small salon business plan philippines

How To Start A Salon Business In The Philippines

Starting a business in the Philippines is an exciting venture with a lot of potentials. In this article, we will discuss how to start a salon in the Philippines.

Table of Contents

To start a salon in the Philippines, you must:

• Develop a business plan
• Obtain all licenses required
• Find a location near your target audience
• Find funding for your salon
• Determine what services you want to provide
• Hire employees
• Advertise and market your salon

Develop A Business Plan

First things first, you need to write a business plan before you even go scouting for a location to run your salon. You need to create how many milestones you want to achieve in an estimated timeframe, this will be where you want to roughly achieve any goals you have before and after you open your salon.

For example, let’s say you want to finish obtaining your licenses by 5 months into your business plan. This is a great way for you to be determined to finish your goals, and also gives you enough time to acquire all the proper licenses.

You can always change these timeframes; this is not a document that can’t be changed. You absolutely can modify your plan to accommodate your milestones. This plan is for you, no one else. If you need to add or delete some milestones you didn’t need either, you can change and alter anything on the plan.

Your plan is just a guide on how you want to start your salon. This is not an official document you need to necessarily show anyone either, think of writing in a diary. This is used to track your thoughts and ideas.

Obtain All Licenses Required

You can’t just own and operate a salon without the proper licenses and documentation. This means you have to be a licensed cosmetologist with experience in what your salon offers. I will provide a list of some of the licenses you need and why you need them.

Bureau Of Internal Revenue

You need this license because, without it, you literally cannot obtain any licenses or start your business. You need to have a tax identification number for your business to comply with the law, and so it can be taxed at the end of the fiscal year.

Barangay Clearance

You need this to prove your salon has been approved in the barangay you are located in. You need to provide a clearance from last year if you have it, the receipt for the clearance, comprehensive general liability policy, the receipt of the policy.

Please follow this link to see why you need this important form. There are so many reasons you need this that it will not fit on this article. Check it out and also learn what else comes with the barangay clearance.

Mayor’s Permit (Business Permit)

Obviously, without this permit, you can’t open or even run a business. You have to have this, this clarifies that your salon has the proper practices and has been inspected to operate. You can’t get one of these and expect it to work everywhere, that is not the case whatsoever.

If you didn’t know, each city has different ordinances than others. This meaning, one practice may be ok in one town, but to a different town, this can be a huge problem because they do not believe the same.

Department Of Trade And Industry Business Name Registration Certificate

This certificate is used for you to use your business name for any business-related operations you do. This also means the name of your business cannot be taken by others, this is your official name. To receive this certificate, you must be 18 years or older. This certificate is valid for 5 years, then you must get a new certificate.

There are other licenses you will need, so follow this link to see what else you will need for permits and licenses. There is also information about what other licenses you need if you have employees working for you.

Find A Location Near Your Target Audience

Do you want your salon to be kid-friendly? Do you want your salon to appeal to adults? You need to know who your target audience is for you to find a suitable salon location.

If you want to have your salon kid-friendly, it is best to put your salon in an area where there are a lot of children. For example, if you are opening a hair salon, you would want to be near a children’s store or a mall where children frequent.

If you want to cater more towards adults, you may want to open your salon where there are a lot of people walking around. For example, I recommend any downtown area that mainly has businesses for adults to shop in and bars. This way, your salon is easy to find since people may have walked past it, or even discover it on their way to their destination.

Your target audience reflects where your salon will go. If you do not set up near the audience, then you will not gain many clients and your business will struggle. Also, something to keep in mind as well, you do not want to set up a salon near another salon.

If you set up near another salon, you will be competing for customers and since they have been there longer, you may have to lower your prices or offer services they do not have, but still appeal to your audience.

Find Funding For Your Salon

On average, it costs up to 3 million pesos to open a salon. Sometimes this amount is even more if you want to build your salon from the ground up. You are going to need a lot of pesos to cover all of your salon expenses.

Like I have said, you can pay a minimum of 3 million pesos to even open up. This is not including your products and equipment expenses. This is just for the building without utilities. You need to have a lot more funds to open a salon.

On top of that 3 million, you can expect to pay 563296.96 pesos or more for your equipment. This does not include products for you to use and to sell to your clients. That is another cost you have to consider as well.

You are going to need a few thousand pesos to be able to afford your products. The prices depend on who you are purchasing from, but I recommend it be quality products so you are not using the cheap stuff that can potentially harm your clients.

So let’s say you need at least 3,563,296.96 pesos. Could you afford this? I don’t think you can, so we can always go get a loan and then run our business. Or you can apply for special financing through the SSS Special Financing Program. Follow this link to learn more about SSS.

Determine What Services You Want To Provide

So do you want to have services for a hair salon? Do you want to have services for a spa? What does your competitor offer for their services?

If you are more leaning towards opening a hair salon, you are going to need to provide hair services. If there is no one else in the area doing it, you should take the opportunity to take it. It may benefit you in the end.

If you are leaning on opening a spa salon business, then you can offer a wide variety of services and still gain business. My advice still stands for taking and offering whatever services the other salon does not have in the area.

If you provide a lot of different services, you can have a wider range of audiences. You can have people who need their eyebrows waxed and don’t want to pay a fortune for just some wax. Also with the services, you are going to need to price them fairly to yourself and your clients.

Hire Employees

You are going to need some help when you are running your salon, so you will need to hire some employees who are certified to work in a salon. You must provide these employees with proper pay, and you treat them well.

The average pay for a hairstylist is ₱159,985 a year, or up to ₱70 an hour. You also need to provide training for your employees so they know what practices are current and to get an idea of what hairstyles are trending to this day.

You also should provide your employees a manual for them to follow your salon’s practices and for them to understand what you value most in your salon’s success. Treat them right as well, they are helping you make your business run and without them, you wouldn’t be able to run the salon.

Advertise And Market Your Salon

You need to get the word out there that you have opened a salon. The best ways to advertise your salon are on social media and to get some space in the local paper to let the people know you have opened your doors.

Utilizing social media not only has helped salons and even other businesses gain clients, but it has also helped them respond to any questions clients may have and provide even better customer service. Having an online reputation means a lot nowadays, if you make it known you are online and can provide more customer service through email and even Facebook messenger messages, you will have a more positive reputation within the community.

You can also market your salon’s services on social media. Let’s say for example Instagram. You can post pictures of your salon’s work and can write engaging comments for your clients to critique the look. That way, you know if the vast majority like the look or not.

Also, you can put your business on Facebook and offer your prices and any news/updates to your salon for your customers to see. If you are keeping up to date with your social media platforms, you can gain more clients by finding you on social media or recommended to follow by a friend.

Check out our guide for marketing on Instagram HERE .

You Started A Salon In The Philippines

Now you know how to start a salon business in the Philippines. I hope you have success in opening your salon and remember, it is okay if your business plan does not match what happens in that timeframe.

Related Questions

How do I fix the language barrier between me and some of my clients?

This is a great question, to communicate effectively, I suggest pulling up google translate and have them speak into the microphone. This will translate to both of you guy’s language and be able to understand each other through text on the phone.

How hard is it to start a salon in the Philippines?

This is as equally difficult as it is in the United States, except you have to contact the Bureau of Internal Revenue, Barangay Clearance, Mayor’s permit, and so many other forms. Also, this is a time-consuming expense that you would have to sit down and take time to do. Overall, though, it depends if you think your salon will be successful. Having a positive mindset will be important in starting your salon.

Looking to start your own Salon? Get the documents you need to get organized and funded here .

Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.

About the author. Entrepreneur and Salon Business Fan.

Hi! I am Shawn and I am a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online salon business resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a salon business owner, I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.

That’s why I created Salon Business Boss: I want to help salon business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.

• Wed. Jun 5th, 2024

Business Diary Philippines

Small business startup ideas and money making guide

How to Start a Salon Business

If your passion is making people look good through various beauty services, getting into the beauty business may be a good investment!

Below are important things to consider in putting a salon business.

1. Location In a salon business, you must pick your location carefully.

Insider Tips: – You won’t go wrong with choosing to put your salon in a mall. – You’d also want to cater from Class A to C. – Spend time looking for a good location and an area that would give you a comfortable size. – It’s also a good idea to pick an area with lots of foot traffic if you think you’ll depend on walk-in clients.

2. Equipment It’s better to buy good used equipments

Insider tips: – If you prefer new supplies, shops like Hortaleza, HBC and Accessories and Beauty Equipment stock everything you are likely to need. – It is also important to buy high-quality shampoos and chemicals for nail care, hair treatment and coloring to please your clients.

3. Staff It’s always a must to recruit good people for your parlor.

Insider Tips: – Your staff should have the technical expertise especially in hair coloring and styling using international standards as a benchmark. – They have to undergo regular and constant training to update them on new products, hairstyles and customer service. – Very important to travel abroad to attend some conventions / seminars. Continuous research is very important to know the latest trends. – Think how can you innovate!

4. Cost Breakdown To put up a 50-60 sq. meter salon in a mall, be prepared with at least 3 to 3.5 million pesos!

Costs includes: – Construction plus interior – Rental payment (rental in malls costs P70 to P75 thousand pesos a month) – Deposit payment – Advance payment – Equipment (mirror, chairs, scissor, blower, other gadgets) – Supply (shampoo, chemicals, etc.) – Business permit is one of the highest expenses ranging from P100 – P200 thousand pesos

List of Basic Salon Equipments and Materials – Shampoo chair w/ ceramic bowl – Hydraulic chair – Stylist stool – 4-layer trolly – Manicure table – Hair steamer – Infrared stand – Footspa machine – Footspa chair – Waiting chair/sofa – Mirror (65 x 100 m)

– Naylon cape – Barber’s scissor – Thinning scissors – Hair comb (narrow) – Hair comb (wide) – Barber’s brush – Hair clippers – Hair brush – Hair blower – Hair rollers/curlers – Hair benders – Hair towels – Hair cap – Heating cap – Hair Iron – Ear pads – Heated curlers

– Nail cutters – Nail file – Nail brush – Nail nippers – Face towels – Frosting cap – Nail buffers – Foot scrubbers – Foot file – Pumice sponge

List of Basic Salon Supplies – Hot oil – Rebond – Relaxer/straightening – Cellophane – Hair coloring – Hair shampoo – Hair conditioner – Treatment (rebond)

– Foot soak – Foot soap – Foot scrub – Foot massage cream – Foot lotion – Cuticle remover – Base coat polish – Colored nail polish – Top coat polish

Business Registration Requirements

Business Name Registration Visit Department of Trade & Industry (DTI) Provincial Office where the business is located or log on to www.bnrs.dti.gov.ph

Mayor’s Permit/Resident Certificate & Sanitary Permit From The Local municipality where the business is located

Tax Identification Number (TIN) Bureau of Internal Revenue (BIR) National Office, Agham Road, Diliman, Quezon City Trunkline: (632) 981.7000 / 981.8888 Email: [email protected] Website: www.bir.gov.ph

Funding Sources

SSS Special Financing Program Social Security System (SSS) Loans and Investment Office SSS Building, East Avenue, Diliman, Quezon City Tel. Nos.: (632) 920.6401 / 920.6446 Email: [email protected] Website: www.sss.gov.ph

Small & Medium Enterprise Credit Phil. Business for Social Progress 18th Flr., Phil. Social Dev’t. Center, Magallanes cor. Real St. Intramuros, Manila Tel. Nos. (632) 527.7741 to 51 or 527.3751 Fax No. (632) 527.3743 Email: [email protected] or [email protected] Website: www.pbdp.org.ph

People’s Credit Finance Corporation 395 Sen. Gil Puyat Ave. Makati City Tel. Nos. (632) 897.8549 / 897.5822 Fax No. (632) 897.8523 / 897.8528 Email: [email protected] Website: www.pcfc.gov.ph

Training Institutions

DTI-Cottage Industry Technology Center (CITC) 20 Russet St., SSS Village, Makati City Tel. Nos.: (632) 942.0880 / 942.3974 Email: [email protected]

Technology Resource Center (TRC) 2/F Jacinta II Bldg., EDSA Guadalupe, Makati City (beside Metro Manila Development Authority-MMDA) Tel. Nos.: (632) 727-6205 Website: trc.dost.gov.ph

Technical Education and Skills Development Authority for Women Center (TESDA-WC) 37 East Services Rd. South Superhighway, Taguig City Telefax. Nos.: (632) 818.8062 Trunkline: (632) 814.4076 loc. 278 Email: [email protected] Website: http://twc.tesda.gov.ph

Have you been dreaming of owning your salon? With this insider know-how, you can make that start!

Source: Lucy Britannico (Hairshaft Salon), dti.gov.ph from Hanep Buhay, gmanews.tv

Related posts:

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How to start selling your homegrown produce, how to work faster and more efficiently from home, how to earn money being a mom blogger, 15 thoughts on “how to start a salon business”.

Is there someone who specializes in getting a hair salon license? My shop is in panaque, If anyone can contact me and quote me a price via telegram @BrianNguyen15 ; or text me 09391351608

Very detailed article. I am planning to open a salon in my neighborhood and I am still in the research phase and this article has helped me in that. I’ll keep all these things in mind while creating my final plan.

There are different ways to establish yourself in the hair industry. You can open a franchise hair salon, wherein you pay money upfront for the license of opening the salon under an established brand name. You can purchase a well-established salon from someone who planning to retire from the business. Another option is to start a salon using your own money.

Good day! Businesspro Asia, Inc. is seeking for Freelance Speakers who can share their knowledge and expertise on the following topics: Putting up a business for: · Balloon and Party Needs · Beauty Salon · Canteen Concessionaire · Catering Business · Coffee Shop · Drugstore Business · Events Management · Food Cart Business · Import/export products · Investing in Stock Market · Janitorial Services · Junkshop Business · Laundry Shop · Manpower Agency · Micro-Lending · Money Changer · Restaurant · Setting up a Business · Travel and Tour · Water Refilling Station

For business improvement: · Info Sec. · QMS · ISMS · Accounting related topics · Leadership Training · Budgeting and Personal Finance · Building and Property Management · Collection Management · Customer Service Training · Communication Training · Food Safety · Freight Forwarding · Human Resource Management · Internet Marketing · Legal Mgt topics · Logistics operation · Purchasing Management · Search Engine Optimization · Six Sigma process Improvement · Social Media Marketing · Supervisory Skills Training · Supply Chain Management · Warehouse and Inventory Management We can also accommodate any other topic within your expertise that you may want to talk. Should you be interested, or have any concerns, kindly email us at [email protected]. For more updates please like our Facebook page https://www.facebook.com/businesspro.asia/?fref=ts We look forward in to having you as part of our team!

