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Business plan for salons

How to own a beauty salon

The fast-scaling beauty and fashion industries have made people pay attention to their looks. Everyone tries to look attractive. Being better than average is very important for both women and men. And it happens so, not only because we are too selfish. On the contrary, to stand out, you have to differ. And you know how hard it can be.

Beauty salons are the best helpers in this constant beauty rush. They are famous among females, males, and even kids and pets. The 21st century has given us so many various choices. Therefore, the main task of a client is to find the best option for himself.

Today, we will look at different types of beauty studios, learn how to write a well-thought-out business plan and see how to stand out and get your first loyal customers.

This article will be helpful for beginners and skillful beauty salon owners. So let's start our journey.

90% of any business is a well-made business plan. Writing a detailed business plan will save you from numerous problems and expenses. Also, mind the connection to a proper salon booking software after launching the salon – it can help to attract customers.

The type depends on the service a beauty studio provides. However, there is a typology by class, such as economy beauty studio, business beauty salon, and lux or premium salon.

We have written several articles on choosing the proper name for your business. You can read one of them about naming a beauty salon.

How to start salon business

Types and classes of beauty salons

There are so many beauty studios, and we cannot even count all the types. Talking about classification, it is a bit easier.

Three main classes of beauty salons:

  • Economy class. Affordable prices, simple services, and minor premises.

  • Business-class. The prices are medium, the services tend to be more varied, and the premises have to be spacious.

  • Premium or Lux. The most expensive beauty salon. The prices here can go up to eternity. Usually, clients are ready to pay for the brand, so even very overpriced but famous salons will work well.

The varieties of beauty studios are also numerous. The classification depends on the services, for example, cosmetology, depilation, massage, manicure business, hairstyles, SPA, etc.

We will not waste your time and talk about every single service and type. Instead, let's see how the system works on several examples. Today, we will take a look at a brow bar, barbershop, and hair salon.

So fine. It is high time to start!

  • Brow bars. This type of beauty studio is relatively new. Brow bars are specialized beauty salons where clients can get any lash & brow treatment, and sometimes massage or facials. Usually, there is no need to hire a big team. For an average brow bar, one or two employees will be outstanding.

  • Barbershops. Men created these beauty salons and for males. Barbers are usually skillful male hairdressers ready to give clients a nice haircut and a dose of manly talk. However, nowadays, women are also allowed to be barbers.

    In a typical barbershop, a man can get a stylish haircut, various hair treatments, massages, and sometimes a manicure with a pedicure. Barbershops are among the most popular beauty salon businesses in America. However, the rest of the world has also caught this prosperous business idea, so barbers tend to work worldwide.

  • The hair salon is a classic beauty studio type. Salons masters create a lovely hairstyle, professional hair treatment, hair dyeing, etc. Nowadays, they are also famous for makeup and other related services.

    As usual, once an aspiring entrepreneur wants to open a beauty salon, he starts with a launching a hair studio. This business isn't too complicated to open, profitable, and prosperous. Then sure, when you add more services, you can grow into a multifunctional beauty salon.

How to write a good beauty salon business plan

Starting a beauty studio is a prosperous idea, but only when you know how to stand out from the competition.

The first rule of opening a lovely beauty salon and avoiding issues is to plan the business very well. Yes, it can seem that you can correct a business plan and add there all you need. But there is no point in adding anything if you've started the startup in the wrong way.

Steps on opening a beauty salon business:

  1. Register the company officially.

  2. Decide on your budget.

  3. Choose premises.

  4. Get equipment and consumables.

  5. Hire a professional team.

  6. Promote the business.

  7. Connect CRM software for salons and widget for online booking.

7 tips on opening beauty studio

What documents do I need to start a beauty salon

You can start the beauty salon business under LCC or sole proprietorship status. Although LCC works well if you create a company with a partner, the sole proprietorship is suitable for individual ownership.

To open a beauty studio, you have to cope with:

  • Premises lease agreement

  • Opening a bank account

  • Sanitary conclusion on the premises

  • Permission of the State Fire Inspection

  • Permission from the local administration to open

  • Employment documents

  • Certificates for consumable cosmetic materials

You will also be required to get the following papers:

  • Medical certificates – sanitary books for personnel

  • MSW export contract

  • Laundry contract

  • Inventory sterilization log

  • Agreement with a medical institution on the passage of permanent examinations

  • Documents about the health of the ventilation system

A license is required only for cosmetic services and procedures close to medical ones, such as hair removal, tattooing, piercing.

Papers for salon opening

How much money do I need to open a beauty salon

The budget depends on the area and the class of the salon. Sure, the expenses can be minimized for small cities, while they can be doubled for megalopolises.

The average expenses for starting a beauty salon are:

  • Preparing documentation: $750-1000.

  • Renovation of the premises: $2500-3500.

  • Purchasing consumables: $1000-2000.

  • Buying tools: $1500-2500.

  • Premises rent: $2500-3500.

  • Salary for staff: $3000-4000.

  • Marketing and ads: $1500-2500.

  • Other consumables: $500.

In general, you will need about $25 000-35 000 to start a beauty salon. We have calculated the budget for the economy salon. In case you would like to open a lux or a business salon, the expenses will differ.

Regular expenses:

  • Rent: $2500-3500.

  • Utilities: $500-750.

  • Consumables: $500-1000.

  • Salaries: $5000-10000.

  • Taxes: $1500-2000.

  • Others: $500.

So, to maintain a brand-new beauty studio, you have to be ready to invest about $10 000-15 000.

Salon opening budget

How to choose the best beauty salon premises

The location of a beauty salon is significant, especially if you open it by yourself, without any franchise. Clients have no idea who you are and what you can offer. They can doubt your services from the beginning. That is why selecting a good location can help with getting your audience.

