The question about beauty salon success in the U.S. is always in the back of the minds of people considering owning a beauty salon, so why not tackle it head on in this article. We are Salon & Spa Galleria, leading the way in the Greater Fort Worth Metro area with twenty-three salon suite rental locations. Call us at 817-917-1416 or more information and for current pricing.
Let’s do this! Let’s talk about your chances of making it as a beauty salon owner.
Beauty salon success rate as of 2024.
These things are always a bit difficult to nail down, so getting an accurate percentage of successes/failures is problematic at best; however, after a bit of research, taking information from several trusted sources, we can state that the success rate is right around 50%. Now, before you start to panic over the fact that half of the start-ups fail, consider this: According to the Small Business Administration, only 20% of start-ups succeed in the U.S., a statistic which covers all manner of businesses and not just beauty shops. Put in that perspective, a 50% success rate looks pretty good.
Still, it also means that 50% fail, and for those in that 50% failure category, that is much too high.
We believe there are some very good reasons for those failures, reasons we are going to chat about next.
What are the reasons for 50% failure?
The first reason for failing in a beauty salon, hair salon, nail salon, etc., is because the new business owners were underfinanced and could not handle the debt they incurred. If you are renting a retail property, one large enough to handle multiple workstations, be prepared to take on a monthly lease payment of three-thousands dollars or more, with emphasis on the more. And if you want to purchase a retail property, that mortgage payment, after you lay down the 20% downpayment, will be large enough to choke a horse.
And then we add on the secondary costs. Utilities for a building are high. Signage for a building is expensive. Furnishings? Toss in another couple thousand. Insurance, marketing, and on and on we go, until the money is all gone and you are closing the doors for good.
Second reason, and in no way do we mean for this to sound harsh, but many first-time business owners are lacking in the training necessary to operate a business. They have no idea how to market/advertise a business, no idea how to budget, and no idea how to find help if, and when, they need it. They start with a splash, huge dreams leading the way, and soon find themselves in a riptide, sweeping them out to the Sea of Failure.
We could list a few more reasons but really, those first two cover the majority of failures in the business world.
So, what to do to improve your chances of success? Read on!
We have a better idea.
Salon & Spa Galleria, and companies like us outside of Fort Worth, looked at the main two reasons for failure in the beauty industry, and we devised a logical solution. We shrink this whole process down so it is manageable and affordable by offering luxury salon suites rather than buildings. We then toss in a long list of amenities like free utilities, free WiFi, free web page, free laundry, making this a very doable approach. We then offer a 26-step business plan, monthly workshops on marketing, and all the moral support a new owner needs to navigate those first few months.
The result: Our system works much, much better than 50% pass/fail.
A final word about Salon & Spa Galleria.
Salon and Spa Galleria is locally owned and operated, and with twenty-three locations it should be obvious that our approach is working quite well. Call us today and arrange for a tour. We will answer all of your questions then, put your mind at ease, and move you one step closer to successfully owning a beauty salon.
