Table of contents
Are you a stylist or beautician who’s been dreaming of the perks of working from home? Working remotely is now common in many industries and professions, and we’re happy to say it’s a possibility for salon owners, too.
Setting up a salon at home might also be easier than you think, and there are a bunch of benefits – you can set your own hours and prices, focus on the work you enjoy most, and create a space that’s comfortable and just the way you want it.
Legal requirements of starting a home salon
There are a few important legal requirements you’ll need to meet before you can open a salon at home. They’re not too demanding and mainly involve registering your business with an ABN, choosing the business structure that’s right for you, gathering the right permits from your local council, and making sure you meet the relevant health and safety standards for your state or territory.
Business registration
First things first. If you’re setting up a salon at home, you are no longer an employee – you’re a business owner and you’ll need an Australian Business Number (ABN) to operate legally. You can apply for one through the Australian Government’s Business Registration Service. There are companies out there that will charge to do this for you, but it’s easy and free to go through the official channel. You will likely want to register as a sole trader, but you should be aware that there are several business types, and it’s a good idea to understand the differences so you can work out what’s best for you.
If you intend to trade under a name other than your own, you’ll also need to register your business name. You can do this with the Business Registration Service at the same time as you apply for an ABN. Or, if you’ve already got an ABN, you can register through the Australian Securities and Investments Commission (ASIC). Note, there is a fee to register and to keep your name registered each year.
Permits and zoning
Each state and territory in Australia has its own zoning laws, and it’s up to local councils to determine the classification for each area of land (e.g. residential, commercial, industrial) and how it can be used. The Australian Business Licence and Information Service has an online tool that provides relevant information based on where you are and your type of business. It’s also a good idea to check directly with your council – they’ll be able to tell you if there are any restrictions on opening a salon in your home and whether you’ll need permits or licences.
If you’re renting your home, you’ll also want to look at your rental agreement or check with your agent or landlord to make sure this is okay. And if you’re living in a place with multiple residences, like an apartment building, you should talk to the owners corporation to ensure there aren’t any restrictions.
Ensure compliance with health and safety standards
Every business in Australia is required to provide a safe working environment, and each state and territory has its own work health and safety (WHS) laws and a regulator to enforce them. Some key considerations for salons include working practices and use of equipment, using and storing hazardous substances, and maintaining a clean and hygienic workspace. It’s also essential for any business (and home) to have an emergency plan and a well-stocked first aid kit.
Look up your state or territory’s WHS regulator to find industry-specific information and guidelines on your obligations. By introducing and maintaining best-practice health and safety standards, you’ll be protecting yourself and your clients from injury and illness – which is another important step to ensure the success of your home salon.
Design your salon space
You’ll be working from home, but you don’t want your clients to feel like they’re sitting in a spare room in your house. If there are piles of books, old clothes or unwanted pieces of furniture hanging around, it’s time for them to go to the op shop, or at least into another room.
You want your salon to look like a salon. It needs to feel like its own space, and ideally it will reflect your brand’s aesthetic and identity. Putting some thought into this and creating a space that’s uniquely yours will make it more enjoyable to spend time in, both for you and your clients.
When choosing where to set up your home salon, try to pick a room or space with good lighting that will be comfortable to work in. If you have family or housemates at home during your work hours, you’ll want some separation between your salon and the rest of the dwelling, ideally a room with a door or a space that can be screened off to provide privacy for your clients.
Now it’s time for the fun part – as long as your idea of fun involves interior design and branding. If this isn’t your thing, you can always ask someone else for help or advice, and keep things simple and minimal if in doubt. Giving a space a new lick of paint is always a nice idea, so choosing your colour palette can be a good place to start. Go with whatever colours you feel will make the space inviting and pleasant to be in. It never hurts to do some tests, and you can always paint over them if you change your mind. If you’re going to the effort of creating a brand name, logo or business cards, think about how you could align these with the space.
