as massages, facials, and body treatments, that are intended to help them feel rejuvenated and refreshed. Starting a spa business in South Africa can be a great way to tap into the growing demand for wellness services in the country.

Operating a spa business in South Africa requires obtaining the necessary licenses to ensure compliance with industry regulations and legal requirements.

In this blog post, we’ll explore the steps of how to start a spa business in south africa

Conducting Market Research

Market research is the process of gathering and analyzing information about your potential customers, industry trends, and competitors. This information helps you make informed decisions about your spa business and develop strategies that will set you apart from your competitors.

To identify your target market, you need to understand the demographics, interests, and needs of the people who are most likely to use your spa services. You can conduct surveys, focus groups, or analyze online reviews and social media to gather this information.

Analyzing your competitors can also help you identify gaps in the market and determine how to position your spa business for success. By studying their pricing, services, marketing strategies, and customer reviews, you can gain insights into what is working and what isn’t in the industry.

Understanding consumer demand and trends is essential for developing a spa business that meets the evolving needs of your customers. You can gather information on emerging trends and consumer behavior by conducting online research, attending industry events and trade shows, and analyzing market reports.

Evaluating the feasibility of your spa business idea involves assessing the demand for your services, estimating your start-up and ongoing costs, and projecting your revenue and profitability. This information helps you determine whether your business idea is financially viable and set realistic goals for your spa business.

Developing a Business Plan

Developing a comprehensive business idea is essential for setting goals and objectives and creating a roadmap for success.

Key elements of a spa business strategy include market analysis, service offerings, pricing strategy, marketing plan, financial projections, and budgeting.

Your business strategy should also include a clear management structure and a description of your team’s qualifications and roles.

Setting realistic financial projections and creating a budget will help you understand your business’s financial needs and ensure that you have the necessary resources to sustain your operations.

Having a well-thought-out business idea can also make it easier to secure funding from investors or financial institutions.

Registering Your Business

When starting a spa business in South Africa, it is important to register your business with the appropriate authorities to ensure compliance with industry regulations and legal requirements. Choosing a suitable business structure, such as a sole proprietorship, partnership, or company, is the first step in the registration process.

Registering with the Companies and Intellectual Property Commission (CIPC) is also necessary to obtain a business registration number and register your business name. Additionally, depending on the services you offer, you may need to apply for permits and licenses from relevant authorities, such as health and safety or environmental agencies.

By registering your business, you establish credibility with potential customers, suppliers, and investors. This can also protect your personal assets and limit your personal liability in case of legal issues.

Furthermore, it allows you to access funding opportunities, such as loans and grants, that are only available to registered businesses.

Finding a Suitable Location

When choosing a location for your spa business in South Africa, it’s important to consider various factors that can affect its success. The location should be easily accessible to potential customers and highly visible to attract foot traffic. Additionally, it should have ample parking space for convenience.

Negotiating favorable lease agreements is crucial to minimize overhead costs, and creating a welcoming and relaxing physical space can enhance the overall customer experience .

The ambiance and decor of the spa should align with the target market and create a tranquil atmosphere. Additionally, the spa’s location should be in a safe and secure environment to ensure customer safety and satisfaction.

Purchasing Equipment and Supplies

Starting costs for a spa business in South Africa can vary depending on several factors, including the size and location of the business, the services which are offered, and the equipment and supplies needed.

To provide high-quality spa services, purchasing quality equipment and supplies is a must. Some essential equipment for a spa business includes massage tables, steam rooms, hot tubs, and other spa equipment.

Finding reputable suppliers is crucial in ensuring that the equipment and supplies are of high quality and meet industry standards. It is also essential to budget for the cost of equipment, maintenance, and replacement to avoid unexpected expenses that could affect profitability.

Investing in the right equipment and supplies can improve customer satisfaction, increase productivity, and save costs in the long run.

Hiring Qualified Staff

Hiring qualified and experienced staff is vital to providing excellent services to customers and creating a welcoming atmosphere in your spa business. Before hiring staff, you need to determine your spa’s staffing needs, including the number of employees and their roles and responsibilities.

Recruiting and selecting employees can involve a range of methods, such as job postings, referrals, and interviewing candidates. It’s crucial to evaluate potential employees’ qualifications, including their education, experience, and skills, as well as their personality and attitude toward customer service.

Providing training and development opportunities can help your employees acquire the necessary skills and knowledge to excel in their roles and improve customer satisfaction. Offering continuing education and professional development opportunities can also help retain qualified and motivated staff.

By investing in your employees, you can create a positive workplace culture that fosters employee loyalty and contributes to the long-term success of your spa business.

Developing a Marketing Strategy

Defining your spa’s brand and messaging, identifying marketing channels and tactics, and measuring the success of your marketing efforts can help you attract new customers and retain existing ones.

Creating a positive online presence, offering loyalty programs, and partnering with local businesses can help increase brand awareness and customer engagement.

In addition to the above strategies, organizing events or promotions, creating visually appealing marketing materials, and leveraging social media platforms can also be effective ways to promote your spa business and reach your target market. It’s important to continually evaluate and adjust your plan of marketing based on consumer feedback and market trends to ensure the success of your business.

Digital marketing is a crucial element in promoting your spa business and creating brand awareness. By using social media platforms, email marketing, search engine optimization (SEO), and online advertising, you can reach potential customers and provide them with information about your services and promotions.

In addition, creating a great user experience both online and in-person can help build customer loyalty and drive referrals. This includes having a user-friendly website with clear and concise information, offering an easy booking and payment options, and providing exceptional customer service throughout their visit.

Determining appropriate operating hours for a day spa involves considering factors such as customer demand, staffing availability, and local competition, and finding a balance between meeting customer needs and maximizing operational efficiency.

Understanding the Profitability of a Spa Business

Factors that affect profitability in the South African spa market include competition, location, service offerings, pricing, and customer satisfaction.

