How to Start Beauty Salon Business

Starting a beauty parlour business plan is like starting a business. Depending on your situation, the creation procedure and the legal status will differ. Without CAP and without BEP, it is possible to open a beauty institute provided you have 3 years of experience. A market study and a business plan will be needed, including to borrow money from your bank. In addition, it is possible to open a beauty salon without personal contribution. A legal status will have to be chosen, and the formalities related to the drafting of the statutes and the registration will be essential. Finally, be aware that it is possible to open a beauty salon at home, which is an interesting option if you opt for the status of auto-entrepreneur because you can benefit from

Starting a beauty parlour business plan is a business creation

Like any business creation, opening a beauty salon, is like opening an LLC , opening an EURL, etc ... 

We must therefore ask ourselves the following questions: 

·          profitability: what turnover has been achieved? with which customers?

·          how to finance my launch: movable investments, planning, etc.

·          What legal status and tax regime to choose? 

As a company manager or a sole proprietorship, you will have to worry about your social protection (you will probably have TNS status for Non-Salaried Workers ), what retirement, how to get paid as a manager ? 

What degrees do you need to open a beauty salon?

To open a beauty institute, it will be necessary to ensure that the activity will be placed under the control of a person having a certification for the profession. The main services offered in a beauty salon are: beauty care,  nail polish,  hairdressing. A salon can very well specialize in a single activity. However, it is possible to start a beauty salon without a diploma, but a condition relating to professional experience is required.      

Diplomas required opening a beauty parlor business plan: CAP and BEP

The degrees required to open a beauty salon are:

·          the certificate of professional competence or CAP,

·          the professional studies diploma or BEP.

Opening a beauty salon without a diploma is possible, but with experience 

It is quite possible to start beauty parlor business plan without any degree provided you have 3 years of experience as:

·          manager of a beauty institute, 

·          self employed,

·          employee of a beauty institute.

To justify these years of experience, a work contract and payroll forms may be required. 

Market research for a beauty institute 

The market study for a beauty institute is fundamental, as for any craft and commercial activity. It consists of an analysis of supply and demand, in other words it allows you to answer the main questions:

·          who are the consumers? 

·          What are their needs ? 

·          what are the beauty institutes already present? 

·          what is the level of competition between these institutes? 

·          What are the services and prices? 

You can do a market study yourself by doing quantitative (questionnaires ... etc) and qualitative surveys (interviwer your entourage, women in the street ... etc). 

You can also ask a specialized agency to do a study, but it may cost you a lot. 

Realization of the business plan for a beauty salon

The business plan is a set of documents that you will present to third parties in order to find financing. All banks require a business plan as part of a credit application. Its goal is to convince, with proof, that your business will be profitable, that is to say that it will make profits which will allow your financiers to find their money. The main elements are:

·          the forecast balance sheet ,

·          the profit and loss account ,

·          the table of provisional sales as well as the estimated expenses,

·          a statement on the market situation,

·          a description of the company from the legal, fiscal and social standpoints. 

Open a beauty salon without personal opportunity

It is possible to open a beauty salon without personal contribution. Indeed, certain social forms such as SARL, EURL, SNC, and SAS, SASU do not require minimum social capital . That's why you can create your beauty salon with 1 €!  This provision of the law is intended to allow people with low wealth (see not all) to launch the activity of their dream. 

However, you should know that the banks will never grant you a loan with a participation of 1 € . When a bank grants a loan, it pledges the contribution (all or part) of the subscriber. That is to say that if you bring 1000 € in the constitution of an LLC , and that the bank grants you a loan, it may require all or part of the 1000 € if one day you do not repay your credit. Therefore, by creating a company with € 1, the possibilities to find financing will be lower and will not go through the banking channel.  

Choose your legal status to open a beauty salon

The choice of legal status is a must if you want to create a beauty salon. But before addressing the legal status, it is necessary to distinguish the nature of the activity of a beauty institute. Indeed, the activity can be craft, or craft and commercial at a time. 

Beauty salon with a craft activity

A beauty salon carries out a craft activity in the measure the services of services proposed result from a manual work. In addition, the company must have no more than 10 employees to talk about craft activity. Otherwise the activity is commercial. 

Beauty Salon exer ç ant artisanal and commercial activity 

In addition to providing care services, the beauty salon can buy and resell products to its customers (shampoos, lotions ... etc). If a company provides care, and bought to sell, then the activity is artisanal and commercial. 

The choice of legal status to open a beauty salon 

Regarding the legal status, you are entirely free to choose the one that best suits your needs. You have the choice between:

·          the company (SARL, EURL, SNC ... etc),

·          the sole proprietorship,

·          the status of auto-entrepreneur, 

·          the status of  independent home seller (VDI) .

But how to choose the most suitable status? The right thing to do is to ask yourself the following questions:

·          do I want to associate or work alone? 

·          what type of input is what I want to do? 

·          Is this contribution weak or important? 

·          do I want to unite or separate my heritage from the company's assets ? 

·          the benefits I want to achieve will be high or low? 

·          which social system would I like to be affiliated with: general social security scheme or social system of the self-employed (RSI) ?

Know that any social status has advantages and disadvantages. Choosing a status is a crucial step, so we strongly recommend that you seek advice from a  chartered accountant . 

Administrative formalities for the creation of a beauty salon

The administrative formalities for the creation of a beauty salon are the classic formalities, namely:

·          the drafting of the statutes,

·          the registration of the company,

·          the publication of a legal advertisement ,

·          the formalities related to the lease in commercial lease. 

Depending on the legal status chosen, the formalities can be more or less long. But know that the auto-entrepreneur benefits from very simplified formalities.  

Chartered accountant beauty salon

The profession of the accountant is to help the creators of beauty salon , spa and massage to realize their project of creation of company. Throughout the questions suggested above, an accountant can help you make the right choice of legal status and the best tax formula for your beauty salon. 

If you wish to be discussed with an expert accountant do not hesitate to fill out our form below, our partner will help you for free in the search for a chartered accountant that will suit you.