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5 things to consider before starting a beauty salon business

Updated on June 29, 2013

Many hairdressers often dream of owning a successful beauty salon business. And why not? The beauty salon industry is one of fastest growing sectors of the American and European economy. Moreover, if you get a few things right, you can turn your beauty salon into a financially rewarding business.

Are you entrepreneurial?

One of the key skills required to start any business is perseverance, i.e. the act of being persistent in efforts. The growth of any new business venture is usually slow and most entrepreneurs don’t earn profit for the first year or two.

Starting a beauty salon business costs a lot of money. So before you even think of starting your own salon, I highly recommend you do a SWOT analysis and see if you have the entrepreneurial skills to achieve the success and money you desire.

Making people look & feel great is awesome!

The beauty salon industry is a unique sector which offers creativity and satisfaction at the same time. As a hairdresser or salon owner, you want to have fun while generating revenue.

Imagine how you will feel when your clients regularly compliment you for making them look and feel fabulous? Not only will they be loyal to you but they will skyrocket your business growth by evangelizing your business amongst their network.

Seriously, things can be this simpler if you consider these 5 things before starting a beauty salon business.

1. Calculate startup costs

The amount of capital required to start a beauty salon depends on several factors such as salon space, design, rent and utility deposits, equipments and hairdressing scissors, licensing costs, hiring personnel, initial advertising and marketing costs, and more.

2. Decide between beauty and hairdressing services

Before opening your salon, decide whether you’re going to offer beauty services (makeup, skin-care, facials, massage, spa services) or hairdressing services (hairstyling, haircutting, hair treatments).

3. Hire Hard, Manage Easy

Hiring the right personnel takes time. Don’t rush to appoint your salon staff because if they are a misfit for your business, neither would they be happy at workplace nor would they take that extra step to WOW your customers.

4. Insurance and Licenses are important

While every state may have different laws for operating a beauty salon, but there are a few things that you must get right in order to avoid fines.

Firstly, make sure you are hiring only licensed salon personnel. Contacting your local Division of Occupational and Professional Licensing (DOPL) may be a good idea.

While getting insurance for your salon is a wise move, so is getting it inspected by the health department. Keep your salon clean and follow all guidelines laid out by your state to ensure safety of yourself, your staff, your customers and the environment.

5. Choose the right location

Choosing the right location is critical to the success of your beauty salon business. Get into a high-traffic area or locations where people visit often. Make sure there is ample parking space for your customers; otherwise they won’t make an effort to stop-by your salon.


Any business operates because of its customers. If you WOW your customers regularly, you can gain their trust, so that they keep returning regularly.

Before starting your beauty salon business, follow the 5 things discussed earlier and within a year you can earn a good business reputation for your salon and you can be a proud owner of a financially rewarding business.


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