Strategies for increasing revenue and reducing costs, such as upselling and cross-selling services, streamlining operations, and monitoring expenses, can help improve profitability.

Additionally, regularly monitoring key performance indicators (KPIs) such as average revenue per customer, customer retention rate, and cost per treatment can provide valuable insights into the financial health of your business and help you make informed decisions to improve profitability. Understanding your spa’s profitability and making data-driven decisions can help you stay competitive and sustain long-term growth in the South African market.

Implementing an online booking system can greatly benefit a day spa or beauty salon business. It allows customers to conveniently schedule appointments at any time, and it can also help reduce administrative work for the staff.

For hair removal services, it’s important to have knowledgeable and experienced staff who use safe and effective methods. Marketing these services can involve targeting specific demographics and offering promotions to attract new customers or target customers. A massage therapist opening a day spa as a small business can offer a variety of massage therapy services to clients.

Can I open a beauty salon with no qualifications?

In South Africa, there are no specific qualifications required to open a salon. However, it is highly recommended that you have a background or training in the beauty industry to ensure that you can provide quality services to your clients.

Additionally, having relevant qualifications may also help you to obtain the necessary licenses and permits for your salon.

What qualifications do you need to open a beauty salon?

While there are no specific qualifications required to open a salon of beauty in South Africa, it is recommended that you have relevant qualifications in the beauty industry. These may include certificates or diplomas in beauty therapy , hairdressing, or other related fields.

Having qualifications can help you to provide quality services to your clients, attract and retain skilled staff, and potentially obtain necessary licenses and permits for your salon.

Legal requirements for a beauty salon in South Africa

To operate a salon of beauty in South Africa, you must comply with certain legal requirements. These may include registering your business with the Companies and Intellectual Property Commission (CIPC), obtaining a health and safety compliance certificate, and complying with local by-laws and regulations.

You may also need to obtain permits and licenses, such as a business license, trading license, or health and safety permit, depending on the nature of your salon and the services that are offered.

Salon license South Africa

To operate a salon in South Africa, you may need to obtain certain licenses and permits, such as a business license, trading license, or health and safety permit. The specific licenses required may vary depending on the nature of your salon and the services that are offered.

For example, if you offer beauty treatments that involve the use of chemicals, you may need to obtain a chemical license. It is important to research and complies with all relevant licensing and permit requirements to ensure that your salon operates legally and safely.

How much does it cost to open a spa in South Africa?

The cost of opening a spa in South Africa can vary greatly depending on factors such as location, size, equipment, and staff. Generally, it can cost anywhere from R500,000 to R2 million or more to open a spa, including start-up costs such as rent, equipment, supplies, and licensing fees.

Hair salon requirements for opening

To open a salon in South Africa, you must meet certain legal requirements, such as registering your business, obtaining necessary permits and licenses, and complying with health and safety regulations. You may also need to have a professional cosmetology license or hire licensed cosmetologists to provide hair services.

How much does it cost to open a hair salon in South Africa?

The cost of opening a salon in South Africa can vary depending on the size and location of the salon, as well as the equipment and services offered. On average, it can cost between R50,000 and R500,000 to start a salon, including costs such as rent, equipment, supplies, and licensing fees. However, larger or more luxurious salons can cost significantly more.

how to start a spa business in south africa quick overview

To start a successful spa business in South Africa, you need to follow key steps, such as conducting market research, developing a business strategy, registering your business, and hiring qualified staff.

here are some additional steps to consider when starting a spa business in South Africa:

Develop a unique selling proposition (USP) for your spa business that sets it apart from competitors.

Create a website for your spa business that showcases your services, pricing, and location.

Set up social media accounts for your spa business to connect with potential customers and share updates about your business.

Consider offering gift cards or packages to encourage repeat business and referrals.

Develop relationships with local businesses and organizations to increase your spa’s visibility and build your customer base.

Invest in ongoing staff training and development to ensure that your team can deliver high-quality services that meet the needs of your customers.

Continuously monitor and adjust your spa business strategy to stay competitive and meet the changing needs of your customers and the industry.

In conclusion, the spa industry in South Africa presents a lucrative opportunity for entrepreneurs interested in the wellness and relaxation sector.

Conducting thorough market research, developing a comprehensive plan for the business, registering your business, finding a suitable location, purchasing equipment and supplies, hiring qualified staff, developing a plan for marketing, and understanding the factors that affect profitability are all essential steps in starting and running a successful spa business.

By implementing these steps, you can build a competitive and profitable spa business that caters to the needs of your target market and positions you for long-term success. Remember to continuously monitor your performance and make adjustments to your strategy to stay ahead of the competition and maintain profitability. With dedication, hard work, and a commitment to excellence, you can achieve your dream of owning a successful spa business in South Africa.

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Complete Guide to Salon Expenses in South Africa for 2024

Aside from the obvious salon expenses, like equipment and rent, salon owners and managers are required to think about the typical salon expenses in daily operations. Do not worry- this isn't as hard as it sounds.

What You Will Learn

We'll discuss some common salon expenses you must plan for, how to budget cash for these expenses and what you can do to reduce or eliminate them.

Jump to The Section You Like

What is salon overhead, what are some salon expenses, salon expenses vs income, how to reduce your salon overhead costs, salon expense sheet template.

The term "Salon Overhead" covers various expenses and typically includes things like your salon equipment, salon product inventory, and the supplies that your stylists utilise- including hair colour or styling products. It also covers your financial expenses, such as personnel payroll, any taxes that you pay, maintenance, and business insurance coverage for your salon. These are all things that you'll need to understand and keep track of to remain in control of your overhead costs.

Now, let's have a look at all of these items in a little bit more detail.

Salon expenses can be divided into two categories: Recurring Expenses and Occasional Expenses. While it's crucial to keep an eye on a salon's occasional expenses, it's not always possible to anticipate what exactly these fees will be or how they will affect your profit margins. Recurring expenses, however, can and must be accounted for. They're the average prices that need to be paid each month, so you'll have a good idea of how each recurring expense will impact your profits and bottom line.

