How to open a beauty salon: 7 steps to starting your business and attracting customers.

Are you looking to open a salon but don't know where to start, what to prepare, how much it will cost, or how to attract a steady stream of customers? Owning your own salon not only gives you control over your income but also provides freedom in your work. This article will guide you through 7 clear and easy-to-follow steps to opening a salon , helping you understand what you need to prepare to launch a sustainable business model from the beginning. If you are serious about entering the beauty industry as a salon owner, this is the starting map for you.

Tip 1: Costs and procedures for opening a beauty salon

Step 1: Choose a suitable location for your salon.

Location is a crucial factor, determining 60–70% of your ability to attract customers right from the start. When surveying locations for your salon, you should focus on the following three core points to increase your chances of successful business.

1. Prioritize areas with high foot traffic.

• Bustling streets, shopping malls, or areas near markets, supermarkets, and convenience stores often help salons naturally attract attention.

• High pedestrian and vehicular traffic translates to better brand recognition, especially for newly opened salons.

2. Ensure easy access and parking for customers.

• The location should be on a two-way street or one that allows for easy U-turns, avoiding areas prone to traffic congestion.

• There is convenient parking for motorbikes and cars because most guests will prioritize a location that is "quick to enter and easy to exit".

• The more comfortable the customer experience, the higher the likelihood of them returning.

3. Avoid locating your shop next to a direct competitor.

• Opening a salon right next to another one meant both businesses had to divide their customer base and find it difficult to create their own unique identity.

• You should choose a location a few blocks away from your competitors to become a standout option in that area.

• Proper spacing allows you space to build your brand and develop a loyal customer base.

Mastering these three criteria will help you choose a salon location that fits your budget and ensures long-term customer appeal.

Step 2: Complete the necessary permits to open the salon.

When starting a salon business, you need to have all the necessary paperwork and comply with legal regulations to ensure stable operation and avoid the risk of fines or suspension. Below are some important requirements you need to address early.

1. Register for a business license.

• Any business model requires a valid license to operate.

• Registration helps the salon operate legally and makes it easier to handle tax procedures, rent, or service contracts.

2. Ensure that personnel possess appropriate professional certifications.

• Services related to hairdressing, nail care, makeup, or hair removal all require practitioners to possess professional certifications as stipulated by local regulations.

• You need to check the licensing requirements at the professional regulatory body or training center to ensure all technicians are working legally and in the correct professional capacity.

3. Prepare the necessary conditions to pass the hygiene and safety inspection.

• Hair salons must meet hygiene and safety standards and follow thorough disinfection procedures to avoid penalties or being forced to close.

• Inspect the work area, equipment, water system, ventilation, and hygiene procedures according to the guidelines of the local health authority.

• Adhering to the correct standards not only helps you pass inspections but also builds customer trust in the quality of your service.

Having all the necessary licenses and regulations in place from the start will help the salon operate smoothly, creating a solid foundation for long-term growth.

Step 3: Recruit the right personnel who are skilled and well-trained.

The team of technicians is a crucial factor in determining the quality of service at a salon. Hiring the right professionals not only reduces risks for customers but also helps you build a reputation from the start.

1. Only hire technicians with certifications and practical experience.

• Staff need to have clear skills and professional training in hair, nails, makeup, or the services you provide.

• Untrained technicians can harm customers' health, damage the salon's reputation, and lead to legal risks.

• Experience is an advantage, but it must be accompanied by the right knowledge base to understand the pros and cons of each beauty procedure.

2. Ensure all staff understand the salon's procedures.

• The salon owner is responsible for instructing, supervising, and ensuring that staff understand how to properly perform each service.

• Standardizing techniques helps ensure consistent service quality, avoids errors, and enhances the customer experience.

3. Develop a clear internal procedure manual.

• Create a concise and easy-to-understand procedure guide covering equipment cleaning, service procedures, customer consultation, and incident handling.

• This document can be found online and then customized to suit the style and model of your salon.

• A process manual helps new employees integrate quickly, reduces confusion, and ensures everyone works according to common standards.

4. Sign an employment contract right from the start.

• The contract outlines responsibilities, rights, and working conditions, helping to minimize disputes later on.

• This is a small but crucial step for the salon to operate professionally and stably in the long term.

Hiring the right people and establishing processes from the start will help the salon run smoothly, reduce risks, and build strong customer trust.

Step 4: Calculate the costs of opening and maintaining a stable salon operation.

