You can begin a hair and salon business with a moderate amount of capital. The success in this business is influenced by the ability of the salon owners to provide consumer satifaction with good services, quality products and a comfortable and friendly ambience at affordable prices. The customer is willing to pay the price if the services provided by salons are excellent and  are able to enhance the appearance of individuals.  

There are various services offered by hair and beauty salons.A full-service hair and beauty salon business offers almost all the services:

Hair: haircuts, trims and style; highlights, foils & weaving; hair & scalp treatments; relaxers, perms; colors; shampoo and conditioning; curling, reconstructing, permanent waving.
 
Nails: manicures, pedicures, polish, sculptured nails, nail repair, hand conditioning treatments.

Skin Care: Facials, body waxing, massage. 
  
Sells  professional hair and beauty products:There are many salon owners that provide a huge collection of  beauty and hair products for the convenience of the consumers so that they can get everything under one roof.The products offered includes shampoos, conditioners, hair styling products like mousse, gel and pomades.

Some hair and beauty salons offer spa services as well. Day spas include  services like body scrubs, skin lightening, body wrapping, herbal wraps, massage/aromatherapy, derma abrasion, stretch mark and blemishes, anti-aging, facials, makeup, skin care, waxing, polishing, and anti-acne treatments.

Requirements to set up the business: 

The capital required to start the salon business depends on a number of factors like the rent and utility deposits, fixtures, leasehold improvements, opening inventory, equipments required, salon design , interior decor and furnishings. 

Start-up expense components of a hair and salon business are:

Salon space. Unless you are living in a huge house you will require some space to start your salon business. Depending on the kind of salon you want to set up you will require space anywhere between 500 to 2000 square feet.
There are many places where you will be free to open a salon in a residential area but where there are zonal restrictions you may not be allowed to operate a salon from your home. Moreover the people living in your neighbouhood may get disturbed with a number of customers visiting your salon daily.There may be parking hassles as well.

Staff. The staff you appoint for your hair and beauty salon business depends on the services you have decided to offer. A salon venture  definitely needs a number of stylist and a receptionist.You m,ay also require shampoo technicians, barber, nail technician, facialist, make-up artist, and a massage therapist.

Leasehold improvements. Maybe you will be required to make leasehold improvements to your space depending on your interior layout, design, and plumbing requirements. Leasehold improvements are referred to as the construction of new structures or improvements made to the existing ones  by the lessee. You will have the right to use these leasehold improvements over the term of the lease. In many states such improvements are returned to the lessor at the expiration of the lease. Moveable equipment or office furniture that is not attached to the leased property is however not considered to be a leasehold improvement.

Salon Equipment. The equipment you purchase will depend on the services you offer. Some basic equipment required includes washing basin, styling chair, hair driers, supply trolleys and manicure sets and aprons. Other equipment you may need are shampoo spray machines; facial bed, hair steaming machines, and other body/skin care instruments. Moreover if you are planning to sell beauty products, you will also have to invest some amount in inventory.

Contact a beauty salon equipment suppliers and check if you can get a good deal. You can also check out alternative sources such as eBay where you can get equipments at low prices.

If you want  to can spend anywhere from $2,000 to $30,000 for salon equipment alone. Starting a salon also requires you to take initial training, professional and licensing fees, and at least three months of working capital.

Other expenses for a start includes:
Cash register
Merchant account fees (to accept credit cards)
Business license fees and other required documentation (varies by state)
Utilities
Insurance
Professional fees (accountant, lawyer, etc.)
Signage costs
Initial marketing and advertising expenses
Depending on the variety of services offered by you and the interior design and decoration of your salon, you can spend anywhere from $10,000 for a few services to $100,000 for a full-service outfit to begin your salon business venture.