![How to Start a Successful Salon Business in Kenya [2024 Guide]](https://omokadigital.com/wp-content/uploads/2023/03/ACTUAL-DESIGN-This-is-what-we-publish-1.png "How to Start a Successful Salon Business in Kenya [2024 Guide]")
The salon business in Kenya has had tremendous growth over the years. Compared to about 10 years ago, hair care is now a highly profitable industry with plenty of opportunities for aspiring entrepreneurs.
However, getting into the salon business is not exactly a walk in the park for new beauty enthusiasts. There are a lot of things that you need to consider. From drawing up a viable budget, buying the right salon equipment and find a strategic location; it can all get very overwhelming.
Lucky for you, we did plenty of research and prepared this guide to help you get started quickly. We will be going over the vital requirements you need, plus some tips to help you take your business to the top quickly.
Let’s start with the basics…
INTRODUCTION:
Basics of Salon Business in Kenya
In this section, we discuss the basics of the salon business in Kenya including the market overview, why you should start this business, how much you need to start and how much you can expect to make in profit.
Salon Business in Kenya: Market Overview
Kenya’s hair care industry is valued at more KSh. 132 billion.1 The industry has attracted the attention of many entrepreneurs including celebrities looking to have a share of the beauty fortunes.
The industry has seen tremendous changes, shifting from being just a women’s business and now has the interest of both genders. According to The Standard,2 more men are now going into the beauty business.
What’s more, Statista estimates that the Revenue in Kenya’s hair care segment will likely cross US$0.53bn in 2023 and the market is expected to grow annually by 7.62%.3. This is a significant growth considering that 10 years ago, the industry was valued at less than KSh. 20 billion.
This indicates that their is increasing demand for salon services in Kenya, making this a great business to vendor into.
Most people who are already in this section, are making great fortunes.4 According to several reports, consumers now prefer natural and organic hair products. There is also increased focus on ingredients such as calamine and cactus as well as products that promote hair growth.
This is something you should keep in mind to ensure that you are at par with consumer needs.
Why You Should Start a Salon Business in Kenya
Starting a salon business in Kenya can be an appealing venture for several reasons. Here are some key factors that make it an attractive option:
- Growing Demand: Kenya’s beauty and salon industry is experiencing steady growth due to changing consumer preferences, increasing urbanization, and rising disposable incomes. Kenyans are becoming more conscious of their appearance and willing to invest in beauty and grooming services, creating a robust market for salon businesses.
- Diverse Customer Base: Kenya is a culturally diverse country with a wide range of ethnicities, each with unique hair and beauty needs. By offering specialized services tailored to different hair types, textures, and styles, you can tap into this diverse customer base and cater to their specific requirements.
- Employment Opportunities: Starting a salon business in Kenya can contribute to job creation and provide employment opportunities for local communities. The industry is labor-intensive, and by hiring skilled stylists, beauticians, nail technicians, and support staff, you can make a positive impact on the local economy.
- Entrepreneurial Freedom: Opening a salon business allows entrepreneurs to pursue their passion for beauty and creativity while having the freedom to shape their business according to their vision. You have the opportunity to create a unique brand, develop innovative services, and establish a loyal customer base.
- Low Barrier to Entry: Compared to many other industries, the beauty and salon sector has relatively low barriers to entry. While it requires initial investment in equipment, supplies, and salon space, it is possible to start small and gradually expand as the business grows. This makes it accessible for aspiring entrepreneurs with limited capital.
- High Profit Potential: With the increasing demand for beauty services, salon businesses have the potential for good profit margins. By offering a variety of services, upselling retail products, and building a loyal customer base, you can generate a steady stream of revenue and achieve profitability.
- Continuous Growth and Innovation: The beauty and salon industry is constantly evolving, with new trends, techniques, and technologies emerging. By staying updated with the latest developments, investing in training and education for your staff, and incorporating new services and products, you can position your salon as a leader in the market and attract a discerning clientele.
Despite these reasons, you will need to conduct thorough market research, develop a comprehensive business plan, and consider factors such as location, target market, competition, and regulatory requirements in order to be successful.
How Much Do I Need to Start a Salon Business in Kenya?
