The Complete Guide to Starting Your Own Salon Suite Business

Have you always dreamed of starting your own salon but found the costs and risks too high? A salon suite business could be the perfect solution. With salon suites, you get the independence of business ownership without the huge overhead and liability of a traditional salon.

As a salon suite owner, you lease your own private studio space and are responsible for your own equipment, supplies, and managing your own clients. It provides stylists, estheticians, nail technicians and massage therapists an affordable way to work for themselves, set their own hours and service menus, and build their own business on their own terms.

If you have the skills, ambition, and entrepreneurial spirit, a salon suite business could be your ticket to career freedom and success. Keep reading to learn more about how to start your own salon suite business.

The Salon Suite Market

The salon suite industry targets beauty industry professionals like hairstylists, barbers, estheticians, nail technicians, and massage therapists who want to own their own business but find a traditional salon too expensive and risky. The target customers for salon suite owners are typically middle to higher-income clients interested in high-quality beauty and wellness services.

Salon suites appeal to both professionals and clients looking for a more private, intimate service experience. They have become popular as an affordable, low-risk business model for solo beauty pros or small teams. The salon suite industry can be considered a luxury niche market, as the suite model is a premium service experience that commands higher price points. However, some salon suite owners do cater to a range of client budgets.

The salon suite trend has been fueled by a growing number of beauty industry professionals seeking independence and work-life balance, as well as clients demanding customized services and more privacy. The market for salon suites has expanded rapidly over the past decade and continues to grow as more stylists and clients discover the benefits of the salon suite model.

Your Salon Service Offering

As a salon suite owner, you will lease private studio spaces to beauty and wellness professionals who offer hair, nail, massage, and skincare services to clients. Your core product is the studio space itself along with any amenities like a waiting area, restrooms, and utilities that you provide.

To stand out, focus on attracting high-quality tenants by offering attractive, well-designed studio spaces and excellent customer service. You can also differentiate by targeting a specific niche like blowouts, eyelash extensions, or spray tans. Work with your tenants to determine what additional amenities or marketing efforts may help them better serve their clients.

Services will be delivered in the individual studio spaces with each tenant managing their own clients and set of services. As the owner, your role is providing the space for them to operate their business and delivering additional support and resources as needed.

Develop your salon suite business by first securing a suitable commercial space to lease and build out with multiple private studios. Work with contractors to design the space, build the studios, and ensure proper plumbing, lighting, and ventilation for beauty services. Market locally to attract experienced beauty pros interested in leasing a studio space. Provide resources to help them in starting or growing their own business like an online booking system, marketing guidance, and business tools. Continue improving your amenities and services based on tenant and client feedback.

Economics and Finances

As a salon suite owner, your main costs will be leasing a commercial space and building out the private studio spaces. You will need to determine how many studios can occupy the space and the optimal size/layout for your target tenants. Buildout costs will include plumbing; lighting; flooring; walls/dividers; and ensuring proper ventilation, electrical, and safety measures for each studio. You will also need a general waiting/reception area, restrooms, and possibly a break room or lockers for tenants and their clients.

Ongoing costs include the base rent for your lease, utilities, insurance, maintenance, and any support staff like receptionists or assistants. Your pricing model should factor in the costs of building and running the business, while also remaining competitive for your target tenants and clients.

Most salon suite owners charge tenants a flat monthly rental rate for each studio space. The rate will depend on the size, amenities, and location of your space. You may also charge a small commission on tenant service revenue or retail product sales.

For clients, each tenant will set their own service menu and prices. As the salon suite operator, you do not earn revenue directly from clients. Your income comes from the studio space rent paid by your tenants. To maximize revenue, focus on keeping studio spaces consistently filled with high-quality tenants. You can also earn additional revenue through retail display space rentals or promotional partnerships.

The key to salon suite profitability is controlling costs, setting competitive rental rates for your tenants, and maintaining high studio occupancy. With an efficient business model and dedicated tenant base, a salon suite can be very profitable. However, it is important to understand all the costs involved with leasing and building out a commercial space before pursuing this business idea.

Marketing Your Salon Suite Business

Effective marketing is key to attracting tenants and clients to your salon suite business. Some of the top strategies to focus on include:

Search Engine Optimization (SEO): Optimize your website and Google My Business listing to rank higher in search results for terms like "salon suites" and "beauty studios" in your area. This can help drive more traffic and lead generation.

Social Media: Build a social media presence on platforms like Instagram and Facebook to raise brand awareness, engage with potential tenants and clients, and showcase your studio spaces. Post photos, tenant spotlights, location info, opening announcements, and more.

Email Marketing: Start collecting email addresses from your website and social media followers. Send regular newsletters with salon suite updates, promotions, and resources for tenants. This helps you stay in touch and builds loyalty.

Direct Marketing: Reach out to local beauty schools, salons, gyms, and anywhere else your target tenants and clients may frequent. Provide marketing materials to promote your salon suites and any current availability. You can also organize open house events.

Online Listings: List your salon suite business on sites like SalonSuites.com, SalonPlaza.com, and commercial real estate databases to increase visibility. Make sure all your business details including photos, location, available spaces, and contact info are up to date across the web.

Referral Programs: Word-of-mouth marketing is highly effective for salon suites. Offer existing tenants a referral bonus for recommending new tenants. Provide referral cards or codes for clients to share with friends. Referrals are one of the best ways to find high-quality, long-term tenants and clients.

