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British hairdresser turns owner of 4 salons in 7 years in the UAE: Here’s how

After starting her first salon out of a villa, British expat now runs three more parlours



In the seven years since her entrepreneurial plunge, British Tara Rose Kidd now runs a total of four salons, employs 60-plus staff, and set to open her fifth outlet soon.
Image Credit: Supplied

Dubai: Like a lot of other entrepreneurs, British expat Tara Rose Kidd took a chance when she started her first salon out of a villa in Abu Dhabi, given her limited access to funds and business expertise.

But little did Tara know then that in the seven years since her entrepreneurial plunge, she would now be running a total of four salons, employ 60-plus staff, while also getting ready to open her fifth outlet soon.

“I started out my business by setting up my first salon in 2015 in a villa in Khalifa City A. Because it was literally just me setting out on my own, the start-up expenses involved were quite different from the subsequent salons I’ve opened and what we’re doing now,” she said.

“At first, it started with my husband and myself taking out a personal loan and using cash we’d saved in order to get the business going. It wasn’t necessarily the most elaborate plan, but it was exactly what I needed at the time for me to get the ball rolling.”

Because it was literally just me setting out on my own, the start-up expenses involved were quite different from the subsequent salons I’ve opened and what we’re doing now

- Tara Rose Kidd
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Costs of self-starting a salon

Tara, who has been in the UAE for 14 years, estimates that she invested a total of about Dh400,000, with the rent for the building being the bulk of her initial expense, which was around Dh300,000. She also went on to detail how the business license and set-up fees were approximately Dh30,000.

“The interior fit out of the salon and furniture was around Dh50,000 and I spent another Dh40,000 on stock and supplies. Because it was just me in the beginning, I didn’t have to worry about staffing costs or visas for others,” she added.

“Comparatively, by the time I opened my third salon in Mamsha Al Saadiyat in 2020, the all-in cost to get the salon open and running was over Dh1.7 million. From the building to designing and fitting out a salon, and also staffing it, the cost is more than four times what I spent on my very first salon.”

While the investment may have been a lot less in the beginning, Tara explained that the risk was a lot greater for her initially because she never ran a business before. “I’ve learnt though, through the years by opening more salons. I’ve already opened four salons and I’m in the process of my fifth in Al Quoz, Dubai,” she added.

“Overall, the costs rose because of staff and other additional expenses that just weren’t there in the beginning. The bigger the salon, the bigger the expense will be to fit it out, stock it and create the space. But also because we have grown, we are able to really tailor the salon to our exact dream.”

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When Tara first started out as an entrepreneur, she had nearly a decade of experience as a hairdresser.
Image Credit: Shutterstock

Challenges faced, lessons learnt?

When Tara first started out as an entrepreneur, she had nearly a decade of experience as a hairdresser. “So I knew how to cut, colour and all those skills; but, when it came to running a business and being a leader, I had no idea. So that was my first big challenge. I had to learn everything about the business side of the salon, and fast,” she added.

“This was because, in order to really be successful, I knew I needed to invest money into growing the business side of things. When other competitors at that time would save money, I knew I had to invest money into growing, which meant hiring specialists who would help me grow the business over the years.”

In looking to grow her business, Tara added a commission structure as an incentive for her employees, as this is a method that’s also been proven to bring in more business and boost sales of products and services.

“While there are salons that offer higher and lower commission structures for stylists than we do, but honestly, we fall in the upper middle of the range. The cost of running a business is one factor and with our model of re-investing back into the business, we look at when we are offering the highest commission, there is nothing left to invest back into the business,” she said.

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“While a growing team and having specialised individuals in the back office has increased the overall operating expenses, it is worth the investment being put in as it’s offered more career growth opportunities for the stylists and more overall business growth opportunities for the brand.”

By the time I opened my third salon in Mamsha Al Saadiyat in 2020, the all-in cost to get the salon open and running was over Dh1.7 million

- Tara Rose Kidd

Strategies to help grow your finances?

For Tara, her family always taught her to get a job, save for a house and play it safe. However, she chose to invest the savings she accumulated through her previous years of employment into her initial start-up business rather than investing in a home.

“The strategy I prefer (and chose at the time) is to invest to increase my income rather than invest the capital in a down payment for a home, which would then be solely tied up in the property,” she added.

“With money tied up in a property, I wouldn’t have the freedom to deploy capital for investment opportunities with much better returns. Many of the best investment opportunities require you to be liquid and ready to move on them immediately. Investing to increase income has always been my strategy moving forward rather than investing in a home, which would leave me no better off, from a cash flow perspective, as I would still have monthly payments on a mortgage for many years.”

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Also, as kids, Tara was never really taught about investing or taking risks. “It was always a safe, steady path. I had never really learned that taking a risk and investing in something that could be risky was an option. I had no financial background really when I started my business and this was something that I had to learn as I started the business and it began to grow,” she said.

When it comes to adopting a savings strategy as a business owner, for Tara it is basically building from what she wants to achieve financially and working backwards.
Image Credit: Shutterstock

Strategy #1: Keep monthly living expenses to about 60 per cent of salary income

From Tara’s salary income, she has managed to keep her average monthly living expenses at about 60 per cent of her salary. “All my living expenses are tracked through accounting software linked to my bank accounts so that I can keep track of those particular expenses and my spending habits, meanwhile still budgeting in all the fun, leisure and retail shopping I enjoy,” she noted.

“While I do not necessarily stick to a personal emergency fund plan, I find that making sure that I’ve saved somewhere between three to six months of what I need to live on is the ideal amount for me. This way, I feel somewhat more secure and in control.

“Even though I run my own business and am not employed with the risk of losing a job, it is important to be able to sustain myself and my family should an emergency arise. The remaining of the savings that we accumulate will then be invested in either our businesses or property.”

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Even though I run my own business and am not employed with the risk of losing a job, it is important to be able to sustain myself and my family should an emergency arise

- Tara Rose Kidd

Strategy #2: Re-invest as much as you can of your profits back into the business

It’s all about reinvesting for Tara, particularly when it comes to adopting a savings strategy as an entrepreneur. “Whenever you have additional cash or revenue, the rule I follow is simply: reinvesting. I also look for ways to create different streams of income. Initially, this was investing in my husband’s business, a Dubai-based car dealership,” she added.

“In the beginning the investment from my end, after paying out expenses like a salary for myself or whatever other expenses were to be allocated, I’d invest around 60 per cent from the net profit into new stock for my husband’s dealership.”

After that, Tara and her husband also began a property company in the UK, which is still open and continuing to invest in joint-venture commercial to residential conversions.

“For retirement, again, it is all about creating different streams of income. I think it’s simply just not to limit yourself by relying on only one income stream and not to limit reinvesting by trying to save too much,” she advised.

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In looking to grow her business, Tara added a commission structure as an incentive for her employees.
Image Credit: Shutterstock

Strategy #3: Build from what you want to achieve financially and work backwards

When it comes to adopting a savings strategy as a business owner, for Tara it is basically building from what she wants to achieve financially and working backwards.

“Starting with the net profit that’s our goal, we determine how we need to work to make this possible. Whatever that may look like – be it re-investment into the business or deploying capital for expanding into new areas of our business,” she explained.

“I’ve begun to now look at different ways to grow the salon umbrella whether it's through partnerships with different people in the industry or businesses. The bigger picture is about creating multiple ways that all will build real wealth.”

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