Dreaming of opening a salon from home? The right planning, prep work, and salon business insurance are essential for making that dream a reality.
TL;DR: 6 Steps for Starting an In-Home Salon:
- Get Your License
- Complete Your Business Registration, Licensing, and Zoning Requirements
- Protect Your Career with Salon Insurance
- Invest in Quality Equipment
- Establish Your Safety and Sanitation Protocol
- Make Your Home Salon Safe, Accessible, and Client-Ready
When it comes to setting up a home salon, Angelina Schofield pretty much nailed it.
In this video from her YouTube channel, Angelina walks us through the process of setting up her home salon, including the do’s, don’ts, and must-haves.
Whether your “why” is convenience, creative freedom, or financial motivations, there are plenty of reasons to set up an in-home salon. If you’re still in the planning stages, let us walk you through the basics and answer a few questions, so you know exactly what to expect!
Meet the Requirements for In-Home Salons
Starting a salon from home can be your ticket to a rewarding and profitable business (with a commute you can’t beat!) However, there are several steps you need to take first to ensure you’re operating safely and legally.
1. Get Your License
The first step to opening your own in-home salon is getting your cosmetologist license.
Specific cosmetologist license requirements depend on your state, so start by checking with your local State Board of Cosmetology. Most states typically require you to:
- Have a high school diploma or GED
- Enroll in a board-certified cosmetology school
- Complete the required courses and hands-on training hours (often 1,000-2,000 hours)
- Pass the state licensing exam
Graduating from cosmetology school and getting licensed gives you the knowledge to safely and effectively practice cosmetology in your state. It’s also legally required. Fines and penalties for practicing cosmetology without a license can be hefty. Plus, clients are less likely to trust someone working without the proper credentials.
2. Complete Your Business Registration, Licensing, and Zoning Requirements
Improper business registration and zoning violations can have serious legal consequences, like fines and jail time. They can also affect your taxes and home equity. So, when opening a salon from home, it’s crucial to follow the proper business and zoning regulations.
First, research your state requirements and contact your state’s cosmetology board and ask them what they involve. For example, some states require a permanent wall to separate the salon from the rest of your home, or a separate client entrance.
Before starting an in-home salon business:
- Consult with the Small Business Administration or an attorney about which legal structure (sole proprietorship, LLC, etc.) is best for your business
- Identify which amenities and services you’re allowed to offer in your home from your local government, zoning board, and/or homeowners association (HOA)
- Research which permits you need to operate an in-home salon, such as a general business license and home occupation permits
- Identify specific permits and tax paperwork you’ll need (contact a local tax expert or board of commerce for assistance)
- Obtain a Federal Employer Identification Number (EIN), for filing taxes
- Register your business with your state or local government
3. Protect Your Business
In many states, cosmetology liability insurance is another legal requirement for in-home salons and professional licenses. Beauty and Bodywork Insurance (BBI) offers both general and professional liability coverage to protect your business in case something goes wrong.
In addition to cosmetologist coverage, ensure you have the right property coverage for the building and all its fixtures — on both the home and business sides. Some insurance companies offer umbrella coverage that protects both living and work spaces, for example.
Further protect your business’s reputation and reduce the risk of complaints and claims with these best practices:
- Clearly communicate cancellation and refund policies
- Collect intake forms from all new clients
- Require clients to sign liability waivers
4. Invest in Quality Equipment
Clients are more likely to choose your in-home salon if it contains the same professional tools and amenities they’d find in a traditional salon. Consider which tools matter most for your services, invest in high-quality options, and protect them with tools and supplies insurance.
Some equipment and tools you may want to invest in include:
- Comfortable styling chairs
- Lighting and mirrors
- Dedicated wet and dry stations, portable basins, and driers
- Tools you use often, like shears, clippers, or styling products, plus a cart or trolley for easy storage
- Sterilization and disposal containers
- Linen storage and bins for soiled linens, capes, etc.
5. Establish Your Safety and Sanitation Protocols
Sanitation and operational safety standards are vital for running a home-based salon. They’re essential for keeping you and your clients safe, as well as for maintaining your business licenses.
