How to Start a Hair Salon Business: Step-by-Step Guide to Opening Your Own Salon (Even on a Budget)
How to open a salon or hair salon business
In this article
- Step 1: Licences and regulations
- Step 2: Choose your salon model
- Step 3: Business plan and costs
- Step 4: Location
- Step 5: Equipment and design
- Step 6: Staff and pay structure
- Step 7: Software and online booking
- Step 8: Brand and marketing
- How to open a salon with no money (or very little)
- Frequently asked questions
To start a hair salon: get the required cosmetology and salon licences, choose a model (full-service salon, booth rental, salon suite, home or mobile), write a business plan with costs and pricing, find a location, buy chairs, stations, shampoo units and products, decide on staff pay (commission or booth rent), set up salon software with online booking, build your brand and Instagram, and launch with offers that fill your book.
Step 1: Licences and regulations
Requirements vary by country/state: cosmetology/barber licence for stylists, salon or establishment licence, business registration, health and safety inspections, and insurance. Check your local cosmetology board or equivalent.
Step 2: Choose your salon model
| Model | Startup cost | Pros | Cons |
|---|---|---|---|
| Salon suite (rent a private suite) | Low | Fast start, independence | Limited growth without staff |
| Booth/chair rental in another salon | Very low | Minimal risk | Less control |
| Home salon | Low | Low overhead | Zoning/licensing rules, perception |
| Mobile salon | Low–medium | Serve clients at home/events | Travel time |
| Full-service salon with staff | Higher | Scalable, brand | Rent, payroll, management |
Salon suite business: some entrepreneurs lease a building and rent suites to independent stylists, a real-estate-like model.
Step 3: Business plan and costs
Startup costs, services and pricing, target clients, staffing model and break-even (see How much does it cost to open a salon?).
Step 4: Location
Visibility, parking, foot traffic, plumbing for shampoo stations, electrical capacity, ventilation (especially for nail and chemical services) and lease terms.
Step 5: Equipment and design
Styling chairs and stations, shampoo bowls, dryers, reception desk, retail display, tools, products, laundry, and an inviting design that photographs well for social media.
Step 6: Staff and pay structure
| Model | How it works |
|---|---|
| Commission | Stylists earn a percentage of services; salon provides products/clients |
| Hourly + commission | Base pay plus incentives |
| Booth/chair rent | Stylists pay rent and run their own clients |
Step 7: Software and online booking
Salon software (e.g., Fresha, Vagaro, Boulevard, Square Appointments, GlossGenius and others) for booking, payments, reminders, client notes and marketing. Add a "Book now" button to your website, Instagram and Google profile (see How to make a booking website).
Step 8: Brand and marketing
- Name, logo and Instagram aesthetic
- Before/after photos and Reels
- Google Business Profile and reviews
- Grand opening offers and referral rewards (Growth: How to grow your salon business.)
How to open a salon with no money (or very little)
Start with booth rental or a salon suite, buy used equipment, build a client base on Instagram first, pre-sell packages, consider a small business loan or investor, and grow into a larger space.
Frequently asked questions
How do I start a hair salon business?
Get licensed, choose a model, write a business plan, find a location, buy equipment, decide staff pay, set up booking software, brand your salon and launch with marketing offers.
Do I need a licence to open a salon?
Usually yes: stylists need cosmetology licences and salons often need an establishment licence, plus business registration and inspections. Check local rules.
How can I open a salon with little money?
Start with booth rental or a salon suite, buy used equipment, build clients on social media and pre-sell services.
What is a salon suite business?
Either renting a private suite as an independent stylist, or owning a facility that rents suites to multiple independent professionals.
Is owning a salon profitable?
It can be; see how much salon owners make and the factors that affect profit.
How long does it take to open a salon?
Often a few months, depending on licences, build-out and financing.
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