Let's begin with a breakdown of recurring expenses. Recurring expenses are the costs that you can expect to pay routinely, typically on a monthly basis. These costs are much easier to budget for, especially if you utilise salon software to track your overhead in one place.

Some Salon Monthly Recurring Expenses Are:

Staff Salaries and Salaries

People frequently ask, "What is the largest expense in operating a salon?" The answer is generally salaries. The average stylist in South Africa makes around R 5,500 per month . If you have a lot of personnel, this can rapidly add up. Keep an eye on your payroll costs.

Payroll (social) Taxes

These costs will vary, depending on your business location. Ensure to research what's needed in your area and set aside some money to cover these prices.

If you're still selecting a salon business location, have a look at the typical rent rates in your area online. These will depend a lot on location. Businesses typically pay higher rent than residential property, so it's vital to stay informed and have a NZ dollar amount in mind when preparing your salon's budget. If you can save on rent, this will add a lot more money to your total income by lowering the overhead expense.

Licenses and Permissions

Business licenses are necessary, but they vary depending on the state, province, or city. You will probably need health and safety assessments and certificates. In some places, you'll be free to offer retail products connected to your salon. However, in other areas, you will need to pay for a license. Check your state's website and the site for your city to see what's needed.

More than likely, you'll ultimately wish to purchase some extra education, training, or professional advancement for each stylist at your business. Salons typically look for brand-new training to keep up to date with the most recent hair trends or methods. The hair industry is constantly changing, and this means that businesses have to keep up. Education is important here. A brand-new training course or license won't be free. Still, if salon owners deal with each team member and pick carefully, the long-lasting benefit from education investments will add a lot to your revenue and raise your salon's month-to-month earnings. Plus, it's an excellent way to develop employee commitment.

Salon Software and POS System

These systems vary in price, depending on your salon's requirements. Select exactly what metrics you wish to track (for example, would you like to know when you should reorder your product stock, what appointments are coming up, or just how much profits each stylist has generated so far)? You can find something that fits your requirements when you make this decision.

A POS system is necessary for processing transactions. However, bear in mind that it may also require particular equipment (such as iPads, if it utilises wifi) and receipt paper.

No matter what services they offer or what industry they're in, businesses all have to pay for utilities. Salons all need heat, electrical power, and water, obviously. It's a smart idea to look up the typical costs for these services in your location as prices may depend on a particular area.

In addition, you'll have to think about the price of internet service and a phone line. A reputable internet connection is important for processing payments, maintaining your salon's social networks presence, and doing any internet marketing. 

Back Bar Supplies

When you begin your salon business, you should have sufficient supplies and basic tools ready for each team member to work with. Keep in mind to include these business expenses in your month-to-month expense budget. A salon's back bar supplies normally include shampoos, sanitisers, conditioners, styling items, and any chemicals used during services (such as perm solution and hair colour). If you also run a nail salon, you'll have to budget for the cost of speciality polishes and manicure products, too.

Salon Product Inventory

This is not the stock that your team members utilise on clients. It's your supply of retail items. A large part of a salon's revenue results from product sales, so it's important to have sufficient stock all set for your team to make add-on sales and recommendations.

Salon Equipment Leasing

Nowadays, leasing is among the most popular ways to purchase equipment. Instead of paying in full or putting it on credit, you'll establish a defined regular monthly payment toward the price of your equipment. At the end of the leasing period, your business will typically have the option to settle the final amount and own the equipment outright or extend your lease with the latest gear. By doing this, you can minimise any maintenance concerns and keep your salon at the cutting edge of the haircutting industry.

Online and Credit Card Processing Charges (Fees)

Charge card processing charges can differ a bit, depending upon your service provider. The typical charge that you'll come across is around 1.5% to 2.7%, but be cautious. Some providers will charge as much as 3% or more. As a salon owner or manager, be sure to do your research. These apparently minor differences can rapidly eat up your earnings.

Salon regular monthly expenses for marketing vary extensively, depending on your business strategy and the tools you use. An e-mail marketing campaign or a salon newsletter can be relatively economical, particularly if you have a team member who can help out with this. The price of putting an advertisement online or in print, especially if you work with a professional to do it, can be quite high.

Insurance Costs

Business insurance coverage won't be your most significant overhead expense. However, it may very well save your business and your good night sleep from overstressing about every little thing that can go wrong. The prices will differ significantly depending on your salon services, location, and the coverage you choose. There's also the possibility that companies will suggest extra business services, such as medical insurance for your team members. Not all salons select to provide this, but it might be something to consider if you wish to bring in and retain skilled staff. Do your research and see which suppliers fill your needs, and make sure to compare quotes.

Your Occasional (one-off) Salon Costs Will Be:

Salon Opening Costs

Salon start-up expenses will include hiring stylists and personnel, retrofitting and cleaning your brand-new site, and advertising expenses for your new business.

New Equipment Purchases

If you choose not to lease equipment, you'll need to buy it. And the figures will depend a lot on the kind of salon business. Is it exclusively a hair salon? Does your business offer customers nail care services or other specialised beauty services, such as tanning or waxing? These are all related expenses that can add to your basic equipment cost. Your basic hair salon equipment will include everything from chairs, shampoo stations, hood dryers, and hairstyling/ cutting tools. You can also always begin small, adding more equipment as you need it.

Salon Fit-out

A properly designed salon that stands out is essential to be competitive and produce more earnings. A salon is more likely to succeed if it feels open and welcoming, not cluttered or dated. It's crucial to budget for this when opening a new salon. Think about setting aside a portion of your revenues each month towards future enhancements or updates.

This is a big one. Not big in regards to expense; it's simply extremely important. It is a great time to get imaginative and shop around. And if you shop around carefully, good signs can be surprisingly affordable. That said, a professionally made sign can also cost several thousand rands, depending upon your requirements.