In most states, you’ll have to pass local fire, safety, and other building code inspections to get and maintain your business permits. Some key safety and sanitation protocols or systems to establish:
- Disinfection standards and procedures for tools, linens, and similar items
- Waste disposal procedures
- Ventilation systems
- Cleaning/sanitation documentation
- Storage
6. Make Your Home Salon Safe, Accessible, and Client-Ready
In addition to fire code inspections, your home salon may be subject to other accessibility and operational regulations, like:
- Separate, client-only restrooms
- ADA (Americans with Disabilities Act) compliant entrances and exits
- Parking that doesn’t block driveways or disrupt neighbors
- Clearly displayed copies of current business and cosmetology licenses
Having your permits, licenses, and inspection documents on display is not only a legal requirement, but also shows clients you’re a professional who takes running your home salon seriously. This inspires clients’ trust in your business.
Grow Your In-Home Salon
After you’ve put yourself through school, handled all the legal aspects, and done everything you can to protect yourself and your clients from risk, what comes next? Here are a few ways to start growing your in-home salon.
Market Your Home Salon
As an independent business owner, it’s your responsibility to get the word out about your new salon. Thankfully, in the digital age, there are plenty of salon marketing strategies available to get your messaging out there, attract clients, and grow your brand.
Some marketing channels and strategies to investigate include:
- Networking events and word of mouth
- Social media
- Google reviews
- Referral rewards
- New customer offers
- VIP events and exclusives
Leverage Technology
From saving time with salon scheduling software to making it easy for clients to pay online or with electronic point-of-sale (POS) systems, apps are a must for in-home salons. Many of these apps can even send automatic appointment reminders, solicit reviews, implement customer loyalty programs, and handle payments, without you lifting a finger!
Price Your Services Competitively
Familiarize yourself with the market you’re offering services in and price your services to match. For example, clients may not consider a home salon the best place to come for a high-end cut or specialty service.
This doesn’t mean you can’t offer those things! But, familiarizing yourself with markers like the average household income of the area and the average price of services offered in nearby salons helps you price your services competitively.
It’s a best practice to offer a few basic services. Then, if you have the knowledge and ability, specialize in a specific area to increase revenue in niche markets.
Statistics About Salons in the US
- According to the Bureau of Labor Statistics (BLS), overall employment for hairstylists and cosmetologists is projected to grow 5% from 2024 to 2034, which is faster than the average (3%) for all occupations.
- The U.S. hair salon industry was worth almost $50 billion in 2023, with franchised hair salons earning an average of $317,000 per year in gross revenue.
- Salon startup costs vary, depending on your location, state regulations, and business size. There’s also a big difference between opening a home salon and buying or leasing a separate building.
- The overall cost of opening a hair salon in the U.S. ranges between $15,000 and $70,000. In-home salon startup costs are likely on the lower end of this range, assuming you won’t need to pay for extensive remodeling or a new physical location.
Frequently Asked Questions (FAQs) About Starting a Home Hair Salon
Will My Homeowners Insurance Cover My Home Hair Salon?
Standard homeowners insurance typically does not cover business-related liability risks, client injuries, or equipment you use for work. If it does, it’s usually a limited amount.
Some homeowners insurance providers may offer in-home business or business owner policies. In most cases, however, you’ll need more than traditional homeowners insurance to cover your home hair salon.
How Much Does It Cost to Put a Salon in My Home?
Estimates for at-home salon startup costs differ between sources, but generally range between $2,000 and $15,000 for the most basic setups.
The actual cost of opening a salon in your home depends on what equipment, furnishings, and supplies you use, as well as what it takes to meet state and local requirements.
Can I Rent Stations to Other Stylists In My Home Salon?
It depends on state laws and city zoning restrictions, but many states do not allow you to rent in-home stations out to others. States that do allow it typically have strict regulations around doing so.
How Long Will It Take to Open a Salon in My Home?
On average, it takes around 2-6 months to open a salon. This includes time for zoning, building updates, licensing, and inspections.
How Much Money Can I Make With an In-Home Salon?
Hairstylists and cosmetologists working in public spas and salons generally earn between $35,420 and $70,000 per year.* At-home cosmetologists and hairstylists with an established client base are estimated to earn about $62,000/year, according to Home Business Hub.
How much you earn as an at-home stylist or cosmetologist ultimately depends on a combination of factors, including:
- How established or experienced you are
- How consistent your bookings are
- The types of services you offer
- Your price points and operating costs
*Information from Indeed.com and the Bureau of Labor Statistics
