The hair salon launch plan
Every step from deciding to opening, in the order it happens, shaped to your situation, with your own numbers beside it. About 48 steps in 8 phases, 23 of them specific to a hair salon. Free to read; ticking steps off and putting in your own numbers come with membership.
The plan48 steps
- 01Not started0/6Fold
Decide with the numbersa week or two
Before a dollar is spent. Most expensive mistakes happen here, and this phase costs nothing.
A salon sells stylists' time across its chairs, plus take-home product.
Typical for one unit is $360,000 to $700,000 a year; the owner keeps 20 to 28% of it before paying themselves. If that band does not cover what you need, that is the signal to pause and look again.
~50% survive 5 years. Roughly half of all new U.S. employer businesses are still operating after five years, the baseline before industry is even considered.
Twelve questions about your money, time, experience and temperament, scored. Then the 5 questions this business asks of its owner, about the hours and the work. Answer both before you spend a dollar.
Rule of thumb: if a well-run salon with tenured stylists and a transferable book is available at a fair , buying is usually the lower-risk path, but make the deal contingent on the team... Answer it in your situation above and the plan reshapes.
Customers, prices, rent, staff pay, what it costs to open. We filled in typical numbers; change what you know and everything on this page follows.
- 02Not started0/5Open
Plan the moneya week
What it costs to open, where the money comes from, and the cushion that keeps you alive until the business pays for itself.
Opening a full-service salon means chairs, stations and shampoo bowls, plus the plumbing and hot water behind them.
The itemized cost to open9 lines
- Chairs, backwash units, dryers, water heater & laundry: $6,400 to $32,000A hydraulic styling chair runs about $380 to $1,200; a backwash unit about $800 to $3,300
- Stations, mirrors, trolleys, reception & retail fixtures: $5,400 to $27,600
- Hot tools & station smallwares: $1,000 to $7,700Many stylists bring their own dryers and irons
- POS hardware, computer, Wi-Fi & cameras: $1,200 to $9,600
- Exterior sign: $2,000 to $14,000
- Opening color, back-bar & retail stock: $5,000 to $15,000
- Build-out & shampoo plumbing: $16,000 to $129,000The biggest swing; a second-generation salon has plumbing in place, a raw shell needs new drains, circuits and finishes
- Licenses, permits, fees, insurance & deposits: $10,600 to $31,400State salon license, building and sign permits, lease review, first premium, lease and utility deposits
- Initial working capital: $15,000 to $40,000Payroll through the ramp and 3 to 6 months of reserve
Costs start on day one; customers take months. Map the first twelve months of cash so the business does not run out of money while it is getting going.
The business has to earn your pay like any other bill. Set it in your numbers and watch the month it move.
How deals in this business are financed4 lines
- SBA 7(a) loan (Up to $5M · up to 10 yr (25 with real estate) · 75-85% guaranteed)The usual way to open or buy a salon: it funds the build-out, furniture, working capital or the purchase price.
- SBA 504 loan (Up to 25 yr · real estate & major fixed assets)For owners buying the building too.
- Equipment financing (Secured by the equipment)Styling chairs, backwash units and dryers can be financed or leased through the dealer or an equipment lender, secured by the furniture itself, which keeps cash free for the...
- Seller financing (Often 5-20% of price · 3-7 yr)Common when buying an existing salon.
Most new shops pair an with 10 to 20% of your own cash. Know the monthly payment before you look at a single space.
Before you shop. A lender tells you what they would fund, what they need from you (credit, your cash in, a plan with numbers), and a pre-qualification letter makes a landlord or a seller take you seriously.
- 03Not started0/4Open
Set up the companya day or two
A day of paperwork, and it has to come before the space: a lease, a loan application and every permit are in the company’s name.
Your state’s business name search, the trademark register, and the domain, before the name is on a sign, a van, or a lease.
A , an , and the S-corporation election each change what you keep and what you are exposed to. Compare them with the numbers, confirm with a CPA and an attorney, then file with your state.
