How much does it cost to open a nail or hair salon?

You have a flair for cosmetic creativity and the skills to transform boring into beautiful. You pair that with an entrepreneurial spirit and what’s your next step?

Opening up your own salon and sharing your gift with the world. If that’s in the cards, you’re probably wondering: “how much does it cost to open a beauty salon or barbershop?” Or more specifically, “how much does it cost to open a nail salon franchise?”

Beauty, hair and nail salon startup costs can vary greatly depending on your particular business model and goals.

You’ll likely be looking at startup cost in the ballpark of £20,000 to £50,000, depending on the nature of your business.

But you’ll need to focus in on the specifics if you want to pin down an accurate estimate. The truth is there’s a lot to consider.

That’s why we created this beauty salon startup cost worksheet and companion guide—to help you parse through the details and get started right.

Here’s what we’ll cover:

Breaking down hair, beauty or nail salon startup costs

Before you can break down the costs of starting a salon, you’ll have to decide what type of salon you want to start.

Hair? Tanning? An all-inclusive spa enterprise?

How much it will cost to open a nail salon can differ quite significantly compared to a general beauty salon, or a barbershop.

One-time costs

The initial, one-time costs to open your salon will vary depending on the type of salon you want to launch and how you plan to go about it.

Do you want to rent or own the physical location? How big is your operation going to be?

These are the kinds of questions you’ll need to answer as you proceed.

You can use these parameters to gauge the estimated costs of your particular startup and answer questions like: “how much does it cost to open a hair salon in the city centre?” or “how much does it cost to start a nail business at home?”

Qualifications

You’re not legally required to have a National Vocational Qualification (NVQ) to open a hair salon or provide hairdressing, barbering, or beauty therapy services in the UK, but it is highly recommended.

NVQs are widely recognised in the industry and free for anyone aged 16-18.

If you’re over 18, you can expect to pay anywhere from £500 to £1600 for 1 year NVQ, depending on the subject and where you’re looking to complete the qualification.

Licences and permits

There are no general licencing requirements for hairdressers and barbers. However, you’ll need to register your salon business with HMRC and with Companies House if you’re setting up a limited company.

You might need a premises licence, as well as various other licences for specific beauty treatments you might want to offer. If you plan to play music in your salon or serve alcoholic beverages to clients, you’ll need a PPL Licence and Personal Licence respectively.

The total cost for all these licences, permits, certificates, and registrations can easily add up to around £2,000.

Physical location

Now that you’ve got the admin covered, it’s time to consider your physical space.

If you’re looking to lease, you’ll most likely be responsible for a security deposit and a couple months of rent up front.

Costs will vary depending on location and size. On average, you can expect to pay around £600-£2,000 per month for a mid-range salon and £2,400 or more per month for a prime location or high-end salon.

If you plan to rent a booth in a salon, typical prices range from £250 to £800 per month in smaller towns and suburban areas, or £800 to £1,500+ per month in larger cities and prime urban locations.

If you want to purchase a space, you can expect to pay a deposit of 25%-40% of the property value for most commercial mortgages.

Salon equipment

Equipment costs will vary depending on type of salon. The chairs alone can cost anywhere from £150 to over £1,000 each. Similarly, each washbasin might come to hundreds of pounds.

A full set of new hair salon equipment could cost you from around £5,000 to more than £30,000, depending on how many workstations you need and the quality if the equipment.

If you’re leasing a space, you’ll pay a monthly fee instead, so equipment costs will likely be more limited.

Initial supplies

Both hair and nail salons use specialty products for client services.

Costs will vary by brand but make sure you consider things like hair capes, towels, shampoos, conditioners, clips, brushes, pins, gloves, hairdryers or hot tools, foils, colour, tint bowls, and staff uniforms.

Stocking up on all beauty salon accessories and supplies you need to get started can easily add up to £10,000 or more.

Initial inventory

If you plan to have a retail portion to your salon, you’ll need to stock an initial inventory of beauty products in addition to shop supplies.

This cost is dependent on the size of the retail display portion of your salon and should be adjusted as you move forward in your venture, driven by customer demand.

