Initial Capital Details for a Home Salon Business 2025 (Plus BEP Analysis)
Having expertise in the beauty industry is a valuable asset. One of the best ways to monetize it is by opening a home salon. This business offers many advantages: zero rent costs, flexible working hours, and an ever-present market (neighbors, friends, and family).
However, “home-based” doesn’t mean “without capital”. You still need an initial investment for equipment, products, and permits. How much capital is actually needed to start a ‘decent’ home salon in 2025? Below are the essential initial capital details and an analysis of when you can ‘break even’ (BEP).
Essential Capital: “Budget Package” (Focus on 1 Service)
A common beginner’s mistake is wanting ‘everything’ (cutting, coloring, creambath, facial). Focus! Choose one service that you ‘master’ best and is most ‘sought after’ in your area. For example: Focus on ‘Hair Treatment’ (Wash, Creambath, Blow-dry).
Estimated Initial Capital (Focus Package “Creambath & Blow”)
- Portable/Plastic Backwash Unit: Rp 500.000 – Rp 1.000.000
- Hydraulic Salon Chair (Used/New): Rp 700.000 – Rp 1.500.000
- Large Mirror & Lamp (Ring Light): Rp 400.000
- Essential Tools: Hair Dryer & Straightener: Rp 600.000 (Medium Quality)
- Support Tools (Trolley, Comb Set, Towels, Cape): Rp 500.000
- Initial Product Stock (Shampoo 1L, Creambath 1Kg, Vitamins): Rp 300.000
TOTAL ESSENTIAL INITIAL CAPITAL: Approximately Rp 3.000.000 – Rp 4.300.000
“Complete Package” Capital (Ready for Cutting & Coloring)
If you have more capital and broader skills, you can add tools for ‘Cutting’ and ‘Coloring’.
Add these to the essential capital above:
- Professional Scissor Set (Cutting, Thinning, Razor): Rp 400.000 (Good Quality)
- Hair Clipper (Men’s Trimmer): Rp 300.000
- Coloring Tools (Bowl, Brush, Gloves): Rp 100.000
- Coloring Product Stock (Dye, Bleaching, Developer – 5 sets): Rp 500.000
TOTAL “COMPLETE PACKAGE” CAPITAL: Approximately Rp 4.300.000 – Rp 5.600.000
Unexpected Costs (Often Forgotten)
- Electricity & Water: Budget for increased bills (especially for Hair Dryer & Water Heater).
- Permits: Micro/Small Business Permit (IUMK) via OSS (often free) and local neighborhood (RT/RW) permits.
- Initial Marketing: Print a simple ‘pricelist’ or ‘brochure’ to distribute to neighbors (Rp 100.000).
Simple BEP (Break-Even Point) Analysis
When will your capital return? Let’s calculate (Example: Essential Package Rp 3.000.000).
Assumption: You focus on “Creambath + Blow”.
Selling Price: Rp 45.000
Cost of Goods Sold (COGS): Electricity + Shampoo + Creambath Cream = Rp 10.000
Net Profit per Customer: Rp 35.000
BEP Target (Capital / Profit):
Rp 3.000.000 / Rp 35.000 = 86 Customers
If you can get 3 customers per day, you will ‘break even’ in 29 days (1 Month). This is very achievable in densely populated residential areas.
Starting a home salon with capital under Rp 5 million in 2025 is very realistic, as long as you ‘focus’ on one flagship service first. Don’t ‘burn money’ on unnecessary things; ‘upgrades’ can be made as you go once the business is running.
