How Much Does It Cost to Open a Salon?

So, you want to open a salon, and you're trying to find out how to budget for it. Congrats on this big step! Budgeting to open a salon is no small feat, and the fact that you are researching how to budget for this big step means you are more prepared than ever before. In this guide we will cover how much it costs to open a salon and how to budget successfully. Now, let’s talk about how much you’ll need to make that dream come true.

Startup Costs: Your “Opening Day” Budget

These are the things you must pay for before you even open the doors but are one-time costs to get started. Opening a salon in a blank space would require high renovation costs to prepare for the plumbing and basic layout options. But on the other hand, renting a space that’s previously been built for salons would significantly reduce the expenses.

Total Estimated Startup Costs: $25,000-$100,000+

Monthly Costs: The “Keep It Going” Budget

Once you have your salon open, there are repeating monthly expenses to be aware of so you can keep your lights on and the towels clean. Here are some examples:

• Rent & Utilities - $2,500–$6,000
• Inventory Restock - $500–$2,000
• Payroll (if you have staff) - $5,000–$15,000+
• Booking/Marketing Software - $25–$100
• Insurance - $100–$500
• Cleaning & Laundry - $200–$500
• Wi-Fi, Music, TV, Snacks - $100–$300

Total Monthly Costs: $8,000 - $20,000+

Licensing Permits & Insurance: The Stuff That Keeps You in Business

Okay, okay, this part isn’t as fun as choosing shampoo scents or picking our wall colors, but it’s incredibly important. Without the right licenses and insurance, your dream salon could shut down fast. Budget $200-$2,000 for licensing and permits, depending on your local requirements.

The “Yes, You’re Allowed to Do That” Paperwork

You need a few official papers that basically say, “hey, this salon is legit!”. Consider licenses and permits as permission slips for your salon.

Here are a few you might need:

• Business License: Lets you run a business in your city.
• Cosmetology License: You (or your team) need this to style hair, do nails, or work your beauty magic legally.
• Retail License: Want to sell shampoo, candles, or any other products? You’ll need this.
• Health Department Permit: makes sure your salon is squeaky clean and safe for clients.
• Zoning Permits: Says your salon is in the right kind of building for a business.
• Sales Tax Permit: Collect tax like a real business pro.

Tip: Rules change depending on where you live, so it’s smart to ask a lawyer or local business expert for help.

Your Salon’s Safety Net, a.k.a. Insurance

Imagine someone slips by the shampoo bowl, or the floor gets ruined from a leak. Insurance is there to say: “Don’t worry, we’ve got your back!” Here’s what to get:

• Liability Insurance: Covers slips and spills
• Property Insurance: Protects your chairs, dryers, and products from damage or theft.
• Workers’ Compensation: If you have employees and someone gets hurt on the job, this is required.
• Business Interruption Insurance: If you have to close for a few days (like during a flood or fire), this helps cover the money you lose.

So yes, it’s not the most glam part of opening a salon, but without it, your business can’t run. Think of this section as the sturdy shoes under your fabulous outfit. Not the flashiest, but they’ll keep you walking tall and support you.

Funding Your Salon: Let’s Talk Money, Honey!

You’ve done the math, crunched the numbers, and figured out how much it’ll cost to open your dream salon. Now comes the big question: Where’s that money going to come from? There are plenty of ways to get the funding you need without selling your soul. Here are some of the most popular options for beauty bosses like you:

Personal Savings

If you’ve been stashing cash in a savings account, now’s the time to use it. The best part? No loans, no interest, no one to pay back. Just you and your salon dreams.

Small Business Loans

Banks, credit unions, and online lenders can offer loans to help you get started. However, they usually want to see a solid business plan and a good credit score. If you’ve got your ducks in a row, this can be a great way to secure a big chunk of funding.

Example: A $20,000 loan with a 5-year term and 8% interest rate might cost you about $405/month.

Investors

Got a friend, family member, or business savvy beauty lover who believes in your vision? Investors can chip in money in exchange for a slice of your business pie. It’s like having a partner but with perks and paperwork.

Crowdfunding

Sites like Kickstarter or Indiegogo let you raise money from fans, future clients, and total strangers on the internet. Plus, it’s a great way to build buzz before your grand opening.

Salon Specific Financing

Yes, this is a thing! Some companies focus just on helping beauty pros like you get funding for things like furniture, equipment, and inventory. They know our world and they speak fluent “shampoo bowl”.

The Nitty Gritty on Loans

If you’re going the loan route, here are some salon-friendly options to explore:

• Term Loans: Get a lump sum and pay it back monthly.
• Line of Credit: Like a credit card for your business, borrow what you need, when you need it.
• Equipment Financing: Need styling chairs, blow dryers, or a fancy new steamer? These loans cover gear specifically.
• Invoice Financing: If you ever have outstanding invoices, this helps cover the gap.

No matter which path you take, always read the fine print and make sure the funding option fits your business vibe and budget. You’re building something amazing, and it’s important to make sure your money game is just as polished as your balayage skills.

Ready To Take the Plunge?

If you love making people feel beautiful, being your own boss, and feel financially prepared for it, it’s time to open your own salon. But like any dream, it comes with a price and a plan. Start with what you can afford and work smart (not just hard) but mapping out your expenses before signing a lease.

Opening a salon is a big deal, but don’t worry, it’s totally doable with the right plan. The clearer and more detailed your budget is, the better your chances of crushing it! Think of this guide as your salon road trip map. You can follow it, but feel free to take detours and make changes based on where you are and what your business needs. You’ve got this!