~Start-up Cost and Requirements~
The amount of capital you need to start the business depend on the type, quality and choice of salon design, rent and utility deposits, fixtures, leasehold improvements, opening inventory, and equipment that you intend to use.
Key start-up expense components of a hair and salon business are:
Salon space. Unless you live in a big house with room for a salon and in an area with favorable zoning restrictions, you will need to rent space for your business. Depending on the type of your operations, you may need space anywhere from 500 to 2,000 square feet.
Many cities allow salons to be located within a residential area, but with zoning restrictions, it may be difficult to operate a salon as a home business. In particular, some residents may not tolerate the flow of traffic as well as parking in your neighborhood.
Personnel. The number and type of personnel you need to hire will depend on the services that your hair and salon business will offer. Typically, a salon will require one to several stylists and a receptionist. Other personnel that your business may hire include shampoo technicians, barber, nail technician, facialist, make-up artist, and a massage therapist.
Leasehold improvements. You may need to undertake leasehold improvements to your space based on your interior layout, design, and plumbing requirements. Leasehold improvements are defined as the construction of new buildings or improvements made to existing structures by the lessee. As the lessee, you will have the right to use these leasehold improvements over the term of the lease. In many states, however, these improvements will revert to the lessor at the expiration of the lease. Moveable equipment or office furniture that is not attached to the leased property is not considered a leasehold improvement.
Salon Equipment. The equipment you buy will depend on the services you offer. Some of the basic equipment you need to purchase include washing basin, styling chair, hair driers, supply trolleys and manicure sets and aprons. Other equipment you may need include shampoo spray machines; facial bed, hair steaming machines, and other body/skin care instruments. If you are planning to sell beauty products, you also need to invest in inventory.
Contact the beauty salon equipment suppliers and check if you can get a good deal. You can also look into alternative sources such as eBay where lower-priced equipment is up for bidding.
You can choose to spend anywhere from $2,000 to $30,000 for salon equipment alone. You may also need initial training, professional and licensing fees, and at least three months of working capital.
Other start-up expenses may include:
Key start-up expense components of a hair and salon business are:
Salon space. Unless you live in a big house with room for a salon and in an area with favorable zoning restrictions, you will need to rent space for your business. Depending on the type of your operations, you may need space anywhere from 500 to 2,000 square feet.
Many cities allow salons to be located within a residential area, but with zoning restrictions, it may be difficult to operate a salon as a home business. In particular, some residents may not tolerate the flow of traffic as well as parking in your neighborhood.
Personnel. The number and type of personnel you need to hire will depend on the services that your hair and salon business will offer. Typically, a salon will require one to several stylists and a receptionist. Other personnel that your business may hire include shampoo technicians, barber, nail technician, facialist, make-up artist, and a massage therapist.
Leasehold improvements. You may need to undertake leasehold improvements to your space based on your interior layout, design, and plumbing requirements. Leasehold improvements are defined as the construction of new buildings or improvements made to existing structures by the lessee. As the lessee, you will have the right to use these leasehold improvements over the term of the lease. In many states, however, these improvements will revert to the lessor at the expiration of the lease. Moveable equipment or office furniture that is not attached to the leased property is not considered a leasehold improvement.
Salon Equipment. The equipment you buy will depend on the services you offer. Some of the basic equipment you need to purchase include washing basin, styling chair, hair driers, supply trolleys and manicure sets and aprons. Other equipment you may need include shampoo spray machines; facial bed, hair steaming machines, and other body/skin care instruments. If you are planning to sell beauty products, you also need to invest in inventory.
Contact the beauty salon equipment suppliers and check if you can get a good deal. You can also look into alternative sources such as eBay where lower-priced equipment is up for bidding.
You can choose to spend anywhere from $2,000 to $30,000 for salon equipment alone. You may also need initial training, professional and licensing fees, and at least three months of working capital.
Other start-up expenses may include:
- Cash register
- Merchant account fees (to accept credit cards)
- Business license fees and other required documentation (varies by state)
- Utilities
- Insurance
- Professional fees (accountant, lawyer, etc.)
- Signage costs
- Initial marketing and advertising expenses
