Thinking of Buying a Beauty Salon in Australia? Here Are 3 Vital Questions to Ask

The beauty salon industry in Australia is experiencing steady growth, with demand rising for skincare, self-care, and wellness-focused treatments.

In 2025, industry revenue is expected to reach $624 million, with annualised growth forecast at 2.0% through 2030.

Trends like cosmetic injectables, eco-conscious beauty, and digital convenience are reshaping how salons attract and retain clients.

Buyers must evaluate service mix, staff capability, and brand positioning to ensure long-term profitability and relevance in a competitive market.

1. Is the Business Financially Viable?

Why It Matters:

Beauty salons generate revenue through both service-based income and retail sales. Profitability depends on staff efficiency, treatment pricing, and the ability to upsell products or packages.

What to Check:

• Revenue mix: What percentage of income comes from high-margin treatments like skin therapies, laser, or injectables versus basic services?
  
  

• Client retention: Are prepaid packages, memberships, or loyalty programs in place to ensure repeat bookings?
  
  

• Labour costs: Do wage costs align with the industry benchmark of 44% of total revenue?
  
  

• Retail sales: Is the business selling professional-grade skincare or beauty tools to boost per-client spend?

2. Does the Service Offering Match the Location and Client Base?

Why It Matters:

Beauty services are highly location-sensitive. A salon in a luxury area may need advanced skin treatments, while suburban or tourist locations may thrive on express services and spa packages.

What to Check:

• Treatment menu: Does the salon offer services that align with local demographics—e.g. anti-ageing, relaxation, or cosmetic results?
  
  

• Fit-out and ambience: Is the space modern, well-maintained, and appealing to the target market?

• Competitor analysis: Are there nearby salons offering similar services, and how does this business differentiate itself?
  
  

• Client reviews and feedback: What are customers saying online or in loyalty surveys?

3. Is the Business Ready for Future Growth and Trends?

Why It Matters:

Beauty is one of the fastest-evolving industries. To remain competitive, salons must adopt digital tools, eco-conscious products, and premium service upgrades.

What to Check:

• Technology adoption: Does the salon use CRM systems, online bookings, automated rebooking, or eCommerce platforms for skincare?
  
  

• Sustainability: Are organic, vegan, or cruelty-free products being offered to appeal to conscious consumers?
  
  

• Staff qualifications: Are key team members trained in cosmetic, dermal, or laser procedures if applicable?
  
  

• Scalability: Can the business add more rooms, extend trading hours, or introduce new treatments with minimal disruption?

Ready to Invest in a Thriving Beauty Salon Business?

Australia’s beauty and wellness market is powered by high client expectations, recurring service demand, and a growing appetite for ethical, innovative treatments.

With the right mix of technology, team expertise, and premium service delivery, a beauty salon can offer sustainable revenue and strong brand equity in a rapidly expanding industry.

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For Sellers:

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