Salon Location Hacks: Boosting Your Business with Smart Choices

The decision to open a salon is an exciting one, and once you decide to take the leap, choosing the appropriate salon location is one of the most essential decisions you make as a new salon owner. The location can help the business thrive when it’s easy to find and in a convenient location, or it can lead to frustration for you and your customers, possibly impacting your customer retention rate. Let’s look at what makes a great location and how to select the most desirable one for your business.

Key Points:

• Choosing the best salon location is critical to your success as a salon owner and one of the most important decisions you make.
• Multiple factors and thorough research go into making the decision.
• The best location is not only convenient for your clients and staff, but it supports your vision as a salon brand.

What Makes a Great Location for a Salon?

A prime location for a salon works for both the salon owner and the customers. It’s more than a place that receives a ton of foot traffic, although this can certainly be a priority. A great location supports the salon strategy and branding, stays within your budget, and makes it easier for your customers to do business with you. 

Factors to Consider When Choosing a Salon Location

Knowing how to start a small business is challenging for most future business owners, but salon owners face additional challenges because of the number of factors they must consider before opening their doors to clients.

• Demographics of the surrounding area. Your salon clientele will most likely consist of locals. Take time to explore, observe, and research who is living within close proximity. Consider the average income level and if the local residents might support the salon services you’re offering. 
• Foot traffic and public transportation. How many people pass by the salon on a regular basis? Foot traffic is critical, especially in the beginning before building up a regular roster of clients. Public transportation may not only be a top consideration for your clients, but for you and your staff as well. Plus it provides easier access to potential clients who may not live in the same city as the salon location.
• Parking availability. If public transportation isn’t the main form of transportation, then most people will drive their own vehicles. It’s critical to  understand the parking situation by the salon, including if it’s easy to access, if there are numerous spots, and if it's free to park. 
• Surrounding businesses. Take time to examine the surrounding businesses. Not only are you looking for other salons, but you want to see other businesses that are supported by the same demographics as your potential clientele. For example, is there an upscale spa nearby or a yoga studio?
• Cost of the rent, lease, or mortgage. The price of rent will certainly have a substantial impact on where you choose to operate the salon. Before signing a lease agreement, consider other options such as renting a booth or a salon suite, where you are located within a larger space but have your own spot dedicated to your business. Renting is typically less expensive than purchasing, but purchasing a space outright may save money in the long run and give you options as a future landlord or selling the property.
• Building conditions. The building where the salon is housed is the first impression your clients see. Does the building look safe, bright, welcoming? Or is it run down, dirty, or in need of major updates? Lighting is equally important, since it’s not only an aesthetic issue, but a safety issue too.
• Access for persons with limited mobility. The salon should be able to reasonably accommodate persons with restricted mobility or disabilities. For example, ensuring there is a ramp available in addition to stairs.
• Size and layout of the space. A salon can be in a perfect location but if it’s not large enough for you to work or maneuver around, then it doesn’t matter. While it’s tempting to start small too, consider how quickly your business could grow and if it does grow, will you be forced to move in a short amount of time.
• Utilities and other costs. The rent is only part of the equation for choosing the perfect location, utilities and other expenses can quickly add on. Factor in additional costs such as utilities, insurance, shared expenses (such as trash removal), and security, which can all add to the overall cost of operations.
• Crime statistics and safety issues. Crime is another consideration since you want both your staff and clients to feel safe when using your services. You can research local crime statistics beforehand and talk to other business owners in the area to gain a better understanding of the safety.
• Area development plans. When selecting a location, also consider the future of the area, which also includes future construction plans. You should find out what is planned near the salon and how much of an impact it could have on parking and accessibility.

Best Locations for a Salon

There are numerous options for consideration and one that might be a better fit for your future clientele when it involves selecting the best location for a salon. Consider locations near the following:

• High-end shopping centers and malls.
• Busy city centers and downtown areas.
• Residential neighborhoods with high foot traffic.
• College campuses and university towns.
• Close proximity to health and fitness centers.

How to Choose the Right Salon Location for Your Business

Taking time to research the facts and analyze available information can help you select the most ideal place for your clientele and budget. There are numerous steps involved in finalizing the best salon location and laying the right foundation for your business. We’ve taken the information mentioned above and 

Step 1: Identify Your Target Audience

Your target audience is who is most likely to seek your services. Not only do you want to consider the basic needs, such as age, gender, and income, but understand their needs and interests too so you can offer services tailored specifically to them — and earn repeat business. You can narrow in on your potential clientele by:

• Reviewing your current client list, if you are already an established salon owner
• Determining what sets your salon apart from others
• Considering their personal characteristics, including values, attitudes, lifestyle, and interests
• Analyzing how you will reach them, such as if they’re tech savvy, prefer texting, email, or phone calls

Step 2: Research the Local Area

Researching the local area means conducting market research to analyze the demographics of the surrounding area. Ideally you should look for areas with a high concentration of your target audience and if the area can support another salon. It’s also helpful to 

Step 3: Evaluate Competitor Proximity

Salons are a popular small business choice, which means there may be competitors nearby. One of the best strategies can be to look for areas with low competition, where the needs of your target audience aren’t currently being met. This may include a location close to newer developments or up-and-coming neighborhoods. If you do choose a spot with competitors nearby, be sure to choose an area where there is high demand for salons and beauty services that can support multiple salons.

Step 4: Assess Foot Traffic and Accessibility

Foot traffic is essential and the more your salon has, the easier it can be to pull in potential customers - especially in the beginning when you’re building your client list from scratch.

Additionally, make sure the area is easily accessible for customers, both for public transportation or from a parking standpoint. 

Step 5: Determine Rent Costs And Affordability

Look for a location that fits within your budget and is affordable in the long term. There are numerous up front expenses for opening a salon, including rent, utilities, equipment, and staffing. You may need to consider a small business loan for salon owners or other forms of beauty salon financing.

Step 6: Find a Location That Matches Your Brand

Choose a location that matches the style and ambiance of your brand. For example, if your clientele is mostly older, retired men and women, then you may prefer a location such as a historic home or stand-alone building, instead of a high-rise building with too many floors or is considered more modern.

Step 7: Consider the Potential for Growth and Expansion 

Look for a location that offers room for expansion if your business grows. Consider the expansion opportunities not only for your own business, but what growth in the area might mean for operating your business on a daily basis. For example, if there is a new development construction nearby that could impact the accessibility for your staff and clients, or if too much traffic and congestion may eventually make it too hard to come in and out of your location.

Step 8: Check Local Zoning Regulations 

Ensure that the location you choose is zoned for commercial use and complies with all local zoning regulations. You’ll also need to consider what local permits are required and what insurance you must carry to stay legally compliant.

Step 9: Seek Advice from Professionals

Consult with a commercial real estate agent, accountant, or attorney to help you evaluate potential locations and negotiate lease terms.  Getting help from professionals may be an additional cost, but can be worth it if they save you from a potential disaster down the road. 

Step 10: Visit Potential Locations

Visit potential locations in person to get a better sense of the neighborhood and surrounding area. Consider factors such as noise level, safety, and nearby amenities. Look around at the clientele supporting the nearby businesses too, and see if it matches your target audience. 

Step 11: Make a Decision

After weighing all the factors, make a decision based on your business goals, budget, and the needs of your target audience. As you can see from the steps above, quite a bit of thought and planning should go into selecting the right salon location. When you choose the ideal space, it supports the vision and growth you dream about for your salon.