How To Set Up A Salon Business?

The beauty industry is an extremely lucrative sector worth over USD$56 billion yearly. According to Global Data, it is also one of the fastest-growing sectors between 2017 and 2023. 
So, if your passion is making people look good and feel pampered through various beauty services and have been dreaming of owning a salon, now might be the perfect time to do it. Hence, like any business venture, starting a salon can be overwhelming. How do you even start?
This article shares a brief guide on how to set up your salon business. 

Start With A Plan

No business, including a salon, can function properly without a sound business plan. It acts as a road map that will guide your salon business to success. 

A well-rounded business plan should detail things like:

  • Customer segments
  • Customer acquisition strategy and channels
  • Business relationships
  • Supplier plan
  • Cost structure and revenue streams

You want to do plenty of market research to ensure that there’s a demand for a salon in your area and that you’ll be able to get enough customers to sustain it. 

Understand The Cost

Cost is probably the biggest factor in establishing any business. You’ll need to finance upfront costs from your business’s insurance, property leasing for salon tools and furniture, to utility bills, thereby opening the next page of your business journey. 

You can’t set up a salon without the necessary funds. Fortunately, there are several financing options for small businesses including microloans, bank loans, or small-business loans. 

Register Your Business And Obtain The Necessary Permits

If you want to be a legit salon, you need to register your business with your local government. Doing so also allows you to receive an Employer Identification Number, which you’ll need to file taxes. 

Besides, depending on where you set up your salon business, you’ll need to get the necessary business permits and other legal documents and requirements. Check with your local government to understand how this works and ask for help to register and establish a legal business in your locality. 

Find The Right Location

The location can have a significant impact on the success of your salon business. Thus, you’ll want to find a space with plenty of footfall and passing traffic to increase your chances of attracting new customers. 

In addition, you need to consider the size of the premises, the availability of parking, and the kind of people living or passing by the area (whether they fall into your target market). You also need to know the number of salons in the area. After all, there’s no point in establishing a salon business in an area already crowded with competitors. 

Pick Your Salon Equipment

Once you’ve found the perfect place for your salon, the next thing you need to do is to fill it with the necessary furniture, equipment, tools, and decor. 

Salon equipment and tools generally take up a large portion of your funding, so you need to be careful not to overspend. To keep your costs reasonable, you want to get a few basic equipment for starters. These may include:

  • Chairs
  • Mirrors
  • Storage space for salon products
  • Necessary salon items and tools like hair curling irons and towels (depending on the type of salon you’re establishing)
  • Reception area furniture 

Find Your Team

Hiring the right staff for your salon business is critical because the quality of your staff’s work can make or break your salon’s success. 

So, ensure you create a list of what you’re looking for in an ideal candidate, including their education, skill set, personality, and attitude. When hiring an employee, follow the correct procedures from job posting to employee onboarding and boosting employee satisfaction.

Start Marketing

Once you’ve considered the above steps, it’s time to get some clients. You have several options to promote your business and find your customers. You can do traditional marketing methods such as handing out flyers about your salon business, which can be beneficial in targeting local customers that pass by your location. 

To get a wider reach, you can also opt for digital marketing. From content marketing to digital ads to social media, there are numerous ways to get the word out about your newly established salon business. Moreover, consider offering salon deals and special opening discounts to entice more customers to try out your services. 


If the idea of running your own salon has been in your mind for a while, now is the time to make it a reality. While starting any business, including a salon, is never easy, we hope you can now get started on your dream salon business with the above steps and start transforming people’s looks in no time.

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