Free Hair and Beauty Salon Sample Business Plan PDF

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Elon Glucklich

6 min. read

Updated February 7, 2024

Looking for a free,  downloadable hair and beauty salon sample business plan Word doc  or  PDF  to help you create a business plan of your own? Bplans has you covered.

Keep in mind that you don’t need to find a sample business plan that exactly matches your business. Whether you’re launching an upscale, full-service salon in a bustling city or a neighborhood barbershop, the details will be different, but the bones of the plan will be the same.

Are you writing a business plan for your salon because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company.

No two salons are alike. Your business model will be different if you’re renting space to independent hairstylists, rather than taking on employees, for example. So take the time to create your own financial forecasts and do enough market research so you have a solid plan for success.

  • What should you include in a hair and beauty salon business plan?

Your hair and beauty salon business plan doesn’t need to be hundreds of pages—keep it as short and concise as you can. You’ll probably want to include each of these sections:

  • Executive summary
  • Company summary and funding needs
  • Products and services
  • Marketing plan
  • Management team
  • Financial plan

One of the things that makes a salon business plan different from some service-based business plans is that you might decide to offer a combination of products and services.

Maybe you’ll sell shampoo, beard oil, or other cosmetics and beauty products, in addition to offering services like haircuts, manicures, or massages. If that’s the case, make sure you include your ideas for upselling products to customers to increase the value of every appointment you book.

Here’s an example of a salon business plan outline.

Hair and beauty salon sample business plan outline.

What’s your biggest business challenge right now?

  • The 7 elements of an effective hair and beauty salon business plan

1. Executive Summary

The  executive summary  provides a high-level overview of your business plan. It should outline the objectives of your hair and beauty salon, such as to offer high-quality services, to expand the client base, or to break into a new market.

Your salon’s mission statement should describe its purpose and what sets it apart from competitors. For example, you may aim to offer a personalized experience for each customer or provide eco-friendly hair and beauty services.

The keys to success are the factors that will help your salon thrive. These may include a prime location, hiring experienced staff, excellent customer service, or a unique product and service range.

2. Company Summary and Funding Needs

The company summary offers a detailed overview of your salon, including its legal structure , location, and history. Also, it highlights your salon’s funding needs if you are seeking financial support.

Clearly state how much funding you need, what you will use it for, and how it will benefit the salon. For instance, you may need funds to renovate the premises, purchase equipment, or boost marketing efforts.

3. Salon Products and Services

This section should detail the products and services your hair or beauty salon will offer. These may include haircuts, hair treatments, manicures, pedicures, massages, and beauty treatments.

If you plan to retail beauty products such as shampoos, conditioners, or skin care items, include this information too. Highlight any unique services or products that differentiate your salon from competitors.

4. Salon Marketing Plan and Analysis

Your marketing plan should outline the strategies you will use to attract and retain customers. These strategies might include social media advertising, loyalty programs, partnerships with local businesses, and special promotions.

Additionally, you should conduct a thorough market analysis. Understand your target customers, their preferences, and their spending habits. Identify your competitors, their strengths and weaknesses, and how you can differentiate your salon.

5. Salon Management Team

The management team section provides information about the salon’s key personnel. This could include the salon owner, managers, stylists, beauticians, and other staff members. Highlight their roles, responsibilities, qualifications, and experience.

If you plan to rent chairs to independent stylists rather than hiring employees, describe how this arrangement will work and the advantages it offers for your business.

6. Financial Plan and Forecasts

Your financial plan should present detailed financial projections, including revenue, costs, and profitability. Include a cash flow statement, income statement, and balance sheet. This section should clearly demonstrate the salon’s potential profitability and financial viability.

Also, outline your pricing strategy. How have you priced your services and products, and how do these prices compare with competitors? What are your wage costs, and how will they affect your profitability?

7. Appendix

The appendix includes any additional supporting documents that complement your business plan. This might be market research data, lease agreements, employee contracts, or licensing and permit documents.

While not always necessary, the appendix can provide valuable context and proof to support your business plan’s content.

  • Crafting a Successful Salon Business Plan: Key Considerations

Understanding your target clientele’s needs is crucial to writing a hair or beauty salon business plan that you can put into action. To ensure your business plan is the foundation of a growing operation rather than just checking boxes, ask yourself whether you’re taking these considerations into account.

1. Comprehensive Services Offering

In the beauty industry, customer preferences vary significantly, and staying versatile in your offerings can help cater to a broader clientele. Include a wide range of services that cater to different demographics. You may also consider offering unique or specialized services that distinguish your salon from others.

2. Pricing Strategy

Pricing can make or break your salon. Competitive pricing attracts customers, but your pricing should also cover your costs and ensure profitability. Effective market research can help you understand the average cost of services in your area, which you can use to set your prices competitively.

3. Salon Atmosphere

The ambiance of a salon plays a significant role in attracting and retaining customers. Consider factors like décor, cleanliness, and customer service when planning your salon.

4. Staff Training and Expertise

Quality service is crucial in the hair and beauty industry since word-of-mouth exposure from existing clients is a major driver of new business. Investing in ongoing staff training ensures that your team stays updated with the latest trends, techniques, and customer service skills.

5. Digital Presence

Although word of mouth is one business driver, many of today’s customers research online before visiting a salon. Having a strong online presence, including a well-designed website, effective search engine optimization and active social media accounts, can significantly boost your business.

  • Download your free hair and beauty salon sample business plan PDF

Download this  hair and beauty salon sample business plan PDF  for free right now, or visit Bplans’ gallery of more than  550 sample business plans  if you’re looking for more options.

There are  plenty of reasons  salon business owners can benefit from  writing a business plan —you’ll need one if you’re seeking a loan or investment.

Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

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Content Author: Elon Glucklich

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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How to write a business plan for your hair salon.

business plan for a hair salon

Starting a hair salon is a great way to be your own boss and make a living doing something you love.

It also offers potential for growth and diversification, allowing you to add additional services or products to your business.

But, before launching anything, make sure you have a business plan in place.

A business plan is an essential tool for any new project, and a hair salon is no exception. Writing a business plan will help to ensure that the project is well-thought-out and has a clear roadmap for success.

In short, a thorough business plan will help make sure your hair salon is profitable .

What should you consider when writing a business plan for a hair salon? What should be the main focus areas? What are the important financial ratios to consider? How can I speed up the process of developing an efficient business plan?

Please, find comprehensive answers to all these questions below.

Additionally, it's worth noting that you have the option to avoid starting your business plan from scratch.

Instead, you can download our business plan for a hair salon and adapt it to your project.

business plan beauty salon

Creating a business plan for a hair salon

Will a business plan be beneficial for your hair salon.

Yes, you should create a business plan to ensure the success of your hair salon.

Developing a robust business plan will enable you to:

  • learn about the hair salon market
  • be aware of new consumertrends and apply them to your project
  • identify factors for viability in a hair salon
  • understand the latest hair trends, styling preferences, and customer expectations in salon services
  • find a great unique value proposition for your hairstyling salon
  • investigate competitor customer retention strategies
  • find competitive advantages for your hair salon
  • find a business model that delivers consistent positive financial outcomes
  • establish and execute a solid and strategic action plan for long-term success
  • evaluate potential risks specific to a hair salon, including customer satisfaction, employee training, and product safety

Our team has drafted a business plan for a hair salon that is designed to make it easier for you to achieve all the elements listed.

How to outline a business plan for a hair salon?

Your business plan will include a wide range of numbers and valuable information. It must be presented in a structured format, to make easy to read and digest.

When we built our business plan for a hair salon , we took care to arrange it appropriately.

There are 5 parts within the business plan.

1. Market Opportunity

The introductory section has been named "Market Opportunity".

Our team has gathered essential information and metrics about the hair salon, providing valuable insights for entrepreneurs in this industry.

The data here is always kept current; we update it biannually.

2. Project Presentation

The "Project" section provides an opportunity to describe your hair salon, specifying the range of hair services you offer (cut, color, styling), specialized treatments, talented stylists, haircare products, salon ambiance, and the unique value proposition that guarantees exceptional hairstyling and customer satisfaction.

Remember to introduce yourself at the end of this section.

Discuss your passion for hairstyling, your expertise in hair trends and techniques, and how you plan to create a personalized and transformative hair salon experience for clients. Highlight your range of services, your skilled stylists, and your dedication to providing individualized consultations and exceptional customer service that leaves clients feeling confident, stylish, and satisfied at your hair salon.

We prepared text in our business plan. Customize it to suit your idea.

3. Market Research

Moving on, there's the "Market Research" section.

In this section, you will find a market segmentation analysis for your hair salon.

It includes a study of other hair salons in the area that will be competing with you. Your salon's unique hair services and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

The "Strategy" section outlines a comprehensive 3-year action plan, detailing the initiatives and steps needed to transform your hair salon into a highly profitable endeavor.

Furthermore, this section encompasses a comprehensive marketing plan, a strategy to mitigate risks, and a completed Business Model Canvas.

5. Finances

In the end, the section titled "Finances" is where you can present the financial plan and breakdown for your project.

business plan hair salon

How to write the Executive Summary for a hair salon?

The Executive Summary gives a summarized glimpse into the business plan of your hair salon.

Keep it brief, not going over 2 pages. Highlight the essential points.

When you share your business plan with an investor, this is the part they will read at the beginning. It should grab their interest and make them want to read the rest of the plan.

In the Executive Summary of your hair salon, address the following queries: what services does your hair salon offer? who is your target audience? are there other hair salons in the area? what makes your salon unique? what funding do you need?

How to do the market analysis for a hair salon?

Analyzing the market for your hair salon allows you to gain insights into factors such as customer preferences for hairstyling and haircare services, competition from other salons, and emerging trends in hair fashion.

By conducting a comprehensive market study, a hair salon can identify customer preferences, offer a range of hair services, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased appointments, and a prominent position in the local hair care industry.

Here's what we've incorporated into the "Market Research" section of our business plan for a hair salon :

  • fresh and updated data and statistics about the hair salon industry, including popular hairstyles, hair care trends, and customer preferences
  • a list of potential market segments for a hair salon
  • the competitor analysis
  • the competitive advantages to target for a hair salon

business plan hair salon

The key points of the business plan for a hair salon

What's the business model of a hair salon, business model of a hair salon.

A hair salon's model revolves around providing various hair care services, including haircuts, styling, coloring, or treatments. Revenue is generated through service fees, potentially offering retail hair products or additional beauty services.

The business model focuses on employing skilled hair stylists, providing personalized consultations, using quality hair products, creating a welcoming and trendy salon environment, and building strong client relationships through exceptional service and hairstyling expertise.

Success depends on stylists' talent and creativity, effective marketing to target individuals seeking hair services, maintaining industry trends and techniques, fostering positive client reviews and referrals, and providing a satisfying and rejuvenating salon experience.

Business model ≠ Business plan

Be clear on the distinction between "business plan" and "business model."

A business model is a blueprint for how a company operates and makes money.

In a business plan, you use the Business Model Canvas as a visual aid to explain the inner workings of your business.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a hair salon .

How do you identify the market segments of a hair salon?

Market segmentation for your hair salon involves dividing your potential customers into different groups based on their haircare needs, preferences, and demographics.

These categories may include factors such as haircuts and styling, coloring and highlights, extensions, or customers seeking specific hair treatments (e.g., keratin treatments, scalp treatments).

By segmenting your market, you can offer a range of hair services and solutions that cater to each segment's specific requirements. For example, you might provide a variety of haircut and styling options for customers seeking trendy or classic looks, offer professional hair coloring and highlighting services for customers looking to enhance their hair color, specialize in hair extensions and volumizing treatments, or provide specialized treatments for customers with specific hair concerns such as damaged hair, dry scalp, or frizz control.

Market segmentation allows you to effectively target your marketing efforts, showcase your hairstyling expertise, and deliver personalized and satisfying hair services that meet the unique needs and preferences of each customer segment.

In the business plan for a hair salon , you will get a detailed market segmentation, helping you understand your target audiences and their needs.

How to conduct a competitor analysis for a hair salon?

Without surprise, you won't be the only hair salon in your city. There will be other establishments offering hair styling, cutting, and coloring services to customers.

Your business plan must incorporate a thorough examination of your competitors, including their characteristics, strengths, and weaknesses.

