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How To Write the Perfect Salon Business Plan for Your Salon in Just 7 Simple Steps
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 :
- 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?
- 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.
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.
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
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!
Am really satisfied thank you
The blogs are really appreciable and one can trust the knowledge and information provided in the writing.
This blog was so helpful.. I really appreciate they way it was broken down and easy to understand.
Thanks Brittany 🙂
Very nice article .Thanks for sharing this great post.
Thanks a lot 🙂
Thanks this blog really helped me now I know where to start
Happy to help! 🙂
Great information. It’s really useful. Please shares these kinds of information in the future.
Thanks! Please subscribe to https://blog.appointy.com/ for more such information.
Very Informative thank you so much for this wonderful article
Interesting & informative to read, thank you for sharing this article with us. it’s really helpful to me. Can you suggest something on started a homemade business plan?
Very nice content about salon buisiness,Its very informative.
Very insightful blog post. Thanks for sharing
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
It is really helpful. Thank you for the content
Thanks for your content, it is very helful.
Let this be a guide for those starting salon business. Thank you for the blog.
Thanks for the information
Very well said! All your tips and advice is so helpful.
Thanks, Peter! 🙂
You are welcome Netra! You have a great blog, indeed!
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Hair salon business plan: a complete guide
Learn how to build a hair salon business plan, from budgeting to deciding upon your ideal client, logo, and more.
Table of contents
If you landed on this page, you are likely about to start your journey as a new hair salon owner. We welcome you, dear beauty entrepreneur, to the world of cash flow statement, market analysis, business management, and marketing strategy.
Having your own salon is a wild ride, and we at Appointible want to help you start on the right foot (aka, beauty salon business plan).
In today’s article, we will present a hair salon business plan outline, from defining your services to growing a healthy business.
We also support the idea that a beauty salon business plan should be rich but straightforward enough that salon owners can see clear, actionable steps; thus, we include things like tools and resources and leave others out, such as an executive summary.
Step 1: Define your hair salon services
The first step in building a business plan for your salon starts with defining your services. You may already have an idea of the hairstyles and services you want to offer, but it’s essential to consider some critical factors before finalizing your offerings.
Some of these factors are easy to understand, while others may require more attention, so in this section of the article, we will go through each of them.
List what you know how to do (and what you don’t)
Start by creating a list of all the hair styling services you can provide. List what hair-cutting styles and hair-care services you can perform. Consider all your certifications, work experience, and others to build your list.
Then, list the hair and beauty services that you lack the knowledge to perform. It can be that you miss the required qualifications or is just out of practice; either way, list them as things you can’t offer at your new salon.
If there are gaps in your knowledge that you want to cover, mark them distinctively, as we will come back to courses, training, and certifications later in this article.
Decide if you will hire employees.
Deciding whether you will hire employees – and how many – depends on your budget as much as on your business goals. We already discussed in Appointible how to assess if you need to hire employees for your salon business, so be sure to check that one out.
Nonetheless, a more minor salon may only require a couple of employees, such as a stylist or assistant. In contrast, a larger hair salon business may need a bigger team to manage multiple services, as well as tasks such as cleaning, reception, and marketing.
Take a peak at competitor salons.
When it comes to listing your hair salon services, your local competition is a great place to start. Start by analyzing what different hair cutting, hair care, and beauty services the competition offers, as it will give you an idea of what the local market expects from a hair salon.
This step of your beauty salon business plan should start from your immediate competition – neighborhood or city – but not leave out important salons from other parts of the state or country.
Keep up with industry trends.
It’s crucial to stay up-to-date with the latest trends in the hair industry to give your salon a competitive advantage. Following trends not only ensure that your business remains relevant but it also helps attract and retain clients.
Consider subscribing to trade magazines and blogs that cover the latest news and developments in the hair industry. This comprehensive list of beauty blogs ( https://bloggingtips.com/best-beauty-blogs/ ) from Blogging Tips gives an idea of where to start. Attending conferences, trade shows, and workshops is also an excellent way to learn from other professionals and get insights into the newest techniques, products, and services.
This knowledge can help you tailor your offerings to meet the changing demands and preferences of your clientele.
