How Much It Costs to Start a Salon: Examples & Budget
Opening a salon is a major investment. To succeed, it’s essential to understand the costs involved from the start. Whether you’re planning a small, budget-friendly salon or a high-end establishment, knowing the financial requirements is key.
In this guide, we’ll break down the real costs of starting a salon, with examples of both low and high estimates. You can also download a free salon budget template to customize for your own business.
From leasehold improvements to equipment, technology, marketing, and staffing, we cover all the crucial costs. Whether you’re aiming for a cost-effective operation or a luxury salon, this post will help you estimate your initial investment accurately.
FREE SALON BUDGET TEMPLATE
This is our free budget template built for entrepreneurs who need to estimate their startup costs for a beauty salon. We’ve included low and high estimate cost breakdowns. Free download.
Salon Startup Costs Budget Example
How much does it cost to start a salon? The cost to start a salon ranges from $35,500 to $232,000. This wide range depends on factors such as the size of the salon, location, type of services offered, and quality of equipment and furnishings.
A low estimate of $35,500 reflects the cost of opening a smaller, budget-friendly salon. This typically includes basic leasehold improvements, essential equipment and furniture, simple booking software, and minimal initial marketing efforts.
On the higher end, a high estimate of $232,000 applies to opening a larger, premium salon. This would include custom-designed spaces, high-end salon equipment, advanced technology systems, and comprehensive marketing campaigns. Such salons are typically located in high-demand areas and offer a wider range of services, creating a luxury experience for clients.
The detailed breakdown below allows you to plan your salon’s startup costs based on your business goals and budget.
| Cost Item | Low Estimate ($) | High Estimate ($) |
|---|---|---|
| Leasehold Improvements | $5,000 | $50,000 |
| Salon Equipment & Furniture | $10,000 | $60,000 |
| Technology & Software (booking systems, POS) | $1,500 | $10,000 |
| Signage & Branding | $1,000 | $7,000 |
| Initial Marketing | $2,000 | $15,000 |
| Inventory (products, supplies) | $3,000 | $20,000 |
| Insurance | $1,500 | $5,000 |
| Permits & Licensing | $500 | $5,000 |
| Utilities Setup | $2,000 | $10,000 |
| Legal & Accounting | $1,000 | $5,000 |
| Staffing Costs | $5,000 | $30,000 |
| Contingency Fund | $3,000 | $15,000 |
| Total Estimated Cost | $35,500 | $232,000 |
We will now detail some of the largest startup cost categories below:
Salon Leasehold Improvement Costs
The cost of leasehold improvements can vary significantly depending on the size, location, and condition of your salon space. For a smaller salon, you might spend around $5,000, focusing on basic renovations like flooring, painting, and lighting. This investment is typically sufficient to create a functional, attractive environment for clients without unnecessary extras.
However, if you’re planning to open a larger, more premium salon, leasehold improvement costs can increase to $50,000 or more. At this level, you may need more extensive renovations, including custom flooring, advanced HVAC systems, and additional plumbing for shampoo stations and wash basins.
| Cost Item | Low | High |
|---|---|---|
| Flooring (vinyl, tile, etc.) | $2,000 | $10,000 |
| Painting & Wall Treatments | $1,000 | $5,000 |
| Lighting Installation | $1,000 | $7,000 |
| Plumbing (sinks, wash stations) | $0 | $10,000 |
| Electrical Work (wiring, outlets, etc.) | $1,000 | $7,000 |
| HVAC (heating, ventilation, air conditioning) | $500 | $5,000 |
| Custom Furniture or Built-ins | $500 | $6,000 |
| Decorative Elements (mirrors, artwork) | $1,000 | $5,000 |
| Total Leasehold Improvements | $5,000 | $50,000 |
Salon Equipment & Furniture Costs
Salon equipment and furniture are core components of your salon’s functionality and aesthetic. The costs for these items can vary widely based on the type of salon, the services you offer, and the quality of equipment you choose.
For a smaller salon, you may spend around $10,000 on basic equipment and furnishings that are functional but budget-friendly. This setup typically includes essentials like salon chairs, styling stations, and basic hair washing stations.
If you’re opening a larger or more premium salon, your investment in equipment and furniture could reach $60,000 or more. This might include custom styling stations, premium chairs, high-end hair dryers, and specialized equipment for more diverse services such as facials, nail treatments, or spa services.
| Cost | Low | High |
|---|---|---|
| Salon Chairs | $2,000 | $10,000 |
| Styling Stations | $1,500 | $8,000 |
| Hair Washing Stations | $2,000 | $10,000 |
| Hair Dryers & Steamers | $1,000 | $5,000 |
| Nail & Spa Equipment | $0 | $8,000 |
| Reception Area Furniture | $1,000 | $5,000 |
| Storage & Product Displays | $1,500 | $7,000 |
| Decor & Accessories | $1,000 | $5,000 |
| Total Equipment & Furniture Costs | $10,000 | $60,000 |
Technology & Software Costs
Investing in technology and software is critical for running a modern salon efficiently. Whether you’re managing appointments, tracking inventory, or processing payments, the right systems will streamline your operations and enhance the customer experience.
For a smaller salon, you can expect to spend around $1,500 on basic technology, including a point-of-sale (POS) system and simple booking software.
For larger or premium salons, the investment in technology could rise to $10,000. This might include advanced salon management software with integrated scheduling, customer relationship management (CRM) tools, and mobile apps for client booking. You may also invest in more sophisticated POS systems and digital marketing tools to enhance client communication and drive bookings.
| Cost Item | Low Estimate ($) | High Estimate ($) |
|---|---|---|
| Salon Management Software | $500 | $3,000 |
| Point of Sale (POS) System | $500 | $2,000 |
| Client Booking System (online/mobile) | $300 | $2,000 |
| Website Development & Maintenance | $200 | $2,000 |
| Customer Relationship Management (CRM) | $0 | $1,000 |
| Digital Marketing Tools | $0 | $1,000 |
| Total | $1,500 | $10,000 |
Initial Marketing
Effective initial marketing is crucial for attracting clients to your new salon. From digital campaigns to local promotions, the costs can vary based on your approach and target market. For a smaller salon, an initial marketing investment of around $2,000 may include social media advertising, local promotions, and basic branding materials like business cards or flyers.
For larger or high-end salons, an initial marketing budget of $15,000 or more might be necessary to launch a comprehensive campaign. This could include professional branding services, digital marketing strategies (SEO, Google Ads), influencer partnerships, and a grand opening event to attract a high volume of clients.
| Cost Item | Low | High |
|---|---|---|
| Social Media Advertising | $500 | $3,000 |
| Local Promotions (flyers, print ads, etc.) | $500 | $2,000 |
| Branding Materials (business cards, brochures) | $300 | $1,000 |
| Website Development & SEO | $300 | $3,000 |
| Grand Opening Event | $0 | $3,000 |
| Influencer/Local Sponsorships | $0 | $2,000 |
| Google Ads & Paid Search | $400 | $1,000 |
| Total Initial Marketing Costs | $2,000 | $15,000 |
