Starting your own hairdressing business can be exciting, but it’s important to get it right from the start. This guide will walk you through the key steps to set up your business, ensuring you’re legally compliant and ready to start earning.
-
-
Register as Self-Employed
The first step in setting up your hairdressing business is to register as self-employed with HM Revenue & Customs (HMRC). As a self-employed hairdresser, you’re legally required to report your income and pay taxes, so make sure to register early.
How to register:
- Visit the HMRC website and complete the online registration process.
- You’ll receive a Unique Taxpayer Reference (UTR) number, which you’ll need for tax purposes.
- You’ll also need to file a Self Assessment tax return annually.
-
Get Business Insurance
Protecting your business with the right insurance is crucial. There are several types of insurance you should consider as a self-employed hairdresser:
- Public Liability Insurance: Covers any damage or injury caused to clients or third parties while you’re working.
- Professional Indemnity Insurance: Provides protection if a client makes a claim against your advice or services.
- Equipment Insurance: Covers any damage or theft of your tools and equipment.
Insurance will give you peace of mind and ensure that you’re covered for any potential issues.
-
Set Up a Business Bank Account
Although not strictly required, opening a separate business bank account helps you keep your personal and business finances separate. This will make it easier to track your income and expenses and ensure you meet your tax obligations.
-
Choose a Business Structure
Deciding on your business structure is important for both tax and legal purposes. The main options are:
- Sole Trader: You are the business. It’s simple to set up, but you’re personally responsible for any debts or liabilities.
- Limited Company: The business is separate from you, providing limited liability. However, it’s more complex to set up and requires more paperwork.
- Partnership: If you plan to run the business with another person, a partnership might be the right choice.
Most self-employed hairdressers start as sole traders, but it’s important to choose the right structure for your needs.
-
Set Your Prices and Payment Terms
Before you start taking clients, you’ll need to decide on your pricing structure. Consider your skill level, the local market, and your overheads when setting your prices. Be transparent about your rates with clients, and make sure you have clear payment terms (e.g., how you accept payment).
-
Create a Professional Environment
Whether you’re working from home, in a rented salon space, or as a mobile hairdresser, make sure your working environment is clean, professional, and welcoming. This will help you build trust with your clients and provide the best possible service.
-
Set Up a Booking and Payment System
Investing in an online booking system like FroHub can streamline your operations and make it easier for clients to schedule appointments. For Afro and curly hairdressers, FroHub not only helps you manage bookings but also allows you to effectively market your services to the right audience.
-
Market Your Business
Now that your business is set up, it’s time to let people know about it. Some marketing strategies you could use include:
- Social Media: Platforms like Instagram, Facebook, and TikTok are great for showcasing your work and attracting new clients.
- Word of Mouth: Encourage your happy clients to refer friends and family.
- Local Advertising: Flyers, business cards, or even local online listings can help spread the word.
-
Keep Track of Your Finances
As a self-employed hairdresser, you’ll need to keep accurate records of your income and expenses. This is crucial for tax purposes and helps you stay on top of your finances. Consider using a bookkeeping system or accounting software to manage this efficiently.
-
Starting your own hairdressing business is an exciting journey, and setting it up properly is the key to long-term success. By following these steps and staying organised, you’ll be well on your way to building a thriving business. Remember, every great business starts with a solid foundation – so take your time to get it right.