Things you should know before starting a Beauty Salon Business

Fast growing and expanding, the beauty salon industry is one of the strongest performing within personal care in the UK. It is a £4.2 billion industry that keeps on expanding and employing over 131,450 people annually. No wonder the spate of growth recorded in the industry in recent times. Start-up barriers are minimal thereby creating a high-level of competition within the industry. The latest statistical figures from business information specialists, CCH Business Focus, estimated the average gross profit of beauty salons at 75.8% overshadowing that which obtained in restaurants (62.3%) and clothiers (42.5%).This clearly shows that beauticians are really on the fast lane making pretty good monies.


A typical full-service beauty salon business offers the following services:

  • Skin Care: Facials, massage and body waxing, etc.
  • Hair: hair and scalp treatments; haircuts, trims and style; weaving and curling; perms and relaxers; shampoo and conditioning; colours; etc.
  • Nails: manicures and pedicures; nail repair, hand conditioning treatments; polish and sculptured nails; etc.
  • Sales beauty products: acting as a one-stop-shop, both for additional profits and customer-retention, for a wide range of professional hair and beauty products such as shampoos, pomades, gels, mousse, among others; and other specialty hair products.

The industry can be categorized into two main divisions based on the services being offered: beauty and hairdressing services. Unlike beauty salons whose sole area of speciality is in offering beauty services, hairdressing salons often offer hair-styling services which include hair straightening treatments such as the chemical, ionic and Yuko systems as well as beauty treatments. Hair-styling and hair cutting services account for well over half of the total revenue from the industry.

Beauty salon businesses, among other services, also offer spa services such as body scrubs, massage/aromatherapy, skin lightening, facials, herbal wraps, body wrapping, derma abrasion, anti-aging, stretch mark and blemishes, skin care, makeup, polishing, waxing, anti-acne treatments, and more.

Start-up Requirements

The amount of capital needed to start a beauty salon business depends largely on the type, choice and quality of salon design, rent and utility deposits, salon space and fixtures, lease-hold improvements, insurance policy, personnel, opening inventory, initial marketing and advertising costs, equipment type etc. that one intends to use.