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How to Start a Spa or Salon in Ontario

Last Verified: 2010-07-09

TABLE OF CONTENTS

  1. Basics To Getting Started
  2. Industry Overview
  3. Regulations
  4. Financing
  5. Employing People
  6. Managing Your Operation
  7. Associations
  8. Other Resources

1. Basics to Getting Started

Starting a business can be a rewarding undertaking, but it comes with its challenges. Before starting a business in Ontario, it is wise to do your research. There are several issues to consider such as regulations, financing, and taxation, managing your business, advertising and much more.

For further information:
see the documents:

For regulatory or legal questions, it may be useful to contact a lawyer that deals with business regulations through the Law Society of Upper Canada's Lawyer Referral Service.

For further information:
call 1-800-268-8326
visit the website: Law Society of Upper Canada's Lawyer Referral Service

2. Industry Overview

Personal care providers, which include hair and esthetic salons, spas and a variety of esthetic services, accounted for about 45% of the industry's total earnings in 2005. These establishments earned about $4.1 billion in that year, up from $3.9 billion in 2004 and $3.5 billion in 2003.

The Spa and Esthetics industry in Canada is experiencing tremendous growth. According to the ISPA 2004 Spa Industry Study it was estimated that there were approximately 2,100 individual spas in Canada. Over 40% of Canada's spas are located in Ontario, followed by 19% of the spas located in British Columbia. For 2003 the average number of spa visits was 20.2 million. In 2003, the Canadian spa industry employed an estimated 33,200 people; 20,442 full time, 7,075 part-time and 5,673 contract staff.

The driving force behind the tremendous growth is rising consumer demand primarily from the aging "Baby Boomers", many of whom are willing to spend whatever it takes to preserve their youthful looks and to prevent premature aging. As a result Esthetics is a profession that is growing rapidly-not just in North America but also worldwide- and skilled, reliable, well-educated Professional Estheticians are in high demand. The importance of an attractive personal appearance is recognized more than ever in the world today.

For further information:
visit the websites:
The Daily - Personal Services Industry
Statistics Canada - Personal services

Types of Operation

In establishing a beauty salon, the range of services to offer may vary. You can choose to cut hair only, or may choose to include other services like nail care and skin care (facials and make-up, hair removal). Some even offer sun tanning, sell some products or have a spa in their beauty salon. The steps for opening a beauty salon are the same for one service as they are for many services.

There are many different kinds of personal care service businesses. The following are examples of such services:

  • Beauty Salons are establishments primarily engaged in providing hair care services to women, providing esthetic services such as manicures and pedicures, makeup applications, facials and skin treatments, hair removal or a combination of these services.
  • Unisex Hair Salons are establishments primarily engaged in cutting and styling men's or women's hair.  Establishments that combine hair care services for men or women and esthetic services.
  • Other Personal Care Services include establishments primarily engaged in providing personal care services. Colour consultants, estheticians and tanning salons are considered part of this group.
  • Massage or massotherapy is the manipulation of muscle and connective tissue to enhance function of those tissues and promote relaxation and well-being.

Before opening your business, you will also have to decide which type of operation you would like. You may choose to operate your business under a franchise or as a non-franchise.

If you choose a franchise, you have to follow directives from the parent company and go with the options they offer for types of services, products, etc.

3. Regulations

Business Regulations Info-Guide

This document will assist you in navigating federal, provincial and municipal regulations that apply to a number of industries and businesses.

For further information:
see the document: Business Regulations Info-Guide

Tanning Salons

Health Canada regulations specify requirements for tanning equipment.  A summary of the federal Radiation Emitting Devices Act and Radiation Emitting Devices Regulations for tanning equipment is available from the website.

For further information:
visit the websites: Guidelines for Tanning Salon Owners, Operators and Users

Massage Therapy

Massage therapy is a regulated profession in Ontario, and you must complete your education with a recognized institution and register with the College of Massage Therapists of Ontario to work as a massage therapist in Ontario.

For further information:
College of Massage Therapists at 1-800-465-1933
visit the website: 
College of Massage Therapists of Ontario
Massage Therapy Act, 1991

Other Regulations and Resources

4. Financing

Financing for Starting a Business Info-Guide

This document is designed to help you navigate through the federal and provincial government programs available to individuals starting a business in Ontario.

For further information:
see the document: Financing for Starting a Business Info-Guide

Apprenticeship Training Tax Credit (ATTC)

This refundable tax credit is available for employers operating unincorporated businesses which employ apprentices in certain skilled trades during the first 36 months of an apprenticeship program.

For further information:
visit the websites:
Apprenticeship Training Tax Credit (ATTC) 
Hiring an Apprentice for Your Workplace 

5. Employing People

Employment Regulations Info-Guide

This Info-Guide is designed to help you navigate through the federal and provincial government regulations on employment. Although many of your questions will be answered here, the list of regulations given in this document is not exhaustive.