Having online exposure is key to success as a salon nowadays. Consider investing a little money (or time, at the very least) in a salon website. It does not have to be expensive, although you can work with a professional web designer if you want to benefit from that "wow factor." It's also okay to start with something simpler, like an online layout.

Miscellaneous Expenses

These are everything from the money float in the till to any rand amount you need to spend on random emergencies. It's a smart thought to have at least R 5000 put aside to pay for unforeseen things.

To better understand the importance of tight salon expenses management, let's take a look at some salon industry stats. Based upon the salon industry research done by salon coach Derek Hull from Salon Ops, when we compare:

• Salon income - money generated from sales - vs.
• Salon expenses - money spent in order to generate the sales

The truth can be rough:

• 90% of salons where the owner is also working behind the chair operate on a 5% loss. It basically implies that the owner funds the loss from their earnings.
• Just 10% of salons where the owner is also working behind the chair generate a 6.5% revenue on average. It doesn't sound too impressive, does it? Continue reading and learn how to lower your salon expenses.

Understand What Exactly Drives Your Overhead

Have regular meetings and talk with your staff. Make sure that they feel comfortable complaining to you about anything related to the salon that they think is troublesome or just not effective. Because they're on the front lines, staff members will often discover ineffective expenses first. Show that you're on their side, value their input, and then develop a strategy to tackle the most substantial expenses. You'll be shocked by how much time and money you'll save. You'll also have happier staff and more satisfied customers.

Use Salon Management Software and POS System

Effective Salon Software and a POS system will save you money and time since it will track and record transactions as they happen. That is especially handy for processing online transactions and credit card payments for your salon. Speaking from experience, the advantages of salon software far outweigh the costs because of the time you'll save. This is important for your business success and your mental health. You can set schedules, track reservations, examine your stock of products, and see which stylists are reaching their targets, all in one place. It will cut way down on the stress of day-to-day business operations and help free you up to focus more on your customers.

Salon Inventory

Unsold or expired items won't make you revenue. It's important to have enough stock for sales and salon demands. On the other hand, products use up space. Too much mess can look less than professional and compromise salon safety. You need to find the correct balance. Make sure to track this stock and fill it up just when required to avoid taking up space (which can fill up rapidly in a busy salon) or creating waste. Lost products or surplus stock can eat into your earnings. Think about purchasing some salon software to track fast-moving products and assist in handling your orders. You can even set up smart ordering when the stock reaches minimum levels. It will optimise your profit/ expense ratio and get rid of needless waste.

Reduce Over-Staffing

You can utilise scheduling software to avoid openings in between appointment reservations, send out automatic confirmations and reminders, and fill out any downtime in your salon. That will also free your staff up to look after other duties.

Make Smart Use of Downtime

When your personnel aren't busy with clients, make certain they clean, place stock orders, post material to the salon's social media, or assist with other everyday duties.

Cross Train Your Staff

In the long run, everyone will benefit from this. Ideally, your personnel all understand how to carry out each service, work the till or add to the salon's site. Anybody can fill in where they're needed, and you won't have to overstaff. Additionally, they'll acquire valuable experience for their resumes.

Retain Your Best Stylist

Remember, recruitment and training cost money. If you can keep your best/ most popular stylists, you'll retain the customers (and income) they bring in, too. The secret here is to have good communication. Ensure that you have an effective relationship with each stylist and keep the work environment productive.

Reduce Administration Work

Do you truly need that many receptionists? What about somebody whose whole job is simply managing the stock space and orders? Salon scheduling and management software can get rid of the necessity for this much extra help. You can quickly access figures for ordering products and balancing your books. The majority of young clients also prefer to book visits online in their own time. Make it easy for them.

Educate Yourself

Do your research and get to know how much things cost. Look for any bulk promos on products or benefit plans that providers have. Learn what expenses you can claim on your income tax later on.

Utilise Your Salon Space Well

Prevent mess or wasted space. It looks less than professional and can end up being a safety hazard. Make sure that you make the most of each service space. A popular rule of thumb is to have one backwash for every three service stations.

Usage Smart Salon Marketing

Things like e-mail marketing, salon loyalty programs, and encouraging customer reviews are effective and economical ways to increase your revenue margins. You can also have incentives in place for customer referrals. Obviously, all of this can effortlessly be managed using salon marketing software.

Use a Salon Expense Calculator

Put together with a salon expense spreadsheet, these tools will help you remain mindful and on top of your expenses. You can track income and expenses over time and see where you're spending the most. After that, you can make any changes or get rid of unneeded expenses.

Create a Budget Plan for Financial Expenses

The beauty salon budget that you create needs to include financial costs, along with any purchases. That begins with site rent, any business license costs needed in your state or province, in addition to staff member wages and payroll. You'll want to take taxes into account, too. Always set cash aside for taxes when you're computing profit. It will save you from stressing over a great deal of the fees in the future. Think about working with an expert to assist you in filing your taxes and reviewing your salon's accounts, even if you like to do your own accounting.

We have prepared a useful template that will assist you in better managing the expenses in your salon.

Fill out the form below to get your complimentary salon expenses template.

Running a salon is not cheap. That stated, salon owners and managers can make a healthy revenue if they are smart and use their resources well. The trick is to be mindful and get rid of wasted time, wasted products, and wasted effort. All of these things have a monetary value. Salon expenses don't need to be a big deal. If you budget thoroughly and interact well with your clients and staff, it's quite easy to remain on top of them. And if you enjoyed this post 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 be happy to address your questions.

Misclassifying core expenses as special items: Cost of goods sold or selling, general, and administrative expenses? https://onlinelibrary.wiley.com/doi/abs/10.1111/1911-3846.12234

Trends in retirement income plan administrative expenses https://books.google.com/books?hl=ru&lr=&id=mZtTtPOGCjgC&oi

The information content of earnings, revenues, and expenses https://www.jstor.org/stable/2491058

About the author Bartek Kulasza

Bartek Kulasza creates informative content that focuses on efficient business management. He covers salon software, marketing and sales, budgeting and reporting, salon design and equipment, inventory management, growing customer base, helping businesses optimize operations, enhancing customer experience, and increasing profitability.