Step 2: Create a detailed financial plan
Now that you have a clear idea of your target market, what services you will provide, and a general idea of at what price point, it is time to start building a financial plan for your hair salon.
Needless to say, you will need much more than a business bank account and card to call it a day and claim you have a financial plan in place. Let’s see in this step of the article how to effectively create a solid financial plan for your hair salon business.
A: Calculate your beauty salon budget
As we discussed previously in the article top 10 habits of successful businesses , a budget is telling your money where to go instead of wondering where it went. This mentality of always being equipped with a proper budget will go a long way on your road to success.
Here are some of the budget lines you might consider when you write a business plan.
For courses and certifications
Earlier in this article, we had you write all the hair services you feel confident (or have the certification for) providing, as well as identify the gaps in your knowledge and what courses and learning paths you should take.
This is the moment of your salon business plan where your list of services and connect them to what courses and certifications you will need to invest in – whether for you or for employees.
Pro tip: plan ahead and save some recurring budget for learning for you, your stylists, and even your management team – some courses can be related to marketing, productivity, or other admin-related fields.
For a Hair salon business license
All legal business entities must have their respective licenses. Business licenses need to be paid and applied for, so the best way to deal with it is to contact a professional specialized in the beauty salon industry or approach the competent local chamber and institutions.
As licenses vary depending on location and specific services you offer, we can’t provide an exact figure. Prepare a budget line for an expense of around $500.
For Utilities and rent
Another important budget line for a hair salon business plan is the cost of utilities and rent. Rent will likely be your largest recurring expense, so it’s important to budget accordingly. You should research the average rent costs in your area and factor that into your budget, but you can expect to pay around $1000 to $2000 on rent alone.
Additionally, you’ll need to consider the cost of utilities such as electricity, water, and gas. To save on utility costs, consider investing in energy-efficient appliances and lighting and making sure your space is well-insulated. You wouldn’t believe how much these savings slowly add up in your finances.
For Hair salon equipment and supplies
You’ll need to purchase equipment such as chairs, styling stations, hair dryers, and shampoo bowls, as well as supplies such as hair products, towels, and cleaning items. Create a list of all the salon equipment and supplies you will need, and then run market research.
Ideally, run a search on wholesale beauty e-commerce, such as www.salonwholesale.com . Alternatively, network with a local community of hair stylists and salons to get an idea of there are local suppliers that offer more competitive prices.
For marketing efforts
Marketing is a crucial aspect of any successful business, including a hair salon. It’s important to allocate a budget for marketing efforts to reach prospective customers as well as retain existing clients. Think of social media, website development, ads in local outlets, etc.
To save on marketing costs, consider using free marketing channels such as social media and email marketing. You can also create your own marketing materials using free online design tools such as Canva.com or Visme.co .
For Hiring hair stylists
If you plan to hire hair stylists for your salon, you’ll need to factor in the cost of hiring and onboarding new employees. This can include expenses such as job postings, recruiting fees, and training costs.
When budgeting for hiring, consider the average salary and benefits for hair stylists in your area. You may also want to factor in the cost of providing employee benefits such as health insurance and paid time off.
To save on hiring costs, consider using free job posting websites or social media to advertise open positions. You can also offer referral bonuses to current employees to incentivize them to refer qualified candidates.
It’s important to have a clear understanding of your staffing needs and to create a hiring plan that aligns with your business goals. This will help you avoid overstaffing or understaffing your salon and ensure that you have the right team in place to provide high-quality services to your clients.
B: Calculate your rates and prices
Once you have a clear understanding of your salon’s expenses, it’s important to calculate your rates and prices in order to generate revenue and make a profit.
When setting your rates and prices, consider factors such as your expenses, your target audience, and your competitors’ pricing. You should also consider the value of your services and the quality of your customer experience.
Here are some steps you can take to calculate your rates and prices:
Run a break-even analysis: This is the point at which your salon’s revenue covers your expenses. To calculate your break-even point, divide your total expenses by the number of services you expect to provide each month.
Research your competitors’ pricing: Research the pricing of other salons in your area that offer similar services. This will give you a sense of the market rate for your services.
Set your prices: Once you’ve determined your break-even point and researched your competitors’ pricing, you can set your prices. Consider pricing your services slightly above the market rate to reflect the quality of your salon and the value of your services.
