Factors affecting Salon and spa industry

The Salon and spa industry is an enormous industry in Florida with around 60 million tourists flocking down to the exquisite beaches. Of all the hairdressers, hairstylists and cosmetologists, 32% are self employed. Barbers lead the pack of having the highest proportion of self employment at 36%. With more than 1.1 million total establishments and annual sales of more than $44 billion, the salon and spa industry is on the rise, according to the economic report of Professional Beauty Association, August 2013. There are various lenders providing small business loans to this growing industry in the state of Florida.

Florida being the 4^th most populous state in The United States of America and is the 8^th most densely populated among the 50 states of the US. State capital of Florida is Tallahassee and is situated in the south east region of the US. Tourism is the major revenue earner for the state of Florida. About 60 million tourists flock down to Florida thanks to the exquisite beaches bordering the state. It has been ranked as the top destination state in 2011. Salon and spa industry hence is bound to bring huge revenues both from the tourists and the locals alike. There are various factors though that affect the setting up of a salon and spa.

Demographics- Demographics play an important role when you are looking to set up your salon business. You need to find out your target group and audience in the location you are planning to set up your shot at. If you open up a salon business in a place which has more of old people then chances are that your business may not do too well. Salon services are mostly used by young and mid age people. More and more people of all age groups though are getting trendier with age.

Taxes- Different states have different tax structures. Make sure the taxes that you will need to pay when you are opening up a shop in New Jersey. There are many tax bills. Carefully evaluate your tax payments as stylists are not employees rather a contractor.

Quality Staff- In order to provide excellent services one must have equally qualified staff. A reputation of a salon increases through the services provided by the staff and the hairstylists. Hiring the best can cost you money.

Multiple revenue Streams- In order to repay the small business loan that you have taken for your salon in Florida, multiple revenue streams are essential in order to bring in more profits. Along with salon services you can also provide spa and massage facilities along with other grooming services. Selling products of companies also bring in revenues as the margins are higher there.

Competition- Florida is a tourist spot hence there are many salons providing services to the tourists and the locals. Competition is huge and hence in order to survive you have to offer many alternative and interesting services to attract more crowds. From competitive pricing to attractive packages, unique offerings and better services is what is going to keep the competition at bay.