Legal and consulting fees

You may need professional help negotiating your lease, closing the property sale, or just muddling through the necessary licences and permits for your salon.

Expect to pay around £200 per hour for these services.

Point of Sale (POS) systems

You’ll need a POS system to get paid by your customers.

Handheld card readers cost around £20-£200 each, and you’ll pay anywhere from £250 to over £1,000 for a countertop terminal or full till system.

Marketing and advertising

You’ll probably want to invest a bit of money on promoting the launch and grand opening of your business.

This might range from around £2,200 at lower end of the scale, to £50,000 or more if you’re going all out.

Social media can be an excellent free tool to promote your business, showcase your work, and build a customer base. But you should also consider setting up website for your business.

This might cost from around £500 for something very simple, up to £10,000 or more for a sophisticated, mobile-responsive site with appointment booking capabilities.

Building improvements and refurbishment

If you’re taking over an existing salon, there may be little to no renovations necessary.

However, if you’re starting with a blank slate, you’ll have to consider permanent and non-permanent fixtures as well as any design elements necessary to your business model.

The average cost of a commercial refurbishment ranges from £800 to £1,200 per square metre, with an average total spend of around £35,000.

Working capital

This is the money you’ll need to keep your salon in business initially, covering things like wages, gas and electricity, replenishing your stock, and marketing costs.

Try to make sure you have enough set aside to cover at least three months of operating expenses, but ideally six—potentially around £10,000-£20,000.

How much does it cost to run a salon monthly?

When thinking about launching your business, you’ll also need to consider ongoing and recurring costs like your beauty, hair or nail salon’s monthly expenses and bills.

Recurring costs are the consistent expenses you’ll be seeing as your business grows. These are your day-to-day, month-to-month, and year-to-year costs of normal business operations.

You can’t avoid them so make sure you think about how to manage your expenses on an ongoing basis. To keep your costs as low as possible, consider using tools such as free accounting software.

Mortgage or lease payments

Whether you rent or buy, you’ll have a monthly payment to keep the doors open. Costs will vary greatly, but make sure to factor them into the budget.

Salon insurance cost

The average salon insurance cost can range from £500 to £1,500 for basic coverage, with more comprehensive policies costing around £2,000.

In addition to contents insurance, you’ll want to consider public liability insurance, employers’ liability insurance, and professional indemnity insurance.

In fact, if you plan to hire any members of staff, public liability insurance and employers’ liability insurance are both legal requirements.

Licences and permits

Some of the licences and permits you need may involve annual or other recurring charged.

Salaries

Depending on your business model, you may be paying a salary to each of your stylists. You could very well operate on a commission-based model.

This cost will range according to your employee payment structure. Also keep in mind that you, the owner, should be taking a salary too.

Cleaning

Cleanliness is key for health compliance as well as your general business image.

Stay on top of regular housekeeping and make sure to account for mops, vacuums, toilet paper, bleach, general purpose wipes, and access to laundry services.

The average cost of professional, commercial cleaning service in the UK is £22 per hour, although you and your staff will still be responsible for the day-to-day upkeep.

Equipment lease payments

If you choose to go the route of leasing your salon equipment, factor these monthly costs into your budget. They will vary depending on your particular lease agreement.

Utilities

Electricity, gas and other utility bills will vary by the kind of equipment your salon uses, as well as the size and location of your business.

But the average costs of business energy bills range from £2,715 to £13,438 for electricity and from £914 to £5,267 for gas.

POS software

In addition to your till and POS hardware, you’ll want to consider POS and payment management software.

There are basic pay-as-you-go apps you can use for free, or you can invest in a more sophisticated solutions, ranging from around £20 to £200+ per month.

Credit card processing fees

Here’s a potentially sneaky expense.

As a modern business, you’ll want to accept credit card payments. Standard business rates for processing fees range from 1.5% to 3.5% of the sale value, on top costs like monthly fees and card machine rentals.

Marketing

You’ll need to get the word out about your business on a continuous basis.

There are a number of avenues you can take (print, broadcast, web, social advertising), some of which are free, but most businesses spend 2-5% of their revenue on marketing.