• Salon Expenses in South Africa

How To Start A Spa Business In South Africa

What is a Spa?

A spa is a business that provides a variety of services for the purpose of improving health, beauty and relaxation through personal care treatments such as massages and facials.

1. Write a business plan

It’s really important to write a business plan. If your day spa is going to be a journey, think of this part as starting the GPS. It’ll guide you to your destination and help organize your plans and priorities.

2. Create your brand

Start with the fun part—just don’t think it’ll be easy.

Selecting a name for your business and creating your brand are essential first steps. You’ll figure out what you want to be called, how you’ll interact, and how you want to look—think of it as how you’ll tell your customers about your business’s personality. 

Your visual brand identity will appear on signs, inside your spa, and on your marketing materials. Major facets include your:

• Color palette
• Photography

3.Decide which spa services you’ll offer

The International Spa Association (ISPA) defines a business as a spa if it offers at least two of these services to spa-goers: 

• Skincare (includes makeup)
• Massage care
• Body treatments (includes salon services and hair removal)

You may already know how to do one or more of these, and that’s great. But, if you’re offering a service you aren’t familiar with, know you’ll need to hire an employee or bring in a partner who is. Or, you’ll need to educate yourself.

4.Figure out what spa equipment you’ll need

The size of your location and the services you offer should dictate the equipment you’ll need before starting.

Day spas may include showers and lockers for guests, and soundproof rooms if you plan to offer relaxing massages. Other items could include:

• Massage tables/chairs
• Washers and dryers for linens
• Hot towel warmers
• Eye and face masks
• Shower supplies (soap, shampoo, conditioners)
• Massage oils, incense, candles, and essential oils
• Office equipment, like a front desk, chairs, and point-of-sale devices
• Reception area furniture
• Pedicure ottoman
• An esthetician’s stool
• Wax warmers
• Hair removal lasers
• Exfoliating devices/pumice stones
• A Jacuzzi or other hydrotherapy tub or shower.

5.Decide on an audience

You may have an idea about who you want your new business to serve, but really put some thought into it and write it down.

Massage is a very popular service from a customer preference standpoint. 

Seventy percent of regular of female spa-goers and 60% of male spa-goers told researchers they’d had one in the past year, according to the 2020 Spa Trends in America Report.

These spa-goers may be worth targeting as you decide who you want to serve.

6. Retail sales and experience

Starting a retail operation means you’re willing to sell stuff hair and skin products, equipment, merchandise, and most importantly, gift cards at your day spa.

Retail sales can be tricky you’ll have to hire or train staff to sell products and track inventory but the payoff can add another 10% or more of revenue to your spa’s bottom line. And, in a pandemic, retail can be an important revenue stream. 

Also, think about the experience. How will a client make a retail purchase? 

They could buy a product or merchandise from your front-desk staff. With the right spa software, service providers can easily upsell and recommend the perfect product during the service. If you’re going to sell products and merchandise online, it’s equally as important that the experience be easy to navigate.

Think about how you’ll make a sale will you have options for cash and cashless purchases? Since retail can really prop up your bottom line, make sure this is an easy and painless process for your clients and your staff. 

7.Marketing

Now it’s time to tell new clients about your spa. 

Marketing is a catch-all term with lots of facets, so think about the most appropriate sort of marketing for your target customers in your area. 

A few good ways to reach customers are:

• Social media may spring to mind first, and it’s a great way to get the word out. Running promotions on Facebook and Instagram maybe offering grand opening discount services or referral codes attracts the public’s attention and gets them to spread your reach.
• Get our step-by-step guide to Facebook marketing and guide to Instagram marketing to start you in the right direction. 
• Eventually, you’ll want to incorporate email campaigns targeting both your existing clients and new prospects with incentives to get them in the door. 

By now, you should pretty much know how much money you’ll need to run your day spa.

In addition to the above, include the cost of rent (more on choosing a location soon), and the people you need to hire, in addition to everything else you’ll need to pay to start your business up and keep it running. 

Choosing the right location for your business is exciting. Deciding on where to hang your shingle what sort of neighborhood you’ll fit into budget- and lifestyle-wise sets the tone for your spa. 

10.Financing

You’re nearly ready to open a spa business. You’ve scoped out a location, written a business plan, and you’ve got a passion for making clients feel great. 

Now it’s time to find the financing to fund your dream.

There are many ways to find the money to get a business off the ground. Some people self-finance and/or take personal loans from friends and family to help themselves get established. Others immediately look for a small business loan. 

11. Choose your spa management software

Scheduling staff and clients, marketing, managing payroll, reporting… for a small business owner, there’s no end to the job of running your spa effectively. 

That’s where a great spa software system can step in to help. Look for one that handles your needs and automates as many tasks as possible so you can spend as much time as possible focusing on your clients and staff.  

12. Create a great user experience

The word ‘seamless’ is overused. But it’s also exactly what you want your customer’s experience to feel like any time they visit your spa and website.

Put yourself in your client’s slippers while you’re crafting your physical and web spaces.

13. Website

A few things to remember when designing a website is to make sure it’s clear, usable, and has a cohesive feel from your home page to a payment page and everything in between. 

It should perform well on mobile devices to be responsive, which means fitting any screen. 

Security is a big consideration for clients if they’re making credit card purchases, they’ll want to trust that data is securely stored.

Just as clients wonder about their digital security, they’re also thinking about the physical security of their things.

Provide a secure locker area or cubbies that your front desk staff can monitor while people get spa or salon treatments. If people will need to change their clothes for certain services, you may want to provide a locker area in the bathrooms or designated changing area.

