Opening a hair salon is as much about stylists as it is about the space: your revenue is the chairs you can fill with skilled, licensed stylists who bring and keep clients. The first decision is whether stylists will be employees, commission-based or chair renters.
1. Choose the staffing model. Employees, commission, booth rental or a hybrid — it changes revenue, control and tax obligations.
2. Licences. Stylists need cosmetology licences; many states also require a salon establishment licence.
3. Find the space. Plumbing for shampoo bowls, ventilation for chemical services, visibility and parking.
4. Fit-out and equipment. Chairs, stations, shampoo units, dryers and booking software.
5. Recruit stylists. Stylists with existing clients shorten the ramp-up.
6. Set pricing and retail. Price by stylist level and service time; stock retail that stylists actually recommend.
7. Write the business plan. A plan shows chair utilisation, average ticket and the staffing model's economics.
Revenue is services (cuts, colour, treatments) and retail products. In an employee or commission model the salon keeps service revenue and pays stylists; in a booth-rental model stylists pay rent and keep their service income. Colour and treatments raise ticket size; retail adds margin.
Do I need a cosmetology licence to own a salon?
Often not to own one, but stylists must be licensed and many states require a salon licence.
Is booth rental or commission better?
Booth rental gives steady rent with less control; commission gives more revenue and control but more employer obligations.
Do I need a business plan for a salon?
For a lease or loan, yes — it models chair utilisation and staffing.