How to start a beauty salon business

Ever walked into a salon and thought, ‘I could do this... and I could do it better’? Yeah? Well, you’re not alone. Right now, in the US, there are over 1.3 million hair and nail salons. That number’s been climbing, up 1.4% since last year. Translation? This industry isn’t slowing down, and if you’ve been dreaming of running your own beauty salon (or maybe a hair salon), the time to start is now.

However, opening a salon isn’t just about loving hair, nails or makeup. It’s a business. A real, complicated, ‘oh wow, I need licenses and a solid business plan’ kind of business. And a successful salon business needs a strong strategy. It’s about branding. It’s about making people walk in for a treatment and leave feeling like a celebrity.

And that? That takes more than talent. That takes a plan. So today, we’re breaking it down and giving you the real, the raw, the ‘this is what it actually takes’ blueprint to launching a salon that doesn’t just survive but thrives. Anyone can open a salon. But building one that turns heads? That’s a whole different game. Let’s get into it.

Opening a salon checklist

20.4% of businesses don’t even make it past their first year. That’s straight from the U.S. Bureau of Labor Statistics. But don’t let that scare you. Because failure isn’t about the industry, it’s about preparation. The difference between the salons that crash and burn and the ones that thrive is a solid plan. Whether you’re just sketching ideas on a napkin or already picking out chairs for your salon floor, this checklist is your survival guide. Here’s what you’ll need:

Define a solid beauty salon business plan

We know, we know. You’re here because you love beauty, not spreadsheets. But listen, a killer business plan is like a killer haircut. Without structure, without a clear vision, it’s just a mess. And trust us, we’ve seen what happens when salons try to wing it. Spoiler alert: it doesn’t end well.

You might be the most talented stylist in town, but if you don’t have a roadmap, you’re flying blind. And in this industry, that’s dangerous. Because whether you’re funding your salon yourself or asking a bank to back your dream with a small business grant or loan, they all want the same thing - proof that you’ve thought this through.

So, what goes into this business plan? Let’s break it down.

What’s inside your business plan?

• Executive summary: This is your salon’s elevator pitch. The first impression. The moment you sell your vision in a way that makes people think, ‘Wow, I want to be part of this.’ What’s your salon’s name? Where’s your salon location? What kind of experience are you offering?

• Market analysis: Who’s your competition? Who’s your dream client? Are you catering to busy moms who need a quick, flawless blowout? Or are you bringing high-fashion hair to a luxury crowd willing to drop serious cash for exclusivity? Know your audience by doing some thorough market research, or you’ll be marketing to no one.

• Salon services Offered: What’s your specialty? Hair? Skin? Maybe you’re offering the best color correction in town. Whatever it is, own it. Make it clear what sets you apart in the salon industry.

• Marketing strategy: Social media, a client loyalty program, word of mouth, influencer collabs. How are you getting people to talk about you? In this industry, visibility is everything. If no one knows you exist, you won’t exist for long.

• Operational plan: This section covers the day-to-day operations of your salon space. Think about staffing, salon hours, and the salon management software, scheduling software and payment processor you’ll use for scheduling appointments and managing finances efficiently!

• Financial projections: Time to get real about those numbers. Include your startup costs, fixed expenses, and revenue forecast. This helps you understand when you’ll break even and start turning a profit. Just as importantly, your projections will allow you to keep testing whether the assumptions you made at the start were realistic, or whether you need to adjust your expectations upwards or downwards.

Look, the reality is simple: salons don’t fail because of bad haircuts. They fail because of bad planning. But that won’t be you. Because now, you’ve got the blueprint. Now, you’ve got a real plan.

TIP: Check out some of the other salon owner responsibilities you’ll have once you open your doors!

Register your business trademark

Now it's time to make your business official and get a federal tax id number. It all starts with the IRS. To get your Employee Identification Number (EIN), you’ll need to fill out a quick application. It’s quick, it’s easy, and it’s the number you’ll use for taxes, payroll, and basically anything that proves you’re a legit business. No EIN? No business. Simple as that.

While you're at it, trademark your salon’s name. Seriously. Most salons don't and it means you'll lose authenticity. Think about it. You spent hours, maybe days, coming up with the perfect name, why leave it unprotected? If you don’t claim it, someone else can. And, finding out another salon stole your name after starting a beauty salon and building an impressive brand? That’s a nightmare you don’t want.

Find the ideal location for your customers

Ready to find the “it” spot for your own salon that’ll have clients flocking faster than a fresh blowout on a Saturday morning? Let’s talk about how to secure the perfect location!

