As attractive as it may seem, investing in a spa & salon business is not all roses. Although the competition in a spa & salon franchise is comparatively higher, starting it from dust can be quite challenging. According to a recent survey, 5 out of 10 entrepreneurs who begin spa & salon businesses fail within the first few years. You can direct clear of the failure stats and skip the struggle by opting for a salon franchise.
Is owning a beauty salon franchise business profitable?
The question is, does it make sense to start a beauty franchise business from start or is it more profitable to invest in a hair and beauty salon franchise?
These numbers vary considerably depending on the owner, the sort of business owned, the planning etc. Although there have been numerous studies that state that franchises often have a tremendous success rate than starting a business from scratch. The idea behind this is because franchises operate under a planned and proven thriving business model whereas autonomous businesses make improvements and decisions to their business model as they go, in other words, independent business is still trial and error.
- Here are few ideas why you should explore starting a salon franchise-:
Established Business Model
Owning a well-known spa & salon franchise has its benefits. Along with a loyal client base, you will also get an established business model, which would play a vital role in the success of any business. You need to make fewer efforts to prepare a business model because their services have already captured a market share. You also don’t need to make an addition to the procurement of raw materials because franchisors have already established relationships with suppliers.
2. Loyal Consumer Base
A reputed brand franchisee comes with a true customer base. By becoming a franchisee of a beauty salon, you won’t need to spend half of your advertising budget to spread information. Customers will come to your brand because of the name and brand you hold.
3. Lower Risk of Failure
A franchise owned spa or salon provides a more economical risk of business failure. Owning a franchisee of an established popular brand has less risk as the business ideas that have been tested were proven successful.
According to a recent study, franchisees have a higher rate of success. The franchisee businesses have 80 per cent survival chances while an independent business has around 20 to 30 per cent survival chance.
Apart from a good business model, starting a business requires a hefty amount of investment. Along with many other benefits, owning a spa/salon franchise requires less capital investment in comparison to starting your own.
This is because when you buy a franchise, you are not alone. Franchisors provide the required training and guidance for sales growth and smooth operation of your franchise. Apart from the initial investment, the rest is taken care of by the franchisors themselves, right from finding a location, negotiating a lease, hiring reliable contractors and doing all this on time and within budget..