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How to Start a Spa or Salon in Ontario

TABLE OF CONTENTS

  1. Introduction
  2. Basics To Getting Started
  3. Regulations
  4. Taxation
  5. Financing
  6. Managing Your Operation
  7. Associations
  8. Next Steps

1. Introduction

A salon or spa may provide a range of services from personal care to cosmetic care. Before opening your business, consider which type of services you would like to offer.

Some common types of spa/salon businesses are:

  • Beauty Salons, which provide esthetic services like manicures and pedicures, makeup applications, facials and skin treatments, hair removal or any combination of these services.
  • Hair Salons, which provide hair cutting and styling services.
  • Massage therapy, which provides manipulation of skin, muscles and joints to promote relaxation and health.
  • Personal Care Services, which include colour consultants, estheticians and tanning salons.

This guide focuses on operating an independent spa or salon. For information on buying a franchise, visit The Canadian Franchise Association website or call 1-800-665-4232.

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.

2. Basics To Getting Started

Before starting a business in Ontario, there are several issues to consider, such as regulations, financing, and taxation. Read our start-up guide to learn the basics.

Read online:
Business Start-Up Guide

3. Regulations

Your business may need licences and permits from the federal, provincial, and municipal levels of government.

In addition to the information you will find in this guide, you can use BizPaL—an online search tool—to find licences and regulations that may affect your business. You can also contact the Business Info Line to speak to someone about starting your business.

Use online:
BizPaL

Contact the Business Info Line:
1-888-745-8888

Some common licences, permits and regulations that may apply to starting your spa or salon include:

  • Hairstylist Certification
    If you provide hairstyling services, you must be certified to work in Ontario. "Red Seal" certification allows qualified tradespersons to practice their trade in any province or territory in Canada without having to re-apply for certification in other provinces.

    Read Online:
    Red Seal Trades - Hairstylist 
     
  • Tanning Salons Guidelines
    To provide tanning services, you need to follow the guidelines for tanning salon owners and meet the legal requirements for operating tanning equipment in Canada.

    Contact Health Canada:
    1-613-957-2991
    Guidelines for Tanning Salon Owners, Operators and Users 
     
  • Massage Therapy
    You must be educated through a recognized institution and registered with the College of Massage Therapists of Ontario to practice massage therapy in Ontario.

    Contact the College of Massage Therapists:
    1-800-465-1933
    College of Massage Therapists of Ontario 
     
  • Infection Prevention and Control 
    If you will be providing personal services, including hairstyling, barbering, tattooing, body piercing and various aesthetic services, you can contact Public Health Ontario for resources on preventing infection.

    Read Online:
    Infectious disease prevention and control

Cosmetics Regulations and Resources

  • Cosmetics Program
    If you are manufacturing, distributing, or selling cosmetics and personal care products, you are responsible for:
    • Submitting a Cosmetic Notification Form (CNF) to Health Canada
    • Guaranteeing the safety of the ingredients and your product
    • Labelling your products according to Health Canada regulations

    Contact Health Canada’s Cosmetic Program:
    1-866-662-0666
    Information for Industry and Professionals: Cosmetics and Personal Care Products

Music License

When your business uses recorded music, you are responsible for obtaining the right licence(s) for that use. The Copyright Board of Canada works with individual copyright collective societies who provide music licensing. Contact the following two organizations for more information.

  • Society of Composers, Authors and Music Publishers of Canada (SOCAN) Music Licence
    SOCAN is a not-for-profit organization that represents the performance rights of music creators and music publishers. They can help you learn about your obligations and obtaining the required license(s).

    Contact SOCAN:
    1-800-557-6226
    Society of Composers, Authors and Music Publishers of Canada
     
  • Re:Sound Music Licensing Company 
    Re:Sound is the Canadian not-for-profit organization that represents the performance rights of artists and record companies, and provides the legally required license(s) for businesses. You can get help determining what licence(s) will be required, what the licensing process will be and how much it will cost.

    Contact Re:Sound:
    1-877-309-5770
    Re:Sound

If you have legal questions, contact a lawyer who deals with business regulations. The Law Society of Upper Canada's Lawyer Referral Service may be able to assist you in finding a lawyer, based on your needs.

Contact the Law Society of Upper Canada:
1-800-268-8326
Law Society of Upper Canada's Lawyer Referral Service  

4. Taxation

Depending on your location and the type of products or services being offered, federal, provincial and/or municipal business taxes may apply.

Read online:
Taxation Guide

If you sell goods and services in Ontario, you may need a business number to charge and remit the Harmonized Sales Tax (HST). Speak with the Canada Revenue Agency (CRA) for more information.

