How much does it cost to run a salon?

Running your own hair salon can be a dream come true. But as a salon owner or manager, you also have to deal with budgeting and calculations, even if you don't have much experience in this area.

Whether you're working on a business plan for your salon or just looking to cut existing costs, managing your budget can be overwhelming and exhausting. You might be worried that you've missed something, and you probably want to keep expenses as low as possible while still providing a great customer experience. We got it.

That's why we dedicated this article to:

Describing the 12 most common monthly salon expenses Offering our top tips for saving on everything from rent to marketing to staff Sharing our recommended digital tool to save you money and make running your salon easier and more profitable

Time is money, so let's get started.

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What are the common monthly expenses of the salon?

The specific expenses of running your salon depend on the services you provide. For example, if you run a hair salon, you will need different products than a nail salon.

Expenses also vary depending on your business model. For example, if you operate a booth rental lounge and offer your tenants many extras like drinks and snacks, towel laundry service and Wi-Fi, your costs will be higher compared to a lounge. which only offers the basics.

Similarly, if you run a salon where everyone is employed full-time, you will have more expenses associated with hiring costs, products, human resource management, payroll, and training .

In short, if you own (or rent) physical living room space, many of your expenses will be associated with the simple reality of owning and maintaining a property.

Now let’s discuss 12 of the most common living room expenses in detail.

1. Rent

What you pay for rent depends on your location, foot traffic and the quality of the property. A large, modern studio apartment in midtown Manhattan will obviously cost more than a modest living room in a small town. But wherever you live, rent is probably your biggest living room expense.

Industry research suggests that at the end of 2021, the average commercial rent in the United States was $9.54 per square foot.

2. Utilities

Your living room will need the basics like water and electricity, but you'll also need to consider business necessities like Wi-Fi, telephone, heating and air conditioning.

Utility costs also depend in part on usage, so if you have booth tenants, you need to factor utility expenses into the rent you set. If you're looking for an estimate, Iota Communications reported that companies typically spend $2.10 per square foot on utilities.

3. Payroll

Full-time employees need a regular salary, which, as business owners know, quickly becomes much more complicated than a quick calculation with a pen and paper.

It's worth investing in team management software with a dedicated payroll tool like Homebase so you can track hours accurately, secure data and payments, manage taxes, and pay...