Pay attention to their weaknesses (such as inexperienced stylists, lack of trending hairstyles, or poor customer satisfaction).

Why is it crucial to notice these aspects? Because these weaknesses can impact the client experience at hair salons. By addressing these elements, you can provide a wide range of hair services and treatments, offer skilled and creative stylists, and create a welcoming and stylish salon environment, establishing your hair salon as a preferred choice for hair care and styling needs.

It's what we call competitive advantages—work on developing them for a distinct business identity.

Here are some examples of competitive advantages for a beauty salon: skilled and experienced stylists, wide range of beauty services, relaxing and luxurious ambiance.

How to draft a SWOT analysis for a beauty salon?

A SWOT analysis can help identify potential strengths, weaknesses, opportunities, and threats that may affect the success of a hair salon.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a hair salon

The strengths for a hair salon

The letter "S" in SWOT signifies Strengths, highlighting the project's internal advantages or positive features.

For a hair salon, potential strengths include excellent customer service, a wide range of services, experienced staff, and attractive pricing.

The weaknesses for a hair salon

The "W" stands for Weaknesses, referring to the areas or aspects of the project that need to be addressed.

For a hair salon, potential weaknesses could include lack of repeat customers, limited marketing budget, lack of online presence, and lack of staff training.

The opportunities for a hair salon

O represents Opportunities in SWOT, referring to the external factors or conditions that can create opportunities for the project's advancement.

In the case of a hair salon, potential opportunities may include offering online booking services, expanding into new markets, providing additional services such as cosmetics and nail care, and advertising on social media.

The threats for a hair salon

The "T" in SWOT stands for Threats, which are external factors that may pose risks or challenges to the project's success.

How to outline a marketing strategy for a beauty salon?

A marketing strategy is a vital element of a business plan as it details how a business will attract customers and generate business.

A hair salon can attract clients in need of professional and trendy hairstyling services by implementing a targeted marketing plan that highlights the salon's skilled stylists and personalized approach.

Clients won't choose your beauty salon without effective marketing; showcasing your range of services, talented stylists, and relaxing atmosphere is crucial.

Are you implementing effective marketing strategies for your hair salon? Consider offering first-time client discounts or referral programs, showcasing trendy hairstyles or transformations on social media, and partnering with local fashion influencers for endorsements.

Don't fret if you lack ideas for your project's marketing strategy.

How to build a solid financial plan for a beauty salon?

A successful business plan must include detailed financial information, such as income and expense projections, cash flow statements, and a break-even analysis.

As you outline your business plan, you should include revenue projections for your hair salon.

The inclusion of a relevant and credible revenue forecast in your business plan adds credibility and enhances appeal to banks or investors.

Our financial plan for a hair salon is straightforward and equipped with automated checks, enabling you to validate and adjust your assumptions easily. This way, we make sure you're building solid financial projections.

Without a doubt, you'll need to come up with a basic budget for starting your hair salon. Make certain to include all expenses without exception - you can find them all listed in our financial plan!

The break-even analysis is a crucial tool in your financial plan, providing insight into whether your hair salon will become a profitable company or not.

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Hair salon business plan template + PDF

Hair salon business plan

This article presents a model business plan for a hair salon, providing a comprehensive structure to assist you in setting up and running your salon. It is important to note that the names and figures used in this template are fictional, created for demonstration purposes. However, they can be tailored to fit the unique requirements and circumstances of your own hair salon business.

Additionally, for ease of use and customization, a hair salon business plan PDF is available for download. This article serves as an invaluable tool for entrepreneurs who are keen on developing a robust and practical strategy for launching or growing their hair salon, providing a clear roadmap and comprehensive insights into the industry.

How this hair salon business plan sample was created

Obtain your tailor-made hair salon business plan easily by clicking on 'Get your business plan . This simple process involves answering a series of questions about your salon, giving key insights into your business. Our sophisticated AI will then craft a detailed business plan, customized to your specific objectives. It is a quick procedure, taking only 5-10 minutes, and you'll have a well-structured plan at your fingertips. This system's adaptability allows you to modify the plan to suit your unique vision. Once you're satisfied, you can save the plan directly to your computer, providing a clear and accessible path to success for your hair salon.

Hair salon business plan: questionnaire

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Hair salon business plan sample

Executive summary, business description, market research and analysis.

  • Organizational Structure and Management Team
  • Products or Servicess

Marketing and Sales Strategy

Operations plan, financial projections, risk analysis.

Curl Me Crazy is strategically positioned within the thriving hair salon industry. Our mission is to create the latest trendy and unique hairstyles that will appeal to young adults and professionals who are our target market.

As an up-and-coming small business with ambitions of growth over the next 3-5 years, we start with the goal of breaking even in Year 1 as we build a solid client base and offset initial investment costs. In Years 2-3, we project a steady revenue growth of 15-20% per annum, and by Years 4-5, with an established clientele and expansion plans rolling out, we foresee profit increases of 25-30%. Our long-term goal is to open a second location and further boost our profitability margins.

Despite potential risks such as market competition, economic downturns, customer retention, supply chain issues, staff turnover, and health and safety concerns, Curl Me Crazy has delineated mitigation strategies and contingency plans for each. These include differentiating with unique services and styles, offering diverse and affordable options, focusing on exceptional customer satisfaction, building trade relationships with multiple suppliers, and creating a positive work environment for team members.

Our operations plan targets a trendy, accessible location in a busy urban area. Operating six days a week, we intend to offer extended working hours on weekends. Our team, constituting a Manager, Assistant Manager, multiple Hair Stylists, and a Receptionist, will operate on a rotating shift basis to maximize productivity.

The Curl Me Crazy team, led by Alex Taylor, the owner and Manager, boasts a wealth of experience in both hairstyling and business management. Supported by Assistant Manager Jamie Lee, renowned for her customer relations expertise, and Lead Stylist Chris Morgan, a highly-acclaimed creative genius, the team is poised to deliver exceptional service to our clients.

We offer a wide range of services encompassing custom haircuts, coloring, styling, and hair care products tailored to the latest trends, client preferences, and the current vogue for personalized hair solutions.

Our sales and marketing strategy hinges on maintaining a dynamic social media presence, as well as forging partnerships with local businesses and influencers for cross-promotion. Coupled with offline efforts like local advertising, promotional offers, and the implementation of an easy-to-use online booking system, we aim to capture a dominant market share.

We acknowledge the presence of key competitors like "Stylish Strands Studio" , "Elegant Locks Salon" , and "Modern Mane Hair Boutique" . While these salons offer quality services and boast trendy clienteles, we are confident that our differentiated services, strong operational strategies, and expertise will set us apart.

Curl Me Crazy, envisaged as a leading trendy salon, is ready to make waves in the competitive hair industry. With our strategic planning and market-focused approach, we are betting not just on surviving, but thriving in the market.

Hair salon business plan: Executive Summary

Curl Me Crazy, located in the bustling downtown district of New York City, stands as a thriving venture in the beauty and personal care industry. With an emphasis on creative and trend-setting hairstyles, our business aims to become a trailblazer for young adults and professionals seeking unique, standout looks.

The salon was opened in 2020 by its visionary, Alex Taylor. Alex, having nearly a decade of experience in hairstyling and a fervor for the beauty industry, identified a gap in the market for a hair salon catering specifically to more adventurous, fashion-forward clients. His background in business management has complemented and informed the foundations of Curl Me Crazy, steering it towards its current path of success.

Our mission statement is to "inspire individuality and confidence through transformative hairstyling and exceptional service" . We believe that the sphere of hairstyle is not just about cutting and styling hair but serving as a medium for clients to express their personality and style. At Curl Me Crazy, we are committed to providing that opportunity, where each client's individual style and expression is given paramount importance.

The legal structure of Curl Me Crazy is a Sole-proprietorship, with Alex Taylor being the sole owner and operator. This structure not only equates to more straightforward business operations, but it facilitates quick decision-making and a closer relationship with our employees and clients.

Looking at the long-term potential of Curl Me Crazy, we envision ourselves to not be confined to a single salon. The objective is to become a widely recognized and revered brand in the hair salon industry. With the enriched customer experience we provide and our distinct creative edge, we plan to expand our operations to multiple locations across the nation, fostering a network of satisfied and loyal clients.

Financially, we anticipate seeing substantial growth. As we strategize to expand our client base and motivate employee performance, we expect the business to break even in its first year. Ensuing steady growth over the next 2-3 years promises a positive profit margin with an expected annual revenue increase of 15-20%. Further, by the end of the 5th year, with a more established clientele and expansion course laid out, we look forward to seeing a 25-30% growth in our profits. Thus, the longevity of Curl Me Crazy, despite the overwhelmingly competitive market, seems farsighted and plausible.

The beauty and personal care industry is a challenging and ever-evolving landscape. However, the potential it holds for businesses that are eager to innovate and adapt is astronomical. Our commitment to quality service, paired with our relentless pursuit of the trends and demands of the market, fuels our belief that Curl Me Crazy holds the promise to make a mark on this thriving industry.

Curl Me Crazy is entering the burgeoning hair salon industry, set to make waves with its unique, trendy, and creative hairstyles that target young adults and professionals. The industry is currently valued at $47 billion and is expected to grow at a compound annual growth rate (CAGR) of 1.2% over the next five years.

I. Industry Description

The hair salon industry evolves continually with fashion and pop culture trends, necessitating businesses to stay abreast of the latest styles and techniques. Technological advancements have also influenced businesses, with many establishing digital platforms to expand their reach, streamline operations, and anticipate customer preferences, reflecting the industry's adaptiveness.

II. Target Market

Our target demographic comprise age groups of 18-35, primarily reach college students, young professionals, and trend conscious individuals. As per the census data, this demographic attributes to a population size of approximately 1 million individuals in the city, suggesting a massive potential customer base for our business.

III. Market Needs and Demands

Today's customers seek more than a haircut; they desire experiences and personalized services that cater to their unique style preferences and hair health needs. Additionally, they appreciate convenience in service, evidenced by the growing preference for online booking systems, hinting at the need for innovative service delivery modules.

IV. Market Trends and Patterns

Salons embracing sustainable practices are increasingly favored, representing a shift towards environmentally-friendly products and practices. Also evident is an increasing interest in natural and organic hair care products, suggesting demand patterning around health-conscious products.

V. Competitor Analysis

Key players include "Stylish Strands Studio" , "Elegant Locks Salon" , and "Modern Mane Hair Boutique" . These salons have widespread recognition and a loyal customer base, owed to their service quality and trend-driven styles. However, their offerings have slight premium pricing and lack the personalization we offer.

VI. Potential Barriers to Entry

High setup costs, intensive competition, and the necessity for skilled professionals are significant barriers to entry. However, by leveraging competitive pricing, unique service delivery, and exceptional customer service, we aim to differentiate ourselves in the competitive landscape.

VII. Financial projections

Given our unique value proposition and the robust market potential, we expect to break even in our first year. Over the following two years, we foresee a revenue growth of 15-20% per annum. By our fifth year, leveraging an established clientele, we anticipate profits to increase by 25-30%.

VIII. Contingency Plan

In the event of unforeseen challenges, such as economic downturns or market competition, we plan to diversify services, implement affordable options, and regularly analyze market trends to stay competitive.

In conclusion, with effective segmentation, a differentiated offering, and a strong understanding of market patterns, Curl Me Crazy is poised for success in the bustling hair salon industry.

Organizational Structure and Management

As a small business aspiring to make a big impact, Curl Me Crazy is organized in a streamlined hierarchy that encourages both individual accountability and collaborative teamwork. At the top is Alex Taylor, the owner and manager, whose vision and tenacity guide all aspects of the business. With a decade of experience in hairstyling and a certification in business management, Alex is instrumental in navigating the industry trends, financial management, customer service, and the overall running of the salon. Supporting Alex is Assistant Manager, Jamie Lee. With five years of salon experience, Jamie's role involves overseeing day-to-day operations, scheduling, and client relationship management. The salon also has a lead stylist, Chris Morgan, who brings creative flair with his distinguished hair designs and eight years of industry experience.

Curl Me Crazy currently operates with a team of ten individuals, including the management. The staffing needs are slated to grow as the business expands. We envision hiring three more full-time stylists, a full-time receptionist, and two part-time assistants by the end of year two. All future hires will be local to minimize commute times and to support the local economy.

