People like to look good and are constantly seeking new ways to help improve their appearance. For this reason, hair salons remain one of the fastest growing types of business, according to Success in the beauty industry, however, depends greatly on a salons ability to provide high customer satisfaction on a consistent basis. If you think you have what it takes to be successful, starting a hair salon business can be done with moderate capital. The exact cost of start up will vary for each salon due to the size, location and nature of the business but the start up components remain the same. These components include salon space, salon equipment, supplies, personnel and marketing.

Salon Space

There are a few options available as far as a salon locations are concerned. If you are looking to start small then an in-home salon may be the right option for you. An in-home salon is the least expensive option as it would not require an extra rental payment each month, but your home must be large enough to house the salon and you must live in an area where zoning allows for this type of home business. If an in-home salon is not an option for you then you will have to rent a commercial space. Rent on a commercial space is generally figured by square foot basis of the facility with $2 being the basic starting price, as of 2010. You may also need to renovate the area used for your salon which will also add to the start-up costs of your business. Renovation cost can run anywhere from $500 to $3,000 plus. While getting the salon set up you can expect to pay six to nine months worth of rent before your business is operating at full capacity.

Salon Equipment and Supplies

The cost of salon equipment will depend on the type of services that you will be offering in your salon. Basic equipment should include:

  • styling tools
  • hair dryers
  • washing basins
  • styling chair
  • supply trolleys
  • aprons

You will also need a cash register, computer, software, desk, phones and furniture. Supplies for your salon should include such things as basic office supplies, back-bar products, retail products and cleaning supplies. Prices will vary with each individual supplier so be sure to shop around for the best possible prices. Salon equipment and supplies can cost anywhere from $2,000 to more than $30,000, as of 2010.

Salon Personnel

Depending on the size of your new salon you may need to hire additional salon personnel such as hair stylists, salon assistants and a receptionist. Your compensation model will determine how much money you need to set aside to be able to pay your employees until your new business is making a profit. Staffing costs typically take up about 10 percent of total sales, in addition to payroll taxes, health insurance and any other benefits that you offer your employees, which can take up another 7.6 percent of sales.

Salon Marketing

Marketing is the main influence that will help build your new hair salon business so you should invest as much as possible in this area. Start by creating a website for your new hair salon that informs potential clients about your products and services. Also be sure to post your business hours, directions to your salon and a cyber tour of your well-decorated new business. Promote your salon using email marketing, direct mail, yellow pages and radio or TV advertising. According to, your marketing budget should at least consist of two to five percent of your total sales. As for start-up cost, you can spend as little as $100 or as much as $5,000. This amount will vary based on your individual budget.