How Much Does it Cost to Open a Beauty Supply Store?

Beauty supply stores can be profitable. Beauty supplies are one of the products that are always in demand, they attract a variety of clients such as salons, high-end customers, and people who need specialized beauty products.

Of course, any business has significant startup costs. This article will help you learn what those costs are. However, you should know that any dollar figure will be presented as an average.

On average, you’ll need $100,000-$240,000 to start a beauty supply store depending on:

  • Startup Expenses
  • Rent and Renovation
  • Equipment
  • Employees
  • Marketing

Startup Expenses

The type of business you start will affect your expenses. If you start an online business, you won’t have to deal with issues that a brick-and-mortar store has to deal with. However, you will have to deal with things like shipping companies and getting products shipped out across the country quickly. Some beauty supply stores will have mini-salons but this can come with its challenges. You have to have the infrastructure to support a salon, which subtracts from shelf space, you have to have stylists, and you will need permits for that along with normal store permits. For this article, we’ll stick to a brick-and-mortar store.


Permits and Legal Expenses

How Much Does it Cost to Open a Beauty Supply Store?

To start a store, you’ll need permits and a business license. The cost of this can depend on your locality. On average, you’ll be looking at around $750 for a business license. Though there may be some areas where the permits have lower costs. You will have to reach out to your local government to get a list of specific fees. This is public information so it won’t be hard to get.

While we’re on the subject, you’ll want to make sure that you’re complying with the local zoning regulations.  Fines and fees for violations can quickly add up and may result in you losing your business license so make sure you comply.

The other major legal costs include contracts with Point of Service companies and other services. You’ll have to set that stuff up which can cost around $3,300. There’s also the matter of insurance. By law, you have to have employers’ liability insurance and workers comp. Hopefully, you won’t need it but it is required, and ignoring this is more expensive than getting it. The average cost is around $2,400.

You will also want to have an attorney on standby. Someone with expertise in business law will help you draw up rental and employment contracts as well as handle other legal paperwork with the city and state. You should also look into having an accountant eventually. Business taxes and payroll can be complicated. Getting them wrong can land you in legal trouble and you should always make sure your employees are paid promptly.


Rent & Renovation

Unless you own the property and are building your store from the ground up, chances are you’ll be renting out a storefront. You’ll need to have around a year’s worth of rent saved up and ready to go. That way, you’re not struggling with your lease while you’re trying to build your customer base. Admittedly, this can be hard, especially if you’re transitioning from being someone else’s employee to starting your own business. However, trying to keep up with rent while building a customer base is harder and more precarious. This may require an investor or a business loan.

Since the rents for storefronts can vary wildly, it’s hard to give out an exact estimate so you’ll have to contact a realtor. What I can say is that the rent can depend on a few things. A bigger shop will have a bigger price. The more desirable the location, the higher the rent. A place in New York will cost more than somewhere in Oklahoma for example.

Next is renovations. This can be the hard part depending on how much renovation needs to be done.  You will need things like shelves and displays along with security measures like safes. Good counters can be expensive as they need to be sturdy and they’ll need to have equipment. The counters can cost around $9,000. Depending on the building, you may need to do some repairs as well. Your landlord might help you but you should be prepared to handle some things yourself, especially if you need something repaired in a hurry. You will also need down payments on utilities if your landlord doesn’t pay for them. Be sure to have utilities planned in your budget.

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How Much Does it Cost to Open a Beauty Supply Store?

As you renovate, you will need equipment. Cash registers are obvious first steps and can cost around $3,700. Since you’ll be dealing with expensive high-end cosmetics, you’ll need to invest in security measures. You’ll need things like security cameras and closed-circuit TVs. The higher the quality, the better. Hopefully, you won’t need it often but the better-quality images can help law enforcement and deter thieves. These kinds of setups can cost roughly $3,300.

You’ll also need office equipment. Things like desks, tables, chairs, and computers. As well as things like stationery. You will want a good computer and a good data backup service along with Internet security. In total, this can cost around $7,000.

‘You’ll also need a good sign. A good sign and installation can cost a few hundred dollars depending on the size and complexity.

Finally, you’ll need stock. You’ll need a variety of products for various customers. You’ll need everything from shampoos, to skincare products, to toiletries, and anything else you’ve seen in an average beauty supply shop. You’ll also need to have products for varying price ranges. This can be a significant investment of around $50,000.



A business is nothing without its employees. A small beauty supply store will need 3-6. Pay can vary depending on your area. You should consider offering benefits like health insurance since many businesses are having trouble retaining employees.

You will also need to train your employees before you open. This training should be paid for. A few years ago, new employers could get away with unpaid training. But the market has changed and employees won’t do training for free.



Finally, you need to market your business. A good website will cost around $600 if you outsource it to professionals. You can use social media for free but some functions increase your visibility. You may also decide to use flyers. A large amount can cost $3,000. Finally, you can have a big opening, which itself can be expensive. You may save money by doing a soft opening.


Related Questions

Do Salons Make a Lot of Money? -

1. What are the differences between a big and soft-opening?

A big opening can draw a large crowd and give you a grand introduction to the local community. However, it tends to be expensive (at least a couple thousand dollars), A soft-opening won’t get the big crowd or the party atmosphere but it will save you money.

2. What else should I have in my budget?

Experts say you’ll need three months of money for expenses as your business gets off the ground. On average, this can cost $46,000.

Looking to start your own Salon? Get the documents you need to get organized and funded here.

Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.