The company operates with a robust human resources policy that encompasses competitive compensation, clear protocols for performance reviews, open communications, and opportunities for career development. We strive to create a positive work environment that values mutual respect, diversity, and an enduring commitment to our clients' satisfaction. Our practices abide by all employment laws and regulations, ensuring an equitable work environment.

At present, Curl Me Crazy does not engage external advisors or consultants. However, we continue to reassess this as we grow. We consider the integration of an Advisory Board consisting of experienced individuals from different industry backgrounds for strategic guidance, is a long-term possibility.

In conclusion, Curl Me Crazy leverages a focused organizational structure that's calibrated for efficiency, success, and growth. Backed by a dedicated team, clear HR policies, and a commitment to hiring local talent, we are confident to meet the set business targets and emerge as a popular name in the salon industry.

Hair salon business plan

Products or Services

Curl Me Crazy is a forward-thinking hair salon business strategically situated in the heart of New York. Our services primarily include customized haircuts, bespoke coloring services, advanced hairstyling as per the latest trends, and a variety of hair care products. We specialize in delivering personal attention to each client and working with them to create a unique hairstyle that aligns with their personal style and needs.

Our competitive edge in the market stems from the exceptional array of innovative services we offer, coupled with our high-level skills and meaningful client-stylist relationships. Unlike many of our competitors, every client at Curl Me Crazy receives a detailed consultation before any services are performed. This consultation, during which stylists understand client's lifestyle, hair texture, faces structure, and personal style, helps us create customized, flattering looks that can be easily recreated by clients at home.

Curl Me Crazy is currently in its first year of operations but has shown promising growth thus far. Backed by a solid business plan and a feasible financial model, we aim to break even by the end of the first year and gradually increase our revenue by 15-20% per year over the next three years.

Regarding intellectual property, we have registered the salon’s brand name – "Curl Me Crazy" - as a trademark to protect it from unauthorized use. We also respect copyright laws and use only licensed or custom-created music in our salon.

The production process for our hair services can be divided into four main stages: consultation, recommendation, execution, and homecare advice. Each stage is meticulously carried out by our certified and experienced stylists who strive to exceed client expectations.

At Curl Me Crazy, we recognize the importance of using high-quality professional hair care products to deliver brilliant results. We source our products from reliable suppliers who offer eco-friendly and cruelty-free products. We have established relationships with three main suppliers - L'Oréal Professionnel , Redken, and Aveda - to ensure a consistent supply of the highest quality hair care products.

In conclusion, Curl Me Crazy is a dedicated hair salon business with a focus on building a reputation as the destination for personalized and creative hair care services. With our defined path for growth and commitment to service excellence, we are geared up to make a difference in the hair salon industry.

Marketing Strategy

Riding on the back of digital advertising, Curl Me Crazy will deploy a well-strategized digital marketing campaign majorly on Instagram and Facebook due to their wide user-base and marketplace feature. These platforms will be utilized for showcasing our work, including before and after transformations, tutorials, products, and reviews.

Sales Strategy

Our sales strategy is centered on relationship marketing. We will nurture strong relationships with our customers by understanding their preferences and delivering personalized service each time they visit our center.

To guide this process, we are investing in the deployment of a Customer Relationship Management (CRM) system for managing appointments, custodial of customer records and preferences, recall mechanism, and tracking client visit frequency.

Training would be provided for all staff members to comprehend our personalized approach towards sales and ensure uniformity across the team.

Pricing Strategy

Our pricing will be positioned at a medium-high level. We will aim to deliver a premium service experience, maintaining quality at all times to match our pricing. To ensure our services are accessible to varied customers, we will also introduce various bundles and packages, which will offer cost savings to the customers.

Distribution Channels

The primary distribution channel for our service delivery will be our salon. In addition to walk-in customers, we will offer an online appointment feature on our webpage and app. We will also explore partnerships with other beauty service apps, extending our reach.

Promotion and Advertising

Initial promotional activities will be concentrated on drawing customers to our salon. We will offer a 20% discount for first-time customers and a referral program that provides a 10% discount if an existing customer refers a new one. Advertising would be carried out through local newspapers, digital platforms, and billboard promotions.

Customer Service Policies

We operate on a 'Customer First' principle. Our front desk will be trained to address customer needs proactively and promptly. For any service-related complaints, we will offer a free corrective service or a service voucher as a remedy. We will also solicit customer feedback after each appointment to understand opportunities for improvement. Our aim is to drive customer satisfaction, retention, and word-of-mouth referrals.

Curl Me Crazy is poised to disrupt the hair salon industry by seamlessly blending high-quality, personalized services with an innovative operational workflow. Our primary objective is to offer trendy, creative hairstyles for young adults and professionals in a welcoming, relaxed, and efficiently run environment.

  • Operational Workflow: Our salon operates six days a week, following a dual shift system that ensures efficient and uninterrupted salon service. The staff rotation involves working in two shifts, with five stylists covering each shift. The first shift starts at 10:00 am and ends at 3:00 pm, and the second shift runs from 3:00 pm to 8:00 pm. Our peak hours, from 5:00 pm to 8:00 pm, will be catered to by all the stylists sharing the workload. This ensures continuous service without overwhelming the employees.
  • Production or Service Delivery Processes: As a salon, our core service delivery process involves three steps: appointment, service, and payment. An online booking system integrated into our website and mobile app facilitates client appointments, ensuring that service timing preferences are met accurately and avoiding unnecessary waiting times for clients. Outstanding customer service is our driving force, guaranteed through highly experienced employees consistently delivering trendy and unique hairstyles.
  • Quality Control Measures: We prioritize the highest standards of customer satisfaction combined with stringent quality control measures. We conduct regular training workshops where our stylists are updated on the latest trends and techniques. All our employees have met rigorous criteria for their roles, ensuring quality, creativity, and precision in the services delivered.
  • Inventory Management: Our salon performs regular inventory checks, ensuring that we never run out of essential products. We also employ a professional inventory management system that triggers an alert when any product reaches its reorder level. This keeps our salon adequately stocked at all times.
  • Supply Chain Management: We source hair care products from multiple reliable suppliers to prevent any potential disruption in our supply chain. In the event of delivery delays from one supplier, we always have an alternative to fall back on.
  • Facilities and Equipment Needs: Ensuring our salon's neat and welcoming atmosphere demands functional facilities and up-to-date equipment. These include but aren't limited to high-quality salon chairs, professional-grade hair dryers, washing stations, state-of-the-art styling equipments, and a comfortable waiting area for clients. Regular maintenance and timely upgrades are planned to ensure the premises remain at par with current standards.

In conclusion, Curl Me Crazy's solid operations plan is designed to facilitate smooth daily operations and exceptional customer satisfaction, spelling out sure success for the salon in the challenging hair industry.

At Curl Me Crazy, financial integrity is as important as the creative hairstyles we conjure. This section will outline our financial projections, including sales forecast, profit and loss projection, cash flow forecast, balance sheet projection, break-even analysis, and key financial assumptions.

  • Sales Forecast: In the first year, we aim for steady growth and recognize this as a crucial period for establishing a strong market presence. We project a monthly revenue of $10,000 that should grow to $20,000 by the end of year one. In the subsequent four years, this is expected to increase steadily, providing us a consistent annual growth rate of approximately 15%.
  • Profit and Loss Projection: As investments in marketing, renting, salon setup, and labor costs (salaries and benefits) will form our initial expenditure, we predict a loss in the first quarter. However, we aim to bounce back quickly and expect to start turning a profit by the beginning of the second year with a projection of $50,000. This profit is anticipated to increase year-on-year, reaching $100,000 by the end of year five.
  • Cash Flow Projection: We expect positive cash flow starting from the second year of operations. The first year may pose challenges due to an expected lull after the initial setup, but bearing minimum loan expenses and assuming a steady increase in customers, we should be able to maintain adequate cash flow.
  • Balance Sheet Projection: Our balance sheet will reflect our growth, with assets increasing progressively with profits and the addition of more salon equipment. Liabilities will reduce over time as loans are paid off, leading to a steady increase in owner’s equity.
  • Break-even Analysis: Our break-even point is projected to occur towards the end of the first year. This is based on initial estimations of fixed costs, variable costs, and the average customer spent per visit.
  • Financial Assumptions and Considerations: Our financial projections are based on several assumptions, including stable economic conditions, steady client growth, continued relevance of our unique hairstyles, and market price stability for salon supplies. It’s important to note that financial projections can be influenced by a variety of external factors such as economic downturns and increased market competition. To mitigate these risks, we'll allocate funds for contingency and regularly assess our financial strategies to be in line with the market conditions.

In conclusion, with the projected revenue growth and controlled operational costs, Curl Me Crazy is all set to carve a space for itself in the competitive hair salon market while maintaining financial sustainability.

Curl Me Crazy anticipates several potential risks in its journey to being an accomplished hair salon business. However, we also have several mitigation strategies and contingency plans developed to navigate them successfully.

  • Market Competition: The salon industry is highly competitive, with new businesses surfacing at many junctures. To rise above the competition, Curl Me Crazy will endeavor to provide unique services bolstered by a diverse range of skillsets our team possesses. Regular market analyses will help us stay tuned with the latest trends and techniques, enabling us in staying ahead of the competition curve.
  • Economic Downturns: A sluggish economy could affect our business due to potential reductions in disposable incomes of customers potentially undermining demand. We will counter this by diversifying our services to include low to medium budget options, ensuring we retain clients across various spending capacities.
  • Client Retention: Clients are spoilt for choice in our industry, thereby potentially obstructing client retention. We plan to invest in exceptional customer service and satisfaction as our key strategy, supplemented by loyalty programs that secure repeat business and promote referrals.
  • Supply Chain Issues: Any disruption in the supply chain can hamper operations, which could be due to various reasons such as logistics issues, stock unavailability, or supplier discounts. As a precautionary measure, we'll establish relationships with multiple suppliers ensuring uninterrupted supply and always maintaining a buffer stock.
  • Staff Turnover: Given the creative nature of stylists, one of the challenges we could face is employee retention. Keeping our staff challenged, acknowledged, and satisfied will be vital. We plan to foster a positive work environment with opportunities for personal and professional growth, and regular training to keep them updated with the latest industry trends.
  • Health and Safety Concerns: Stringent health and safety regulations govern our industry given its direct relationship with clients' physical well-being. We will adhere to all local and national regulations, keeping staff trained on safety protocols to eliminate any chance of dereliction.

Understanding that risks are inevitable, Curl Me Crazy has in place a robust contingency plan covering all facets of our business. We will establish an emergency fund to cushion against unexpected fiscal challenges, stay connected with the up-to-the-minute industry trends and pivots to keep our business relevant, and most importantly, keep our business model flexible and adaptable based on evolving circumstances.

Our insurance forecast includes extensive coverages that include liability insurance, covering bodily injuries or property damage, workers' compensation insurance to cover medical treatment and disability in case of an employee injury, and property insurance to cover any damage to our business property, lastly, business interruption insurance to cover lost income and continue operating expenses in the event of a disaster causing business disruption.

In the legal area, we will engage with a law firm to guide on all legal compliances required for our salon business. Legal considerations include complying with health and safety laws, employment laws, licensing laws, and applicable tax laws.

In conclusion, while risks are an integral part and parcel of any business, Curl Me Crazy is committed to effectively managing and mitigating any potential pitfalls that may arise along our path. Our comprehensive risk analysis, best practice mitigation strategies, contingency plans, and an all-embracing insurance cover ensure that we stand resilient in the face of any challenge.

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Hair salon business plan template

Download this hair salon business plan template in PDF or Word format, or tailor it to your project directly in our business plan software.

Discover our hair salon business plan template

Our hair salon business plan template gives you the structure to write a professional plan.

Not accustomed to writing business plans? Our hair salon business template will turn a typically challenging process into a total breeze.

Modelled on a complete business plan of a hair salon in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.

Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.

hair salon businesss plan template

7 day free trial. No credit card required. Hair salon business plan template available with paid plans only.

How to use this hair salon business plan template

Edit the hair salon business plan template online, or download it.

