How Much Does It Cost to Start a Salon Business?
Starting a salon business is an exciting and life-changing step for anyone passionate about beauty and entrepreneurship. Whether your dream is to open a hair salon, nail studio, lash bar, barbershop, makeup lounge, spa, or full-service beauty destination, proper financial planning is essential. For many aspiring salon owners, one of the biggest questions is:
How much does it cost to start a salon business?
The truth is, startup costs can vary dramatically based on location, size, services offered, and the style of business you choose to operate. On average, opening a new salon in 2025 can cost anywhere from $10,000 to over $300,000, depending on whether you choose a small salon suite, a medium-sized storefront, or a large luxury salon with custom design and high-end equipment.
This in-depth guide from cooviphair covers everything you need to know about salon startup costs โ including examples, hidden fees, budgeting strategies, and expert tips for saving money and launching successfully.
Average Cost to Start a Salon Business
Here is a general estimate of startup investment based on different types of salon business models:
| Salon Type | Estimated Startup Cost Range |
|---|---|
| Booth rental / Salon suite | $3,000โ$15,000 |
| Home-based salon | $5,000โ$25,000 |
| Small basic salon (2โ4 stations) | $25,000โ$75,000 |
| Medium full-service salon (6โ10 stations) | $75,000โ$150,000 |
| Large luxury salon (high-end design) | $150,000โ$300,000+ |
| Spa, wellness center, or laser clinic | $250,000โ$750,000+ |
| Franchise salon | $200,000โ$500,000+ |
These numbers depend on things like whether you buy or lease equipment, renovate from scratch, or inherit an already built-out space.
Major Startup Expenses to Budget For
To provide an accurate understanding of what it costs to open a salon, letโs break down expenses category by category.
1. Business Licensing, Legal Fees & Insurance
Estimated Cost:ย $300โ$3,000
Every salon must legally operate with proper registration and insurance. Costs include:
Business registration (LLC, S-Corp, etc.)
Salon operating license
Cosmetology / service compliance
Fire & health inspections
Permit fees
Insurance (liability, property, workers comp)
Insurance is especially important to protect against client injury, property loss, or legal claims.
2. Building Lease or Salon Space Purchase
Estimated Cost:ย $2,000โ$15,000/month depending on city
Location dramatically affects startup costs. High-traffic areas cost more but attract more clients.
Common Location Costs
| Expense | Example Cost |
|---|---|
| Security deposit | 1โ3 months rent |
| Utility setup | $300โ$2,000 |
| Signage permit | $100โ$5,000 |
| Property taxes | Varies |
Rent is typically the largest ongoing monthly cost โ choose wisely based on your business plan.
3. Renovation & Salon Build-Out
Estimated Cost:ย $5,000โ$100,000+
The interior layout determines workflow, atmosphere and customer experience.
What renovations may include:
Plumbing for shampoo bowls
Electrical work for styling stations & lighting
Flooring installation
Painting & wall finishes
Reception area setup
Lounge & waiting area furniture
Sound system & dรฉcor
A move-in-ready former salon space can save huge renovation costs.
4. Salon Furniture & Equipment
Estimated Cost:ย $5,000โ$75,000 depending on quantity & quality
| Item | Cost Range |
|---|---|
| Styling chairs | $200โ$1,200 each |
| Shampoo units | $500โ$3,000 |
| Salon stations & mirrors | $300โ$2,000 |
| Reception desk & waiting seating | $300โ$5,000 |
| Hair dryers & steamers | $200โ$2,500 |
| Storage and cabinetry | $300โ$4,000 |
Used equipment can help lower costs if purchased wisely.
5. Tools & Products
Estimated Cost:ย $3,000โ$20,000
Includes:
Scissors, clippers, combs and brushes
Shampoo & conditioner inventory
Color, developer, bowls, foils
Retail product stock for selling
Towels, capes, gloves, laundry baskets
Cleaning & disinfectant supplies
Mirrors & tool sterilizers
Retail inventory can represent 10โ25% of income, so quality matters.