A rough estimate for starting a small to medium-sized salon business in Kenya can range from approximately KES 10,000 to KES 2,000,000 or more, depending on the factors such as the location, size, scope of services, and your business model.
Here are some key aspects to consider when estimating the initial investment:
- Salon Space: The cost of renting or purchasing a suitable space for your salon will depend on the location and size. In prime areas, rental costs tend to be higher. Consider the number of styling stations, treatment rooms, reception area, and other facilities you require.
- Equipment and Furniture: You will need salon equipment such as styling chairs, shampoo units, hairdryers, styling tools, manicure and pedicure stations, beauty beds, and other essential equipment. Additionally, you will need salon furniture like reception desks, waiting area seating, and storage units.
- Salon Supplies: Budget for an initial stock of haircare products, skincare products, nail polish, beauty accessories, and other consumables required for providing services to your clients.
- Licensing and Permits: Obtain the necessary licenses and permits as required by the local government regulations. These may include business permits, health permits, and any specific permits related to the salon industry.
- Staffing and Training: Factor in the cost of recruiting and training your staff, including hairstylists, beauticians, nail technicians, receptionists, and other support staff. Training expenses might include professional courses, certifications, and ongoing development programs.
- Marketing and Promotion: Allocate a budget for marketing and advertising to promote your salon business. This may include developing a website, social media presence, printed materials, and other marketing initiatives to attract customers.
- Utilities and Operational Expenses: Consider ongoing operational costs such as electricity, water, internet, telephone, salon software for scheduling and management, insurance, and other administrative expenses.
- Contingency Fund: We recommend setting aside a contingency fund for unexpected expenses, maintenance, repairs, or slow business periods during the initial stages of your salon business.
While it’s challenging to provide an exact figure, conducting a thorough business plan, seeking advice from industry professionals, and consulting with a financial advisor can help you determine a more accurate estimate based on your specific business goals and requirements.
Is a Salon Business Profitable in Kenya?
Yes, generally, a salon business in Kenya can be profitable. However, the profitability will vary depending on various factors such as location, target market, competition, management, and the ability to attract and retain customers. While the beauty and salon industry in Kenya has seen growth and offers potential for profitability, success is not guaranteed, and individual results may vary.
Here are some considerations regarding the profitability of a salon business in Kenya:
- Market Demand: The growing demand for beauty services and products indicates the potential for profitability. However, it is essential to assess the specific market demand in your chosen location and cater to the needs and preferences of your target customers.
- Competition: The level of competition in the salon industry can impact profitability. Consider the number and quality of existing salons in your target area. If the market is saturated or dominated by well-established competitors, it may be more challenging to attract customers and achieve profitability. Differentiation through unique services, exceptional customer experience, and strong branding can help you stand out from the competition.
- Location: The location of your salon can significantly impact profitability. Choose a strategic location that is easily accessible, visible, and convenient for your target customers. Consider factors such as foot traffic, parking availability, and proximity to residential areas or commercial hubs. A prime location can attract more customers and positively impact profitability.
- Pricing and Services: Setting competitive yet profitable pricing is crucial. Conduct market research to understand the average pricing for salon services in your area and ensure that your pricing is reasonable for the target market. Offering a diverse range of services and packages can help attract different customer segments and increase revenue streams.
- Customer Retention: Building a loyal customer base is key to the long-term profitability of a salon business. Providing excellent customer service, personalized experiences, and maintaining high standards of quality can help retain customers and generate repeat business. Implement customer loyalty programs, referral incentives, and effective marketing strategies to encourage customer retention and word-of-mouth promotion.
- Operational Efficiency: Effective management and operational efficiency play a vital role in profitability. Managing costs, optimizing staff schedules, controlling inventory, and monitoring financial performance are essential to maximize profitability. Additionally, investing in staff training and development can improve service quality and customer satisfaction, leading to increased profitability.
It is important to conduct a thorough analysis of the local market, develop a comprehensive business plan, and regularly review and adapt your strategies based on market dynamics and customer feedback. While the beauty and salon industry in Kenya can be profitable, success requires diligent planning, effective management, and a focus on delivering exceptional customer experiences.
