Best Cities to Start a Hair Salon / Barbershop in 2026

Opening a hair salon typically costs $75,000-$250,000 depending on size and location. Major expenses include build-out and plumbing ($25,000-$100,000), equipment and stations ($15,000-$50,000), initial product inventory ($3,000-$10,000), and first months of rent and working capital.

Booth rental ($200-$600/week) lets you build a client base with low risk and minimal overhead. Opening your own salon requires significant capital but gives you full control and the ability to hire stylists and scale revenue. Most salon owners recommend booth renting for 2-3 years first.

You'll need a cosmetology or barber license (varies by state), a salon establishment license from your state board, a business license, a health department permit, and potentially a seller's permit if you sell retail products. Some states require separate licenses for color or chemical services.

Salon owner income varies widely. Solo booth renters take home $40,000-$80,000 per year. Salon owners with employees earn $50,000-$120,000+ depending on size, location, and number of stylists. Revenue per stylist averages $50,000-$80,000 annually, with 40-60% going to the stylist.