How to Start a Beauty Salon Business

Considering the growth in the beauty and wellness industry, it hardly surprising that many stylists or entrepreneurs are looking to grab a slice of the market and are planning on opening a beauty salon business. If you happen to either, be a stylist looking to start your own brand, or a first time entrepreneur entering the beauty salon business, you may quite possibly be wondering how to set up a beauty salon business. Read along our fool proof plan that will assist you in opening a beauty salon business.

Make a business plan

Every business commences with a plan. It is the Bible of your business and will contain each and every detail. In simple words it is a qualitative and quantitative assessment of your business. It will be the document that, along with an executive summary, will be presented to your financers and investors. It will indicate them what your business is about, which gaps the business will fulfill, what is the market for such services and how will you make it successful and troubleshoot problems, if any.

Budgeting & Financing

Now that you already have the plan in place, let us talk about numbers. What is it going to cost you to start your business, and what will be the operational cost? Start-up cost will be the capital that you put into the business and will require some genuine budgeting such that you’re neither cutting corners nor going extravagant.A realistic budget will also help you reign your costs, allocate resources wisely, and will be your blueprint to arrive at the pricing for your services. The budget will also give an idea to the potential investors or banks as to what is the loan or investment that you are considering, and what would be your financing cost.


With the business plan and budget in place, it is time to go location hunting. Choose a place that is busy and gets enough footfall. Your state of art salon is only good so long as it is easily accessible. Anything remote and you risk losing potential clients.If you’re planning to take up the space that was previously occupied by another salon, do your due diligence to ascertain why that store went out of business. Essentially, when you’re searching for location, it helps to keep in mind the following criteria – visibility, ease of access, local competitors in the vicinity and your target demographic.

Licenses and Permits

Based on your business model, you may have regulatory requirements and obligations to fulfill. These can range from basic business license to employernumber and will depend on the nature of your business. Although there exists no fixed laundry list of licenses and permits, that can be used as a checklist but to list a few – business license, tax registration, consent to operate, skill certificate, and employer identification number. These licenses and permits keep changing from one jurisdiction to another so it is best to get these details from your local trade regulatory authorities.

Hire Skilled Staff

When it comes to hiring staff, aside from checking basic skills and certificates, it is important to figure out the attitude and the demeanor. Ideally, your staff should have values that align with your values and vision for your salon. Hiring a team that is as passionate about the business as you will assist you in creating a cohesive team with a great working relationship. Since the nature of the industry is such that clients keep coming due to a long-term relationship with the stylist, it is recommended to conduct background checks and references before hiring.


For every service that your salon proposes to provide, you will have to ascertain the pricing. If you’re wondering how to arrive at the pricing, let us give you some guidelines. The first component of your pricing would arrive from your budget and actual cost incurred to set up the salon. Second input will come from market research by checking out pricing at competitors. Third input will come from an estimated number of services that you will be delivering every day, week. Your pricing strategy will be arrived from these inputs. Try not to undercut competition by predatory pricing. It may work initially, but it will create trouble later when you would like to escalate the prices.

Marketing Plan

You must have a marketing budget and plan for the first 12 months of your business. The marketing plan must leverage technology and engage in digital marketing. The marketing plan must come into play prior to the opening of the salon and be constantly revised to draw more clients.

Deploy a salon management software

Running a salon professionally requires a lot of administrative work. Thus, it is highly recommended to deploy a salon management software, which automate most of the administrative work and leave you with time to focus on other important aspects of your business. If you would like to know how a salon management software helps you manage your salon business, you can read this post. There are many professional salon management software available for use. Some established names are Zenoti, Phorest, MindBody, Schedul etc.

We wish you the best of the success good luck in opening a beauty salon business.

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