How to Start a Hair Salon Business

How to Start a Hair Salon Business

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Hair salons brought in more than $46 billion in revenue in 2018. And the market is still growing, making it a perfect opportunity for beauty-focused entrepreneurs. In fact, the industry as a whole is mainly made up of smaller businesses, rather than huge, nationwide competitors.

How to Start a Hair Salon

How to Start a Hair Salon Business

If you’re interested in starting your own hair salon from the ground up, here are some of the essential steps you’ll need to consider.

Gain Industry Experience

Before breaking into the world of entrepreneurship, it helps to have some level of experience in the industry. You can potentially get started just after attending a well regarded cosmetology school. But it can be beneficial to get your feet wet by working at another salon first.

This can help you see how the business side works on a daily basis. It may also give you valuable industry connections or even a business mentor. If you don’t have a business mentor before jumping into the business world, you might consider hiring a consultant or connecting with industry groups to give you some of those helpful insights and resources.

Create a Business Plan

Before starting any type of business, you need to have a plan in place for how you’re going to earn money, what type of customers you’re trying to attract, how you’ll manage your finances, and day-to-day operations.

There are plenty of resources available to help you make these important decisions that will shape your business. For example the Professional Beauty Association offers their members access to business blueprints that can be customized.

PBA Brand Manager Erin Walter said in an email interview with Small Business Trends, “Each business will vary depending on their format, size, and goals. It’s important to choose the right plans for your individual business needs.”

How to Start a Hair Salon Business

Evaluate and Choose Salon Service

After you have a solid business plan, it’s time to evaluate and choose the specific services your salon will offer. This is a crucial step that defines what your salon is all about.

Consider offering a range of services such as haircuts, coloring, styling, and perhaps additional beauty treatments like nail services or facials, depending on your expertise and market demand. Your service menu should align with the preferences and expectations of your target customer base.

Also, consider the logistics and feasibility of these services based on your location, space, and resources available. A well-thought-out service menu can set the tone for your salon and help it stand out in the competitive market.

Set Your Budget

When you have an idea of what type of salon you want to start, you’ll need to get set with your finances. Hair salon expenses can vary widely depending on your size and location.

For example, a home based salon may only cost a few thousand dollars, but a large salon in a desirable location may cost hundreds of thousands. If you want to open a salon with no money, you’ll need to obtain some financing to at least cover your supplies.

Determine Your Target Customers

Many of your business decisions will depend on what type of customers you plan on serving. It’s not enough to say that you want a general hair salon. Research the market in your area and consider offering services to an underserved group.

For example, your area may have plenty of options for trendy or upscale customers, but not as many affordable options for those who just want basic hair services at a convenient location. So you could potentially thrive by starting a salon that caters to busy moms or working professionals.

Find a Location

If you want to start small, you may start by providing hair services out of your home. However, this type of business isn’t very scalable and comes with some risks. For those opening an official salon with a dedicated space, find a storefront that is centrally located and easy for your target customers to access.

If you’re targeting an affluent clientele, then your location should be in a downtown area or upscale shopping district. If you plan on working with young customers, find a trendy or up-and-coming neighborhood.

Obtain Local Permits

Depending on where you choose to set up shop, you’ll need to obtain a business permit, building permit and various other legal documents. Check with your local government or consult with a business attorney in your area if you’re unsure about the exact requirements.

Stock Your Inventory

You need more than just a location to run your salon business. At the very least, you’ll need chairs, hair tools, washing stations, and styling products. However, many salons also stock some inventory that customers can purchase to recreate their looks at home.

Connect with brands that you love and that will appeal to your target customers to offer their products at your location.

Invest in Technology and Salon Software

In today’s digital age, investing in technology and salon-specific software is essential for efficient management. After stocking up your inventory, look into salon management software systems that can handle appointment scheduling, customer relationship management, inventory tracking, and even sales reporting.

This technology not only streamlines your operations but also enhances the customer experience through seamless bookings and personalized service. Additionally, consider leveraging social media and a user-friendly website for online presence and marketing.

Embracing technology will not only simplify day-to-day operations but also position your salon as a modern, customer-centric business.

