Salon Business: A Detailed Checklist & Guide to starting a world-class salon


Do you want to start a world-class salon business? Well, that’s a good thing to do. In fact, you are not alone. Let me tell you a secret, it’s very lucrative and risk-free.

This means that there’s always a market waiting to change a hairstyle, change nails, have a haircut, or just generally look and feel beautiful.

So, I commend you for choosing to start a salon business. I’m going to show you all you need to know about how to start one, its requirements, and a checklist to help you.

Let’s get started!

Requirements To Open a Salon

Congratulations on wanting to start your own salon business. However, there are some requirements you must meet before you can successfully start. Although some of them are the same for anyone who wants to start a small business, there are still others that are peculiar to a salon business.

Hence, below are the requirements needed to open a successful salon

1. Have a Business Plan

The first step to starting a salon business is to have a business plan. Having one helps you clearly define your intention for starting the business. Additionally, it helps you outline your goals and how you intend to achieve them.

A standard salon business account contains market analysis, revenue channel, target market, customer segmentation, targeted expenses, to name a few.

So, make sure you have studied the salon industry, done proper market research that tells you the feasibility of starting a salon business in your area. This will help you come up with a good business plan.

Or even better, you can check our list of feasible business plans written specifically for you by top-notch business managers. The best part is, you can be confident to get the desired results. Life has to be easy after all right? So click the button below to access your salon business plan.

2. Set a Budget

The next is to set a budget that you’ll stick to while starting your salon business. You want to make sure that you have enough cost to set up and run your salon business, knowing fully well that profits may not come in till six months or even a year later.

Afterward, you can visit the loan officer at a business bank to request a small business loan. Or even better invest using your personal cash.

The major thing you’d need to consider is the setting up and operating costs which include rent, insurance, inventory, training, to mention a few.

3. Choose the right location

One of the things that’d contribute to the success of your business is the location. Depending on your target audience, you would want to locate your salon business in a place that’s easily accessible to your customers.

So get the right location that serves both the affluent and the middle class. If you make it convenient for your customers to visit you, then you wouldn’t have issues retaining them since they know that they can always easily visit.

4. Hire Staff

This is undebatable. Or else you have some superman powers that can help you run a whole salon by yourself and still manage it, I suggest you hire staff.

Bear in mind that the people you bring to your salon influence the reputation of your business. So, when hiring ensure to hire people who share your business vision and are willing to work.

Also when you do hire them, take ample time to train them to ensure all the services being offered at your salon is nothing short of excellent.

5. Local permits

To fully operate in your location you need to obtain local permits from the government. So do your research and find out which regulation laws and permits you need to obtain and do so quickly.

Failure to do so may attract huge fines from the government or total shut down of your business.

These are major requirements that you’d need to open a salon business. However, they are bulky as they have some other requirements under them. The best way to sort this out is to have a checklist. We’d go over it in the next section.

Opening a Salon Checklist

While preparing to open your salon business, it’s important to include a checklist of the things you’d need to start your salon, whether big or small.

Doing so prevents you from having a lot of things to forget. Here is a sample checklist to try in no particular order.

  • Write a business plan
  • Hire staff
  • Register the business and name
  • Get insurance
  • Obtain local permits to operate
  • Get insurance
  • Get a location
  • Contact suppliers
  • Purchase salon tools for the different sections of the salon
  • Purchase salon furniture
  • Choose your legal entity
  • Train your new staff
  • Start marketing
  • Start booking

How To Start a Salon Business

It’s very commendable to want to start a salon business of your own. However, it can be very challenging if you don’t have a guide on how to start.

So, here are guidelines to help you start a successful salon business.

1. Get a Salon Business Knowledge

Before you start a salon of your own. Dedicate time to learning the ins and out of the business. Getting a degree or a certificate is just the first mini step out of the thousands of steps you’d be required to take to start a successful salon business.

Whether you’re out of school or still in school, be obsessed about learning. In fact the more you learn, the more you earn. To succeed in this business, you’ll need a combination of both theoretical knowledge and practical knowledge.