I think this is the best article for the startups those who want to launch their own saloon business. Starting a saloon business is a very good business idea because today every person goes to saloon so the success of this business is for sure. Launching an online spa and saloon website like Ziffi or Vbooky is also a good option for the startups those who dont want to start their own saloon but want to get into this business. Check this business model for more details – http://www.fatbit.com/fab/spa-salon-booking-websites-script-features-huge-hit/

I thought it was interesting that you suggested to buy good used equipment for your hair salon. I can see how this is a good thing, though, because it will help you to save money and ensure that your salon is completely well equipped. That being said, I would think that it would be interesting to make sure that you are doing your research and making sure that the equipment has good reviews and will serve the purposes that you need them to. That being said, do you know if there are any review websites specifically for this to help this be easier? Thank you for sharing! http://www.wholesalesalonequipment.com/equipment/shampoo-bowls.html

Planning to put a kids hair salon, please help me find suppliers for the equipment and consumables.

Hi , from your experience is that true that the business permit will cost ranging from 100 – 200 thousand???

@aldenavila we had SEC permit.. Its corporation permit for 5 stockholders which costed more than 50k and we hired accountant to do it and we gave the money needed to her every week so im not sure with all in all total expense for the permit but it wasn't more than 100k.. if u get DTI permit i heard its cheaper.. there are many under the table bribery to make the permit procedure done faster and it also depends on the city..

We had a high end salon before. We only spent 500k-600k for 70sqm salon in hotel in makati. Unless you are planning to open a business in malls u don't need millions 🙂 We sold it since I'm busy with my job and I'm planning to open smaller one now

Kindly email me also where we can buy quality salon supplies.

This page is very informative. It is very hard to find seminar on how to put up a Barbershop or Salon, but this nailed it! Thank you Lucy Britannico (Hairshaft Salon). Hope you can email me as to where to buy cheap supplies as well. Please email me at [email protected]. thanks

For anyone looking for manicure tables, I've written a great article on them: http://weheartnails.com/manicure-tables/

hi! there actually I had plan to start a salon business I want to start small salon in our garage so I can save rental so I want to ask how much the total start of getting a business permit then materials for it. hope I could gets some tips from yours best regards guys!

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How To Set Up A Nail Salon Business Philippines

With enough guidance and direction, you can set up a nail salon business in the Philippines effortlessly. Today we have a complete rundown of how to start a nail salon business in the Philippines and some extra tips to help you along the way.

At least once every couple of weeks, Filipinas treat themselves to a mani-pedi. Some even go there more often. A Filipina’s checklist is not complete without a beautiful set of nails. Similar to going to a hair salon, Filipinas are particular about their nails. Therefore, the nail salon business in the Philippines is booming. 

Table of Contents

How To Set Up A Nail Salon Business In The Philippines?

Step 1: create a business plan.

This is the first step in making a clear vision for your nail salon business in the Philippines. The costs and equipment needed are essential. However, before you decide on this, your business plan should answer these questions;

• What are your goals and aims for this business?
• How do you plan to utilize the Filipino culture in your business?
• Who is your target market?
• What are your plans for the future of your business? 

As you create your plan , you will figure out more specific questions. The clearer your plan is, the better you can manage your nail salon business in the Philippines. If you require a business template, you can download a free business plan from our site below.

Step 2: Raise Business Capital For Your Salon

Business capital is an extension of your business plan. Your capital will be dependent on many factors. Let me give you an example. For a nail salon franchise at Nailaholics, here are the things included with the franchise fee of P500,000:

• Use Of Business Name And Logo
• Ocular Visit And Location Approval
• Training For You And Your Staff
• Marketing And Opening Assistance
• Assistance In Getting Needed Goods And Services
• Operations Manual And Research And Development

These are the other requirements they need:

• *Initial Term : 5 Years
• Required Capital: P2,500,000 
• Continuation Fee: P15,000 A Month Or P1,500 For Every Service Station
• Required Space: At Least 30 Sq Meters

*Initial term means the first period of the contract and can be terminated or renewed at the end.

The location, the services, and the size of your salon are a few factors that will impact your specific required capital. It is better to start setting aside money early on. You can ask for a business loan or from your family and friends to supplement your savings. It will also help to have a separate account for your startup capital. 

In case you need additional funding sources, you can inquire at the SSS , Special Financing Program, Small & Medium Enterprise Credit, and People’s Credit Finance Corporation, to name a few.

It will also be helpful to talk to a professional business adviser or talk to the owner of the salon you frequently visit. They can give you a better understanding of the expenses of operating a nail salon business in the Philippines.  Starting a business like this is not cheap. Nevertheless, you do not need to spend too much on expensive equipment.

Step 3: Legal Documents

Depending on the city where you want to put your nail salon business, the legal requirements vary. Nevertheless, to give you an idea. Some of the permits and licenses you will submit are

• Business Permit
• Business License
• Mayor’s Permit
• Sanitary Permit
• Training Certifications

If you are not sure what is needed in your area, it is best to consult with a local business lawyer. Additionally, You can also go to the city hall where you plan to put your business. For the business name registration, you can contact the Department of Trade and Industry (DTI) and Technical Education and Skills Development Authority for Women Center (TESDA-WC) for the training certifications. 

It is also recommended to visit Republic Act No. 3720 for cosmetic law in the Philippines.

Step 4: Location & Equipment

It is essential to give a lot of thought when choosing the location of your nail salon business in the Philippines. This is because this is where most of your target market will come from. 

For example, if you plan to focus your market on students, you could have your nail salon near universities. Start to think about your ideal customer and start to see what areas and places would be useful for them. What areas would be accessible for your market?

Inside a mall is one of the best places to put up your nail salon in many situations since many people find this accessible To simplify, choose an area with enough space and traffic (many customers will be walk-in customers.) Furthermore, safety is your priority. Therefore, it is okay to take your time in location hunting. It plays a significant role in the success of your nail salon business’ future.

Aside from a great location , your salon needs to be well-furnished. You could start by getting standing stations or desks for your nail technicians. Then look into other equipment such as manicure tables, supply cars, reclining chairs with footrests, chairs/sofa (for the waiting area), etc.

If you think your funds will not be enough for the latest equipment, you can find good second-hand equipment through places such as Facebook groups. 

Step 5: Essential Supplies

Once you have decided on the location and furnishings, it is time to prepare an itemized list of essential nail salon supplies. The list can include; scissors, buffers, moisturizers, nail clippers, finger and toe separators, and files. These are some of the commonly used items in a nail salon in the Philippines.

Once your nail salon is fully operational, you will likely make repeat orders a couple of times each month. Therefore, it is essential to purchasing high-quality nail care products. You can make a contract with one or more supplies to get the best prices.

When business owner buys in bulk, they can often get a discounted price, which is great for new owners. For example, a common supplier where you can purchase stock for your nail salon business in the Philippines is Hortaleza . 

Step 6: Hiring People For Your Nail Salon Business

Even if you are very hands-on with setting up your nail salon business, you will need to employ qualified people such as technicians. Apart from doing nail technician work, they will also schedule appointments, make sales, and clean and maintain your salon.

Aside from reviewing their credentials, a wise move would be to talk to the applicants one by one to get a feel of their personalities. This is because the staff is critical to the success of a nail salon business in the Philippines.

Having regular and constant training is also an essential part of the business so that the staff can be updated with the latest nail services, products, and trends. Having trained staff and the newest services will also help you grow your customer base and grow your business.

Because you are in the customer-facing field, your customers will base their experience on you and your employees. Therefore, your staff should understand and support you and your business values. You can make a compelling and clear vision & mission statement to share with your applicants (the foundation in step 1).

Step 7: Promote And Market

Your marketing strategies should focus on reaching your target market and the nearby community. When looking at promoting and marketing, it is essential to look at your return on investment, not just financially but in terms of time.

One of the most effective ways of advertising a nail salon in the Philippines is through referrals. That is why providing excellent service and following proper hygiene protocol are essential. Then, feeling happy with your service, they will mention your salon to their family and friends. 

If you have a Facebook page, you can ask them to leave comments or tag their friends. To gain regular customers, you can offer a loyalty card or some in-house promotion.

Tips For Starting A Nail Salon Business In The Philippines

Tip 1: unique vision.

Setting up a nail salon business in the Philippines is profitable, but the competition can be fierce. Therefore, nail salon owners should stand out. How to do this? Business owners should have a clear vision of what experience or value they want to offer their customers. This experience or value must be unique and not something customers can get anywhere else. 

You can think about focusing on one specific service (USP). Then, you can make this service more effective and efficient. Customers will remember your nail salon for this particular service.

Tip 2: Beauty And Comfort

It is a good idea to give importance to your nail salon business’s inside and outside look in the Philippines. Your creativity can get unique and loyal customers’ attention. 

You can think of some specific looks or themes you can imagine your nail salon having. You can also hire an interior designer to get an idea of making your nail salon brighter or learn about designing through some online course (there are hundreds of free interior designing courses on Youtube).  

If not included in the space, it is essential to have equipment such as fans or air-conditioners, sinks, restrooms, etc. By doing these, the value of a nail salon business in the Philippines is increased.

Tip 3: Work Experience

Many say experience is the best teacher. This can be true when you set up a nail salon in the Philippines. When you become a nail technician, you can better understand the skills needed. Therefore, you can gain an invaluable learning experience as you gather resources for your business. 

You can also learn more about the demands of this industry. This expertise can play a significant role in your success as a nail salon business owner. When you work, you can also observe the administrative aspect of the business.

Tip 4: Quality Equipment And Furniture

When you set up a nail salon business in the Philippines, your equipment and furniture selection and quality is some of the most crucial investments. 

It is tempting to buy cheap, especially when a business owner is just starting. However, your business may suffer in the long run if you purchase the wrong kind of equipment. However, it was mentioned that you could buy second-hand items for your store. It’s best to stay away from poor quality.

Tip 5: Employee Appreciation And Care 

After hiring the best employees, it’s a good idea to reinvest into your staff. This will have many benefits for your nail salon business in the Philippines. When you show appreciation and care to them, they will surely do the same for your customers and you. 

One of the main reasons people leave jobs is that they feel there is no progression and opportunities in their current working environment. Hence, it is always a good idea to set up an independent training plan for your staff and business.  

Tip 6: Budget and Account

Like any other business, the first few years of operating a nail salon in the Philippines are financially challenging. You might have to wait for a while to see your business making profits. This is why making a budget and account record is extremely important. You can make track of every payment transaction. As a result, you can save yourself from stress later on. 

If you are not sure how to handle the finances, you can always ask for assistance from an accountant or business advisor. These professionals can also give you further advice.

Tip 7: Sell Nail Products

Successful owners of a nail salon business in the Philippines do not earn their income from offering alone nail salon services. Instead, they also sell unique products to boost their revenue.

You can try selling nail polishes, moisturizers, and tools. This is especially effective when you have regular customers because they can take home the products they love in your salon. Depending on your area, there may also be several other services or products that you can offer to boost your income and grow your business.

Tip 8: Technology

Time is money, so you can manage your time by installing software to manage and organize the tasks in your salon. For example, online scheduling software can give convenience to your customers, your employees, and yourself. This can also lessen missed appointments. In addition, this kind of software has a reminder alert so that you can call your customers ahead of time. 

You can store their information more easily. They can also make appointments online, which is a feature they will enjoy.  Just remember to abide by any data protection/privacy acts that may be applicable.

Tip 9: Social Media

When you build your marketing strategies, you cannot miss social because it is so beneficial for a nail salon business in the Philippines. If you have an extra budget, you can start paid advertisements from these platforms. There are a lot of social media influencers in the Philippines. In time, you can work with them to advertise your nail salon. 

You may be wondering why social media in the Philippines is so popular. Over the last few years, the Philippines have the number one rank for most activity county to use social media. In some cases, the average is as high as 6,7,8 hours a day!

Tip 10: Competitive Pric es

If you feel lost on how to set the prices of your nail salon services, think of yourself as a customer. What is the price you are willing to pay for the services? From here, you can compare the prices. Most salons start with low prices then slowly increase their rates as their salon business gains attention. This is okay, but it depends on the type of business you are planning to run.

If you have more abundant capital, then a more luxurious business might be best. Therefore offering lower prices could damage your brand image. In other words, offering the right prices can differ from business to business.

Should You Start A Nail Salon Business In The Philippines

When looking at how to set up a nail salon business in the Philippines, It’s a good idea to analyze all the options available to you in your current situation. The trend for this service in the Philippines is on the rise, and it does not look like it will slow down anytime soon. Therefore the market is most defiantly available…., but being successful with this market is slightly different.

Setting up any business will always be challenging at times. Still, naturally, a business owner will learn a lot of valuable information about the industry and how to start a nail salon business in the Philippines.  

Like how we write our posts, it is essential to break down every idea and stage of your nail salon business because this will help you visualize the strength and threats in the industry.

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[PDF] Business Plan for your Hair and Beauty Salon

Hair and Beauty Salon: Business Summary

The idea is on mind, owning a beauty salon business. Great! So what next? Step one is done, the objective is in mind, but in order for it to succeed, there must be a plan; a detailed Hair and Beauty Salon Business Plan which will show that the idea is going to succeed. 

➡️ Download your  Beauty Salon Business Plan PDF for free

Do you remember the 5 w's in the " Laundry Business Plan " article? What, When, Who, When, Why, and How. Well, now we have the What.  The following question would be:

"   How? "

I already know I want to make an investment in a beauty salon, but how am I going to make this happen? With a very well-structured business plan. In that document, the entrepreneur(s) must include, well, basically everything:

Many people think that beauty salons are a cliché business, we have many of them already, but why? Because our society lives on stress, it is always stressed out and salons are convenient kinds of retreats.

They are relaxing environments providing great customer services, stressed people go there to be taken care of. That is the magic of it, beauty salons will always have demand, there is no going back on this hectic world. People love to be taken care of, women love having great colored nails done and men love having perfect hands and beards. The people that are planning on having a beauty salon know it will have a high demand, they know people will go there and that if it is well managed it will work.

