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How to Start a Laser Hair Removal Salon Business

Laser Hair Removal Business

Do you want to start a laser hair removal business? If YES, here is a complete guide to starting a laser hair removal business with NO money and no experience.

As an aspiring entrepreneur who is looking towards launching a cosmetic cum beauty related business, one of your best bet is to launch a laser hair removal salon business. The right time to start such business is now because the laser hair removal salon industry is presently at its growing stage.

This is so because loads of people who are not happy using clippers or shaving sticks or waxing to remove unwanted hair, are turning to the laser hair removal technique.

As a matter of fact, laser hair removal is one of the most commonly done cosmetic procedures in the united states and even in some countries in Europe. Laser hair removal is a medical procedure that uses a laser. Pigments in the hair follicle absorb the light/laser to remove unwanted hair.

The intense heat of the laser damages the hair follicle which prevents future hair growth. Laser hair removal technique is highly suitable for people who have light skin and dark hair.

Setting up a laser hair removal salon business could be a fun, profitable and an interesting business for someone who is skilled in the trade and with a lot of business perseverance and smartness. With the right location, top-notch service and good marketing skills, you can serve varieties of customers that cut across individuals and corporate clients, celebrities and regular people.

Though starting up a laser hair removal salon business may not require huge start – up capital, but it needs a significant investment capital, solid planning, and attention to details in order to keep your business profitable. If you are diligent enough and if you have good business/marketing strategies, you can build the business from just one outlet to numerous outlets across different cities in the United States of America from the sale of franchise.

Opening a laser hair removal salon might not be entirely easy but one thing is certain, it is a straightforward business that can generate huge and steady profits if well positioned and properly managed. Lastly, before launching your laser hair removal salon, ensure that you read this article and you will be well equipped.

Steps to Starting a Laser Hair Removal Salon Business

1. Understand the Industry

The laser hair removal salon business is part of the Hair Loss Treatment and Removal industry, and the industry is made up of businesses that primarily engage in nonsurgical treatments for hair loss and replacements, as well as hair removal and scalp treatment services.

It is important to state that facilities such as hospitals and medical clinics that also provide hair restoration surgeries are not included in the Hair Loss Treatment and Removal industry.

In recent time, the revenue generated by Hair Loss Treatment and Removal industry players is expected to grow because of the rising emphasis consumers have placed on their looks and physical appearance. Aging males seeking hair loss treatment and females seeking hair removal services are the largest source of clients for the industry.

Going forward, the revenue for the Hair Loss Treatment and Removal industry is projected to grow at a slightly more subdued rate.

Market saturation will be slightly offset by the widening acceptance of hair loss treatment procedures and laser removal technology, thereby bolstering industry revenue. So also, request from adults over the age of 50 will increase. All of these factors will contribute to steady growth for the industry.

The Hair Loss Treatment and Removal Industry is currently in the growth stage of its life cycle. Statistics has it that the Hair Loss Treatment and Removal Industry in the United States of America, generates over $2 billion annually, with an estimated growth rate of 13.7 percent.

There are about 18,657 registered and licensed hair loss treatment and removal salons in the United States and they are responsible for employing about 46,098 people. It is import to start that Idea Image company can boast of having a lion market share in the industry.

Research conducted by IBISWORLD shows that The Hair Loss Treatment and Removal industry is in the growing stage of its life cycle.

Industry value added (IVA), which measures an industry’s overall contribution to the economy is anticipated to grow at an annualized rate of 14.0 percent over the 10 years to 2022. The report also stated that GDP is expected to grow at an annualized rate of 2.0 percent over the same period.

Additionally, rapid industry participation and sensitivity to technological innovations also indicate the industry’s growth. The report further reveals that over the 10 years to 2022, the number of industry enterprises is expected to increase at an annualized rate of 13.9 percent.

The laser hair removal salon line of business will continue to blossom because people will always seek an alternative and effective option as it relates to the removal of unwanted hair and laser hair removal technique happens to be the best option.

Despite the fact that the industry is rapidly growing, there is still room big enough to accommodate aspiring entrepreneurs who intend opening their own laser hair removal salons in the United States of America.

Lastly, if you are considering opening a laser hair removal salon business, all you would need are some capital to purchase or lease/rent a suitable facility, the required equipment and working tools and of course flat screen TV and furniture.