15.Soundproofing

Investing in soundproofing is a good idea if you’re selling peace and relaxation. Nobody wants their deep-tissue massage interrupted by hearing someone in the next room over.

16.Lighting and music

Take the time to get the lighting and music correct in your day spa. 

These details help set a calm, relaxing tone. Put people in a peaceful mood they’ll remember the next time they’re thinking about seeking out spa and salon treatments.

17.Hiring, training, and retaining staff

You might say we save the most important or most pressing part of starting a new spa for last. 

The spa industry is at a major crossroads right now. There are more people than ever employed in day spa work, but there are also a record number of spa and salon job openings, according to ISPA. 

18.Deciding what staff you need and what you’ll pay them

Look at the spa and salon services you plan to offer. If you can’t perform them or you’ll be busy, you know, running your small business you’ll need to staff up.

Think about what you want your staff to do are they going to perform services as well as check people in and make retail sales? Or do you want a dedicated front-desk employee? If you’re looking for a jack-of-all-trades, you’ll have to train them on your systems and software, so take that into account. 

Additionally, if staff are going to perform services that must be licensed, figure out if they’ll need training and their own license, or if they can operate under yours.

19.Training

Once you make your first hire congrats! you’ll need to train them to your specifications.

20.Create an onboarding plan

Some businesses see a lot of success with a very carefully thought-out onboarding plan. A new hire is introduced to all relevant fellow employees and gets a feel for how each part of the business runs in order to understand their place within it. This may occur over a day or a few days, weeks, or even up to a few months. 

By starting slow, you may save time down the road. 

21. Provide software training

If this hire is going to handle sales and your business management software, they’ll need extra training on your systems and procedures, as well as logins. 

Some business management software programs offer free trainings for every level of staffer from front-desk to management.

Frequently Asked Questions (FAQs).

How much does it cost to start a spa business in South Africa?

A standard 65 square meters Perfect 10 salon costs roughly R1 million, depending on the size and nature of the store. This includes an R100,000 franchise fee, but excludes VAT, lease deposit, and recommended working capital.

Is spa business profitable in South Africa?

Having a beauty salon can be a lucrative business in South Africa. According to the head of the South African Spa Association, Dr. Nadine de Freitas, growth in the spa industry, despite the recession, is between 15-20%, and there has been an increased demand for both male and female beauty treatments.

Do spas make good money in South Africa?

Industry experts estimate the average day spa owner salary is R80,000 per year or more, with many owners earning more than R100,000 annually.

How many spas are in South Africa?

The industry employed approximately 5,500 people and there are more than 700 spa facilities in the country. South African Spa Association (SASA) statistics reveal that many spas are linked to hotels and resorts and that more than 80% of spas are locally-owned.

Do you need a license to do nails in South Africa?

Can you do nails without a qualification In South Africa? Although nail technicians don’t necessarily need formal qualifications, at least some basic form of training or experience with nail treatments is needed and you will need to obtain professional insurance in order to legally carry out nail services to clients.

Is owning a hair salon profitable in South Africa?

A hair & beauty salon is a profitable business to start in South Africa. As the average income increases together with the black middle class there has been an increase in the demand for such services.

Is the massage industry growing in South Africa?

Employment of massage therapists is projected to grow 32 percent from 2020 to 2030, much faster than the average for all occupations. About 23,300 openings for massage therapists are projected each year, on average, over the decade.

How much do nail salon owners make in South Africa?

How Much Revenue Does The Average Nail Salon Make? It pays on average to be a nail salon owner with a salary of R58,000. The average Nail Salon Owner salary is between R40,000 and R75,000.

What do you need in a spa in South Africa?

The equipment typically needed for a day spa includes massage tables, manicure and pedicure stations, and reclining facial chairs. Hydrotherapy equipment may include a Scotch hose, a hydrotherapy tub, a sauna, a Swiss shower, a Vichy shower, a Jacuzzi/whirlpool tub and a steam cabinet.

How do salon owners pay themselves in South Africa?

Hair salon business owners make a salary of R70,000 per year on average. The actual amount can range from R20,000 to over R300,000. Most earn between R50,000 and R100,000. Salon owners should pay themselves based on the work they are putting in as long as their payroll and expenses can otherwise be met.

Is massage a good career in South Africa?

An Enjoyable Career

Overall, massage therapists report a high level of job satisfaction for the work they do. In the 2021 U.S. News 100 Best Jobs survey, massage therapy was ranked among the best career paths. By pursuing a degree, you can enjoy a high level of job satisfaction, as well.

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Jpmorgan says bhp plan risks $4.3 billion s. africa outflow.

(Bloomberg) -- A successful takeover of Anglo American Plc under the arrangements BHP Group has offered could lead to outflows of $4.3 billion from South Africa, according to a JPMorgan Chase & Co. analysis.

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Such an outflow, if a deal goes ahead, could weaken the rand, which has gained 4.4% against the dollar, the most of 16 major currencies tracked by Bloomberg, over the last five weeks.

The deal, proposed by BHP and rejected by Anglo, would involve Anglo distributing its holdings in its South African iron ore and platinum units to shareholders. That, according to JPMorgan’s South African mining analyst Catherine Cunningham, would lead to developed-market investor index funds selling the unbundled stocks, resulting in the outflow.

While Anglo has spurned BHP’s $49 billion bid, it has agreed to talk to the company, which must now make a firm offer by May 29. A successful deal could also affect the share prices of the units, Anglo American Platinum Ltd. and Kumba Iron Ore Ltd., Cunningham said.

“There is now a materially higher probability that BHP will reach an agreed deal,”she wrote in the May 23 note to clients. “We see downside risk to the share prices of both Amplats and Kumba.”

Cunningham didn’t assess the potential impact on the rand.

According to her analysis, developed-market funds would sell $9.4 billion in stock and $5.1 billion would be bought by emerging-market investors, resulting in the net outflow. JPMorgan estimated the index fund holdings in Anglo American based on publicly available data.

