Is Now a Good Time to Open a Hair Salon?
Absolutely. Despite economic shifts and tech trends, hair salons remain a profitable and in-demand business. Why? Because no matter what, people want to look and feel good. In fact, the global haircare market is projected to hit $113 billion by 2028 (Statista), with personal grooming more popular than ever.
If you’re thinking about opening a hair salon, you’re entering a dynamic, creative, and relationship-driven industry. But it takes more than great scissors to succeed—you’ll need a business plan, location strategy, licenses, funding, and marketing that works.
This complete guide breaks down everything you need to know to go from “dreaming of owning a salon” to cutting your first client’s hair.
1. Define Your Salon Concept and Target Market
Before renting a space or ordering furniture, start by clarifying your salon concept:
🔹 Salon Types:
- Full-service salon: Hair, nails, facials, makeup
- Hair-focused salon: Only hair services
- Eco-friendly salon: Natural, cruelty-free products
- Mobile salon: You bring services to clients
- High-end boutique vs. budget-friendly chain
🔹 Who is your ideal client?
- Young professionals?
- Stay-at-home parents?
- Brides-to-be?
- Seniors?
Pro Tip: Niche salons (like curly-hair specialists or bridal styling) often attract loyal clients and charge premium rates.
2. Create a Business Plan (Not Optional)
A well-written business plan is essential for:
- Securing loans or investors
- Staying on track financially
- Understanding your competition
Your business plan should include:
- Mission & vision
- Market analysis (competitor salons, local demand)
- Pricing strategy
- Startup costs
- Marketing plan
- Financial projections (first 1–3 years)
Need help writing one? Try LivePlan or Bplans for salon-specific templates.
3. Estimate Your Startup Costs
The average cost to open a hair salon ranges from $10,000 to $100,000+, depending on location, size, and services.
Breakdown of Key Costs:
| Item | Estimated Cost |
|---|---|
| Salon chair (each) | $250 – $1,000 |
| Shampoo stations | $500 – $2,500 |
| Mirrors & furniture | $1,000 – $5,000 |
| Rent & deposit | Varies ($2,000+/mo) |
| Licenses & permits | $500 – $1,500 |
| Equipment & tools | $2,000 – $8,000 |
| Branding/signage | $1,000+ |
| Marketing/website | $500 – $3,000 |
| Initial inventory | $1,500 – $4,000 |
Tip: Start small and expand. Many salons begin with 2–3 chairs and build as they grow.
4. Secure Funding for Your Salon
If you don’t have the capital saved, here are some popular ways to finance opening a hair salon:
- Personal savings or bootstrapping
- Business loan (bank, credit union, or SBA-backed)
- Friends and family funding
- Salon equipment financing
- Grants for women/minority-owned businesses
- Crowdfunding (like Kickstarter or IFundWomen)
Pro Tip: Create a spreadsheet to calculate fixed vs. variable expenses and how long it’ll take to break even.
5. Choose the Right Location
Location is everything. Your salon should be easily accessible, highly visible, and convenient for your target market.
What to look for:
- High foot traffic or near busy shopping areas
- Parking availability
- Affordability vs. visibility
- Local competition saturation
Alternative: Many salon owners start by renting a chair in an established salon (called booth renting) before launching their own full space.
6. Handle Legal Requirements and Licenses
Running a salon legally means checking off several compliance boxes:
Must-Have Licenses:
- Cosmetology license (for you and staff)
- Business license (through your city or state)
- Salon license/establishment license
- Health & safety inspection clearance
- EIN number (Employer Identification Number)
- Liability insurance
Check your state or country’s board of cosmetology for specific rules and timelines.
7. Design a Beautiful and Functional Salon Space
Your salon’s layout should be both aesthetic and efficient. Clients want to feel pampered, and stylists need space to work.
Essential Features:
- Reception area
- Waiting chairs with magazines or water
- Comfortable styling stations with mirrors
- Sinks and shampoo bowls
- Storage for tools and inventory
- Lighting that’s flattering (not too harsh or dim)
Trending Tip: Many salons now add greenery, minimalist decor, and phone charging stations to elevate the experience.
8. Hire and Train a Rockstar Team
If you plan to expand beyond solo operation, your staff will define your salon’s reputation.
What to Look for:
- Licensed stylists with positive reviews or client following
- Friendly, professional attitude
- Willingness to learn and grow
Offer ongoing training in:
- Customer service
- Upselling products
- New trends (e.g., balayage, keratin treatments)
Retention Tip: A commission + bonus structure can help motivate employees and boost revenue.
9. Choose and Manage Your Inventory
Stock your salon with professional-grade hair products your clients will love—and buy for home use.
Essentials:
- Shampoos, conditioners, treatments
- Styling tools (dryers, irons, brushes)
- Hair color, bleach, toners
- Capes, towels, gloves
Recommended Brands (2025):
- Olaplex
- Kevin Murphy
- Redken
- Davines
- Wella Professionals
Also consider POS systems like Square or Fresha to manage product sales and appointments.
10. Create Your Salon’s Brand and Online Presence
People buy from brands they trust. Your brand image should reflect your salon’s vibe, audience, and promise.
Branding Checklist:
- Memorable name
- Professional logo
- Brand colors and fonts
- Tagline or mission (e.g., “Confidence Starts at the Roots”)
Online Must-Haves:
- Google Business Profile
- Instagram and TikTok profiles with client photos
- Booking website (via Squarespace, Wix, or Fresha)
Tip: Share transformation videos and client testimonials. They attract new customers fast.
11. Market Your Salon: Get Clients Through the Door
Smart Marketing Ideas:
- Offer grand opening deals or a free trim with a full cut
- Join local business networks
- Give referral discounts to loyal customers
- Host a launch party or pop-up with local influencers
- List your business on Yelp, Google Maps, and StyleSeat
Pro Tip: SMS reminders and appointment booking apps increase retention and reduce no-shows.
12. Keep It Legal and Financially Sound
Financial Tips:
- Separate business and personal bank accounts
- Track every expense with tools like QuickBooks or Wave
- Save 20–30% of earnings for taxes
- Set up a budget for re-investment
Legal Tips:
- Get contracts for employees/booth renters
- Stay compliant with health codes and labor laws
- Renew licenses yearly or as required
13. Monitor Growth and Evolve
Opening your salon is just the beginning. To grow:
- Ask for client feedback often
- Offer loyalty programs or memberships
- Stay up to date with trends (e.g., gender-neutral pricing, clean beauty)
- Scale with retail sales or online product stores
Final Thoughts: You’re Not Just Opening a Salon, You’re Building a Brand
Opening a hair salon is a bold, creative, and fulfilling journey. Yes, there are startup costs, licenses, and a lot of late nights—but there’s also the reward of being your own boss, changing lives with your talent, and building something people love.
With the right planning, marketing, and community support, your dream salon can absolutely succeed in 2025 and beyond.