You would also need some additional capital to purchase the initial laser hair removal supply, pay your employees at least for the first 3 months, and also to pay your utility bills.

2. Conduct Market Research and Feasibility Studies

  • Demographics and Psychographics

The demographic and psychographic composition of those who patronize laser hair removal salons cut across people of all genders and age groups, hence the demographic composition of a laser hair removal salon business is all encompassing.

The truth is that when it comes to removal of unwanted hair and other related services carried out by a standard laser hair removal salon, there is indeed a wide range of available customers. In essence, your target market can’t be restricted to just a group of people, but to all those who reside around the locations where you have your laser hair removal salon and who have purchasing power.

So, if you are thinking of opening your own laser hair removal salon business then you should make target demographics all encompassing. It should include corporate executives, students, migrants, entrepreneurs, business people, celebrities, public figures, military men and women, sports men and women, tourists, cyclists, and every adult in the neighborhood where your laser hair removal salon will be located.

3. Decide Which Niche to Concentrate On

It is important to state that there is no known niche area when it comes to the laser hair removal salon business. Every player in this line of business are basically involved in carrying out services expected of a standard laser hair removal salon.

Naturally, it is common to find a standard laser hair removal salon engaged in all or some of the under listed services;

  • Operating depilatory (i.e. hair removal) salons
  • Operating electrolysis (i.e. hair removal) salons
  • Providing hair loss treatment
  • Providing hair weaving services
  • Providing scalp treatment services
The Level of Competition in the Industry

The competition that exists in the laser hair removal salon line of business goes beyond competition amongst laser hair removal salons in your location; you are expected to compete with all players in the Hair Loss Treatment and Removal industry, beauty parlors and hair salons and any other outlets that also carryout laser hair removal services. Thus, it will be right to say the competition in the laser hair removal salon line of business is tough.

The truth is that no matter the level of competition in an industry, if you have done your due diligence and you brand and promote your services or business properly, you will always make headway in the industry. Just ensure you are good at carrying out laser hair removal services, you can deliver excellent customer care services and you know how to attract and reach out to your target market.

But over and above, there are several laser hair removal salons, and players in the Hair Loss Treatment and Removal industry, beauty parlors and hair salons and any other outlets that also carry out laser hair removal services scattered all around the United States.

So, if you choose to start your own laser hair removal salon business in the United States, you will definitely meet stiff competitions amongst these businesses. Besides, there are larger laser hair removal salons that determine the trends in the industry and you should be ready to compete with them for customers.

4. Know Your Major Competitors in the Industry

You will quite agree that in every industry, there are always brands that perform better or are better regarded by customers and the general public than the others. Some of these brands are those that have been in the industry for a long time, while others are best known for how they conduct their businesses and the results they have achieved over the years.

These are some of the leading laser hair removal salons in the United States of America and in the globe;

  • Creative Image Laser Solutions
  • S. Cosmetic Laser Inc.
  • Az Medical Aesthetic & Laser Center
  • Sebastian Laser Hair Removal Center
  • Manhattan Laser Centers of NYC
  • Energist NA – Hair Removal Service
  • Jersey Laser Hair Removal
  • Spa Noa
  • My Spa & Boutique
  • Pure MedSpa Laser Hair Removal
  • Allure Laser Center
  • USA Natural Health Clinic
  • Fine Lines MedSpa – Laser Hair Removal – Anti Aging – Skin Rejuvenation
  • Professional Electrolysis Permanent Hair Removal
  • L’Amore Laser & Medical Spa
  • Simply Beautiful Medical Spa
  • The Wax Studio + Skin
  • Laser Skin Rejuvenation Center
  • Split Ends Salon Lakeland
  • Romeo & Juliette Laser Hair Removal
Economic Analysis

If you are looking towards successfully launching a business and maximizing profits, then you need to ensure that you get your economic and cost analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in.

Laser hair removal salon business might not be a Green business but that does not rule out the fact that you will come across several laser hair removal salons, and players in the Hair Loss Treatment and Removal industry, beauty parlors and hair salons and any other outlets that also carry out laser hair removal services when you drive through town.

So, if you are mapping out your economic analysis, you should carry out thorough market survey and costing of what is required to rent a space where you are expected to open your laser hair removal salon business and the amount required to purchase laser hair removal equipment and other supplies and also the running cost to successfully run the business.

