Whether you’re seeking a small business loan or have a few investors in line, you’ll want secure anywhere between $60,000 and $100,000 to get your salon off the ground. Nothing stings quite so much as the tax penalties you’ll incur at the end of the year if you forget about those pesky taxes. Be sure to use calendar reminders for recurring expenses such as quarterly taxes. When creating a projected budget don’t forget that these fees will sneak up. Those costs include licensing, legal fees, taxes, and insurance. But it’s important not to forget those invisible costs that are less tangible and therefore are sometimes out of sight and out of mind. You’re probably thinking of the costs associated with the equipment you’ll need to outfit your salon. ![]() Most start-up businesses suffer in the early months due to underestimating the start-up costs. There are many variables at play when it comes to calculating profits. That’s good news but shouldn’t make you overly confident. That is in contrast to other businesses like restaurants that maintain notoriously slim profit margins of only 2% to 5%. You can expect your salon to make an average profit of around 9% to 10%. That number is slightly higher for salons and spas. When looking at small owner-operator businesses in general, the average profit margin is about 8%. From there, the sky’s the limit (just don’t expect to reach the sky immediately). ![]() So, what is a good salon profit margin? Well, “good” is relative, but we can give you an idea of what to expect. If you’re reading this, it’s a good sign you’re asking the right questions. Hopefully you’re also looking closely at the numbers. Are you thinking of going out on your own to open a beauty salon? Chances are you’ve put some thought into the services you’ll offer, your niche in the market, and your target audience.
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