Benefits of Owning a Hair Salon

Owning a business can be stressful, but starting a hair salon is a great career move for any stylist who wants to increase profits and personal independence. In this brief article, you will find out why it’s such a great idea for experienced stylists to strike out on their own.

Keep 100% of the Profits

Most hair stylists begin their careers working in other people’s salons. While that’s a great way to gain experience, it usually means working for commissions. The average salon employee takes home only 40% of the money they charge clients, and there’s no possibility of advancement.

Salon owners get to take home 100% of their profits. Of course, there’s a greater level of risk involved, but doing the math is easy. If a stylist opens their own salon and sees ten customers per day at an average of $50 per visit, they can make $500 per day. Working for commissions, they’d take home only $200. 

Those differences add up. Over the course of a month, an owner-operated salon can earn $10,000, while the same stylist working for someone else will earn just $4,000. Of course, the salon owner also has expenses to cover, but the math still typically works out better for them than for stylists working on commission.

Get Great Tax Benefits

Some salon expenses can be offset by tax benefits and deductions. For example, if a salon owner purchases supplies at https://prostylingtools.com for daily use, those supplies are business expenses. Only the salon owner can claim those business expenses as tax deductions.

It’s not just beauty supplies that count as salon-specific tax deductions. You can also deduct sale equipment depreciation, utilities, training, licenses, magazine subscriptions, and other intangibles.

Gain Personal and Financial Freedom

So far, we’ve discussed only the financial benefits of owning a salon instead of working for commissions. However, these are just a small part of the positive changes that come about from opening a salon. Salon owners also enjoy a level of personal and financial freedom not seen by the average salon worker.

Salon owners can make decisions that directly impact their futures instead of relying on others. They can feel good about knowing that their career success is entirely their own. Not having a boss means being able to prioritize work-life balance. Salon owners can also scale up their businesses on their own terms.

Growing a Salon Business

Plenty of successful salon owners start out as sole proprietors with studio salons and then scale up from there. It takes time to build a client base, figure out what works in the local market, and gain local success to the point where it makes sense to start hiring additional employees. However, this approach to salon ownership minimizes risk and maximizes financial gain for stylists who are experienced enough to start out on their own.

Running a studio salon gives stylists the experience they need to scale up over time. New salon owners can establish wholesale accounts with suppliers, network with other industry professionals, and develop effective marketing techniques without worrying about covering huge amounts of overhead from the start.

Most of the same benefits that apply to full salon ownership also apply to owning a studio salon, although the financial benefits increase when successful salons expand. Either way, it’s a clear best choice for anyone who wants to improve their career in the beauty industry.