6. Technology & Software
Estimated Cost:ย $200โ$5,000+
Great technology improves booking efficiency and customer satisfaction.
| Software & Tools | Cost |
|---|---|
| Booking & POS system | $20โ$150/month |
| Website & branding | $300โ$5,000 |
| Wi-Fi setup | $50โ$150/month |
| Phones, tablets, computers | $100โ$2,000 |
| Security cameras | $150โ$2,000 |
Automated systems reduce no-shows and improve client experience.
7. Staffing & Payroll
Estimated Cost:ย $2,000โ$30,000/month depending on team size
| Position | Typical Compensation |
|---|---|
| Stylists | Commission / rental |
| Nail / lash / brow techs | Commission / rental |
| Barber | Commission / rental |
| Assistants | Hourly |
| Receptionist | Hourly |
| Salon manager | Salary |
Payroll is often a salonโs highest ongoing expense.
8. Marketing, Branding & Grand Opening
Estimated Cost:ย $500โ$15,000
Includes:
Launch event promotions
Printed materials & signage
Photography & videography
Website setup & SEO
Social media ads & influencers
First-week gift bags & giveaways
Marketing is crucial โ even a gorgeous salon fails without visibility.
9. Emergency Reserve / Operating Cash
Suggested minimum:ย 3โ6 months of expenses
Many salons close early due to lack of cash flow planning.
Unexpected expenses always come โ be ready.
Sample Startup Cost Budget Example (Medium-Size Salon)
| Category | Cost |
|---|---|
| Rent & deposits | $8,000 |
| Renovation & build-out | $20,000 |
| Furniture & equipment | $25,000 |
| Tools & products | $10,000 |
| Licensing & legal | $2,000 |
| Software & tech | $3,000 |
| Marketing & launch | $5,000 |
| Operating reserve | $10,000 |
| TOTAL | $83,000 |
Factors That Increase or Reduce Salon Costs
Costs will be higher if:
Located in a major city
Luxury branding and interior design
Large team
Full spa services
Costs will be lower if:
You start in a suite instead of a storefront
You take over an existing salon
Buy used or refurbished equipment
Begin solo and hire later
Narrow your initial service menu
Ways to Save Money When Opening a Salon
Choose lightweight renovations rather than structural
Purchase second-hand chairs, stations & shampoo bowls
Focus spending on revenue-generating tools
Barter services with photographers & designers
Use organic marketing (TikTok/Instagram/Reels)
Consider renting chairs instead of hiring employees
Success isnโt about spending the most โ itโs about spending smart.
How Long Does It Take to Become Profitable?
Average profitability timeline:
6โ18 months depending on:
Location
Pricing strategy
Client retention
Marketing consistency
Service specialty (extensions, blonding, smoothing)
Salons that offer premium services like extensions reach profitability faster.
Final Thoughts
So, how much does it cost to start a salon business?
Anywhere fromย $10,000 to $300,000+, based on size, location, equipment, and branding decisions.
While opening a salon requires careful financial planning, the potential rewards โ creative freedom, financial independence, building a brand, and changing lives through beauty โ are priceless. With the right preparation and mindset, launching a salon can be one of the most profitable and fulfilling business ventures in the beauty world.
Ready to Open Your Dream Salon?
If you plan to specialize in premium hair services such as hair extensions, choosing a reliable hair supplier is key. High-quality products help elevate your reputation and maximize profit.
Cooviphair provides:
Hand-tied wefts, butterfly wefts & volume wefts
Tape-ins, K-tips, I-tips & machine wefts
HD wigs & closures
Wholesale & Private label packaging
Partner & educator programs
Premium quality. Premium results. Premium profit.
Youโre one decision away from the beauty business youโve always dreamed of. Plan wisely. Build boldly. Succeed confidently