There are 3 ways to use this template:

  • Edit it online: you can adapt this template to your business idea by changing the text or the financial forecast directly in our business planning software
  • Download in PDF: if you're just after a little inspiration, you can download the hair salon business plan template in PDF to read over it
  • Download in Word format: want to edit your plan on Word? Simply export the hair salon business plan template to Ms Word (.docx) format

online editor for hair salon business plan template

Hair salon business plan template content

This template includes a complete hair salon business plan example, with a financial forecast and the following sections:

  • Executive summary: the executive summary gives the reader a clear and concise overview of your business idea
  • Company: this section lays out the structure of your business, including its location, management team and legal form
  • Products and services: here, you'll give an overview of the services (haircuts, traditional shaves, packages) or products (scalp care) offered by the company
  • Market analysis: the market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
  • Strategy: this section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way
  • Operations: this step lays out the company's operational organisation, including the recruitment plan
  • Financial plan: the financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statements).
  • Appendices: this part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

cover page and table of contents for the hair salon business plan template by The Business Plan Shop

Executive summary of the hair salon's business plan

The executive summary gives the reader a clear and concise overview of your business idea.

Our hair salon business plan example's executive summary is formed of the following subsections:

  • Business overview: in this subsection, we outline who the hair salon founders are, what legal form they've chosen for the business and the rationale behind the choice of their location
  • Market overview: in this subsection, we summarize the conclusions of the market analysis performed by the hair salon's owners and explain who they aim to target
  • Financial highlights: in this subsection, we give an overview of the forecasted financial performance of the hair salon over the first 3 years of operation
  • Our ask: in this subsection, we outline the amount of financing required to start the hair salon and how it's going to be funded (the founders are seeking both a bank and VAT bridging loan to start their hair salon)

executive summary for hairdresser business plan sample

Company overview included in our hair salon business plan sample

This section lays out the structure of your business, including its location, management team and legal form.

Our hair salon business plan template's company section is formed of the following subsections:

  • Structure & Ownership: in this subsection, we outline who the hair salon's shareholders are and what legal form they've chosen for the business
  • Location: in this subsection, we present the area surrounding the location chosen for the business and the layout and main features of the premises
  • Management Team: in this subsection, we give an overview of the background of each of the hair salon's founders, explain how they met and why they decided to start a company together

company overview included in hair salon business plan template

Products and services offered by the hair salon

The products and services section is where you will present the different types of haircuts, shaves, packages and scalp-care items offered by your hair salon.

In our hair salon business plan template products and services section, we cover:

  • Haircuts: a range of standardised treatments including haircuts, wash, trim and dry
  • Traditional shaves: wet shaves that are both relaxing and true to the traditions of our barber
  • Products: a choice of high quality hair and scalp products is available
  • Packages: a full-care routine (e.g. full wash, cut and shave)

product and services description of the hair salon business plan example

Market analysis for the opening of the hair salon

The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)

Our hair salon business plan example's market analysis section is formed of the following subsections:

  • Demographics and Segmentation: in this subsection, we explore the market in depth. We look at the supply and demand sides both at the national and local level, analyse the hot trends perceived by the founders, and the key statistics that will help the founders build their positioning
  • Target market: in this subsection, our founders explain which services (haircuts, shaves, styles, trims etc.) their ideal target audience loves and why they chose to target them
  • Competition: in this subsection, we take a look at the direct (men's hair salons nearby) and indirect (unisex hair salons) local competition to ensure we have a differentiated positioning and that the market is large enough to accommodate the arrival of new hair salon
  • Regulation: in this subsection, we give an overview of the main regulation applicable to our hair salon

market analysis section of the hairdresser business plan template

Setting the strategy for our hair salon

This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way.

Our hair salon business plan template strategy section is formed of the following subsections:

  • Pricing: in this subsection, we explain how we set the prices of our main categories of products and services (haircuts, wet shaves, scalp products, hair care products, styles) and the rationale behind our choice
  • Marketing plan: in this subsection, we explain what action we'll put in place to build awareness and loyalty among our hair salon customers
  • Milestones: in this subsection, we give an overview of the main goals we set for ourselves for the next 3 years
  • Risks and Mittigants: in this subsection, we perform an assessment of the medium and long-term risks that could jeopardize the financial viability of our hair salon and outline how we intend to mitigate them

hairdresser business plan example: strategy section

Operations section of the hair salon business plan template

This part lays out the company's operational organisation, including the recruitment plan.

Our hair salon business plan example's operations section is formed of the following subsections:

  • Personnel plan: in this subsection, we explain what our opening hours will be and explain the responsibilities of each of staff member in our hair salon
  • Key assets and IP: in this subsection, we list the assets and intellectual property rights which are critical to our business operations and explain how we will secure and protect each of these
  • Suppliers: in this subsection, we give an overview of the main suppliers we will use our what commercial terms have been negotiated with them

barber business plan template: operations section

Financial plan included in our hair salon business plan template

This section presents the expected financial performance of the hair salon over the next 3 years.

Our hair salon business plan example's financial plan is formed of the following subsections:

  • Start-up funding: in this subsection, we list the cost of each item required to launch the hair salon
  • Important assumptions: in this subsection, we explain the methodology and the main assumptions used to build the hair salon's financial forecast
  • Sales forecast: in this subsection, we detail the expected revenues and growth rate for our hair salon in the coming years
  • Cost structure: in this subsection, we list all the expenses required for our hair salon to operate smoothly
  • Projected Profit & Loss statement: in this subsection, we analyse our forecasted P&L and comment on the expected profitability of our hair salon over the next 3 years
  • Projected cash flow statement: in this subsection, we analyse the expected cash generation of the hair salon
  • Projected balance sheet: in this section we give an analysis of the liquidity and solvability implied from our balance sheet

hair salon business plan forecasted P&L

Appendices of the hair salon business plan template

This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

Our hair salon business plan template's appendices include:

  • A maturity profile chart showing the principal repayments of their loans over the next 3 years
  • A monthly cash flow forecast: showing how much cash is being generated or consumed each month over the first 3 years of operations

Hair salon business plan template: monthly cash flow forecast

Hair salon business plan template sample

Executive summary, business overview.

Jeapau Hairdressers will be a men's hairdressing salon, located in the centre of Caen. We will be offering haircuts, traditional shaves and products for hair and scalp treatment.

The salon will be run by two partners who collectively have 13 years of experience in salons, 2 of which were in managerial roles.

The two partners will be assisted by another hairdresser on a part-time basis.

Market Overview

The French Hairdressing Market

The French hairdressing market is estimated to be worth around 6 billion euros, a mature market, in which there is a concentration driven by salon chains.

The city of Caen had 108,365 local inhabitants in 2012, including 32,598 men between the ages of 20 and 64, which is our core target.

There are approximately forty hairdressing salons in Caen, the majority of which are located in the city centre.

Our salon will be located less than 200 metres from 5 other hairdressing salons, 4 of which cater to both sexes and 1 is targeted towards women.

We are confident that our male specialist positioning will enable us to differentiate ourselves from the local competition. Our prices are slightly lower than competitors, which should enable us to stand out to customers.

Financial Highlights

We expect the salon to be profitable from its second year of operation

Based on the current plan, we expect to achieve a turnover of €104,861 and an EBITDA of approximately €3,715 in year 1. 

We forecast a turnover of €114,234 and an EBITDA of €11,382 in year 3.

The objective of this business plan is to obtain bank financing of €25,000 to finance the purchase of furniture and professional equipment required to launch the business.

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Quite frankly excellent because I was able to finalize my business plan in less time than expected. This software offers a very coherent and complete approach to writing your project.

It is a very well designed software that allows you to visualise each step of your project, understand if the idea is viable or not and think about the steps needed to start your business.

The software is just impeccable. Of course, it meets the requirements of people starting a business. In addition to having a tool for putting together a proper financial forecast, there is also a tool to help write the business plan.

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hair salon owner using our business plan template

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Hair salon business plan template faq.

A hair salon business plan is a written document that sets out the commercial, operational and financial objectives of the company over the next 3 to 5 years.

It consists of two main parts:

  • A written part that presents, in detail, your jewellery business, the team, your strategy, and your medium-term objectives.
  • A financial forecast that highlights the expected profitability of the hair salon and the initial funding requirements.

The lack of business planning is one of the main reasons why more than 50% of startups fail within 5 years. If you're starting a hair salon, writing a business plan is a must-have in order to reduce the risk of failure of your project.

Business plans are also required by most lenders and investors in order to secure financing, therefore a business plan is also highly recommended if you're seeking a loan or equity investment for your hair salon.

Writing a hair salon business plan without The Business Plan Shop can be both error-prone and time-consuming - whether you're new to entrepreneurship or experienced:

  • You'll need to research the structure of a business plan, what to include in each section, and what key elements investors and lenders expect to see
  • You may encounter writer's block (especially if it's the first time you're writing a business plan for your hair salon)
  • You'll need to create a financial forecast on a spreadsheet which requires a solid understanding of accounting and financial modelling in order to be done without error
  • You'll need to spend hours formatting financial data on Excel or Sheets before it's ready to integrate into your business plan
  • Any updates to your hair salon business plan or financial forecast will need to be done manually

Luckily for you, The Business Plan Shop's online platform and hair salon business plan template guide you through every stage of writing a business plan, so that you can spend more time managing and growing your business instead.

Our editor follows a best-in-class structure for professional business plans. Each section and subsection includes examples and instructions to help you, while our business plan templates provide further inspiration if you're stuck.

Our financial forecasting software helps you create a forecast and integrate it into your business plan with ease. Anytime you update your data, your business plan automatically updates.

And with our forecasting software all the calculations are done for you, without errors.

The budget to start and run a hair salon will depend on the exact concept and location.

An independent men's hair salon doing mostly haircuts and shaves requires limited investment, whilst a large hair salon catering for both sexes would likely require substantial investment.

This is due to higher rent (in theory), more specalised equipment required and the likelihood of needing more staff.

As an example, in our hair salon business plan template the total initial funding requirement amounted to €45,000, with the founders contributing €20,000.

In order to assess the exact budget for your hair salon idea, you need to do a financial forecast using a financial projection tool such as the one we offer .

The package we offer at The Business Plan Shop goes way beyond a simple blank template you need to fill. With our platform you get:

  • Access to one of the best business plan software on the market
  • Access to our hair salon business plan template which contains a complete example of a written business plan and financial forecast to start a hair salon
  • Access to our entire business plan templates library - giving you dozens of examples to take inspiration from
  • Access to our financial planning and analysis platform so that you can track the actual performance of your business against what you had planned in your business plan and re-plan easily

But you shouldn't take our word for it: try our solution for free and make your own opinion!

The free trial enables you to try the software for free during 7 days in order to verify that it meets your requirements before buying.

Some features are limited during the free trial, the main limits are:

  • You can only create one business plan
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Appointy Blog

How To Write the Perfect Salon Business Plan for Your Salon in Just 7 Simple Steps

How to write the perfect salon business plan for a salon

The US salon industry includes more than 80,000 establishments with a combined annual revenue of about $532 billion. So opening a salon, and owning a salon business is a pretty safe bet; it’s steady and profitable . But lack of proper planning makes it difficult to juggle all the aspects of your business, starting from marketing and sales, to accounting, and whatnot. 

Here’s a quick tip! Searched all over the internet for concrete information on how to open your own salon? Confused? Don’t worry, we’ve got you covered! Check out this blog on opening your own salon business that gives you a comprehensive 10 step guide to help you get started now.

Writing a properly structured salon business plan is crucial to guarantee your salon’s success in this highly competitive market. Whether you’re wanting to secure a business loan for your salon or trying to expand or reinvent your salon business, a business plan for your salon will help you get there.

So how exactly would a business plan help you?

  • A business plan will help you to figure out what you want your salon to offer, where you aim to take your salon’s growth, what kind of people you want to cater to, and who you’re competing against . 
  • If you are looking for investment from private investors, banks, or any other lending institutions or public grants, structuring a business plan is crucial. 
  • A business plan will help boost your salon business’s productivity through improved oversight and direction, and help you make informed decisions.
  • As your salon business starts to grow and gain clientele, a well-developed business plan can help you acquire the capital needed to expand to new locations.

How to make the perfect business plan for your salon business?

Whipping up a perfect business plan can be pretty daunting because it needs to be immaculate. No worries! Here we’ve broken down the entire process into 7 easy-to-follow , foolproof steps, along with their templates, to help you create a successful salon business plan. 