After:The is free from the IRS in minutes once the company exists. The bank account needs both. Keep business money separate from day one.
After:Pick the accounting software and connect the bank account now, so every cost of opening is captured and the numbers you later are real.
- 04Not started0/5Open
Find and secure the spaceone to three months
A salon lives on visibility, convenience, and the local talent pool.
What decides it for this business: strong street visibility & signage, easy parking or walkability, matching demographics & income, access to stylist talent, complementary co-tenants.
One call to the planning desk with the address: is this use allowed there, and what will it take (, permits, fire sign-off)? A space that needs a change of use can add months.
Rent, free months for the , who pays for what, the and the renewals, subject to financing and permits. The lender needs this letter or a draft lease to take your application.
After: ,, renewal options, increase caps, what the landlord adds on top of rent, and what happens if you have to leave. For a location business the lease is part of the purchase price.
After:at minimum; property, workers’ compensation and the rest as the business needs. The landlord asks for a certificate at signing and the lender at closing.
- 05Not started0/2Open
Get the loanfour to eight weeks
Four to eight weeks with an SBA lender, longer if the file is incomplete. Everything else waits on this, so send a complete file.
Your plan with numbers (download it as a PDF from this page), the company’s papers, the or draft lease, the and equipment quotes, your personal financial statement, and proof of the cash you put in.
After:The lender approves against the ; you sign the lease once approved; the loan closes against the signed lease and the insurance certificate. Ask for the to match the or longer.
After:
- 06Not started0/10Open
Permits and the build-outone to three months
Cosmetology is licensed in every state: each stylist needs a license, and so does the salon itself.
Bind the policies you had quoted before a contractor, a vehicle or a customer is in play. Keep the certificates; the landlord, the lender and the city will ask.
After:For any , new shampoo bowl drains, a commercial water heater or dryer circuits, pulled by your contractors and closed out by inspection.
After:Local approval for the storefront sign, usually with the landlord’s sign-off too.
Register your or corporation and get a city or county business license.
State registration to collect tax on the retail product you sell.
A salon or establishment license from your state cosmetology board, usually issued after an inspection of the finished salon.
Every stylist, colorist and booth renter needs a current state cosmetology license displayed at the station.
A public performance license (ASCAP, BMI and others) if you play music in the salon.
Fire-marshal review of exits, extinguishers and load, after the build and before the .
After:Local sign-off that the space is approved for a salon, before the doors open.
After:
- 07Not started0/11Open
Set up to runduring the build
During the build, so the business runs from day one: the systems, the prices, the people and the routine.
Online booking, rebooking reminders, and a point of sale built for services and retail are the operational core; they fill chairs and capture the retail...
Fast checkout with integrated tipping.
Commission splits, booth-rent invoicing, and tip handling get complicated fast; you need this the moment you have a team.
A dedicated account keeps service, retail, and rent separate from personal money, essential for clean books and a real paper trail.
Property, , and professional (malpractice) coverage for chemical services.
See the price the the business needs implies, then check it against what the market pays.
Federal plus state withholding, unemployment and workers’ compensation once you hire.
After:Wages are the start: , insurance, training time and the hours you stop billing. Owners usually post the jobs a month out and hire two to four weeks before opening so training happens before the doors open.
Daily: Run the book, greet clients, manage walk-ins and no-shows, keep... Weekly: Review chair and rebooking rates, reconcile commission or... Monthly: Review service mix and pricing, check stylist take-home against the...
Opening, closing, the sale, the complaint, the cash. One page each. This is the manual a franchise would have sold you.
Free, and it is how most people will find you. Address, hours, photos and the menu or price list, live before opening day; then the sign, the soft opening and the first regulars.
- 08Not started0/5Open
Open and measurethe first ninety days
You own it. Now run it on the numbers.
Friends, neighbors and a short menu or list. Find the problems while the room is forgiving.
Enter the real numbers and see every cost line against the for this business.
Empty chairs; The pay split; Rent and the lease.
Growth consumes cash before it produces it. Find the rate your own cash funds before you push.
You are building an asset you can sell.