Defining your finances from the outset helps you avoid capital shortages, control risks, and determine whether your business model is viable. Below are some key points to consider when preparing to open a salon.

1. Estimate the cost of living during the period when the salon is not yet profitable.

• The break-even point for many business models can be 3–5 years, so you need to carefully calculate your monthly living expenses.

• Determine your current savings, emergency fund, and the minimum income you need to maintain your lifestyle.

• This helps you know how long you can last before the salon becomes consistently profitable.

2. Create a monthly operating budget for the salon.

• This includes: rent, business license, staff training, employee salaries, equipment and cosmetic costs, utilities, marketing, and contingency funds.

• A clear budget helps you control your cash flow and proactively adjust it as needed.

3. Determine a suitable service price list.

• After knowing the operating costs, you can calculate the minimum revenue needed to break even.

• Estimate the number of services you can offer each week (haircuts, coloring, manicures, etc.). From there, determine the necessary price to make a profit.

• Prices need to be high enough to be profitable, but not so high that customers are reluctant to return.

4. Compare market prices at other salons.

• Survey similar salons in the area to understand the general price range.

• Your pricing should fall within the same range, or have a reasonable difference if you offer a more premium service.

5. Consider borrowing money if necessary.

• If you lack the capital to open a salon, you can work with banks or small business support programs.

• Prepare a brief description of your business plan, explaining why the salon has profit potential (such as a good location or a market lacking certain services).

6. Plan to pay your taxes on time.

• Business taxes are completely different from personal taxes, so you need to understand your tax obligations when opening a salon.

• Many salon owners choose to work with an accountant or CPA from the start to avoid errors and optimize the tax filing process.

Having a firm grasp of costs and financial planning will help you open your salon proactively, reduce cash flow pressure, and create a solid foundation for long-term business success.

Secret 2: How to retain loyal customers for your salon.

Step 1: Create a clean and safe environment for customers.

A salon that wants to retain customers long-term needs a clean, safe, and relaxing environment. This is a key factor that customers look for when choosing a beauty salon, and it strongly influences the salon's reputation.

1. Maintain absolute hygiene throughout the entire space.

• All towels, footbaths, chairs, and equipment must be clean, disinfected, and odor-free.

• Keep things tidy; the waiting area, hair salon, and nail salon must always be clean and organized.

• Regular cleaning throughout the day helps guests feel secure and encourages them to return.

2. Use quality and safe tools.

• Tools must be sharp, in good working order, and replaced regularly.

• Poor quality equipment can easily cause injury or infection, directly affecting the health of customers.

• Customers will appreciate salons that invest in reputable products and follow proper disinfection procedures.

3. Create a relaxing and comfortable space.

• Soft music, gentle lighting, and pleasant scents help guests feel truly cared for.

• Limit employees from speaking loudly to maintain a professional and comfortable environment.

• A relaxing experience is what makes customers remember the salon and recommend it to others.

When you create a clean, safe, and relaxing environment, your salon will gain a clear competitive advantage, increase customer retention, and achieve sustainable growth.

Step 2: Consider expanding services to gain a competitive advantage.

Offering multiple services in a single salon isn't mandatory, but it's a key factor in setting up a salon that only provides one or two services. Customers often appreciate convenience and want to get their hair, nails, or skincare done all in one place.

1. Create convenience for customers with a one-stop salon model.

• Customers can get their hair, nails, and facials done in one visit instead of having to travel to multiple places.

• Your shop becomes the preferred choice when customers need fast, consistent, and time-saving service.

2. It is still possible to focus on one main area.

• You could specialize in hair (or nails, skincare) but add a few supplementary services to increase value for your clients.

• This approach helps you maintain high quality in your core business while expanding revenue from supplementary services.

3. Create a competitive advantage over neighboring salons.

• Many salons only offer one main service, so providing additional options will help attract a wider range of customers.

• Guests tend to return to places that offer a complete and convenient experience.

When implemented correctly, service expansion helps salons increase revenue, enhance customer experience, and build a stronger brand in the market.

Step 3: Retain customers and build reputation for the salon.

For a salon to thrive sustainably, you need to create a consistent experience and make customers feel valued every time they visit. Reputation and quality service are what keep them coming back and recommending you to others.

1. Providing a positive experience with every service.

• Always listen to the customer's needs and provide clear advice before performing any service.

• Providing attentive customer service from the waiting time, during the service, to after completion.

• Remember the habits or styles that customers usually prefer to create a feeling of being specially cared for.

2. Build a reputation so that customers trust you and return.

• When clients are satisfied with the beauty results, they will choose you for future treatments.

