How to Open a Hair Salon: Costs, Location, and Everything in Between

Opening a hair salon is one of the best decisions you can make as a beauty professional. It takes real planning to get right, and most guides either gloss over the important detail or make it more complicated than it needs to be. This one does neither - we’re here to give you a hand.

Whether you are a stylist ready to go solo or a business owner stepping into the beauty world for the first time, this guide covers what you actually need to know: what it costs, what paperwork is unavoidable, how to find the right space, and what to do in the weeks before you open your doors.

Let's get into it.

Grease Monkey, Singapore

How much does it cost to open a hair salon?

Let's start with the number everyone wants. Opening a hair salon in the US typically costs between $75,000 and $250,000. In the UK, expect £40,000 to £150,000 for a standard high-street setup. That range is wide on purpose, because the gap between a modest studio space and a full multi-chair salon fit-out is enormous.

Here's what actually drives the cost:

• Fit-out and equipment (chairs, backwash units, mirrors, styling stations): $20,000–$90,000
• Commercial lease deposit and first months' rent: $5,000–$30,000 depending on your market
• Licences, permits and insurance: $1,000–$5,000
• Initial retail stock and professional products: $2,000–$10,000
• Branding, signage and website: $1,500–$8,000
• Booking software: competitive rates, good features that support your business, Fresha is the world’s leading marketplace and booking system, with the most competitive rates
• Working capital for the first three months: varies, but don't underestimate this one

That last point matters more than most people plan for. Working capital is the money that keeps the lights on while you build your client base. Most salon owners who struggle in year one didn't run out of budget, they ran out of runway. Build a buffer for at least three months of operating costs before you open.

If you need flexible funding to cover your fit-out or equipment costs and are already a Fresha partner, Fresha Capital offers pre-approved financing if you want to open a new location, or rekit your salon - we’re working to support Fresha’s 140,000+ businesses and 450,000 individual professionals, who facilitate over 35 million appointments each month. Worth exploring early, before costs start adding up.

Hair salon licences and permits: what you need before you open

This is the section most people leave too late. Licences take time, and some even take weeks. Getting started on these early is super important, so let’s run through a few of the things you’ll need when opening a salon.

In the United States, most hair salon owners need:

• A cosmetology licence (required if you're working behind the chair yourself). Most states require 1,000–1,600 hours of accredited training. Check your state board for exact requirements (The Institute for Justice, 2026.)
• A salon owner licence (some states require this even if you're not performing services). It varies significantly, so always confirm with your state's cosmetology board.
• A business licence, registered with your city or county
• An Employer Identification Number (EIN), needed for hiring staff and filing taxes
• A sales tax permit (required if you plan to sell retail products)
• General liability insurance. Add workers' compensation if you have employees.

In the UK, the bar is lower legally, but that does not mean corners should be cut. There is no mandatory cosmetology licence to own a salon, though professional qualifications are highly recommended. You will need to register as a business, comply with Health and Safety legislation and hold public liability insurance as a minimum.

The US Small Business Administration has a state-by-state licence guide at sba.gov/business-guide/launch-your-business/apply-licenses-permits. UK salon owners can use the business licence finder at gov.uk/find-licences. If you’re outside of the areas mentioned and wish to open a salon, make sure to check your government website and find out the specifics.

How to choose a hair salon location (and what most people get wrong)

Here's what most people get wrong: they optimise for rent. The cheapest space per square foot looks great on a spreadsheet and makes the first year unnecessarily hard.

Foot traffic is marketing you don't have to pay for. A ground-floor unit on a busy street costs more, yes. But it also means clients discover you just by walking past. In the early months, before word-of-mouth kicks in, that passive visibility is worth a lot more than the rent saving.

Lease terms are where people really get caught out. A five-year lease feels like security. It can also become a serious liability if year one is slower than expected. Push for a break clause at year two or three wherever you can, and get a solicitor or attorney to review the terms before you sign anything.

Your neighbours matter too. Being next to a coffee shop, gym or co-working space means you are surrounded by your ideal client. A noisy workshop or a takeaway with strong smells? A lot harder to work around. Using Fresha’s marketplace is useful when looking where to open a salon - you can see the density of salons in a particular location, for example, would you like to open a salon on a street with 10 others, as a hotspot for beauty, or would you rather be the only one for more exclusivity?

And then there is the space itself. Ventilation is the thing people almost always overlook. Colour fumes build up fast. Make sure the unit has proper airflow, enough electrical capacity for your equipment load and practical backwash placement before you fall in love with the light fixtures.

Hair salon fit-out: what to prioritise and what can wait

The temptation to get everything perfect before you open is real. Resist it. The salons that spend eighteen months planning the ideal fit-out often launch behind the ones that opened lean and iterated.

Hilario, Clerkenwell, London

Your true day-one essentials:

• Styling chairs and stations (allow 6 to 8 feet per station for comfortable working space)
• Backwash units (at least one per two stylists as a baseline)
• Full-length mirrors, well-lit
• A colour mixing area
• Reception desk or check-in point
• A retail display. Even a small shelf counts, and retail is solid margin.
• Salon software and a working payment terminal

What can wait:

• High-end waiting furniture
• A refreshment station
• Custom cabinetry
• Feature walls, neon signs, statement lighting

Those extras are nice. They do not book clients. Get the core setup right, open, build revenue, then invest in the space you want. Most successful salons look quite different at year three than they did on opening day. That is just a business that grew.

“The salons that thrive long-term are the ones that open lean and invest as they grow. A great stylist in a simple, well-run space will always outperform a beautiful salon with empty books."

— James Hayward-Browne, Head of Brand and Content, Fresha 

Building your hair salon team: how to hire well from day one

If you are opening a multi-chair salon rather than a solo setup, your team is everything. Not just because of the revenue they bring. Because the first people you hire set the tone for your culture, your client experience and your reputation in the local market.