Review and adjust your pricing: It’s important to regularly review your pricing to ensure that it aligns with your expenses and your business goals. You may need to adjust your pricing over time as your expenses or market conditions change.
Step 3: Build your brand and target market
Building a strong brand is essential for any successful hair salon business. A strong brand helps to create a loyal customer base and can differentiate your salon from competitors. Here are some steps you can take to build your brand and target market.
Define a good mission statement.
A mission statement is a clear and concise statement that defines the purpose and values of your salon. It should communicate the core values of your salon and what makes it unique.
To create a good mission statement, ask yourself the following questions:
What do you want to achieve with your salon?
What values do you want to communicate to your customers?
What makes your salon unique?
Once you have answered these questions, you can use them to create a clear and concise mission statement that reflects your salon’s values and purpose.
Define your hair salon’s ideal clients.
Defining your ideal clients is an important step in building your brand and targeting your marketing efforts. Knowing your ideal clients helps you to tailor your services and marketing messages to their needs and preferences.
To define your ideal clients, consider factors such as age, gender, income level, and lifestyle. You can also consider the types of services and products that your ideal clients are likely to be interested in.
With a defined ideal client, you can create marketing messages and promotions that resonate with them and attract them to your salon.
Define your hair salon’s name.
Choosing a name for your hair salon is a vital part of brand-building – so much so that we wrote an entire article on picking a name for your hair salon . In short, your salon name should be memorable and reflect your salon’s values and purpose.
When choosing a name, consider factors such as: What do you want your salon name to communicate to your customers? Is the name easy to remember and pronounce? Is the name available as a domain name and social media handles?
We highly advise you to read through the article above, as you will surely come out with a name fit for successful businesses.
Step 4: Pick your salon location
Location is the most important aspect of any real estate deal, whether you are renting a place for your new business or buying a house.
Choosing the right location for your hair salon is crucial to the success of your business. Here are some steps to help you pick the perfect location:
Understand the local market and competition.
Researching the local market and competition will help you understand the demand for beauty services in the area and identify potential competitors.
Consider factors such as population demographics, income levels, and the proximity of other hair salons. Look for gaps in the market that your salon can fill or areas where you can differentiate yourself from the competition.
Pick a location with your target clients in mind.
Time to refer to the part of your beauty salon business plan where you defined your ideal client. Look for a location that is easily accessible and convenient for your target clients. For example, if your target clients are busy professionals, you may want to choose a location near office buildings or shopping centers.
Align with your brand.
Your salon location should align with your brand and communicate the values and personality of your salon. For example, if your salon is focused on eco-friendly and sustainable practices, you may want to choose a location that is environmentally friendly or close to parks and nature reserves.
Choose the right salon size.
Choosing the venue size is another make-or-break point when it comes to location. Consider factors such as the number of chairs you need, the size of your waiting area, and the size of your backroom for storage and supplies. A larger salon may allow you to accommodate more clients, but it may also come with higher overhead costs, as well as potentially looking “empty.”
Ultimately, choosing the right location for your salon requires careful research and consideration. Take the time to evaluate your options and choose a location that will help your salon thrive.
Step 5: Craft a marketing plan for your hair salon
A well-crafted marketing plan is essential to help you promote your hair salon, increase service sales, and keep existing customers coming back. Here are some tips to help you create an effective marketing plan.
Share your work online.
We could name this section “create a social media presence.” However, if there is one thing you should be working on systematically in social media is sharing your work. Yes, indeed, you would also benefit from a website, but social media is hands down the best place to show actual clients hair cuts and their feedback.
Share before and after photos, and short videos of the end result of a client’s hairstyle, ask for 5-star reviews, and more. Aim to share your work at least every second day on social media.
Continuously launch new promos.
Offering promotions and discounts is a great way to attract new customers and encourage existing ones to come back. Consider launching different types of promotions, such as referral discounts, seasonal discounts, or loyalty programs.
Keep your promotions fresh and exciting to encourage repeat business. For example, offer a discount on new services or products you introduce or host a giveaway for a free hair care package.
Build a text message marketing routine.
