How Much Does It Cost To Open A Hair Salon Business

How Much Does It Cost To Open A Hair Salon Key Expenses

Opening a hair salon business can be an exciting venture, but it’s important to understand the costs involved before diving in. The initial investment required to start a hair salon can vary widely depending on the state of operation and diverse factors. In this post, we will answer the question “how much does it cost to open a hair salon?” and discuss the key expenses involved in opening a hair salon business.

Is Opening A Hair Salon Profitable?

Profit margins for hair salons are surprisingly low, with the average annual profit being just $20 000. The salon profits range from 2-17%, depending on management skills. Many stylists have come to realize that they are artists, not managers, in this business.

The key to making a profit is to find the right location and to offer services that are in demand. By offering a variety of services, you can attract a wide range of customers. To make your salon more profitable, you should also offer wholesale cosmetics. By buying in bulk, you can get a significant discount on the products that you use. This allows you to offer lower prices to your customers and still make a profit. However, if you wondering how to open a barbershop, you can use same tips.

The Major Costs Of Opening A Hair Salon

Opening a hair salon can be a lucrative business, but it also comes with significant start-up costs. It’s essential to determine what expenses are involved before launching your salon. Below, we will break down the start-up costs of opening a hair salon with accurate prices to help you plan and budget for your new venture.

Equipment and Supplies

This includes salon chairs, shampoo bowls, styling stations, hair dryers, flat irons, and other styling tools. The cost of these items can add up quickly, with a typical salon chair costing around $250-$500 each and shampoo bowls starting at $200. Additionally, you will need to purchase hair products, towels, and other supplies for your salon, which can add up to several hundred dollars. An estimated $25 000 is required to fully equip a salon.


The first significant cost to open a hair salon is rent. The price can vary depending on the state of operation and size of your salon. A salon in a suburban area could cost anywhere from $1500 to $3000 per month, while a larger salon in a more urban area could cost upwards of $5000 per month.

Licensing and Permits

To operate a hair salon, you’ll need to obtain a business license, an Employer Identification Number, and the following specialized licenses: cosmetology, barber, aesthetician, electrologist, and manicurist. The cost of these permits can differ based on your location, but you should expect to pay anywhere from $100 to $500.


Insurance is an essential expense when planning a hair salon cost. You will need to purchase liability insurance to protect your business from any potential lawsuits or claims. The cost of insurance can vary, but you should expect to pay at least $500 per year.

Miscellaneous Expenses

There are several other miscellaneous expenses to consider when opening a hair salon. This includes utilities, such as electricity and water, which can cost anywhere from $100 to $500 per month. You’ll also need to factor in the cost of cleaning services, which can range from $100 to $300 per month. Additionally, you may want to invest in software and technology to manage appointments and inventory, which can cost up to $1000.

Marketing and Advertising

To attract customers to your salon, you’ll need to invest in marketing and advertising. This includes creating a website, social media presence, and print materials such as flyers and business cards. The cost of marketing and advertising is based on the scope of your marketing plan, but you should expect to pay several hundred dollars at a minimum.


“How much does it cost to open a hair salon?” If you plan on hiring staff, you’ll need to factor in the cost of salaries and benefits. The cost of staffing depends on the number of employees you plan on hiring, their experience level, and the location of your salon.

The Monthly Costs To Open A Hair Salon And Operate

If you’re thinking about opening a hair salon, you’re probably wondering how much it’s going to cost you each month. Here’s a breakdown of the typical monthly expenses you can expect to incur:

  • Rent: $1000 – $3000
  • Utilities: $200 – $400
  • Insurance: $100 – $200
  • Salaries: $2000 – $5000
  • Supplies: $500 – $1000
  • Marketing: $200 – $500

Of course, your actual monthly expenses will vary depending on the size and location of your salon, as well as the number of employees you have. However, the average monthly costs are approximately $4000 – $10 000. This should give you a general idea of what you can expect to spend each month to keep your salon up and running.

Now that you know the typical monthly expenses of operating a hair salon, you can start budgeting for your own business. Keep in mind that it takes time and money to get a new business off the ground, so don’t be discouraged if you don’t see a profit right away. With hard work and a little luck, your salon will be thriving in no time!

Final Thoughts

Opening a hair salon comes with a variety of expenses that must be carefully considered before embarking on the journey of entrepreneurship. While the initial investment may seem daunting, it’s important to remember that many of these costs are necessary for creating a successful and profitable business. 

Proper planning and budgeting can go a long way in mitigating the financial risks of opening a salon. With a solid business plan and a clear understanding of how much it costs to open a hair salon, aspiring salon owners can confidently take the first steps towards making their dream of owning a hair salon a reality.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.