• Trust is paramount in the salon industry; a bad experience can drive customers away, but a good experience will keep them loyal for the long term.

3. Leverage word-of-mouth marketing to attract new customers.

• Satisfied customers often recommend the salon to friends, family, and colleagues.

• This is the most powerful and natural form of marketing, helping you expand your customer base without spending too much on advertising.

4. Collect customer information for regular follow-up.

• Save your email or phone number to receive notifications about new services, promotions, or appointment reminders.

• Customer relationship management (CRM) systems help track appointments, preferences, and service history, leading to more effective customer care.

5. Application of tools to support customer management and service.

• Use appointment management platforms, CRMs, or moodboard and hair/makeup design tools to communicate more clearly with clients.

• You can try many options and choose the tool that best suits the size and style of your salon.

When you prioritize the customer experience, your salon will naturally build a good reputation, increase repeat customers, and attract new ones through the spread of satisfaction.

Improve operational efficiency and build a cohesive team for the salon.

For a salon to thrive and compete effectively, you need to invest in your people, processes, and work environment. Below are some steps you should take to improve service quality and retain staff long-term.

1. Provide regular training to employees to keep them up-to-date with trends.

• Organizing regular training sessions helps employees improve their skills, understand the products thoroughly, and keep up with the latest beauty trends.

• Continuous updating helps salons maintain high professional standards and differentiate themselves from competitors.

2. Create motivation through monthly internal competitions.

• Organize mini-contests such as quick nail art, creative nail design, or best customer advice.

• The prizes could be free products, paid vacation days, or a major annual prize.

• This approach helps to keep employees enthusiastic, fosters positive competition, and improves their skills.

3. Organize a grand opening event to attract customers.

• A simple event with special offers, trial packages, or technical demonstrations will help you quickly reach new customers.

• This is also an opportunity to introduce the brand and make a strong first impression.

4. Establish standards of conduct and appearance for all employees.

• Salons are in the beauty industry, so the staff needs to maintain a neat and professional image.

• Clearly state the basic requirements in the procedure manual, and the salon owner must set an example.

5. Create a positive work environment even with a limited salary budget.

• Be flexible in giving employees compensatory time off — for example, when they have personal matters to attend to, they can “make up the time” on busy days.

• Organize simple get-togethers every 2–3 months, like pizza night, to strengthen bonds.

• Implement a commission system to incentivize employees to refer new customers or upsell services.

• Ensure that salaries, bonuses, and vacation days are transparent; employees can easily check their entitlements.

6. Invest in good equipment and hire the right people.

• High-quality machinery, chairs, and tools help reduce errors, enhance the user experience, and create a professional atmosphere.

• Skilled staff combined with good equipment will help the salon run smoothly and retain customers effectively.

7. Develop your own products to expand the brand (if appropriate).

• You could explore creating your own branded hair or skincare products to increase sales and brand recognition.

• It's best to start small before investing heavily.

8. Improve legal procedures and internal governance systems.

• Prepare complete operational manuals, compensation and benefits systems, and employment contracts to avoid disputes.

• Adhering to labor regulations helps the shop operate stably and professionally.

9. Liability insurance to reduce risks for the salon.

• The beauty industry always carries the risk of mishaps such as skin irritation, chemical errors, or hair damage.

• Working with your insurance company to choose the right plan will help protect you against claim or dispute costs.

When you invest wisely in people, processes, and risk management, your salon will have a solid foundation to grow and create a professional experience for your customers.

References

1. https://www.entrepreneur.com/starting-a-business/choose-the-best-location-for-your-hair-salon-and-day-spa/236746
2. https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits
3. https://www.entrepreneur.com/encyclopedia/licensing
4. http://www.nccosmeticarts.com/uploads/forms/salonchecklist4-12.pdf
5. https://www.entrepreneur.com/article/297899
6. https://www.infoentrepreneurs.org/en/guides/budgeting-and-business-planning/
7. https://www.nerdwallet.com/blog/small-business/how-to-get-a-small-business-loan/
8. https://www.entrepreneur.com/growing-a-business/6-ways-to-keep-clients-happy/236005
9. https://www.entrepreneur.com/growing-a-business/10-ways-to-keep-making-your-clients-happier-and-happier/242603
10. https://www.forbes.com/sites/kimberlywhitler/2014/07/17/why-word-of-mouth-marketing-is-the-most-important-social-media/#3f5e9a5254a8

Translated by: Sidney Bailey Hoang .