How to start a Beauty Salon in UK USA (Business Plan)

Beauty Salon Business

Do you have these questions in your mind?

  • How to start a Beauty Salon Business?
  • How much does it cost to start a Beauty Salon Business ?
  • How to find the best location to open a Beauty Salon Business?
  • What different types of services you can offer as a Beauty Salon business?

     

In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.

Table of Contents

What is the Beauty Salon Business?

With a global market value of around $390 billion, the beauty salon industry is one of the biggest industries in the world right now. 

 

The beauty salon business provides various beauty and grooming services to customers. Services include haircuts, hairstyling, hair coloring, nail care, skincare, makeup, waxing, threading, and other similar services to enhance a person’s appearance and well-being.

 

The beauty salon business can be highly competitive, and success often depends on location, customer service, quality of services, pricing, and marketing strategies.

 

By the end of this article, you’ll learn the steps you need to take to start a Beauty Salon business and the critical considerations for making it a success.

Market Insight: In the UK, the beauty salon market is valued at £9.6 billion in 2023, while in the US, the market is valued at $67 billion in 2023.

Beauty Salon Business

Types of Beauty Salon 

You choose the type of beauty salon by checking the demand for your product in the area & how much you can invest.

 

Some common types of beauty salons include:

 

  • Hair Salon: 
    Specializes in hair care services, such as haircuts, hairstyling, hair coloring, hair extensions, and hair treatments. Hair salons may also offer additional services such as blowouts, perms, straightening, and other hair-related treatments.

 

  • Nail Salon: 
    Specializes in nail care services, such as manicures, pedicures, nail extensions, nail art, and nail repairs. Nail salons may also offer gel nails, acrylic nails, and other nail enhancements.

 

  • Skin Care Salon: 
    Focuses on skincare services, such as facials, skin treatments, peels, microdermabrasion, and other skincare procedures. Skin care salons may also offer waxing, threading, and other hair removal services.

 

  • Makeup Studio: 
    Specializes in makeup services, such as bridal makeup, unique occasion makeup, makeup consultations, and makeup lessons. Makeup studios may also sell makeup products and provide makeup application services for events or photoshoots.

 

  • Spa Salon: 
    Offers a wide range of spa and wellness services, such as massages, body treatments, facials, skincare, and other relaxation and rejuvenation services. Spa salons may also include steam rooms, saunas, and hot tubs.

 

  • Barbershop: 
    It caters specifically to men and offers haircuts, beard trims, shaves, and grooming products, and it often provides a traditional masculine atmosphere.

 

  • Children’s Salon: 
    Focuses on hair care and grooming services for children, offering haircuts, styling, and nail care in a kid-friendly environment.

 

  • Mobile Salon: 
    Operates on a mobile basis, where the salon services are brought directly to clients’ locations, such as their homes, offices, or events, providing convenience and flexibility.

 

  • Eco-Friendly Salon: 
    Emphasizes using natural, organic, and environmentally friendly products in their beauty treatments, catering to eco-conscious consumers who prioritize sustainability.

 

  • Men’s Grooming Salon: 
    Specifically caters to men and provides grooming services such as haircuts, shaves, beard trims, and other male-oriented treatments.

 

Note: The specific type of beauty salon chosen will depend on factors such as the target market, location, services offered, and overall business strategy.

Remember, as a startup, your goal should be to keep your costs low and depend on your skills. If you push the process and try to go full-service from the very beginning, there is a good possibility that you’ll be overburdened and may get lost in the process.

Pros and Cons of a Beauty Salon Business

Pros of a Beauty Salon business:

  • High demand for beauty services.
  • Opportunity to build a loyal customer base.
  • Potential for repeat business and regular clientele.
  • Ability to offer a wide range of services to cater to different customer needs.
  • Opportunities for upselling and cross-selling of products and services.
 

Cons of a Beauty Salon business:

  • Intense competition in the beauty industry.
  • Seasonal fluctuations in demand for certain services.
  • High initial investment in equipment, products, and salon setup.
  • Ongoing costs for supplies, utilities, and staff wages.
  • Need for continuous marketing and promotion to attract and retain customers

How much investment is required for your Beauty Salon Business?

The investment required to start a Beauty salon business in the UK & the US can vary depending on many factors, such as the size and location of the company, the type of services you will provide, and the labor cost.

 

The average cost to open a small beauty salon business in the US ranges from $50K – $100K. While in the UK, the average cost to open a small beauty salon business ranges from £20K to £50K.

 

Some Common Expenses in running a Beauty Salon Business include:

 

  • Leasehold improvements
  • Equipment and supplies
  • Furniture and decor
  • Initial inventory
  • Marketing and advertising
  • Insurance
  • Legal and accounting fees
  • Salaries and wages
  • Operating costs
  • Inventory and product cost
Beauty Salon Business

How much will you earn in the Beauty Salon Business?

