How much does it cost to open a salon?

The initial, one-time costs to open your salon will vary depending on the type of salon you want to launch and how you plan to go about it. Do you want to rent or own the physical location ? How big is your operation going to be ?

These are the kinds of questions you'll need to answer as you proceed. You can use these parameters to gauge the estimated costs of your particular startup and answer questions like : "how much does it cost to open a hair salon in the city center ?" or "how much does it cost to start a nail business at home ?"

• Certification – you should have this covered before all else. All working stylists must hold a state cosmetology license (or be enrolled in an accredited beautician program). These licenses must be issued in the same state as your salon location and posted on the premises. The costs of obtaining certification will vary between specialties.
• Licenses and permits – there are a few bases to cover before opening your salon. First off, you'll need a business license, the cost of which varies according to state and city of operation. You'll need to look into the required health and safety compliance permits for your location as well. Again, costs vary across the board. Another aspect to consider is a seller's permit. Do you plan on having a retail section in your salon ? This can be a great platform to sell cosmetic products related to your service offerings, so a resale permit may be worth obtaining. As you plan, do your research and keep in mind that proper licenses and permits are an absolute must.
• Physical location – now that you've got the back end covered, it's time to consider physical space. If you're looking to lease, you'll most likely be responsible for a security deposit and a couple months of rent up front. Costs will vary depending on location and size, but it's always a good idea to do comparative research within your desired neighborhood. If you plan on purchasing a space, the costs will rise significantly. Expect to set aside $40,000 to $250,000 to purchase an existing salon (dependent on location, size, and condition of the property and equipment). Bump that up to $100,000 to $500,000 on average to build a salon from the ground up.
• Salon equipment – equipment costs will vary depending on type of salon. A full hair salon expense list is estimated to total about $27,000. That includes everything you'll need—hood dryers, shampoo and coloring stations, scissors, clippers, etc. A simple barbershop or nail salon will require less equipment. Starting out, you might want to pick and choose equipment to fit your budget. For any type of salon, you'll need styling stations with chairs, which can range from $200 to upwards of $1,000. Carts and trolleys are necessary to organize individual stylists' tools in the case of shared stations. For these, you can go cheap for about $40 or go high quality for about $300.
• Initial supplies – both hair and nail salons use specialty products for client services. Costs will vary by brand but make sure you consider sanitizers, perm rods, hair capes, towels, shampoos, conditioners, specialty polishes and the like. Supplies add up quickly—stocking everything you need can cost up to $20,000 to start.
• Initial inventory – if you plan to have a retail portion to your salon, you'll need to stock an initial inventory of beauty products in addition to shop supplies. This cost is dependent on the size of the retail display portion of your salon and should be adjusted as you move forward in your venture, driven by customer demand.
• Legal and consulting fees – you may need professional help negotiating your lease, closing the property sale, or just muddling through the necessary licenses and permits for your salon. Expect to pay around $200 per hour for these services.
• Building improvements and remodeling – if you're taking over an existing salon, there may be little to no renovations necessary. However, if you're starting with a blank slate, you'll have to consider permanent and nonpermanent fixtures as well as any design elements necessary to your business model. Factor in furniture and interior decorating and you're looking at an average of $32,000.
• Computer and POS system – you'll need to get set up with an Internet network and a point-of-sale system to accept modern forms of payment, including credit and debit cards, Venmo and Apple Pay, among other options. You'll also need to be able to print receipts. Depending on which provider and level of hardware you choose, you'll need to spend $550 to $2,300 annually and typically twice that amount to get started.
• Signage – here's an opportunity to get creative. We've seen proper signage secured off for as low as $23, though you could easily spend much more.
• Employee uniforms – this is another cost that is entirely up to you. You generally want some uniformity across staff wardrobe, but a dress code is a cheap alternative to costly professional uniforms.
• Responsive website – every modern business needs a web presence. Expect to pay $300 to $700 for the initial build.
• Operating cash – you can't forget to have cash on hand ! It's important to have at least $500 at the starting date in cash reserves for normal business operations.

How much it will cost to open a beauty, hair or nail salon is one of the first and most fundamental questions you need to answer. But there's a lot more to think about when starting a salon or barbershop. Aside from the specific expenses and hurdles of your chosen salon type, there are some general considerations every new business owner should have on their radar.

1. Don't fear technology. Modern businesses need to take full advantage of today's computer resources. That means collecting every bit of customer data you can. Does your customer only come in for nail services, or do they take advantage of the spa, nail and hair services you offer ? Make note of that ! Every transaction should be entered into your digital filing system with details. That data can be used strategically in developing best business practices and for targeted advertising down the line.
2. Don't pass on quality products. You cannot forgo quality in a professional salon. The products you use will reflect on your quality of service. Some salon owners try to save money by using inexpensive alternatives, but end up paying in the long run. Clients come to you for an experience they don't get at home. It's simple—better products make for a better experience.
3. Don't skimp on cleanliness. We talked about this earlier, but we can't stress it enough—the salon environment should be the epitome of clean. You want your salon to serve as a getaway, a little slice of paradise for your customers. Keep a fresh, neat shop and the clientele will keep coming back.
4. Don't forget continuing education. Even the most advanced skills can be sharpened. Every stylist working at your salon should go through the same training. You want a skilled staff that is up-to-speed on the latest trends to best serve the brand and style of your salon. Making sure all staff are properly trained on new techniques and styles—keeping their skill set fresh and sharp—keeps clients excited. Moreover, continued education keeps you competitive with other salons, and clients know they will always receive quality service when they walk through the door.
5. Don't try to please everyone. The truth is you're not going to attract everyone. So transform that into a positive. Maintain a pointed aesthetic and perfect it. Devote your efforts to making your salon an authority. Become the expert to best satisfy your target demographic and your ideal client base will find you.

Running a salon is hard work. Don't get bogged down tracking expenses—consider upgrading to online accounting software with Sage 50 Accounting to save time and money.