Partnerships: Team up with local beauty schools, salons, gyms, and skincare brands for cross-promotion. For example, provide space for product trainings or sample giveaways in exchange for promotion to their audience. Look for partnership opportunities that match your salon suite brand and target customers.

Sales Strategies and Processes

For a salon suite business, the primary sales process involves finding and onboarding new tenants to fill studio spaces. Some key steps in your sales strategy should include:

Identifying your target tenants: Focus on beauty and wellness pros in your area that match your brand and business model. This could be recent beauty school graduates, established stylists looking to open their own studio, or independent contractors seeking a professional space to service clients.

Promoting your available spaces: Use your marketing channels like social media, email newsletters, and online listings to spread the word about any current studio vacancies and the benefits of leasing from your salon suite. Provide details on the space, amenities, rental rates, and application process.

Fielding inquiries and scheduling tours: As you receive interest from potential tenants, respond promptly to any questions about your salon suite. Schedule in-person tours for qualified candidates to view the space and discuss the details of leasing a studio. These initial interactions are your opportunity to find tenants that fit well with your business.

Screening and approving tenants: Review each tenant application carefully and schedule interviews with your top candidates. Check their experience, qualifications, references, and commitment to client service. Look for tenants that match your brand standards and will thrive operating their own studio space.

Onboarding new tenants: Once you approve a new tenant, schedule a move-in date to hand over their studio keys and get them settled into the space. Provide resources to help them get started like an operations manual, promotional materials, and guidance on using your booking system or other business tools. Ensure a smooth onboarding process to set your new tenant up for success.

Ongoing support: Continue supporting your tenants after move-in to keep them happy and productive in your salon suite. Address any issues with their space or equipment right away. Share marketing tips and opportunities for cross-promotion. Build a collaborative community where tenants feel invested in the overall success and growth of your salon suite business.

Operations and Execution

To operate a successful salon suite business, focus on the following key areas:

Studio space design and buildout: Work with contractors to design an efficient layout for your private studios that maximizes the total number of spaces. Ensure each studio is properly ventilated, heated/cooled, and equipped for the types of beauty services to be performed. Include high-quality fixtures and cabinetry that is both functional and visually appealing.

Amenities and common areas: Provide amenities that benefit both tenants and their clients like a stylish waiting area, restrooms, employee break room, and possibly retail display space. Keep all common areas clean, well-maintained, and on-brand for your salon suite.

Administrative processes: Develop efficient processes for tasks like touring and onboarding new tenants, collecting rent, handling maintenance requests, and managing bookings or retail space rentals. Use organizational tools like scheduling software, project management systems, and cloud storage to keep everything running smoothly.

Safety and compliance: Ensure your salon suite remains compliant with all local regulations for commercial properties and salon businesses. Install proper ventilation, fire safety equipment, salon disinfecting systems, and security cameras. Provide regular safety training for tenants and their staff. Maintain all required salon business licenses and permits.

Retail partnerships: Work with your tenants to determine if offering retail space for product sales or displays could benefit them and your clients. You can then lease these retail spaces to skincare and beauty brands seeking visibility in salons and spas. Retail partnerships provide additional revenue and enhance the overall client experience.

Community events: Organize community events at your salon suite like open houses, product launches, networking mixers, and educational workshops or classes. These events increase brand awareness, drive traffic to tenant studios, and strengthen the community you are building within your business. Collaborate with tenants, brands, and local organizations to host events that resonate with your target clients.

Legal Considerations

This article provides an overview of how to start a salon suite business. However, it does not constitute legal advice. You must research the specific regulations and requirements for salon and retail businesses in your city and state. Common legal areas you will need to consider include:

•Business licensing and permits: Requirements vary in each state and city for salon suite owners. You will typically need a general business license along with salon permits.

•Commercial leasing regulations: There are laws around leasing a commercial property for a salon business that you must follow. Work with a real estate attorney to review any lease before signing.

•Employment law: Although salon suite tenants are independent contractors, you must comply with laws like the Fair Labor Standards Act (FLSA) for any direct employees like receptionists.

•Retail regulations: If your salon suite includes retail space, you must adhere to laws around sales tax collection, product liability, and consumer protection.

•Safety codes: There are strict building codes and safety standards for salon businesses to follow regarding plumbing, electrical work, ventilation, and the handling/storage of chemicals. All work must be done by licensed contractors.

•Insurance requirements: You will need proper business insurance to operate a salon suite including liability, property, and possibly business interruption insurance. Some leases may require additional insurance.

Consult with legal and insurance professionals to ensure your salon suite business is fully compliant before opening. Failure to do so could result in legal trouble, fines, or even having to cease operations. Be sure to also stay up-to-date with any changes to laws and regulations that could impact your business.

In Summary

A salon suite business provides an exciting opportunity for entrepreneurial stylists and beauty pros. By leasing private studio spaces to tenants, you can help others achieve their dream of business ownership while also reaping the rewards of your own successful company. However, it does require careful planning and execution to build a sustainable salon suite model.

If you have the vision and dedication to create a collaborative community where tenants and clients alike feel supported in pursuing their passion for beauty and wellness, a salon suite could be the perfect creative business venture for you. Do your research, develop a solid plan, and get ready to change lives—including your own—for the better. The freedom and fulfillment of salon suite ownership await!