Opening a salon is a dream for many beauty professionals and entrepreneurs. But one of the most common questions we hear is: how much investment is needed to open a salon? Whether you’re planning a cozy setup in your hometown or a premium outlet in a metro city, understanding the financial side of salon ownership is key to success.
In this blog, we’ll walk you through everything you need to know about salon setup cost, the cost to open a salon in India, and where you might need to invest the most. So, grab your notepad, future salon owner — let’s plan smart! how much investment is needed to open a salon?
Understanding the Real Cost of Opening a Salon in India
Initial Investment vs Recurring Costs
Your total salon investment falls into two buckets:
- Initial investment: One-time costs like furniture, interiors, licenses, etc.
- Recurring costs: Ongoing expenses such as rent, salaries, and products
Being aware of both is crucial to budgeting accurately.
Key Factors That Influence Salon Setup Costs
The salon setup cost can vary depending on:
- City and location (Tier 1 vs Tier 3 cities)
- Salon size and format (small, mid-size, premium)
- Number of services offered (hair only vs full beauty services)
- Branding and interiors
Location Matters: How Salon Location Impacts Your salon Investment
Tier 1, 2, 3 City Cost Comparison
- Tier 1 Cities (Mumbai, Delhi): Higher rent, premium clientele — budget starts at INR 25-30 lakhs
- Tier 2 Cities (Indore, Lucknow): Moderate rent — budget starts at INR 15-20 lakhs
- Tier 3 Cities (Nagpur, Ranchi): Lower rent — budget starts at INR 8-12 lakhs
Rental vs Owned Property – What's Cost-Effective?
- Rental Property: Low upfront cost but monthly outflow
- Owned Property: High initial investment but no long-term rent
Tip: Start with rental space to test the market.
Infrastructure & Interior Setup: Breaking Down Capital Costs
Furniture, Equipment & Salon Tools
- Styling chairs, mirrors, trolleys: INR 1-2 lakhs
- Hairdryers, steamers, facial machines: INR 1-2 lakhs
- Wash stations: INR 50,000 to 1 lakh
Interior Design & Ambience Setup
- Lighting, flooring, wall design: INR 3-5 lakhs depending on style
- Waiting area, reception setup: INR 1-2 lakhs
Technology Needs – POS, CRM, and Software
- Salon software, billing system: INR 20,000 to 50,000/year
- CRM tools (like YourSalon): Essential for automation and marketing
Legal & Licensing Costs to Start a Salon
Salon Registration & GST
- Register your salon as a proprietorship or private limited: INR 5,000 to 15,000
- GST registration: INR 1,000 to 5,000 (consultant fees)
Municipal Trade License & Health Permits
- Trade license from local authority: INR 2,000 to 10,000/year
- Health and hygiene certificates: INR 1,000 to 3,000
Insurance and Compliance Expenses
- Fire insurance, liability cover: INR 10,000 to 30,000 annually
Don’t skip this section — legal trouble is costly!
Staffing and Training: Building Your Salon Team
Hiring Stylists, Receptionists, and Support Staff
- Average stylist salary: INR 15,000 to 30,000/month
- Receptionist/admin: INR 12,000 to 20,000/month
- Helper/cleaner: INR 8,000 to 12,000/month
Training, Certifications, and Onboarding Costs
- Monthly training sessions: INR 5,000 to 10,000
- Upgrading staff skills boosts client satisfaction
Marketing & Branding Budget: What to Allocate
Salon Launch Promotions
Opening day offers and influencer invites: INR 10,000 to 25,000
Monthly Ad Spend & Digital Marketing Tools
- Google/Facebook ads: INR 5,000 to 15,000/month
- Email/SMS campaigns via CRM: Affordable and ROI-focused
Website, Signage, and Branding Assets
- Logo, banners, flyers: INR 10,000 to 30,000
- Professional website: INR 10,000 to 25,000
Pro tip: A good brand identity brings clients faster than a discount.
Recurring Monthly Costs, You Should Plan For
Product Stock & Consumables
Hair color, shampoo, creams, wax: INR 15,000 to 40,000/month
Salaries, Utilities, and Maintenance
- Staff salaries: INR 50,000 to 1 lakh/month
- Electricity, water, internet: INR 8,000 to 15,000/month
Software Subscriptions and Customer Retention Tools
- Salon CRM tools: INR 1,000 to 3,000/month
- Helps manage appointments, track loyalty, and automate marketing
Sample Cost Breakdown: How Much Investment Is Needed to Open a Salon?
Budget Salon vs Premium Setup Comparison
Expense Area | Budget Salon (INR) | Premium Salon (INR) |
Rent/Lease Deposit | 1,00,000 | 5,00,000 |
Interiors & Furniture | 3,00,000 | 10,00,000 |
Equipment & Tools | 1,50,000 | 4,00,000 |
Licenses & Legal | 20,000 | 50,000 |
Marketing Launch | 25,000 | 1,00,000 |
Staff & Training | 1,50,000 | 3,00,000 |
Misc. Costs | 50,000 | 1,50,000 |
Total | 7-8 lakhs | 20+ lakhs |
Estimated Startup Cost Range (INR) for Indian Market
- Basic salon: INR 5-8 lakhs
- Mid-size unisex salon: INR 10-15 lakhs
- Premium branded salon: INR 20-30 lakhs+
Funding Your Salon: Where Can You Get Capital?
Self-Funding, Loans, and Government Schemes
- Savings and family support
- Business loans from banks (check MSME schemes)
- Government support via Mudra Loan or Stand-Up India scheme
Business Plans & Pitching for Investors
- Create a strong plan with financial forecasts
- Pitch to local angel investors or salon chains looking to partner
FAQs: Answering Common Questions About Salon Investment
How much does a small salon cost to start in India?
A small salon can start with an investment of INR 5-8 lakhs, depending on the city, interiors, and service range.
Can I open a salon with low investment?
Yes, with smart planning, shared space, and focused services, you can launch a salon with as little as INR 3-5 lakhs.
What are the hidden costs of salon setup?
Hidden costs include branding, staff uniforms, signage, maintenance, and periodic product upgrades.
How long does it take to recover the salon investment?
Typically, salons can break even in 12-24 months, provided they manage clients well and market effectively.
Is it better to open a franchise or start my own brand?
- Franchise: Lower marketing headache, higher initial fee
- Own brand: More control, but requires branding effort
Final Thoughts: Planning Smart for Salon Success
Key Takeaways for Budgeting Your Salon Investment
- Plan for both initial and monthly costs
- Choose location and size wisely
- Invest in automation tools like CRM for cost-saving
- Keep marketing consistent and creative
Tools to Help You Manage Costs Efficiently
- Use YourSalon CRM to automate bookings, reminders, and campaigns
- Track expenses monthly and adjust strategy accordingly
Remember: The salon industry is booming in India — with the right investment and tools, your dream salon can become a reality!