How to Start a Hair Salon Business

Hire a Team

Many salons have more than one stylist on hand to serve a variety of customers. This isn’t a requirement, but it’s often helpful to improve profitability, especially if you have a dedicated retail space. Keep your target customers in mind through the hiring practices.

Your stylists should not only have the talent to offer your desired hair services, but they should also be personable and friendly so they can converse with your clientele throughout the experience.

Develop Your Marketing Plan

You should start marketing your new salon before even opening, so you can build some buzz for your initial launch. Start taking appointments on your website shortly beforehand, unless you intend to work mainly with walk-ins. Marketing templates for hair salons to get you started are helpful too.

You could also invest in some local online ads or alert your local media outlets about your new business. A launch event or some type of special promotion could help you make the opening more newsworthy. However, you should also create an ongoing marketing strategy for once your salon is already up and running.

Establish a Strong Brand Identity

Once you’ve developed your initial marketing plan, the next step is to establish a strong brand identity. This encompasses everything from your salon’s name and logo to the interior design and the tone of your communications.

Your brand should reflect the unique personality of your salon and resonate with your target audience. It’s not just about aesthetics; it’s about creating a memorable experience that clients associate with your salon.

This might involve choosing a particular decor style, uniform for your staff, or even the music played in the salon. A strong, consistent brand identity helps in building customer loyalty and differentiating your salon in a crowded marketplace.

Set Aside Time to Run Your Business

Meg King, consultant for Empowering You Consulting, a firm focused on the salon and spa industry, said in an email to Small Business Trends, “When it comes to running a business it’s very important to have dedicated time to work on your business vs in it.

So many owners are busy being busy. When you take the time to understand your numbers, set budgets train your team you can then set goals to grow your team and create higher profits! It’s working smarter vs harder!”

Ongoing Education and Trends Adaptation

The final key to a successful hair salon is staying abreast of industry trends and continuously educating yourself and your team. The beauty industry is dynamic, with new styles, techniques, and products emerging regularly.

Encourage and facilitate ongoing training for your staff to keep them updated and skilled in the latest trends. This might include attending workshops, participating in webinars, or bringing in experts for in-house training.

Regularly updating your service offerings based on these trends can help keep your salon relevant and appealing to clients. Embracing change and education is crucial for long-term success in the ever-evolving world of beauty and hairstyling.

Promoting Your Hair Salon: Building a Strong Brand and Attracting Clients

How to Start a Hair Salon Business

In the competitive landscape of the hair salon industry, effective marketing and brand-building play a crucial role in attracting clients and fostering a loyal customer base. Here are some key strategies to consider when promoting your hair salon:

  • Create a Memorable Brand Identity: Develop a distinctive brand logo, color scheme, and tagline that reflects the personality and style of your salon. Consistency in branding across all marketing channels will help your salon stand out and become easily recognizable to potential customers.
  • Build an Online Presence: In today’s digital age, a strong online presence is essential. Create a professional website that showcases your salon’s services, team, and pricing. Optimize your website for local SEO to improve its visibility in search engine results. Engage with your audience on social media platforms like Facebook, Instagram, and Pinterest, sharing photos of your work and customer testimonials.
  • Offer Special Promotions and Discounts: Encourage new customers to try your salon by offering special introductory promotions or discounts on specific services. Consider loyalty programs that reward repeat customers with exclusive deals or referral incentives for bringing in new clients.
  • Showcase Your Work: Use visual platforms like Instagram and Pinterest to showcase your salon’s portfolio. Before-and-after photos of clients’ hair transformations can be powerful marketing tools, showcasing the skills and creativity of your stylists.
  • Collaborate with Influencers and Local Businesses: Partner with local influencers or beauty bloggers who have a significant following in your area. They can help promote your salon and attract new clients through sponsored posts or collaborations. Additionally, consider cross-promotions with other local businesses, such as fashion boutiques or makeup artists, to expand your salon’s reach.
  • Host Events and Workshops: Organize events or workshops at your salon to engage with potential customers and showcase your expertise. Events like hair styling workshops, product launches, or themed styling nights can generate buzz and attract a broader audience.
  • Utilize Online Reviews and Testimonials: Positive online reviews and testimonials are powerful social proof that can influence potential customers. Encourage satisfied clients to leave reviews on platforms like Google My Business, Yelp, or Facebook. Respond to both positive and negative reviews professionally and promptly.
  • Advertise in Local Publications: Consider advertising in local newspapers, magazines, or lifestyle publications to reach a broader local audience. Advertise special promotions or seasonal offers to attract new customers.
  • Emphasize Excellent Customer Service: Ensure that every customer receives exceptional service, from the moment they book an appointment to the time they leave the salon. Happy customers are more likely to become repeat clients and refer your salon to their friends and family.
  • Analyze and Adapt: Regularly review the effectiveness of your marketing efforts and adjust your strategies based on the data. Use analytics to track website traffic, social media engagement, and customer feedback to optimize your marketing approach continually.

