So, you’re ready to turn your dream of starting your own business into reality. But how do you open a beauty salon that thrives and stands out from the competition?
Launching a salon shares many similarities with starting any other business. You’ll need to conduct market research, handle paperwork, secure permits, hire staff, and make key strategic decisions before you ever open your doors to customers.
Below, we’ll break down the essential steps to getting started: from a step-by-step checklist to answers to common questions.
How to open a beauty salon from scratch
To get ready for your grand opening, it’s important to follow these steps in order.
Define your concept
Your concept is the foundation of your business. There are many ideas for starting a beauty salon, whether it’s a hair salon, nail studio, barbershop, or a full-service beauty space.
The concept you choose will define everything else: the services you offer, your customer experience, your target audience, price range, branding, interior design, and overall market positioning.
Create a business plan
This is a crucial step. Your business plan should include:
- An executive summary of your project.
- A company description.
- Market and competitor analysis.
- A list of services offered.
- A marketing strategy.
- A staffing plan.
- Financial projections.
Register your business
To legally operate, you’ll need to register with the appropriate U.S. tax authorities as a sole proprietor (similar to an individual entrepreneur) or a limited liability company (LLC). After registration, you’ll receive an EIN (Employer Identification Number). You should also consider registering a trademark for your brand.
Find the right location
Location directly impacts profitability. Look for spaces that offer:
- High foot traffic.
- Visibility from the street.
- Easy access and parking.
- Compliance with health and safety regulations.
- Alignment with your concept and target audience.
Purchase equipment
Scissors, styling tools, and cosmetics will likely be one of your biggest expenses, so choose wisely. Create a list of must-have items and another list for less urgent equipment you can buy later, depending on your budget.
Define your service menu
Your services are the backbone of your revenue and should align with your brand. Write clear and appealing descriptions that make it easy for customers to understand what you offer and encourage them to book an appointment.
Hire your team
Determine how many stylists, technicians, and administrative staff you’ll need, then start recruiting. It’s also important to set up a payment and incentive system for your employees.
Develop a marketing strategy
Plan your marketing approach before opening. How will you attract your first customers and make a strong impression? This could include social media campaigns, outdoor advertising, partnerships, special promotions, or a soft launch event.
How much does it cost to open a beauty salon?
On average, opening a salon can cost anywhere from $50,000 to $400,000. The final amount depends on factors like:
- The size and location of your space.
- Licensing and permit fees.
- Your business structure (whether you rent workstations or hire employees).
- Equipment costs and operational expenses.
- Your marketing budget.
To make your business profitable as quickly as possible, it’s important to understand how to successfully manage a beauty salon. A detailed financial plan is essential.
Expenses
Start by identifying your fixed monthly expenses that don’t change with the number of clients:
- Rent.
- Utilities.
- Insurance.
- Equipment maintenance and depreciation.
Variable expenses, on the other hand, depend on sales volume and can be adjusted as needed:
- Employee wages.
- Supplies and cosmetics.
- Logistics and shipping costs.
- Advertising and promotional activities.
Once you’ve calculated your monthly costs, create an income forecast for at least the first year. This will help you identify your break-even point — when your revenue covers your expenses — and allow you to plan your budget wisely.
What equipment do you need?
Equipment will be one of your largest upfront investments, so avoid impulsive purchases. The basic setup for most salons includes:
- Workstations (chairs, mirrors, storage units).
- Shampoo areas (chairs, basins, storage cabinets).
- Hood dryers or heat lamps for hair treatments.
The amount of equipment you need depends on your space and staffing. Generally, each stylist gets their own workstation, although shared workstations are possible with shift scheduling.
You’ll also need a waiting area, a reception desk, and, most importantly, a modern POS and scheduling system to manage appointments, track payments, and optimize operations.
