How to Start a Salon Business in Bangladesh
Start a Salon Business in Bangladesh
Not might be one of the best times to do if you have a dream to start a salon business in Bangladesh. According to a recent report, the salon industry is one of the fastest growing industries in Bangladesh. Also, the industry has rebounded and analysts expect continued growth for at least the next five years since the recession. Although this is significantly profitable, you’ll still face a lot of competition while the timing might be right.
There are numerous salons in Bangladesh and if we specifically say most of them are in Dhaka. You’ll find a very few of them in Cox’s Bazaar, Chittagong, and Sylhet. It means that this industry has a wide prospect as there are not too many standard salons in the country. So, why not start a beauty salon or hair salon business of your own?
Steps to Start a Salon Business in Bangladesh
Even the trendiest shops can crash and burn without proper financial and legal planning. Before you open your doors, there are a lot of pieces and parts that really need to be thought through and organized. Perfecting your skills and building a superb reputation, you have spent years working at a salon.
However, get ready for the next challenge to start a salon business in Bangladesh. If you read this guide entirely, it’ll tell you everything you need to know about how to open a salon. And there are some steps you should follow like with any new venture. Well, let’s know what they are:
Step #1 – Business plan
According to the research, a shocking number of potential salon owners launch without a business plan. If you come with a plan, your success will be predicated on the fact. Not only outline the business needs but brand identity and marketing strategy as well. As you know your financing needs, a business plan estimates cost so you.
If you didn’t forecast and plan properly, you can’t have a large amount of money magically appear. Besides, it’s best and suggested by the experts that you should make your business plan under the guidance of an accountant and attorney. Otherwise, you’ll be in the same row as those who are going to close their business within the first two years.
Step #2 – Business model
As there are different types of the salon, there are different business models for them. You have to decide first what you’ll do whether you open a salon from scratch, or buy an established salon or purchase a franchise. Also, you may operate on commission or chair-rental model.
Related Article: How to Start a Pharmacy Business in Bangladesh
Stylists are independent contractors who carry their own insurance with chair rentals. So, if you’re teaming up with a few friends to run a small operation that’s ideal for you. But, you can do a commission if you want to grow your salon. That’ why business model as essential as the business plan is. Both of them are very important to be a success in your salon business in Bangladesh.
Step #3 – Partnerships
Whether it’s an investor or simply a strong mentor group, seek strong business partners. This is because the most successful salons are those that have somebody who focuses on the day-to-day business. And then another person who focuses more on the creative end of it.
That’s why it’s important to consider partnering with a product company or line. But, you must be sure that they’ll support you in your business and continue to be an ally to push you to the next level. If you can be ensured this point, you’ll be able to see you at the top of the salon business in Bangladesh very soon.
Step #4 – Financing
You’ll need outside financing, minus significant cash. At least six months of capital in the bank at the beginning since business is seasonal and it takes time to get established. Although entrepreneurs usually rely on family, friends and personal loans, it’s virtually impossible for startups to qualify for business loans. But, you can try banks and credit unions when you’ve been in business at least a year.
But, application and funding can take weeks or months as the standards are strict. Also, consider online alternatives, where requirements are looser and funding is quicker if you’re not succeeding with traditional lenders or micro financers. But, it doesn’t mean you have to put them all in now because your space has room for eight workstations. So, you can start a small salon business in Bangladesh during the initial stage of your business.
Step #5 – Location
If you want to determine costs greatly, choose a perfect location and space wisely. In order to understand what is and isn’t included by the landlord, carefully read leases for potential spaces. If you sign a five- or 10-year lease, for example, they should provide tenant improvements or offer an allowance.
Or, whether it’s a raw space requiring electric wiring and HVAC installation or adds considerable expense. So, have a general contractor review the lease and space to estimate needs and costs before signing.
Step #6 – Equipment
In order to find financing to cover equipment costs, many new salon owners struggle with heart and soul. The better option may be that if you can turn to an equipment financing company. You own the equipment when the lease ends and they’ll pay your equipment costs.
What you’ll need most like outdoor signage, phones, sound systems, desks, workstations, chairs, wash stations, cabinetry, mirrors, display cases, washers, and dryers. Also, needs some furniture for the office and backroom. As it’s a comparison shop, the costs vary significantly. Besides, based on your budget and can work in cooperation with your other lender, your equipment financing company creates a financing plan.
Step #7 – Legal Documents
Before starting a salon business in Bangladesh, numerous permits are required. These include below:
- Certificate of Incorporation
- Trade License and Permit
- Tax Identification Number (TIN)
- Business Identification Number (BIN)
- Operating Agreement for LLC
- Sales Tax Permit
- Insurance Policy
- Office/ Space contract documents
More steps to follow
There some more steps to follow when starting a salon business in Bangladesh. These include below:
- Budget and create goals
- Join trade organizations
- Put an accounting and inventory program in place
- Design your salon around the clientele you want
- Provide excellent customer service
- Set aside money for marketing
- Don’t expect to make big bucks from product lines
- Hire staff based on personality
- Reevaluate your business plan
- Check for ways to save