Overview

Launching a small salon in New Mexico requires a methodical approach, beginning with comprehensive business planning and ensuring compliance with state and local regulations. Whether operating in a commercial location or from home, all practitioners must hold individual licenses. Below is a step-by-step guide to establish your salon business successfully.

Step 1: Develop Your Business Plan

A well-crafted business plan serves as your blueprint for success. It will clarify your objectives, outline financial requirements, and assist in securing funding if necessary.

• Identify your niche: Determine the primary focus of your salon—will you offer hair styling, manicures, pedicures, skincare, or a combination of services? Specialization can help differentiate your business within the market.
• Research the market: Evaluate competitors in your area and understand the preferences of your target customers in New Mexico. Consider factors such as pricing strategies, the range of services, and brand positioning. Brand positioning is what you want your business to be known for and what makes your business special.
• Establish a budget: Calculate startup expenses, including licensing fees, equipment purchases, supplies, and marketing efforts. Make realistic assessments of your financial needs and what you can afford.
• Create a marketing plan: Develop strategies to attract and retain clients, such as leveraging social media platforms, local advertising, and referral programs.

Step 2: Fulfill New Mexico Licensing Requirements

Adhering to New Mexico’s licensing regulations is essential for both the business and its practitioners.

• Obtain a personal license: Each professional working in the salon—including cosmetologists, hairstylists, and estheticians—must be individually licensed by the New Mexico Board of Barbers and Cosmetologists. For example, a full cosmetologist license requires 1,600 hours of training and successful completion of both written and practical exams.
• Register your business:

1. Choose an appropriate legal structure, such as sole proprietorship or LLC. Selecting an LLC can offer personal  liability protection.
2. Register your business with the New Mexico Secretary of State. Obtain a Business Tax ID (BIN) number from the New Mexico Taxation and Revenue Department.
3. Secure a salon license for your establishment from the New Mexico Board of Barbers and Cosmetologists.

• Check local permits and zoning: Investigate additional requirements imposed by your city or county, especially for home-based businesses. Review local zoning laws before finalizing your location.

Step 3: Set Up Your Business Operations

Once your business is legally established, focus on the operational elements necessary for running your salon.

• Choose your location: For commercial salons, select a site that is visible and accessible with adequate foot traffic. If operating from home, create a dedicated, professional space that complies with local zoning regulations.
• Purchase equipment and supplies: Invest in high-quality, professional-grade tools, furniture, and products tailored to your salon’s specialty and brand identity.
• Set up operating systems:

1. Open a business bank account to separate personal and business finances.
2. Implement scheduling software to manage appointments, send reminders, and track clients.
3. Obtain business liability insurance to safeguard against potential claims, regardless of your location.
4. Set up operating controls, bookkeeping, and proactively work with a tax advisor.

• Prioritize sanitation and safety: Comply with New Mexico’s strict infection control and safety standards by:

           - Using EPA-registered hospital-level disinfectants.

           - Maintaining a log of disinfection procedures.

           - Utilizing single-use items where required, such as porous nail files and buffing blocks.

Step 4: Promote and Grow Your Business

After setting up operations, focus on attracting and retaining clients to grow your salon business.

• Create an online presence: Develop a professional website and establish business profiles on social media platforms like Instagram and Facebook. Display your work in an online gallery,  using high-quality photos and videos.
• Offer promotions: Entice new customers with grand opening deals, referral discounts, and loyalty programs.
• Focus on the client experience: Deliver outstanding service by fostering a welcoming atmosphere, personalizing treatments, and consistently seeking client feedback to ensure retention.

https://www.rld.nm.gov/uploads/files/16_34_5%20NMAC.pdf