How to open your Salon business in 8 simple steps.

How to start salon business

Salon Business is an umbrella term for many collective services that are available in the beauty industry. This all-inclusive term can provide you with the best of opportunities to develop and create a profitable business brand. The beauty sector is filled with growth, new chances, and dynamic changes. However, as confirmed with any business plan, it’s not easy to open a Salon Business and requires elaborate planning. It is necessary to be on your heels right from the start. Proper preparation, plans, and backups can go a long way to sustain and grow your salon business. Let’s dig deeper and discuss the 8 main steps you need to follow to open your own Salon business.

Why should you open a salon business?

why should you open a salon?

Before discussing the steps to start a salon business, let me tell you why you should open a salon business over other sectors. The main reasons are as follows:

  1. Owning a beauty business can be a challenging investment, but it’s definitely a safe one when planned out properly. The beauty industry is valued at $532 billion (about ₹40 lakh crores ) and often remains unaffected during an economic recession. It is often termed a recession-free industry even after being affected by a pandemic like covid-19. If you have proper beauty skills and an eye for the beauty market, then opening a salon business is the thing for you. 
  2. A Salon business provides exponential growth. People have become more concerned about their looks and beauty. Consequently, it has become a significant part of their lifestyle. Moreover, starting a salon business will engage you in such a sector where you can use your creativity and skills. It has a satisfying work culture.
  3. A Salon business can be your scope for realizing your entrepreneurial dream. It will provide you the opportunity to fulfil your own goals and desire to operate a business.  Moreover, when your name goes under the owner’s list, that is the best feeling of freedom. You are our own boss and can enjoy independence in your work.

You may read our other blog here, to know more about the career in Beauty & Salon industry.

The 8 steps to open your salon business

If you are hooked on the idea of kick-starting your salon business but very unsure about the process, then don’t worry because has got your back. We have provided all the do’s and don’ts that will pave a smooth way for your future endeavor.

1. Do proper market research.

Do proper market research

The most important thing you need is to research the existing salon market. You need to have a strong understanding of the current salon market and trends in your area. Use your observational skills and note down points whenever you are visiting the other salons. Make sure to build up a diplomatic relation with your fellow salon mates. Strike conversations and be social; it will help you to learn a lot.

Read customer testimonials and understand what kind of services are in demand. It is essential first to build your business and finance in the infancy stage rather than experimenting. It is effortless to chalk out what services your salon can provide when you have learned about the service demands, potential clients, and the local market trends. Be very clear and crisp about the services you will provide.

2. Decide the sector & services you want to offer in your salon. 

Decide the services your salon will offer

Like I said earlier, opening a salon can mean a variety of services altogether. You must be clear about the sector and the services that your salon will offer. This choice will determine the type of salon you will build- Hair salon, nail salon, beauty salon, bridal salon, spa, etc.

You can choose to provide specialized services under anyone or provide general services under all. Based on your experiences, targeted customers, funding, and others, you can choose the type of salon you will start.

Depending on the type of services you are willing to provide, there can be various types of salons:

  • Beauty parlour: Providing basic, menial services like facial, threading, manicures with limited staff.
  • Beauty Salon: offers more variety of services with varying ranges, a pleasing interior, with additional services like retail sales, etc.
  • Spa and wellness centre: This falls under the premium services. It covers higher quality services with higher prices. There are additional employees like beauty consultants, salon managers, etc.
  • Luxury: Luxury salons are high-maintenance salon centers usually catering to a very elite population. They might have chains or branches and often provide domestic services. Some of these salons also offer training and diploma courses for amateurs to learn.

3. Create a solid Business Plan to open salon

create a solid salon business plan

The questions that pop up instantly regarding the starting of a salon can be very challenging to answer. After you have done market research and decided the type of services & salon you want to open, you need to create a solid business plan. It will help you salvage all other shortcomings that are bound to occur with an amateur. Being well informed allows you to step back and think objectively about the obstacles, your goals, and how you will achieve them. Make the business Plan using a standardized structure. Once the financial setup is ready, it is crucial to consider the other avenues like services, customers, employees, specialties, and market value.  Like your regular homework, this is the first step towards loss-free business investment.

4. Do the Paperwork first to open salon business

Do the paperwork for your salon

Not having all the paperwork settled can land you into great trouble, especially at a time when your business is just blooming. A salon owner may be required to have a business license, a resale authority to sell products, esthetician or styling certification, etc. Also, ensure that your salon complies with the rules and regulations of the area you are operating.

