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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
  1. Step 1: Licences and regulations
  2. Step 2: Choose your salon model
  3. Step 3: Business plan and costs
  4. Step 4: Location
  5. Step 5: Equipment and design
  6. Step 6: Staff and pay structure
  7. Step 7: Software and online booking
  8. Step 8: Brand and marketing
  9. How to open a salon with no money (or very little)
  10. 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

ModelStartup costProsCons
Salon suite (rent a private suite)LowFast start, independenceLimited growth without staff
Booth/chair rental in another salonVery lowMinimal riskLess control
Home salonLowLow overheadZoning/licensing rules, perception
Mobile salonLow–mediumServe clients at home/eventsTravel time
Full-service salon with staffHigherScalable, brandRent, 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

ModelHow it works
CommissionStylists earn a percentage of services; salon provides products/clients
Hourly + commissionBase pay plus incentives
Booth/chair rentStylists 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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Sachin Rawat

Written by Sachin Rawat

AI & automation engineer · websites, apps and motion design

I build AI agents, automations, websites, apps and motion design for businesses. These guides answer the questions people actually search, written from hands-on experience building them.

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