Keeping it simple

How to Open a Hair Salon: A Guide to Get You Started

If you’re considering launching a new business, specifically in the realm of opening a hair salon, you’re in good company. The beauty industry boasts an impressive annual worth of over $56 billion, with hair care being its largest segment, encompassing a staggering 86,000 locations across the nation. Fortunately, the demand for hair services remains consistent, even during economic downturns, creating a reliable market for aspiring salon owners.

While the world of salons may exude glamour to clients, it’s important to recognize that running a salon is akin to managing any other small business. Success requires dedication, long hours, strategic planning, thorough research, and occasionally, a stroke of luck. To mitigate the variables that could lead to failure, it’s crucial to gain a comprehensive understanding of the economics involved in launching a salon, encompassing everything from initial startup costs to pricing standards.

A common starting point for individuals pursuing salon ownership is having prior experience as a hairdresser or working within the salon industry. Often, this experience is intertwined with a genuine passion for the business. Below, we’ll delve into valuable insights from professionals in the field.

An Ultimate Guide On How to Open a Hairdressing Salon

Are you planning to open your hair salon?

If yes, go ahead. It’s a great job.

The salon industry is booming day by day and becoming popular among youth because of various career opportunities.

But keep in mind, that opening a new business is not a piece of cake. Instead, it requires proper planning and strategies and, of course, money at the initial level.

A Salon is where cosmetic services are provided to both men and women. It includes hair treatment, skincare, manicure, pedicure, massage, artificial tanning, makeup, etc. 

So before opening a new salon, make a proper plan, such as how much money you need, how many workers should be there, what should be the location, etc.

To completely understand the meaning of a salon and how to open a hairdressing salon, let’s have a look at the services it offers and tips to keep in mind before starting your own salon in detail. But before that take an idea of how much a hairdressing salon costs to open.

How much does it cost to open a hairdressing salon?

If you want to open a hair salon in the USA, you may need a considerable amount of money. We mention this amount based on the average cost incurred on a salon set up in the USA. For example, you may need $62,000 to open a basic hair salon in the USA with all the necessary equipment and setup. The cost can go up to $5,00,000 for a luxurious hair salon. 

You can even start a hair salon from your home with minimum money.

How to Open a Hairdressing Salon?

Well, opening a new hairdressing salon brings various challenges in starting. A person who is looking for how to open a hairdressing salon needs to work on many factors. Like other businesses, it also demands money, place, hard work, planning, staff, etc.

The salon industry is valued at $532 Billion per year, which is quite a good income idea.

Many people all around the world want to enter the salon business. However, due to a lack of proper knowledge and ideas, they can’t complete their dream.

 But today, we will guide you on how to open a hairdressing salon, its cost, and what plans and strategies you should make before opening a hair salon business.

9 Steps Guide on How to Open a Hair Salon!

While certain steps involved in opening a salon align with the procedures for launching any small business, there are also unique and salon-specific measures that must be addressed.

1. Make a Business Plan

Make a Business Plan

Planning is the essential step before you start any business. So, to start a salon, you should do planning properly and create a hairdressing salon business plan. 

If you want to open a salon in your area, you should understand how large the market is, how fast it is growing, and what trends it is experiencing. It will make it easier for you to plan precisely how you will compete against other salons.

Your business plan should address the following points:

  • Overview: A concise description of all of the plan’s goals, parts, and budget.
  • Your salon’s description – What services do you plan to offer and what makes you different?
  • Research – Evaluate what you know about your target market and what local competitors have done well or not so well.
  • Marketing – How and where you will effectively market your salon to compete with other salons in the area. How will you market to your target audience? Will you use social media, word-of-mouth, etc.?
  •  A financial plan includes information regarding a budget and projected revenues or expenses.

2. Get all licenses and permissions

Get all licenses and permissions for salon

After making a plan and figuring out your money, complete all the legal processes required to open a salon in your area. You should comply with your area’s laws and regulations because these requirements can vary in different regions. 

Here are essential licenses and permits you should take before opening a salon – 

  • Salon license
  • Cosmetology license(s)
  • Employer Identification Number (EIN)
  • Building permit
  • Sanitation
  • OSHA requirements

3. Insurance your hair salon business

Insurance is a crucial step to be done as early as possible. Because insurance can save you from problems and shortcomings, consider insuring your salon business and taking a good insurance plan. 