So, get a job at a salon if you can and acquire as much practical knowledge as you can. By just being there, you’d get to know how the business is managed and avoid making some common mistakes when you eventually start yours.

2 Create a vision for your salon business

Before starting a salon business, you have to take some time and ask yourself some useful questions that’d help you craft a vision for your business.

Questions like;

  • Why you really want to start a salon business?
  • What plans do you have for the business?
  • Is it just going to be a side hustle?
  • What type of clients do you want to work with?
  • Where do you see the business in three, five, ten years?
  • What will your interior design look like?
  • Will you hire staff? If yes, what will be the hiring criteria?

Questions like this and more will help you fully understand what you want to get into.

3. Decide which Salon business you want to start

Of course, you know that there are different salon business types. Whether it’s a hair salon, nail salon, barber salon, or spa, decide which salon business you want to start. Moreso, you can even decide to start a traditional salon that houses all the different types of salon businesses. It all depends on your budget.

Additionally, you can decide to run the salon from your home or mobile. That way you work at your comfort and only when your services are needed. Giving you time to take care of other personal stuff.

4. Draft a business plan

The importance of a business plan to your business cannot be overemphasized. Opening a salon is a huge project. One that requires a plan and will fail at the absence of it.

In fact, I suggest you get one already or start drafting one that suits your business. It will help you ask the right questions and take actions that lead to the growth of your business.

A typical salon business plan contains the problem, solution, revenue channel, marketing activities, competition, milestones, and lots more.

It’s not difficult. In fact, you can go through our catalog of business plans by clicking the button below. Then, you will be able to find which one suits your business. And yes, you’d get maximum results because they were written by the best and have been proven to provide results.

So, don’t waste any more time. Click the button below and get your workable salon business plan.

5. Set up a budget and financing strategy

Probably one of the scariest words to startup owners is money. So, to avoid joining the group of money frightening startup owners, you need to create a budget for your salon business and stick to it.

Ensure you have accurate market research reports that give you a good estimate of the startup and running costs you are likely to encounter in your business.

Additionally, take note of the monthly expenses you’d make like product purchases, wages, utility bills, and lots more.

Afterward, find a way to finance your salon. Or else you already have all the money you need, it’s best to outsource for investments that can help you start your salon business. You can get funding for your business by asking family and friends, or requesting business bank loans.

However, requesting bank loans require you to offer collateral and/or a business plan. Without a business plan, you cannot qualify for a bank loan. See why getting a business plan is very important?

6. Come up with a good business name

This is the most exciting part of starting a salon business. You get to come up with the name for your business. But hold on, before you start employing all the creativity you have, ask yourself these questions.

  • Does this name reflect my personality and my business?
  • Is it easy to know that it’s a hair salon?
  • Can I get an available domain name?
  • Is it memorable?

Answering these questions will help you narrow your thoughts down to the names that truly matter.

7. Register your business

Yes, you’re almost there to get your salon business up and running. Now it’s time to register your business with the state. Majorly, you’d need a tax ID as well as local permits and licenses for your salon.

In addition, you’d need to decide your business legal structure (whether a sole proprietorship, limited liability company (LLC), amongst others). Bear in mind that your choice of legal structure affects the amount of taxes you will pay.

8. Get a good location

Having a good location for our business contributes a high quota to the success of your business. Even if you have a good online presence, you still need to get a good location that is easily accessible by your target market.

Afterward, you can go ahead and design your salon just the way you want it to appear. Design the reception area and the different segments of the salon. Ensure to make it appealing and eye-catchy for your customers.

9. Stock up your store

It’s time to purchase those big salon equipment you’ve always wanted. Although Salon equipment is really expensive, you can still get some for friendly prices on Amazon. Some of the equipment you’d need are chairs, hairdryers, styling stations, a backwash unit, combs, brushes, and lots more.

Make sure you buy legitimate equipment. You don’t want to have to buy another piece of equipment in less than three months.