It is easier to estimate earnings in the Beauty Salon business with more information about the specific company, such as location, target market, and competition. In addition, factors such as overhead costs, sales volume, and pricing will all play a role in determining earnings.

The average US Beauty Salons revenue is around $300K – $600K annuallywhile in the UK, it’s around £200K – £350K per year, with a profit margin of about 15% – 25%. 

Some approximate costs of Beauty Salon services for you to do the calculations:

  • Haircut: US: $30-$60, UK: £20-£50
  • Hair Color (full head): US: $70-$150, UK: £50-£120
  • Highlights: US: $80-$200, UK: £60-£150
  • Manicure: US: $20-$40, UK: £15-£30
  • Pedicure: US: $30-$60, UK: £20-£50
  • Facial: US: $50-$150, UK: £40-£100
  • Waxing (brows, upper lip, etc.): US: $10-$30, UK: £8-£25
  • Makeup application: US: $40-$100, UK: £30-£80
  • Massage (1 hour): US: $60-$120, UK: £40-£100
  • Nail Extensions (gel/acrylic): US: $50-$100+, UK: £30-£80+

Seasonal Business:

The month of December is actually the busiest time of year for Beauty Salon Business. As this month has the highest number of festivals in a year, beauty industries are in high demand during this month.

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Beauty Salon Business

Checklist of Equipment needed for a Beauty Salon Business

Here is a quick checklist of equipment and supplies you will need to start a Beauty Salon Business:

 

  • Salon chairs (hair styling chairs, manicure/pedicure chairs, etc.)
  • Styling stations with mirrors and storage.
  • Hair washing stations with shampoo bowls and chairs.
  • Hair dryers (hooded or handheld).
  • Hair styling tools (curling irons, flat irons, hair dryers, etc.).
  • Barber chairs (if offering men’s grooming services).
  • Manicure tables with lamps and storage.
  • Pedicure chairs or foot spa units.
  • Nail drills and other nail care tools.
  • Waxing equipment (wax warmers, wax strips, spatulas, etc.).
  • Facial equipment (steamer, magnifying lamp, etc.).
  • Massage tables or chairs (if offering massage services).
  • Towel warmers and hot towel cabinets.
  • Sterilization equipment (for sanitizing tools and equipment).
  • Retail display shelves or cabinets for products.
  • Reception desk or counter.
  • Point of Sale (POS) system for payment processing.
  • Computer or tablet for scheduling and managing appointments.
  • Waiting area furniture (chairs, couches, etc.).
  • Mirrors (full-length and handheld).
  • Lighting fixtures for adequate salon lighting.
  • Hair color mixing and dispensing equipment.
  • Hair extensions and hairpieces (if offering hair extension services).
  • Disposable supplies (gloves, cotton balls, etc.).
  • Hair salon capes, aprons, and stylist tools.
  • Salon décor and interior design elements.
  • Cleaning supplies (disinfectants, brooms, etc.).
  • Laundry equipment (if providing towels, robes, etc.).
  • Music system or speakers for ambiance.
  • First aid kit and safety equipment (fire extinguisher, etc.).

 

Note: Equipment needed may vary depending on the type of beauty salon, services offered, and local regulations. Researching and complying with your area’s relevant rules and requirements before setting up your beauty salon business is essential.

Beauty Salon Business

Types of Cosmetics needed to start a Beauty Salon

When starting a beauty salon, the types of cosmetics you use will determine the kind of success you will have in your business. 

 

Some types of Cosmetics you will need are as follows: 

 

  • Skincare products, including cleansers, toners, moisturizers, serums, masks, and sunscreens.
  • Haircare products include shampoos, conditioners, hair treatments, and hair color.
  • Nail care products, including nail polishes, nail treatments, nail tools, and nail accessories.
  • Makeup products include foundations, concealers, blushes, eyeshadows, lipsticks, and makeup brushes.
  • Waxing products, including strips, waxing kits, wax warmers, and post-waxing care products.
  • Body care products include body lotions, scrubs, body oils, and body washes.
  • Salon tools and equipment include hair dryers, curling irons, flat irons, scissors, combs, brushes, and spa equipment.
  • Salon furniture, including styling chairs, shampoo chairs, manicure/pedicure stations, and reception area furniture.
  • Sanitation and disinfection products include sterilizers, disinfectants, cleaning supplies, and disposable salons.
  • Retail products for sale to clients, such as beauty and skincare products, hair accessories, and beauty accessories, for additional revenue streams.