But remember, always be different. There are many investments in beauty salons , make yours be worth it. People love different!

1. Describe your Company

The objective is to have an added value, to be different, to have that something that makes people think about it. Will your business atmosphere be relaxing? Will soft drinks are offered to the clients or as they enter the store or until they sit down to get the service? Will you have televisions? Separate rooms depending on the service? To develop great business strategies, it is recommended to perform a SWOT analysis to make the right decision. 

What are some of the keys to success?

Environment:

Convenience:, reputation:.

Considering the list above, it is of extreme importance to vary, not to only offer one thing, but to have a range of products and services so the clients find everything they need in the same place, in your oasis. There is no exact number of product or services a beauty salon must offer, but never ever offer least than the competitors. Again, plan plan plan! Hair and Beauty Salon Business plan , that should be your focus. 

2. Define your Target Market

Even though there are many beauty salons, there are different types depending on the target. Some for example, are for men, other for women, other for both and so on... and as I stated before, even though the idea of having a beauty salon is there, people have to do a profound analysis on the message, on what do they want to communicate to others.

WHAT DO YOU WANT FOR YOUR SALON TO SAY?"

WHAT DO YOU WANT FOR OTHERS TO SAY ABOUT YOUR SALON?"

WHAT IS THE HIDDEN MESSAGE?"

WHOM DO YOU WANT TO GIVE THE MESSAGE TO?"

Defining a target market does not only mean to think "oh ok, my beauty salon will be for both, men and women" No. It goes way beyond that. It is one of the parts of the business plan that requires the most analysis because it requires to stop everything and about the buyer's journey . People need to understand the process the buyer will go through in order to get to that precise beauty salon. And also, the key message.

"What will I do to get my customers to understand and retain the message I want to give to them?"

3. Creating a Marketing Plan

We are not done with the planing yet! We have the strategy, now lets go to marketing. In this stage people have to analyze and think which is the best marketing tool for the business. Is it people? Is it social media?

For some hair and beauty salon business , when a client leaves with a new look, THAT is marketing. Some say their client wears the marketing and that is why most of a the clients of a beauty salon are referrals from existing clients. 

It is important to note that research has shown that word of mouth is the best advertising for this type of business. Although as everything, it depends on many factors.

4. Figure the Finances Out

And here we go... the tough part, excel sheets. What is the financial goal? Is it to be a profitable business in the first month? To have a break-even in the 6th month? Number time! This is where you write down everything. Fixed costs, variable costs, every single thing that will involve money.

A sales forecast is extremely important. People need to have expectations on income even if they're only approximate. This is so managers know how much are will they be able to spend during the years and what will be the project that gives the hair and beauty salon profits.

Owning a beauty salon business is a great idea because of its potential, it has potential growth (it never stops growing), it gives a great amount of profit and it will never end.

Beauty salons have been on the market since a long time ago; people always need to have their hair cut, nails done, a massage is always a good idea, etc. But it is important for people to know that getting things up and going involves planning, remember our focus? Hair and Beauty Salon Business Plan! Thinking and analyzing. If you do things the right way from the beginning, there will be fewer problems. 

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Unlock the Secrets: How to Start a Spa Business in the Philippines Like a Pro

Are you interested in starting a spa business in the Philippines but not sure where to begin? Look no further. In this article, we’ll unlock the secrets to starting a successful spa business in the Philippines like a pro. From understanding the thriving spa industry in the country to designing your dream spa, we’ve got you covered.

Firstly, it’s essential to understand the spa industry in the Philippines. The spa industry is a rapidly growing market, with an increasing demand for luxury spa services . Secondly, it’s crucial to know the legal requirements and regulations for opening a spa business . We’ll give you the inside scoop on everything you need to know, so you can avoid costly mistakes.

Once you’ve got the legalities covered, it’s time to focus on designing your dream spa. From choosing the right equipment to designing your interior space, we’ll provide you with tips on creating a relaxing and luxurious atmosphere that will attract and retain customers.

Marketing your spa is also crucial for success. We’ll share our strategies on how to attract customers and build your brand in the highly competitive spa industry in the Philippines. Lastly, managing your spa business is essential to ensure its long-term success. We’ll provide you with the essential skills and tools you need to manage your business effectively.

Are you ready to dive into the exciting world of spa business in the Philippines? Keep reading to unlock the secrets to starting a spa business like a pro.

Table of Contents

Discover the Thriving Spa Industry in the Philippines

The spa industry in the Philippines has been growing rapidly over the years, attracting many investors and entrepreneurs to start their own spa businesses. With the increasing demand for relaxation and wellness services, the spa industry has become a lucrative business opportunity for those who are looking to enter the market. The spa industry in the Philippines is not only thriving but also diverse, with a variety of spa types and services to offer.

Starting a spa business in the Philippines can be a rewarding experience. However, it can also be challenging, especially for those who are new to the industry. In this article, we will guide you through the process of starting a spa business in the Philippines like a pro.

Understanding the Spa Industry in the Philippines

The spa industry in the Philippines is one of the fastest-growing sectors in the country’s tourism industry. It is driven by the increasing demand for wellness and relaxation services, as well as the growing middle class who are willing to spend more on self-care and wellness. The spa industry in the Philippines is diverse, offering various types of spas, such as hotel spas, day spas, medical spas, and destination spas.

Steps to Start a Spa Business in the Philippines

• Market Research: Conduct market research to identify your target audience, competition, and demand for your services.
• Business Plan: Create a comprehensive business plan that includes your business goals, target market, marketing strategies, financial projections, and operational plan.
• Location: Choose a strategic location for your spa business that is easily accessible, visible, and in a commercial area.

Legal Requirements for Starting a Spa Business in the Philippines

Starting a spa business in the Philippines requires compliance with legal requirements and regulations. Here are some of the essential legal requirements:

• Business Registration: Register your business with the Department of Trade and Industry (DTI) or Securities and Exchange Commission (SEC).
• Permits and Licenses: Secure permits and licenses from the local government, such as mayor’s permit, sanitary permit, and fire safety permit.
• Employment Compliance: Comply with employment regulations, such as providing benefits, minimum wage, and safe working conditions.

Starting a spa business in the Philippines can be challenging, but with the right knowledge and strategies, it can also be a profitable business venture. Keep reading to learn more about the essential steps and tips on how to start a spa business in the Philippines.

Get the Inside Scoop on Legal Requirements and Regulations

If you’re planning to start a spa business in the Philippines, it’s important to know the legal requirements and regulations to ensure that your business operates smoothly and without any legal issues. Before starting your spa, make sure to obtain the necessary permits and licenses. You will need to register with the Department of Trade and Industry (DTI), Bureau of Internal Revenue (BIR), and the local government unit (LGU) where your spa will be located. You may also need to secure a barangay clearance, sanitary permit, and fire safety inspection certificate.

Aside from the permits and licenses, it’s important to comply with the regulations set by government agencies. For instance, the Food and Drug Administration (FDA) regulates the use of products in spas, while the Department of Labor and Employment (DOLE) has guidelines on employee benefits and labor standards. To ensure compliance, make sure to regularly check with the relevant agencies for updates and changes to regulations.

Permits and Licenses You Need

• Department of Trade and Industry (DTI) Business Name Registration
• Bureau of Internal Revenue (BIR) Registration
• Local Government Unit (LGU) Permit and Mayor’s Business Permit
• Barangay Clearance
• Sanitary Permit from the City Health Office
• Fire Safety Inspection Certificate

Compliance with Government Regulations

• Food and Drug Administration (FDA) regulations on product use
• Department of Labor and Employment (DOLE) guidelines on employee benefits and labor standards
• Philippine Health Insurance Corporation (PhilHealth) compliance for employee health insurance

Consult with a Lawyer and Accountant

Starting a spa business in the Philippines can be complex, especially when it comes to complying with legal requirements and regulations. It’s best to consult with a lawyer and accountant to ensure that your business is in compliance with all laws and regulations. A lawyer can guide you through the process of securing permits and licenses, while an accountant can help you with tax compliance and financial planning.

By following the legal requirements and regulations, you can establish a reputable and successful spa business in the Philippines.

Design Your Dream Spa: Tips on Interior Design and Equipment

If you’re planning to open a spa, creating a welcoming and relaxing environment is crucial to attracting and retaining clients. Here are some tips on interior design and equipment to help you design your dream spa.

Firstly, consider the overall ambiance you want to create. Warm, natural tones and soft lighting are popular choices for creating a relaxing atmosphere. Think about incorporating elements of nature, such as indoor plants, to enhance the calming environment.

Interior Design Tips

• Choose a color scheme that promotes relaxation and calmness.
• Invest in comfortable and high-quality furniture, such as massage tables and lounge chairs.
• Create a space for clients to relax before and after treatments, such as a meditation room or lounge area.

Equipment Tips

• Invest in high-quality equipment, such as steam rooms and saunas, to offer a variety of services.
• Ensure your equipment is regularly maintained and up to date with the latest technology.
• Consider offering unique services, such as salt rooms or cryotherapy, to stand out from competitors.

It’s also important to keep in mind the functionality of your space. Think about the flow of traffic, and ensure that your layout allows for easy movement and accessibility for all clients.

By following these tips on interior design and equipment, you can create a spa that offers a serene and relaxing environment for your clients to escape the stresses of everyday life.

Marketing Your Spa: Strategies to Attract Customers and Build Your Brand

Creating a beautiful and relaxing spa is only half the battle. To succeed in the highly competitive spa industry, you need to have a solid marketing strategy to attract customers and build your brand. Here are some tips to help you get started:

Know your target audience: Understanding the needs and preferences of your target audience is key to creating effective marketing messages. Consider the age, gender, lifestyle, and interests of your ideal customer and tailor your marketing efforts accordingly.

Leverage social media:

• Facebook: Create a Facebook page for your spa and regularly post updates, promotions, and engaging content that resonates with your audience. Encourage customers to leave reviews and share their experiences on your page.
• Instagram: Showcase the ambiance, treatments, and amenities of your spa with stunning visuals on Instagram. Use hashtags to increase your reach and engage with your followers by responding to comments and direct messages.
• YouTube: Create video content that showcases your spa’s services and expertise. This can include tutorials, behind-the-scenes footage, and interviews with your staff.

Offer promotions and loyalty programs:

• Discounts: Offer introductory discounts or package deals to entice new customers to try your services. Consider partnering with other local businesses to create joint promotions.
• Loyalty programs: Reward repeat customers with discounts, special offers, or exclusive access to new treatments or events. Encourage customers to sign up for your loyalty program by offering incentives like a free treatment or product.
• Referral program: Encourage your existing customers to refer their friends and family to your spa by offering a discount or free service for each referral. Word-of-mouth marketing is one of the most powerful forms of advertising.

By implementing these strategies, you can attract more customers to your spa and build a strong, recognizable brand. Remember to track your results and adjust your approach based on what works best for your business.

Managing Your Spa Business: Essential Skills and Tools for Success

If you’re planning to start your own spa business, there are several essential skills and tools that you need to have to ensure your success. One of the most important skills is management. As the owner, you’ll be responsible for overseeing all aspects of the business, including finances, marketing, and operations. Additionally, you’ll need to have excellent communication skills to effectively interact with your clients, employees, and vendors. Another important skill is problem-solving. As a business owner, you’ll encounter challenges and setbacks, and the ability to think critically and come up with solutions is crucial.

Another essential tool for spa business success is technology. From online booking systems to social media marketing, technology can help streamline your operations and reach a wider audience. Additionally, having a robust customer relationship management (CRM) system can help you manage your client data, track sales, and analyze customer behavior to make informed business decisions.

Effective Team Management

Team management is an essential aspect of running a spa business. You need to hire, train, and manage your staff to ensure your clients receive the best possible experience. To effectively manage your team, you need to have a clear understanding of your business goals, create a positive work culture , and provide ongoing training and development opportunities for your employees. Encouraging open communication and feedback is also crucial to fostering a positive work environment.

Financial Management

• Financial management is another critical aspect of running a successful spa business. You need to keep track of your expenses, revenue, and profits to ensure your business remains financially sustainable. Creating a budget and regularly reviewing your financial reports can help you make informed business decisions and identify areas for improvement. You may also want to consider working with a financial advisor or accountant to help you manage your finances effectively.
• Marketing is essential for attracting new customers and building brand awareness. From creating a strong brand identity to developing targeted marketing campaigns, there are several strategies you can use to promote your spa business. You may want to consider working with a marketing professional or agency to help you develop and execute a comprehensive marketing plan.

Continued Learning and Development

Continued learning and development is essential for staying up-to-date with industry trends and best practices. From attending conferences and workshops to networking with other spa professionals , there are several opportunities for ongoing education and professional development. You may also want to consider pursuing industry certifications to demonstrate your expertise and build credibility with clients.

Frequently Asked Questions

What are the legal requirements to open a spa business in the philippines.

The legal requirements to open a spa business in the Philippines include registering your business with the Department of Trade and Industry (DTI), obtaining a barangay clearance, securing a mayor’s permit, and getting a certificate of registration from the Bureau of Internal Revenue (BIR). It is also important to comply with the regulations set by the Department of Health (DOH) and the Philippine Regulatory Commission (PRC).

How much does it cost to open a spa business in the Philippines?

The cost of opening a spa business in the Philippines depends on several factors, such as the location, size, and type of services offered. On average, it can cost around Php 500,000 to Php 1 million or more to start a small to medium-sized spa. This includes expenses for equipment, supplies, rent, permits, licenses, and initial marketing expenses.

What are the most profitable spa services in the Philippines?

The most profitable spa services in the Philippines include massages, facials, body scrubs, and other wellness treatments. These services are highly sought after by local and foreign tourists, as well as by residents who want to de-stress and pamper themselves. Offering specialized services like nail care, hair removal, and acupuncture can also boost profitability.

How do I market my spa business in the Philippines?

To market your spa business in the Philippines, you can use a combination of online and offline marketing strategies. These include creating a professional website, listing your spa on online directories, offering promotional packages and discounts, partnering with hotels and resorts, and participating in local events and festivals. Social media platforms like Facebook and Instagram can also be used to showcase your services and interact with potential customers.

What are the essential skills for managing a successful spa business?