Text message marketing is an effective way to communicate with your customers and keep them informed about promotions, new services, and other updates. Collect your customers’ phone numbers and build a text message list to reach out to them.
Send regular updates to your text message list, but be sure not to overdo it. Limit the frequency of your messages and offer valuable content such as special promotions or early access to new services.
Step 6: Pick a dedicated booking system
Choosing the right booking system is essential for running a successful hair salon. So much so that we dedicated an entire step in your salon business plan to it; a reliable booking system can streamline your operations, help you manage appointments, and keep your clients happy.
Pen and paper can only do so much for your salon business, and free services, such as Google Calendar, are simply not fit for the job. Here are some of the things you will get to do once you pick an online appointment scheduling software for your hair salon:
You will receive appointments 24/7
With appointment scheduling software, you can get clients any time of the day, any day of the week. Working hours will become a thing of the past when it comes to selling your services.
You will boost your marketing strategy.
An appointment scheduling software can help you integrate your marketing efforts seamlessly. With automated emails and SMS reminders, you can promote your services, offer discounts, and send personalized messages to your clients. This way, you can stay top-of-mind with your customers and ensure that they keep coming back to your salon.
You will reduce the admin workload
Gone are the days of answering endless phone calls, jotting down appointments, and dealing with booking conflicts. With an online booking system, you can automate your scheduling process, send automatic appointment reminders, ask for confirmations, and more, freeing up time to focus on growing your business.
You will seamlessly manage your staff.
With a booking system, you can assign staff members to specific services, manage their work hours, and monitor their performance. You can also give your stylists access to their own calendars, which will allow them to see their schedules and manage their bookings.
An appointment scheduling software for salons looking to grow in 2023
Appointible is a powerful appointment scheduling software that is specifically designed for the hair and beauty industry. With Appointible, you can manage your salon’s bookings, staff schedules, and customer data all in one place. Appointible offers a range of features, including online booking, automated reminders, staff management tools, and an analytics dashboard, to help you streamline your salon’s operations and grow your business.
Create a free account with Appointible and elevate your salon business plan.
Step 7: Your salon’s growth
If you followed the previous steps correctly, your hair salon is now up and running smoothly. However, you may wonder how to keep your salon growing and thriving in the competitive market. That’s why we dedicated this section to showing you the different paths for salon growth.
Horizontal salon growth
One way to grow your salon business is through horizontal growth. This means expanding your services, hiring more stylists, opening new locations, and so on. If you plan to expand horizontally, it’s important to reflect that in your branding and salon size from the outset.
For example, if you plan to have a bigger salon and offer more services, invest in the necessary equipment and create a marketing plan to attract new customers. This way, you can make sure your salon is ready for growth when the time comes.
Vertical salon growth
Another way to grow your salon is through vertical growth. This means specializing in a select number of services and aiming to become the best in the industry. By focusing on quality over quantity, you can charge higher prices and keep payroll, supplies, and overhead costs to a minimum.
To achieve vertical growth, you need to build a strong reputation and brand identity around your specialty services. This might include targeted marketing campaigns, creating a niche social media presence, and offering exceptional customer service.
No matter which growth path you choose, it’s important to research your options, plan carefully and stay up-to-date with the regulations in your area. Continuously review your efforts and tweak your strategies as needed to ensure your salon continues to grow and succeed.
We hope this article has been helpful in guiding you through the steps of opening and growing a successful hair salon business. Remember to stay dedicated, maintain a strong brand, and always put your customers first. Good luck in your journey to success!
About the author
Professional writer and storyteller, with a deep passion for Traveling, Mental Health and Marketing.
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Free Hair and Beauty Salon Sample Business Plan PDF
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, and appendix.
One of the things that makes a salon business plan different than some other 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.
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?
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 make sure 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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How to create a hair salon business plan
- Nirit Braun
When setting up your own hair salon, one of the most important initial steps is crafting a well-thought-out and detailed business plan. Consider it your styling guide for success in the hair and beauty industry. This document isn't just about the right cut and color; it's your roadmap to achieving your salon's objectives, whether you specialize in trendy haircuts, stunning makeovers or relaxing spa treatments.
Your hair salon business plan will help you navigate the ever-evolving world of beauty, helping you start a business with confidence.
Ready to kick things off? Make a website with Wix .