Trends & Challenges in the Beauty Salon Business

Trends in the Beauty Salon Business:

1. Increased demand for eco-friendly and sustainable beauty salon practices.
2. Growing popularity of virtual and online beauty consultations and services
3. Emphasis on inclusivity and diversity
4. Rise of "clean" and "natural" beauty products
5. Integration of technology, such as augmented reality (AR) and artificial intelligence (AI)

Challenges in the Beauty Salon Business:

1. Increasing competition in the beauty salon industry
2. Evolving customer expectations and demands
3. Navigating changing regulations and compliance requirements
4. Managing rising costs, including rent, utilities, labor, and supplies, which can impact profitability
5. Maintaining and improving customer loyalty in a saturated market

Beauty Salon Business

List of services in a Beauty Salon Business 

In a beauty salon business, the list of services you provide can determine the overall success of your business and will be the main reason your customers come back every time.

 

A few standard Beauty Salon Services are:

 

  • Haircuts and styling include hair shaping, trimming, blowouts, updos, and extensions.
  • Hair coloring and highlighting, including root touch-ups, full color, highlights, lowlights, balayage, and ombre.
  • Hair treatments include deep conditioning, hair masks, scalp treatments, and keratin treatments.
  • Hair perming, straightening, and relaxing services for changing hair textures.
  • Skincare services, including facials, exfoliation, facial masks, and facial massages.
  • Makeup application for special occasions, such as weddings, proms, and events.
  • Eyebrow shaping, waxing, tinting, and threading services.
  • Manicure and pedicure services, including nail shaping, cuticle care, polish application, and nail art.
  • Waxing and hair removal services for various body areas, including eyebrows, lip, chin, underarms, legs, and bikini area.
  • Massage services, including Swedish, deep tissue, hot stone, aromatherapy, and relaxation massages.
  • Eyelash extensions, lash lifts, and lash tinting services for enhancing eyelashes.
  • Bridal and bridal party beauty packages, including hair, makeup, and nail services for weddings.
  • Men’s grooming services include haircuts, shaves, beard trims, and grooming treatments.
  • Spa and wellness services, including body wraps, scrubs, detoxification treatments, and aromatherapy sessions.
  • Specialized treatments include chemical peels, microdermabrasion, microneedling, and dermaplaning for advanced skincare needs.
  • Beauty consultations and personalized beauty plans for clients, including skincare assessments, makeup consultations, and haircare advice.
  • Retail product sales, including beauty and skincare products, haircare products, nail care products, and accessories.
  • Beauty education and workshops include makeup tutorials, skincare tips, and hair styling techniques for clients interested in learning beauty skills.
Beauty Salon Business

Service Rate Card of a Beauty Salon Business 

Please note that rates for services in a beauty salon can vary greatly depending on location, salon size, level of expertise of the stylists or estheticians, and other factors. The following is a sample rate card for reference purposes only:

 

Hair Services:

 

  • Haircut: $30-$100
  • Hair Coloring (single process): $50-$200
  • Highlights/Lowlights: $80-$300
  • Balayage/Ombre: $100-$400
  • Hair Styling/Blowout: $30-$75
  • Hair Extensions: $200-$1,000 (depending on type and application method)
  • Hair Treatments: $20-$100 (depending on type and complexity)

 

Skincare Services:

 

  • Facials: $50-$150 (depending on type and duration)
  • Exfoliation: $30-$80
  • Facial Masks: $20-$60
  • Facial Massage: $30-$80
  • Chemical Peels: $60-$200 (depending on type and strength)
  • Microdermabrasion: $60-$150 (depending on area and number of sessions)
  • Microneedling: $100-$300 (depending on area and number of sessions)
  • Dermaplaning: $50-$150 (depending on area and complexity)

 

Nail Services:

 

  • Manicure: $20-$40
  • Pedicure: $30-$60
  • Nail Art: $5-$20 per nail (depending on complexity)
  • Nail Extensions: $40-$100 (depending on type and application method)
  • Nail Polish Change: $10-$20

 

Makeup Services:

 

  • Makeup Application: $40-$100 (depending on occasion and complexity)
  • Bridal Makeup: $100-$300 (depending on package and customization)
  • Airbrush Makeup: $50-$150 (depending on type and coverage)

 

Waxing and Hair Removal Services:

 

  • Eyebrow Shaping: $10-$25
  • Lip/Chin: $5-$20 (each)
  • Underarms: $15-$30
  • Legs: $30-$100 (depending on area)
  • Bikini: $20-$60 (depending on type and coverage)
  • Brazilian: $40-$100 (depending on type and customization)
  • Full Body Waxing: $100-$300 (depending on area and complexity)

 

Massage Services:

 

  • Swedish/Relaxation Massage: $50-$100 (depending on duration)
  • Deep Tissue Massage: $60-$120 (depending on duration)
  • Hot Stone Massage: $70-$150 (depending on duration)
  • Aromatherapy Massage: $60-$120 (depending on duration)

 

Note: These are general price ranges and actual rates may vary. It’s important to conduct market research and competitor analysis in your specific area to determine appropriate pricing for your beauty salon business.

