If you’re in the salon industry, you know that starting and running a beauty salon isn’t cheap. Your business needs to cover an extensive range of expenses, from items like hair treatments and colors to paying for the stylists that work for you. Beauty salon business loans can assist you with the growth and expansion initiatives. No matter how your salon is thriving, sometimes you may find yourself in a cash shortage. It could be a slow season especially that the hair salon industry has faced profound challenges due to the COVID-19 pandemic, or you might need to make a hefty investment in your business, and you need the cash on hand to do so. Whatever the reasons are, if you’re interested in getting outside funding for your beauty salon, you should define your needs before jumping on the application process. This is because the financing that’s best for you will depend on your business needs. And it’s really important that in many cases, your lender will need to know regarding your plan to use the loan.
After you’ve defined your needs, you can begin researching salon financing more seriously. To help you get started, we’ll give you an outline of the many ways beauty salon owners can use financing.
Hair Salon Owners Can Use Financing For:
1. Hire More Stylists If you don’t have enough staff, your hair salon’s profitability will suffer. Being understaffed and not able to serve new customers can hinder the growth and success of your business.
Plus, the stylists that you have will be overworked with customers, which will affect the quality of service. In either situation, hair salon financing can help you pay the cost of hiring more stylists.
2. Open a New Branch
If you’re thinking about the long-term growth of your beauty salon business, you might want to expand by opening a new branch or location. When that time comes, you’ll need a large amount of capital to make it happen.
If you got a business loan, you can use this to cover the cost of the new space, employees, equipment, and other expenses.
3. New Equipment
From shampoo chairs to hair dryers, reception desks, cutting cape, and much more, running a successful hair salon requires equipment. Financing is a great help to pay for whatever equipment necessities to run your business. You can also apply for equipment financing if you only need the funds to purchase equipment cost.
Besides the typical hair salon equipment, it’s expected that you’ll need health and safety equipment to operate during this time. Several hair salon owners are using working capital to pay for air purifiers, masks, face shields, dividers, and other safety precautions. If your business can’t afford these expenses, it could be the right time to apply for a business loan.
4. Marketing Expenses
Although there’s plenty of chance for success in the beauty salon market, there’s also rigid competition. In this situation, your marketing is the main component of your long-term success.
Nevertheless, salon owners often cut back on their marketing budget because they don’t have the available funds in their bank account. You can stand out from the competition by allocating the proceeds of a business loan to afford salon marketing ideas without disrupting the cash flow from other parts of the business.
5. Buying an Established Salon
In any business, especially in the beauty salon industry, you don’t necessarily have to start your business from scratch. Several salon owners choose to start their business by purchasing an existing hair salon and building from there. Needless to say, purchasing an existing business can be expensive, even if it’s a good deal. If you don’t want to pass on the opportunity to buy a salon because you don’t have enough cash, you can use financing to make your purchase. Most salon owners make the mistake of using their personal bank account then look for funding. The only problem with that is that most business banks won't finance them based on personal income.
Where to Apply for Beauty Salon Financing After defining your financing needs and having an idea of how much money you’ll need, you can call Sals Capital at (332-334-1077))they have a variety of funding options that cater your business needs. You can also take advantage of their interest free financing options for up to two years. What are you waiting for? Better Call Sal!