Cosmetology is one of the fastest-growing fields of study in Canada today. Men and women of all ages enjoy looking their best, and beauty salons cater to that. Whether you’ve just graduated with your cosmetology degree or certificate or you’re just ready to open your own business, it’s important to consider the cost of opening a beauty salon.
Existing Salon vs. Building from the Ground Up
Now that you’ve decided to start your own beauty salon, you have two major options available to you. These involve purchasing a salon that already exists, or building your own salon from the ground up. Each of these options has its own set of advantages and disadvantages, too.
- Renting or Buying an Existing Salon: Buying or renting an existing salon may be the more convenient option since everything is set up and ready to go from day one. In some cases, it may be less expensive, and you may be able to buy the property at a steal if the owner is experiencing financial hardship. However, your company may be associated with the previous owner’s reputation, even if you completely change the name of the business.
- Building a New Salon: For many people, starting from scratch allows them to create their own vision of what a beauty salon should be. Although it is usually more expensive, it allows a more flexible business plan. What’s more, it gives you a chance to build your own reputation from the ground up.
The Cost of Renting or Buying an Existing Salon
When you choose to rent or buy an existing salon, there are many factors that come into play when determining the cost. For example, if you choose to rent, things like the size of the building, its location, and even the supplies or equipment included can impact the overall price. When you buy an existing salon, you’re buying everything – including the property and the equipment. This may cost anywhere from $40,000 to as much as $250,000 or more depending on the location, size, and condition of the property and equipment.
The Cost of Building a New Salon
If you want to build your own salon from the ground up, you’ll need to purchase your property, equipment, and supplies separately. The amount of money you might spend fluctuates wildly based on things like the size of your salon, the quality and type of equipment you need, and even the supplies you’ll need to adequately stock each station. Because your salon will be brand new, you’ll spend more money on marketing, as well. The average cost of building a new salon can range from $100,000 to $500,000 or even more depending on these factors.
Whether you want to buy a salon or build one from the ground up, there are convenient and affordable ways to get the funding you need to make it a success. A small business loan delivers easy access to working capital at a fixed cost, which is paid back in a specific time frame. If you’re looking for a more flexible option, a merchant cash advance provides upfront capital in exchange for a percentage of daily credit and debit card sales. Regardless of which financing option you prefer, you will need to open a business bank account in order to qualify for funding. This will also allow you to accept customer payments through a point of sale system like Moneris, Global Payments, or Payfirma.
At the end of the day, remember that launching and growing your beauty salon is all about building your vision, putting your business sense to work, and keeping your clients satisfied.