Benefits of a hair salon business plan
A well-structured business plan is vital for a number of reasons. Below is a breakdown of the top benefits for you to bear in mind.
Getting investors interested: Your well-thought-out business plan isn't just for show; it's what can help you woo investors and raise money for your business . It shows them you've got a plan, clear goals and a vision for profitability. In other words, it makes them more likely to open their wallets and invest in your salon dream.
Figuring out what you need: Writing a business plan forces you to think about everything you'll need to run your salon smoothly—from supplies and equipment to staff. By the end, you'll have a good handle on your startup and operating costs.
Drawing up your game plan : Think of your business plan as your playbook for success. It lays out the steps to make your salon thrive, helps you set achievable goals and gives you a roadmap for reaching them. Plus, it's got your back when it comes to handling challenges, with strategies to tackle whatever comes your way.
Outshining the competition : While creating your plan, you'll dive deep into your salon's market and competitors. That research helps you understand your customers, spot industry trends and figure out how to stand out from the competition.
Running a smooth ship : Your business plan isn't just about the big picture—it's also about the nitty-gritty details. It helps you plan things like where your salon should be located, how it should look, what equipment to get and how to manage your staff effectively.
Playing it safe: In the financial part of your plan, you'll lay out your salon's expected income, expenses, and profits. This not only helps you see if your business will make money but also prepares you to make smart financial decisions. Plus, it's your insurance against unexpected bumps in the road.
6 steps to creating a hair salon business plan
Let's dissect the key components of a hair salon business plan:
Business and domain names
Market analysis and research
Marketing and advertising plan
01. Executive summary
The executive summary is a concise overview of your entire hair salon business plan. It provides a snapshot of your business concept, strategies, financial projections and objectives. While it appears at the beginning of the plan, it's often written after the rest of the plan is complete to ensure all crucial details are included.
To write a clear executive summary for a hair salon business be sure to introduce your hair salon, detailing the services you offer and the unique value proposition that sets you apart in the industry. Then clearly state your short-term and long-term business goals. These should be specific, measurable, achievable, relevant and time-bound (SMART).
Remember to highlight what differentiates your hair salon from competitors, whether it's your exceptional stylists, innovative services or a specific niche you cater to. Als, provide a brief overview of the target market you're aiming to serve and the market demand for your services.
Offer a glimpse of your projected financials, including expected revenue, expenses and profitability within a specified timeframe. Additionally, include how much investment you're seeking or have secured to launch and grow your hair salon business.
Example of an executive summary for a hair salon business
"EleganceTresses Salon is poised to transform the hair care experience in the city. With a mission to blend style and artistry, we offer a range of premium hairstyling and beauty services that cater to a diverse clientele. Our SMART objectives include becoming the go-to destination for modern hair transformations, increasing customer retention by 20% in the first year and expanding our salon footprint to two additional locations within three years. What sets us apart is our team of master stylists, led by industry veterans with over 15 years of combined experience. We're seeking an initial investment of $250,000 to support salon setup, staff training and marketing initiatives. Our projected revenue of $500,000 in the first year, coupled with strategic partnerships, positions EleganceTresses Salon for rapid growth and profitability."
02. Business and domain names
Naming your business is crucial, as it will become an integral part of your brand identity. A memorable and relevant name enhances brand recognition and establishes trust with your customers. A business name generator can provide inspiration for a beauty business name that resonates with your salon's concept and values.
Selecting and registering a suitable domain name is equally important. Ensure your domain name aligns with your salon's name or services as this consistency makes it easier for customers to find you online.
Opt for a domain name that is simple to spell and remember and avoid using complex words or excessive characters. As part of this, if feasible, incorporate relevant keywords in your domain name to improve search engine visibility. Finally, check domain registration platforms to confirm your chosen domain name's availability.
Learn more about registering your business , which you’ll want to do once you’ve landed on a business name and a legal structure.
03. Market analysis and research
The market analysis and research section of a business plan is essential for understanding the competitive landscape and consumer preferences in the hair salon industry. This information forms the foundation of your business strategy.
Define your target audience based on demographics, lifestyles and hair care preferences.
Evaluate competing salons' offerings, pricing, location and customer reviews to identify gaps and opportunities.