By implementing these marketing strategies and building a strong brand, your hair salon can position itself as a go-to destination for exceptional hairstyling services, attracting a steady stream of clients and contributing to the continued growth of your business in the thriving hair salon industry.

Create a Memorable Brand IdentityDevelop a distinctive brand logo, color scheme, and tagline that reflects your salon's style. Maintain consistency in branding across all marketing channels for easy recognition.
Build an Online PresenceCreate a professional website showcasing services, team, and pricing. Engage on social media platforms (Facebook, Instagram, Pinterest) with photos and testimonials.
Offer Special Promotions and DiscountsAttract new clients with introductory promotions or discounts on specific services. Implement loyalty programs and referral incentives for repeat customers.
Showcase Your WorkUse Instagram, Pinterest to display before-and-after photos of clients' transformations. Demonstrate the skills and creativity of your stylists through visual content.
Collaborate with Influencers and Local BusinessesPartner with local influencers or beauty bloggers for sponsored posts or collaborations. Cross-promote with other local businesses (e.g., fashion boutiques, makeup artists).


The hair salon industry continues to be a lucrative market, with revenue exceeding $46 billion in 2018 and showing continued growth. For aspiring beauty-focused entrepreneurs, this presents a perfect opportunity to start their own hair salon. However, starting a successful salon requires careful planning and strategic implementation.

Firstly, gaining industry experience is invaluable for understanding the business side and building connections. Creating a comprehensive business plan that outlines the salon’s earning potential, target customers, financial management, and day-to-day operations is crucial.

Financial planning is vital, as salon expenses can vary widely depending on size and location. Identifying the target customer base and offering services to an underserved group can set the salon apart from competitors.

Finding the right location is essential, as it impacts accessibility for target customers. Acquiring the necessary local permits and legal documents ensures the business operates smoothly within the regulations.

Stocking the salon with necessary inventory and hiring a competent and personable team is vital for offering quality services and maintaining client satisfaction.

Effective marketing and brand-building strategies, as discussed in the table, are essential for attracting clients and fostering a loyal customer base. Online presence, special promotions, showcasing work, collaborating with influencers, hosting events, and emphasizing excellent customer service can all contribute to the salon’s success.

Finally, ongoing analysis and adaptation based on data and analytics allow salon owners to optimize their marketing efforts continually and ensure long-term growth and profitability.

By following these essential steps and implementing effective marketing strategies, aspiring entrepreneurs can build a strong brand and attract a steady stream of clients, positioning their hair salon for success in the competitive industry. With dedication, business acumen, and a focus on customer satisfaction, a well-planned hair salon can flourish and thrive in the ever-growing beauty market.


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Annie Pilon Annie Pilon is a Senior Staff Writer for Small Business Trends and has been a member of the team for 12 years. Annie covers feature stories, community news and in-depth, expert-based guides. She has a bachelor’s degree from Columbia College Chicago in Journalism and Marketing Communications.

5 Reactions
  1. This type of business continues to be profitable regardless of the times. Even if the audience becomes technology oriented.

  2. theresa sunderland

    i want to open a hair salon but i dont want to do hair. I just want to be the owner and rent out chairs. Will I be able to do that with out having a hair liecense.

  3. I loved your blog and thanks for publishing this about how to start a hair salon. I am really happy to come across this exceptionally well written content. Thanks for sharing and look for more in future!! Keep doing this inspirational work and share with us.

  4. swarozgar foundation

    nice information given..

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