What Do I Need to Start a Salon in Kenya – Equipment & Requirements
Setting up a salon business in Kenya requires various equipment and supplies to provide a range of services to your customers. Here is a comprehensive list of equipment typically needed for a salon business:
- Salon Furniture:
- Styling chairs
- Shampoo chairs and bowls
- Styling stations with mirrors and storage
- Reception desk and chairs
- Waiting area seating
- Manicure and pedicure stations
- Facial and massage beds
- Hair Care Equipment:
- Hairdryers (with hood or handheld)
- Hair straighteners and curling irons
- Hair clippers and trimmers
- Hair steamers
- Hair color mixing bowls and brushes
- Hair rollers and perm rods
- Hair sectioning clips and combs
- Skincare Equipment:
- Facial steamers
- High-frequency machines
- Microdermabrasion machines
- Galvanic machines
- Facial trolleys and magnifying lamps
- Hot towel cabinets
- Extraction tools
- Nail Care Equipment:
- Manicure tables
- Nail drills and files
- UV/LED nail lamps
- Nail polish racks and displays
- Nail sterilizer and sanitizing equipment
- Nail dust collectors
- Acrylic and gel nail extension equipment
- Spa and Massage Equipment:
- Massage tables
- Hot stone warmers
- Body treatment equipment (scrubs, wraps, etc.)
- Aromatherapy diffusers
- Waxing equipment (wax warmers, spatulas, strips)
- Paraffin wax baths
- Sanitation and Hygiene Equipment:
- Autoclave or UV sterilizers for tools
- Disposable liners for pedicure chairs
- Hand sanitizers and dispensers
- Towel warmers and laundry equipment
- Waste bins and disposal systems
- Cleaning supplies and disinfectants
- Retail and Display Equipment:
- Product display shelves and racks
- Mirrored retail display cabinets
- Cash register or point-of-sale system
- Retail product inventory management system
- Miscellaneous Equipment and Supplies:
- Salon trolleys and carts
- Mirrors and salon decor
- Hair washing basin accessories (shampoo, conditioner, towels)
- Disposable gloves and aprons
- Hair and beauty product inventory and storage systems
- First aid kit and safety equipment
Remember that this list may vary depending on the specific services you offer and the size and scope of your salon business. It is advisable to research industry standards, consult with suppliers, and consider local regulations while procuring the necessary equipment for your salon business in Kenya.
Now that we have the basics out of the way, let’s go through the steps to starting a salon business in Kenya.
Capital: How Much Do I Need to Start a Salon Business in Kenya?
You will need at least KSh 50,000 to start a successful salon business in Kenya. While you may get off the ground with a lower amount, it will take significantly longer to see any viable profits.
Generally, we recommend that you start with an initial investment of 100K. The amount will vary depending on which equipment you settle for and the location you rent out.
There are three ways you can get money for your salon business:
- Savings – The ideal way to get the capital would be to save up for some time. This way, you don’t feel any financial pressure if things don’t pick up fast.
- Loan – Instead of waiting until you save enough, you can approach your bank or a Sacco to lend you. Just be careful not to take a loan with high interest or unfriendly terms that might cost your business.
- Friends and Family – If you have friends or family members who can support you financially, don’t hesitate to approach them.
Location: Which are the Best Places to Start a Salon Business in Kenya?
The location of your salon can break or build the business. This determines how much you pay up as rent or lease. Additionally, it also dictates the type of clients you will have and in what numbers.
When choosing a location, aim to get a place that is as busy as possible. Target city centres or inside estates.
Another thing you have to consider is the type of customers you want to draw. If you want to cater to the middle class and below, you don’t have to go to a city centre and you do not need a lot of space.
On the other hand, if you want to target high-end clients, you need to get a huge, posh place that has enough parking for at least 4 clients at a time.
After getting the perfect space, you need to renovate it to fit a salon set-up. Unless you get a place that is already a salon, you will most likely find a plain room or space. You have to get it fitted with glasses, wiring that favors your equipment position, and paint the premise with cool colours and graffiti to entice customers.
In general, when picking a location for your salon:
- Ensure that it is easy to find
- Ensure that most of the people living around there are likely to need salon services
- Research your competitors. Found out how other salons in the area are doing. Discover their weaknesses and make them your strengths (more on this later)
Skill and Labor: Do I Need Training Before Starting a Salon Business?
Hairdressing is all about the skill. If you know what you are doing and the customer loves it, they will come back again and bring more people while at it.
