Starting your own salon can be a rewarding business move if done right. Whether you’re aiming to open a small beauty parlour, expand your freelance setup, or launch a full-scale salon, this guide will walk you through the process.
You’ll learn everything—from understanding how to start a beauty salon business to managing day-to-day operations. We’ll cover planning, budgeting, legal paperwork, location selection, and hiring staff. You’ll also discover practical tips for setting up a beauty salon on a small budget, along with strategies to grow it over time.
Table of Contents
Choosing the Right Location for Your Salon
Location plays a critical role in the success of your salon. Start by identifying areas with high footfall—near markets, malls, or residential hubs. Ensure the place is easy to access and visible from the main road.
Before finalising, check local zoning laws and confirm that commercial activity is allowed in the area. You’ll also need to get the required permits for operating a beauty salon. Evaluate rent carefully. A low-rent spot with no visibility or high competition might not be ideal. On the other hand, a slightly higher rent in a prime location can bring more walk-ins and long-term profits.
If you’re on a budget or testing the waters, consider running a home-based salon or renting a chair in an existing setup. It’s a smart way to reduce initial costs without compromising on service delivery.
Salon Startup Checklist
Register your salon business officially.
Obtain a GST number.
Apply for a business PAN card.
Check and secure necessary permits like trade licence or health permits from the local municipal office.
Choose a suitable location and complete rent or lease agreements.
Plan and purchase essential salon equipment.
Hire qualified staff.
Set up basic marketing strategies to attract initial customers.
Legal and Compliance Requirements for Salon Owners in India
Trade Licence from your local municipal authority (apply via your city’s municipal website or office)
GST Registration if your annual turnover exceeds ₹40 lakh (₹20 lakh for special category states), (apply at www.gst.gov.in)
Health and Safety Certificate from the local health department
Fire Safety NOC from the local fire department
Follow labour laws if you plan to hire staff—this includes minimum wage, PF, and ESI compliance
What’s the Cost of Starting a Salon?
Starting a salon involves several upfront and ongoing expenses. Your primary costs will include renting a suitable space, purchasing equipment, getting licences, and hiring skilled staff. These costs vary depending on the city, the size of your salon, and the services you plan to offer. On average, you’ll need anywhere between ₹5 lakh to ₹50 lakh to get started.
Beyond these, there are hidden costs—like utility upgrades, maintenance, and software subscriptions—that often catch new salon owners off guard. It’s essential to account for these unexpected costs to avoid setbacks.
Essential Salon Equipment to Purchase
When setting up a beauty salon, start with the basics—salon chairs, mirrors, shampoo stations, hair dryers, steamers, trolleys, and storage units. These are essential for daily operations.
Choose equipment that’s durable, easy to clean, and comfortable for both clients and staff. Investing in good-quality tools saves money in the long run. If you’re starting on a tight budget, explore second-hand or rental options without compromising on safety and hygiene.
How to Hire the Right Hair Stylists?
Hiring the right team is one of the most important steps in setting up a successful salon. Skilled stylists with the right attitude and personality can build client loyalty and grow your brand.
Always screen applicants through interviews and hands-on tests. Focus on both technical ability and how they interact with clients. A strong team is the backbone of a growing salon, and to build that team, focus on these six key areas:
1. Skill Set
Hire stylists who are trained in cutting, colouring, styling, and basic treatments. Ask for certificates and check their work through a short trial. Make sure they can handle real client needs confidently.
2. Attitude
A good stylist must be punctual, respectful, and willing to learn. Choose someone who listens, accepts feedback, and stays calm under pressure. A positive attitude improves both teamwork and customer experience.
3. Personality
Your staff should be friendly, presentable, and confident while dealing with clients. Clients often return for the overall experience, not just the service. A warm personality builds long-term client trust.
4. Get an Employee Identification Number (EIN)
When hiring staff, apply for an Employee Identification Number from the Income Tax Department. This helps you manage salaries, taxes, and stay legally compliant. It’s a must for any employer.
5. Master the Hiring and Retaining Process
Use job sites, local beauty schools, or referrals to find the right people. To retain staff, offer fair hours, regular training, and a good work environment.
6. Choose the Right Compensation Model
Decide how you’ll pay your team—fixed salary, commission, or both. Match the model to your budget and salon size. A fair payment system helps motivate staff and reduce turnover.
Best Salon Software Options
Using salon software helps you manage bookings, payments, and staff easily. Good tools save time, reduce errors, and keep your salon running smoothly. Look for software that’s easy to use, fits your budget, and offers good customer support. Make sure it works well with other tools like payment gateways or marketing platforms.
1. Point of Sale (POS) System
A POS system helps you manage billing, track sales, and handle customer payments. It keeps a digital record of all transactions and stock levels. Popular options in India include Razorpay POS, Loyverse POS, and Zoho POS. Prices start around ₹0–₹2,200 per month depending on features.
2. Scheduling and Appointment Software
This software lets clients book appointments online and sends automatic reminders. It reduces no-shows and keeps your day organised. Tools like Vagaro, Fresha, and Salonist are commonly used in Indian salons. Many offer free basic plans, and paid plans start from ₹0–₹2,500 per month.
How to Create a Salon Marketing Plan?
