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Now more than ever is a great time to explore opening a small business. If opening a salon is something you’ve dreamed of, you may be wondering how much does it cost to open a hair salon.
Many hairstylists get their start doing hair at their homes or at the home of the client. The next step is to rent a booth in an established salon. The ultimate goal is to step out of the shadows and own a salon under your brand.
There are several steps to consider when it comes to how to open a hair salon. Keep reading to learn more.
How Much Does It Cost to Open a Hair Salon?
There is no set number on how much it will cost to open a beauty salon. The final figure is based on several factors. Most important is whether you’re opening a high-end salon in a business district, a community-based salon, or renting a salon suite.
On the low-end, you can expect to spend around $50,000 a year in rent. To own a salon can run as high as the mid-six figures to build.
Seeking Financing
Unless you’ve been saving your hair salon salary, you’ll need financing. After pricing the best places to open a hair salon, the next significant expense is your salon equipment, which you can order from a company like Salon Quip.
The salon will need furniture, equipment unique to the industry, and decor to play into your business theme.
Aside from savings, you can apply for a small business loan or seek out private investors.
State Licenses and Certifications
Every state has its laws and regulations regarding businesses. Understanding what level of education and types of licenses you’ll require can vary. Expect to spend up to $5,000 on education and a few hundred on business and trade licenses.
Business Insurance
Business insurance is required for all industries. Part of how to run a salon includes protecting your assets in case of a loss caused by an accident or natural disaster. You’ll also want coverage if you are hit with a personal injury lawsuit by a disgruntled client.
Insurance can run a few thousand dollars annually.
CRM Software Annual Fees
In the digital era, business operations have been simplified by using software applications. Hair salons can benefit from software that helps book appointments, market to clients, track inventory, and more.
It is essential to invest in software that can get integrated into your website and marketing strategy.
Depending on the sophistication of the software, fees can range from free services to about $5,000 annually. Website development and hosting, plus marketing, is another cost that will vary depending on your needs. However, you should expect to spend a minimum of an additional $5,000 annually.
Offsetting the Costs of Owning a Hair Salon
How much does it cost to open a hair salon? The figures vary. To offset expenses, bring in other hairstylists, nail and skincare technicians. Also, consider offering a line of beauty products.
We hope this article has nudged you closer to starting a hair salon. Continue to browse the site for news, trends, and business inspiration.