Over and above, if you are considering starting a laser hair removal salon business, then your concern should not be limited to the cost of renting a salon facility and purchasing laser hair removal tools and equipment and other supplies but also on branding and on how to build a robust clientele base. The truth is that if you are able to build a robust clientele base, you are sure going to maximize profits in you laser hair removal salon business.

5. Decide Whether to Buy a Franchise or Start from Scratch

When it comes to starting a business of this nature, it will pay you to buy the franchise of a successful and well – established laser hair removal salon / brand as against starting from the scratch. Even though it is relatively expensive buying the franchise of an established laser hair removal salon brand, but it will definitely pay you in the long run.

But if you truly want to build your own brand after you must have proved your worth in the Hair Loss Treatment and Removal industry, then you might just want to start your own laser hair removal salon business from the scratch. The truth is that it will pay you in the long run to start your laser hair removal salon business from the scratch. Starting from the scratch will afford you the opportunity to conduct thorough market survey and feasibility studies before choosing a location to launch the business.

Please note that most of the big and successful laser hair removal salons around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success.

6. Know the Possible Threats and Challenges You Will Face

If you decide to start your own laser hair removal salon business today, one of the major challenges you are likely going to face is the presence of well – established laser hair removal salons and other players in the Hair Loss Treatment and Removal industry. The only way to avoid this challenge is to create your own market.

Some other challenges and threats that you are likely going to face is economic downturn and unfavorable government policies. There is nothing you can do as regards these threats and challenges other than to stay positive that things will work well for you.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

Generally, you can either choose a general partnership, limited liability company, or even a sole proprietorship for a laser hair removal salon business. Ordinarily, sole proprietorship should have been the ideal business structure for a small – scale laser hair removal salon business especially if you are just starting out with a moderate start – up capital in a small neighborhood and with just one outlet. But if your intention is to grow the business and have chains of standard laser hair removal salons across the United States of America and other countries of the world via franchising, then choosing sole proprietorship is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.

Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. It is not so for sole proprietorships and general partnerships. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholders meetings and other managerial formalities.

These are some of the factors you should consider before choosing a legal entity for your laser hair removal salon business; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes.

If you take your time to critically study the various legal entities to use for your laser hair removal salon business with the ability to sell franchise and open chains of standard laser hair removal salons all across the United States of America, you will agree that limited liability company; an LLC is most suitable. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public. 

8. Choose a Catchy Business Name

When it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.

If you are considering starting your own laser hair removal salon business, here are some catchy names that you can choose from;

  • Isabella Winston® Laser Hair Removal Salon®, LLC
  • Godstone Hairless ™ Laser Hair Removal Salon, LLC
  • Jessica Wellington® Hair Loss Treatment & Removal Salon, Inc.
  • Clean Cut™ Hair Loss Treatment and Removal Salon, Inc.
  • Universal Hair Team™ Laser Hair Removal Salon & Spa, Inc.
  • Laura Benz™ Laser Hair Removal Salon & Spa, Inc.
  • Rose of Sharon© Beauty Parlor, Inc.
  • Lasting Solutions® Hair Loss Treatment and Removal Salon, LLC
  • Hair Links™ Beauty Parlor Inc.
  • Look Good© Laser Hair Removal Salon & Spa, Inc.

9. Discuss with an Agent to Know the Best Insurance Policies for You

In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your laser hair removal salon business.

Here are some of the basic insurance covers that you should consider purchasing if you want to start your own laser hair removal salon business in the United States of America;

  • General insurance
  • Health/Medical insurance
  • Liability insurance
  • Workers Compensation
  • Overhead expense disability insurance
  • Business owner’s policy group insurance
  • Payment protection insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

In the real sense, if you are considering starting your own laser hair removal salon business, usually you may not have any need to file for intellectual property protection/trademark. This is so because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

But if you just want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection. If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO.

11. Get the Necessary Professional Certification

Aside from your ability to handle laser hair removal and treatment equipment and tools, professional certification is one of the main reasons why some laser hair removal salons stand out. If you want to make impact in the hair loss treatment and removal industry, you should work towards acquiring all the needed certifications in your area of specialization. Certification validates your competency and shows that you are highly skilled, committed to your career, and up-to-date in the market.

