How To Start A Salon Business In South Africa

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.

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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