How Much Does It Cost to Start a Hair Salon Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 20
- 2 min read
Starting a hair salon business is a dream for many beauty professionals—but turning that dream into reality requires careful financial planning. From leasing a space to buying equipment and securing insurance, understanding your startup costs is essential to launching a successful and sustainable salon.
At Wexford Insurance, we help salon owners protect their investment with tailored salon insurance coverage. In this guide, we’ll break down the typical costs of starting a hair salon and how to budget wisely—including what you can expect to pay for insurance.
Average Cost to Start a Hair Salon
The cost to start a hair salon typically ranges from $60,000 to $130,000 for a mid-range setup. High-end salons in premium locations can exceed $500,000, while budget-friendly or home-based salons may start around $10,000 to $35,000.
Key Startup Expenses
1. Salon Space and Renovations
Lease deposits and monthly rent: $1,600–$4,000
Renovation and interior design: $50,000–$150,000
Plumbing, lighting, flooring, and layout customization
2. Salon Equipment and Furniture
Styling chairs, wash stations, mirrors, dryers: $10,000–$25,000+
POS systems and appointment software: $1,500–$10,000
3. Licensing, Permits, and Insurance
Business licenses and cosmetology permits: $500–$5,000
Salon insurance: $420–$1,320 annually on average, depending on coverage types and business size
4. Inventory and Supplies
Hair products, towels, styling tools: $8,000–$25,000
5. Marketing and Branding
Website, signage, social media, and launch promotions: $2,000–$15,000
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6. Staffing and Payroll
First-month payroll and training: $5,000–$30,000
Insurance Costs for Hair Salon Businesses
Here’s a breakdown of typical insurance costs for salons:
General Liability Insurance: $35–$110/month
Commercial Property Insurance: $60–$100/month
Professional Liability Insurance: $42–$183/month
Workers’ Compensation Insurance: $50–$250/month per employee
Commercial Auto Insurance: $147/month (if applicable)
Tips to Reduce Startup Costs
Buy gently used equipment
Start with a smaller space or shared salon
Handle basic renovations yourself
Use free or low-cost marketing tools
Final Thoughts
Starting a hair salon requires a significant investment, but with smart planning and the right insurance, it can be a profitable and rewarding business. From equipment and staffing to branding and protection, every decision impacts your bottom line.
At Wexford Insurance, we help salon owners launch and protect their businesses with confidence. Whether you're opening your first salon or expanding your brand, our team is here to support you.
📞 Ready to protect your salon business? Contact Wexford Insurance today
