How Much Does it Cost to Open a Beauty Salon?

The cost of opening a beauty salon generally varies by the business-owners’ financial capital input. A person, for instance, may look to invest in a stable firm in search of handsome return rates at a short period through purchasing or setting up a franchise. However, another business owner may plan to start small by opening up the beauty shop as a rental section of an existing firm. Some major factors that affect the cost of opening a beauty salon include the supplies, start-up costs like rental charges, equipment, and essential concepts like sales and marketing.

Supply Costs

Recurring supplies are one of the most expensive costs for opening a beauty salon. Supplies like hair capes, washers and dryers, towels, and sanitizers are of high importance in the daily functioning of the beauty salon. Therefore, purchasing the appropriate supplies is mandatory for opening a beauty salon. Without proper and quality supplies, the beauty salon may even stand a chance of losing most of its customers.

Initial costs for some products for sale at the beauty salon, for instance focusing on brands like Matrix and Nexus, are at least $20,000. The expense, however, stays manageable by the requirement that all stylists at a beauty salon should personally own some of the equipment like brushes, combs, scissors, and clippers.

Start-up Costs

The rental cost in itself poses as a huge challenge, especially when opening a beauty salon in a strategic location that can act as an advantage in gathering more customers. The requirements above paying rent include paying for insurance, utilities, and deposits for the rental space. The process, most times, also involves an attorney during the negotiation process effective in reviewing the rental agreement. The general cost in such a case, thus, totals to $5,000-$8,000.


Equipment is another expense worth consistent focus for its importance when opening a beauty salon. Without proper equipment, a beauty salon may not accomplish its purpose both to the business owner and the customer.
Some equipment necessary for opening a beauty salon include clippers, hood dryers, coloring stations, chairs, shampoo, and all-inclusive beauty salon equipment. The average cost of all necessary equipment is $20,000-$30,000 with room for variance according to the size of the beauty salon.
In small set-ups, nonetheless, most of the beauty salon equipment is for rental at the booth space. On the other hand, purchasing a franchise, however, negotiations of the price of the firm include the cost of the already existing beauty salon products like chairs, clippers, and all necessary beauty salon equipment.

Sales and Marketing

One area that is necessary to add in the start up cost is spreading the word about the sales and services offered by the beauty salon. It is important that customers especially in the local area, for instance, learn that the beauty salon provides services like facial scrubs and maintenance for 50% during every last Friday of the month in the afternoons.
Some important marketing tactics include television and radio advertising, using flyers, social media marketing like marketing on Instagram and Twitter, and email listing. Such an offer would cost $5,000- $15,000 for TV and radio spots upon an agreed period.
The process may also need an attorney for proper negotiation and agreement on advertisement deals made between the firm and various media outlets. The attorney generally may cost upwards of $150 an hour. However, the cost would eventually prove appropriate.

Licensing and Certification

It is important to license your beauty salon even before it begins to function. The licensing and certification process makes it convenient for proper taxation and abidance with the set rules and regulations for opening a beauty salon. The costs generally vary from state to state but may sum upwards of at least $6,000. It is vital, however, to refer with local authority rules and regulations on the appropriate cost for licensing and certification.

Total Start-up Cost

The total cost needed to open a proper beauty salon may go upwards of at least $60,000-$90,000. The large portion of the cost goes to the initial cost that include the factors like marketing and purchasing equipment. The other caters for ongoing and recurring costs, mortgages, and all necessary expenses for keeping the firm afloat while offering splendid services and products.

Related article :How to Start a Beauty Salon

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