10. Create your salon brand identity

This means that you can create your business logo and business cards. Your logo is just as important as your business name as you would use it everywhere in promoting your brand. So, you would want to get it right.

It’s not difficult. You can use Canva to design a good logo for your business. Or even better, customize one from their logo templates for your salon business.

You can also use it to create business cards for your salon business.

11. Create a Salon Service Menu and Stick to It

A service menu is a list of all available offers by your salon and their prices. In as much as you are trying to build your client base, underpricing yourself isn’t going to help you.

Take your time to build a good service menu and stick to it. Let your customers know that you are disciplined with everything, price included.

Afterward, make it available everywhere. On your social media page, your website, in the waiting area, and at checkout. This way your customers know what to expect when coming to your salon.

12. Get a Domain name and customized email

Check if a domain name is available with your business and buy it. Set up your website and showcase your salon and its services on it.

Additionally use the best SEO practices to ensure that your website ranks on Google when salons are searched.

Also, create a customized email for your business. This helps your clients know that you are professional in all of your dealings.

13. Develop a marketing plan

Create a marketing plan and advertise your salon business. You can advertise in local newspapers, through social media ads or even by placing ads on websites. The more people are aware of your business, the more clients you will get.

Also, don’t underestimate the power of word of mouth. This can only happen when clients come and receive top-notch services with friendly treatment. So endeavor to train your new staff to be more friendly with your clients.

Is Salon A Good Investment?

The annual profit of the typical salon is $19,100. The average salon profit margin is 8.2%, which is higher than the 7.7% average for businesses as a whole and is rising year over year. Depending on how professionally the salon is run, the profit margin might range from 2% to 17%.

Is Salon a Good Business?

The average profit margin for salons is 8.2%, which is higher than the 7.7% average for all businesses. Naturally, salons with good management can make much more money than this average. The standard target is a 10% profit margin, however this might go higher depending on how well you can control your salon’s finances.

What Is the Main Business of a Salon?

A beauty salon is a business that offers a range of aesthetic procedures and services for both men and women. Numerous services, such as expert hair cutting and styling, manicures and pedicures, as well as frequently cosmetics, make-up, and makeovers, may be provided by beauty salons.

Why Salon Is a Good Business?

In general, every hair salon serves the identical needs for every customer; however, what will set each one of them apart is their ADDED VALUE. Offering services like manicures, cosmetics applications, cosmetic procedures, excellent customer service, competitive pricing, and outstanding retail goods, among other things, can add value.

What Products Sell Best in a Salon?

A conditioner, shampoo, hair treatment, and various styling treatments are popular items to sell in a hair salon. Choosing just one or two brands and sticking to their product lines is a good idea as well.

Popular treatments for women include hair coloring, manicures, and pedicures. Unsurprisingly, among women, haircuts were the most sought-after beauty service in the previous year.

Is It Hard Running a Salon?

Running a beauty salon is not the easiest business to manage, and there are many things you need to be aware of. You should arrange your supplies and place orders beforehand. The management of the team and its employees, as well as obtaining the required licenses, come next.

What Makes the Most Money in the Hair Industry?

The absolute best approach to profit in the hair market is to sell hair extensions.


Congratulations on making it this far. With these guidelines you’ve become fully equipped with everything, you need to know about starting your own salon business.

It’s a long journey no doubt but the right information makes it easier for you.

Kindly let me know what I missed in the comment section below. I’d love to hear from you on how starting your salon business has been so far.


Is salon a good business?

It would not be an overstatement to claim that the salon and spa industry is one of the most profitable business ventures in today’s times, internationally as well as in India. As per a survey conducted by the cosmetic industry, it has experienced a growth of almost 60% in the last 5 years itself.

How do salon owners make money?

In most cases, a beauty salon owner will make more money by renting space than by employing personal care professionals, provided the professionals renting the space have sufficient clientele

What makes a hair salon successful?

Being able to communicate well with clients and employees is a prime factor in the success of a salon. Communication skills needed in a salon include ironing out problems and building a good rapport with clients. Having employees who are both skilled and fit in with your business model is vital to a salon’s success.

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