How to Open a Successful Hair Salon

So, you are thinking of starting your own hair salon?


The salon industry is on a rise in recent years, and it’s definitely a lucrative business opportunity. 

However, even if it’s a great industry with a lot of success potential, it doesn’t mean you’ll automatically achieve success. You’ll still need to beat your competition, and thus proper planning is very important. 

Here, we will discuss useful tips in planning and opening a successful hair salon, which can be the best investment of time you can make in starting your business. 

Without further ado, let us start right away.

Know Your Target Audience

There are more than 870,000 hair salon businesses in 2021, and that is in the US alone. Meaning, although a hair salon is a lucrative business, you’ll get a lot of competition.

So, you’ll need to really identify who your target audience is so you can make sure your hair salon has something unique to offer so it can stand out from your competition.

For example, if there are a lot of families with children in your area, then you can open a children-only hair salon to differentiate your business. 

Do your market research homework: conduct surveys, interview potential clients and monitor social media. If necessary, randomly interview people in the street or neighboring coffee shops to gather more data.

Develop Your Business Plan

Don’t underestimate the importance of having a proper business plan when starting your hair salon business. 

A business plan is especially important if you want to secure outside fundings (i.e. investors), but even if you are going to fund your business yourself, it’s still useful as a roadmap for achieving success with your hair salon.

A business plan will help you to focus on your objectives, and will also help ensure you stay on budget when launching and running the business.

There are various business plan templates available online, some designed especially for spa and salon businesses. They can significantly help in streamlining the process of creating your business plan, so there’s simply no excuse not to have one. 

Include as much detail as possible in your business plan, and when you need to make assumptions, be as conservative as possible.

Legal Requirements of Your Hair Salon

Different countries and locations have different regulations for opening a hair salon, and you might be required to have certain types of licenses and permits when you open a hair salon. 

If you are not a licensed hairdresser, then you may need to employ or partner with one. Do some research online or visit local communities to check your local regulations for starting a hair salon business.

Also, you might be required to be insured before you can start your hair salon business, although it’s always a good idea to protect your business with insurance even if you aren’t legally required to do so. 

You will need at least the following:

  • Public liability insurance: an important policy for hair salons, will cover legal fees and compensation if a customer or other parties suffers injury or illness while in the salon.
  • Employers liability insurance: if you employ professional hairdressers and other employees, this policy is typically a legal requirement. This policy will cover legal costs and any compensation when a member of staff is injured or experienced illness at work and decides to take legal action against you.
  • Products liability insurance: your salon most likely sells hair products, so this can be an important policy that will cover legal fees and compensation in the event when a customer is injured or experienced illness by a product bought from your hair salon.

Have an Intuitive Booking System

You’ve put in all the hard work to attract new clients for your hair salon, and the last thing you’d want is for them to back out just because it’s too difficult to book your salon.

This is where having a professional hair salon scheduling and booking software like Bookeo can be extremely beneficial in helping your hair salon business grow.

With Bookeo you’ll gain access to various features to improve your hair salon’s service excellence, including but not limited to: 

  • Send automatic notifications and reminders to your clients to reduce missed appointments
  • Manage your online appointment calendar from your PC and mobile devices
  • Notify staff with automatic email and text notifications for new, rescheduled, or canceled appointments
  • Track all reservation steps
  • Customize your appointment calendar with color coding and customize your business hours.

Analyze Your Competition

You shouldn’t be afraid of your competition. 

After all, the more competition you have, it’s proof that there’s a valuable market in your location. 

What you should do, on the other hand, is to analyze your competitors closely: understand what they are doing well and what’s not working for them. Analyze their customers, and figure out how you can be better than them. 

The basic idea is to avoid their mistakes and imitate (while modifying) what’s working for them. 

Nowadays, even a simple Google search can help you identify who are your closest competitors, and researching online can provide a lot of valuable information. 


Starting a hair salon business can be a long journey, and the tips we’ve shared above can be the solid foundations for your journey. Arguably the most important thing to do when starting a hair salon business is to identify and understand your audience: the better you understand their needs and their behaviors, the more effective you’ll be able to attract them to visit your salon.


Sudarsan Chakraborty is a professional writer. He contributes to many high-quality blogs. He loves to write on various topics.