How To Start Salon Business In South Africa
What is a Salon?
A beauty salon or beauty parlor is an establishment dealing with cosmetic treatments for men and women. There’s a difference between a beauty salon and a beauty parlor which is that a beauty salon is a well developed space in a private location, usually having more features than a beauty parlor could have.
How To Start Salon Business In South Africa
1. Define the extent of services and products that will be offered
Be a one-stop shop and offer your customers all the basic salons services they can find elsewhere such as: coloration, braiding, weaving, dreadlocks styling, nails, beauty and massages.
2. 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.
3. 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 in an IT77 form. It is available at the SARS offices or their website. Failure to register your business will bring conflicts between you and the authorities.
4. 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 hair styling 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 hair styling services at a fee.
5. Be a trendsetter
Do a market analysis of the area that you will be operating in. Find the gaps and fill them quickly to create a niche for your business. Create a trend that your salon will be known for that will help drive traffic into your door. Be it Ombre Faux Locations, a natural afro wig that is installed to perfection, cut or color. There are many salons in South Africa – an estimate of over 30 000 salons exist. How will yours be different in this highly competitive environment?
6. Know and rebook your clients for future services
Have an operating system in place that will help you keep record of all your clients, their names and services done. Keeping track of your customers helps you to plan for the next month. It will help you rebook their next appointment after every service, that way helping to guarantee your next sale. Take your customer through a healthy hair journey and build on that.
7. Salon customer service and satisfaction is the Key
The success of your salon business will be directly linked to your ability to satisfy your customers. There is no better way to retain existing customers than to have them leave happy on every visit. Word of mouth will be your most successful marketing tool above all else. It’s an extremely effective form of organically marketing your business. Customer service starts with a polite and professionally trained staff that greets and serves with a smile and knows their product well.
8. Create a comfortable, clean and safe atmosphere
From the point that customers enter your salon to the point they exit they should be presented with an environment that is clean, safe, comfortable and relaxing. Keep the floors clean at all times by teaching your stylists to clean up after each and every customer visit. Make sure towels, combs and other equipment are washed and sanitized. Offer your customers some refreshments as they wait. Going to a salon must not be a chore for them but rather an extension of their lifestyle.
Frequently Asked Questions (FAQs).
How much does it cost to open hair salon in South Africa?
A new 55 square meter nail salon costs roughly R600,000 to establish. Together with stock, franchise fees, and other expenses, franchisees can expect to pay approximately R765,800, excluding VAT, lease, and working capital.
Is salon 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.
How much does it cost to build a salon 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.
Do salons make money 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. It is evident that this is a business market that you can explore.
How many salons are in South Africa?
The South African hairdressing industry divides into two main sectors: a large Afro sector and a much smaller Caucasian sector. It is estimated there are around 34,000 Afro salons and some 3,000 Caucasian hairdressing salons in the country.
How much does salon equipment cost in South Africa?
Salon equipment – equipment costs will vary depending on type of salon. A full hair salon expense list is estimated to total about R27,000. That includes everything you’ll need hood dryers, shampoo and coloring stations, scissors, clippers, etc. A simple barbershop or nail salon will require less equipment.
What type of business is a beauty salon in South Africa?
Personal Care Services
According to the North American Industry Classification System – better known as the NAICS, beauty salons fall into category 8121 – Personal Care Services.
Is it compulsory to belong to the hairdressing bargaining council in South Africa?
Membership to the Employers Organization (EOHCB) is not compulsory however the National Bargaining Council for the Hairdressing, Cosmetology, Beauty and Skincare Industry would recommend that employers and legal owners do join to enjoy the benefits the Employers Organization offers.
What is the hairdressing industry about in South Africa?
The Hairdressing sector includes a range of hair-related services, such as hair cutting, coloring and styling, as well as facial hair grooming. Nationally recognized training for Hairdressing is delivered under the SHB Hairdressing and Beauty Services Training Package. For information on beauty services, see Beauty.
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.
How do salon owners make money in South Africa?
Beauty salon owners can offer two types of employment for other stylists and personal care professionals. Regular employment means the personal care professional is paid an hourly rate and commissions on products and up-selling of services. Some salons also offer their employees benefits and paid vacations.
Is a hair salon a good investment in South Africa?
The average salon makes R19,100 in profit every year. The average salon profit margin is 8.2% which is above the general business average of 7.7% and is improving year on year. Salon profit margin ranges from 2% to 17% depending on how well the salon is managed.