Research industry trends, emerging styles and customer demands to align your services with current market expectations.
04. Operations plan
The operations plan details the practical aspects of running your hair salon. It covers location selection, salon design, equipment procurement and staffing.
Location: Describe how you'll choose a high-traffic, accessible location that caters to your target audience.
Interior design: Highlight your salon's ambiance, decor and layout to create a welcoming and appealing environment.
Equipment: Specify the types of equipment and products you'll use to provide top-notch services.
Staffing: Detail your staffing needs, including hairstylists, receptionists and other support roles and outline their qualifications.
Operation plans example:
"Our salon will be strategically situated in a bustling shopping district, attracting both locals and tourists. The interior design will exude contemporary elegance, featuring comfortable seating, modern decor and ample natural light. We'll invest in premium hairstyling equipment and a range of high-quality products to ensure exceptional services. Our staff will consist of experienced stylists specializing in diverse hair types and styles."
05. Marketing and advertising plan
The marketing and advertising plan outlines how you'll promote your hair salon, attract customers and build brand recognition. This can include marketing campaigns tailored to different customer segments, such as bridal packages, seasonal promotions or loyalty programs. Be sure to highlight how you'll utilize social media, a business website and online advertising to engage with customers and showcase your services.
Example of a marketing plan
"Our marketing strategy entails a mix of social media engagement and influencer partnerships. We'll leverage platforms like Instagram and Pinterest to showcase before-and-after transformations, share hairstyling tips and engage with our audience. Collaborating with local boutiques for joint promotions will enhance our visibility while offering special packages for bridal parties will establish us as a bridal hair expert."
Need some help building up your brand? Get inspiration from these beauty logo ideas and use Wix’s free logo maker to create your own.
06. Financial plan
The financial plan section of your business plan provides insights into the financial aspects of your hair salon business. It will need to include a rundown of your initial expenses such as salon setup, equipment purchase, interior decor and initial marketing efforts.
After this, you'll need to estimate projected revenue based on services offered, pricing and anticipated customer volume. At the same time, document ongoing costs, including rent, utilities, staffing salaries, product replenishment and marketing expenditures.
Then lay out the initial investment you'll need and potential sources of funding, such as personal savings, loans or investors.
It’s also important to project when your hair salon is expected to become profitable based on revenue growth and expense management.
Example of a financial plan
"Startup costs are estimated at $120,000, covering salon setup, equipment and marketing campaigns. We project an annual revenue of $300,000 within the first year, with a steady increase of 15% in subsequent years. Operating expenses, including rent, staff salaries and product inventory, are projected at $180,000 annually. We anticipate becoming profitable by the end of Year 2."
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A Step-by-Step Guide to Opening a Hair Salon
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If you’re interested in starting a new business, specifically opening a salon, you’re in good company: The beauty industry is worth over $56 billion annually, and hair care is the largest segment with 86,000 locations nationwide. Luckily, there's rarely a shortage of people looking to change or upgrade their hair — even in economic recessions — and there's often a waiting market for anyone interested in opening a salon.
Although salon life might seem glamorous to clients, a salon is like any other small business. It takes long hours, hard work, savvy, research and sometimes even luck. The best way to reduce the variables that can lead to failure is to better understand the economics of opening a salon, from the startup costs to the standards for pricing.
The most common starting point is to have experience as a hairdresser or to otherwise work in the salon industry, which often goes hand-in-hand with a passion for the business. Both Shana Dyer, who co-owns Harlow Salon in Nashville, Tennessee, and Tiffanie Barackman, who owns Aria Salon in Canton, Michigan, worked in the industry for years before striking out on their own. They share their insights below.
How Much Do You Need?
A 6-step guide to opening a salon
Some of the steps to opening a salon are similar to those you'd take when starting any small business, but there are some salon-specific steps you'll have to take as well.
1. Write a business plan
Most good small-business owners start by writing a business plan , and the beauty business is no exception. In fact, Dyer cites this as the most important piece of advice she gives to new business owners.
“You want to have a business plan and a budget,” Dyer says. “If you don’t know what that is, you don’t need to own a business. Take a class. Hire a financial planner. Definitely hire an attorney.”