There is no point in starting a beauty salon in an area where your target audience has never been. For example, let's compare the destiny of a beauty salon in a big shopping mall and the one far from the city center.

The first option will be winning because so many people would like to get a haircut or makeup. Talking about residential areas, it will be fine too. Then simply start an economy beauty studio to attract locals. But starting a new beauty salon far from transport hubs, city center, and residential areas is an awful idea.

We recommend starting a salon in the city center. It will be the best choice for a business and lux salon. However, if you open an economy class beauty studio, do it in the residential area.

Facts to know before selecting the premises:

  • Check whether there is a parking space nearby.

  • See whether you can place your ads on the building where you are renting the premises.

  • Select the location near the shops and malls.

  • Think about a beautiful and comfortable entrance.

  • Don't forget about good plumbing. It will benefit if it is already installed. If not, talk to the landlord about getting this equipment.

How do I open beauty salon

Purchasing beauty salon equipment

Now, let's see what you will have to get first to open a successful beauty salon.

Beauty studio equipment and consumables

  • Beauty salon furniture: chairs, sofas, reception, etc.: $5000-7000.

  • Computer technique $1500-2500. Website creation and booking salon connection – can be free.

  • Beauty tools: $2500-3000.

  • Other inventory – $1000.

The average amount to spend is about $1000-15000. Beauty salon equipment is extra essential. Clients come to pay for a quality service. Pretty often, without the right tools and cosmetics, there is no good service. Professional beauty products will also cost you about $1000-2000.

Can I save on beauty salon equipment and cosmetics?

Well, you can! There are many ways to minimize the initial expenses. Consider getting second-hand tools and budget cosmetics. The first and foremost is never to compromise quality. A pleasant moment is that quality doesn't have to cost too much.

Monitor the websites for selling used stuff. Sometimes famous beauty studios renew the design and get rid of the previous tools. Then they sell them for almost nothing. It is a perfect chance for small salons.

How much does beauty salon cost

Hiring beauty salon staff

The number of your employees depends on your beauty salon's type, class, and aims. Hiring too many people is unnecessary to cope with customer flow. The main thing to cope with is optimizing the business so you won't need any other staff.

Get a good salon booking software for employee and customer management:

  • You will be able to see the results of every team member.

  • The staff will have a motivation to grow.

  • There is no need to pay to maintain the routine. The booking program automates all the processes. Then, you simply hire beauty experts and an administrator to control it.

  • You will be able to demonstrate your team on the website. They will be inspired to get more certificates and courses as everyone will know about their success.

Good to know:

  • Allow your staff to choose how they want to work. For example, if someone says there is no sense in offering nail services 5 days per week, rest for 2. Just get the 2/2 schedule. It will help both of you.

  • Many processes can be outsourced, such as accounting and cleaning. The cleaning lady can come to you every day. It is not necessary to add her to the team.

Best beauty salon business plan

How to promote your salon

Proper marketing can benefit any business idea. Online marketing is crucial for beauty businesses, as the niche is fully tied to recent trends, which often go viral thanks to marketing. That is why when starting a new beauty studio, it is good to think about its promotion.

Tips on salon marketing

  • Collaborate with influencers.

  • Use contextual and targeted ads.

  • Create attractive TikTok and Instagram profiles.

  • Connect online appointment software.

  • Get a friendly website.

  • Connect widget for online booking.

  • Launch ads on maps

  • Use out-of-home advertisements: billboards, leaflets, handouts.

  • Promote a beauty salon on TV and in magazines.

Business plan for beauty niche

Booking app for beauty salons

Before launching a beauty studio, choose a good online appointment software to connect with. EasyWeek booking app is a perfect tool for small and midsize businesses, allowing more than essential online booking features. Providing businesses with a free landing, a custom widget, and more than 4,000 integrations covers almost all the features a beauty salon may need.

Benefits of the EasyWeek booking system

Clients respect EasyWeek's service as easy to use, functional, affordable, and innovative. There are also no additional fees or hidden payments.

Booking software for beauty salon

Financial success of beauty salon

The ROI of a beauty salon is relatively fast. Usually, it takes 8 – 12 months to get your investments back. The calculations are pretty straightforward: add the amount you get every day. Then see the monthly income, and so you will understand the ROI.

How to increase salon profit

  • Use marketing life hacks.

  • Get a loyalty program.

  • Develop quality day by day.

  • Apply technology in customer relations, such as booking programs.

The beauty salon business is a profitable niche for beginners. First, understand who will buy your product/service, then create attractive offers for this audience. This way, you will sell more and bond with your loyal clientele.

How to promote a beauty salon

Statistics on the number of beauty salons at the end of 2021

The beauty market has just survived the roller-coaster period. First, the demand went down. The main reason was the pandemic of Covid-19. Then the popularity of beauty services increased, then again, the process calmed down. Now, the beauty industry is at its peak.

Customers are full of restrictions. However, they are eager to spend on different services related to beauty and healthcare.


  • During 2020 9% of beauty salons stopped working.

  • A lot of self-employed beauty specialists have appeared during the last two years.

  • Now, the beauty services have gone mobile. Specialists go to the client's home and serve him there.

Beauty business from scratch

Launch your salon business now

According to the statistics, the beauty niche will continue to grow in recent years. There are a lot of challenges, but clients are ready to pay for the quality so the rate will develop with time. There are several rules to win the battle for your loyal audience.

The first is to research the market – see what is missing, then stand out by offering it. The second is to understand who will pay for your service – it is the best way to make money. Last but not least, invest in marketing and professional teams and connect the modern software for online booking.

EasyWeek booking system is eager to help you with opening a successful beauty salon. Stay tuned, and good luck with diving into the beauty business world!

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