These are some of the certifications you can work towards achieving if you want to run your own laser hair removal salon;

  • Senior Laser Hair Removal Technician License
  • Certified Laser Hair Removal Professional (CLHRP) – SCMHR
  • Intense Pulsed Light (Photo-Facial) Certification
  • Skin Resurfacing Certification
  • Leg Vein and Facial Vein Certification

Please note that you cannot successfully run a laser hair removal salon on a small scale in the United States and in most countries of the world without acquiring professional certifications and business license even if you have adequate experience cum background in the hair loss treatment and removal salons industry. You can only start this business after you have successful completion of the Laser Hair Removal Technician Training Program.

12. Get the Necessary Legal Documents You Need to Operate

The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations.

These are some of the basic legal documents that you are expected to have in place if you want to legally run your own laser hair removal salon business in the United States of America;

  • Certificate of Incorporation
  • Business License
  • Tax Payer’s ID / Tax Identification Number
  • Health inspection Certificate
  • Copy of license for the service support facility and/or a recent inspection report
  • Business Plan
  • Non – disclosure Agreement
  • Employee Handbook
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Online Terms of Use
  • Online Privacy Policy Document (basically for online payment portal)
  • Company Bylaws
  • Memorandum of Understanding (MoU)
  • Building License
  • Franchise or Trademark License (optional)

13. Raise the Needed Startup Capital

Starting a laser hair removal salon business can be cost effective especially if you choose to start on a small scale by running a mobile laser hair removal salon business. Securing a standard and well – positioned salon facility and purchasing laser hair removal equipment and other supplies et al are part of what will consume a large chunk of your start – up capital. If you choose to start the business on a large scale, you would need to source for fund to finance the business because it is expensive to start a standard large – scale laser hair removal salon business.

When it comes to financing a business, one of the first things you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.

Here are some of the options you can explore when sourcing for start – up capital for your laser hair removal salon business;

  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell of shares to interested investors
  • Applying for Loan from your Bank
  • Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
  • Source for soft loans from your family members and your friends

14. Choose a Suitable Location for your Business

When it comes to choosing a location for your laser hair removal salon business, the rule of thumb is that you should be guided by the demand for laser hair removal and other related beauty services and easy access to wholesale purchasing of laser hair removal and treatment supplies directly from distributors. Of course, if you are able to secure a central location for your laser hair removal salon business, it will give people easy access to locate your salon.

It is important to note that a business facility in good location does not come cheap hence you should be able to allocate enough fund for leasing/renting in your budget. If you are new to the dynamics of choosing a location for your laser hair removal salon business, then you should feel free to talk to a business consultant or a realtor who has a full grasp of the city and perhaps country you intend starting your laser hair removal salon business.

These are some of the key factors that you should consider before choosing a location for your laser hair removal salon business;

  • The demography of the location as it relates to aging population et al
  • The demand for laser hair removal and other related beauty services in the location
  • The purchasing power of the residents of the location
  • Accessibility of the location
  • The number of laser hair removal salons, and any other beauty salon and spa outlets that also carryout laser hair removal services in the location
  • The local laws and regulations in the community
  • Traffic, parking and security

15. Hire Employees for your Technical and Manpower Needs

On the average, there are no special technology or equipment needed to run this type of business except for laser hair removal equipment and receipt issuing machines, sound system (for playing music), point of sale machines (POS Machines), CCTV cameras and flat screen TVs. So also, you will definitely need computers, internet facility, telephone, fax machine and furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.

As regards leasing or outright purchase of a salon facility, the choice is dependent on your financial standing, but the truth is that to be on the safe side, it is advisable to start off with a short – term rent / lease while test running the business in the location. If things work out as planned, then you go on a long – term lease or outright purchase of the property but if not, then move on and source for other ideal location/facility for such business.

When it comes to hiring employees for a standard laser hair removal salon business with more than one outlet, you should make plans to hire a competent Chief Executive Officer (you can occupy this role), Admin and Human Resources Manager, Merchandize Manager, Salon Manager, Laser Hair Removal and Treatment Specialist, Sales and Marketing Officer, Accounting Clerk, and Cleaners. On the average, you will need a minimum of 5 to 10 key staff members to run a small – scale but standard laser hair removal salon business.