Essential skills for managing a successful spa business include knowledge of spa treatments and products, excellent customer service skills, financial management, and marketing skills. You should also have the ability to hire and manage employees, maintain a clean and comfortable environment, and prioritize the safety and well-being of your customers.

What are the common challenges faced by spa business owners in the Philippines?

Common challenges faced by spa business owners in the Philippines include intense competition, high operational costs, seasonal fluctuations in demand, and difficulty in finding and retaining skilled employees. Managing customer expectations and dealing with customer complaints can also be challenging. It is important to stay updated on industry trends and regulations, maintain a strong online presence, and consistently improve your services to stay competitive.

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How to Write the Perfect Salon Business Plan in 6 Steps

Discover how to craft a winning salon business plan in just six steps! Boost your salon's success with expert tips, market analysis, and strategy insights.

No credit card required.

As a salon owner, having a well-thought-out business plan is essential to the success of your business. A salon business plan outlines your business goals, market analysis, marketing strategies, financial projections, and other key details, serving as a roadmap that guides you through the process of starting, running, and growing your salon. In this article, we’ll go over the key elements of a salon business plan and provide tips on how to write the best business plan for salons in 2023.

How Much Does It Cost to Run a Salon? 

Before you start writing a salon business plan, it’s important to get an idea of the startup and ongoing costs. As we discuss in this article , the costs of starting a salon range from $62,000 for an existing salon to $90,000 for a new operation. With some of the expenses, you’ll incur one-time costs – other expenses will be ongoing such as supplies and inventory. Here are some of the typical costs associated with starting a salon: 

Existing Salon 

When you buy an existing salon, be it a hair salon or nail salon, you save on the costs of buildout, salon equipment , and salon marketing, assuming the salon already has some of these elements in place. Here’s what you can expect to pay for the following:

• Rent deposit: $4,500
• Buyout of current salon: $10,500
• Leasehold improvements: $15,000
• Equipment: $10,000
• Initial supplies: $8,000
• Initial inventory: $4,000
• Certifications and licenses: $4,000
• Marketing: $5,000
• Legal or consulting fees: $1,000

Grand total: $62,000

The upfront costs of building out a brand-new salon, marketing it to local clients, and getting the business up and running will likely exceed those of buying an existing salon. Here are the typical expenses you can expect to incur for a new salon:

• Buyout of current salon: $0
• Leasehold improvements: $35,000
• Equipment: $25,000
• Marketing: $8,000

Grand total: $89,500

You may also want to budget for the following:

• If you need a loan or financing to cover startup costs, expect to pay interest rates of 1.25% to 10%.
• Salon insurance ranges from $50 to $1,000 per month.
• Salon booking software and a point of sale (POS) system range from free to $500 per month. GlossGenius starts at an industry-low $24 per month with low payment processing fees and includes a website, a branded card reader, and other extras.
• A salon website can cost you thousands, but with GlossGenius, it’s included free! Beautiful and customizable, your website is packed with scheduling features and is easy to navigate, helping to increase bookings and future appointments.

How Profitable Is Owning a Salon?

If you owned a salon during the pandemic, no doubt you experienced your fair share of struggles between lockdowns, closures, and reduced business hours. According to Statista , the U.S. market size of beauty salons dropped from $69 billion in 2019 to $42.3 billion in 2020. Fortunately, things are beginning to look up for hair, skin, nail, and other types of salons, with the market valued at $53.6 billion as of 2022.

You can take advantage of the comeback by approaching your salon startup with a solid plan in place, a realistic budget, and a marketing strategy. A beauty salon business plan can help you identify any questions , opportunities, and potential roadblocks so you can have the best chances of getting funding, earning a return on your investment and achieving profitability. The more you control your expenses and market your business successfully, the more profitable you will be – so be sure to take your time creating a salon business plan for your needs.

6 Steps to Writing a Hair Salon Business Plan

The business plan is the most important document for any salon owner. It’s a formal, written plan that describes the future of your business and how you intend to achieve it. A good business plan will help you stay on track, get funding if you need it, and avoid costly mistakes as you navigate through choppy waters in this industry. 

We know what you’re thinking – that a business plan is a monster of a document that will take a ton of time to create. But, it doesn’t have to be. In fact, you can pare it down to one page and still have an effective, clear document that outlines everything you (and any other interested parties) need to know about your new salon. Below are six steps to writing a salon business plan that will ensure your success.

Here are six steps to creating your salon business plan:

• Create an Executive Summary
• Map Out Your Branding Vision
• Research Your Industry
• Create a Client Acquisition Strategy
• Management and Operations
• Financial Planning

Let's dive deeper into each one.

1. Create an Executive Summary

The executive summary is the first section of your business and management plan and provides a brief overview of your salon business. This section should include your mission statement , business objectives, target market, products and beauty services, and financial projections. It should be concise, engaging, and compelling to grab the attention of potential investors, lenders, or partners. It also serves to clarify your goals so you can come back to them anytime you need a refresher or wish to update this information.

Your executive summary is just that: a summary. This means you do not have to get into every detail in this section; you’ll provide a more complete analysis in the individual sections of your business plan. Here are some key elements to include in the executive summary:

• An opening “hook.” The first sentence or two of your executive summary needs to draw in the reader; otherwise, your business plan might not get the attention it deserves. Grab your audience’s attention by sharing a compelling fact about your company, a memorable story related to your industry, or some other well-crafted description of your business that will make your business plan stand out.
• Summary of your business. Describe what your company does, what services and products you will offer, who will run the company, and other high-level details.
• Market analysis. Briefly describe the market landscape for your own salon to show there is a proven need for your services. Be sure to address who your competitors are, any advantages you have compared with others, and any research you’ve conducted to demonstrate there is a demand for your services in the area. 
• Products and services. Highlight the specific services your salon will offer, any products you will sell, and any other information showing that your salon will fill the need you’ve described in your market analysis summary – and how you’ll do it better than the competition.
• Financial information and projections. Give your reader an overview of your business financials, including any current sales and profits, the funding amount you’re looking to acquire or any funding you already have, and your projections for growth.
• Future plans. Tell your reader exactly how you plan to use any funds you acquire and how their investment could pay off. Imagine where you want your business to be in a year, five years, and so on. Make it clear how funding will help you get there.

2. Map Out Your Branding Vision

Branding isn’t just about creating a unique identity for your business; it’s also about helping people connect with that identity and remember your name anytime they need your services. Branding helps both current clients and new customers recognize who you are and why they would want to seek out your salon. In your business plan, be sure to map out your branding vision by including:

• A description of your salon business. Describe who you are and what you do.
• Your mission and vision statement. Briefly summarize why your salon should exist, its primary objective, and how you plan to achieve your goals.
• An overview of your products and services, your pricing strategy, and any unique features or benefits that differentiate your salon from others in the market. Discuss the specific services you will offer and their price points, plus any product lines you will carry, such as hair care products, makeup, or skincare.
• A description of the target audience and customer demographics. Include relevant research on your market and the people who will buy what you’re offering.

3. Research Your Industry

This section should include a market analysis that provides an in-depth look at the salon industry, including trends, customer demographics, competition, and opportunities. It should also identify your target market and describe how you plan to reach them. This section should demonstrate your knowledge of the market and your ability to capitalize on it, with details on:

• The industry and trends. Provide an overview of the salon industry with relevant statistics, especially those that pertain to your area of expertise and geographic location.
• Your competition. Conduct a competitive analysis to gain insights into your competition, their marketing strategies, and the services and products they offer. The goal is to show how you will capture market share using stronger business strategies that set you apart from your competitors.
• Market segmentation. With market segmentation , you break down a larger target market into a smaller group of customers you plan to serve. Demographics such as age and income, geographic location, lifestyles or psychographics, and behavioral factors like price sensitivity or product loyalty are just a few approaches to market segmentation that you can consider for your business plan.
• SWOT analysis. The SWOT analysis is a way to assess your strengths, weaknesses, opportunities, and threats. It's an effective method for identifying your business strengths and weaknesses as well as external factors that may affect the success of your salon business.

4. Create a Client Acquisition Strategy

The client acquisition section of your salon business plan should describe how you plan to attract and retain customers as a hairstylist . It should outline your advertising and promotional strategies, such as social media marketing , SMS marketing , email marketing, and referral programs. This section should also discuss your sales strategy, including how you plan to increase sales and generate revenue.

• Description of marketing channels and tactics . Outline the different channels you will use to generate leads, such as social media, blog articles, emails, and text messages. 
• Sales forecasting and projections. Discuss how you will convert leads into clients, nurture them through the pipeline, and retain a loyal clientele. Include a realistic estimate of the quantity of goods and services you can sell within the forecast period (for example, monthly, quarterly, and annually). For a salon business, it’s helpful to determine the customer lifetime value of your typical client as well as the customer acquisition cost. You can then break down this number for the forecast period to determine the costs and sales projections.
• Customer acquisition and retention strategies. Include which strategies you will use and the associated costs, such as pay-per-click (PPC), search engine optimization (SEO), and paid ads on social media. Describe how you will retain customers – for example, through loyalty programs and responses to feedback and reviews on social media and Google. ‍
• Pricing strategy. It’s critical that you price your services and products competitively to drive revenue and profits. Detail the pricing strategy you plan to implement based on your buyer persona and competitive analysis. The strategy could be based on a variety of factors, but geographic location and local competition will likely be the biggest factors dictating your salon pricing strategy.

5. Management and Operations

The management and staffing section of your salon business plan should describe the organizational structure of your salon, including the roles and responsibilities of each staff member. It should also discuss your hiring and training practices, employee benefits , and compensation plans. This section should demonstrate your ability to attract and retain a skilled and motivated team, with information on your:

• Organizational structure. Spell out who runs the show and who reports to whom.
• Management team and staff. If you plan to hire a manager , look for someone who has experience in the industry and understands what it takes to run a salon. This person should also have good people skills and be able to work well with others.
• Business operations and processes. Consider which other support personnel you will need, such as an accountant and a dedicated marketing specialist. Don’t be a hero; you can’t do it all alone. ‍
• Legal and regulatory requirements. Include information on any legal advice you will employ to stay compliant with local, state, and federal guidelines.

Note that with GlossGenius, you can manage your team and collaborate with them to make your operations run more smoothly. Our software helps you delegate, mentor, and partner with others based on customizable permissions that let you grant as much or as little access as you wish. Easily manage your scheduling, booking, commissions, and reporting from one intuitive dashboard.

6. Financial Planning

Financial planning is a crucial section to include in any salon business plan. A cash flow forecast shows the anticipated amount of money coming into the business, as well as what you will spend on expenses. It also projects growth over time, which allows you to make predictions about future revenue and expenses so that you can better plan for them in advance.

The best way to get started with your financial projections is by creating an income statement (also called a profit and loss statement), which breaks down all income sources by category (e.g., retail sales and commissions), along with their associated costs (e.g., salaries). This will help provide insight into where your profits are coming from as well as areas where they could improve. Here are some key areas to cover in your salon business and marketing plan:

• Revenue and expense projections. Your revenue projections should consider the number of clients you expect to serve, as well as the average price per service. Your expense projections should reflect all costs associated with running your salon, such as utilities, rent, and supplies.
• Capital requirements and funding sources. Detail how much money you need to start and run your small business, including all costs associated with opening the salon. Describe the funding sources that you intend to use for starting your salon business, whether from personal funds, salon loans , or investors.
• Break-even analysis and profitability projections. A break-even analysis is a financial tool that shows how much revenue you need in order to cover your fixed costs (rent, utilities, etc.) and variable costs (such as salons supplies and staff wages). Profitability projections show how much profit you expect from your salon business for each year of operation. This is based on your estimates of revenue and expenses. You can use this information when seeking funding from investors or lenders.
• Financial ratios and metrics. A financial ratio is a measurement of the relationship between two numbers, usually expressed as a percentage or a fraction. For example, the working capital ratio compares your current assets to liabilities; this metric allows you to measure liquidity. Include the appropriate ratios and metrics in your business to demonstrate your company’s financial health.

A well-written salon business plan is essential for the success of your business. It provides a roadmap for achieving your business goals, attracting investors, and securing funding. By following the tips outlined in this article, you can write the best business plan for your salon and ensure your salon’s success!

As you’re creating your salon business plan, remember to start your free trial with GlossGenius and give yourself the best chances for success. From salon management to payment processing, we’ve got your new salon covered – making it easier to get up and running sooner rather than later.

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Free Hair and Beauty Salon Sample Business Plan PDF

Elon Glucklich

6 min. read

Updated February 7, 2024

Looking for a free,  downloadable hair and beauty salon sample business plan Word doc  or  PDF  to help you create a business plan of your own? Bplans has you covered.

Keep in mind that you don’t need to find a sample business plan that exactly matches your business. Whether you’re launching an upscale, full-service salon in a bustling city or a neighborhood barbershop, the details will be different, but the bones of the plan will be the same.

Are you writing a business plan for your salon because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company.

No two salons are alike. Your business model will be different if you’re renting space to independent hairstylists, rather than taking on employees, for example. So take the time to create your own financial forecasts and do enough market research so you have a solid plan for success.

• What should you include in a hair and beauty salon business plan?

Your hair and beauty salon business plan doesn’t need to be hundreds of pages—keep it as short and concise as you can. You’ll probably want to include each of these sections:

• Executive summary
• Company summary and funding needs
• Products and services
• Marketing plan
• Management team
• Financial plan

One of the things that makes a salon business plan different from some service-based business plans is that you might decide to offer a combination of products and services.

Maybe you’ll sell shampoo, beard oil, or other cosmetics and beauty products, in addition to offering services like haircuts, manicures, or massages. If that’s the case, make sure you include your ideas for upselling products to customers to increase the value of every appointment you book.

Here’s an example of a salon business plan outline.

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• The 7 elements of an effective hair and beauty salon business plan

1. Executive Summary

The  executive summary  provides a high-level overview of your business plan. It should outline the objectives of your hair and beauty salon, such as to offer high-quality services, to expand the client base, or to break into a new market.

Your salon’s mission statement should describe its purpose and what sets it apart from competitors. For example, you may aim to offer a personalized experience for each customer or provide eco-friendly hair and beauty services.

The keys to success are the factors that will help your salon thrive. These may include a prime location, hiring experienced staff, excellent customer service, or a unique product and service range.