Next, you’ll want to bring in a few personal objects, posters or well-chosen pieces of art to decorate the space and make it feel like yours. If you want to go minimal, consider just having a few plants to bring some life and extra colour to the room.
On a practical note, installing a couple of wall hooks or shelves will give clients a place to leave their coats or bags. You might also like to get an armchair if you have clients who visit together or regularly bring someone with them.
Create a retail display
As well as providing your services, you may want to think about selling retail products to your clients as a way of generating additional income. If there’s a brand you already use and love you can ask to stock its products, or you could try to get your hands on a few different samples to make up your mind.
If you do decide to stock products, put some thought into creating an attractive display where your clients will see them, ideally next to your point of sale (POS). Square Appointments makes it easy to add retail sales when your newly styled client, feeling fabulous, asks how they can maintain their new look.
Invest in essential salon equipment
For any salon, at home or not, you’re going to need some essential equipment and items, for example:
- A comfortable salon chair
- A wet station
- A styling station with a large wall mirror
- Functional storage space for all your styling products
- Styling tools
- Towels and capes
- Hygiene and sanitation supplies
- A credit card reader for taking card payments
- A POS for selling products and taking other popular payment methods like Afterpay and gift cards
You can spend a lot on these items if you want the very best or if you know that your clients will expect the best. Another option is to look for good-quality second-hand equipment. This can be a great way to reduce your startup costs, especially on big-ticket items like a salon chair and a wet station. It might even suit your brand if you’re chasing a retro or vintage feel for your home salon. Buying second-hand can also be a good choice if you’d prefer to spend most of your money on top-of-the-line styling tools. You can always upgrade items later once you’re established and can afford to splash out.
Obtain relevant insurances
Even if you never run with scissors, accidents can occur in any home or business. If a client injures themselves while visiting your home salon, there’s a chance you could be legally liable to pay compensation. Public liability insurance will cover you against a claim made by someone who has suffered personal injury or property damage while at your home business. It protects you and your business against financial loss relating to legal fees, medical expenses and any compensation you may be required to pay. Additionally, it shows that you are a responsible business owner who considers the health and safety of your clients.
If there’s going to be anyone else working in your salon as an employee, you’ll also need workers’ compensation insurance to cover financial hardship due to an accident or illness. Depending on your situation, you may need to consider other forms of insurance as well. The Australian Government’s business website has a helpful overview of the different insurance types.
Build a professional website and social media presence
Establishing an online presence is an essential step for almost every small business, home salons included. A well-designed website that reflects your brand will help you to reach new clients and showcase your work. If you’ve already designed your home salon space, it might be a good idea to match the colour palette or overall aesthetic in your website design. The good news is that Square Online is free to get started, offers a range of stylish templates and integrates seamlessly with Square Appointments.
You’ll want to include descriptions and prices for each of your services, an online booking function and your contact information. If you’re going to stock styling products in your salon, you might want to add an online store so that you can also sell them over the web.
A page or section with a short bio and your picture can be a great way to introduce yourself and share what you’re passionate about. And don’t forget to show off your skills – add photos of your best work and any client testimonials, if you have them. Hint: if you don’t have any testimonials, ask some of your best customers if they can give you one. There’s no better way to sell your salon than through the words of happy customers.
Once your website is up and running, you can start creating (and linking) your social media. Due to the highly aesthetic nature of salon work, Instagram is probably a must, but other platforms like Facebook, TikTok and YouTube all have their own place and are good for different reasons. A Facebook account can act like a second website, with contact info, links, photos and reviews. Better still, with Square Appointments, you can add a ‘Book Now’ button directly to your Instagram and Facebook profiles so users can book directly with you without leaving the app. Meanwhile, TikTok is great for short-form content like beauty tips and tricks, and YouTube is perfect for longer tutorials.
Using more than one platform can show that your business is credible and legitimate, but really it’s up to you. Whichever ones you choose, it’s important to keep them updated and to post regularly.
