What is a Salon Suite? Considerations for Beauty Businesses

Getting out of a commercial salon is one of the biggest steps you can take as an esthetician. There are plenty of spots to rent a small space and experience a taste of running your own business.

Salon suites are the way to go if you’ve already established a clientele and want a more private space. Usually, these suites are in a larger business that rents out space to a variety of health and beauty experts.

Even though you may dream of a space totally your own, salon suites are the perfect spaces to build your brand. Once you’ve established your business, then it might be time to move into a traditional salon of your own.  

Fed up with working for someone else? Salon suites are the next best thing to owning your own shop.  

We’re taking a look at the pros and cons of this business model, so strap in!

Things to think about when considering renting a salon suite

Building your brand is one of the most important things you can do as a future beauty business owner. Working under someone else is often necessary in the beginning. A salon suite is an affordable, low-risk option when you want to strike out on your own. With the right investment, you’ll be a great success!

What do you need to have your own space in a salon suite?

Before moving into your own space, you’ve got to have the clients to support your costs. When you’ve built up a strong client list, then you need to think about savings. Starting any business requires education capital, and if you’re underfunded, you’ll be starting off on the wrong foot. 

Take some time before you make the leap to get your finances in order, and don’t forget about a rainy day fund!

Most suites provide basic amenities like Wi-Fi and laundry in the building for an additional charge. They don’t, however, provide the ambiance and personality of your brand. Infusing your suite with your brand reinforces to your clients that you’ve stepped up and have something different to offer.

Salon suites support many people in the beauty industry

One of the best features of salon suites is that you’ll be surrounded by other professionals, not just estheticians. These spaces rent out to nail techs, hair stylists, and massage therapists. You’ll love being surrounded by all of the positive energy as long as you pick the right building! 

The pros of a salon suite

Any business decision comes with pros and cons, and with salon suites, there are lots of pros! Starting your own business can be risky, but salon suites provide a little extra support initially. 

When in a salon suite, you are your own boss

Once you open the doors of your suite, you’re the boss. You can set your hours, rates, and policies and select your clients. Unlike working in a larger salon, you can decide on the decor, business name, branding, and client outreach. 

There is less of a financial risk versus opening your own salon

Renting a room is much less risky than a whole building. You won’t be responsible for things like setting up utilities or repairs. That way, you can focus on building your business instead of pouring your hard-earned money into the building. 

Cost varies depending on the market you’re in. You should expect to pay around $300 to $800 per week in bigger cities. In smaller cities and towns, you’ll probably pay something like $200 to $500 per week. This is why having a client base to support your new business is so important!

Your customer service will be entirely in your control

In this new business venture, you get to control customer service. While you may want to contract with a booking service or invest in booking software, it's all up to you! As the boss, you’re the one who determines your client experience. 

You won’t be required to push specific products or try to upsell to your clients. Instead, you’ll get to focus on providing the kind of service you want your clients to talk about!

All profits are completely yours

Once you’ve paid your bills, all the profits are yours to keep or invest! Focus on keeping your rental costs below 15% of your overall revenue. That way, you’ll have plenty to invest in marketing and advertising your new business!

The cons of a salon suite

Renting a salon suite isn’t all sunshine and roses. Some drawbacks might give you some things to think about before making the jump. 

There is no help involved with running the business

When you’re running your own business in a salon suite, you’re a one-person show. Marketing and booking become your responsibility unless you pay someone to help you. We recommend getting good liability insurance just in case you have unhappy clients to deal with. 

It is still a financial risk

Beyond these considerations, you’ll also want to consider an accountant to help you with the financials. You’ll undoubtedly love the freedom you get from owning your business, but it’s a complex proposition. 

Unforeseen circumstances arise occasionally, and you may not have the clients to support your new business. This is a risk, but not one that’s impossible to overcome. A robust and detailed business plan at the start should set you on the right path!

Walk-in clients are not common

If you relied on walk-in clients in your previous position, you’d want to build up your clientele before moving. Generally, salon suites don’t generate much business this way. Most of the people who walk through the door of the building have appointments already. They know why they’re there and who they’re going to see.

Bosses in Beauty is here to make it easy to decide your future beauty business decisions!

At Bosses In Beauty we provide the best education and information to current and future estheticians. We’ve been there and know the best way forward for beauty businesses on the move! There’s not always a clear path forward for new business owners. But with our programs, you’ll learn the most important things about building a successful business.

Don’t spend your time and talent working for someone else.