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How Much Does It Cost to Open a Salon?

light themed salon

If you’re planning on opening a salon, you’re probably wondering how much the process will cost you altogether. From securing licenses to finding a space to open up shop and then building a website and hiring talent, there are many things to consider when determining the total cost of opening a salon. 

Every salon is different, which is why you may find that some salons can cost more than half a million dollars to start up while other salons can be created with a few thousand dollars. The total cost of opening a salon is entirely up to the owner and the kind of space and equipment they want. Make sure to leverage our opening a salon guide for more information on every step you should take.  

While we may not be able to tell you exactly how much your specific salon journey will cost you, we can provide insight on each of the expenses you can expect to incur. Here are some finances you should expect to have when it comes to opening a salon.

Financing and Loans 

Most salon owners will apply for loans or financing for many of the startup costs associated with opening a salon, which comes with interest that will be a cost later on down the road. For example, financing beauty supply equipment may be a smart decision if you want to invest in high-quality equipment. (More on this later!)

Securing Licenses and Certifications 

Every salon needs to have its own set of licenses and certifications. Depending on where your salon will be located, the needs may be different. However, you can expect to spend money on acquiring the appropriate legal certifications so that your salon can operate. 

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Setting Up Your Business as a Legal Entity 

Turning your business into an LLC or corporation is an important next step. Hiring a company to register your business can cost anywhere from $50 to $1,000. 

Space Rental or Purchase 

When you’re opening a salon, you will have to either find a space to rent or purchase a storefront. This can be a one-time expense if you buy with other tiny recurring charges like property taxes, repairs and renovations. However, if you are renting a space, you can expect to pay smaller amounts over time. 

shampoo station

Investing in Equipment 

Filling your salon with high-quality salon stations is crucial to opening and operating a successful salon business. Leveraging salon equipment financing can be a great way to get the equipment you need right away without having to put down all of the money.

If you’re wondering how to save costs in this aspect of opening a salon, we highly recommend making a list of “needs” versus “wants.” Investing in styling chairs is a need while spending money on salon decor could wait until your business starts bringing in revenue.  Check our our smart spending guide for even more tips on where to spend vs save when equipping a salon or spa, and use our salon chair buying guide to choose the best styling chairs for your budget.

Salon Supplies and Products 

Aside from filling your salon with equipment, you will also need to purchase salon supplies and products. From clippers to professional hair coloring, you want to make sure your salon is stocked with everything your people need to perform. 

Hiring Talent 

As you prepare to open your doors to the public, you will need to fill your salon with talented stylists, estheticians and receptionists. To hire the right people, you will need to factor in salaries, compensation and other investments like purchasing a salon reception desk to support your receptionists and people. 

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Digital Marketing Investments 

Not only will you need to invest in the physical presence of your salon, but you will also need to be strategic about your company’s digital presence. Investing in a good website design and hiring someone to handle all of your social media platforms will pay off in the form of new clients and client retention

styling stations

Grand Opening Party 

Having a grand opening celebration and party isn’t mandatory for every new salon, but it is a great way to bring in new clients, celebrate with your team and kick off your business on a high note. With that being said, it can also be costly. 

Client Acquisition and Relationship Management Costs

Whether you are deploying scheduling and booking software throughout your salon or running Facebook ads to get clients through your door, you can expect to make an investment in client acquisition and retention. 

Every salon will have its own unique obstacles and finances, as will yours. However, we hope that this article was insightful and has helped you to prepare for this journey you’re about to embark on as an entrepreneur and salon owner! 

Keep reading: Questions to Ask Before Buying an Existing Salon

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