Craft your marketing plan
Okay, you’ve set up a website and some social media channels, but don’t put your feet up just yet. To get people noticing and excited about your salon, you’ll need to put in a little extra work. And you’re going to want a marketing plan.
Your social media platforms are a good place to start. As we said above, salon work is all about aesthetics and therefore it’s a goldmine for content. But you’ll want to be strategic – allocate some time once a week to sit down and plan your posts. Try to come up with a variety of content ideas and tailor what you share to different platforms – photos of your latest and best work on Instagram, short how-to clips on Instagram or TikTok, and long-form tutorials on YouTube. To keep your followers interested and to build connection, try mixing things up occasionally with some funny videos or behind-the-scenes content (almost everyone loves to see a salon cat, dog or other animal, if you’re lucky enough to share your house with one). You can also consider investing in paid social media ads to reach a wider audience.
Positive reviews and word-of-mouth referrals also go a long way to bringing in new clients. After all, many people feel unsure about going to a stylist or beautician they’ve never seen before. Asking happy customers to leave you a positive review on Google or Facebook, and getting them to tell their friends about you, is a great way to build trust. As an extra incentive, you might come up with a special offer – a discount for any customer who’s been referred by a friend, as well as for the friend on their next visit.
Once you’ve got a few clients coming in, you might want to start an email list and ask people to sign up. This is a great way to keep customers updated and engaged, and you can use it to send out promotions and special offers. With Square’s email marketing software, it’s easy to add new contacts, create custom emails for target groups (e.g. new, regular or lapsed clients) and keep track of how people engage with your campaigns.
Your clients will mostly be people who live locally, so why not get your salon noticed in other businesses and community venues? This could be as simple as creating attractive postcards (perhaps with a promotional offer or discount code) and asking cafes, shops and bars if you can leave some on their counter or in their window. You could even work out an agreement with another business whereby you each offer discounts to the other’s customers.
Home salons may find they have an advantage over traditional salons as living costs continue to rise in Australia. With lower overheads relating to rent and power, there’s an opportunity for you to offer more competitive pricing than your competition. Lower rates coupled with professional service may help you to bring in more customers and keep them coming back.
Implement a client loyalty program
Getting new clients is the hardest part. If they love your work, there’s a good chance they’ll come back again. But it never hurts to offer an extra incentive. Creating a loyalty program is a perfect way to reward your customers for doing business with you. There are various types of loyalty programs, but for beauty services, you’re likely going to be offering rewards for repeat visits and regular customers – for example, a discount or special offer every five or 10 visits, or a free styling or beauty product for a certain number of visits in a year. Think about what your clients would appreciate and be creative. Using dedicated software like Square Loyalty can make setting up your loyalty program a breeze and simplify the process of managing and tracking all your offers and rewards.
Set up a seamless appointment system
Most people want the option to make bookings online, whether it’s for a doctor’s appointment or a haircut. Square Appointments is a convenient booking system for clients and also makes life easier for you – it allows customers to make a booking at any time of day or night (our data shows that 39% of appointments booked with Square Appointments are made between 6 pm and 10 am), wherever they are, and you won’t even have to pick up the phone. You’ll have access to a digital calendar where you can see all your appointments in one place, without having to input anything manually or risk double-booking yourself, and you’ll be able to set up automated appointment reminders for your clients to reduce the likelihood of no-shows. With an effortless appointment system in place, you’ll be free to concentrate on the creative side of running your home salon.
Beyond just managing your bookings, Square Appointments helps you run all the different parts of your beauty salon business. It lets you build client profiles so you know exactly what your customers like and purchase. You’ll be able to manage your team’s bookings, set up custom permissions for them, and track their KPIs and sales targets. And you can integrate your client list with powerful Square Marketing tools; you can even let your best customers help with your word-of-mouth marketing by giving them the chance to buy gift cards as presents for their friends and family. That way, they can spread the news and share the love!