“Locals will not sell anything, developed market index funds will sell every share they receive and DM active and others will sell 90% of what they receive,” Cunningham estimated. “EM active funds will buy 50% of what’s for sale.”

Amplats, which has a market value of 192 billion rand ($10.5 billion), is nearly 80% owned by Anglo American. Kumba, which has a capitalization of 170 billion rand, is almost 70% held by Anglo American.

Developed-market index funds would need to sell their shares as Johannesburg-listed stocks wouldn’t fit their investment mandate. Active investors are likely to want to limit their exposure to single-commodity and -country stocks. Kumba’s mines are all in South Africa while Anglo Platinum has one small operation in Zimbabwe, with the rest in South Africa.

Spinning off the companies would also add $14.2 billion to the market capitalization of the MSCI South Africa index, or about 6%, Cunningham wrote.

In response to BHP’s approach Anglo rushed out its own plan to streamline its business. That would include spinning off Anglo Platinum while retaining control of Kumba.

(Updates with Anglo American’s own plans in last paragraph)

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JPMorgan says BHP plan risks US$4.3 billion South Africa outflow

Such an outflow, if a deal goes ahead, could weaken the rand, which has gained 4.4% against the dollar

A successful takeover of Anglo-American Plc under the arrangements BHP Group has offered could lead to outflows of $4.3 billion from South Africa, according to a JPMorgan analysis. 

Such an outflow, if a deal goes ahead, could weaken the rand, which has gained 4.4 per cent against the dollar, the most of 16 major currencies tracked by Bloomberg, over the last five weeks. 

The deal, proposed by BHP and rejected by Anglo, would involve Anglo distributing its holdings in its South African iron ore and platinum units to shareholders. That, according to JPMorgan’s South African mining analyst Catherine Cunningham, would lead to developed-market investor index funds selling the unbundled stocks, resulting in the outflow. 

While Anglo has spurned BHP’s US$49 billion bid, it has agreed to talk to the company, which must now make a firm offer by May 29. A successful deal could also affect the share prices of the units, Anglo-American Platinum and Kumba Iron Ore, Cunningham said. 

“There is now a materially higher probability that BHP will reach an agreed deal,”she wrote in the May 23 note to clients. “We see downside risk to the share prices of both Amplats and Kumba.”

Cunningham didn’t assess the potential impact on the rand.

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According to her analysis, developed-market funds would sell US$9.4 billion in stock and US$5.1 billion would be bought by emerging-market investors, resulting in the net outflow. JPMorgan estimated the index fund holdings in Anglo-American based on publicly available data.

“Locals will not sell anything, developed market index funds will sell every share they receive and DM active and others will sell 90 per cent of what they receive,” Cunningham estimated. “EM active funds will buy 50 per cent of what’s for sale.”

Amplats, which has a market value of 192 billion rand (S$14.1 billion), is nearly 80 per cent owned by Anglo-American. Kumba, which has a capitalisation of 170 billion rand, is almost 70 per cent held by Anglo-American. 

Developed-market index funds would need to sell their shares as Johannesburg-listed stocks wouldn’t fit their investment mandate. Active investors are likely to want to limit their exposure to single-commodity and -country stocks. Kumba’s mines are all in South Africa while Anglo Platinum has one small operation in Zimbabwe, with the rest in South Africa.

Spinning off the companies would also add US$14.2 billion to the market capitalisation of the MSCI South Africa index, or about 6 per cent, Cunningham wrote. BLOOMBERG

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Yokogawa Announces Growth for Sustainability 2028 Medium-term Business Plan

- Approaching business from an ESG perspective and picking up the pace of efforts to enhance social and corporate value in alignment with Yokogawa's Purpose -

Tokyo, Japan - May 7, 2024

Yokogawa Electric Corporation (TOKYO: 6841) announces the formulation of Growth for Sustainability 2028 (GS2028), a new medium-term business plan for the period ending fiscal year 2028.

In fiscal year 2021, Yokogawa fundamentally revised its long-term business framework and announced the Accelerate Growth 2023 (AG2023) medium-term business plan with the aim of achieving sustainable growth through the provision of shared value to society. For the three-year period ending with fiscal year 2023, Yokogawa worked to establish a business structure centered on addressing broad social issues, with the aim of realizing its vision for where it wishes to be as a company in the year 2030. Under the new Growth for Sustainability 2028 medium-term business plan commencing this fiscal year, the company will pick up the pace of its efforts to achieve a transformation that will enhance social and corporate value based on an environmental, social, and governance (ESG) business approach and the industry-oriented business structure that was established under AG2023.

Long-term Business Framework

Yokogawa’s long-term business framework was fundamentally revised when AG2023 was being drawn up, and no major revisions have been made this time. The same Vision statement outlining where Yokogawa wishes to be in 2030 has been carried over to GS2028.

Vision statement

Through autonomy and symbiosis, Yokogawa will create sustainable value and lead the way in solving global issues.

Value provision to customers

The world is now in an age where everything is ever more intricately connected. In this system of systems (SoS) world, where independently operated and managed systems connect to form a larger system that delivers synergies and emergent value, Yokogawa will promote effective connections and enable overall optimization through integration, autonomy, and digitalization. The company will lead the way forward and achieve this through its IA2IA *1 and smart manufacturing *2 approaches.

*1 An initiative to promote the evolution from industrial automation to industrial autonomy (IA2IA) by incorporating DX enablers such as AI, digital twins, and robotics *2 The achievement of autonomy and improvement of productivity in production operations, enterprises, and supply chains through DX and IA2IA

Growth for Sustainability 2028 Medium-term Business Plan

The starting point for GS2028 is Yokogawa’s Purpose, which states, “Utilizing our ability to measure and connect, we fulfill our responsibilities for the future of our planet.”

