How To Open Your Own Salon – A Comprehensive Guide 

Do you want to kickstart your entrepreneurial journey and find the answer to how to open your own salon? Do you have the vision and courage but lack direction? If you are nodding to these questions, you have arrived at the right place. This article is about how to start your salon business and make it profitable. 

Before we jump into the details, let us remind you one thing. It demands severe patience and starts any kind of business, and starting your own hair salon is no different. Starting a hair salon business requires rigorous research, knowledge of licensing and hiring, and how to grab and retain clients. 

Keeping the above in mind, let’s jump into the steps of how to start your own salon, coupled with some commonly asked questions: 

Checklist of How to Open Your Hair Salon? 

Here is a list of things you must do to get ready to open your salon for client satisfaction before we get into the specifics:        

Concept of your salon 

Conceptualize your salon. Before you take your first step, consider its exterior, interior, and the nature of the services offered. You also need to determine the pricing for each service. 

Business plan of your salon 

Create or have a business that serves as a constitution of your salon business. It must contain a company description, industry analysis, geographic analysis, target market analysis, sample services, marketing plan, management strategy, financial plan, and executive summary. 

Business registration 

Register your business with your local governments and get an Employee Identification Number or other relevant information for tax filing. Also, you should have a trademark for your salon’s brand name. 

Pick the salon location

Physical location can make or break your business. Have its interior in shape and pick the place with high foot traffic and visibility. These will help you reach your end goal. 

Buy Salon Equipment 

When choosing what to buy or lease, exercise strategic judgment because equipment might be costly. Make a list of everything you need and nothing you want. Then, make choices based on your financial evaluation and budget. 

Hire expert staff

Make a list of the expertise you need to run your salon. Then, according to that expertise, hire the staff who have that expertise and relevant experience. During the onboarding process, keep in mind that you should pick the right appointment booking system, like Gravity Booking. This will help find the resource who can run the software for online salon reservations.  

Devise A Clear Marketing Plan 

Before you start your own salon, devise a clear-cut and profit-generating marketing plan that covers:

• Brand awareness
• Customer pain points 
• Customer retention planning 

One major point here is to have dedicated social media planning to create and retain the salon’s hype. 

Conduct Rigorous Market Research 

Before selecting a chair, conduct due diligence via thorough market research. Investopedia says, “Market research examines consumer behavior and trends in the economy to help a business develop and fine-tune its business idea and strategy.” 

Gather information about your target customers, such as the latest hairstyle trends, what treatments millennials prefer, and so on. Also, dig deep into the demographics of the area where you will establish your hair salon. 

Select Type of Salon 

Pick your specialty. It can be ‘nailing’ the nail art or ‘blazing’ laser treatment; the sky is the limit to setting your salon type. 

Specialization is necessary because not all salons are the same. Whether you hire experts for hair salon services or onboard specialists for skin tanning services is up to you, but be specific. By deciding which services to provide, you may expedite deciding what kind of salon to open. 

Here are some salon services that you can offer: 

• Nail services – manicure and pedicure  
• Hair services – e.g. coloring, styling, and cutting 
• Tanning services – via sprays or UBV lights 
• Skin treatments include waxing, threading, facials, etc. 
• Drink bars – live music or comedy sessions 
• Sports bars – create an area for people to enjoy big sporting events 

After deciding on a basic salon type, you can further differentiate yourself by selecting additional specialized services, such as beach-ready spray tans, tattoo painting, or a different service.  

Pick a unique salon brand name 

Now it’s time to give your salon business a unique name that creates a spark and remains memorable straight away. Make it catchy, and take time for brainstorming. Find some cheeky names, and you can use AI’s help to find some cheeky salon names. Here are some examples: 

However, you may always pick a fashionable and distinctive name if puns aren’t your thing. There is a particular ring to even titles as straightforward as The Hair Parlor or 14th Street Salonz.  

Now, blend salon ideas into a concrete business plan as a marketing hack for your salon. Make sure you include: 

Executive summary – Summarize your whole business plan in this section. 

Salon description – Define and propagate your salon’s unique selling proposition.  

Major goals – A certain number of clients or salon experts, yearly revenue for the first three years, etc.  

Business model: Should you be restricted to hairstyle services or want to go to an all-service hair salon?

Market analysis: Gauge your salon’s market competition and whether there is enough space in your locality for another established salon. 

Sales and marketing plan: It includes how you will spread your word, get customers, and retain them for a long time. 

Financial plan – Make estimates of your salon’s expenses, revenue, and maximum expected profits. 

Make Estimates Of Your Salon Business

People go to hair salons to get the look of a celebrity or VIP. However, it’s a fact that you need to have quality and the latest tools and devices to provide quality salon services that reflect a red carpet treatment and are far from cheap or inexpensive. 

Are you curious about the exact startup costs to start your own salon business? Statista estimated the beauty and personal care sector to be worth $625.7 billion in 2023 and is projected to expand by 3.32 percent a year. 