2. Company Summary and Funding Needs

The company summary offers a detailed overview of your salon, including its legal structure , location, and history. Also, it highlights your salon’s funding needs if you are seeking financial support.

Clearly state how much funding you need, what you will use it for, and how it will benefit the salon. For instance, you may need funds to renovate the premises, purchase equipment, or boost marketing efforts.

3. Salon Products and Services

This section should detail the products and services your hair or beauty salon will offer. These may include haircuts, hair treatments, manicures, pedicures, massages, and beauty treatments.

If you plan to retail beauty products such as shampoos, conditioners, or skin care items, include this information too. Highlight any unique services or products that differentiate your salon from competitors.

4. Salon Marketing Plan and Analysis

Your marketing plan should outline the strategies you will use to attract and retain customers. These strategies might include social media advertising, loyalty programs, partnerships with local businesses, and special promotions.

Additionally, you should conduct a thorough market analysis. Understand your target customers, their preferences, and their spending habits. Identify your competitors, their strengths and weaknesses, and how you can differentiate your salon.

5. Salon Management Team

The management team section provides information about the salon’s key personnel. This could include the salon owner, managers, stylists, beauticians, and other staff members. Highlight their roles, responsibilities, qualifications, and experience.

If you plan to rent chairs to independent stylists rather than hiring employees, describe how this arrangement will work and the advantages it offers for your business.

6. Financial Plan and Forecasts

Your financial plan should present detailed financial projections, including revenue, costs, and profitability. Include a cash flow statement, income statement, and balance sheet. This section should clearly demonstrate the salon’s potential profitability and financial viability.

Also, outline your pricing strategy. How have you priced your services and products, and how do these prices compare with competitors? What are your wage costs, and how will they affect your profitability?

7. Appendix

The appendix includes any additional supporting documents that complement your business plan. This might be market research data, lease agreements, employee contracts, or licensing and permit documents.

While not always necessary, the appendix can provide valuable context and proof to support your business plan’s content.

• Crafting a Successful Salon Business Plan: Key Considerations

Understanding your target clientele’s needs is crucial to writing a hair or beauty salon business plan that you can put into action. To ensure your business plan is the foundation of a growing operation rather than just checking boxes, ask yourself whether you’re taking these considerations into account.

1. Comprehensive Services Offering

In the beauty industry, customer preferences vary significantly, and staying versatile in your offerings can help cater to a broader clientele. Include a wide range of services that cater to different demographics. You may also consider offering unique or specialized services that distinguish your salon from others.

2. Pricing Strategy

Pricing can make or break your salon. Competitive pricing attracts customers, but your pricing should also cover your costs and ensure profitability. Effective market research can help you understand the average cost of services in your area, which you can use to set your prices competitively.

3. Salon Atmosphere

The ambiance of a salon plays a significant role in attracting and retaining customers. Consider factors like décor, cleanliness, and customer service when planning your salon.

4. Staff Training and Expertise

Quality service is crucial in the hair and beauty industry since word-of-mouth exposure from existing clients is a major driver of new business. Investing in ongoing staff training ensures that your team stays updated with the latest trends, techniques, and customer service skills.

5. Digital Presence

Although word of mouth is one business driver, many of today’s customers research online before visiting a salon. Having a strong online presence, including a well-designed website, effective search engine optimization and active social media accounts, can significantly boost your business.

• Download your free hair and beauty salon sample business plan PDF

Download this  hair and beauty salon sample business plan PDF  for free right now, or visit Bplans’ gallery of more than  550 sample business plans  if you’re looking for more options.

There are  plenty of reasons  salon business owners can benefit from  writing a business plan —you’ll need one if you’re seeking a loan or investment.

Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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How to Open a Salon in 2023 (Checklist & PDF)

Are you planning on opening a salon?

That’s awesome!

What will it be? A hair salon, nail salon, barbershop, or maybe a full-service beauty salon or spa?

I’m so happy that you landed on this article.

This is going to be an important read for you.

If you’re looking for a checklist on how to start a salon business, you’re exactly where you need to be.

Despite the inflation in 2023, the salon industry is on a rise.  People are spending more and more on beauty and it’s never been a better time to start a salon than now.

But let’s talk straight here.

Many salon businesses still fail.

And the main reason salon startups fail is not because of lack of money or poor services.

It’s because of poor planning.

This is why this article is so important to you.

In fact, this is why TheSalonBusiness.com, and all the resource I publish here, even exists.

Today, you’ll get a complete “opening a salon checklist” with all requirements for opening a salon.

If you’re on a tight budget, I’ll even show you how to open a salon with no money.

It’s quite a long article. But probably the best investment of time you can make today.

Pin it to your Pinterest board or bookmark the page so that you can come back to it later.

Are you ready to realize your dream?

Let’s go through how to start a salon business.

↓ Pin it for Later ↓

Hear how My Erlandsson Started her Salon Business and Opened her Two Hair Salons

We’ll soon dive into the opening a salon checklist, but if you want to hear the full story of what the experience of going through this is like, watch the video below where I’m interviewing My about how she went from idea to building two thriving hair salons.

How to Open a Salon?

There are 29 actions I strongly recommend you take when opening a hair or beauty salon. Below table is an opening a salon checklist you can follow to ensure you cover all you need to get done. I will go into each one in detail in this article.

These actions are relevant independently on if you’re planning to start a hair salon, nail salon, barbershop, tanning salon, beauty salon or spa.

Before we dive into each item on the opening a salon checklist, I just wanted to tackle the question I often get: How much does it cost to open a salon and can I open a salon with no money? 

Get Your Mind Ready to Start a Salon Business

You’re embarking on an exciting journey.

But it will not always be fun and easy. Opening a salon comes with responsibility and hard work. And it will be challenging at times. 

This is why the first part of the opening a salon checklist is focused on what you can do to prepare yourself. 

1. Build Your Salon Business Knowledge & Experience

Maybe you’re currently employed in a salon. Or you’re still in school.

Independently on where you are, your focus needs to be on learning the art of running a salon business now.

Obsess about learning.

The more you learn, the more you earn, when it comes to running your own business.

Getting a Cosmetology or Beautician’s degree is just the start. In fact, most schools don’t cover the business side of things as well as they should. That’s in fact why I created this blog in the first place. 

And the beauty is that there’s so many places where you can learn today. Just the fact that you’re reading this post right now tells me that I don’t really need to convince you about that 🙂

You’ll need a mix of both practical experience and theoretical knowledge.

Gain Practical Salon Business Experience

Getting some practical experience before you start your own salon can save you a lot of expensive mistakes later.

So if you’re not working in a salon already, get a part time job after school (or wherever you spend your days). Get out there. Listen to what people ask for. Get a feel for how the salon business works.

You can learn tons from just being in a salon and looking at what’s happening in the salon. And now that you know you’ll be starting a salon yourself, you’ll observe the world through a difference lens and see things other people not planning to start a salon will see.

Learn the World of Business

There’s blogs, YouTube, podcasts etc. you can subscribe to for free. Well, I don’t really need to tell you that since you’re reading this now :).

I publish a ton of free blog posts, videos, and courses to support you.

Here’s a few resources I recommend you start with:

• Download my PDF guide to building a thriving salon business
• Sign-up for any upcoming live trainings
• Subscribe to my YouTube channel

That’s probably enough for you to start with 🙂

2. Get a Salon Mentor

You’re not the first one to start a salon.

Many people have gone through the same journey. So why not learn from them?

A mentor is someone you can meet on a regular basis to discuss the challenges and ideas for your new business. Someone who have the experience to guide you and give you perspective on what you’re going through.

I would never have been where I am today without my mentors and I strongly recommend that you look in your network if you know someone with the right experience that you can reach out to.  

3. Articulate a Vision for Your Beauty Business 

You cannot build a house without having first a clear vision and drawing of what that house should look like.

I’m sure you’ll agree with me that if you start building a house without a vision and plan, you’ll end up with a strange and random structure that probably never will be finished.

The same goes for your salon business.

All things are created twice; First mentally; then physically. The key to creativity is to begin with the end in mind, with a vision and a blue print of the desired result. Stephen R. Covey

You need to have a clear and vivid picture of what your salon will look like to be able to get at least close to it. Try to really envision what it will be like when you’ve opened the doors of your new salon. 

What type of clients will you meet in your salon?

What will the salon interior look like?

Will you have staff working for you? If so, what will they be like?

You don’t need to get rational here. Don’t start writing bullet point lists of everything you’ll have. Instead, picture yourself visually in your salon. Try to feel now what feeling you’ll have when you’re there. 

This might sound fluffy but it is proven that having a clear and vivid picture of what your future looks like significantly increases your chances that this is how your salon will end up.

4. Decide the Type of Beauty Business to Start

I’m sure you already have an idea about if you want to start a hair salon, nail salon, barbershop, beauty salon, spa or something else.

But there’s many different types of salons you can start. 

Salon Business Types

These are some of the common types of salon models that you should consider when starting your salon business and there’s also variations to each model that you’ll discover.

Try to get clear on which model that resonates best with your budget, risk acceptance, and desire for freedom.  

5. Define who your Ideal Salon Client Is

Starting your own salon business means you’re the boss – right?

Well, yes and no..

In fact, it’s more as if you just got a new boss..

You might know her, she’s called your client 🙂

So who do you want as your boss?

Your salon exists to serve your clients. If you serve your clients well, you’ll also be rewarded. But all people do not want the same thing. Some have limited budget, some value going to a know salon name, some want a pampering experience, and some have limited time and want a fast service.

This is why it’s important to, already now, decide on who your ideal client is. This way you can design everything about your new salon in a way that speaks to her. 

Because you cannot be attractive to everyone.

When you speak to everyone, you speak to no one Meredith Hill

Get as clear as you possibly can about who your ideal salon client is. Picture her in front of you.

I want you to see her.

She can be a person you already know or a fictive character that you just make up. It doesn’t matter. What matters is that you have a vivid picture of who she, what she likes, and what problems she has. The persona is someone you should have in your head as you make the thousands of big and small decicions about your business over the coming months and year. 

There’s a few questions you can ask yourself as you define who your ideal salon client is.

Who do you want in your Salon?

Maybe the most important one. You’re going to spend a lot of time with your client, so it better be someone who you actually want in your salon or it will be difficult to serve her well in the long run.

How Big is the Market?

It’s good to get detailed in the definition of your ideal client. The more specific you are, the more she will feel like your salon is exactly for her. But, at the same time, you need to make sure there’s actually a sufficient amount of people in the area that fit with the description of your ideal salon client or you may be niching down your salon too much.

You’ll learn more about how to define your salon’s target market as you create your salon business plan .

How Profitable can you Make the Target Salon Client?

You can make most salon clients profitable. However, your choice of salon client will influence your salon’s business model . For example, you can go after the cost-conscious client with low prices and make that profitable. However, your operations will need to follow. Meaning, shorter appointments, basic services, and less attractive salon location potentially. This is why you need to have the overall salon vision in mind when choosing the client to go after.

Does she have a Problem you can Solve?

Finally, you should think about how you deliver value to the target client. And you do that by solving her problems. 

Understand what her problem is and how you can solve it. Your solution will often be part of the salon services you offer but it can also be how you offer them. For example via attractive prices, a rich experience, or convenience.

6. Study Your Competition

Competition is a good thing.

You shouldn’t be scared just because you see other beauty salons in the area.

The opposite actually.

I would get more suspicious if there weren’t any other salons in the area as this may be a signal that there’s no need for one. 

The fact that there’s competition proves there’s a market.

But you should stay close to the competition, understand what they are doing, and what’s working and not working for them. This way you can avoid making expensive mistakes yourself. In fact, coming in later to a market gives you an advantage. You have fresh eyes while they are, in many cases, locked into how to do things which makes it more difficult for them to be innovative and come with new thinking. This is what you will do and that will give you an edge over them.

But how should you study your competition? 

Do a Google Search

One of the most common ways that people will find your salon is via search. Having your salon showing up at the top of the search result page will be crucial for your success. So you should check out who’s currently owning that space in your area and study that salon.

Have a Coffee Outside the Salon Near You

Just spending a few hours looking at what their clientele looks like, how they meet their clients, and what they offer them can give you a lot of insight into the positioning of their salon and what clients they serve.

Follow them on Social Media

Like with search, social media is an important marketing channel for salons . You want to see how they use it and if they have an engaged following. Following them will also give you more insight into what they are doing in the salon and any salon promotions they are currently running.

Browse Other Salon’s Websites

You must go over the websites of all salons in your area. Here you can make note of salon services offered and their pricing . Note all this information down in a spreadsheet or document as you’ll need it when you’re designing your salon offer . 

But you shouldn’t only look at salons in your area. In the end, you want to be different from them. Spend some time also going over other salons’ websites and make notes about their salon branding, marketing, price list, and offer. To help you with this, I’ve pulled together a long list of nail salon websites, hair salon websites, and beauty salon websites here . 

Keep your friends close, but your enemies closer. Mario Puzo

Create your Blue Ocean

The competing salons in your area will influence how big share of the market you can get. This is something we’ll go into in more depth as we start writing your salon business plan .

However, the size of the market is not definite. You can make the market bigger. When you know what competition is up to, you can focus on how you can be different to them. And how you can add additional revenue streams to your salon that they don’t have. 

You can create a Blue Ocean to compete in.

The concept of Blue Ocean Strategy was coined by W. Chan Kim & Renée Mauborgne in their book with the same name . In the book, they make the distinction between a red ocean and a blue ocean where the red ocean is where traditional business compete for market shares. While businesses with a blue ocean strategy go and increase the size of the market by being different from the other.

I’d recommend you to look at competition with that lens.Think about how you can make the market bigger vs. just eating share from your competitors. 

Plan and Setup Your Salon Business

It’s time to build the platform you’ll launch your salon business on. In the coming steps, you’ll be creating your business plan and complete all the requirements when opening a salon.

7. Start Drafting Your Salon Business Plan

Opening a salon is a big project.

And the journey to getting there can seem overwhelming in the beginning. Where do I start and what do I do next?

You need a plan.

And I suggest you start drafting one already now. It doesn’t need to be perfect from start. But it will help you ask the right questions when you move forward with your salon business setup.

Let’s cover an overview of the key components of your business plan.

What is a Salon Business Plan?

