How to Start a Salon Business

Do you know that the salon industry is one of the fastest-growing industries? For a lot of people, this may be a surprising fact. The studies say that the salon industry will soon be worth $196 billion. It takes up a huge part of the economy. Having a business like a salon is a huge benefit as it provides you with huge profits.

If you have recently visited a salon, I’m sure you would’ve noticed that they have increased their charges. You already wanted to be a salon owner and now after the prices have increased, the thoughts are turning into actions, which is why you are here. Before you start a salon business, you must know some important things about the salon business.

8 Steps To Start A Salon

Let’s get started with the eight golden steps to take before starting a salon:

1. Explain the concept of your salon

Sit down and find out a unique concept for your salon which will create its base. The concepts include everything starting from the services that you will offer to how you will serve your customers. The name of the salon must complement your concept, the interior of your salon, and the prices.

2. Design a business plan

the business plan of your salon will establish a foundation for your business. A business plan includes the description of your company, an analysis of industry and geography, the market you must target and its analysis, samples of your services, a marketing, and financial plan, and lastly, the strategy of your management.

3. Business Registration

Registration of your business is very important as it provides a sense of security to the clients and gets more chances of growing. Once you register it, you will get your identification number through which you will pay your taxes.

4. Choose a proper location


The location of your salon will determine its reputation. You must select a place where yoursalon is visible to people, has foot traffic, less competition, and cost. Also, keep in check if it will complement the interior shape and size of your business. This will help increase your sale rate and get more revenue.

Factors that you must remember while choosing a location:

  • Is there a parking area close to it?
  • Is it aesthetic?
  • How much foot traffic is there?
  • How much will it cost to start a salon business
  • Is there noise pollution?

High-traffic areas are best to start a nail salon businessas the community is more involved there. The more traffic, the more customers. You’ll be in the eyes of the public and will seem approachable.

5. Buy equipmentforthe salon

To start a salon business,you must buy the equipment for it. The prices of equipment are high so you will have to follow a strategy and get good quality equipment at a reasonable price. List down the things that you need and what you want. Needs are more important than wants as they are required for survival. Save your money by buying equipments on a low budget. Once you start earning, keep upgrading it.

6. Hire talented staff

Write down how much stuff you need to start a hair and beauty salon business. List down the number of staff you need for each category. Start the hiring and decide if you’ll give the pay yourself or use software for that. You must consider some things while hiring the staff:

Skills: the person must be good at work and must have the ability to learn.

Personality: personality plays an important role as it explains a lot about your business and its environment. The personality of your staff must complement your salon.

Attitude: they must have a professional attitude while working. This includes their ability to teamwork and provides services to customers.

Now you must know how to hire someone to start a nail salon business. You must follow the right process.

1. Check if they are eligible to work in the US

2. Check their background

3. Make sure they get insurance

Now once you are done with hiring them, you have some other work to do. You should make sure that your staff is permanent. How can you do that? What if they leave you in the middle of nowhere? You must provide them with beneficial reasons to stay. Below are some tips you can use:

  • Build a friendly and strong bond with the staff, work like a team, don’t boss around, and build a relationship apart from the workplace.
  • Be lenient and give them margin to advance their techniques and use different ways
  • Promote their name outside your salon which provides them confidence and respect
  • Give them the benefit of working flexible hours
  • Make them feel valued by celebrating their birthdays etc

7. Design and outline your services and offer

The best way to represent your concept and your brand are through your services. They are the centerpiece of your brand and an important element to start a hair salon business. It acts as a tool of marketing that will attract and convince customers to visit your salon. The descriptions should be precise and appealing.

8. Design a marketing plan

To start a salon business, one of the most important parts is to design a marketing plan. The plan will help you gain customers, provides awareness, and brings a permanent following. The marketing plan must include everything starting from social media to planning an opening ceremony with favors for the ones attending.

Calculate The Costs to Start A Salon Business


When you are starting a business, you must keep the finances in mind. When starting a hair and beauty salon business, the costs may be disturbing. All you need is proper planning. First,you must decide on the fixed costs that are sustained monthly. These are the monthly expenses of your salon that will permanently stay the same no matter the volume of sales. Some of them are:

  • Insurance
  • Rent and lease agreement
  • Utilities
  • Equipment

Secondly, variable costs are important as they help you save money and cut costs. These are for the finances that change with the sales volume. These include:

  • Labor costs
  • Products and tools used by hair stylists
  • Shipping and delivery costs to replenish hair product
  • Advertising and marketing

Lastly, design a revenue forecast for the first year of your business. After that recognize our break-even point which will cut the revenue and expenses.

Compensation Models For Hair Salons

For a hair salon, you must have some structures like:

  • Renters of booths
  • Hourlypay for employees
  • Commission and flat rate-basedemployees
  • Bonuses for the workers
  • Fixed salary employees
  • Independent contractors

Choose Salons Software

POS System - Start a salon business

To start a salon business, another important thing is to set up your salon’s software. This software accepts payments and makes money. Two of the are mentioned below.

1. POS System

First,let’s talk about receiving payments. There are different forms of payment, and this software allows you to get any form of payment you or your client wants,for example, apple play. Ask some questions when you are going to assess the payment processor, like:

  • What does the setup processor look like?
  • How much time will it take to transact money to the account of the owner?
  • Is it safe and secure?

2. Scheduling Software

it will act as your receptionist which will create all your scheduling strategies. From this, customers will be able to approach the calendars of stylist’s ad book appointments at any timethey want.

Mistakes to Avoid When Starting a Salon Business Plan


A lot of people make many mistakes when they start a salon business plan. Mostly those people make mistakes andare not clear about what they want to do. Some don’t know how to manage their money. So here are some things you must avoid:

1.     Not having good insurance

2.     Not having authentic equipment

3.     Not having experience in this business

4.     do not know how to treat customers


To start a salon business,one must be experienced and have the skills to manage all the work. It can be started on a small budget but if you’re not experienced and creative, you can not excel in this field. So, take care of your budget and experience. If you are prepared, you should already get started.

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