More than 627,000 new businesses open every year, with each owner bright-eyed and ready to take on the world. Have you decided that this is your year to finally bring your dream of opening a salon to life?
If so, congratulations! In this beginning research phase, you’re probably looking for answers to your most important questions, specifically regarding startup costs.
So, how much does it cost to open a salon? The simple answer is that it depends. Opening a salon can cost you anywhere from $50,000 to upwards of $500,000. With such a wide range, how can you possibly prepare? We’re here to help.
Keep reading to learn about the different costs involved when starting a salon business, so you know how to prepare for your exciting new venture.
One-Time Costs
When you’re trying to calculate the average cost to start a salon, first focus on the one-time startup fees. While you may feel like you’re spending a lot of money upfront, try to look at the following fees as an integral part of building a foundation for your new business.
Licenses, Certifications, and Permits
First, you’ll need to make sure that you and any employees you hire have the necessary cosmetology licenses in order to provide services to customers.
Then, you’ll need to get business licenses and permits to ensure that you are legally able to operate a salon in your chosen city and state.
Location Deposit
After you’ve completed all the necessary paperwork, you’ll need to find a location for your salon. Do some research about commercial rental costs in your area, as well as competitor research to make sure there’s a need for your services in your area.
Once you find a location, plan to put down a security deposit and several month’s worth of rent upfront in order to secure your space.
Initial Equipment and Supplies
After you’ve found a physical location, you’ll need to spend money to get it outfitted with all the equipment and supplies you need. For example, if you’re opening an eyelash extension salon, you’ll need to buy lash extension supplies, comfortable seating for customers, etc.
Again, this is a lot of money upfront, but the supplies you get now should last years before needing to be replaced.
Recurring Costs
Once your salon is all set up and ready to open, you won’t have to spend as much going forward. However, remember to budget for ongoing costs when calculating how much it costs to open a salon. Some of these ongoing costs will include:
- Lease payments for your rental space
- Business insurance
- Payroll, if you plan to hire employees
- Inventory fees
- Cleaning supplies or commercial cleaning services to keep your salon hygienic
- Utilities, like electric and water bills
- Maintenance and repair fees, due to normal wear and tear
- Marketing fees
- Miscellaneous funds, in case something unexpected comes up
Owning a business is expensive, so be sure to budget for all of these items when trying to decide if you can afford to open a salon.
How Much Does It Cost to Open a Salon? Now You Know
Now that you know how to answer the question, “How much does it cost to open a salon?” you have a better idea of how to budget for your new business venture. Now, the real work begins as you begin to turn your dream into a reality! Looking for more guidance as you start your business? Check out our other articles before you go and check back often for new content.
