Tips to Opening Your First Commission Salon
Nina Tulio
Woo hoo! Congratulations! Taking the leap to open your own salon business is a huge milestone, and I couldn’t be more excited for you. It’s a journey that requires planning, clarity, and a touch of courage, but when done right, it’s also one of the most rewarding experiences of your career. To help you kickstart your dream, here are the essential steps to set your salon up for success:
Define Your Brand and Vision
Start by getting clear on your goals. What kind of salon do you want to create? What will set your business apart?
Outline your brand’s mission, actionable core values, and the experience you want clients to have when they walk through your doors.
Decide on your target audience—who are you serving, why are you serving them, and how will you serve them better than anyone else.
Work on a professional logo, color scheme, and overall aesthetic that will be used across all marketing materials.
2. Write a Business Plan
Your business plan is your roadmap. Include details on your budget, marketing strategies, pricing structure, and projected income.
Map out startup costs, including equipment, decor, supplies, marketing expenses, and an opening budget that outlines all initial investments.
Plan for working capital—this is the cash you’ll need to cover day-to-day operations and unexpected costs in the early months. I suggest having at least 3-6 months of business expenses put aside for a rainy day.
Factor in potential financial missteps, like underestimating costs, being delayed in your opening or slower-than-expected growth, and create a contingency plan to handle them.
Set short-term and long-term goals to keep yourself accountable and track progress.
RESOURCE for a business plan SBA.ORG
3. Choose the Perfect Location
Location matters! Research areas that align with your target market.
Consider factors like foot traffic, parking availability, and proximity to complementary businesses that share in your target client.
Evaluate the space itself—is it functional for your needs? Does it have the potential for your dream design? Will it allow for growth and expansion down the line.
Have an attorney and broker to help you negotiate your lease. There are instances where your landlord can offer a reno budget or give you a few months free rent to offset the cost until you open.
4. Market Research
Think about factors like age, income, lifestyle, and interests—anything that could shape your target client. Then, ask yourself these key questions to gain clarity about your market:
Demand: Is there a genuine need or desire for your services?
Market Size: How many potential clients are in your target audience?
Economic Factors: What’s the average income level, and what does the employment rate look like in your area?
Location: Are your ideal clients within reach of your salon, and how accessible is your business to them?
Market Saturation: How many other salons or similar options are competing for the same clients?
5. Build a Pricing Structure
Establish a pricing structure that reflects your VALUE, covers your expenses, and generates profit. I coach and teach to package pricing.
Factor in your cost per service, time per service, total business expenses, target profit, and hours worked. Your pricing is one of the absolute MOST important factors in your business as it drives, sales, profit, and how much your work. Dialing this is is crucial and I made it easy for you with my budget/profit calculators in my SYNERGY FINANCE course.
Avoid underpricing to “get clients in the door”—confidence in your pricing speaks volumes about your brand. P.S. Discounting is NOT a marketing strategy. I suggest checking out VISH to help you save money and increase profit on your color services.
6. Register Your Business
Apply for the necessary licenses and permits to operate legally in your state and city.
Get a Federal Tax ID (EIN) and set up a business bank account to keep finances organized.
Ensure you’re compliant with all local labor and safety regulations.
7. Invest in the Right Tools and Equipment
Purchase high-quality tools, furniture, and supplies to deliver an elevated client experience.
Research brands and equipment that align with your salon’s mission and aesthetic.
Don’t forget the small details that make a big impact, like comfortable seating, decor, and ambiance. I am a budget girly. Keep in mind you don’t have to break the bank with the most expensive stations, chairs, decor. Yes you want to to create a vibe and make it look nice. But you can add on as you grow and when you have more cash flow on hand.
8. Hire a Strong Team
When building a team, hire stylists who align with your salon’s values and culture.
Create clear job descriptions, offer letter, and hand book to set expectations from the start.
Take time during the interview process. The interview process I coach to is about 30 days long. We forgo the 90 probation period to make the employee feel included from the beginning.
Create a competitive compensation package that offers benefits like ongoing education, paid time off, and flexibility in scheduling. As you build and have more profit you can add things like 401K match and short term disability.
You can learn more about creating a strong interview system, training program, growth plan, compensation package, and hiring tips in my SYNERGY course.
9. Market Your Salon Like a Pro
Create a website with online booking capabilities—this is a must in today’s world.
Use social media platforms to showcase your work, promote your grand opening, and engage with your audience.
Partner with local businesses to cross-promote and increase visibility in the community. Join your local chamber of commerce to create community outreach and build relationships.
Use salon software to manage appointments, track sales, and utilize their marketing tools like SMS and email templates. I recommend Phorest Salon Software
10. Fiances 101
The biggest piece of advice I can give you is … don’t get in over your head financially. I highly suggest getting in to a space that you can manage and afford for WITHOUT any employees.
Your business plan will help you figure out how much money you’ll need to open your commission salon. If you don’t have cash on hand, you’ll need to borrow working capital. My advice.. The less debt you have going into this the better.
Keep a close eye on your finances. Understand your revenue, expenses, and profit margins and be prepared to pull a profit and loss statement monthly once you open. P.S.. Hire a CPA Like Michelle Cook that understands our industry and can you you set up to win before, during, and after you open.
Review your pricing yearly, assess your goals quarterly, and track your expenses monthly to ensure profitability. Target profit is 20%. Keep in mind it will take time to reach this point and if you are on payroll and file as an S corp the % may be less.
Track these areas:
1. Service dollars
2. Retail to Service Percentage (RTS %) 8-10%
3. Retention - New = 50% and Existing= 75% +
5. Frequency of Visit
6. Average Ticket
7. Percentage Booked or Productivity %
11. Stay Open to Growth
The first year of business will be a learning experience. Be open to feedback and adapt as you go.
Keep educating yourself on industry trends, leadership, and business strategies.
Remember, success is a journey, not a destination—embrace the process and celebrate every win along the way.
Opening your own salon is no small feat, but with the right planning and mindset, you’re setting yourself up for a thriving, fulfilling business. You’ve got this! xo Nina
Looking to learn more from Nina? Check out Make That Money course for suite owners/renters. And in my Synergy course for commission owners.
Psst! MORE Free resources are a click away!
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Join us from 12PM- 5PM at the Surety Hotel on Des Moines on May 5th, 2025. Lunch is included. This session is open to COMMISSION/hybrid salon owners and their managers. Or independents looking to hire a W2 employee in the near future.