Contingency budget

You never know what issues may arise. To stay prepared, budget in some contingency money to cover unforeseen, miscellaneous expenses.

Aim for a contingency fund of around 10-15% of your total budget.

Common salon startup myths & mistakes

How much it will cost to open a beauty, hair or nail salon is one of the first and most fundamental questions you need to answer.

But there’s a lot more to think about when starting a salon or barbershop.

Aside from the specific expenses and hurdles of your chosen salon type, there are some general considerations every new business owner should have on their radar.

1. Don’t fear technology. Modern businesses need to take full advantage of today’s computer resources. That means collecting every bit of customer data you can. Does your customer only come in for nail services, or do they take advantage of the spa, nail and hair services you offer? Make note of that! Every transaction should be entered into your digital filing system with details. That data can be used strategically in developing best business practices and for targeted advertising down the line.
2. Don’t pass on quality products. You cannot forgo quality in a professional salon. The products you use will reflect on your quality of service. Some salon owners try to save money by using inexpensive alternatives but end up paying in the long run. Clients come to you for an experience they don’t get at home. It’s simple—better products make for a better experience.
3. Don’t skimp on cleanliness. We talked about this earlier, but we can’t stress it enough—the salon environment should be the epitome of clean. You want your salon to serve as a getaway, a little slice of paradise for your customers. Keep a fresh, neat shop and the clientele will keep coming back.
4. Don’t forget continuing education. Even the most advanced skills can be sharpened. Every stylist working at your salon should go through the same training. You want a skilled staff that is up-to-speed on the latest trends to best serve the brand and style of your salon. Making sure all staff are properly trained on new techniques and styles—keeping their skill set fresh and sharp—keeps clients excited. Moreover, continued education keeps you competitive with other salons, and clients know they will always receive quality service when they walk through the door.
5. Don’t try to please everyone. The truth is you’re not going to attract everyone. So, transform that into a positive. Maintain a pointed aesthetic and perfect it. Devote your efforts to making your salon an authority. Become the expert to best satisfy your target demographic and your ideal client base will find you.

Beauty, hair and nail salon startup costs: Industry tip

Running a salon is hard work. Don’t get bogged down tracking expenses—consider upgrading to online accounting software with Sage Accounting to save time and money.

How to use the salon startup cost worksheet

Our beauty, hair and nail salon startup cost spreadsheets are simple and intuitive to use. Once downloaded, they’re fully customisable to fit your needs.

1. Download the free salon expenses spreadsheet template.
2. Add or remove fields applicable to your startup.
3. Assess your needs and related costs.
4. Make a note of costs that might change or costs to be determined.
5. Plug in your numbers and enjoy the simplified breakdown of your startup and ongoing costs.

Sage lets you focus on building your business, not tracking expenses

Opening and maintaining a salon requires a lot. Day in and day out you invest your time, energy and focus into creating something amazing.

So why waste your valuable time and efforts tracking expenses the old-fashioned way?

Administrative tasks can now be fully automated—so upgrade your business model with Sage Accounting.

You have enough on your plate and our online accounting software can save you time and money. Outsource the busy work and get back to doing what you do best—making your business a success.

Additional startup cost templates

Is our sample salon startup cost calculator not what you’re looking for? Then, please check out our other templates. We also offer solutions for all of your startup needs.

Important information about these salon and barbershop startup costs

The startup costs shown here by industry are merely guidelines and average estimates based on information pulled from a variety of sources. While we have attempted to present the most accurate information available, please be aware that startup costs can vary greatly according to a number of factors, including but not limited to your location, local fees, and contractor quotes. The information presented here is intended to help guide prospective business owners in the search for information on starting a business within a given industry, but should not be interpreted as an exact quote.

Sage provides the information contained here as a service to the public and is not responsible for, and expressly disclaims all liability for damages of any kind arising out of use of, reference to, or reliance on any information contained on this site. While the information contained on this site is periodically updated, no guarantee is given that the information provided is correct, complete, and up-to-date. Sage is not responsible for the accuracy or content of information contained on this site.