The cost of opening a hair salon: what to budget for

Rent and fit-out

Rent, plus the work needed to bring a space up to salon standard — electrical and plumbing work, wash units, decor — is usually the single biggest line item. Location affects both this cost and how easily clients can reach you, so the cheapest rent isn't always the better deal.

Equipment and consumables

Alongside fixed equipment like chairs, mirrors, and wash units, consumables — colour, treatment products — are a recurring budget line. Without stock tracking, this category swings between overspending and running out at the worst possible moment, and both hurt margins.

Licensing, permits, and legal setup

Business licensing, tax registration, and trade registry requirements vary by city and business type. Building these into your budget and timeline early avoids surprise delays around opening day — it's worth reaching out to your local municipality and tax office well ahead of time.

Staff and commission budget

Commission payments on top of base pay need to be budgeted alongside salary. As the team grows, shift and leave planning also becomes a real time and coordination cost, not just a scheduling detail.

Software and digital infrastructure

Bringing bookings, client records, stock, and finances into one system saves both time and error compared to managing them across separate notebooks and apps. Budgeting for this from day one helps the business grow in an organised way from the start.

Marketing, client acquisition, and working capital

Budgeting for Instagram, WhatsApp, and local marketing during the launch period is one of the fastest ways to build an initial client base.

Finally, occupancy is often lower in the first few months than expected. Setting aside a working capital buffer — a few months of rent, salaries, and fixed costs — is the single most important safety net for the period right after opening.