Value creation process

In line with Yokogawa’s Purpose, the company has defined the following value creation process for achieving the goals of its medium-term business plan: “Based on the strengths and the trust that have been built up over the years by solving operational technology (OT) issues for our customers, we will leverage our human capital and DX-enabling technologies to co-create diverse high-value solutions in SoS-related businesses. We will utilize the strong trust-based relationships with customers, know-how, human resources, and other forms of business capital enhanced through this process to achieve our business aims.”

Basic strategies for value creation

To realize the vision for 2030 defined in Yokogawa’s long-term business framework, and to achieve the aims of the value creation process described above, the company has formulated four basic strategies to be carried out over the five-year period ending with fiscal year 2028. The overview of each basic strategy is below.

• Provide value as a trusted partner in the system of systems domain To deliver value through SoS, Yokogawa takes a two-pronged approach: IA2IA and smart manufacturing. By leveraging the know-how, experience, and advanced technological capabilities that have been accumulated at numerous manufacturing sites, the company will deliver value through strategic consulting and seamless integration.
• Strengthen industry responsiveness and expand cross-industry business In response to customers who are seeking to improve production efficiency and stabilize their production operations, Yokogawa will strengthen its ability to provide integrated IT/OT solutions to targeted industries. At the same time, the company will work to grow its business by addressing issues in areas such as quality control and facility management that are common concerns in every industry. To support customer DX, Yokogawa will expand on its strengths in field instruments and control systems to also offer solutions that include MES, ERP, and other upper-layer systems.  The company will also enhance the solutions provided to customers who are adapting their business operations in response to a changing business environment and evolving market needs.
• Create value by utilizing and developing intangible capital Yokogawa will focus on utilizing its human capital, intellectual capital, and social and relationship capital. These three types of intangible capital contain hidden strengths that have been built up over the years, such as the ability to create value, empathize, identify issues, and connect to stakeholders. The company will make use of these strengths to spur growth.
• Group-wide profitability improvement initiatives: The company will generate and allocate strategic resources, optimize operations, and optimize its management foundations.
• DX strategy: Based on its global IT foundation, the company will promote internal DX measures to improve the customer experience, partner experience, and employee experience. As for external DX, with the overall aim of shifting to a recurring revenue business model it will actively apply the know-how cultivated in the OT field to develop applications and services that utilize Yokogawa Cloud.
• Enhancement of corporate governance: Yokogawa will transition from “a company with a board of auditors” to “a company with a nominating committee, etc.” This will clarify the division of supervisory and execution roles, improve the efficiency of decision-making processes, clarify responsibility for the achievement of business decisions and business plans, strengthen auditing functions, and improve efficiency.

Business Strategies in GS2028

In fiscal year 2021, Yokogawa transitioned to a structure that is based on industry-oriented business segments, and established a system for expanding its business through global collaboration. These business segments are based on the businesses that customers are engaged in and center on issues that need to be resolved in order to realize a sustainable society.  The main strategies and policies of each business segment aim for growth in specific business areas while also connecting to the business focus areas and activities of the six contribution areas that have been defined based on Yokogawa’s Three Goals for sustainability.

Energy & Sustainability

• Expand solution offerings for the renewable energy market.
• Accelerate solution deployment by leveraging consulting and IT capabilities.
• Maintain strong relationships with oil & gas customers to expand business and capture needs in growth areas.
• Optimize supply chains; expand into the mobility sector.
• Further accelerate consulting and solution-based business.
• Expand customer base in chemical and mining industries.
• Develop new technologies for the rapidly growing fields of biotechnology and regenerative medicine.
• Accelerate overseas deployment of solutions that have a strong track record in the Japanese market.
• Provide value through problem-solving solutions.
• Further develop relations and expand activities with leading companies.

Measuring Instruments

• Provide measurement solutions to improve energy efficiency.
• Expand business areas by applying core technologies.
• Create new business using spectroscopic application technology.
• Pursue highly profitable business by developing and providing one-of-a-kind products.

New Businesses and Others

Yokogawa will accelerate activities to establish and quickly monetize businesses in areas such as video analysis AI, IoT, bio-related fields, and research and development/contract manufacturing of active pharmaceutical ingredients.

Areas for Exploration

These will continue to be disaster prevention, space, and ocean.

Management Targets

• The company will set aside a total of 100 billion yen for capital investments for growth (strategic investments) to be made over the first three years of the business plan (FY2024 to FY2026). It will maintain an optimal capital structure that takes into account overall risks, increases or decreases in equity, and the assumption of increased risk associated with the execution of investments that use debt financing, in order to maintain a level of shareholders' equity that can retain a Grade A rating even when risks materialize, and to secure a certain level of risk investment capacity for the next stage of growth.
• Under its dividend policy (basic policy on allocation of profits), the company will seek to preferentially allocate profits to investments that maximize corporate value over the medium- to long-term, but will also strive to improve shareholder return through the proactive payment of dividends, while ensuring it retains a certain financial stability. Yokogawa will continue to return a certain percentage of profit each period based on the target dividend payout ratio, and maintain a stable dividend based on the equity dividend rate, while also flexibly considering share buybacks to provide additional shareholder returns, taking into consideration financial conditions, stock price levels, etc.

In full alignment with Yokogawa's Purpose, and with the aim of being a company that is depended upon by society into the future, Yokogawa will accelerate its efforts to achieve a transformation that enables it to achieve its vision for the year 2030.

For more information

• Growth for Sustainability 2028 medium-term business plan presentation materials (PDF)

About Yokogawa

Yokogawa provides advanced solutions in the areas of measurement, control, and information to customers across a broad range of industries, including energy, chemicals, materials, pharmaceuticals, and food. Yokogawa addresses customer issues regarding the optimization of production, assets, and the supply chain with the effective application of digital technologies, enabling the transition to autonomous operations. Founded in Tokyo in 1915, Yokogawa continues to work toward a sustainable society through its 17,000+ employees in a global network of 129 companies spanning 60 countries. For more information, visit www.yokogawa.com 

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