How to start an employee-based salon or barbershop

1. Define the business you intend to run

Start with the clients you want to serve and the services they need. Build an initial menu with realistic appointment lengths. Decide what the owner will handle, which employee roles are needed at opening, and what can wait until demand develops.

Write down your intended opening hours, number of service stations, staffing plan, and training capacity. Treat these as planning assumptions to test. More chairs do not automatically mean more booked appointments or a stronger business.

If you intend to direct an employee team, plan for the responsibilities that accompany employment. Classification depends on the actual relationship and applicable tests, not simply which form you prefer to issue. Review the IRS’s federal tax guidance alongside relevant employment rules.

2. Build a startup budget and a cash plan

Separate one-time opening expenses from recurring costs. Your list may include deposits, buildout, fixtures, tools, opening inventory, professional services, licenses, insurance, software, marketing, and payroll-related expenses. Use actual quotes where possible and mark estimates clearly.

Model a slower opening as well as expected demand. Include the time it takes to hire, train, attract clients, and receive payments. List the assumptions behind each scenario instead of treating sales targets as guaranteed income.

• What cash is needed before the first client arrives?
• Which expenses continue during a slow month?
• What can you postpone without compromising safety or essential service?
• Who will review cash, bills, and payroll commitments each week?

3. Investigate the space before committing

Check whether the intended use is permitted, what buildout is needed, and which approvals may apply. Investigate utilities, ventilation, plumbing, accessibility questions, signage, parking, and landlord requirements with the relevant professionals and authorities.

Location affects zoning, taxes, permits, and other operating requirements. The SBA’s launch guide explains why these checks belong early in the process. Do not assume a former salon space is automatically approved for your proposed services, ownership, or layout.

Keep a list of unresolved questions before signing or spending on construction. Ask qualified advisers to review commitments you do not fully understand.

4. Separate business, establishment, and practitioner requirements

Business registration, tax setup, permission to operate the premises, and an individual’s professional license answer different questions. Check each with the appropriate state or local authority rather than copying another shop’s checklist.

For example, Texas has specific establishment licensing and operational requirements. That is a state example, not a nationwide application process. Confirm the licenses, permitted services, inspections, and renewal responsibilities for your location.

Give every requirement a source, responsible person, due date, and place to store confirmation. Include insurance review and any necessary professional advice in the plan.

5. Prepare to employ the team

Write role descriptions and have the proposed pay plan reviewed before recruiting. Identify who administers payroll, checks working time, handles pay questions, and maintains required records. Verify applicable onboarding documents, notices, reporting, and insurance obligations. The SBA’s employee-management guidance is a general starting point, not a complete local employment packet.

Plan time for setup, cleaning, training, and meetings—not just client appointments. Some waiting and training time may also be compensable depending on the circumstances. Review DOL’s hours-worked guidance and applicable state rules when setting your time-recording process.

6. Rehearse the client and staff experience

Walk through an appointment from booking to checkout. Practice the consultation, service timing, handoffs, sanitation, payment questions, and rebooking conversation. Test what happens when a client cancels, arrives late, or raises a concern.

Create short opening and closing checklists. Make it clear who resolves a scheduling problem, orders supplies, supports a new employee, and follows up with a client. Choose tools around these workflows rather than expecting software to define them for you.

7. Make opening readiness visible

Mark each launch item ready, needs work, or blocked. Base your opening date on actual approvals and operational readiness, not an assumed processing time. Before committing to the first week, check:

• Location, establishment, and practitioner requirements have been verified.
• Essential equipment, supplies, and safety arrangements are ready.
• The team has clear roles, pay terms, and onboarding plans.
• Payroll and time-recording responsibilities are assigned.
• Booking, service, checkout, and issue-resolution workflows have been tested.
• The cash plan includes a slower-than-expected opening.

For business education, explore Salon Transformation’s masterclass and coaching. For the separate software offer, explore HairBiz software.

General educational information, not legal, tax, or financial advice for a particular business. Requirements depend on your location, services, and working relationships.