What can you earn?
Unless you are phenomenally successful, you should not expect to make any profit for the first year – or even for the first two or three years. In the beauty business, overheads are quite high, and you can’t afford to scrimp if you want to make a good impression and build up a loyal client base.
Lorraine Fletcher says she wouldn't imagine any business could make any profit for the first two or three years, "unless you’re an internet company and your overheads are very low. "I would hope to start reaping the benefits in maybe four years. Before that, I think you have to put everything you earn back into the business.”
Once you are well-established though, your beauty salon or spa is likely to make a very healthy profit.
“The margin is around 65%,” Kalpana of Himalayan Day Spa estimates. “I can earn profit straight away provided I have a certain number of clients coming every month. I’m hoping to sell £300 a day. With that, I should be able to wash my face.”
Lorraine says Atelier Salon & Spa averages 700-800 clients a month, with perhaps 150 new clients within the same timeframe. The trick is retaining new custom.
A small salon tends to retain a higher percentage of clients than a large one, so if you keep a focus on personal customer care, you’ll be doing well. The average number of clients visiting a small salon per week is 125.
Ideally, your salon/spa will be fully-booked from morning till night, seven days a week, but this is unlikely to happen straight off. Generally, salons and spas are quiet at the beginning of the week and booked solid coming up to the weekend.