How Much Does It Cost to Open a Salon? Your Complete Guide to Opening Your Own Salon

Beauty will never go out of style, which means hair salons have a bright future. Like any small business, opening a salon takes commitment, motivation, passion, and business savvy. Thinking about taking cosmetic creativity to the next step but not sure how much does it cost to open a salon? Here’s your complete guide to opening your own salon.

The first step to opening a salon is to write a business plan and a budget. A strong business plan includes customer segments, supplier plans, needed business relationships, revenue streams, cost structure, and market research. Include a checklist within the business plan of all the steps, big and small, to open a salon. T

The checklist should include: choosing a legal structure, registering the business and name, finding a location, acquiring licenses and permits, getting insurance, finding suppliers, purchasing equipment and furnishings, hiring and training staff, and marketing. Having all of these steps outlined in a strong business plan gives the chance to take an in-depth look at funding needs.

When it comes to determining the costs of opening a salon, they can be broken down into two categories: one-time costs and recurring and ongoing costs. The initial one-time startup costs will vary depending on what kind and the scale of the salon. The larger your chosen space, the higher the costs and the more specialty services offered, the more equipment necessary.

The costs of a business license, health and safety permits, and retail sales permits all vary by state and city. Leasing a salon space means paying a security deposit and first and last months’ rent. Leasing costs vary with square footage and neighborhood. Purchasing a space is significantly more expensive and costs depend on size, location, property condition, and renovation needs.

Equipment costs vary based on what type of salon is being opened. A full hair salon requires hood dryers, shampoo and coloring stations, styling stations with chairs, carts, and trolleys. Stylists will need to use sanitizers, hair capes, towels, scissors, clippers, brushes, shampoos, and conditioners, all of which need to be fully stocked upon opening. If the salon will be selling retail, an initial inventory will need to be purchased.

Save on costs by sourcing equipment second-hand. Cosmetic Laser Warehouse is the leading aftermarket supplier of pre-owned cosmetic lasers and aesthetic laser systems. With the largest online inventory of pre-owned Palomar lasers, all products from Cosmetic Laser Warehouse are refurbished to manufacturer standards. Explore their vast inventory and prices at

Additional one-time costs to keep in mind are insurance, signage, and a professionally built website. A computer and Point of Sale system will need to be installed. It typically costs twice the annual hardware price to set up a POS system. Remember that a POS system runs on a stable internet connection which will need to be installed before opening.

Customer loyalty is the backbone of small businesses. They trust that a business prioritizes their needs and keeps their personal information secure. Bright Pattern provides enterprise virtual call center software solutions and can accommodate the need for a GDPR compliant call center. Organizations that collect personal information from residents are called “data controllers” and they often work with organizations that process this data for them. Any organization that works with data controllers must adhere to GDPR.

Recurring costs refer to the daily, monthly, and annual costs of running a successful business. Monthly expenses include mortgage or lease payments, equipment payments, utilities, wages, and credit card processing fees. Set aside funds monthly to cover the costs of routine repairs and maintenance. Insurance and operational permits are typically renewed annually. Payroll taxes will vary based on the business model and are typically paid quarterly.

Unnati Vaidya is a freelancer Content Writer and SEO generalist. She is an enthusiastic reader of Novels and a big fan of watching Sci-fi movies and seasons!

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