Steps to consider while pricing your salon services to finalize a profitable pricing strategy:-

1. Calculate your overall budget and running cost per month

2. Calculate your cost per hour

3. Calculate the overall working hours per month

4. Know what others salons are charging

5. Calculate your service cost

Certification and Registration

Licences in a Beauty Salon Business 

While the basic licences such as Business Licence, Health and Safety regulation, Sales Tax Permits are applicable to almost all business (To read more about the licences ‘Click Here to read our Mini Guide’). 

Some specific licenses and permits might be needed to open a Beauty Salon Business in the UK and the US. Those licenses are as follows :

1. Salon Establishment License:
Some local authorities may require a specific salon establishment license, which is issued by the local council or a similar governing body. This license may have specific requirements related to salon safety, sanitation, and equipment.

 

2. Beauty Therapy Licensing:
Beauty salon professionals, such as beauty therapists, nail technicians, and other beauty practitioners, may need to obtain a specific beauty therapy license or registration from a relevant professional body or governing organization

 

3. Cosmetology License:
Beauty salon professionals, such as hairstylists, estheticians, and nail technicians, are typically required to hold a cosmetology or related professional license issued by the state board of cosmetology or a similar governing body. These licenses typically require completion of a state-approved cosmetology program and passing a licensing exam 

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Beauty Salon Business

Shall I go for a Beauty Salon franchise?

Buying an existing Beauty Salon Franchise of a recognized brand is a good idea; however, it is expensive also.

On the other hand, the franchisor will benefit you will all the existing brand image, customer loyalty, advertising, market research & strategies.

In addition, you will get guidance from the franchisor about training the workforce & ambiance of the premises. 

Some of the top Beauty Salon Franchises in the UK and USA:

UK:

  • Supercuts
  • Rush Hair
  • Toni & Guy
  • Saks Beauty
  • TONI&GUY Hairdressing

 

USA:

  • Great Clips
  • Sport Clips
  • Supercuts
  • Fantastic Sams
  • Hand & Stone Massage and Facial Spa

Conclusion

In conclusion, starting a Beauty Salon Business in the UK and the US can be rewarding and profitable. However, conducting thorough market research, creating a solid business plan, and securing the necessary funding are crucial. 

It is crucial to find the right location, choose the right equipment and suppliers, and create a unique and inviting atmosphere for customers. 

Following these steps, you can set your Beauty Salon Business up for success and build a business that customers will love for years.

Want to Save Time in your Business Launch?

  • How to Create a Business Plan
  • What is Market Research, USP, Niche & Positioning
  • How to find a suitable name for your business
  • How to create your brand image (Logo + Branding)
  • How to Register Your Business
  • How to Register for Taxes
  • How to get Licenses / Permits
  • How to Open a Business Bank Account
  • How to Get Business Insurance
  • Which Payment Processing Terminal (POS) to buy
  • How to get Funds for your Business
  • How to do Sales & Marketing – Offline & Online
  • Why have a Website / Blog / Social Media
  • How to build & train your Dream Team
  • How to provide Excellent Customer Service
  • Buying an Old Business Vs Franchisee Vs Own Brand from Scratch

Handpicked inspirational Youtube videos for you

MY BEAUTY SALON TOUR | OMORFIA BY GRACE – YT Channel ‘Omorfia by Grace’

Setting up my home beauty salon | At Home Salon Tour -YT Channel ‘Huyana Beauty’

A. Consider factors such as foot traffic, accessibility, demographics of the area, competition, and parking availability when choosing a location for your beauty salon. Research the local market and assess the demand for beauty services in the area.

A. Legal requirements vary depending on your location, but generally, you may need to register your business, obtain the necessary permits and licenses, comply with health and safety regulations, and follow local zoning laws. It’s crucial to research and comply with all relevant laws and regulations in your area.

A. Develop a comprehensive marketing plan that includes online and offline strategies. Create a professional website, optimize it for search engines, and use social media to engage with potential customers. Utilize local advertising such as flyers, posters, and local media. Offer promotions or discounts for first-time customers and encourage word-of-mouth referrals from satisfied clients.

A. The specific equipment and supplies you need will depend on the services you plan to offer in your beauty salon. Basic essentials may include styling chairs, mirrors, hair cutting and styling tools, manicure and pedicure stations, skincare and makeup products, salon furniture, and reception area furniture. Research the equipment and supplies needed for your specific beauty salon services and budget accordingly.

A. Some of the top Beauty Salon Franchises in the UK:

UK:

  • Supercuts
  • Rush Hair
  • Toni & Guy
  • Saks Beauty
  • TONI&GUY Hairdressing

A.

Some of the top Beauty Salon Franchises in the USA:

USA:

  • Great Clips
  • Sport Clips
  • Supercuts
  • Fantastic Sams
  • Hand & Stone Massage and Facial Spa
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