A salon business plan is a summary of how your salon business will function and clarifies why it will be successful. It provides a roadmap with goals and milestones to lead your salon to success.

Why do You Need a Salon Business Plan?

The primary reason you need a salon business plan is for you to get in control of your beauty business and to enable the right decisions up front.

A well laid out plan gives you a clear path to follow as you set out while it also helps spot weaknesses in your salon business early. You also need a salon business plan to communicate with others.

If you need to raise money, the bank or investor will want to see your salon business plan before issuing any funds.

Tracking your Progress

Any plan you build is useless unless you’re able to measure and track how you’re living up to the plan. To enable this, you need to get a salon software with strong reporting capabilities that allow you to understand the numbers.

The tool I use and recommend is Mangomint . Not only because of all the powerful reporting features (as shown in the video below), but because it’s simply a pleasure for you, your team, and your clients to use.

What Should a Salon Business Plan Include?

To learn more about all the parts you need when creating your salon business plan, I’ve put together a step-by-step salon business plan guide here .

8. Define Your Salon Start-up Budget

One of the biggest worries for new salon owners is money.

You likely have bills to pay mouths to feed. And it’s hard to predict exactly how much your salon business will generate when.

But you can mitigate this stress through proper budget planning. 

How to Create a Salon Budget

The easiest way to plan out your salon expenses is to create an expense forecast in Live Plan. This allows you to automate the whole process.

If you’re good in Microsoft Excel, you can use that as well of course. 

What’s most important is that you get a realistic budget in place that you can update and maintain as you move forward and learn about what the actual costs are.

But what you you include in your salon expense list? Let’s go over what the common costs are. 

Salon Start-up Costs List

Common  costs when starting a salon  are:

• Rent deposit
• Buying out previous salon owner
• Leasehold improvements
• Salon equipment
• Initial supplies and inventory
• Certifications and licenses 
• Salon insurance
• Salon launch marketing

Your expense forecast should also include the going costs your salon will have. 

Monthly Salon Expenses List

The biggest monthly expenses a salon have are:

• Rent and utility bills
• Product purchases
• Education 

I’ve also put together a salon cost guide that I recommend you go through which covers the topic in more depth. This guide will help you identify the costs you need to include as well as give you some assumptions that you can work with. 

Access the article here: How much does it cost to start a salon?

9. Find a way to Finance your Salon

If you’ve completed the previous step, you should now have an idea of much money you’ll need to start your salon business.

Hopefully you have some money saved for you new venture. But chances are you’ll need more money than that to set your salon venture off to a successful start.

There are of course ways you can get additional funding for your salon start-up. I have summarized the options you have here. Needless to say, you need to use caution and conservative business assumptions when you’re raising capital from other sources than your own. This comes with additional risk which you need to be conscious about.

1. Get an Overview of the Money You Already Have

The best is if you can fund part of your salon using money you already have. Consider what you have on your savings account, if your have any stocks you can sell, if you own a property you can draw credit from, or if you have things you can sell like jewellery or cars.

2. Let Family and Friends Invest in Your Salon

You may have people around you who believe in your venture and are ready to support you. The benefit of this is of course that it eliminates credit approvals and bank fees. However, you want to make sure that you’re not putting your relationships at risk. Thus, I would really only consider accepting friends and family support if you are confident you can return the payment.

3. Use Credit Cards for Short Term Financial Help

Credit cards are commonly used when starting up a business to get short term funds for investments. This can be a great help for your cash flow but you of course need to be certain that you’re able to pay back after the short payment period.

Interest rates for credit cards after the payment period can be high so if you’re not using it safely you can end up in a bad place that you want to avoid.

4. Get a Bank Business Loans for your Salon

There are providers that specialize in small business loans. A popular place to turn for loans is Fundera. They compare different loan providers for you so that you can find the best solution for you.

It can be difficult to get a regular loan from providers if you’re just starting out and don’t have and proven business performance to show. This is where SBA financing comes in.

5. SBA Financing for Salons

If you’re not able to get a regular bank loan you may still be able to get an SBA secured loan. What this means is that the U.S. Small Business Administration guarantees the loan for you. This reduces the risk for the lender and in turn the cost of the Loan.

To find out who offers SBA secured loan, you can compare SBA loan options at Fundera. You should be prepared for that the application process for these loans to be long even if the cost of the loans are typically lower than traditional bank loans. 

So you should apply for your SBA loan as soon as you know you need one.

Financing Summary

It’s not as easy to get good financing when you’re starting a new salon business as when you have a well-established salon and just need additional funds to grow.

You can always check what loans you can get at Fundera. They also have a proven track record of being able to find solutions to new business where the traditional banks have said no.

Even if you can get a loan, you still want to make sure you do not take too high risk yourself. You want to be confident in your ability to pay it back. What will help you get that confidence is a good salon business plan . This is also something that bank will want to see to give you a loan.

10. Decide on your Salon’s Legal Business Structure

You’re making good progress!

You’re starting to get a log of the foundations in place to launch your new salon business. So it’s soon time to officialize your new business!

But before you do, you need to decide what legal structure your business should be.

What Legal Business Structure Should a Beauty Salon Be?

Salon owners can choose from five possible legal structures when starting a salon business: Sole Proprietorship, Partnership, Limited Liability Company (LLC), S Corporation, or C Corporation but an LLC is probably your best option. 

The choice of business structure affects how much taxes you’ll pay, your liability, how much administrative work you need to do as well as your ability to get loans and raise money.  

An LLC business setup protects you from personal liability. It’s only the money that you put into your business that you have at risk. This is the main reason you should consider an LLC vs. a Sole Proprietorship. 

LLCs are also flexible. They don’t require shareholder meetings, a board of director and other formalities that a corporation does.  On top, there’s also more flexibility when it comes to taxation. 

However, the right legal structure could be different for you. There are services like Zen Business that can help you here.

11. Come up with a Good Salon Name

You have reach the exciting (or daunting in some cases) part of your opening a salon checklist.

It’s time to come up with a name for your salon.

There are four questions I recommend you as yourself as you start brainstorming on good salon names for your business.  

A) Does the Salon Name Reflect You and Your Salon?

Your salon’s name should be unique and distinct to you. In order to land on the right name, take 2 minutes to think about how you’d like your salon to be perceived (e.g. classy, creative, or cool) as well as what it is that makes your salon unique. This can be the specific services you offer or the story about why your hair salon exists in the first place.

B) Does the Name Make it Intuitive that it is e.g. a Hair Salon?

You will be using your salon’s name in all your future  salon marketing activities . And in many cases, you only have a split second to communicate who you are.

This is why it’s vital that people immediately understand what type of business you run or you’ll lose their attention. So if you’re using a more cryptic but cool name, you might want to add “Salon”, “Hair”, or “Nails” to the name so that people understand what you’re about.

C) Can you Find an Available Website Domain Name?

Soon after you’ve locked on your salon name, you’ll need to  create your salon website  and business email addresses. To do that, you need a domain name (e.g. examplesalon.com).

As all businesses are increasingly moving online and the cost of a domain name is low, the number of available domain names are becoming fewer. This is why it’s good to do a check already now to see if the name you want is available or you might want to adapt your name.

The easiest way of doing this is by using Namecheap. They allow you to search for names and generate more ideas. If it’s busy, you can try with appending your “hair”, “salon”, or your city to the name. When you find something good, you can grab it at a low price with Namecheap to ensure no one else takes it.

D) What will the Name Look Like as a Hair Salon Logo?

Your hair salon name not only needs to sound good. It needs to look good.

You don’t necessarily need to finalize your logo at this stage but it’s a good idea to at least test what it could look like when you turn it into a logo. As you do this exercise you might realize that certain letters would be better than others which could influence your final hair salon name.

It’s really easy to do this test with Canva. Canva is a free design tool that most entrepreneurs use to design things for their businesses. They also offer a free 30 day trial of their paid plan which gives you access to great logo assets. Thus, I’d suggest you get on the free trial to generate your logo ideas (which you can complete in less than the trial period).

E) Brain Storm Name Ideas

As I get a lot of questions about name ideas, I’ve put together this enormous salon naming guide. It’s a PDF that contains thousands of name ideas while walking you through a process to help ensure you decide on the right name for your business.

Download the salon naming guide PDF here .

12. Register your Salon Business

It’s time to get your business registered with the state.

How you should register your business is determined by the business structure and location. But you’ll likely need to get a tax ID first as well as required licenses and permits for your salon .

This is not difficult but to make life easy for you, you can use a service like Zen Business to set up the business for you.

You just need to select the desired business structure and fill out a simple questionnaire.

This will save you time that you instead can invest into getting your new salon up and running. 

13. Obtain Required Salon Licences and Permits

There’s a few licenses and permits you’ll need when you open a salon. 

We should be thankful that this is the case as it ensure professional knowledge and service quality which protects salon clients. It also keeps unserious players away from our industry. 

Let’s go over what the common ones are.

What Licenses do I Need to Open a Salon? 

The licenses and permits you need to open a salon are:

• State Cosmetology or Beautician’s License
• Salon Retail Seller Permit
• Salon Business Operation License
• Federal Employer Identification Number (EIN)
• Certificate of Occupancy

On top of the above, you’re (in most states) also required to have a salon insurance . I’ll cover what salon insurance you need later on in this guide.  

To learn more about the licenses you’ll need when opening a salon as well as how much you should expect your salon licenses to cost, you can read my complete guide on licences for beauty salons here . 

Build out your Salon Location

Your physical Salon is at the heart of your business. In the coming step, we’ll go through how you find and set up your salon facility.

14. Find a Good Salon Location

Location, location, location.

These are the three most important things for a salon or spa business.

But is the salon location as important as it used to be?

If your salon has a strong presence on social media , you’ll not be as dependent on street traffic as in the past.

Your salon gets visibility and attract clients online instead. This is why I thought the quote from Jeff Bezos was fitting here.

The three most important things in retail are location, location, location. The three most important things for our consumer business are technology, technology, technology. Jeff Bezos

But even if you build a strong online presence, the location of your salon remain important. 

Where you’re located says a lot about you.

And it needs to be convenient for your target client to get to you.

Salon’s based in an area with a high amount of people walking or driving by also need to invest less in marketing their salon . They get that for free thanks to the location. 

But picking the right salon location comes down to much more than street traffic and the convenience for clients to get there.

In fact, in my guide to choosing a salon location , I include a checklist with 21 things that you must consider before signing your lease agreement.

15. Protect Yourself, Your Employees and Your Salon with the Right Salon Insurance

Running a salon comes with risk.

Things will go wrong.

A client could slip and break an ankle. You could accidentally give the wrong advice to a client that causes them injury. One of your staff could get injured. Or you could spill out chemicals during a mobile salon home visit.

These are just some examples of things you’re liable for as a salon owner. And just some reasons why you need to ensure you have the right insurance policies in place for your salon.

It’s natural to look for savings opportunities when starting a salon, but don’t let your insurance be one of them. This could cost you a lot down the line. Some insurances are also required in most states.

Below are common insurances you’ll need even if it can differ depending on the salon type.

You can combine some policies to help you save money. I explain more about that in my guide to salon insurance that you can read here . 

16. Design Your Salon Layout

First impression.

This is the most important thing when people walk into your salon. The experience people have when they arrive is what will set the standard of what type of salon you are and if your salon is right for them.

Your salon is also the workplace for you and your staff. And it’s not laid out in a way that is practical, you’ll soon go crazy.

So when you create your salon layout, you need to balance the appearance with the practicality.

How exactly to layout your salon will, of course, differ depending on your salon dimensions. You can learn more about the recommended common salon room dimensions in my other article .

I have put together a list of salon decor and design ideas that you can check out for inspiration. For more salon design and decor ideas, I think Pinterest is the best platform for free inspiration. I try to pin nice ideas that I come across on my Pinterest board here .

Your salon lighting also plays a massive role in your salon’s appearance. Check out my article about salon lighting design to learn about lighting fixtures and options for salons.

Below are some specific salon design ideas to have in mind as you layout your salon.

Small Salon Design Ideas

It’s natural that your first salon will be smaller which means optimizing the space will be crucial to you. Here’s some small salon design ideas: 

• Make the most of salon daylight. A brighter salon feels more spacious.
• Use a mirrored wall as this creates a perception of larger space.
• Consider to island styling stations vs. against the wall to create more space

Read my article on small salon design ideas for more inspiration here.

Salon Reception Area Design & Layout

The salon reception and retail area should be the first thing clients see as they walk into the salon. 

You want to keep your reception tidy and clean. This is a working space for making bookings, answering phone, and in many case other administrative tasks. But you need to be careful that it doesn’t end up looking messy with paper a stationary lying around.

Don’t hide your retail behind the reception desk. Your client need to be able to pick up products during check out without the receptionist having to give it to them. You can also make room for promotional display and impulse purchase products at the check out. 

The reception waiting area is a good place to promote your services and products. Make sure your retail is visible from the waiting area and have your salon service menu available to people as they wait.

As a rule of thumb, the amount of chairs you need in your waiting area is about half of the number of styling stations you have. Let’s say you have eight styling stations, in that case it should be sufficient with four chairs.

Get more inspiration for salon reception designs here .

Styling Station Area Layout

This is where your clients will spend the most time. Privacy is important here. Your clients need to feel comfortable. It can be tempting to add in more styling stations to grow revenue but you need to consider the space for your clients and also staff working around the chair.

Allow at least 40 inches between salon chairs to avoid that clients sit on each other. And ensure there’s sufficient working space around stations and behind the chair.

Make sure you have good styling station lighting so that your staff can work effectively and the result on the client looks as good as possible.

Get more ideas for styling station designs here .  

Salon Backwash Area Design

The backwash area is not just a place to wash hair. It’s a place where you provide a client experience. It’s also one of your best opportunities to upsell your client on care treatments and talk about the products you’re using to increase sales of retail.

Try to separate out backwash area from the busy salon space. This should be a calm and relaxing area. Allow for 32 inches left to right for each shampoo station and 36 inches behind the station for the stylist.

As a rule of thumb, you need a shampoo station for every three styling stations. That is, if you’re a large salon with 15 styling stations, you should be ok with 3 shampoo stations.

17. Order the Salon Equipment and Tools you Need

Salon equipment is a big expense when you’re just starting a new salon. So you want to get this right. The best place to find salon equipment, at good price, is on the web. 