For further information:
see the document: Employment Regulations Info-Guide

Staff Training

Some of your staff might need to register with a provincial and territorial Apprenticeship program. This means, that after completion of specific training, the employee will need to acquire a number of hours of "on-the-job experience" before getting a certification.

Apprenticeship programs are generally administered by provincial and territorial departments responsible for education, labour and training (under the direction of the provincial or territorial Director of Apprenticeship) with authority delegated from the legislation in each province and territory.

Staff may need to acquire a "Red Seal". A "Red Seal" allows qualified tradespersons to practice their trade in any province or territory in Canada where the trade is designated without having to write further examinations.

For further information:
visit the website: Interprovincial Standards "Red Seal" Program 

Besides attending schools and professional training courses, much can be learned through on-the-job training and by attending conferences. Staff training can be provided through seminars, styling contests or trade shows. It might also help to maintain a library of resource materials such as magazines on latest trends or products, and health research for tanning salons.

Offer training for your staff in: first aid, injury prevention, and sales techniques.

College of Massage Therapists of Ontario

The College is dedicated to excellence in protecting the public, serving its members, and promoting the highest possible quality of the practice of massage therapy in a safe and ethical manner.

For further information:
visit the website: College of Massage Therapists of Ontario

Massage Therapy Program Standard

The Ministry of Training, Colleges and Universities (MTCU) should be contacted to determine any regulations presently governing this trade.

For further information:
please call 1-800-387-5656
visit the website: Massage Therapy Program Standard

Internationally Trained Massage Therapists

To practice massage therapy in Ontario, you must obtain a Certificate of Registration from the College of Massage Therapists of Ontario (the College). The College under the Massage Therapy Act and the Regulated Health Professions Act sets all registration requirements. You cannot practice as a massage therapist unless you are registered with the College. Only the College of Massage Therapists, the provincial regulatory body, can register Massage Therapists.

For further information:
visit the website: College of Massage Therapists of Ontario

Training Programs and Courses

There are a variety of training courses and programs to choose from in Ontario.  You can use the college Program Locator to find institutions offering programs such as Massage Therapy, Esthetics and Spa Management.

For further information:
visit the website: Choose A College Program

6. Managing Your Operation

Dealing with Business Taxes

All businesses must be aware of the various taxes that may apply to their product or service. Depending on the type and location of products or services being offered, federal, provincial and/or municipal business taxes may apply. For information specific to your organization you should consult an accountant or financial professional.

For further information:
See the Taxation Info-Guide

Other Resources:
Ontario Ministry of Revenue: 1-866-668-8297
Small Business Tax Help (MOR)

Canada Revenue Agency: 1-800-959-5525
Canada Revenue Agency (CRA)

Setting up your Practice

Providers of personal care services may be home-based, practice from an office or spa-like environment, or take their business directly to the client at their home or office (for example, chair massages in the workplace); or even a combination of these.

Public Place (e.g., salon or spa)

A commercial establishment offering a product or service. The benefits of owning such an establishment may include a wider scope of advertising, the possibility of offering numerous specialized services at one location, the sharing of overhead and advertising costs.

Home-Based Business

A business operated out of your home may be an approach to try out an idea at as minimal cost as possible to see how the idea develops. There are still steps to take and regulations to follow; a list of pros and cons should be written down and considered for each situation.

On-site (or mobile)

Some stylists, whether they work with make-up, hair, nails or other personal services, may enjoy the on-site environment of working at such places as photo studios, old-age homes/hospitals, theatres, TV or film sets, modeling runways or home parties.

Furnishings and Equipment

Before you open your business, you may need specialized equipment.  The kind of service you are offering will determine the type of equipment you will require.  For assistance in this area, you may get the advice of a sales representative or consult trade publications and manufacturers' websites.  List that equipment and its cost to you.  An important factor to consider when choosing equipment is the after-sales service and repair and their affordability.

Consider buying used equipment as a cost-saving measure.  Sources of used equipment could be similar businesses that are closing or dealers in second-hand equipment.  The drawback to this approach is that, often, there are no guarantees with the purchase.

7. Associations

Examples of associations include, but are not limited to:

8. Other Resources

Infection Prevention and Control in Personal Services Settings Protocol (Ontario)

The Ontario Ministry of Health and Long Term Care has infection prevention protocols for personal services settings, including but not limited to hairdressing and barber shops, tattoo and body piercing studios, and various aesthetic services.

For further information:
contact Ontario Public Health Standards at ophs.protocols.moh@ontario.ca
visit the website: Infection Prevention and Control in Personal Services Settings Protocol

Related Reading

Need more information?

Click: Canada Business
Call: The Business Info Line, a collaboration between ServiceOntario and Industry Canada, at 1-888-745-8888
Visit: Find a Community Partner Location near you

DISCLAIMERS

Information contained in this document is of a general nature only and is not intended to constitute advice for any specific situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Some of the organizations listed above are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages.

Date Modified: 2009-11-27

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