New start up - please help with costings

[Rebecca.james184]

Hi all, I'm putting together a business plan for a new salon which will provide hair services plus barber services. Would you be be kind enough to post a monthly breakdown of your costs if you are UK based please? Bonus points for East of England. We are new to this but have a very creative vision we're hoping to execute and it includes a salon!
Thanks so much.

 

[ecogloves]

I don't have one for UK, but there are many salon communities here in the USA where owners share their costings, but...

1. Location & Rent​

• Deposit & Rent: $2,000 – $10,000/month (depending on location)
• Utilities: $500 – $1,000/month
• Renovations & Interior Design: $10,000 – $50,000

Tip: Prime locations (e.g., in malls or urban areas) will cost more, but they attract higher foot traffic.

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2. Licenses, Permits, and Insurance​

• Business License: $50 – $400
• Cosmetology/Salon License: $100 – $500
• Insurance (liability, property, worker’s comp): $500 – $2,000 annually
• Signage Permits: $200 – $500

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3. Equipment and Furniture​

• Styling Stations (mirrors, chairs, cabinets): $500 – $2,500 per station
• Wash Stations: $1,000 – $2,500 each
• Dryers and Hair Steamers: $500 – $1,500 each
• Tools (scissors, clippers, etc.): $1,000 – $2,500
• Reception Area (desk, chairs, waiting furniture): $2,000 – $5,000

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4. Inventory and Supplies​

• Initial Product Inventory (shampoos, dyes, skincare): $5,000 – $10,000
• Towels, Capes, and Disposables: $500 – $2,000
• POS System and Software: $500 – $1,500
• Miscellaneous Supplies (cleaning, refreshments, etc.): $300 – $1,000

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5. Staffing Costs​

• Employee Wages: $2,000 – $6,000/month per employee (depending on experience and location)
• Training: $500 – $2,000
• Uniforms (if applicable): $300 – $1,000

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6. Marketing and Branding​

• Website and Branding: $2,000 – $5,000
• Local Ads, Social Media Ads, Flyers: $500 – $2,000
• Grand Opening Event: $1,000 – $5,000

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Total Estimated Costs​

• Low-End: $50,000 – $75,000 (smaller, simple setup)
• Mid-Range: $100,000 – $150,000 (moderate size, urban location)
• High-End: $200,000+ (premium location and design)

 

[TheDuchess]

Yes that looks about right. Don’t forget business rates in the U.K.. this is based on a notional rent for the premises which may or may not be close to the actual rent. You pay roughly 50% of this theoretical rent as business rates. If the valuation office’s official calculation £12,000 pa or less you pay nothing (although this may change in future) and there’s a sliding scale between £12;000 and £18,000, if you have more than one salon there’s no discount or “free” premises.

Rent is based on “frontage” and distance from the street front. You pay less for basement and upper floors and ground floor rooms one room back from the street. Ideally you have a narrow and deep shop with an upper or lower floor. You’ll pay a lot less than another salon with the same floor space on the ground floor directly off the street,

You can look up business rates online. It’s public information and you just put in the address. This way you can work out which are the more expensive locations and spot potential bargains. My shop is deep and has a basement. When I first rented I was paying the same rates as my neighbours, but they had a different arrangement of floor space. I gambled that I’d be eligible for a 100% rates discount at the next appraisal (done nationally every 3 years) and I was right. So my overall bill went down by several thousand shortly after I’d moved in, but the rest of the street still had to pay rates.