  • Write a mission and vision statement
  • Create an executive summary
  • Analyze and identify your target market
  • Perform a competitor analysis
  • Write your salon’s business description
  • Make strategies for advertising and outreach marketing
  • Figure out your financial plan

Whether it’s a hairdressing salon business plan, a general beauty salon business plan, or even a  small salon business plan for opening a salon on your own from scratch, we’ve got you covered. This is a complete, comprehensive guide to help you in the process of making a business plan for a salon. It’ll give you a basic understanding of how to write a salon business plan in the easiest possible way. 

1. Write a mission and vision statement

I) mission statement .

It articulates the immediate purpose of your salon business. Under this, you can state all the short-term goals that you plan on achieving with your salon within 6 months , stretching up to a year.

Here’s how you can nail a perfect mission statement

  • Value – What is the value of your salon in the market? How can it help your clients? 
  • Inspiration – Why should people want to come to your salon?
  • Remember to make your mission statement sound plausible and reasonable . Also, make it specific and concise – clarify all your short-term goals and the timeframe within which you’re planning on achieving them. 

ii) Vision statement

 Now, where do you aim to take the salon’s growth in the next 5 years ? Well, if you’re dreaming, dream big! And you can be as ambitious as you want, the sky’s the limit. 

Setting strategies for a longer-term makes sure that you don’t stumble on the road to success. It makes the overall structure of your business stronger. It prepares you for anything that the fickle market demands from you and throws at you.

Here’s how you can write a perfect vision statement :

  • Review your long-term goals in a way that you can analyze how achieving your long-term goals could impact your business and the salon industry in general.
  • Derive how your clients could benefit from the visions that you would be implementing.
  • Your business’ end goals can drive your vision statement, For instance, if you’re planning to branch out to different locations after, say, 5 years, you can frame your vision statement in a way that states to make your salon a household name, popular in the neighboring areas and so on. 

2. Create an executive summary

After you write the mission and vision statements, you can summarize everything that you’re aiming to achieve with your salon under an Executive Summary. Whether you’re writing a business plan for a hair salon or a business plan for a beauty salon, you should be properly aware of what your intentions are with the salon. This section is the most important part of your business plan as it dictates the tone of your salon, and makes an impression. 

Remember to keep this section very brief and concise to give an overview, as you’ll be elaborating on these points in the later sections of your business plan. 

If you’re having trouble writing your salon’s executive summary, you can always write it after you’re done with all the other sections in the business plan . This will give you a better understanding of your salon business and help you succinctly put your points together to describe it. 

What can you do to write the most fitting executive summary for your salon?

  • Start by stating all the short-term goals that you plan on achieving within, say, 6 months or a year.  Remember to keep your goals realistic and feasible. 
  • Summarize your approach towards your business, to give an overview of how you will run things in your business.
  • Clearly and briefly express the value proposition of your salon, and how it would potentially position your business in your target market.

How to write your salon’s executive summary: A simple template

Divide your business summary into sections of opportunities and expectations, and put brief points in those subsections in the most convincing way. The following template can help you with this :

  • How are you trying to achieve recognition in your target market?
  • What is your salon’s tagline/motto?
  • What is your salon’s growth plan for the first 6 months after its launch?
  • Which demographic is your salon meant for?
  • How are your services aligned with your target market?
  • How many salons are there in the area of establishment of your salon?
  • What products and services do they offer?
  • What is the range of variation of their clientele?
  • What products and services is your salon offering?
  • What is the unique selling point of your business? For eg: If your salon is the only one in the area that offers holistic services with spiritual healing, then put it down as your differentiating point.
  • How are you different from your competitors? For eg: Is it the lower cost of services of your salon, or the vast range of services that make your salon stand out? 

Make sure you catch the eye of potential investors in the above section. Don’t forget to state how you can attract potential customers. 

  • What is the salon costing you? List down the projected expenses and costs that come from daily operations, rent, staff hiring, cosmetics, appliance expenditures, etc. for the first 6 months. 
  • What is the cash flow and how much profits are you bringing in for the initial 6 months? This is completely variable and the reaction of your target market to your salon decides this. So aligning your services with them is of utmost importance. 
  • Why does your salon need financing? For eg: you can convey that you’re trying to meet the anticipated growth of your salon in the market.

3. Analyze and identify your target market

Analyzing and defining a target market for your salon is very important as it goes hand in hand with your salon’s growth and outreach . 

A beauty salon can service all genders and age groups. Your target audience can include working professionals, college students and teenagers, homemakers, to-be-Brides, and even children. And each group will require different types of services.  So make sure you list down each individual section of your target market and what services they would require. 

Here’s a checklist to make sure you’re going the right way about it. 

Steps to analyze and identify your target market 

  • Find out what kind of people you think would resonate with your salon’s services the most. For example, if your salon offers low commitment (temporary) coloring services, you can get a lot of customer traffic from the millennials. 
  • As an extension to that, find out if your services are more inclined to serve a particular demographic better, or if you’re good with people of every demographic.
  • Keep up with the trends in the salon industry to know what’s hot and what’s passé.
  • Peek inside the brains of your target clients to know exactly what they want or like and tune your salon accordingly.

An easy-to-follow template to proceed with your target market analysis

  • Segregate the people in the market pool into different categories.

Do not forget these bases:

  • Personal income/occupation
  • List out the services that your salon would offer that would fit one or more of the stated categories above. 

For eg: If your salon offers Diamond Facial at $200.00, then you can list this service out as follows :

Target market checklist with service, age, gender, and income range

  • Use social media to get an understanding of the trends in the market at present. Join salon and beauty communities on Twitter, Facebook, and Reddit, and follow beauty bloggers on Youtube and Instagram. 
  • Look up the people who subscribe to or follow these beauty pages and beauty bloggers to identify which trends appeal to a certain demographic. You can tell a lot about your target market’s behavior from the posts they like and the thoughts they share in the comment section of these posts and videos.

4. Perform a competitor analysis 

With a great market demand, several strong competitors emerge. And we don’t want your salon to get lost in the sea of other salons now, do we? As it goes, keep your clients close but your competitors closer.

Figuring your competitors out gives you a necessary nudge in the right direction to take your business plan forward. It gives you an idea of what the other salons are practicing with their clients, and what gaps they’re leaving that you can fill up as you step into the salon business yourself. 

How do you analyze your competition?

  • Find out what the other salons in the area are doing successfully or poorly.
  • Get a rough idea of the cost of services that the competitor salons are offering. This helps you price the services for your salon.
  • Identify how many salons provide services that focus on a specific niche and do not serve a wide group of customers.
  • Find out the industry-specific challenges they are facing that you may also face while running your own salon.
  • Analyze what they can do differently to improve their situation, and implement it in your business mission plan to avoid facing such challenges yourself. 
  • Have your salon address these deficiencies in the market.

Follow these easy steps to perform your salon’s competitor analysis 

  • Visit your competitor salons’ websites.
  • Follow them on social media platforms (Facebook, Instagram, Linkedin) to get an idea of how much influence and reach they have. Check out who follows their social media page to get an idea of the target market as well.  
  • Sign up for any interactive sessions that these salons might conduct and check how other people respond to these sessions, to understand their grip and dominance on the market.  
  • Visit the other salons in the market as customers, to get an idea of their quality of services.

5. Write your salon’s business description

So now that you have your market and your competitors figured out, it’s time to work on your salon business . A beauty salon or a hair salon is fine, but what kind of salon do you want yours to be like? Setting a proper description for your business gives your salon a custom style and personality. 

Your business description should include an overview of the products and services that your salon would offer, and how your salon would stand out in the market. Setting a trademark vibe to your salon also helps with its brand image. 

To get started, you can answer the following questions :

  • Would you specialize in any particular service like nail art or bridal makeup? 
  • Would you want your services segmented for various types of clients?
  • What services would you want to offer in packages? 
  • Would you serve complimentary refreshments to the clients?
  • What theme are you going for with respect to interiors and ambiance (Japanese zen, tropical beach day, etc, etc)?
  • What would be your salon’s “it” factor that distinguishes it from the other salons in the area? 

Once you’re done with the salon’s description and personality, set a brand logo and a tagline to go with it. To get a professionally designed custom logo, you can always reach out to freelancers or companies that can do it for you, like 99designs . 

You can also use an online designing software like Canva to design your salon’s logo on your own. 

And that should complete the branding. 

Creating a business brand will prepare you to answer someone asking you “Why should I come to your Salon?” 

Remember to make your salon stand out, noticeable, and interesting.

6. Make strategies for advertising and outreach marketing 

Now you have to position your salon in the market in a way that makes people take an avid interest in “the new salon”. Your target audience will guide you towards the perfect approach to spread the word around about your salon. 

A simple guide to writing the marketing plan for your salon business :

  • Your salon should be Google-able. To show up in digital searches, make sure your business is listed in online directories.
  • Create a website or a mobile application for a better customer experience. 
  • It’s always better to spread out to all social media platforms to promote your business so that your customers (and other potential clients) can get to know you on a more personal level. Connect with your business community by following other small businesses in the area. Actively engage with your target market and share behind-the-scenes content (like before and after photos of clients’ haircuts) to build your credibility and cultivate brand awareness.
  • Partner up with other businesses that may share the same clientele as a salon would (like spa retreats) to offer coupons and vouchers, for outreach marketing.
  • Offer “first-service” discounts to your customers.
  • Keep service rates lower than the other salons in the area to attract clients. 
  • Once the rapport is established, and your clients trust you with the service quality, you can cut out the discounts. It is also very important that you optimize the discounts in a way that you don’t run into a complete loss, but we’ll get to that in a minute.
  • It is crucial to maintain the service quality to the highest degree after you start getting clients. Remember that your clients wear the marketing after they come out of your salon. This will definitely help you secure referrals from existing clients.

Marketing Tip! Want to pull off a great marketing campaign for your salon business but don’t know where to start? Do you feel like the marketing section in your business plan is incomplete? For more detailed marketing ideas for your salon, check out our blog on 7 hand-picked salon marketing ideas to boost your business .

7. Figure out your financial plan 

It’s time to play the number game. This is probably the trickiest part of writing a salon business plan because you have to be extremely careful while juggling your revenue and expenditure budget optimally. 

You don’t want to scare or throw off your customers by charging exorbitant prices for the services, but at the same time, you don’t want to crash and drown in debt yourself. Not to forget, cutting costs on cosmetics may affect the service quality. Cut hair, not costs!

Ergo, you need to have a proper financial plan for your salon. 

Writing a detailed financial plan will help you get a rough idea of how your salon would be progressing on a monthly/ yearly basis. Moreover, if you’re applying for a loan, your financial plan will determine your eligibility .

What can you do to create a solid financial plan for your salon?

Financial analysis of a salon business plan

  • It helps to bifurcate all the expenses into Fixed costs, and Variable costs. Then you can analyze your fixed costs and variable costs to set an optimal budget.

Fixed Costs: This section includes all the costs associated with your salon business that must be paid regardless of the customer traffic in your salon.

  • Rent or mortgage for the salon space.
  • Payroll for the employees you hire.
  • Equipment maintenance costs for hair spa and other services that are heavily equipment dependent.

Variable Costs : This section includes all the costs in your salon business that are directly associated with the customer traffic in your salon. 

  • Expenses of purchasing cosmetics and other salon supplies.
  • Electricity consumption by salon equipment. For eg: If you’re writing a hair salon business plan, make sure you include the electricity consumption by blow dryers, hair straighteners. 
  • Have a clear idea of how much discount you plan on putting on your services during the first few months of opening your salon, and for what duration you will be offering these discounts. Note that during the first few months of opening your salon, your sales are likely to be lower than your projections, and that’s completely okay.
  • Make a list of pros and cons for renting out space for your salon versus buying a place.
  • If you’re renting and wish to own the salon space, spot out a tentative date of when you’ll become capable of buying the place.
  • Figure out how many people you are going to hire in your staff, and how much salary you would be able to offer them. Note that you’ll have to improvise this according to how the customers respond to your salon.
  • Reach out to your local chamber of commerce to get more insights on funding and loans.
  • Tentatively figure out the time it will take you to break even, and start earning chunky profits.

