How much can a salon owner make?

If you’re thinking of opening or taking over a salon, but you’re wondering “how much can a salon owner make?”, then this is the guide to read. We’re breaking down how much a salon owner can make, the motivations for opening a salon and the advantages and disadvantages of owning your own salon.

Let’s start out with the reasons why salon owners get started and what to consider if you’re thinking about opening a salon.

Why open a salon?

Becoming a salon owner has plenty of benefits, both professionally and personally. As a salon owner, you have the freedom to create and shape your own business according to your vision and values. You can design your salon's atmosphere, choose the services offered, set pricing and implement marketing strategies that align with your brand identity and goals.

Sharing your creative passions

Running a salon allows you to express your creativity and passion for beauty and wellness. Whether it's designing unique hairstyles, creating innovative nail art or offering personalised skincare treatments, owning a salon provides a platform to showcase your artistic talents and make a positive impact on your clients' lives.

Financial independence

Being a salon owner gives you the opportunity to build wealth and achieve financial independence. By managing your salon's finances effectively, maximising revenue streams, and controlling expenses you can generate substantial income and build long-term wealth. You can build a legacy.

Flexibility

Unlike traditional employment, salon ownership offers flexibility in scheduling and work-life balance. While running a salon requires dedication and hard work, you have the flexibility to set your own hours, take time off as needed and balance your personal and professional commitments according to your preferences.

Building relationships

As a salon owner, you have the opportunity to build meaningful relationships with your clients, staff, and fellow business owners in your community.

You can create a welcoming and inclusive environment where clients feel valued, supported and connected to something greater than just a beauty service.

Whether it's boosting someone's confidence with a stunning hairstyle, helping them relax and unwind with a spa treatment or providing a supportive and uplifting environment, salon ownership allows you to make a meaningful difference in the lives of others every day.

Growth and development

Owning a salon provides countless opportunities for personal growth and development. From honing your leadership and management skills to mastering the latest beauty trends and techniques, running a salon challenges you to continually learn, adapt and evolve as a business owner and beauty professional.

Downsides to being a salon owner

We’re all about balance, and while there are some incredible advantages to becoming a salon owner, there are some disadvantages too. It can be an incredibly rewarding career decision, but it can be tough too. There are definitely some challenges when it comes to owning a salon, but despite this many salon owners find the rewards of entrepreneurship, creativity and personal fulfilment outweigh the downsides.

Costs

Firstly, starting and operating a salon involves some big upfront costs, including rent, equipment, stock, marketing and staffing. There's also the risk of not knowing how much money you’re going to make. The money your salon takes will fluctuate throughout the year due to circumstances that are completely out of your control. If your salon doesn't generate enough income to cover expenses or turns out to be less profitable than anticipated, you could face financial strain.

Long hours

Salon owners often work long hours, including evenings and weekends, to accommodate client schedules and manage day-to-day operations - especially at the beginning. The demands of running a salon can be physically and emotionally taxing, leading to burnout, stress, and fatigue. Balancing work commitments with personal life can be challenging, especially during busy periods or when dealing with unexpected issues or emergencies.

Competitive industry

The beauty industry is highly competitive. Standing out from the competition requires effective branding, marketing and customer service, as well as staying on top of industry trends and innovations. 

Staff

Hiring, training, and retaining qualified staff can be a major challenge for salon owners. High staff turnover, absenteeism and conflicts among team members can disrupt operations and impact client satisfaction. Managing employee schedules, performance, and morale requires effective leadership, communication, and interpersonal skills.

Regulations and legal requirements

Salons must follow various legal and regulatory requirements, including licensing, health and safety standards, employment laws and tax obligations. Salon owners are responsible for various operational tasks, including inventory management, bookkeeping, marketing, and administrative duties. Juggling these responsibilities can be overwhelming, especially for salon owners with limited resources or experience in business management.

Difficult clients

Dealing with difficult clients, handling complaints and resolving conflicts can be challenging for salon owners. Managing client expectations, communicating effectively, and maintaining a positive reputation are essential for building trust and loyalty. Negative reviews or word-of-mouth publicity can have a detrimental impact on your salon's reputation and future business prospects.

What factors affect salon owners’ pay?

Salon owners pay can fluctuate, and sometimes due to circumstances out of your control. Here are some factors to think about if you want to know how much a salon owner can earn.

• location and demographics where your salon is based
• business model and services offered
• operational costs and overheads
• staffing and commission structure
• client retention and customer experience
• economic factors and market trends
• legal and regulatory considerations

Successful salon owners who understand their market, manage their costs effectively, and prioritise customer satisfaction have the potential to achieve sustainable profitability and financial success in the beauty industry. 

However, it's essential to conduct thorough market research, develop a solid business plan, and stay adaptable to changing market conditions to maximise your earning potential as a salon owner in the UK.

How much money can you make as a salon owner?

According to Glassdoor, the average salary for a salon owner in the UK is £32,140, though there will be salon owners that make significantly more or less than that. It depends on your business, how it’s set up, your outgoings and even your location.

There’s no set salary you have to take as a salon owner, and a good accountant can give you advice on how to make your business earnings as tax effective as possible. But in order to take money from your business, it needs to be profitable. It also depends on how your salon is set up as there are different taxes, ways to pay yourself and considerations depending on how you decide to be self-employed.

Try not to get too caught up in what other salon owners or salons are making. While being aware of the competition is important, comparison isn’t always helpful, especially if you’re at different stages of your business journey.

It’s also important to take into consideration other income streams, like training, retail and sharing your premises. It’s also different depending on how you’ve structured your business—whether you employ staff or if you have self-employed staff renting space from you, your outgoings will be different.

Specialist salon insurance through Ripe

While trying your best to ensure your salon thrives and makes the most money it can, you may also want to consider protecting it with specialist salon insurance.

Specialist insurance through Ripe provides your salon with protection against things such as third-party liability claims or property damage under public and products liability cover for up to £10m.

You can learn more about salon insurance through Ripe here or click to get a quick online quote today.