Additionally, the beauty industry is stable and frequently unaffected by economic downturns. Even if you possess the requisite abilities, starting a business can be difficult and demands perseverance and expertise. 

Depending on several variables, starting costs vary greatly, ranging from $10,000 to $200,000.

A typical startup cost to start your own salon can be determined as follows: 

• Physical space: Get real estate on rent or buy your own. In case of buying, you will have to bear upfront costs related to the lease security deposit. 
• Salon business license: You need to purchase a valid license to practice in your local area. In order to sell salon products, you will also need a seller permit license. 
• Salon tools: A salon requires a lot of beauty equipment, such as chairs, sinks, beauty products, and hair dryers. You will also need computers, appointment booking software, and a POS system. 
• Salon payroll: You must factor in your hired salon experts, their related benefits, and payroll taxes. 
• Salon inventory: Before opening, you should increase your supply if you intend to provide cosmetics or other goods. 

The above are a few costs associated with starting a salon business. Make a checklist of possible hair salon expenses to track overall costs and financing needs. 

Register Beauty Salon 

Are you prepared to formalize the situation and make it even more lasting than a nice dye job? Establish your beauty parlor with the government of the state where you live as a business concern. Are you prepared to formalize the situation and make it even more lasting than a nice dye job? 

Incorporate your beauty parlor with your state’s government as an industrial entity.   

• Register as a sole proprietor – In case of failure in formal registration, you will work as a sole proprietor. This will render you a no-liability operation, but you will be on your own if any financial difficulty catches you. 
• Register salon as LLC – It is a popular way to run or start your own salon. It is affordable and easy to establish, and you will have a cushion in case of a financial crunch. 
• Register as a partnership. This is similar to a sole proprietorship with two or more owners. Again, this regime does not provide financial protection.

Secure Funding to Start Your Salon 

Opening a hair or nail salon and making people look gorgeous is always expensive. Therefore, you might need to secure outside money to open yours.

You can use the following to raise money for your spa or nail salon:  

Conventional loan 

Any major bank can give you a traditional loan at an affordable rate. However, you will have to abide by strict rules and a lengthy time to secure funds. 

Crowdfunding 

Crowdfunding websites like Kickstarter might be good choices if you can generate sufficient interest from your target audience. 

Microloans 

Microloans are easier to secure compared to SBA loans. You do not need a lucrative credit history in business. All you need is a solid and feasible business plan to get this loan for your son. 

SBA loans 

These government-supported loans range from smaller microloans all the way up to 7(a) loans. You must have a high credit score to be eligible for these loans because they are somewhat tricky.   

Once you decide the type, start taking steps to secure a loan for your nail salon to buy the space and plan your grand launch. 

Establish Your Tech Mechanism 

You won’t manage your salon business with a paper calendar in 2025, right? So, why not purchase a payment booking system instead of maintaining a cash register? 

Following are the key areas that you need to maintain your tech system to start your salon business: 

POS Software 

Square offers its POS software, which lets you handle scheduling and appointment management, making it feasible to book salon appointments. 

Online Forms 

Install software or a digital system that lets customers quickly fill out online forms. The system should offer options to enable clients to provide complete details, especially their timing and date of appointment. 

Online Calendar

Your tech system to start hair salon booking should have a built-in calendar so that the user doesn’t have to go outside the system to see available appointment dates to avoid no-shows. 

Final Words on How to Start Your Own Salon 

Starting a salon demands a deep dive and a bird’ s-eye view. However, good planning and preparation can make establishing a new hair salon easier and position your company for success. Examine your overhead expenses, ensure you abide by all applicable laws and regulations, and carefully cultivate your customer base. Spend some time determining the best physical site, securing the appropriate funding, and offering services to help your salon grow.

FAQs on Starting a Salon Business 

Q: How can I smoothly run my salon business? 

One major part of running your hair salon business is to have a smoothly functional appointment booking software. It will help you book appointments promptly and make it easier for your clients to approach your business. And Gravity Forms Booking is a surefire way to run or start your salon business smoothly. 

Q: Can I open my salon with zero personal investment? 

There are quite a few financing options that you can consider even if you have no money to start your salon. Contact finance professionals before you take any steps. 

Q: How can I make my salon profitable? 

To make your salon profitable, you need two fundamental things: repeated clients and diverse revenue streams. Loyalty programs are the best solution to get repeat buyers. Offer special discount services, free products, deals, and offers on birthdays. 

Similarly, you need to offer varying salon services and simultaneously be a nail salon, hair salon, makeup salon, or anything else that comes to mind. 

Q: What is the best salon marketing plan? 

Here are some aspects to incorporate in your salon marketing: 

• Unique ways to attract clients
• Offer retail products  
• Install a reliable appointment booking system like Gravity Booking 
• Keep up with the industry trends 
• Offer free beauty tips 
• Offer loyalty referral programs 
• Special offers are available on special occasions like New Year, Christmas, Thanksgiving, etc.