Salon Startup Expenses — What to Expect
Whether you're renting a booth or building out a full salon, here's a realistic look at the costs — so you can plan smart and start strong.
What Does It Cost to Start in the Salon Industry?
The answer depends on your path. A booth renter can get started for as little as $2,000 to $15,000. A full salon build-out can run anywhere from $50,000 to $250,000+ depending on your location, size, and vision.
Don't let the big numbers scare you. Most stylists start small — renting a booth or a suite — and grow from there. The key is knowing what to expect so you can budget wisely and avoid surprises.
Below, we break down the typical costs for both paths — booth rental and full salon ownership — so you can plan your investment with confidence.
Booth Rental
$2,000 – $15,000
Lower upfront cost. Rent a chair in an existing salon, bring your own tools and products, and start building your clientele.
Full Salon Build-Out
$50,000 – $250,000+
Higher investment, but you own the space. Includes lease, build-out, stations, plumbing, signage, and everything in between.
Booth Rental Startup Costs
The most common path for new stylists. Lower risk, lower cost, and you can start taking clients almost immediately.
Booth Rent Deposit
$200 – $800
Most salons require first and last month's rent or a security deposit upfront. Ask about this before signing any agreement.
Styling Tools
$500 – $3,000
Professional shears, clippers, blow dryers, flat irons, curling irons, brushes, and combs. Buy quality — they'll last for years.
Product Inventory
$300 – $2,000
Color, developer, shampoo, conditioner, styling products, and retail items. Start with essentials and build from there.
Business License & Permits
$50 – $400
Cosmetology license, business license, and any local permits required in your area. Requirements vary by state.
Insurance
$150 – $500/year
Professional liability insurance protects you if a client has a reaction or injury. Many salons require proof before you start.
Marketing & Website
$100 – $1,500
Business cards, a simple website or booking page, social media setup, and maybe a few boosted posts to build awareness.
Estimated Total — Booth Rental Startup
$1,300 – $8,200
Full Salon Startup Costs
Opening your own salon is a bigger investment — but you control the space, the brand, and the experience.
Lease & Build-Out
$10,000 – $100,000+
Security deposit, first/last month's rent, construction, flooring, painting, plumbing, and electrical work. Costs vary wildly by location.
Stations & Furniture
$5,000 – $30,000
Styling stations, mirrors, hydraulic chairs, shampoo bowls, reception desk, waiting area furniture, and storage.
Plumbing & Electrical
$3,000 – $20,000
Shampoo stations need plumbing. Dryers and styling tools need outlets. If the space wasn't previously a salon, this adds up fast.
POS System & Software
$500 – $3,000
Point-of-sale hardware, credit card terminals, scheduling software, and bookkeeping software. (Hint: Salon Accounting starts at $7.99/mo.)
Initial Product Inventory
$2,000 – $10,000
Professional color lines, backbar products, retail inventory, towels, capes, foils, and disposable supplies to stock your salon.
Signage & Branding
$500 – $5,000
Exterior signage, logo design, window decals, interior branding, business cards, and opening marketing materials.
Insurance & Licensing
$1,000 – $5,000
General liability, property insurance, workers' comp (if you have employees), business license, and health department permits.
Working Capital
$5,000 – $20,000
Cash reserves to cover operating expenses (rent, utilities, payroll) for the first 3-6 months while you build your client base.
Estimated Total — Full Salon Startup
$27,000 – $193,000+
Hidden & Ongoing Costs People Miss
These recurring expenses add up. Factor them into your budget from day one.
Continuing Education
Most states require continuing education hours to renew your license. Plus, classes and certifications keep your skills — and prices — competitive. Budget $200–$2,000/year.
Backbar Products
Shampoo, conditioner, treatments, toner, developer — the products you use on clients but don't sell. These are a constant, recurring expense that eats into your margins.
Credit Card Processing Fees
Every card swipe costs you 2.5–3.5% of the transaction. On a $150 color service, that's $4–$5 gone. Over a year, it adds up to thousands.
Bookkeeping & Accounting
QuickBooks charges $30+/mo. A CPA costs $200+/hr. Or you could use Salon Accounting starting at $7.99/mo and save thousands over the year.
Good News: Most Startup Costs Are Tax-Deductible
The IRS allows you to deduct up to $5,000 in startup costs in your first year of business. Remaining costs can be amortized (spread out) over 15 years.
Ongoing expenses — booth rent, supplies, insurance, education, marketing — are all deductible as ordinary business expenses on your Schedule C.
The key? Track everything from day one. Every receipt, every purchase, every bill. If you don't track it, you can't deduct it — and you're paying more taxes than you need to.
Common Salon Tax Deductions
Track Every Dollar from Day One
Salon Accounting makes it easy to categorize startup costs, track expenses, and know your profit from the very first day. Starting at $7.99/mo.
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