Most salon equipment manufacturers are now present on Amazon. And this is also where I’ve found the best prices for salon equipment and accessories. 

Equipment Needed for Hair Salons

Some of the large equipment you need as you start out your salon are:

• Salon chairs
• Styling station
• Back wash unit

These will be your bigger expense items. But on top, there’s a number of other things you’ll need like cutting shears, combs & brushes, styling tools, carts, and service accessories. 

To help you build a check list of the things you’ll need, I’ve put together a complete list of recommended hair salon equipment here .  

This list includes cost estimates for each items to help you build a budget. I’ve also included recommendations for the best equipment as well as low cost alternatives if you’re just starting out.

Check out my recommended equipment for hair salons

Create Your Salon Brand and Offer

You should now have your salon location and all the requirements to open a salon in place. Awesome!

But what should you offer in the salon? What’s your salon’s value proposition?

This is what we’ll work on next.

18. Create a Salon Logo

Your logo is a core asset of your brand.

You’ll use it everywhere: social media, website, business cards, and more.. 

So you want to get it right. 

There’s two ways that you can go about creating your logo. Either you hire a salon marketing agency to do it for you or you do it yourself.

Using a salon marketing agency will cost you a bit more but ensures you get a perfect result. However, you don’t actually need to be a Photoshop guru today to create a professional logo. 

You can use Canva to generate a logo for you in just a few minutes using their online service.

For logo inspiration you can check out my list of salon logo design ideas . In the video below, I’m also walking you through some good principles to consider when designing your logo.

19. Design the Visual Identity of your Salon

Your salon brand is much more than just your logo.

Several visual components make up the look and feel of your brand.

• The colors you use
• The look and feel of images
• The font(s) you use
• The way you write and talk

How you put this together is crucial for your brand. You need to do it in a way that resonates with the target client. If you know your target salon client is old men, you probably would not use bright pink colors and pop music in your salon. You’d probably go for a more traditional, dark color, approach. 

Your salon software should allow you to customize the booking experience and client interactions to fit your brand colors.

Below is an example using Mangomint for online booking where you can see how big the difference is when you customize the booking experience to your brand.

You need to be consistent here.

The colors you choose should be reflected in your salon decor, your social media , and your website .

People should feel that they are in contact with your salon even if they don’t see your name and logo. The visual identity should be enough.

This is how you build a strong connection with your client. 

This is how you build a brand.

Let me tell you more in the video below.

20. Create a Strategic Salon Service Menu

Your service menu is at the core of any salon business.

In fact, what you list on your menu and how you use it can make a massive difference to your business.

An issue I see all too often is that salon owners irrationally discount their services. It’s as if they “want to be nice” to their clients and don’t think they can charge full price.

This is one of the biggest issues in our industry.

It comes with several negative consequences. It’s the start of a negative spiral where salon owners aren’t able to pay competitive wages, which in turn leads to high staff turnover, which in the end can lead to burnout of the salon owner.

This needs to end.

And a simple way to deal with it is by being disciplined with your service menu.

Take the time you need to build your menu and set your prices.

If profitability is important to you (which I hope it is), you will price your services differently depending on who delivers the service. You may even offer different prices depending on if the service is booked at peak hours or not.

To be able to support a more sophisticated price list like this, you’ll need intelligent salon software. Below is what it looks like when I’m setting up service in Mangomint .

This platform allows for a lot of flexibility when it comes to pricing and managing your services.

Let’s go through some more principles when building a strategic price list.

Designed with your Target Salon Client in Mind

All your services are there to serve your target client. If you’re not sure what she wants, ask her. She might not know what it is that she wants but as you get to know her better you’ll spot ideas that you can add to further strengthen your offer. 

The Role of Core Services

You’ll have two types of services on your menu. Your core services and your add-on service. 

The core services are your bread and butter. This is the haircut, basic color services or the standard pedicure or manicure. These are the services people would call and book even if they had not seen your menu. 

There’s a natural demand for these services and it’s typically what a first-time client would come in for.

You should avoid discounting these services unless for a special, tactical promotion. But it’s risky. Instead, you should benchmark prices for these services closely with competition in the area. I’m not saying you should have the same price. But if you go higher, you should have a reason why. And the same if you go lower. These are the prices that your client is most aware of when comparing you to other salons. 

For more examples of hair salon core services, check out my separate article with a list of salon services to consider for your hair salon menu .

The Role of Add-on Services

Add-on services are different. As the name suggests, these are additions or upgrades to a client’s visit. It could be a premium version of your core service. Like a balayage color instead of a regular color service. It can also be a care treatment that you add to the appointment.

These are powerful tools to increase the client spend per visit. Some of them will have to be pre-booked, but others can be added on during the visit.

For ideas on add-on hair salon services, check out my salon price list guide here . 

Promoting your Services

There are many ways you can run promotions on your services.

And service promotions can be a very effective tool to drive and grow your business. But you don’t want to do it in a way that undermines your prices. And there’s strategies to enable this. 

To learn more about how you can create salon promotions without undermining your pricing, you can read my salon promotions guide here . 

Keeping your Salon Menu Up-to-Date

Maintaining an up-to-date service menu should be part of your service strategy.

This is how you keep clients for long. You’re their go-to-person for beauty trends and they expect you to bring what’s new to them. By continuously updating your menu you’ll explore new ways of growing your business – you remove what doesn’t work and build on what’s working. 

21. Decide on Your Salon Retail Assortment

Retail sales is a powerful profit driver in your salon revenue model . 

Income from retail is typically split 50/50 between you and the brand where you part adds directly to your profit as the costs associated with retail sales is low. It doesn’t take up extra time from you to sell a product with the service and you only need a small area at your reception with some shelving solution do so. 

But what retail products should you offer?

Let’s go through a few principles to have in mind when designing your salon retail assortment.  

Figure out what your Client Wants

Like with many things in this opening a salon checklist, designing your retail offer start with understanding your target client.

What type of brands is she looking for? What products complement the service offering you’ve designed for her?

By talking to her you’ll get insight into what she’s looking for. Listen and test things out to see what works. 

Don’t Offer Products that Compete

There’s little point having many similar products from different brands. Unless you have a very large retail area and your strategy is to be a one-stop-shop for all retail, it should focus on fewer brands that complement each other.

For example, let’s say you’re a hairdresser, then you could have one good base styling brand, one good base care brand, and one electrical styling brand. On top of that, you’d have specialized brands. For example, a haircare brand for hair loss, or a vegan brand if that’s a feature desired by your client.

Research shows that too many options lead to people not making any choice instead ( Psychology Today ). Your sales of one brand will just cannibalize on the other similar brand so you don’t necessarily make more sales but just need a larger retail area and more brands to be trained with your staff.  

Start with a small core brand offering and then expand. Having fewer brands looks more professional and it’s also easier to upsell a client to a product within the same brand than to recommend products from two different brands.

Working with one product supplier also means you’ll purchase more from them compared to if you were shopping from multiple suppliers. This typically enables you to get more favorable terms with them.

Get the Support Needed to Get your Salon Started

Your new salon is starting to take shape. But you’ll soon realize that you cannot do everything yourself. You’ll need good support systems and partnerships to effectively run your salon business.

In the following section, I’ll cover some of the foundational things you’ll need to get your salon setup.

22. Get a Good Salon Software

The right salon software can be your best friend when starting and running a salon business.

It can drive your business forward through built-in salon marketing features. It gets you in control of your business through the right reporting. It takes care of the mundane tasks you shouldn’t really be wasting your time on – like appointment and inventory management. 

Before you open the doors to your new salon, you need to have a good solution in place. 

Some of the things a Salon Software will help you with are:

• Online Booking
• Client Management
• Automated Text and E-mail Messages
• Inventory Management
• Payroll Management
• Point of Sale Checkout
• Credit Card Payment

I’ve mentioned Mangomint a few times already in this guide. This is the most sophisticated and well designed platform available today.

This thing is beautiful, super intuitive to use for you, your staff, and your clients. It also leverages smart automations that allow you to run your business with much less friction compared to other platforms.

Below is what the Mangomint calendar looks like.

I strongly recommend you give this a try. In fact, it’s free to create an account which you can play around with for 30 days before you need to decide.

Try Mangomint for free here .

If you want to learn how Mangomint compares to other options available, I recommend you go through my list of the best salon software in 2023 .

23. Get a Domain Name and E-Mail Address for your Salon

Few things look as unprofessional as businesses with a Hotmail or Gmail address. Wouldn’t you agree?

When you start your salon you want to make sure you also register a domain name that reflects your business. A domain name is your address on the internet e.g. “yoursalonname.com/.ca/.co.uk”. Registering a domain like that allows you to have it pointing to your website using “www.yoursalonname.com” as well as for your e-mail “ [email protected] ”.

The cost of a domain name is very low. This is why all businesses have them. It also means it can be difficult to find one that is available for your salon. Especially if you want a .com address.

However, given your salon is most likely a local business that only exists in your country, you should register a domain for your specific country. For example, if your salon is based in the UK, you should register a “.co.uk” domain.

Even then it can be difficult to find a name that fits your salon. So you’ll probably need to try a few variations. Let’s say you’re starting a nail salon with the name “Infinity” and you’re based in London UK. You’ll need to try some variations of “Infinity.co.uk”. For example “Inifinitynails.co.uk”, “Inifinitylondon.co.uk”, or “Inifinitynailslondon.co.uk” etc. until you find something that works for you. 

Check what domain names are available using the search bar below.

24. Setup your Salon Website

All salons need a website today.

There’s no getting around that. 

This is the hub of everything you do. This is where all your salon marketing activities points to and this is where clients get to know you before they book their first appointment. 

Your website is often the first impression people have with you.

So you want it to be a good one. 

And it’s critical that the salon software you choose to go with allow you to integrate online booking on your website. Not all salon sofware does this but forces you to link out to a separate website that they control for clients to book.

Not great for the client experience.

Below is how Mangomint solves this. Independently on how you website is designed, the booking widget fades in on top of your website so that people can book, purchase gift cards etc. without leaving your website.

You have a two options when it comes to creating your salon’s website:

You can hire a salon marketing agency to create the website for you or you can do it yourself using a salon website builder .

It’s not difficult to create website today. You don’t need to know any coding to do so. So if you’re on a small budget, this is certainly an option today.

Independently on how you decide to go about this, I recommend you go through one of the lists below to capture some ideas and inspiration for your website.

• Top salon website examples in 2023
• Best barbershop website examples in 2023
• Best spa website examples in 2023

25. Setup your Salon’s Social Media

I’m sure it doesn’t come as a surprise to you that social media is important when you’re opening a new salon.

This is where your clients are and this is how you get your new salon visible in front of them. So you need to start setting up your new salons presence on social media immediately. 

But where should you start? 

I understand this can feel overwhelming at first. And you need to be smart about how you use social media for your salon.

It’s very easy to spend a lot of time posting and interacting with others on social media without it really leading to new clients for you. 

This is why I’ve put together a complete guide to social media for salons here .

This is a good place for you to start when your building out your salon’s social media strategy and setting up your account.

26. Order Salon Business Cards and Branded Material

Now that you’re starting to approach your salon opening, it’s time to order some branded material to use when promoting your salon.

Branded material includes Business cards, salon menu, promotional signs, clothing, etc. All the help bring to life a consistent picture of your new salon brand.

I have compiled a list of salon business card ideas that I recommend you go through for more inspiration.

Scale Your Salon Business

Awesome! Your salon business is setup.

It’s now time to move from being a new salon into a profitable and growing salon business. The final part of this open a salon checklist is focused on accelerating your salon business growth.

27. Build a Salon Marketing Plan to Accelerate Your Business

Now that you have your salon setup, your focus should shift to growing it.

You’ll need more clients through the doors and you need each client to spend more with you.

In fact, the reason I write on this blog is to help salon owners start and grow their business. So you’ve certainly landed in the right place. If you haven’t done so already, I suggest you sign up for one of my free courses that’ll give you more ideas on how you can grow your salon business.

But let’s already now build a plan for how you can grow your salon business.  

How do you Grow a Salon Business?

There are 7 ways you can grow a salon business:

• Grow your salon clientele
• Get your existing clients to visit your salon more frequently
• Sell more services/products per salon visit
• Sell more expensive services/ products during each salon visit
• Reduce your salon operation cost
• Add additional, non-traditional, income streams to your salon business
• Scale up your salon business

You can read my article on how to grow your salon business here . In this article, I break down each driver of salon growth which will help you define how you should measure and track your business to ensure you focus on the right things. 

What Activities can you do to Grow your Salon Business?

Now that you know what you need to focus on an measure to grow your business, what activities should you fill your plan with that will get you there?

Only you can decide what activity is right for you. It all depends on the specific challenges your salon business has. 

To get your started, I’ve curated a list for you with the most effective salon marketing ideas here . I recommend you go over the list and pick a few that you’ll focus on over the coming months.  

28. Hire Salon Staff and Motivate Your Team

You’ll not be able to make your salon successful without a strong team to support you. 

And to scale your business you’ll need to shift your focus to hiring talented staff to grow the business together with you. 

But you cannot only focus on hiring new salon staff. 

You also need to make sure that the team you have in place enjoy their work and perform their best.

Salon staff turnover is a big concern for many salon owners. The cost of hiring and re-training staff is high. 

There’s several strategies you can implement to keep your salon staff motivated .  

In fact, I’ve put together a complete guide for you with 13 ways to motivate salon staff that I strongly recommend you read as you start to grow your team of salon employees. Check out my article  “13 Highly Effective Ways to Motivate Salon Staff”.

29. Review and Adapt your Salon Business Plan

If you’ve followed the opening a salon checklist outlined in this article, you should have a salon business plan in place now. 

But your salon business plan is not a document you create ones and never touch again. 

The opposite.

It’s a living document that you should revise regularly to set new goals for your business and incorporate all the learnings that you’re making on the way.

Because you’ll learn a lot as you open your salon. 

But it’s easy to lose the big picture when you’re busy dealing with the next issue ahead. You need to make sure you find to work on your business and not only in the business.

Take a step back regularly to look at what is working and not. Double down on what’s working and drop the things that didn’t go as expected.

This is an ongoing process.

And this is the art of running a successful salon business. 

Congratulations! 