Additionally, insurance is required by law for most businesses, and you will always be glad to have it.

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4. Order salon equipment

As you want to open a salon business, you will definitely not want to spend extra money. So before purchasing your salon equipment, contact the different distributors, look out for prices, and compare prices. 

In the case of large equipment like chairs and salon stations, directly contact the wholesale business. You should compare price points, customer service (such as advice or consulting), and perks of different distributors.

5. Choose the right location 

Location is also an essential factor in running your business smoothly. Keep in mind; that the site should be accurate for your business; it should not be inaccessible or in an area where your shop will not get exposure. Choose a location where you can welcome more clients to earn more profit. In addition, decide on a theme for your salon and match it with the equipment to make it more fascinating.

6. Hire staff and train them properly

If you have an idea to open a big salon at a good location, it is likely that more customers you will have to handle.

Now, to satisfy the clients, you need to hire the staff to assist you. Moreover, train the employees according to the latest trends and other customers’ demands.

Your employees need thorough training if you want your business to run smoothly and maintain a professional reputation.

7. Market Your Salon

Market Your Salon

It’s time to get some customers after the setup of your salon business. Inform your existing clients that you have opened a salon and ask your stylists to do the same. Google your business so that clients can reach you. Encourage the client to recommend you to their friends.

In addition to retaining and bringing back old clients, it is crucial to attract new ones. To market effectively, you need to create a website and use social media.

You can also use other advertising mediums like local TV channels, newspaper ads, etc. Use any way possible to let people know that you have opened a salon and attract customers. 

On their first visit, provide customers with a discount or offer; this will attract new customers and help in customer retention.

8. Take feedback from your customers

It is nearly impossible for any business to work perfectly and offer the best services to its clients. But it is possible to improve and give the best service in future. 

For this, ask your customers about your services, take feedback, and try to resolve it if they find any problems. 

It would be best if you also charge a reasonable price for your services. Try charging some low prices or offering discounts at the start of business. 

You can also start coupons in exchange for feedback; ask your customers to give feedback and provide them with discount vouchers. It will also help in customer retention. 

9. Scale up Slowly and maintain the Quality!

Scale up Slowly and maintain the Quality!

Now it’s time to provide quality services to your customers at reasonable prices. In the long run, your business will grow big. You can achieve the big targets you set for your business only if you keep providing quality services.

Even if you have started at a low place, you have good customer retention, and your clients are satisfied, then you will achieve big in the long run. Patience is also the key to long-term growth. 

Don’t forget to do planning before trying or adding something new to the salon. 

So these 9-step guides will help you in starting a hair salon. Remember, planning is the most important thing to do beforehand. Plan properly and then execute precisely. 

The Bottom Line

Opening and operating a salon is not easy; you have to go through a lot before opening a salon. After opening, you have to look for an increasing customer base, and many other difficulties come. 

But if you go through all and survive in the salon business. It definitely pays off. You get a huge customer base, and also customer retention is very high in the salon business. 

So even if you start your salon from home, keep making your customer base larger.

 It will help when you have your own salon. 

We wish you the best for your salon!

Thank you for reading!


What are the essential licenses and permits I need to open a hair salon?

This addresses the legal requirements and paperwork necessary to ensure your salon operates compliantly with local, state, and federal regulations.

How much does it cost to start a hair salon, and what are the typical expenses?

This question delves into the financial aspects of salon ownership, detailing the startup costs, ongoing expenses, and potential sources of funding.

What are the key factors to consider when choosing a salon location?

Location plays a pivotal role in a salon’s success. This explores factors such as demographics, foot traffic, competition, and accessibility when selecting the ideal salon location.

What equipment and supplies do I need to furnish a fully functional hair salon?

Prospective salon owners often seek guidance on the essential equipment, furniture, and beauty products necessary to set up a well-equipped salon.

How can I build a loyal client base and market my new hair salon effectively?

This query focuses on marketing strategies and customer retention techniques, offering insights on attracting and retaining clients in a competitive industry.

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