The Ultimate Guide to Start a Salon Spa Business in Canada

salon app solution Development

On average cost of opening your own salon it’s around $60,000 for basic Setup but it’s may be rise upto $4 lakhs to 5 lakhs for Salon & Spa Services in 2020 -2021.

Book Free salon App Demo Today

We can’t change the direction of the wind, but we can adjust the sails.

The famous proverb proves true in the case of the business of beauty, where beauty is an attitude for everyone regardless of how they look in reality. This is why the business of beauty is thriving in every corner of the world.

The salon spa business is finding a place for their business across Canada, which is good news for the entrepreneurs looking to start a salon spa business.

According to research, the global spa salons market is expected to reach approximately $190.81 billion in 2024 at a CAGR of slightly above 5.80%.

The upward growth is observed in the salon spa business because of the people’s improved focus on health and beauty. Moreover, it has become a trend in modern consumers to rejuvenate and get relaxation from busy and hectic lifestyles.

Under the spa services umbrella, the massage, saunas, facials, clean up, body wraps, and other services offered. When the spa services combined with salon services such as haircuts, hairstyles, waxing, manicure, and pedicure, the business referred to as salon spa business.

When you are all set to start a salon spa business, make sure it’s not going to be an easy undertaking. There are several challenges that the salon business needs to face like- registration, capital investment, marketing, and employees’ hiring. The strategic planning and preparation can help in addressing all the issues and turn the business into profitable.

Before jumping on the planning bandwagon, you should know the cost of setting up a spa salon to check whether you have enough bundles to spend or not.

Here’s the breakdown of the salon opening cost:

  • You need a business license and seller permit to operate in the area.
  • The real estate on rent or purchase demands the upfront budget in place.
  • Purchasing salon equipment such as dryer, chairs, sinks, POS systems, and beauty supplies.
  • Paying salaries to staff members.
  • Maintaining inventory, if you plan to sell beauty products.
  • Taking insurance to legally cover the salon business.

On average, it costs you around $60,000 to open a salon that may rise to $500,000. Don’t have enough budget? How you will map out the finances?

There are different ways to get funds to set up a salon business. They are:

  • Banks: The traditional banks are the best option to get finances, but the banks less often provide funds to salon businesses considering it as a high-risk business.
  • SBA loans: The financing option require a high credit score to get funds. Plus, low rates make them an attractive alternative, but fast payback periods make things difficult for big players.
  • Micro-loans: They require solid planning to ensure the survival and growth of the salon business. They provide immediate funding of up to $50,000 and don’t put more emphasis on the credit score.
  • Investors: The lenders are easily accessible and provide funds immediately without much ado. However, they lend money only after securing assets.
  • Equipment financing: Equipment is quite expensive to purchase. It’s better to purchase the equipment over the loan or lease the equipment to minimize upfront costs.

When you have a plan ready with optimal funds to start a salon business, you need to go step-by-step to achieve success. Here are the tips you should follow:

Research laws and regulations

The places where salon will operate and the type of salon services will be offered bring great variation in state laws, licenses required, and regulations that salon businesses must abide by. The early planning of location and services is all-important, else you are forced to stop providing the services or liable for penalties.

Mainly, the salon requires a salon license, cosmetology license, building permit, and EIN to operate, in addition to maintaining the best sanitation practices and meet OSHA requirements.

Study competition

Many players are entering in the booming business of beauty, which makes it difficult to make your salon business stand out from the crowd. To cut through the noise, you need to research what other salons are offering in your area and what’s the void that needs to fill. Once, you identify the gap, it’s time to meet the unmet need and make it a USP of the business to create a distinctive niche in the market.

For instance, the customers are looking for personalized services and cosmetic products, which if not provided by any of the salon business in your area, you can use it as a focal point to survive and thrive in the competition. This approach gives more opportunities to succeed in the market and strengthen relationships with customers.

Build clientele

The customers are the most valuable asset for every salon business. You are no different. Keep your customers and the experience they receive at the top for converting them into the fan of salon services. The repeat customers are reliable and spread a good word about your business.

It makes perfect sense to build an army of loyal fans that brings a consistent stream of revenue to your business and diminishes the overheads of spending huge bucks on winning new customers.

Be choosy for location

Regardless of whether you purchase or rent the space to start a salon, you need to make the right decision related to the location to make the business a big hit.

Check whether the place is easily accessible by car or other transportation or not; competitors offering similar salon services are in the neighborhood or not; have enough parking space to make the salon visit convenient.

Make the salon look aesthetically pleasing

The salon environment and its vibes had a great impact on especially spa customers as modern customers come to reduce the stress and relax. Make the salon space appealing by hiring a professional designer that helps you turn the salon’s look and feel into the refreshing environment.

Start buying the equipment only after doing space planning as you get to know the space you have and which dimensions of equipment or furniture will be required.

Deliver the UX that users want

Designing a vision for the experience that customers will receive during visits is as important as designing the journey to the salon. Keep every element in the mind before you start planning and translate the idea into the real look and feel of the salon.

Read more: On-Demand Beauty Salon App Development- Know Everything 

You can consider the user’s feedback before jumping to any conclusion to make the salon workplace user-centered and deliver the experience that users intend to receive.

Keep the staff happy

Not only the customer relationship is nurtured with salons but with the salon’s staff members as well. That’s why it’s important to employ and retain the customer-friendly staff who is professionally skilled, knowledgeable, and experienced.

Motivating and training the staff help in rendering the best services and upskilling product selling. The user-friendly staff creates the best reputation of the business and let the business grow seamlessly.

Potential infections

The salon spas environment is rejuvenating that make the customers feel comfortable and enticing. But space and equipment must be sanitized properly to prevent infections. The government has created some laws regarding public health that should be followed at salon spas to maintain cleanliness and prevent the harmful effects on customers and staff.

Salone app Solution

Charge fair prices

There is no ballpark cost that you can charge from the customers. It requires a little research for the charges that competitors with the same level of services and expertise in your area are charging. Later, set the competitive prices in the beginning so that you get a margin to allure customers.

Afterward, when the user base is built and they are happy with the services, you can increase the charges because the customers who like your services, they will pay for it.


The global spa market projected to grow at a rate of 5.7% during the forecast period 2018 to 2023.

Similar to the global market, the salon spa business in Canada is on the rise. Are you excited to join the race with the salon spa business set up? If so, it’s a great choice you have made.

However, in the beginning, you may find things are trickier to execute and handle, but as the salon business set up- you will find the money is flowing in.

Get ready with a solid plan, obtain necessary licenses, permits, and registration, hire staff, and arrange equipment to open the salon spa and make your dream come true. If you are stuck anywhere, the guide will help you to get things done.

Himanshu Patel

Himanshu Patel is the founder & CEO of NectarBits, a fast-growing Best Mobile App Development Company & On-Demand eCommerce Development Company. The current innovation and updates in the field lure him to express his views and thoughts on certain topics.