How to Start a Hair Salon Business 2023

Starting a hair salon business is exciting. If you’re a professional hair stylist, you could be ready to get out on your own. Here’s what you need to know to start a hair salon business.

Startup Expenses for Opening a Hair Salon

Lease Property for Your Salon

Finding a location for your salon can be exciting. But unfortunately, a location can determine the success of your business, so choosing the right one can be a little stressful, too.

You want your hair salon to be located in a visible location with plenty of foot traffic. It also needs to be big enough for your business operations.

Protect Your Investment

It’s never too early to start protecting your investment in a new salon. But unfortunately, as soon as you start your business, you are putting yourself and your salon business at risk.

General Liability

At a minimum, you need a general liability policy. It protects you and your business from damages to people and property while you are doing business.

Worker’s Compensation

Worker’s Compensation

A worker’s compensation policy protects you and your employees when injuries happen by covering lost wages and medical bills.

Worker’s compensation insurance is the most expensive policy to carry, and it is often required if you have employees. However, your business must also protect you, as the owner, because if you are injured and can’t work, your business will suffer, especially if you work alone.

What your workers’ compensation insurance cost will be depends on the type of work you do. It’s easy to get a quote online or purchase a policy and start protecting your business immediately.

Bundle Other Policies

Bundle Other Policies

You can save money by bundling your policies. Talk to an insurance agent about what type of insurance policies you need for a hair salon in your state.


Utilities are a fixed cost, even though they can fluctuate every month. Once you find out where your salon will be located, you can look into how much utilities will be.

Be sure to factor in the utility costs of running a hair salon, which will be higher than a retail store.

Equipment Startup Costs

Your startup costs should include the prices of the equipment that you need to set up your salon.


If you have people working for you, you will need sufficient funds to pay them regularly. Labor is a fixed cost and is usually the most significant part of a business’s budget.

Variable Expenses

Styling products, shampoos, and marketing expenses vary and can be challenging to plan, but these expenses are essential to running your hair salon.

Create a Unique Salon Concept

Create a Unique Salon Concept

A unique concept for your hair salon can attract new customers and keep them coming back. The best hair salon design concepts will make you stand out from the competition.

Name Your Salon

Your salon’s name can communicate much about your business, including your concept. So be sure to name your salon something catchy and easy to spell, and remember that this name will be with you every day for a long time.

Choose a Theme

Choose a Theme

Use your concept design or theme for more than just your salon’s decor. Use it for your channel letter signs, logo, business cards, and website.

Business Operations

Defining your business operations is an essential part of your design concept. Your hours of operation, the offers that you present to your customers, and how you perform daily activities are all defined under business operations.

Write a Business Plan

Every business should have a business plan. It’s a road map for your company’s future, and it can be used and reviewed as your business grows to keep you on track.

A business plan will help you iron out business details before you get started. In addition, business plans help you get funding because other people will see that you have a clear idea of what you are doing.

Market Research

Market research to start a hair salon will help you determine who your customers are and what your competition is charging.

Defining your target market will make your advertisements more effective and can be essential in determining your final design concept.

Set Up Your Salon

Set Up Your Salon

When you investigated startup costs, you probably discovered how expensive salon equipment could be.

You can’t operate without equipment, though. So if you really want to stand out from the competition, your equipment needs to be professional-looking and operational.

Salon Equipment and Tools

Salon Equipment and Tools

The minimum equipment needed for a hair salon include the:

  • Barber chair
  • Hair wash station
  • Hand-held hair dryers
  • Hard hat dryer
  • Curling and straightening irons
  • Styling combs and brushes

Salon Supplies

You will need salon supplies that you have to restock regularly.

  • Shampoos
  • Conditioners
  • Hair dyes
  • Towels and aprons

Reception Area

Reception Area

Your reception area is a place to welcome customers and give them a place to pay for your services. Be sure to use your design theme in this important area.

Your reception area should include the following:

  • Business signs, open and closed signs, hours sign
  • Desk with a point-of-sale system and cash register
  • Appointment and scheduling software or kiosk
  • The waiting area with seating and tables for magazines
  • Display for retail products
  • Telephone
  • Task lighting

Hire Staff

Before you’re ready to open, you must hire staff for your hair salon. For example, you may need a receptionist and several hair stylists.

Your business is only as good as the people who run it, so make sure you hire and train the right people.

Leave a Comment