Hire for attitude. Seriously. Technical skills develop over time. The way a person treats a nervous first-time client, how they handle a question, whether they show up fully every day. That is what you are really hiring for. Look for it in the interview. Ask for examples.

Be clear about what you are offering from the start: salary, commission structure, hours, flexibility. All of it. Clarity builds trust early. A written offer letter matters even when your team is two people.

Your first three or four hires shape everything that comes after. Take your time with them.

For the full hiring process, from writing your job ad to running a great first week, see our guide to how to hire new salon staff.

Setting up your hair salon booking system before opening day

This is the one thing you absolutely cannot leave until the last minute. Your booking system needs to be live before you tell anyone you are opening.

Why? Because the moment you post on social or send a message to your existing clients, people will try to book. If there is nowhere to do that, you lose the momentum. Some will come back. Most will not.

Fresha is the most competitive and dynamic booking platform, acting as a salon management system for over 130K businesses. It covers everything a new salon needs: online booking, appointment management, point of sale, client records, automated reminders and payment processing. Get it set up at least two weeks before you open so you have time to test it properly.

Before your opening date, make sure you have:

• Your full service menu live with accurate pricing and durations
• Team schedules and availability set up correctly
• Automated booking confirmations and reminders switched on (these alone make a real difference to attendance rates)
• Online deposits configured if you want them for new clients

Your Fresha Marketplace profile up and live with photos. More than 35 million clients use Fresha to discover and book salons a month. A complete profile from day one means you start building reviews and visibility immediately.

"Your digital setup is just as important as your physical one. Clients expect to find you online and book instantly. The salons that have both sorted before opening day hit their targets the fastest."

— Iasmina Ionescu, Content Marketing Manager at Fresha 

Once your team is in, Fresha Team Connect keeps everyone connected: messaging, schedules and updates, all in one place.

The complete hair salon opening checklist

The four to six weeks before opening are the most chaotic of the whole process. This checklist won't cover every edge case, but it covers the things that catch new owners out most often.

Four to six weeks before opening:

• Lease signed
• Business registered, EIN or UTR obtained
• All licences and permits confirmed
• Insurance in place
• Booking system set up and tested
• Service menu finalised with pricing
• Staff contracts signed

Two to four weeks before opening:

• Fresha Marketplace profile live with photos
• Social media accounts created and active
• Grand opening date announced
• Retail stock ordered and received
• Team trained on the booking system

One to two weeks before opening:

• Full trial run: test a booking end-to-end as a client would experience it
• Card payments tested and confirmed working
• Professional photos of the space taken
• Opening hours consistent across Google, Fresha and social

Opening week:

• Grand opening promotion live on Fresha
• Actively ask your first clients for a review
• Check your Fresha profile is appearing in local search results

How to get your first clients when opening a hair salon

Marketing before you have opened feels a bit odd. Do it anyway.

The salons that hit full books quickly are almost always the ones that started making noise before the doors opened. Not paid ads. Just the basics: your personal social accounts, a message to previous clients if you are moving from somewhere else, a post to local Facebook groups. Simple, direct, personal. That kind of outreach converts far better than anything you can pay for in the first three months.

Studio 90, Dalston, London

Get your Fresha Marketplace profile complete and live as early as possible. New listings with good photos and a full service menu get real exposure. 35 million clients use Fresha to find and book salons, so your profile is working for you even when you are not.

A grand opening offer helps too. Not because you need to discount to get clients, but because it gives people who are curious about you a low-risk reason to try you now rather than later. A "book and bring a friend" deal or a discounted first appointment are simple to set up in Fresha and work well in the first few weeks.

Ask for reviews. This is the bit most new salon owners forget, or feel awkward about. Don't. Happy clients want to support you. A five-star review on your Fresha profile from week one builds trust that drives organic bookings for months to come.

Once your clients are coming in, keeping them is everything. See our guide to salon client retention strategies for what actually works.

FAQs about opening a hair salon

How long does it take to open a hair salon?

Three to six months is realistic from lease signing to opening day. The main variables are fit-out timeline and how quickly your licences come through. Build in a buffer; the projects that stay on schedule are the ones that planned for a little extra time.

Do you need a cosmetology licence to own a hair salon?

In most US states, not if you are a pure owner and not providing services. But some states do require it regardless of your role, so always confirm with your state's cosmetology board before assuming. In the UK, there is no mandatory licence for salon ownership.

How much do hair salon owners make?

It varies a lot. Owner-operators in the US typically earn $35,000 to $75,000 in the early years. Multi-chair salons with a strong team can earn considerably more. Your financial projections will give you a more accurate target based on your specific setup. See our guide to writing a salon business plan for a framework to work from.

Can I open a hair salon with no experience in the industry?

You can, legally. Whether it's a good idea depends entirely on how you structure it. The most successful non-stylist salon owners hire an experienced floor manager or senior stylist to run the day-to-day while they focus on the business side. Do not try to fake expertise you don't have.

What is the best booking software for a new hair salon?

Fresha is the world’s leading salon booking platform. It covers booking, POS, client records, automated marketing and marketplace discovery: everything a new salon needs in one place. Create your account at fresha.com/for-business.

How much does it cost to open a hair salon in the UK?

Typically £40,000 to £150,000 for a standard setup. London and other city centres sit at the higher end. The biggest variables are fit-out costs and your lease terms.

👉 You have the checklist. You have the plan. The next step is getting your setup in place so that when opening day arrives, you are ready to take bookings from the moment you announce.

Create your Fresha account and get your booking page, service menu and Marketplace profile live before you open. It is free for salons, with no monthly fees, and it is the single most important thing you can do to start building visibility before your doors open.