First up as a new salon owner you've got to think about your target market. Are you all about snazzy cuts for busy professionals who need to look fab on their coffee runs, or is your vibe more about indulgent pampering for the self-care warriors? Pinpointing who you want to attract will help narrow down the areas that match your brand. For trendy urbanites, a spot near chic boutiques and bustling cafes is golden. If you’re catering to families, look for locations close to schools or playgrounds – parents love convenient beauty options!

What about foot traffic? You want a hotspot where people can’t help but notice your salon. Think shopping districts, farmer’s markets, or community events, places where the crowd gathers and could be tempted by your glowing salon sign.

Keep an eye on the local competition! A little friendly rivalry can be good, but you don’t want to be drowning in a sea of similar beauty salons. Scope out the area and look for gaps that you can fill with your unique offerings.

Finally, the neighborhood vibe is key! Your salon should reflect its surroundings while also standing out. Whether you’re going for a glam and modern feel or a cozy, welcoming space, the right location will set the perfect tone for your beauty oasis.

Equip your salon with the essentials

The furniture should reflect your style, whether it’s modern glam or cozy charm. You want clients to sink into those plush styling chairs and feel like they’re in for a treat. Here's some tips for when you order salon equipment.

Investing in high-quality hair dryers and styling tools isn’t just a luxury; it’s essential for delivering those stunning looks. Picture yourself wielding a sleek flat iron that glides through hair like butter, leaving your clients feeling fabulous and ready to hit the town. Plus, if your wash stations aren’t as comfy as a cloud, you might find clients squirming instead of enjoying their shampoo.

Now, what about those must-have beauty products? Stocking your shelves with the latest and greatest will not only elevate your services but also entice clients to buy their favorites to take home. When they see that shiny new hair serum that promises to transform their locks, trust me, they’ll be reaching for their wallets faster than you can say “add to cart!”

Describe clearly your services and products

Whether you’re all about those stunning haircuts, creative color transformations, makeup transformations, or trendy styling techniques, you want each service your beauty business offers to sparkle with personality.

For instance, instead of just saying “women’s haircut,” try something like, “Snip, snip! Our expert stylists will help you find the cut that flatters your face shape and brings out your inner goddess. Say goodbye to bad hair days!”

Next up is your treatment menu. Maybe you offer rejuvenating deep conditioning treatments or smoothing keratin treatments that make hair feel like silk. Use enticing language that lets clients envision their hair looking and feeling fabulous, like “Transform your look with our deep conditioning treatment that hydrates and revives tired hair, leaving you with a radiant shine that’ll turn heads!”

Hire the right amount of team members 

Ready to assemble your dream team? Your wage roll will be one of the biggest costs, so your business plan should set out who you’ll be recruiting, when, how much they’ll cost and what value they’ll bring to your salon. Because the right staff can make or break your salon, and you want a crew that’s as fabulous as your services!

Here’s a quick breakdown of what you might need:

• Hair stylist / hair stylists

• Beauticians

• Receptionist

• Assistants

• Nail technicians & estheticians

• A marketing and branding guru who specializes in the hair and beauty industry

For payroll, you’ve got three options: do you want to tackle payroll yourself, use payroll software to make life easier or pay to outsource to another company? If you love crunching numbers and keeping everything organized, handling it in-house might work for you. But if you’d rather focus on your salon’s day-to-day operations, consider investing in payroll software. It can save you time and headaches by automating everything from tax calculations to direct deposits.

Create a marketing plan 

A solid marketing strategy holds everything together and makes your salon shine. Here's what you need to do:

• Define your brand identity: Are you all about luxury and pampering, or do you embrace a trendy, edgy vibe? Your brand identity will guide everything from your salon's decor to your marketing materials. So, slap on some color and let your personality shine!

• Build your online presence: In 2024, just having a brick and mortar location isn't enough to make your salon the latest hot spot. Create a sleek site that showcases your services, team, and pricing. Don’t forget to sprinkle in some stunning before-and-after photos! And while you’re at it, set up profiles on popular social media platforms like Instagram, TikTok, and Facebook.

• Content is queen: Start a blog or create eye-catching posts sharing beauty tips, trends, and salon news. Whether it’s a “How to Choose the Right Hair Color” guide or “Must-Have Products for Gorgeous Locks,” valuable content positions you as a beauty authority.

• Use email marketing: Regular newsletters are a fantastic way to keep clients informed about promotions, new services, or salon events. Throw in some exclusive offers just for your subscribers to keep them excited!

• Foster local partnerships: Collaborate with local businesses, such as boutiques, gyms, or spas, for cross-promotions. Think about hosting joint events or offering referral discounts. It's all about building a beauty-loving community around your salon!

• Run promotions and contests: Everyone loves a good deal! Create special promotions, seasonal offers, or contests to engage your clients. A “Refer a Friend” discount or a giveaway for a free service can generate buzz and attract new clients.