Contents

Starting a salon business can be a rewarding venture, offering beauty buffs the opportunity to blend creativity with entrepreneurship.  

Whether you're an experienced beauty professional, a budding entrepreneur, or a salon owner looking to expand, this comprehensive guide will provide you with the steps and tips you need.  

From understanding market demand for beauty services to securing the necessary licenses and planning the marketing, this post has you covered. It’s essentially your ultimate ‘opening a salon checklist’.

Opening a salon checklist

1. Obtain salon licenses and permits

Each state has specific regulations for opening a hair salon business. Obtain the required licenses, such as a cosmetology license, business license, and health and safety permits. Compliance with local regulations is essential to avoid legal issues.  

Stay informed about any changes in regulations and ensure that all your documents are up to date. Consider consulting with a legal expert to ensure full compliance with all applicable laws and regulations when you open a salon.

Bonus: You can also check out how to open a spa business.  

2. Secure financing, and budget with care

Obtaining sufficient financing is crucial for any business, but managing funds wisely is equally important. When opening a hair salon, this involves creating a detailed budget plan, keeping track of every expense, monitoring cash flow meticulously, and making informed financial decisions.  

Reinvesting a portion of your profits back into the business can help it grow sustainably. Consider consulting a financial advisor to ensure you're on the right track for how to open and run a salon business.

3. Implement reliable appointment management software

Efficient appointment scheduling is fundamental to smooth operations and satisfied clients. Using comprehensive booking management software like Zenoti allows clients to schedule appointments online at their convenience, significantly reducing no-shows and optimizing your calendar. An efficient system can also send automated reminders to clients, freeing up your time for other important tasks.

Related: The 3 keys to regular revenue growth for every salon or spa. The three keys: maximizing appointment book capacity, optimizing booking utilization, and realizing the highest revenue for every appointment. Read the post for details.

4. Build strong vendor relationships

Reliable vendors are essential for maintaining a consistent supply of high-quality salon equipment and products. Establish and nurture strong relationships with your suppliers to benefit from bulk discounts, timely deliveries, and preferential treatment.

Maintaining open communication and negotiating favorable terms can give you a competitive edge and ensure your salon always has what it needs.

Related: The secret to easier inventory management at salons and spas. Get top strategies and an inventory success story. Read the post.

5. Ensure safety and cleanliness

The most basic requirement when considering how to open a salon business: maintaining a clean and safe environment. Follow stringent hygiene protocols, regularly sanitize all equipment, and comply with health regulations to ensure client safety.  

Implement a thorough cleaning schedule when opening a hair salon, and train staff on proper hygiene practices to prevent health issues and build trust with your clients, enhancing your salon's reputation.

You'll find insights on selecting the perfect location, designing an inviting and functional salon space, and choosing the right equipment and products to meet your clients' needs.  

This guide also covers financial planning and budgeting to ensure your salon remains profitable, as well as hiring and training staff who will contribute to the vibe of your establishment.  

Additionally, we'll explore the latest salon industry trend, helping you stay ahead of the curve and attract new customers.

How to Open a Salon: Step by Step

1. Conduct market research

Before opening a hair salon, it's crucial to understand your target market. Identify your potential clients, the services they are looking for, and gaps that exist in the current market.  

Conduct surveys, analyze competitors, and gather insights to tailor your offerings. Pay attention to trends and customer preferences in your area, as this can help you identify unique opportunities to stand out in the market.

Blog | The future of beauty: 4 key salon business trends of 2024
Learn what today’s salon customers prefer, which revenue drivers to key into, and more.

2. Create a business plan

A solid business plan is the foundation of any successful salon business. Outline your business goals, target market, services offered, pricing strategy, and financial projections when opening a hair salon. Your plan will serve as a roadmap and help secure financing.  

Ensure your business plan includes a detailed marketing strategy, organizational structure, and analysis of the strengths, weaknesses, opportunities, and threats (SWOT) facing your salon.

3. Secure financing

Starting a salon requires significant investment in salon equipment, rent, and initial supplies. Explore various financing options such as bank loans, investors, or personal savings. Ensure you have a clear budget to cover all initial salon startup costs and a buffer for unexpected expenses.  

Entrepreneurs who balk at this aspect of how to start a salon business should consider consulting with a financial advisor to navigate the complexities of securing funds and managing a budget.

4. Choose a good location

Location is critical to the success of your salon. Choose one that is easily accessible, has high foot traffic, and suits your target market.  