You made it to the end of this article. Well done!

I told you at the start that reading this through would be the best investment of time you can make today. I hope I delivered on that. If I did, I would be very grateful if you wanted to share this with friends using the social buttons on this page. 

We’ve covered the list of 29 steps to open a salon. 

It was a long list. But starting a salon business is also a long journey.

You’ve taken an important first step on the journey today. But there’s more to come. Let’s stay connect on the way. This website is packed with resources to help you along the way.

I’m really excited for you now. 

All the best on this new and beautiful adventure!

Common Questions & Answers

How to open a salon with no money.

To open a salon with no money you need to create a detailed salon business plan  in which you minimize up front salon equipment investments, are highly prudent about all salon operation costs, and enable smart loans and investments into your business. Below are specific tactics you can implement to enable a salon start without money.

• Build a one year “salon bootstrap plan”: Start with a low cost salon business model  (booth rental, home salon, or mobile salon) that carries minimal cost but allow you to build up capital and experience to open your ideal salon.
• Borrow salon equipment:  Build a plan for what equipment you need to buy when and borrow tools in the beginning until you’ve built some capital. 
• Get a full view on how much you can self-fund:  Identify any savings accounts, real estate, pension accounts, 401k, that you can use as security for a loan. Also turn to friends and family for capitial support. Self funding gives you full control of your business but you also carry all risk so you need to be careful and seek personal financial advice first.
• Get venture capital from investors: Give a share in your salon business to an investor in return for up front capital.
• Apply for an SBA backed loan:  When banks thinks your business is too risky to lend money, the U.S. Small Business Administration you can agree to guarantee your loan. You can compare SBA loans at Lendio. 

I’ll go into more detail on salon financing options in the finance your salon section of this article but these are some of the common ways to get support if you want to start a salon with no money.

How Much Does it Cost to Open a Beauty Salon?

The cost of opening a beauty salon is around $62’000 for a good but basic setup in your own physical location. Nail salon start up cost is typically lower than for hair salons or barber shops. Cost can be significantly higher ($500’000+) but there are also ways you can start your salon business on a much smaller budget ($2’000).

Common salon startup costs are:

• Buy out of current salon
• Leasehold improvement
• Salon marketing
• Legal and consulting fees

For a full break down on salon startup costs , you can read my article here

Did you find this post helpful? Share it with your friends!

Related Posts

• Salon Website Design Tips (That Increase Bookings)
• How Much Does Salon Insurance Cost?
• Choosing the Best Location for Your Salon or Spa (21 Steps)

John Hallberg

Beauty marketing expert and content creator at The Salon Business and Mangomint

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Salon Business Plan Sample

Published Feb.11, 2015

Updated Apr.24, 2024

By: Brandi Marcene

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Table of Content

Beauty salon business plan for starting your own salon service

People like feeling good about themselves, and a salon business can help them to achieve that. The Professional Association estimates the salon and spa industry contributes approximately $40 billion annually to the U.S. economy Approximately half the industry is classified as salon business offering mostly hair care services. However, entrepreneurs interested in making a beauty salon business plan have many options as to the variety and level of services offered, ranging from a beauty salon business plan to a full-service spa. Salons can be setup in innumerable ways, so the purpose of the beauty salon business plan  is to pin down the details to improve the chances of long-term success. Planning should always start with identifying the customer. There may be several customer persona’s depending on your target market, people over 50 years old are a very different market to the Gen X clients.

Executive Summary

2.1 the business.

Julia’s Salon will be a licensed and registered salon located near Brookhaven College, Atlanta. The business will be based on providing hair-cutting, styling, coloring, skincare and other services in the salon as well as by going to people’s homes.

2.2 Management

Before starting a salon, it’s essential to make a beauty salon business plan  and enlist major decisions about your start up salon. In this sample business plan for a salon, we’re providing all details of Julia’s Salon ranging from startup expenses to management structure.

The main working structure of Julia’s Salon include hairdressers, makeup artists, expert cosmetologists, and general assistants. Besides them, the beauty salon business plan will hire sales executives, accountants, and web developers.

To ensure efficient working from the first day, the salon will be making all arrangements one week before the launch. Staff will also be hired a week before because the owner of Julia’s Salon wants to assess staff herself.

2.3 Customers

Our major customers will be the young and adult men and women of our society. Besides them, senior citizens and teens are also expected to avail our services.

2.4 Business Target

Our target is to become the most renowned salon in our vicinity and to establish an average repeat customer rate of 60% by the end of the first year.

Company Summary

3.1 company owner.

Julia’s Saloon will be owned by Julia Fox. Julia is a graduate in social sciences. She has taken many courses related to works. After working for three years in Sports Clips she has gained expertise in hair care and styling.

3.2 Why the salon business is being started

Julia has always remained interested in  cosmetics works. It was due to her passion and interest in the industry that she got a job in a top company. As Julia wanted to start a salon she took several courses relevant to the field while she was in her college.

A few months ago she started exploring beauty salon business plan s and finally decided to initiate her own salon to generate profit through a business that is solely her passion. She believes that an exceptional mission statement for a salon can lead her to the success, she is looking for.

3.3 How the salon business will be started

Julia decided to rent a large ground story to convert it into a salon. For writing a beauty salon business plan , she decided to hire a marketing and financial expert.

After acquiring the required licenses and registrations, Julia will purchase the required equipment such as furniture, mirrors, cosmetic tools and accessories, hair styling tools, hair treatment products, and other things.

She has also decided to hire her staff a week before the lauch so that she can assess them and they can understand the beauty salon business plan environment and aims. To facilitate their clients, Julia’s salon will be providing services by going to their homes too. Moreover, the salon will set up a web-based system so that customers can pre-order or pay online.

Services for Customers

Before formulating a beauty salon business plan outline you must finalize which services you’ll be providing your customers because this decision of yours will be affecting the business in the long run.

The services as mentioned in Julia’s Salon business plan are given in detail here.

Our major salon service will comprise of works related to hair. However, we’ll also offer some other services as described here:

Hair Cutting: Our primary service will be cutting the hairs of people of all ages and gender. We’ll hire haircut experts so that every customer will be able to get the look of their desire.

Hair Styling & Coloring: We will hire experts who will be able to make several hairstyles according to the customer’s looks and desires. Moreover, we’ll also provide services like hair coloring, highlights, color blending, hair shadowing, etc.

Makeup Services: We will provide makeup services for parties and usual events.

Hair & Skin Care Services: Our third major service will be providing hair treatments such as Fusio-Dose and protein treatment. Moreover, we’ll also be offering services in skincare and treatment like manicures, pedicures.

Salon Marketing Analysis

Before you start a salon you must know what are objectives of a salon business plan . Generally, the aim is to satisfy your customers by enhancing their looks, and that is only possible when you have studied the market and market trends thoroughly.

Before finalizing your beauty salon business plan template, you must research on what are the traditions, norms and modern fashions that are arising in your target market. Only then you will be able to recognize customers’ demands and decide what aspects to include in you beauty salon business plan to meet the expectations of your customers.

5.1 Market Trends

Hair salons are one of those businesses that are flourishing in the market for a long time. Currently, 972,000 such businesses are running in the United States. According to the IBISWorld report, the business has seen a 1.4% growth rate over the period of the last five years. The industry is responsible for employing more than 1,352k people and has generated a revenue of $47bn in only 2019. To summarize, the salon business plan has a lot of potentials and can be extremely profitable if you plan it accurately.

5.2 Marketing Segmentation

The detailed marketing segmentation of our target audience is as follows:

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5.2.1 Young & Adults: Our first target group will be young adults between 18 and 35 years of age. The people of this age run after the latest fashions and styles. That’s why we’ll be coming up with hairstyles, coloring and makeup techniques that are popular in people of this age group.

5.2.2 Senior Citizens: Our second target group comprises of citizens above 35 years of age. Since such people are interested in acquiring decent looks while following their norms and traditions thus we’ll be carrying out research to provide services of their interest.

5.2.3 Teens & Kids: Our third target group is expected to be accompanied by other target groups. For this group, we’ll be providing hairstyles and services that are liked by children and teens.

5.3 Business Target

• To balance startup expenses by earned profits by the end of the first fifteen months
• To achieve the net profit margin of $10k per month by the end of the first year
• To maintain customer repeat rate of 60% by the end of the first year
• To maintain an average rating of 4.6 by the end of the first year

5.4 Product Pricing

Our prices will be in the same ranges as that of our competitors, however, to get introduced to a wide group of people we’ll be offering several discounts in the first three months.

Marketing Strategy

Excellent preparation of business plan ….

Excellent preparation of business plan reporting and timing of all deadlines. I am extremely satisfied with the services. Thank Alex for all your excellent work.

This section should describe how you are going to find your ideal client and make sure they become aware of your products and services. Once you have found your clients, how will you attract and retain them? If you have a bricks-and-mortar business, is the location good for your type of clients? Does your ideal client read traditional printed advertising or are they more focussed on digital marketing? If online is important, describe the process your clients go through to make a purchase. Is it quick and easy? Starting a beauty salon business plan  will help you to focus on these points.

In this salon marketing business plan for a salon  sample we are providing the competitive aspects of Julia’s Salon as well as the advertising schemes, the salon will be employing to attract more and more customers.

6.1 Competitive Analysis

Our biggest competitive advantage is our top-class service. We’ll use high-quality material with extreme care to serve our customers. Secondly, our staff is expert in their respective domains. Besides, we’re highly customer-care oriented and we’ll always be ready to do unlimited modifications to satisfy our customers. Lastly, we’re providing home services because senior citizens usually want to have such tasks done at their own homes.

6.2 Sales Strategy

• We’ll ensure a strong web presence
• We’ll advertise us through Facebook and Instagram
• We’ll get featured in magazines and local newspapers
• We’ll offer a 20% discount on hair treatment services for the first month

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

To get an idea of how much you’ll need to spend on your business plan for a salon , you must first create a list of salon equipment with price and a list showing your employees, their job responsibilities and salaries.

7.1 Company Staff

Julia will manage the salon herself and hire the following people

• 1 Accountant to take financial records
• 1 Sales Executive to carry out the company’s sales business strategy plan
• 5 Hairdressers/Hairstylists/ Hair Coloring Experts to do clients hair
• 2 Makeup Artists to do client’s makeover
• 1 Cosmetologist to do with hair and skin treatments
• 2 Manicure/Pedicure Specialist
• 4 General Assistants to carry out general tasks
• 2 Drivers to provide transport
• 1 Web Developer to manage company’s sites
• 1 Customer Representative to receive customers

Financial Plan

The last step before starting your salon is to craft a detailed map showing and analyzing the investment group business plan for salon, costs of equipment, payrolls, taxes, and other expenses. A financial plan for a salon business plan must contain all the financial statements, details of projected profit and loss and measures to achieve estimated profits.

We’re providing a sample of Julia’s financial plan for anyone who wants to benefit. However, it is highly recommended to seek help from a financial advisor to have an accurate financial plan according to your figures.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Download Beauty Salon Business Plan Sample in pdf

OGS capital professional writers specialized also in themes such as eyelash extension business plan , business plan for a nail salon , nail polish business plan , tanning salons business plan , tattoo shop business plan , laser hair removal business plan and many others.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How To Start A Small Salon Business In The Philippines

Posted by Joyce | Jan 14, 2020 | Small Business Magazine |

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Nail Salon Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

Nail Salon Business Plan

• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Nail Salon Plan Here

You’ve come to the right place to create your business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their nail salons.

Nail Salon Business Plan Sample

The links below provide an example of each essential component of a business plan for a nail salon:

Next Section: Executive Summary >

Nail Salon Business Plan FAQs

What is a nail salon business plan.

A business plan is a plan to start and/or grow your salon. Among other things, it outlines your business concept, provides market research about the nail salon industry trends, identifies your target customers, presents your marketing plan and details your financial plan.

You can  easily complete your business plan using our Nail Salon Business Plan Template here .

What Are the Main Types of Nail Salons?

There are many types of salons depending on the beauty and nail services offered. Traditional nail salons are the most common, focusing on manicures, pedicures, and treating and painting nails. There are also other salons that offer more comprehensive services including waxing and massages.

What Are the Main Sources of Revenues and Expenses for Nail Salon Businesses?

The primary source of revenue for nail salon businesses are its service fees. Some salons also gain revenue from sale of nail care products.

The key expenses for salons are rent, salaries for salon owners and nail technicians, and supplies expenses.

How Do You Get Funding for Your Nail Salon?

Salons are typically funded through small business loans, personal savings, credit card financing and/or angel investors. In order to secure funding you will need a solid business plan for a nail salon.

Read more about how to get funding: Seeking Funding from Angel Investors vs Venture Capitalists .

How to Write a Nail Salon Business Plan

A great business plan gets the reader excited about your business and encourages them to take the actions you want them to take. In many cases, that action is for them to write you a check to fund your nail salon. 

In order to achieve this, start with a compelling executive summary. In the summary, clearly explain why your nail salon is or will be successful. Do members of your team have lots of experience in nail salons? Do you have clients from other nail salons that you will bring to your business? Do you have a large social media presence you can leverage to get new clients?

Think about why your nail salon is going to be successful and clearly document this in your summary. Also, be sure to include the other key business plan elements like your customer analysis (describing the demographics of your target market), your competitive analysis (detailing your competitors and how you’re unique) and your marketing plan (the marketing strategies for how you will attract new clients). Do this and you’ll have a great plan that reflects your salon and attracts readers to help you succeed.

What are the Steps To Start a Nail Salon Business?

Starting your own nail salon business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Nail Salon Business Plan - The first step in starting a business is to create a detailed business plan for your nail salon that outlines all aspects of the venture.  Your nail salon business plan should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your nail salon business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your nail salon business is in compliance with local laws.

3. Register Your Nail Salon Business - Once you have chosen a legal structure, the next step is to register your nail salon business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your nail salon business, so a detailed nail salon financial plan is key.  After completing this, take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Nail Salon Equipment & Supplies - In order to start your nail salon business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your nail salon business.  Your nail salon marketing plan includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful nail salon business:

• How to Start a Nail Salon Business
• How to Open a Nail Salon Business

Where can I Download a Nail Salon Business Plan Sample PDF?

You can download our sample nail salon business plan PDF template here . This is a business plan template you can use in PDF format.

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