Start by identifying who your ideal customers are—working professionals, students, or homemakers. Set clear marketing goals like getting new walk-ins, building repeat clients, or growing your online presence.
Focus on building a strong digital presence with a website, Instagram, and Facebook page. Also use local marketing—distribute flyers, offer referral discounts, and collaborate with nearby shops or gyms.
1. Build a Marketing Strategy for Your Salon
Start by listing all your salon services, pricing, and special offers. Share this clearly on platforms like Instagram, Facebook, WhatsApp, and Google Business. Use a mix of online promotions and offline methods like flyers. Track which marketing ideas bring in the most clients. Update your plan monthly to stay on track.
2. Stay Updated with Industry Trends
Follow top beauty pages on Instagram and YouTube to see what’s trending. Keep an eye on popular hairstyles, treatments, and seasonal demands. Attend local workshops or online webinars if possible. Bring in trends that suit your salon style and customers. Staying updated helps you stay ahead of the competition.
3. Offer Referral Programs and Gift Cards
Encourage happy clients to refer friends by giving small discounts or freebies. Create gift cards for services or special packages—these work well during festivals or celebrations. You can sell or offer them as rewards. It brings in new clients and builds loyalty.
What Makes a Salon Profitable?
A salon becomes profitable when it earns more than it spends—consistently. Key factors include smart pricing, keeping regular customers, and running daily operations smoothly.
Good management is important—both financial and operational. You need to manage staff, services, and daily tasks smoothly while also keeping an eye on your income and expenses.
Track every expense carefully—rent, salaries, products, and electricity. This helps you avoid overspending and find ways to save. To maximise revenue, upsell add-on services, promote higher-value packages, and reduce empty slots. A well-managed salon earns more by making the best use of time, space, and staff.
How to Start a Salon with No Money?
1. Minimise Upfront Costs
If you don’t have money to start, begin small. You can work from home, rent a chair in an existing salon, or offer doorstep services. Avoid buying expensive tools right away—start with only the basics. Look for second-hand or budget-friendly equipment. Focus on giving great service and slowly reinvest your profits to grow.
2. Attract Investors
You can pitch your idea to friends, family, or local mentors who may be open to investing. Prepare a simple plan showing how you’ll earn, manage clients, and grow the salon. A few regular clients and a strong work ethic can build trust. Investors are more likely to support you if they see your potential and commitment.
3. Apply for Grants or Small Business Loans
Apply for government grants or small business loans for new entrepreneurs, like PMEGP and Mudra loans. These can help cover setup costs like equipment or renting a space. Visit bank branches or official portals to apply. Having a basic business plan and required documents ready will improve your chances of approval.
Why Do Salon Businesses Fail?
Salon businesses often fail due to poor management. Without proper control over staff, expenses, and daily operations, it becomes hard to stay on track. Many salons don’t invest in marketing, so people don’t know about their services. This leads to low footfall and fewer clients.
Some owners underestimate how much money is needed to run a salon. Costs like rent, salaries, and products add up quickly if not planned properly. Failing to adapt to new trends or customer preferences can also lead to failure. Bad customer service and not offering fresh, updated services push clients away.
How to Make Salon Management Easier?
Managing a salon becomes much easier when you use the right tools and systems. Salon management software helps you track bookings, manage payments, and monitor staff schedules—all in one place.
Create simple standard operating procedures for daily tasks. This keeps things consistent and saves time, whether it’s how to welcome clients, handle walk-ins, or close for the day.
Clear communication is key. Talk regularly with your staff to avoid confusion and keep everyone aligned. Also, stay in touch with your clients—send reminders, confirm bookings, and ask for feedback.
Setting Up Payment Infrastructure for Your Salon
A strong payment system is essential for smooth daily operations and a better customer experience. It helps avoid billing errors, saves time, and builds trust with clients. Salons today accept various payment methods—UPI, debit/credit cards, mobile wallets, and net banking. To enhance convenience, they also use tools like QR codes and payment links to facilitate these transactions
Hence, you should choose a secure and easy-to-use payment system to handle all types of transactions. For example, Razorpay POS is great for accepting payments directly at your salon, while Razorpay Payment Links let you collect payments remotely—perfect for home visits or online bookings.
You can also integrate your payment system with salon booking tools. This allows quick checkouts and reduces wait times for customers. Make sure you track every payment and send instant receipts. It improves transparency and leaves a professional impression on your clients.
Frequently Asked Questions
1. What licenses and permits are required to open a salon?
To open a salon, you need a trade license from your local municipal office. You also need to register for GST and get a fire safety certificate. If you plan to hire staff, make sure you follow labour laws. Health and hygiene certificates may also be required depending on your location.
2. Do I need a professional qualification to open a beauty salon?
No, it’s not mandatory to have a formal qualification. But having training or experience in beauty services adds credibility and helps in managing staff better. You can also hire trained professionals to handle services.
3. Should I buy a franchise or start an independent salon?
If you want brand support and a ready-made setup, a franchise is a good option. But if you prefer full control and creativity, starting your own salon gives you more freedom. Basically, it depends on your budget and business goals.
4. How much does it cost to start a beauty salon?
The cost varies based on size, location, and services. A small home-based salon can start with approximately ₹2 lakh, while a full-service salon in a commercial area may need ₹5–50 lakh or more. Always plan your budget in advance.
