How to Start a Beauty Salon

Co-authored by Shun Pittman

Last Updated: December 3, 2022 References Approved

Dreaming of opening your own beauty salon? Owning your own salon can be a steady source of income and the perfect opportunity to have more independence and be your own boss. To help you turn your salon dream into a reality, we've put together a comprehensive guide to starting your own beauty salon that includes everything you need to know to get started.

Part 1

Part 1 of 2:

Setting Up Shop

1
Choose the right location. Location is critical to the success of your business. Consider these factors:^{[1]
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- Get into a high-traffic area. Busy streets, malls or spaces next to locations people visit often (such as grocery stores) are ideal.
- Try to have easy access. If parking is a hassle and traffic is thick on the way to your salon, people might not consider it worth the effort.
- Stay away from the competition. Don't situate yourself directly next to another salon — you'll cancel each other out. Instead, try to stake out a place where you'll be the only salon for a few blocks.
2
Take care of any licensing.^{[2]
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Trustworthy Source
U.S. Small Business Administration
U.S. government agency focused on supporting small businesses
Go to source} Unfortunately, running a business means having to deal with red tape and paperwork.^{[3]
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Research source} Here's what you need to take care of:
- Get a business license. All businesses in the U.S. must be licensed. Check out the Small Business Administration website for more help.^{[4]
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  Expert Source
  
  Shun Pittman
  Master Cosmetologist, Global Salon Educator & Author
  Expert Interview. 16 June 2021.}
- In the United States, all personal appearance workers must be licensed. That includes cutting or coloring hair, painting nails, hair removal, and makeup application. Rules vary by state, so contact your local Division of Occupational and Professional Licensing.
- Make sure your salon can pass a health inspection.^{[5]
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  Research source} To avoid fines or (even worse) being shut down by the health department, make sure your salon is sanitary and following the guidelines laid out by your state. For an example of what to expect, check out New York state's salon requirements.
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3
Hire qualified and trained personnel. The cosmetic procedures performed by untrained personnel may cause health problems to the clients. It is important that you hire only qualified and well-trained salon professionals.
- Remember, it is your responsibility as the salon owner to ensure that your personnel are adequately trained and understand each procedure offered.
- Experience may give a salon professional the expertise to render treatment, but, without proper training, she would be unaware of the merits and demerits of procedures.
- Have a short but clear salon procedures manual in place as soon as you can, and give each employee a contract when they start. These documents are usually easy to find on the internet and you can then customize them to your business. It will save you a lot of headaches in the long run if you are set up properly at the beginning.
4
Figure out how much money you need. Starting a business can cost a lot of money, and most entrepreneurs don't turn a profit for 3-5 years.^{[6]
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Expert Source

Shun Pittman
Master Cosmetologist, Global Salon Educator & Author
Expert Interview. 16 June 2021.} Here's what to consider:^{[7]
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- Can you still support yourself while your business gets up and running? Calculate how much money you need for monthly expenses, how much of a cushion you have in savings, and how much you absolutely must make each month to stay afloat.
- Come up with an operating budget. Calculate how much money you'll need to run your business every month.^{[8]
  X
  Research source} Include rent, licensing, training, payroll, supplies and an emergency fund.^{[9]
  X
  Expert Source
  
  Shun Pittman
  Master Cosmetologist, Global Salon Educator & Author
  Expert Interview. 16 June 2021.}
- Figure out how much you'll charge for services. Once you have an operating budget, you'll know how much money you need to break even each month. To make a profit, though, you'll need to do more than break even. Estimate how many services (such as hair cuts, colors, manicures, etc.) you might perform in a week and figure out how much they need to cost in order for you to make money.
  - Keep in mind that though you need to charge enough to be profitable, you can't charge too much — or you'll drive away customers. Try to set a price point that is both fair for your clients and prosperous for you.
  - Get an idea of what other salons charge. Browse comparable salons in your area, and take note of what they charge. Your prices should probably be in a similar range.
- Do you need a small business loan? Make an appointment with a loan officer at your local bank or Small Business Association (SBA), and ask him or her to talk you through the process of getting a small business loan.^{[10]
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  Research source} Before you go, write up a quick summary of how you expect your salon to be profitable — whether it's because you offer a unique service or because there aren't enough salons in your area.
- Figure out how you'll pay taxes. Paying taxes as a small business is different than doing so as an individual, so be sure to figure out what you need in advance. To save yourself time and trouble, consider enlisting the help of a CPA while you set up your business.

