How Much Does It Cost to Start an Esthetics Business?

With a budget as low as $35,000, you can start a small-scale mobile esthetics business. Also, you could budget from $250,000 if you want to start a standard esthetics business.

Apart from the rough estimate stated above, it is important to note that there are certain key factors that can determine the amount it will cost you to start your own esthetics business, and that is what we will discuss in this article.

An esthetics business is a business that offers services related to skincare, beauty, and personal care. The term “esthetics” is commonly associated with the practice of esthetics or aesthetics, which focuses on enhancing the appearance of the skin.

Estheticians, or skincare professionals, provide a range of services to clients with the goal of promoting healthy and beautiful skin.

Starting an esthetics business requires significant investment and expertise and most entrepreneurs who own esthetics businesses are known to invest money in continuous training, and certifications.

Factors That Influence the Cost of Opening an Esthetics Business

1. Licensing and Permits

Note that the costs associated with obtaining the necessary licenses and permits to operate an esthetics business can vary from one city or state to another. So, it is important to research the requirements specific to the location you intend to start your esthetics business.

For example, the licenses, and permits needed to operate an esthetics business include business licensing fees, cosmetology license, hazardous materials permit (for handling chemicals),

Music license (if playing copyrighted music), retail sales permit, professional corporation license, state board of cosmetology approval, etc.

Note that in the United States, you should have an estimate of $500 to $5,000 or more for all the needed licenses and permits.

2. The Cost of Purchasing Esthetics Equipment and Supplies

If you are planning to start an esthetics business, then you should have a budget to purchase equipment and supplies such as:

Treatment table, facial steamer, magnifying lamp, towel warmer, waxing kit, microdermabrasion machine, high-frequency machine, sterilization tools, esthetician stool,

Skin care products and supplies, salon chairs for waiting area, reception desk and computer system, and personal protective equipment (PPE) (gloves, masks, and disposable aprons).

From experience, you should have a budget estimate of $10,000 to $20,000 or more to purchase the needed esthetic equipment and supplies to get the business up and running.

3. The Location Where You Want to Start the Business

Different cities have different rental and leasing rates, and different cities requires different budget to run a business even if the business is the same.

The expenses that are linked to the location of a business include labor costs, real estate costs, licensing, and permit costs among other costs.

4. The Cost of Marketing and Advertising

In essence, you should have a budget that will take care of your business website design, online marketing campaigns, printed materials, and business cards.

Depending on how big you want to announce your presence in the market, you should have a budget estimate of $1,000 to $3,000 or more.

5. The Cost of Purchasing Insurance Policy Coverage

In order to protect your business and clients, you will need insurance coverage, such as general liability insurance, health insurance, and professional liability insurance.

Note that the cost of purchasing insurance policy coverage for your esthetics business will depend on your location and the coverage options you choose. But generally, you should have a budget estimate of $1,000 to $3,000 per year for your insurance policy coverage.

6. Staffing Cost

The only reason why you may not need to budget for staffing costs is if you choose to operate the business alone. But, if you plan to hire an esthetician, receptionist, licensed massage therapist, skincare consultant, retail sales associate, and other support staff members, then you should consider their salaries, benefits, and training costs.

Note that your staffing expenses will depend on the number of staff members you want to hire, and of course, their qualifications.

7. Operational Costs or Ongoing Expenses

Despite the fact that there is no fixed amount to spend when it comes to operational costs, the truth is that it can be a significant part of your budget especially if you are going to be operating a standard esthetics business with over a handful of employees.

Note that your operation costs include ongoing expenses such as office supplies, utilities, transportation costs, and maintenance expenses for your equipment and tools.

We cannot give an estimate of what you should budget for your operational costs because it will vary based on your business size and the volume of clients you handle.