Costs you should expect with your beauty salon business

Running a beauty salon is very expensive. This means that you need to consider the amount of money you will spend on expenses and how you wish to make profits before considering opening or starting such a business. Below are some costs you should look forward to when running a beauty salon;


The first and most apparent cost you will incur when running a beauty salon business is rent. You have to pay for space where you will have your company. Most of the time, the rent is paid monthly. This means that when considering the costs of running a beauty salon, rent should be at the top of the list of your monthly expenses. Additionally, before you move into the rental space for your salon business, you may have to run some renovations. Therefore, when accounting for the salon for rent, you may also want to include the renovations’ cost.

License and permit

Like any other business, if you want to run a beauty salon, you will have to get licenses and permits. Therefore, before you consider opening a beauty salon, you would help if you did your due diligence. This is important because the licensing and permits differ from one location or state to the next. Note that licensing and permits are very important. Failure to comply and get proper licensing may cost you a hefty fee.

Additionally, you may need to get health permits if you wish to add services like facials and nail care to your business catalog. If you want to sell products in your beauty salon, you will need a resale permit. In other words, you may have to get several permits depending on your business and needs. Therefore, one of the highest costs you should expect with your beauty business is licensing and permits. However, these costs are usually paid annually or bi-annually, depending on the type and location.

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Additionally, another essential element you need to consider before opening a beauty salon business is insurance. In that case, purchasing insurance will help protect you and your business from the financial crisis in case of issues like fire breakouts. It will also help protect you in case a client gets injured on your premises. Therefore, you need to set aside money for renters’ insurance. Renters insurance will help cover unexpected events, including property losses from natural disasters. The amount of money you have to spend on insurance depends on the number of policies and the amount of coverage you take. When thinking about the quality and quantity of insurance, you need to consider your property’s total value and the potential lawsuits your business may suffer. Therefore, this is not something you decide on in a night or a few hours. It will help if you go professional assistance.


The elements mentioned above are some of the first things you need to expect to spend money on when running a beauty salon. However, there are several other costs to expect, like supplies. You cannot run a beauty salon without supplies like beauty and styling products, dyes, and shampoos, to name a few. It would help if you got supplies that will last at least one month so that you do not have to keep running to get individual products at clients’ requests. Note that beauty supplies are very costly. Therefore, it may help if you did your due diligence before getting into this kind of business. Beauty products may cost you between 2000 and 15000 dollars per month depending on your business’s size and the number of clients you serve.


Additionally, you also need to expect to pay for utilities like electricity, water, and gas. It would help if you recognized that running a beauty salon business means spending many utility bills. The amount of money you have to pay depends on the size of your beauty salon. For instance, a larger beauty salon business will cost you higher energy bills and water bills. Additionally, your bills will be influenced by other factors like extravagant lighting and entertainment for clients (TV and radio).

Staff payroll

Most of the time, running a beauty salon is more work than one person can handle. Most of the time, you find that you have two or more clients simultaneously, and they all have to be served. For this reason, most beauty salon businesses have employees to perform different tasks. For instance, if the salon offers facials, nail care, and hair care, the salon will have professionals handling each job or segment. Therefore, another cost you should expect is salaries for the staff. The amount you pay depends on the number of staff you have and the number of clients they have to pay every month. Sometimes, the team is paid on commission.


The costs mentioned above are usually recurring. This means that you may have to pay each month or year. In addition to the prices mentioned above, you also need to account for other things like marketing and processing fees. You can always reduce the costs by getting a cheap rental space for your business. Occupyd will help you find the best and most affordable rental spaces for your beauty salon business.