What Are The Costs Involved With Running A Hair Salon


How much does it cost to run a hair salon? If you've ever dreamed of owning a hair salon, effectively managing your finances is essential to make that dream come true. Running a successful salon goes beyond creativity and passion for beauty. Aspects such as your salon's size, location, business structure, equipment and operational expenses can impact your costs and profitability. Let's explore these key costs and their significance in creating a thriving salon business.

Permits and Licences

At the forefront is securing a business licence, a vital requirement for establishing your salon legally. Keep in mind that obtaining this licence can vary significantly based on the state and city where your salon will operate. Equally essential is ensuring strict compliance with health and safety regulations. Depending on your salon's location, specific permits and certifications may be needed to guarantee a safe environment for your clients and staff.

Create Your Space

First things first, consider leasing or purchasing a salon space that is easily accessible to your target clientele. This ensures that your salon attracts the right customers and maximises foot traffic. You may also need to cover renovation expenses if you want to create an intentional and efficient salon space, providing a pleasant experience for clients and staff. Lastly, investing in high-quality furniture, elegant mirrors and tasteful accents adds a touch of sophistication, creating an inviting and luxurious atmosphere.

Build Your Team 

The heartbeat of any hair salon is its talented staff. From hiring skilled stylists and assistants to friendly receptionists, the right team ensures exceptional customer service. Quality staff may require competitive salaries, benefits and ongoing training to stay updated with trends and styling techniques. Remember to consider payroll taxes and insurance when calculating your staffing costs. 

Your Tools 

Now it’s time to purchase your equipment, furniture and decor! To keep costs in check, create a checklist of essential materials you'll need, such as salon stations with chairs, mirrors, basins, drying stations, and storage space for products.

Stock Up

Ensuring you're well-prepared and equipped with the right products is key to leaving every client satisfied with their salon experience. To meet their ever-changing needs, having a diverse selection of readily available shampoos, conditioners, styling products and hair colours is crucial. This flexibility empowers you to handle last-minute client changes effortlessly and provide nothing short of exceptional service.

At Showpony, we pride ourselves on offering premium wholesale natural hair extensions. Our Remy A+ human hair extensions, with intact cuticles aligned in the same direction as natural hair, promise minimal tangling and beautiful shine. By offering Showpony’s luxurious range of stunning shades including ombres, your salon can enable clients to customise their look and find the perfect match for their natural hair colour. We offer everything from weft hair extensions to tape in extensions for an effortlessly beautiful look each and every time. 

Comfort Is Key 

Creating a comfortable environment for your clients is essential to running a successful salon. This means incurring utility expenses to ensure your salon is well-lit, adequately cooled or heated and equipped with a reliable water supply. While utility expenses are a necessary part of salon operations, there are practical ways to manage these costs effectively. Investing in LED or energy-saving light fixtures can significantly reduce electricity consumption without compromising lighting quality.

Build Your Brand 

When building a high-end salon brand, nailing your marketing and advertising strategies is a must! From eye-catching websites to engaging social media posts and online ads, you can reach a whole new audience and make meaningful connections with potential clients. To boost your salon's visibility even more, incorporate some print media magic - think flyers, banners, brochures and oh-so-classy business cards. 

Looking for some tips and tricks to get started? Hear from superstar hairdresser and multi-award winning digital influencer, Natalie-Anne, on how to build your brand and boost your online presence. Access our Social Media Savvy Course for only $29! 


Protecting your salon business is crucial, and insurance plays a significant role in mitigating risks. General liability insurance safeguards against unforeseen incidents, while property insurance protects your physical assets. Additionally, worker's compensation insurance ensures that your staff is covered in case of accidents or injuries at the workplace.

Maintenance and Repairs

Maintaining a well-kept salon is essential for a positive customer experience. Regular maintenance, including cleaning and necessary repairs, can help your salon look its best. Upgrading technology and tools can help optimise operational efficiency and keep your salon up-to-date with the latest innovations.

Professional Services

Managing finances and legal matters is crucial to running a successful salon — that’s why you’ll need to consider the cost of hiring experienced accountants and bookkeepers. They'll help you stay on top of your salon's financial health, keeping you informed about profits, expenses and potential areas for improvement. You might also want to adopt salon management software and point-of-sale systems to streamline day-to-day operations, from scheduling appointments and shifts to handling inventory and sales.

Unlock Salon Success: Become a Showpony Stockist Today!

In the world of salon ownership, strategic financial decisions pave the path to success. We understand that staying ahead in the competitive salon industry requires continuous growth and skill enhancement. That's why Showpony's salon education programs are valuable for aspiring salon owners. From mastering basic application and cutting techniques to delving into advanced session styling, our comprehensive courses cover it all. We also offer opportunities for in-person salon education if you’re looking for personalised guidance from seasoned professionals.

Find the key to exceptional salon experiences by becoming a Showpony Stockist today! As a valued Showpony partner, you'll have access to an impressive array of premium hair extensions, styling products and top-of-the-line tools, all at wholesale pricing. Check out our range of skin weft hair extensions and micro bead hair extensions to discover the difference!