Consider the competition and ensure there is a demand for beauty services in the area. To do that, analyze the demographics and income levels of the surrounding neighborhoods to ensure they align with your target clientele.  

Finally, check for public transportation and parking options for your clients.

5. Design your salon layout

A well-designed salon enhances the customer experience and improves workflow. Plan the layout to include a reception space, waiting area, workstations, wash stations, and storage. Invest in comfortable and stylish salon furniture to create a welcoming ambience.  

To create the vibe you want, pay special attention to lighting, ventilation, and the overall aesthetic to ensure a pleasant environment for clients and staff. Consider hiring an interior designer who specializes in commercial spaces to help you create a functional and visually appealing layout when opening a hair salon.

Related: Check out our salon interior design tips.

6. Hire skilled staff

Your salon's success depends on the skills and professionalism of your staff. Hire licensed and experienced stylists, estheticians, and support staff. Conduct thorough interviews and provide training to ensure consistent service quality.  

Develop an attractive compensation package and foster a positive work environment to retain top talent. Regularly provide opportunities for continuing education and professional development to keep your staff up to date with the latest trends and techniques.

Related: Blog | How to attract, engage, and retain top talent  
Discover key strategies for recruiting and retaining talent in salons, spas, and medspas from top industry innovators.

7. Choose salon software and scheduling tools

Efficient salon management is key to running a smooth operation. When opening a hair salon, invest in a software platform that will help streamline appointment scheduling, client management, and inventory tracking. As an example, the Zenoti platform offers features that help enhance customer experience and optimize business processes.

“Zenoti is really setting the bar for innovation and is just leaps and bounds ahead of the competition in our space, which has historically been really, really behind in the tech sector.”

Katie Trent, CEO, Gene Juarez Salons & Spas

Look for software with features like online booking, automated reminders, and customer feedback mechanisms. This can reduce administrative burdens and allow you to focus more on client services.

Related: Blog | Salon management: Your ultimate guide for salon success

Learn the benefits of salon management software and an all-in-one salon POS system.

“I’ve owned a salon for over 35 years, and Zenoti is the most technologically advanced salon software we have experienced. Guests are easily able to use our app or book through our webstore to schedule appointments. We can follow up, communicate directly through text, and track appointment details and interactions all in one place. Zenoti continues to blow us away with its intricate reporting.”

– Paula Lindsay, Owner, Leading Edge Salon

8. Develop a marketing strategy

Effective marketing is crucial to attract and retain clients. Utilize social media, create a professional website, and leverage reviews to build a strong online presence.  

Offer promotions, loyalty programs, and referral incentives to encourage repeat business. Network with local businesses and participate in community events to increase your salon's visibility. Periodically analyze your marketing efforts to determine which strategies are most effective and adjust as you go.

Related: 20 ideas to help your nail salon stand out from competitors
Get your creative juices flowing with real-world examples for inspiration. Read the full post.

“One of the first things that made us choose Zenoti was their client relationship management system. It helps us keep in contact with our clients. So, if we are having a slow week, it will send out emails and text messages to our clients automatically.”

– Brendon Mann, Owner and Founder, Epic Hair Designs

Get Free Seasonal Email Templates for Salons, Spas to Boost Guest Engagement

9. Launch and promote your salon

When opening a hair salon, plan a grand event to create buzz and attract clients. Offer special discounts and services during the launch period. Collaborate with local influencers and beauty bloggers to promote your salon.  

Make sure your launch event is well-advertised through multiple channels, including social media, local newspapers, and community bulletin boards. Follow up with attendees after the event to thank them for their support and encourage them to book future appointments.

Related: Salon Success Series: Beauty salon open-house ideas to grow your client base. Once you establish your salon, what should you do when business slows or plateaus? Infuse new life with an open house. See the full list of ideas.

Essential tips for opening a hair salon

Now you have a better understanding of how to start a hair salon and have worked your way through our opening a hair salon checklist, here are some bonus tips to help ensure your set your new business up for success.

Gather feedback to improve

Customer feedback is invaluable for improving services and maintaining high client satisfaction. Use tools like Zenoti's feedback system to gather insights directly from clients, address any concerns promptly, and make the needed improvements. Regularly reviewing feedback can help you identify trends, understand client needs better, and refine your services to exceed expectations.

Related: A guide to salon client retention: 8 essential strategies. Get tips on boosting loyalty, increasing revenue, and running a thriving salon business.

Stay on top of industry trends

The beauty industry is constantly evolving with new trends, techniques, and products. When researching how to open a salon business, identify the sources and channels for such information to keep your salon competitive and offer clients the latest beauty services.