Here’s an easy-to-follow template to proceed with your ‘financial plan’ section 

The following simple template can help you make the financial plan for your salon: 

i) Sales and revenue projections for the first five years :

Figure out how much you’ll charge for your services, and estimate how many services you may perform in a week. A periodic analysis of this over the next five years will give you the necessary projections. Put the details down in a spreadsheet to keep it organized. It also helps to collate all this information and analyze using bar graphs.

ii) Expenses’ budget :

Break down the expenditure of your salon for a given term, by referring to the “fixed and variable costs” list that you made. You can pick the term to be a month, a quarter, or a year long .

It’s a safer practice to stick to a month-long or a quarter-long term. You don’t want the budget analysis task to loom over you and become a burden. Not to forget, it keeps you in touch with the financial status of your salon business. 

iii) Estimated profit margins:

Accumulate the sales projections and budget report analysis to find out the profit for that term. Display the margins in pie charts or bar graphs for easy comprehension. 

iv) Liabilities:

Note all the losses that your salon business can possibly incur in the time period that you have defined as a term. For example, your blow dryers may stop functioning and need to be replaced.

Also include the factors that may stunt your business from growing. For example, you may be short on staff, or your nail salon is lacking an appointment scheduling and business management tool.

Various salon businesses that Appointy caters to

v) Cash flow statement:

Make a projected plan of cash flow-in and flow-out for your defined term, where you include cash flow from sources that are not directly related to your salon services or your salon business-related expenses. 

Include the cash flow from loans, loan payments, taxes, and personal funds that you used for your salon.

vi) Break-even analysis:

Predict the break-even point for the first five years of your business. Break-even is achieved when your salon business has covered all the expenses, and your sales surpass the expenditure costs. From that point on, your salon will start earning profits.

Other ways to create your financial plan :

Dealing with numbers can be tedious and scary, especially when you already have a lot of other things on your mind as a salon business owner. Moreover, documenting the financial projections yourself can be a pretty daunting task, especially because there’s no room for mistakes. 

Instead of making the document yourself, you can choose to consult professionals to help you write the perfect financial plan for your salon. 

  • Hire freelancers : You can collaborate with business plan consultants to make your financial plan. All you need to do is give them your salon’s budgetary estimates and inputs. 
  • Use Financial planning tools :  It asks you to enter all your financial information. They use built-in formulas to give you the most accurate financial statements that include all the charts and projections that an investor would expect to see in a business plan. 

Some important things to keep in mind :

  • Keep reviewing the target market, competitor analysis, and marketing and advertising strategies once every while, however frequently necessary.
  • Set realistic long-term goals that would be in sync with your current business performance. For example, you can think about branching out to two different locations after a few years. This will allow you to expand your local salon to an enterprise salon.

Go ahead with the pretty business plan 

An open sign

Executing a well-structured salon business should reap good-looking numbers. And the first step towards that is making a killer business plan for your salon.

It gives you the courage to place your faith in your business, and we don’t want you to doubt something you’re passionate about. Remember that you can convince the people in the market about all the great things your salon has to offer, only when you truly believe it yourself. 

So go on ahead, start creating your salon business plan today, and give your dreams a much-needed flight. Good luck :))

About Appointy We at Appointy, help business owners grow and run their businesses with our online scheduling software. This blog was a part of our ‘Manage your Business’ category, where we provide expert tips, and resources, or simply talk about the challenges that small and medium businesses face every day.  If you have any thoughts on this blog or would like to chat about your business struggles and achievements, let us know in the comments below.  We love a good talk!

25 comments

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The blogs are really appreciable and one can trust the knowledge and information provided in the writing.

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This blog was so helpful.. I really appreciate they way it was broken down and easy to understand.

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Thanks Brittany 🙂

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Happy to help! 🙂

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Thanks! Please subscribe to https://blog.appointy.com/ for more such information.

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The perfect salon business plan requires defining your vision, researching the market, outlining services and pricing, addressing operations and finances, and emphasizing exceptional customer service

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It is really helpful. Thank you for the content

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Thanks for your content, it is very helful.

Let this be a guide for those starting salon business. Thank you for the blog.

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Very well said! All your tips and advice is so helpful.

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Thanks, Peter! 🙂

You are welcome Netra! You have a great blog, indeed!

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Thank you for the blog. Its very helful

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Starting A Hair & Beauty Salon Business Plan (PDF)

Hair salon business plan

The hair beauty salon business is one of the most lucrative businesses you can start. A hair & beauty salon is a business that offers cosmetic services for men and women. Almost any person on earth normally regularly requires such services. This means the pool of prospects for the hair beauty salon business is huge. The services that an individual hair & beauty salon business can offer are broad and diverse. There definitely is a piece for everyone interested in starting a hair beauty salon. Operating a hair & beauty salon business is a profitable business venture. However, above everything else, the hair & beauty salon business calls for exceptional relationships and the highest standards of service. This is one of the most lucrative businesses that have undergone significant transformation over the past two decades. This industry has continued to thrive and rebound even during the recessions. This article will outline how to set up a hair and beauty salon, and the hair & beauty salon business plan – PDF, Word and Excel.

Hair and beauty salons provide income for many entrepreneurs but to set up a such a business there are some important factors you need to consider. You must determine on the size of your salon, where you will locate your business and the kind of products and services you intend to offer to your customers. All these and other various factors are affected by who your target market is and the amount of capital you want to invest in the business. As such, you must conduct proper market research and have a well thought out hair & beauty salon business plan.

Business Model

Traditionally there are several hair & beauty salon services you can offer. They are typically packaged in such a way that there are service charges. The service charge can vary depending on the certain circumstances. For instance, a customer might want their hair done but having already bought the necessary supplies themselves. That will mean they will only get to pay for the service of getting the hair done. If not, they will pay for everything in-house. Times are changing and hair beauty salons are also moving into retail. Thus money-making methods for the hair beauty salon business are evolving.

Location And Premises

The location and premises of your hair and beauty salon are important to consider when setting up your business. This is because your chosen location has a direct effect on how successful your business will be. Thus, when choosing a location for your hair and beauty salon consider where your target market is, whether there is road and foot traffic, as well as how accessible your salon will be. Think about setting up your hair and beauty salon at a popular shopping centre, a mall, or somewhere close to the CBD. It is also important to consider how the surrounding area will affect your business. You do not want to set up your hair and beauty salon in a saturated place where there are a lot of salons because that will not be good for your business. Also consider the size of your premises and make sure that your premises are large enough for your equipment and can accommodate a reasonable number of people. Parking space is also essential when considering your premises. Your customers should not have hard time when it comes to parking space if they are to come to your hair and beauty salon. Your beauty and hair salon business plan should include the costs of renting or purchasing the premises.

Permits/Licenses, Insurance & Business Bank Account

You can be operating a solo hair & beauty salon, as many do or start off as. That does not mean you should operate informally. There are doors you will open for your hair beauty salon business if you formally register it. Follow up on that by applying for a business operating license. Approach your respective municipality offices to seek guidance. When that is in order the next step should be to get insurance for your hair beauty salon business. Insurance providers will offer guidance on the specific types of insurance covers you will need. Garnish all these steps by opening a business bank account for your hair beauty salon. The principle is to separate your hair beauty salon entity from your personal finances.

Competitive Analysis

By nature, the hair & beauty salon business is quite competitive. There is typically always a high number of hair & beauty salons in any central business district. That is why it is vital that you do some research into your competitor dynamics. The best approach is to identify your top 3 notable competitors. Look into the composition of their hair beauty salon businesses. What type of services do they offer? Do they sell any products, if so, which ones? What are their service prices? What are their customers experiences like? What is their customer segmentation dynamics like? Where are they located?

These are some of the questions to guide you in researching your competitors. Go as far as researching into indirect competitors too. These can be hair & beauty salons in other locations with customers you could lure away. You are looking into all these aspects to find ways you can use to make your hair beauty salon outstanding. Always remember that there are too many options for consumers when it comes to hair beauty salons. Any slight shortcoming on your part and consumers will gladly explore other options.

Furniture & Equipment 

When it comes to a hair and beauty salon you need the right tools and equipment to be successful in the business. You must invest in good quality hair dryers, styling kits, curlers, combs, and furniture. The chairs that you may need include hair styling chairs, shampoo chairs, dryer chairs & all purpose chairs. The furniture which you purchase for your hair & beauty salon should be c omfortable, durable, and easy to use. The size of your business together with the services you intend to offer will determine the kind of furniture and equipment that you will need for your business. Your hair & beauty salon business plan should include the costs of purchasing the furniture & equipment.

Products And Services

When it comes to the products and services of your hair and beauty salon you need to first understand who your customer is. Researching your target customer will help you understand what their needs are when it comes to hair care. The hair & beauty salon business lends itself to variety in terms of the services that are on offer. For example, you can offer cutting, color, braiding, styling, pedicure, manicure, massages and skin treatments. The individual services and products will vary greatly depending on the tastes and preferences of your client at any given moment in time. There will be lots of troubleshooting along the way because you may be required to respond to requests that were not originally part of your program. The hair salon business is unique in this respect because it varies so greatly depending on the fashion trends and the responses of the clients at that particular time. It is always best to have a variety of products and services in order to increase your business’ earning potential. If you decide to sell hair or other complimentary products it is important to make sure that you source your products from the right supplier. Always purchase your products from suppliers who have good quality products. Any other additional services such as facials, make up application and skincare will help you generate more income and serve a wider customer base.  Your hair and beauty business plan should outline the products and services you will offer.

Staff & Management

If you are going to be a customer centric business, you need to have a good team. Service businesses such as a hair and beauty salon need people that know how to work with clients from all walks of life. It is best to hire experienced workers who are passionate about their jobs. Your hairdressers for example, should know how to braid, cut, apply chemical treatments, and communicate well with  customers. If you hire people with no experience, it is best to train them first before giving them to intricate tasks. It is important for your beauty & hair salon business plan to include the number of people you need to employ together with their salaries.

Some of the day to day activities of a hair and beauty salon include;

  • Shampooing, styling, colouring, hair cuts, braiding
  • Manicures and pedicures,
  • Skincare treatments, facials and make up application,
  • Advertising and marketing,

Other important issues to consider when running a hair and beauty salon are health and safety regulations. Some of the health and safety regulations include cleanliness, the products you use and the general safety of your workers and your customers. It is necessary to conduct proper research and understand the regulations that govern your industry.

Marketing Strategies

Be cognizant of the many customer segments.

In your marketing efforts you must be cognizant of the many customer segments that exist. Borne out of market research, it is prudent to appeal to the biggest segments. Customers in search of hair & beauty salon services are so diverse. There are those who are seeking to keep up with the latest trends. There are those who aim to subscribe to a certain societal class or status. There are also customers who are mostly conservative in their preferences. Do not forget there are kids on the one end and senior citizens on the other end. This is to just show you that your market targeting must be cognizant of the many available customer segments.

Build An Online Profile For Your Hair Beauty Salon

Establishing your hair beauty salon online is highly effective in pushing brand awareness. Sure enough some hair beauty salons do set up digital footprints, but not all. Just being online opens up your hair beauty salon to a limitless audience. Actively and regularly post content and buttress that with running online contests. Offering giveaways for engagement-centred online contests quickly builds your hair beauty salon’s online audience. Get involved with strategic online platforms or activities. For instance, you can offer your services for free to podcasts hosts or social media influencers. These are some the ways you can build your hair beauty salon’s online profile. This will all contribute in making your hair beauty salon business easily discoverable online.

Encourage And Reward Referrals

The hair beauty salon thrives on referrals. It is often the case that someone tries out a hair beauty salon only after someone they trust recommended it. To tap into this dynamic you have to encourage and reward referrals by your customers. You can even put together a customer loyalty programme for your hair beauty salon business. To spice up the referrals element you can offer specials such as discounts. You can also run promotions; basically anything that causes others to refer customers to your hair beauty salon business.

The demand for hair & beauty salon services is very huge and ever increasing. The increase is due to the increased urbanization and population growth. You can offer your services to both male & females, young & old. The kind of services that you provide will determine the kind of customers that you will get. So you should offer services that suit your target market. If you offer good quality services, you will get many repeat customers, as people require hair & beauty services regularly. If you are in need of a retirement plan, or you are a professional simply looking for a side business setting up a hair and beauty salon is something worth considering. You can either set up your own company and create your own brand or go the less risky route and become a franchise. This way you can benefit from a proven successful business model although it may be limiting. Whatever you decide, setting up a hair and beauty salon is a business venture worth considering. To succeed in any business make sure that you understand your target market, and that you research the industry thoroughly.