Contact CRA:
1-800-959-5525
Canada Revenue Agency – Business

5. Financing

There are many different ways to finance your business. Canada Business can help you find government financing that is available for starting a business.

Search online:
Find Government Grants, Loans and Financing

Contact the Business Info Line:
1-888-745-8888

6. Managing Your Operation

The success of any business starts by setting goals and managing the ups and downs of daily operations. Here are some key factors to consider when starting a spa or salon:

Insurance

Having the correct business insurance can provide peace of mind. Contact an insurance agent to discuss your business insurance options, or to develop a plan that is right for your business.

You may also wish to contact your local chamber of commerce or industry association, as some organizations offer members lower rates on their business insurance.

The following list is included to remind you not to overlook the complex areas of business insurance. It is best, however, to discuss your specific requirements with your insurance agent.

Basic insurance:

  • Fire insurance (extended coverage on buildings and contents)
  • Liability insurance
  • Burglary protection (theft coverage)
  • Dishonesty insurance (covers thefts by employees)

Read online:
Insurance for Your Small Business

Marketing/Advertising

Marketing can help you determine the value of your product or service and communicate that information to customers. Depending on your market and its size, you can consider using flyers, business cards, brochures, newspapers, radio, TV, the phone book or the Internet. Keep in mind, a satisfied customer or a positive referral is often the best form of advertising.

Read online:  
Developing a Marketing Plan 
Marketing and Sales

When preparing your marketing and/or advertising material, there are regulations to follow. When you promote a product or service, your customers need to have enough information to make informed choices. You can get more information on advertising requirements from the Competition Bureau.

Contact the Competition Bureau:
1-800-348-5358 
Misleading Advertising and Labelling

Professional Services

The use of business support services can be essential to the success of a small business. Professionals can provide knowledge and expertise to ensure your business is operating efficiently.

As an entrepreneur, there are several types of professional business services you can consult:

  • Lawyers
  • Real estate agents
  • Insurance brokers
  • Bookkeepers
  • Accountants

Choosing a Location

For most businesses, choosing an appropriate location is critical. Your ideal location will depend on your business needs, zoning restrictions, and where your customers and competitors are. Taxes, noise and the local business environment are also important factors to consider when reviewing your options.

If you are setting up your business in your home, make sure you know what regulations and restrictions apply to a home-based business before you start.

Read online:
Choosing and setting up a location
Home-Based Business

Furnishings and Equipment

Your business will need equipment and furniture, and it's important to decide what you need and how much you want to spend.  Some common ways to save money on furnishings and equipment are:

  • Buying used equipment - Consider buying used equipment as a cost-saving measure. Sources of used equipment could be a pet business that is closing or a second-hand equipment store. Keep in mind the cost of maintenance and repair in the overall costs when buying used equipment.
     
  • Leasing equipment - Another alternative is to lease equipment to help keep start-up costs down. If you choose to lease equipment remember to include interest in your overall cost.

7. Associations

There are many associations that may be of interest to a spa or salon business. It is not necessary to join an association, but some of the advantages include:

  • Promoting and exchanging marketing and promotional ideas among members
  • Establishing and encouraging high standards of quality and professionalism

Examples of associations for a spa or salon business include:

  • Canadian Federation of Aromatherapists
    Access networking opportunities and apply for certification as an aromatherapist.

    Contact the Canadian Federation of Aromatherapists:
    1-519-746-1594 
    Canadian Federation of Aromatherapists 
     
  • Leading Spas of Canada
    Find support for professional development and opportunities for continuing education within the spa industry.

    Contact Leading Spas of Canada:
    1-800-704-6393 
    Leading Spas of Canada
     
  • Canadian Cosmetics Careers Association
    Receive accreditation and access professional development opportunities within the cosmetics industry. 

    Contact the Canadian Cosmetics Careers Association:
    1-416-410-9175 
    Canadian Cosmetics Careers Association 
     
  • Canadian Cosmetic, Toiletry and Fragrance Association 
    Attend seminars and conferences related to the products industry. You can also access advocacy services and networking events through the association.

    Contact the Canadian Cosmetic, Toiletry and Fragrance Association:
    1-905-890-5161 
    Canadian Cosmetic, Toiletry and Fragrance Association 
     
  • Federation of Canadian Electrolysis Associations 
    Access continuing education, networking opportunities and earn professional designation as an electrologist.

    Contact the Federation of Canadian Electrolysis Associations:
    1-888-333-2783
    Federation of Canadian Electrolysis Associations

8. Next Steps

For more information that relates to starting your business, you can read the following guides:

Related Reading

You can also find books, magazines and other relevant print material at business service organizations in your community. To find a Canada Business Ontario (CBO) community partner, contact us through the Business Info Line at 1-888-745-8888.

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: 2012-04-30

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