Part 2

Part 2 of 2:

Welcoming Clients

1
Create a clean and safe atmosphere. Salons thrive on an environment that is clean, safe and relaxing, where customers can receive prompt and professional service.
- Cleanliness is a particularly important element that can draw clients in again and again. Be sure your towels, foot baths, and other equipments are washed, clean and odor-free.
- Keep your tools sharp and current. Your clients must be able to trust that the products and tools that you use on them are of top-notch quality and safe. You cannot afford to put your clients at risk from infections, as it could damage your reputation.
- Make the atmosphere relaxing. Play soft music, use gentle lighting and keep loud chatter between your employees at a minimum.
2
Offer a wide range of services (optional). This could give you a distinct advantage over those who offer only one or two types of services. Many clients prefer to have their hair, nails and face done in one place, instead of going to three different places.^{[11]
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Expert Source

Shun Pittman
Master Cosmetologist, Global Salon Educator & Author
Expert Interview. 16 June 2021.}
- While you can specialize in one main area (e.g. hair), giving your clients the convenience of a one-stop salon can set your business apart from your competitors.
3
Keep your clients satisfied. It is important that your business create and maintain the desirable reputation as a quality hair and salon operation, so that your clients keep returning for maintenance.^{[12]
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Research source} Try to give them the best possible experience each time, and go out of your way to make them feel valued.^{[13]
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- A salon’s best marketing tool is word-of-mouth. If a client is happy with the results, he or she will come back to your salon; after all, it's a question of trust. Satisfied clients can then help advertise your business to their friends, family, and colleagues. Word can easily spread about the great look and outstanding personal service that your salon provides.^{[14]
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- Collect contact information from your clients e.g. an email address or cell phone number, and if you have a computerized system you than then easily text or mail them with updates on new products/services, and any special offers you have.

Expert Q&A

Question

How can I make my salon successful?

Shun Pittman
Master Cosmetologist, Global Salon Educator & Author
Shun Pittman is a Master Cosmetologist, Author, Owner, and Founder of Corps d’Elite Salon and Corps d’Elite Beauty. With over 25 years of international experience, she is dedicated to and specializes in providing luxury salon services to all hair types and textures and every skin tone and shade. Her services include hair conditioning treatments, cutting, coloring, styling, extensions, and makeup application. Shun has experience working with, coaching, training, and mentoring beauty professionals from multiple companies including L'Oréal, Wella, Matrix, Paul Mitchell, Redken, Big Sexy Hair, and Toni & Guy. She is also a host for national and local media outlets and her work has been featured in The Washingtonian, The Cheddar Network, and WJLA Good Morning Washington's Beauty and Fashion Police segments. Shun is the author of “50 Things Your Hairdresser Wants YOU to Know (and a few things we don’t...)".

Shun Pittman

Master Cosmetologist, Global Salon Educator & Author

Expert Answer

You'll need a great location and team of well-trained salon professionals that are open to learning and growing more. In terms of staff, you'll also want a receptionist and a neat, organized cleaning crew.
Question

How much does it cost to open a beauty salon?

Shun Pittman
Master Cosmetologist, Global Salon Educator & Author
Shun Pittman is a Master Cosmetologist, Author, Owner, and Founder of Corps d’Elite Salon and Corps d’Elite Beauty. With over 25 years of international experience, she is dedicated to and specializes in providing luxury salon services to all hair types and textures and every skin tone and shade. Her services include hair conditioning treatments, cutting, coloring, styling, extensions, and makeup application. Shun has experience working with, coaching, training, and mentoring beauty professionals from multiple companies including L'Oréal, Wella, Matrix, Paul Mitchell, Redken, Big Sexy Hair, and Toni & Guy. She is also a host for national and local media outlets and her work has been featured in The Washingtonian, The Cheddar Network, and WJLA Good Morning Washington's Beauty and Fashion Police segments. Shun is the author of “50 Things Your Hairdresser Wants YOU to Know (and a few things we don’t...)".

Shun Pittman

Master Cosmetologist, Global Salon Educator & Author

Expert Answer

You'll need to factor in equipment, inventory, and the salon itself. You'll also need to think about business licensing, insurance, and other costs, like rent, utilities, salaries for your employees, and marketing costs.
Question

What kind of equipment is required to start a beauty and hair salon?

Community Answer

Salon chair, shampoo, conditioner, combs, brushes, barbacide, gloves, rollers (basic rollers for wet set, Flexi rods, perm rods, soft rollers), dryers, different stylers (depends if the client is natural or relaxed), shower caps, wet capes, styling capes, scissors, broom, dust pan, shampoo bowl, needles, thread, wig cap, mannequin head, hair clips, blow dryers, deep conditioners, rubber bands, hair ties, beads, and more.

Warnings

Have a procedures manual, a good salary system, contracts for staff and make sure you are compliant with your current employment legislation. If you have your paperwork in order then should any dispute arise it will be a lot easier for your to deal with it.

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You need to be aware of the liabilities that you and your business can be subjected to as a result of accidents and botched procedures (from rashes resulting from improper waxing procedure to damaged hair).^{[15]
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Research source} Check with your insurance company on policies that can protect you and your business from liability and lawsuits that may arise from customer complaints.

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