Keys To Profitability

Diversification into retail and complementary services.

Most hair beauty salons focus on just offering the applicable services. That is limited in as far as revenue and profitability is concerned. You have to diversify into product retail as well. You can do this retail in-store or via an online shop. There is a wide range of products you can sell in a hair beauty salon. The idea is to make it possible for every client to spend as much as possible. Complementary services you can add include a wide range of body treatments or therapy e.g. massages. This all aims at making your hair beauty salon a one stop shop.

Going To Digital

This refers to more than just being active online. This specifically refers to availing digital services such as online booking and online payments. This will differentiate your hair beauty salon; most hair beauty salons do not offer digital services. Streamline these services by using new age technologies such as chatbots and artificial intelligence assistants. Already the common social media platforms you use can be integrated with such innovations. The basic thrust is to offer convenience and efficiency for your clients.Once you have internalized all this information you are ready to start your hair beauty salon. Your biggest sources of valid information are already existing hair beauty salons. Closely studying them will open your eyes to tricks of the trade.

Before setting up any business you need to develop a well thought out hair & beauty salon business plan. A business plan will help you think through your financial, operational, and marketing plan as well as develop a functional strategy. With a hair and beauty business plan you can also figure out if your business will be profitable or not. You can also determine the risks associated with your business and find ways to minimise them. A beauty and hair salon business plan is a useful tool both in the short run and long run.

Pre-Written Hair & Beauty Salon Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the hair & beauty salon business, we encourage you to purchase our well-researched and comprehensive hair & beauty salon business plan. We introduced the business plans after discovering that many were venturing into the hair & beauty salon business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global hair & beauty salon business plan will make it easier for you to launch and run your hair & beauty salon business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a hair & beauty salon. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the hair & beauty salon business.

Uses of the Hair & Beauty Salon Business Plan (PDF, Word And Excel)

The salon business plan can be used for many purposes including:

  • Raising capital from investors/friends/relatives
  • Applying for a bank loan
  • Start-up guide to launch your hair & beauty salon business
  • As a hair & beauty salon business proposal
  • Assessing profitability of the hair & beauty salon business
  • Finding a business partner
  • Assessing the initial start-up costs so that you know how much to save
  • Manual for current business owners to help in business and strategy formulation

Contents of the Hair & Beauty Salon Business Plan (PDF, Word And Excel)

The business plan for hair & beauty salon includes, but not limited to:

  • Marketing Strategy
  • Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
  • Industry Analysis
  • Market Analysis
  • Risk Analysis
  • SWOT & PEST Analysis
  • Operational Requirements
  • Operational Strategy
  • Why some people in the hair & beauty salon business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your hair & beauty salon business

The hair & beauty salon business plan package consists of 4 files

  • Hair & Beauty Salon Business Plan – PDF file (Comprehensive Version – 77 Pages)
  • Hair & Beauty Salon Business Plan – Editable Word File (Comprehensive Version – 77 Pages)
  • Hair & Beauty Salon Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 43 pages)
  • Hair & Beauty Salon Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Hair & Beauty Salon Business Plan (PDF)

Hair & Beauty Salon Business Plan PDF

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The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

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I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

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I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

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Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Get the Hair & Beauty Salon Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

hair & beauty salon business proposal

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your hair & beauty salon business! Check out our collection of business plans  , and more business ideas .

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Hair Salon Business Plan: Passion for Beauty

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pdf business plan for hair salon

Hair Salon Business Plan Sample

How to Open a Salon: Step-by-Step Guide

Business Plan Template: What You Get

  • How to start a hair salon small business in easy steps
  • How to work out prices as a hairdresser and beauty artist
  • How to calculate the costs for a hair and beauty salon
  • How to apply for the SBA Microloan Program

This Business Plan Template is Suitable For:

  • Hair Salon Owner
  • Hairdresser
  • Beauty Artists

Your Benefits:

  • Free of cost: Download the business plan template for free!
  • Time-saving: Save time and open your business faster!
  • Correct data: Avoid unnecessary mistakes!

Get Your Business Up and Running

ZANDURA is the all-in-one desk to get your business up and running. Realize your dream of being an independent and self-directed hair and beauty entrepreneur and get regular input on how to move your business forward. Why are we doing this? – Because small businesses are the backbone of the American economy.

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[PDF] Business Plan for your Hair and Beauty Salon

pdf business plan for hair salon

Hair and Beauty Salon: Business Summary

The idea is on mind, owning a beauty salon business. Great! So what next? Step one is done, the objective is in mind, but in order for it to succeed, there must be a plan; a detailed Hair and Beauty Salon Business Plan which will show that the idea is going to succeed. 

➡️ Download your  Beauty Salon Business Plan PDF for free

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Do you remember the 5 w's in the " Laundry Business Plan " article? What, When, Who, When, Why, and How. Well, now we have the What.  The following question would be:

"   How? "

I already know I want to make an investment in a beauty salon, but how am I going to make this happen? With a very well-structured business plan. In that document, the entrepreneur(s) must include, well, basically everything:

Many people think that beauty salons are a cliché business, we have many of them already, but why? Because our society lives on stress, it is always stressed out and salons are convenient kinds of retreats.

They are relaxing environments providing great customer services, stressed people go there to be taken care of. That is the magic of it, beauty salons will always have demand, there is no going back on this hectic world. People love to be taken care of, women love having great colored nails done and men love having perfect hands and beards. The people that are planning on having a beauty salon know it will have a high demand, they know people will go there and that if it is well managed it will work.

But remember, always be different. There are many investments in beauty salons , make yours be worth it. People love different!

1. Describe your Company

The objective is to have an added value, to be different, to have that something that makes people think about it. Will your business atmosphere be relaxing? Will soft drinks are offered to the clients or as they enter the store or until they sit down to get the service? Will you have televisions? Separate rooms depending on the service? To develop great business strategies, it is recommended to perform a SWOT analysis to make the right decision. 

What are some of the keys to success?

Environment:

Convenience:, reputation:.

Considering the list above, it is of extreme importance to vary, not to only offer one thing, but to have a range of products and services so the clients find everything they need in the same place, in your oasis. There is no exact number of product or services a beauty salon must offer, but never ever offer least than the competitors. Again, plan plan plan! Hair and Beauty Salon Business plan , that should be your focus. 

hair and beauty salon business plan

2. Define your Target Market

Even though there are many beauty salons, there are different types depending on the target. Some for example, are for men, other for women, other for both and so on... and as I stated before, even though the idea of having a beauty salon is there, people have to do a profound analysis on the message, on what do they want to communicate to others.

WHAT DO YOU WANT FOR YOUR SALON TO SAY?"

WHAT DO YOU WANT FOR OTHERS TO SAY ABOUT YOUR SALON?"

WHAT IS THE HIDDEN MESSAGE?"

WHOM DO YOU WANT TO GIVE THE MESSAGE TO?"

Defining a target market does not only mean to think "oh ok, my beauty salon will be for both, men and women" No. It goes way beyond that. It is one of the parts of the business plan that requires the most analysis because it requires to stop everything and about the buyer's journey . People need to understand the process the buyer will go through in order to get to that precise beauty salon. And also, the key message.

"What will I do to get my customers to understand and retain the message I want to give to them?"

3. Creating a Marketing Plan

We are not done with the planing yet! We have the strategy, now lets go to marketing. In this stage people have to analyze and think which is the best marketing tool for the business. Is it people? Is it social media?

marketing plan hair and beauty business plan

For some hair and beauty salon business , when a client leaves with a new look, THAT is marketing. Some say their client wears the marketing and that is why most of a the clients of a beauty salon are referrals from existing clients. 

It is important to note that research has shown that word of mouth is the best advertising for this type of business. Although as everything, it depends on many factors.

4. Figure the Finances Out

And here we go... the tough part, excel sheets. What is the financial goal? Is it to be a profitable business in the first month? To have a break-even in the 6th month? Number time! This is where you write down everything. Fixed costs, variable costs, every single thing that will involve money.

A sales forecast is extremely important. People need to have expectations on income even if they're only approximate. This is so managers know how much are will they be able to spend during the years and what will be the project that gives the hair and beauty salon profits.

Owning a beauty salon business is a great idea because of its potential, it has potential growth (it never stops growing), it gives a great amount of profit and it will never end.

Beauty salons have been on the market since a long time ago; people always need to have their hair cut, nails done, a massage is always a good idea, etc. But it is important for people to know that getting things up and going involves planning, remember our focus? Hair and Beauty Salon Business Plan! Thinking and analyzing. If you do things the right way from the beginning, there will be fewer problems. 

Discover how to open your own beauty salon

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Hair Salon Business Plan Sample

AUG.14, 2013

Business Plan for Hair Salon Template

Hair Salon business plan for starting your own business

A hair salon is a business that never goes into loss. As long as the people are living on earth, they will need to go to hair salons and get their hair done. If you plan to start your own hair salon business, you need a business plan hair salon. The first and crucial thing is to get an idea of how the business work and what do you need to start it. You need to set up a hair salon business consultants that provides all services, and high customer satisfaction by providing excellent services.

To start a hair salon that provides an amazing atmosphere at an affordable price-value relationship, you need a business consultant service .  If you do not know how to write a hair salon business plan, we have provided a detailed business plan to start a hair salon so that you can avoid any inconvenience in making a plan for yourself. You will find many samples of a business plan for a hair salon, but you need to choose the one that suits you the best.

Also, if you’re looking for a business plan for a barber shop , a business plan for hair extensions shop , a hair removal business plan , an airbrush tanning business plan , salon and spa business plan , or even a center reiki business plan , this template can help you!

Executive Summary

2.1 the business.

The Cute Cut Hair Salon will be registered in New York, USA. The business will offer the services that will enhance our customers’ appearance and their mental relaxation. Instead of competing with other hair salons in town, we mainly focus on providing services to the customers who cannot afford those luxury salons.

2.2 Management of Hair salon

Cute Cut Hair Salon will be managed by Mike himself. To assist him, we will have three managers who will be trained for a month and a half before starting their jobs. In starting hair salon business plan, Mike will work with a small team comprising of a few hairstylists, managers, accountants, helpers and a guard. He will ensure the quality of work regularly.

2.3 Customers of Hair Salon

Customers are the backbone of every business. If you know the right audience for your business, you will be able to achieve your target. You will get the idea of how to run your business if you understand your customers. The main customers for the hair salon business consultants will be the following:

  • Women and men who are looking for hair treatments.
  • Children of age 15 and above.

Our best business plan for a hair salon includes all the hair removal treatments we mainly offer to women.

2.4 Business Target

In our business plan for hair salon pdf, we have mentioned our main goal. Our main goal is to provide high-quality services to our customers by using safe and good quality products. Our primary target is to become the popular and most loved hair salon by people within the next 3 years of our launch. We aim to recover the investment within the next two years. Our secondary target is to increase the net profit every month.

Hair Salon Bussines Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

The owner of the Cute Cut Hair Salon will be Mike James. Mike had a dream of starting his own business since he was a teenager. He wanted to set up a business that helps people of all ages.

3.2 Why the Hair Salon is being started?

When Mike was asked why he is interested in starting a hair salon business plan, he said he wanted to help people who cannot afford expensive hair treatments. Moreover, his idea of setting up a hair salon business plan is based on the fact that this kind of business never goes into loss. He believes that his business can attract more customers because his salon uses all the new techniques and equipment. With constant hard work, he can now start his hair salon and fulfil his dream.

3.3 How the Hair Salon will be started?

To start a hair salon business plan, you need the right techniques and ideas. Before starting a hair salon, you need to consider these essential steps:

Know About Industry Experience

Before entering into the world of entrepreneurship, gain some experience in the relevant industry. For example, before starting your salon, it is preferred to work in some salons. If you get your feet wet by working in other salons, you will get enough experience of how things work.

It will allow you to see how the business work daily.

Create A Business Plan

A business plan helps in planning everything for a business. It will tell you how you will earn money, what type of customers your business is trying to attract, how are you going to manage the expenses and finances, and other daily operations.