In case you are completely blue, you can take some classes tp sharpen your skills. While you might be a natural in cornrows or braids, you need to learn the art behind it.
On top of that, salons are not only for hairdressing, you should know how to do facials, manicures, and pedicures. Every professional hairdresser must be able to convince their customer they are competent and training is a great pitching point.
Currently, enrolling in a hair and beauty college will throw you back by around 15k per term. We recommend you get a skilled hairdresser to train you if you want to keep the costs low.
On the other hand, you might not be able to do all the work on your own even if you get the training. That means you will still need to hire a few extra hands in order to be more efficient.
However, we advise you not to get more manpower than you need, it will only cost you more. You can continue hiring more personnel as the salon grows.
Equipment: What Equipment Do I Need to Start a Salon Business in Kenya
A bigger share of your budget will go into buying salon equipment. There are necessities you can’t begin without:
Work Station
This is usually a wooden or metallic structure complete with a mirror, drawers, and compartments.
Apart from being convenient to a client, it also makes work easier. You get different safe spaces to store your change money and all the other subtle things you will need.
Do not forget to include a washing station. If you are on a tight budget, let your local carpenter make one for you. The workstation will cost about KSh 20k and KSh 2,000 on average for the hair washing stand or sink.
Blow dryer, Water heater, and Hairdryer
You will rarely miss these three in a salon. For a new, good quality blow dryer, you will need about Ksh.20-30k. If that will throw you off budget, consider getting a workable second-hand one. In that case, you will pay about half the price for it.
There is a vast variety of water heaters in the market. While the classic water heating coil rods are outdated, you can still get some at the beginning because they are cheaper. That is about KSh 300. The safest option is getting a water heating jug or an electric kettle for around KSh 5,000
For a hairdryer, you can get one with as little as KSh 3,000. Since it is not costly, there is no need to buy a used one even if it is in mint condition. As you grow, you can add a tong or a flat iron. Otherwise, for starters, it is not mandatory because the two can do the job.
Hair Styling Chairs
In an ideal situation, you should get a few adjustable styling chairs. These chairs not only make the client feel more comfortable but also make the whole salon look better.
A single adjustable chair goes for about KSh 20k. You can begin with 2 or just get one if you will have no employee.
For a friendlier budget, you can begin with a few plastic chairs instead. You will get this with around KSh 650 each. Remember to include a small size chair for your young customers too.
Other Necessary Salon Items in Kenya
Apart from the equipment named above, you will also need other small like this hairdresser apron.
There are items you simply can’t do without. Shampoos, conditioners, combs and brushes, cosmetics, hair chemicals, etc. You’ll also need aprons, towels, protective gloves, head wraps, and heat caps.
If you will be offering manicures and pedicures you need to buy the tools as well.
There are a couple of popular stores you can get these items. For the products, consider places like;
- Prestige Global Link Limited
- House of Braids
- Salon Quip
You will get good products at fair prices. For the towels and aprons, you can even get them from an open-air market near you.
In summary, KSh 10k should be enough to buy all the items for a start. Put in mind that the quality determines the price, therefore, don’t go for the lowest price tags. Your clients’ needs are very important, never compromise on quality.
Certification: What Legal Requirements Do I Need to Start a Salon Business in Kenya?
Like every other business in Kenya, you will need a few certificates if you want to operate legally. Firstly, you need a trade license. Your local county government will price your trading license according to the size and location of your business. You will have to go to their offices to apply for one and follow due process.
For a trade license, you will part with an amount between Ksh 3k to Ksh 15k. You will also have to get a health certificate and a fire safety certificate. You will get a health certificate from any government or private hospital for KSh 1,000 or less. It is essential to guarantee your customers a healthy environment.
For a fire safety certificate, you can get it from your local county government office, like the trade license. Almost every activity in a salon uses electricity and produces a lot of heat. You need to be able to counter any fire accident that might occur swiftly and safely.
Generally, with KSh about 20k, you will get all three certificates.
The Bottom Line
We hope you now understand how to start a successful salon business in Kenya. As it is with any entrepreneurial enterprise, adequate and realistic planning is the key. Don’t be scared to start small either, a long journey begins with a single step. Your salon journey begins now.
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