What to consider before starting a cosmetology business

Many people aspire to have their own business. For those with an entrepreneurial spirit and a passion for hairdressing, a cosmetology business offers the opportunity to do both. Of course, opening and running a successful business means more than hanging a sign on the front porch. It requires planning, perseverance and careful attention to state and local regulations. Fortunately, a person can take steps to maximize their chances of success, while adhering to the law.

Training and license

Not all people who have a cosmetology business work as cosmetologists, however, most owners find it easier to run the business when they understand what it is all about. Accredited and commercial schools offer training on the technical elements of cosmetology. Most states require the graduation of an accredited program before issuing a license of this type.

Commercial license

States generally require that all companies obtain a commercial license to operate. Regulations vary from place to place, but county employees often process these requests. Local ordinances may also require an inspection by the city’s health department.

Develop a business plan

A business plan works as a roadmap for the new business owner. It establishes critical information, such as financial requirements, marketing strategy, and a competitive analysis. Under ideal circumstances, it allows the potential company to understand the consequences of entering the market before investing large sums of money.


The potential owner must choose a location for the cosmetology business. This selection plays a critical role in the success of traditional companies. The most preferred places are those with high pedestrian traffic and nearby complementary businesses, such as clothing stores.

Secure financing

Loans are the most common financing option for small business owners, although the exact terms vary from lender to lender. Potential cosmetology business owners should carefully evaluate the number of renewals, equipment, inventory, and payroll before deciding on a loan. Many new companies operate at a loss for more than a year, during which time they must still pay the bills. Guarantor loans are what need to be considered.

Land preparation

After securing the financing, the location must be prepared. This often involves hiring contractors to repair or renovate the building, as well as installing equipment, such as hair dryers. The owner must also secure accounts with suppliers of supplies and inventory, such as shampoos with designer labels, conditioners, styling gel and hair dyes.


The owner of the cosmetology business may choose to hire additional staff before opening. Additional cosmetologists must provide the corresponding licenses and should preferably come with one or more references from previous employers. Cosmetology companies benefit from keeping a receptionist on staff to handle calls that are not critical and to schedule appointments.

Marketing and opening

When the grand opening approaches, the owner has to let potential customers know that the business exists. This usually includes advertisements printed in local publications, such as newspapers and lifestyle magazines. Other avenues for advertising are local radios, television ads and online video campaigns, which you can find out more about by reading over the infographic below, created by the guys over at J Knowles. Offering a limited number of free appointments before opening helps generate word of mouth. Offering a limited number of free appointments before opening helps generate word of mouth. When the day comes, open the doors for business.

The above points are important for anyone who is really serious about starting a beauty business.


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