Attend industry events, follow influential beauty experts, subscribe to relevant publications, and invest in continuing education and training for your staff. By staying ahead of the curve, you can ensure your salon remains a top choice for clients.

Related reading: Discover how AI is transforming salons into efficient, customer-centric hubs

Providing opportunities to network and keep up with salon trends and technology is Innergize 2024, curated by Zenoti. The beauty and wellness summit will take place October 13-15 in Las Vegas, Nevada. Key highlights from last year’s event cover topics like beauty-and-wellness membership programs, technology, and staff retention.

Visit the site to explore this year’s agenda and register.

How to start a hair salon: Calculating costs upfront

Before opening a hair salon, being methodical in the cost calculations will ensure you don’t encounter any unprecedented expenses.

Investing in a salon involves various upfront expenses, monthly costs, and ongoing investments, and our free salon start-up cost calculator ensures you have a detailed understanding of costs from day one.

Download the free salon business cost calculator now

Conclusion

Starting a salon business can be a fulfilling endeavor that combines creativity and entrepreneurship. The journey involves careful planning, dedication, and a passion for beauty and wellness. By following the steps outlined above and implementing the tips provided, you'll be well on your way to opening a hair salon successfully.  

First, it's crucial to conduct thorough market research to understand your target audience and identify any gaps in the market. Securing a prime location, creating a business plan, and obtaining the necessary licenses are foundational steps. Additionally, designing an inviting salon space that reflects your brand identity will help attract and retain clients.  

Once you launch and establish your passion project, the learning for how to run a salon business never stops. Continuing education, adapting to emerging trends, and prioritizing customer satisfaction are key to long-term success. Offering exceptional service, staying updated with the latest industry techniques, and fostering strong relationships with clients can all help set your salon apart.

Explore the Zenoti platform for business management when opening a hair salon.

FAQs


On average, it can range from US $50,000 to $250,000, but this estimate will vary based on the quality of equipment purchased, interior design, staffing, and other salon startup costs such as marketing and permits.

The cost to open a salon depends on several factors including location, size, and the range of services offered. For instance, a salon in a prime urban area will likely have higher rent and operating expenses compared to one in a smaller town. Additionally, the size of the salon, whether it's a cozy boutique or a large establishment, will significantly impact costs.

Consider options like partnering with investors to gain financial backing and expertise, applying for business loans to secure funds, or starting with a home-based salon to reduce initial costs and gradually build your client base. Exploring these avenues can help you tone down the financial risks and set a solid foundation for business growth when opening a hair salon or nail salon.

Related reading: Are nail salons profitable? Explore the secrets to success

Requirements to open a hair salon include obtaining a cosmetology license, a business license, and health and safety permits specific to your state for starting a salon.

The cosmetology license ensures you are qualified in beauty treatments, while the business license legitimizes your operations. Health and safety permits guarantee that your establishment meets all required standards to provide a safe environment for your clients.

No, operating a salon without the necessary licenses is illegal and can result in severe consequences, such as hefty fines, forced closure of the business, and potential legal action. It is crucial to comply with local regulations and obtain all required permits when opening hair salon to avoid these risks and ensure a smooth operation.

Running a successful salon involves a combination of strategic planning, exceptional service, and effective marketing. First, ensure that you meet the necessary requirements to open a hair salon and have a well-defined business plan that outlines your goals, target market, and financial projections.

Focus on hiring skilled and passionate staff, as they are essential to delivering outstanding customer experiences. Maintain a welcoming and professional environment that reflects your brand identity.

Marketing your salon effectively is crucial; leverage both digital platforms and traditional methods to reach potential clients. Engaging with your audience on social media, showcasing your work, and fostering client relationships can significantly enhance your visibility.

Lastly, keep a close eye on your finances and be adaptable to trends and client preferences. By prioritizing these elements, you’ll create a thriving salon that clients love returning to.

Share
Gita Mani
Senior Content Specialist
Gita Mani
Senior Content Specialist

What you should do now

When you're ready, take a look at ways we can help you grow.
See us in action
We'd love to demonstrate what we can do for you, and how you can grow your business with us.
Get a Free Demo
Get industry tips
Sign up for news, tips, and inspiration delivered directly to your inbox.
Sign Up

Growth software that nearly 30,000 businesses trust

Beauty and wellness businesses love Zenoti. 1,000+ reviews and counting.

Recommended Reading

Button Text