Hair Salon Startup Cost Comparison
Los Angeles, CA vs Chicago, IL
Los Angeles, CA
$78,000 - $291,000
COL Index: 166.5
VS
Chicago, IL
$67,000 - $243,000
COL Index: 107.8
Detailed Cost Comparison
| Expense | Los Angeles, CA | Chicago, IL | Difference |
|---|---|---|---|
|
Business Registration & Licenses
|
$4,000 - $14,400 | $5,600 - $10,900 | +12% |
|
Commercial Lease (First + Last + Security)
|
$15,000 - $75,000 | $11,700 - $58,700 | +28% |
|
Salon Equipment & Stations
|
$15,000 - $60,000 | $15,000 - $60,000 | Same |
|
Initial Product Inventory
|
$3,000 - $10,000 | $3,000 - $10,000 | Same |
|
Interior Build-Out & Design
|
$20,300 - $67,500 | $17,300 - $57,500 | +17% |
|
Business Insurance (Annual)
|
$2,000 - $6,000 | $2,000 - $6,000 | Same |
|
Marketing & Launch
|
$2,000 - $8,000 | $2,000 - $8,000 | Same |
|
Working Capital (3 Months)
|
$16,700 - $50,000 | $10,800 - $32,300 | +55% |
| Total Estimated Cost | $78,000 - $291,000 | $67,000 - $243,000 | +19% |
Local Market Factors
| Factor | Los Angeles | Chicago |
|---|---|---|
| Cost of Living Index | 166.5 | 107.8 |
| Commercial Rent ($/sqft/yr) | $30 - $85 | $25 - $65 |
| Labor Rate Index | 1.35 | 1.15 |
| Sales Tax | 9.5% | 10.25% |
| Minimum Wage | $16.78/hr | $15.80/hr |
| LLC Filing Fee | $70 | $150 |
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