A main responsibility of the owner is establishing the structure of the salon. In the US, salons can be run as sole proprietorships, partnerships, limited liability companies, or corporations. Each of these individual organizational structures has different tax implications that the salon owner must be aware of; and other countries have their own business structures.
A hair salon owner may be responsible for hiring staff. Some hair salons are structured as standard retail organizations, in which the salon owner hires individuals to work for him, cutting hair. In this case, the salon owner pays a salary to the staff and then collects the funds from customers, although individual employees are generally permitted to keep their own tips.
In other cases, a hair salon owner may rent space in his salon to independent contractors. In this business model, those who cut hair in the salon essentially "rent a chair" for a flat fee or percentage of sales. The salon owner thus doesn't necessarily earn money from every customer, but earns money for allowing the other stylists to use space in his salon.
If a salon owner is running a sole proprietorship, he or she may be the sole individual cutting hair. In this case, the salon owner manages both the physical aspects of the business and the behind-the-scene business aspects. Even in larger businesses where a salon owner employs other workers, he or she may opt to continue to cut hair.
Salon owners can expand their business into more than just hair cutting, and this is often a popular way to earn extra revenue. For example, a salon can offer services such as waxing, spa treatments, or makeup applications. In these situations, the salon owner must either hire individuals skilled at these tasks or must undertake the tasks himself.
As an independent business person, a hair salon owner is also responsible for marketing to customers. This can be done in any number of ways, from print or media advertising to word of mouth marketing. Often, the success of the business depends on the salon owner's ability to drive customers into the business and to generate revenue through the sales of the service.