Tips for Starting a Salon Suite
Salon suites are increasingly popular among hair stylists because they offer a unique blend of independence, flexibility, and the opportunity to create a totally customized work environment.
While operating your own business out of a salon suite is easier than opening a traditional salon, becoming a successful salon suite stylist still takes a lot of careful planning, especially in the early days.
These tips cover the pros and cons of salon suites, advice for making the most of a small space and important financial and legal considerations to make sure your salon suite business has a solid foundation.
Salon Suite vs Booth/Chair Rental
There are pros and cons to renting a salon suite or a renting a chair in an established salon. There can be very different policies depending on the business renting you the suite or chair, so always ask questions before signing on!
A salon suite might be better for you if:
- Establishing your unique brand identity is your priority
- It’s important to you to have complete control over the customer experience
- Your clients value conversation and would rather not be overheard
- You like to customize the background music for each client
- You don’t like to share equipment or space with other stylists
- You enjoy interior design and want to create a space of your own
- You want to choose the retail products you sell to your customers
- You’re comfortable paying more for rent, insurance, inventory & other expenses
- You have time to spend on marketing, inventory, laundry and other business activities
- You want the freedom to set your own schedule
Commissioned booth or chair rental might be better for you if:
- You enjoy the camaraderie of working in a salon
- You want to learn from other stylists
- You want to work with a support team so you can focus on styling hair
- You don’t want to commit to a lease
- You don’t want to manage appointment booking, accounting & other administrative tasks
- You’re okay with the salon owner establishing minimum requirements for your hours and number of clients
As you can see, it all depends on your priorities! One of the most important things to consider is the stage of your beauty career.
If you’re just starting out, it can be helpful to rent a chair so you can focus on building your skills and client list while letting someone else handle the business side of things.
On the other hand, if you’re an experienced stylist with a loyal client base, renting a salon suite is a very attractive option! You’ll enjoy more freedom and be able to grow your business your own way at your own pace. If you dream of opening your own salon or owning your own salon suite facility one day, renting a salon suite is a step in that direction.
Business Tools for Salon Suites
As a salon suite stylist you’ll be running the show, so it’s smart to have systems in place that streamline business operations and free up more time for appointments.
Booking & payments - You definitely need a phone-friendly app your clients can use to schedule appointments and pay for services. We like Square because it’s easy to use, you can take payments online or in person, and connect it with a ton of other apps like accounting software or social media.
Accounting & taxes - There’s no need to fear tax time as an independent business owner if you keep up with your accounting and bookkeeping year round. Find some accounting software you like (there are plenty to choose from) or outsource your bookkeeping if you feel it’s worth the expense.
Form an LLC - It might sound intimidating, but the truth is forming a Limited Liability Corporation will protect you by separating business liability and debt from your personal responsibility. Work with a business consultant or lawyer to make sure it’s set up right.
Liability insurance - Hopefully you’ll never need it, but it’s important to have salon suite liability insurance that covers professional, general, and product liability, just in case.
Marketing plan - Whether you use salon marketing software or go the DIY route, it’s important to have a system in place to market your salon suite (unless you already have enough clients and a waiting list, and aren’t worried about attracting new business).
How big should a salon suite be?
The average salon suite is around 110 square feet - you might end up with a larger or smaller space depending on cost of rent in the neighborhood you want to do business in.
110 square feet might not sound like much space, but with smart planning you can definitely create a functional and profitable business in a salon suite that size.
Check out our guide with 8 small salon suite ideas for space-saving tips to help you make the most of every square inch!
Salon Suite Equipment
Some salon suites are fully equipped and move-in ready, while others only rent you the space. If your salon suite space requires furnishing, here’s what you’ll need to get started:
- Styling station (or a cabinet & mirror)
- Shampoo station (or shampoo sink)
- Styling chair (or all-purpose salon chair, if offering other services)
- Anti-fatigue mat
- Retail display for your products
Investing in a whole set of salon equipment at once may seem daunting, but you can save money with a custom salon equipment package and spread out the initial cost over time with low-interest financing.
This article covers salon suite equipment and supplies in more detail, along with suggested product pairings and layout examples.
How profitable is a salon suite business?
Profitability depends on volume of business, pricing, retail sales/margins, and business expenses.
Here's the simplest way to determine how profitable a salon suite is: add up the money coming in and subtract the business costs. For example:
Add up (or average) the following for an entire month:
- Revenue from all the services you provide
- Retail product profits
- Any other business income
This total is your gross profit. Then subtract:
- Rent
- Utilities
- Cost of products used in services
- Insurance premiums
- Marketing costs
- Any other business expenses
The amount left over is your net profit. It’s important to look into the details of the salon suite you’re considering renting, since each lease can be different (some include things like water, Wi-Fi and legal assistance while others might not).
Preparing for Salon Suite Business Success
- Define your brand and create a salon business plan
- Talk to other stylists who’ve started a salon suite business to get first-hand advice
- Research the neighborhood you’re considering to scope out potential competitors, foot traffic, parking options, security and other location-specific factors
- Research the company or landlord renting you the suite
- Ask questions about utilities, laundry and maintenance fees to avoid surprise expenses
- Make sure you will have steady income from regular clients to at least cover your rent in the beginning
- Get your LLC, booking software, insurance and marketing plan in place before striking out on your own
- Use a space planner to make sure the salon equipment you want will fit
- Start with minimal decor until you’ve optimized your setup for workflow and efficiency
- Provide a comfortable place for your next client to wait, or schedule appointments with buffer in between to avoid awkward crowding
Don’t hesitate to enlist the help of professionals including an attorney, accountant and insurance broker when establishing your business. You’ll have peace of mind knowing there’s a solid foundation for your business, so you can spend more time impressing your clients!
Check out these four salon suite floor plans and designs to start planning your space, and explore salon interior design ideas for even more inspiration.