  • You can apply for your license at a business licensing board in your area, or a cosmetology board can issue it.
  • Suppose you have completed your beautician or hairstyling diploma or courses from an institution. In that case, that institute provides you with a certification.
  • Every business will require a PAN in the name of the business or the owner. The Income Tax Department of India issues this.
  • When the annual turnover for your salon exceeds a certain amount, your salon would require to pay GST and shall register and obtain a GSTIN (Goods and Service Tax Identification Number). Additionally, MSME registration, Shops and Establishment Registration, Trade License, and Trademark Registration might be some of the requirements of your salon.

5. Choose the right location for your salon

choose good salon location

Of the main factors that would claim the lion’s share of your finance is investing in property. So make sure when you do it, it is without any doubt. The following points will help you determine the best choice of location to start your salon business.

  1. Choose a location that is pretty distant from other salons. It will not divide your customer base and also attract a bulk amount of population. A crowded place is always ideal for a salon.
  2. Make sure it is easily accessible. Public transport routes like metro, train, bus, and others must have easy access to your place.
  3. If you have an adequate budget, invest in a good parking space. Provide proper security to your client’s vehicles. They would surely love that.
  4. Do not make your parlor unnecessarily big or small. Make sure you don’t cram up everything in a dingy space. A good, spacious salon can be aesthetically appealing to your customers. Allow sufficient space between your workstations so that stylists have adequate space to work enough.
  5. If you don’t have the required money for investing in a property, don’t worry. You can easily rent out a small space and later buy it.

6. Give your salon a good interior Decor.

salon with good decor

Another significant portion of your investment should be on the interior Decor. Your clients must want a positive mental experience with each visit. Your interior, whether small or big, must be aesthetically pleasing. Proper lighting, air conditioning, music, and other arrangements must be top-notch. A muted color coding, comfortable sitting place, adequate sanitation facilities, free hydration supplies, interior plants, beauty magazines, and a comfortable waiting area is necessary for every salon.

Separate rooms are required for spa or massage services, especially if your salon is unisex. Make sure it slots enough privacy to both your male and female customers. Since your electricity usage will be high, remember to use cost-saving appliances and lights. Give your customer an overall soothing experience. Looking good comes only with feeling good.

7. Hire good and efficient Staff for your salon.

Hire best salon staff

Remember that while being a salon owner, you are also an employer. It is upon you to hire the best staff. The staff that you will hire will be the pillars of your success. They will help you to take your business forward and expand it. Make sure to keep well-trained, professional, and well-behaved staff. They are your direct link to the customers and directly affect your business. There should be a salon manager, hairstylists, salon assistants, manicurists, massage therapists, makeup artists, beauticians, receptionist, and others among your staff.

You should know how to Manage your salon staff. Develop a friendly work culture and guide your staff towards betterment. Keep scopes for incentives and other well-being facilities. This will create the will and motivation in your staff to deliver better. Teach them soft skills and interpersonal skills required to deal with clients. This also helps them upsell and boost your salon retail sales. Remember to treat your staff with adequate respect and support. They are selling you their service, so their demands should be placed accordingly. A healthy work environment will build trust and understanding, which is beneficial for your salon business.

8. Be Unique & stand out from the crowd

make your salon unique

Remember, uniqueness is the key to be different. Make sure to offer services that no other salons are doing in your area. This will keep you ahead of the competition and also help you to stand out from the others. Once you have obtained a stabilized position in your business, you are ready to go experimenting. Salons open in the nook and corner of streets every day.

Your parlour or salon will start as any other, but make sure to make it exclusive. Things like Offers, discounts, special services, and different customer experiences all cater. For example, be the first salon in your area to have an exclusive kid’s section. Design and decorate accordingly. Once you satisfy your little customers, automatically, you have their parents on your list. Always keep a distinguished list of services that your salon alone can provide.

Having a professional beauty consultant ready at your salon can be a unique measure. Often customers are confused with their wants, and having a helpful guide can be relieving. Also, it reduces the chances of a customer dumping your services because of indecisiveness.

You also need to retain your clients. The cost of acquiring a new client is higher than retaining your existing clients. You will cut down your marketing costs hugely by getting repeat customers. Do checkout our detailed blog to learn about how to get repeat customers for your salon.


You are embarking on an inspiring journey. There is no other more incredible feeling than watching your customers satisfied with your services. But it will not be smooth and easy. From deciding your field of work, the business you would provide to choosing location, staff, determining Decor, and maintaining the finances, requires strength of mind. Good investment and calculations regarding the running of your salon will surely help. Educate yourself and learn as much as you can about the beauty sector. Once you have properly established your salon business, don’t be complacent. Do not remain confined to only one area. If possible, branch out. This way, you can expand your business and establish it.

What else do you think should be planned to start and grow a salon business?

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