The business plan will also help you to make important decisions that will affect your business.

Set Your Budget

To get an idea of the kind of salon you want to start, you will have to set up your budget first. First, get set with your expenses and finances as hair salons expenses can vary. They depend on the location and size of your business. For example, if you are setting up a salon in your home, you will have to bear fewer expenses. But if you want to start a hair salon in a commercial area, you may end up spending thousands.

Target Customers

Determining your target customer is a vital step in starting a business. Many business decisions depend on the type of clients you want to attract. Before finalizing anything, research the area you are planning to open a salon. If that area has plenty of people who want affordable yet modern hair solutions, set up your salon accordingly.

Business Plan for Hair Salon Template

Find A Suitable Locatio n

Depending on the type of business and services you are providing, find a suitable location for your hair salon. Find a location that is centrally located, and it should also be easy for your target clients to access.

Obtain Permits

Once you have decided on the location for your salon, you will need to get a building permit, business permit, and all other legal documents.

Stock The Inventory

To run your business, you will at least need chairs, washing stations, hair tools, and other styling products. You can also connect with brands that will attract your target customers to offer their types of equipment at your hair salon.

Hire a Team

Depending on the size of your business, hire a team accordingly. It should have at least two hairstylists who can entertain the customers. The stylists should have a friendly nature and they should be experienced as well.

Hair Salon Bussines Plan - Startup Cost

To open a hair salon, you need to decide which hair services you are going to offer. The services that you plan to offer also depend on the size of your salon, and the equipment that you have. It will also determine how many hairstylists you need and the number of chairs you want in the salon.

There are several services that a hair salon offers. You need to narrow down the services you are going to focus on. This business plan for hair salon will give you a detail about the services.

Our services include the following:

Hair Styling & Haircuts

The basic service that Cute Cut hair salon is providing is hair cutting and styling. Some hairstylists can cut all types of hair for all men, women, and children. After cutting hair, drying it, and styling it is also offered in our hair salon.

Hair Coloring

Hair coloring is another service offered at Cute Cut hair salon. Before coloring the customer’s hair, our stylist discusses all the risks with the customer because coloring can sometimes go wrong.

Hair Extensions

Over recent years, the trend of hair extensions has gained popularity among people. As long hair is in fashion again, and more people are attracted to hair extension treatments. Stylists at Cute Cut Hair Salon are well-trained and experienced in hair extensions treatments.

Conditioning Treatments

These include deep conditioning treatments. The basic conditioning treatment is done to provide moisture to the hair. It adds protein to hair and makes them shiny and smooth.

The other one is specialty conditioning that is customized according to the customer’s hair.

Marketing Analysis of Hair Salon

Great service.

Great service. Good turnaround time and quality work. Thanks!

To make your hair salon business consultants successful, you need to keep an eye on the market trends as well. If you run a complete analysis of the market, you will get an idea about many things. Understanding the trends and variables will help you in making decisions for your business. The goal of this market research is to understand and get a general idea of the overall market around your salon and how you can adjust to that ecosystem.

5.1 Market Trends

Over the past five years, the hair salon industry has grown at an incredible rate. People are now more attracted to advanced hair treatments such as permanent hair, facial and massage etc. The hair salon market in 2019 was $144.48 billion. And by the end of 2026, the market is expected to grow by around $217.25 Billion.

5.2 Marketing Segmentation

If you know exactly what type of business is a hair salon, you can easily understand its market segmentation. There are many business plan examples for hair salon and each of them includes market analysis of hair salon.  To estimate the startup cost for hair salon, you need to make a complete analysis of market segmentation for it.

The most important part of any hair salon business plan is to have an idea of the expected marketing segmentation. Here is the market segmentation that will be facing our hair salon:

Hair Salon Bussines Plan - Marketing Segmentation

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5.2.1 women.

80 percent of our services will be offered to women who are interested in hair cutting and treatments. Cute Cut Hair Salon also offers skincare and nail care treatments to its customers.

Some of our services are for men as well. We have hair stylists who are experienced in cutting men’s hair.

5.2.3 Children

We have a friendly staff who treat children with great care and affection. We offer haircutting for children.

5.3 Business Target

  • Building a trustworthy relationship among customers
  • Providing high-quality services to customers
  • Arranging the best interior to impress the customers
  • Making an excellent customer care service for our loyal customers
  • Recovering the initial investment within two years of launch
  • Increase the revenue every year

5.4 Product Pricing

The prices of the services that a Cute Cut Hair Salon provide are comparable to other salon services. We will try to provide better services and customer care to our clients. We will satisfy our customers by providing exceptional services to make as much profit as possible.

Marketing Strategy

In any hair salon business plan template, the financial plan for hair salon should be well-formed. No business can grow and become successful without a marketing strategy. No matter how many excellent services you offer, if you do not have customers, it is all in vain. The more people know about your salon, the more they reach out to you.

Nowadays, the best way of marketing is social media marketing. Social platforms are strong, and they are accessible to everyone. A good thing about social media marketing is its low cost. You can reach out to millions of people with online marketing. All the hair salon business models explains the importance of social media marketing and how you can use them to reach out to people. Along with that, you need a competitive analysis to make a strategy that will make your business successful.

6.1 Competitive Analysis

  • People are not satisfied with the services provided by hair salons in that area.
  • The hair salons and spas in that area are too costly. And these services are not good enough as compared to their price.
  • Most salons do not offer basic services to people.

6.2 Our Strategy

  • We will associate our hair salon with community events and charity.
  • We will use social media platforms to advertise our hair salon.
  • We will make our online presence so that we can reach out to more and more people.
  • We will use the advertisements channels in the area to reach out to the people.

6.3 Sales Monthly

Hair Salon Bussines Plan - Sales Monthly

6.4 Sales Yearly

Hair Salon Bussines Plan - Sales Yearly

6.5 Sales Forecast

Hair Salon Bussines Plan - Unit Sales

Personnel plan

When you are starting a hair salon business plan, you need to make sure that the staff should work as a team. In the hair salon business consultants examples, you will find out that the environment of the hair salon depends on the number and type of staff which should be determined in the initial stages.

To start a hair salon business plan, list down all the expenses. It includes the rent of hair salon building, the cost of equipment and the employee’s salary.

7.1 Company Staff

Mike James will be the owner and CEO of the Cute Cut Hair Salon business plan. His team would include:

  • 1 Social Media Marketer
  • 3 Hairstylists
  • 1 Accountant

7.2 Average Salary of Employees

Financial plan.

Proper planning and execution of the finance help you to maintain a stable budget for the upcoming entire year. To start a hair salon, you need to make research on how much does it cost to open a hair salon. To run a smooth and successful hair salon, you should have a strong hair salon financial plan.

  • Money is needed to make the interior of the salon.
  • The cost of chairs, mirrors, and hair styling tools.
  • The salary of employees.
  • The cost of buying hair products.
  • Bonds, securities, registration costs, and insurance.

8.1 Important Assumptions

8.2 break-even analysis.

Hair Salon Bussines Plan - Break-even Analesis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Hair Salon Bussines Plan - Profit Monthly

8.3.2 Profit Yearly

Hair Salon Bussines Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Hair Salon Bussines Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

pdf business plan for hair salon

8.4 Projected Cash Flow

Hair Salon Bussines Plan - Project Cash Flow

8.5  Projected Balance Sheet

8.6  business ratios.

  • Is owning a hair salon profitable? If you’re wondering is owning a hair salon profitable, the answer is yes! It’s a highly profitable business with very lucrative rate of return.
  • How much does it cost to run a salon monthly? If you want to know how to start your own hair salon and how much would it cost, consult the business plan above.
  • How do I start my own hairdressing business? For starting a hair salon business plan, just follow the steps we mentioned in this template.
  • What is a business plan for a salon? A business plan just like this free business plan template for hair salon details how a hair salon business consultants is started and maintained to yield profit.

Download Business Plan for a Hair Salon Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

pdf business plan for hair salon

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Natural Hair Care Business Plan Template

Written by Dave Lavinsky

natural hair care business plan

Natural Hair Care Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their natural hair care companies. 

If you’re unfamiliar with creating a natural hair care business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a natural hair care business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your natural hair care business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a natural hair care business or grow your existing natural hair care company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your natural hair care business to improve your chances of success. Your natural hair care business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Natural Hair Care Businesses

With regards to funding, the main sources of funding for a natural hair care business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for natural hair care companies.

Finish Your Business Plan Today!

How to write a business plan for a natural hair care business.

If you want to start a natural hair care business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your natural hair care business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of natural hair care business you are running and the status. For example, are you a startup, do you have a natural hair care business that you would like to grow, or are you operating a chain of natural hair care businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

  • Give a brief overv iew of the natural hair care industry. 
  • Discuss the type of natural hair care business you are operating. 
  • Detail your direct competitors. Give an overview of your target customers. 
  • Provide a snapshot of your marketing strategy. Identify the key members of your team. 
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of natural hair care business you are operating.

For example, you m ight specialize in one of the following types of natural hair care businesses:

  • Full-service natural hair care salon : Considered to be one of the finest specialty-care types of hair salons, natural hair care salons provide consultations, and shampoo, cut and style hair using exclusively natural hair care products and tools.
  • Natural hair care consulting service: Consultants in the natural hair care industry offer examinations, prescriptions for re-growth or problem hair, as well as natural hair care recommendations.
  • Natural hair care products store: this type of natural hair care retail store is located in a shopping center or mall and provides a wide range of natural hair care products. Attendants will often offer advice regarding hair problems and offer hair solutions using natural hair tools and shampoo or conditioner products. 
  • Natural hair care products online store: Offering natural hair care products and tools via an online shop, these types of companies usually offer consumer advice in a chat session. Natural online hair care stores offer a very wide variety of products that suit this specialty market.

In addition to explaining the type of natural hair care business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, the number of product packages sold, reaching X number of clients served, etc.
  • Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the natural hair care industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the natural hair care industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your natural hair care business plan:

  • How big is the natural hair care industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your natural hair care business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your natural hair care business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals who want to use only natural products, elderly people with hair growth issues or balding problems, and those with diseases that cause hair loss.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of natural hair care business you operate. Clearly, individuals who want to use only natural hair care products would respond to different marketing promotions than those with diseases that cause hair loss , for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.

Finish Your Natural Hair Care Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r natural hair care businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes department stores, healthcare providers, or discount retail chains. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of customers do they serve?
  • What type of natural hair care business are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide discount pricing for regular customers?
  • Will you offer products or services that your competition doesn’t?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a natural hair care business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f natural hair care company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide special hair regrowth treatments, medicinal scalp massages, or special pricing for bundled services or products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your natural hair care company. Document where your company is situated and mention how the site will impact your success. For example, is your natural hair care business located in a busy retail district, a business district, a standalone office, or is it purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your natural hair care marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Advertise in local papers, radio stations and/or magazines
  • Reach out to healthcare providers and specialty dermatologists 
  • Distribute flyers at natural hair care products trade shows
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your natural hair care business, including answering calls, scheduling and providing hair therapy sessions, billing customers and managing inventory, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your natural hair care business to a new location.

Management Team

To demonstrate your natural hair care business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing natural hair care businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a natural hair care business or successfully operating as a hair stylist in a hair salon.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 25 customers per day, and/or offer online-only specials ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your natural hair care business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a natural hair care business:

  • Cost of natural hair care supplies, natural hair care tools and office supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of long-term clients you serve.

Writing a business plan for your natural hair care business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the natural hair care industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful natural hair care business.

Natural Hair Care Business Plan FAQs

What is the easiest way to complete my natural hair care business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your natural hair care business plan.

How Do You Start a Natural Hair Care Business?

Starting a natural hair care business is easy with these 14 steps:

  • Choose the Name for Your Natural Hair Care Business
  • Create Your Natural Hair Care Business Plan
  • Choose the Legal Structure for Your Natural Hair Care Business
  • Secure Startup Funding for Your Natural Hair Care Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Natural Hair Care Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Natural Hair Care Business
  • Buy or Lease the Right Natural Hair Care Business Equipment
  • Develop Your Natural Hair Care Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Natural Hair Care Business
  • Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Natural Hair Care business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan advisors can give you a winning business plan.

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