Buy a Hair Salon in Colorado Springs, CO

The Colorado Springs Hair Salon Market

Colorado Springs is a growing mid-size city with nearly 500,000 residents and a median household income of $83,198. That income level supports discretionary spending on personal care services, which means established salons with loyal clientele tend to hold their value well.

The local market skews toward owner-operator salons rather than franchise locations. That matters for buyers: owner-operated salons often have cleaner financials and more room to negotiate on structure, though they also carry key-person risk that must be addressed in due diligence.

With 135 active listings nationally in this category, supply is consistent. Colorado Springs specifically has enough local competition to keep pricing honest without the saturation you see in Denver or other larger metros.

How Much Does a Hair Salon Cost in Colorado Springs?

The price range nationally runs from $1,000 (likely distressed asset sales with no goodwill) to $7,000,000 (multi-location or high-revenue salons in premium markets). For a straightforward single-location acquisition in Colorado Springs, expect to stay in the $100,000 to $400,000 range for deals that make sense on SBA math.

At a 2.0x multiple, these salons are priced attractively relative to most SBA-eligible businesses, which typically trade between 3x and 5x. That lower multiple reflects real risk: client retention post-sale, stylist turnover, and the personal nature of the service.

Here is what the deal math looks like on a median-priced acquisition:

These are rough estimates based on Q1 2026 market data. Actual terms depend on individual qualification and lender.

A 4.4x DSCR is strong. At this price point, the debt service is low enough that even modest client attrition post-sale does not put the deal underwater. That cushion is one reason salons at the 2x multiple range can work well for first-time buyers.

Can You Use SBA Financing to Buy a Hair Salon in Colorado Springs?

Yes, and it is one of the cleaner SBA deals to structure. Hair salons have tangible assets (equipment, leasehold improvements), predictable revenue patterns, and a long track record as an SBA-eligible industry.

The standard structure Regalis Capital uses: 80% SBA 7(a) loan, 15% seller note on full standby at 0% interest, and 5% buyer cash. The seller note sits on full standby, meaning no payments until the SBA loan is retired. We achieve this structure on over 90% of our deals.

At $185,000, the buyer's out-of-pocket cash requirement is roughly $9,250. That is a low barrier to entry for a business generating $102,000 in annual cash flow.

What to Look For When Buying a Colorado Springs Hair Salon

Booth rental vs. commission structure. Booth rental salons generate income from stylist rent rather than a percentage of service revenue. That model is more passive and easier to underwrite. Commission-based salons tie revenue directly to employee performance, which introduces more variability. Know which model you are buying.

Stylist retention agreements. If the top three stylists walk out the day after close, the business changes materially. Require employment or booth rental agreements as a condition of close, and structure a meaningful seller note so the seller has skin in the game post-sale.

Client concentration by stylist. Ask for a revenue breakdown by stylist. If one person drives 60% of revenue, that is a red flag without a retention plan.

Lease terms. A salon is worthless without its location. Verify the lease has at least 3 to 5 years remaining or that the landlord will sign a new lease concurrent with close. Colorado Springs commercial rents have risen with the city's growth, so confirm the existing rent is at or below market.

Equipment condition. Chairs, shampoo bowls, color stations, and HVAC systems all have replacement costs. A basic equipment audit before close is worth the time. Budget $20,000 to $50,000 for deferred maintenance on an older salon.

Frequently Asked Questions

How much does it cost to buy a hair salon in Colorado Springs?

The median asking price for a hair salon in Colorado Springs is approximately $185,000 as of Q1 2026, with cash flow around $102,000 per year. Prices in the broader market range from under $10,000 for distressed asset sales to well over $1M for multi-location operations.

Can I get SBA 7(a) financing to buy a hair salon in Colorado?

Yes. Hair salons are SBA-eligible businesses with a long history of qualifying for 7(a) loans. The standard structure requires a 10% equity injection, typically split as 5% buyer cash and 5% seller note on full standby. At a $185,000 purchase price, that means roughly $9,250 out of pocket in cash.

What is a reasonable cash flow multiple for a hair salon acquisition?

Most hair salons trade between 1.5x and 3.0x annual cash flow. The national median sits around 2.0x as of Q1 2026. Salons with strong booth rental income, long-term stylists, and favorable leases can command the higher end of that range.

What due diligence should I run on a hair salon before buying?

Request three years of tax returns, monthly revenue reports broken down by stylist, the current lease agreement, and any booth rental contracts in place. Cross-reference reported revenue with card processing statements and supply purchase records. Salons are cash-heavy businesses, so verification is essential.

How long does it take to close on a hair salon with SBA financing?

An SBA 7(a) loan typically takes 60 to 90 days from application to close, assuming the seller provides complete documentation and the business financials are clean. Deals with incomplete records or complex ownership structures can stretch to 120 days or more.

Ready to Run the Numbers on a Colorado Springs Hair Salon?

Regalis Capital's deal team reviews 120 to 150 deals per week across the country. We know which salons are priced right, which have structural problems that kill deals at underwriting, and how to negotiate a seller note structure that protects your downside.

If you are looking at a specific salon or want to understand what a deal like this looks like in practice, start with a free deal assessment.

Talk to Regalis Capital about buying a hair salon in Colorado Springs