Owning a salon sounds exciting. You get to style hair, transform looks, and make people feel amazing. Think of a stylish space, happy clients, and a business that grows daily. But before you get there, there’s one big question.
How much does it actually cost to open a salon?
Many new salon owners rush in without planning their budget. That’s a mistake. A salon can be a great business, but only if you prepare for the costs. Rent, equipment, staff, products, marketing. It all adds up fast.
If you do it right, your salon will earn steady profits. If you do it wrong, you could run out of money before you open your doors, and no one wants that.
So, how much money do you really need? Let’s break it all down.
1. Securing the right space
Rent and lease agreements will eat up a huge chunk of your budget. Location matters, and so does the size of your space.
- A small salon in a low-traffic area might cost $1,500 to $3,000 per month.
- A high-end salon in a prime location? That’s $5,000 to $10,000+ per month.
- Some landlords require 6 months‘ rent upfront, so be ready for a hefty down payment.
Buying a space instead of renting? That’s a different ballgame. Depending on the area, commercial properties can range from $100,000 to $500,000. Always choose a location with good foot traffic, but avoid areas where competition is too fierce.
2. Salon equipment
A salon without the right tools is like a kitchen without a stove. You’ll need chairs, mirrors, shampoo stations, styling tools, and more.
- Styling chairs: $200 to $1,000 each.
- Shampoo stations: $500 to $2,500.
- Hairdryers & styling tools: $ 1,500+.
- Reception desk & waiting area furniture: $1,000 to $5,000.
- Washbasins, carts, and mirrors: $3,000 to $10,000 total.
The total estimated cost is anywhere from $15,000 to $50,000, depending on the size and style of your salon.
3. Licensing, permits & insurance
Skipping legal paperwork is not an option. You need the right permits to operate legally.
- Business license: $50 to $500.
- Cosmetology license: varies by state, usually $100 to $500.
- Health & safety permits: $100 to $300.
- Liability insurance: $1,000 to $3,000 per year.
If you’re offering additional services like nail care or massages, you might need extra permits.
4. Hiring a team
A one-person salon is doable, but most salons need a team: stylists, receptionists, and assistants. It all adds to the expenses.
- Hairstylists: $30,000 to $50,000 per year (each).
- Receptionist: $25,000+ per year.
- Assistants: $20,000+ per year.
Some salons pay hourly wages, while others use commission-based pay(usually 40-60% of each service).
5. Inventory & products
You’ll need to stock up on shampoos, conditioners, dyes, styling products, and retail items.
- Basic hair products: $2,000 to $5,000 to start.
- Hair color & chemicals: $3,000 to $10,000+.
- Retail Inventory: $5,000+.
Product costs can get out of hand if you don’t track inventory carefully.
6. Marketing & branding
A beautiful salon means nothing if no one knows about it. Marketing is a must.
- Logo & branding: $500 to $2,000.
- Website & online booking: $1,000 to $5,000.
- Social media ads: $500 to $2,000 per month.
- Print flyers & local promotions: $500+.
Word of mouth is powerful, but online marketing is what brings in new clients fast.
7. Technology & software
A good salon management system helps with appointments, payments, and customer records.
- Salon management software: $50 to $300 per month.
- POS (Point of Sale) system: $1,000 to $3,000.
- Website booking integration: $500+.
8. Utilities & miscellaneous expenses
Salons use a lot of electricity and water. These costs can sneak up on you.
- Electricity: $500 to $2,000 per month.
- Water: $200 to $1,000 per month.
- Internet & phone: $100 to $300 per month.
- Cleaning services: $300 to $1,000 per month.
How much do you need in total?
Here’s a rough estimate:
| Expense Category | Estimated Cost |
| Rent & lease | $5,000-$60,000+ |
| Equipment & furniture | $15,000-$50,000 |
| License & permits | $500-$3,000 |
| Staff salaries | $50,000-$200,000+ |
| Inventory & products | $5,000-$20,000 |
| Marketing | $2,000-$10,000 |
| Software & technology | $1,500-$10,000 |
| Utilities & miscellaneous | $10,000-$30,000(first year) |
| Total startup costs | $50,000- $300,000+ |
Small salons can start at $50,000 to $100,000, while high-end salons may require $250,000+ to launch.
Is it worth it?
A salon can be a profitable, fun, and rewarding business. But success depends on planning and budgeting.
- Know your expenses. Don’t start without a plan.
- Invest wisely. Quality matters.
- Market smartly. The more people know about your salon, the faster it grows.
Opening a salon is not just about styling hair. It’s a business. And like any business, those who prepare will succeed. The big question is. Are you ready to leap?