Starting a Salon: Part I (Budget)
Looking for ways to cut down on this budget? Consider purchasing used equipment, and shrink the reception area to a couple of seats.
| Low | High | |
| Licenses & Permits | ||
| Sellers Permit | 40 | 40 |
| Business Registration | 250 | 1,000 |
| Business License | 50 | 100 |
| Small Business Insurance | 400 | 400 |
| Building Rental & Renovations | ||
| Rent | 2,000 | 20,000 |
| Leasehold Improvements | 5,000 | 25,000 |
| CAM Fees | 150 | 300 |
| Utilities Set Up | 350 | 1,000 |
| Security System | 125 | 500 |
| Equipment | ||
| Styling Stations (Cabinets, Stool, Mirror) | 200 | 2,000 |
| Shampoo Station (Bowl & Chair) | 200 | 500 |
| Stylist Stool | 20 | 100 |
| Carts | 40 | 300 |
| Washer & Dryer | 850 | 1,400 |
| Supplies | ||
| Salon Scissors Set | 20 | 76 |
| Clippers Set | 50 | 150 |
| Styling tools (blow dryer, diffuser, curling iron, flat iron) | 80 | 250 |
| Clips and Caps | 5 | 35 |
| Brushes and combs | 10 | 30 |
| Clips | 21 | 40 |
| Client cap and gown | 50 | 150 |
| Mirror (Hand Held) | 10 | 20 |
| Towels | 22 | 40 |
| Product | ||
| Coloring products (hair dye, bleach, toner, etc) | ||
| Permanent Hair color | 150 | 300 |
| Demi Permanent Hair Color | 100 | 200 |
| Hair cleaning products (shampoo, conditioner) | ||
| Shampoo (Back Bar) | Free* | Free* |
| Shampoo (Retail) | 100 | 100 |
| Conditioner (Back Bar) | 30 | 30 |
| Hair styling products (hairspray, shine spray, hair oils, heat protectant, etc.) | ||
| Styling Spray | 18 | 18 |
| Protectant | 10 | 10 |
| Oils | 20 | 20 |
| Shine Spray | 20 | 20 |
| Cleaning & Sanitation Supplies | ||
| Cleaning supplies for each station (broom, sanitation wipes) | 155 | 200 |
| Vinyl Gloves | 15 | 15 |
| Advertising & Promotion | ||
| Website/Social Media | 150 | 2,500 |
| Design Fees | 50 | 500 |
| Service Menus | 100 | 400 |
| Local Advertising / Singeage | 150 | 750 |
| Business Cards | 50 | 150 |
| Office Equipment | ||
| Phones | 100 | 300 |
| Office Supplies | 200 | 300 |
| Start Up Cash Float | 200 | 500 |
| POS System | 800 | 3,500 |
| Reception Desk (Optional) | 800 | 1,300 |
| Reception Table | 20 | 200 |
| Reception Chairs (2 – 4) | 20 | 500 |
| Magazines (Reception Area) | Free | 50 |
| TOTAL INVESTMENT | 13,201 | 65,294 |
Licenses and Permits:
Business Registration
You are required to register your business before operating (even if it’s based out of your house). This cost varies based on your state. This can take up to one month to receive, so you’ll want to plan ahead.
Business License
Upon registering your business, you’ll need a business license to operate. This process can take an additional 1-2 weeks and is roughly $50. This cost can vary based on your entity type.
Sellers Permit
If you plan to sell retail items at your salon, you will need to collect sales tax. Most states require you to have a sellers permit. They can be obtained via Legal Zoom and cost roughly $40.
Small Business Insurance
Small business insurance is important to protect your assets and prevent against the unexpected. Rates average around $400/year but fluctuate based on your contents.
Building Rental & Renovations
Rent
Our budget assumes that you will be entering into a lease, which is recommended as it is significantly less risk and investment. This can vary based on your area, so you’ll want to check out your local listings. Our rates are based on 1,500 sq. ft properties in cities like Houston (Lower end) and Brooklyn (Higher end).
Leasehold Improvements
Depending on the building, you’ll likely need to make some changes. This includes HVAC systems, washer hookups, additional plumbing, electrical work, and painting.
CAM Fees
If you are part of a group of buildings, you will likely need to pay these fees on a monthly basis. These cover things like the parking lot, sidewalk repair, mail, and garbage collection.
Utilities
Power, heating and internet connectivity will all be arranged.
Security System
This is optional, but highly recommended to protect your assets. A basic starter system is $125 to purchase and install.
Equipment
Styling Stations, Shampoo Stations, Stools, & Carts
If you’re just looking to get started, basic stations are available with Sally Beauty Supply at a low minimum investment. We’ve based our estimates on this website, but cheaper options are always available though craigslist or local marketplaces.
The lower end assumes just one station will be purchased to start, and the higher end allows for 6.
Washer & Dryer
You’ll definitely be going through a lot of towels, and an on-site washer and drying will make things a lot easier. Basic new sets start at $850, but used sets are also available at significant discounts.
Supplies
We’ve prepared our budget based on the absolute basics you’ll need to get started. This includes scissors, clippers, basic styling tools, clips, brushes, mirrors and towels.
Products
To get started, you’ll need a selection of hair color, back bar items, styling sprays, oils, and protectant. We’ve based our budget on 6-7 colors from Wella.
Cleaning and Sanitation Supplies
You’ll definitely need some basics to get you started. Our budget allows for cleaning equipment, gloves, and sanitation supplies.
Advertising and Promotion
It is highly recommended that you invest in some advertising to get the word out. A Facebook or Instagram page is free to create and can help those in the community find you. A google map listing is an absolute must.
Signage is very important to let others know that you are there. Let passerby’s know the services you offer and prices.