The Service Delivery Process of the Business

Basically, laser hair removal salons make use of a concentrated beam of light that is aimed at the hair. The light is absorbed by the hair pigment which damages the follicle enough to permanently stop future growth. Lasers can remove hair from anywhere for several months to years, as the results differ widely from person to person.

Customers that visit laser hair removal salons explain what they want as it relates to removal of unwanted air from any part of their body, the fee charged is paid before or after and then the process stated above is used to remove all the unwanted hairs.

It is important to state that a laser hair removal salon business may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility; the above stated laser hair removal salon business process is not cast on stone.

16. Write a Marketing Plan Packed with ideas & Strategies

Naturally, running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a laser hair removal salon business, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well – known brands that determine the market direction for the hair treatment and removal industry.

These are some of the marketing ideas and strategies that you can adopt for your laser hair removal business;

  • Introduce your laser hair removal salon by sending introductory letters alongside your brochure to corporate organizations, car owners, households, sports organizations, gyms, schools, socialites, celebrities and other key stake holders throughout the city where your laser hair removal salon is located
  • Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
  • Print out fliers and business cards and strategically drop them in offices, sport facilities, libraries, public facilities and train stations et al.
  • Make first impressions count positively to those that patronize your services for the first time
  • Make use of attractive hand bills to create awareness and also to give directions to your laser hair removal salon facility
  • Create a basic website for your business so as to give your business an online presence
  • Directly market your products
  • Engage in road shows in targeted communities from time to time to promote your laser hair removal salon business
  • Join local laser hair removal and beauty salons business associations for industry trends and tips
  • Provide discount days for your customers
  • Advertise our business in community based newspapers, local TV and radio stations
  • List your business on yellow pages ads (local directories)
  • Encourage the use of Word of mouth marketing (referrals)

17. Work Out a Reasonable Pricing for your Services & Products

One key factor that will help you offer your laser hair removal services at rock bottom prices is to purchase your laser hair removal equipment, tools and other supplies directly from the manufacturers in pretty large quantities. The truth is the higher the quantity of items that you purchase directly from the manufacturers, the cheaper you tend to get them.

Another strategy that will help you offer your services at the right price is to ensure that you cut operational cost to the barest minimum, and channel your efforts towards marketing and promoting your brand name. Aside from the fact that this strategy will help you save cost, it will also help you get the right pricing for your services.

You can also try as much as possible to work with independent contractors and marketers; it will help you save cost for paying sales and marketing executives.

18. Develop Iron-clad Competitive Strategies to Help You Win

The availability of a professional laser hair removal personnel in your salon, your business process and of course your pricing model are part of what you need to stay competitive in the industry. If you are into the laser hair removal business, then it is advisable that you make use of effective laser hair removal supplies and tools and also ensure that you take testimonials from your clients who are satisfied with your services.

Another possible competitive strategy for winning your competitors in this particular industry is to build a robust clientele base and business network. Over and above, ensure that your organization is well positioned, key members of your team are highly qualified and your laser hair removal services can favorably compete with the some of the best in the industry.

19. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

If your intention of starting a laser hair removal salon business is to grow the business beyond the city where you are going to be operating from to become a national and international brand by opening chains of laser hair removal salons and selling franchise, then you must be ready to spend money on promotion and advertisement of your brand.

No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your laser hair removal salon business;

  • Place adverts on both print (newspapers and beauty magazines) and electronic media platforms
  • Sponsor relevant community based events
  • Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, YouTube, Google + et al to promote your laser hair removal salon
  • Install your billboards in strategic locations all around your city or state
  • Engage in roadshows from time to time in targeted neighborhoods to create awareness of your laser hair removal salon
  • Distribute your fliers and handbills in target areas
  • Contact corporate organizations, car owners, households, sports organizations, gyms, schools, socialites, celebrities and other key stake holders throughout the city where your laser hair removal salon is located informing them about your laser hair removal salon and the services you offer
  • List your laser hair removal salon business in local directories/yellow pages
  • Advertise your laser hair removal salon business in your official website and employ strategies that will help you pull traffic to the site.
  • Position your Flexi Banners at strategic positions in the location where your laser hair removal is located.
  • Ensure that all your staff members wear your branded shirts and all your vehicles are well branded with your company logo