A well-rounded business plan includes your customer segments, acquisition channels (such as social media), supplier plan, necessary business relationships, revenue streams, cost structure and key resources.
In other words, it involves a lot more than simply designing your salon and getting people in the chair. You'll also want to make sure you do plenty of market research to make sure there's actually a need for another salon in your area and that you'll be able to drum up enough business to sustain it.
Though the business model canvas has been popularized for lean startups in the tech space, it can be applied to opening a variety of business structures, including opening a hair salon.
Opening a Hair Salon Checklist
In your business plan, make sure you include a checklist that you can refer to as you go through the other steps of opening a salon. You want to include the little — and big — things that you might forget while working to open the salon.
You can start off the checklist with something you've already done, writing a business plan:
Write a business plan.
Choose your legal structure.
Register the business and name.
Choose a location.
Get a license to operate.
Purchase all of the equipment you need.
Purchase the salon furniture; remember you'll need sinks and chairs.
Hire your stylists.
Train your new hires.
Start booking and marketing.
2. Determine the costs
A cornerstone of your business plan is figuring out how much money you need to run your business — keeping in mind that between the upfront costs and the operating costs, it might be at least a few months, sometimes more than a year, before you turn a profit.
This could involve visiting a loan officer at a local bank or credit union for a small-business loan, as well as meeting with a business accountant who can help you plan for and file taxes related to your new endeavor.
The major tenets of opening a salon will be operating costs, including rent, training, insurance, inventory and what you’ll charge for your services — which you’ll balance against one another in order to turn a profit. The operating costs are mostly up to you and will depend on the size and scope of your vision, but how you price your products and services is, to some extent, predetermined.
“Product pricing is universal — it's a 50% markup of the wholesale price,” says Dyer. “You can come into my salon or the salon down the street and the same bottle of shampoo will be the same price. That's just standard in the industry of cosmetology.
“Pricing for services is also fairly universal,” she adds. “It depends on the part of town you are in, your city in general, and the surrounding salons that are about the same level as yours. There’s a salon a couple of miles from us that is about the size of ours and they offer similar services, so we pretty much base our prices off of what they and the surrounding salons charge.
"About every six months, we call around to the different businesses and ask for their basic prices. We also make sure and raise our prices about once a year. Usually, about 5% seems to cover all of the inflation that we suffer as a business.”
3. Insure your salon
Insurance is legally required for most businesses — though you’ll often be glad to have it anyway. Dyer cited business insurance as one of the unexpected costs of starting up, if only because of the myriad forms it takes — your employees, your clients, your space, yourself and so on. Dyer and her partner ended up treasuring her insurance plan when she found out her accountant was embezzling funds from the salon.
“We thought we were going to lose our business,” she says. “Luckily, we had a portion of our insurance that was called 'dishonorable employee insurance' and it covered things like theft from your employees. I had no idea we had it but I was so thankful we did.”
There are other bureaucratic hoops to jump through, including:
Getting a business license.
Securing licenses for all personal appearance workers (though exact regulations vary by state; check with the Division of Occupational and Professional Licensing).
Planning for a health and fire marshal inspection.
Paying Common Area Maintenance, or CAM, charges, which is an additional rent paid by tenants to commercial property landlords on top of the base rent.
New business owners should ask fellow business owners or members of their local government in their city or county what’s expected when starting a new business when opening a salon.
4. Choose a location and hire staff
Many salons start as offshoots of other salons, as former employees move on to their own endeavors and take their clients with them, if they can. A major part of choosing the salon location is to make sure it’s centrally located, where lots of foot traffic will pass by or where there’s sufficient parking. Another aspect is remaining close to where old customers will want to get their hair cut or colored.
“A large portion of salon owners are hairdressers, and when they go out on their own they want to maintain all of their clients,” says Barackman, who worked in the salon business for over 20 years before moving on to renting her own suite and then opening her own salon.
Dyer agrees: “We made sure that, once we decided Music Row was going to be our 'spot,' any time we upgraded or moved into larger business locations we stayed within one mile of where we were. One mile seems to be the standard for how far people will follow you if you are near your old location.”
Just as it’s important to hold out for the right space, hiring the right staff can make or break your business — so don’t make a rash decision about who to hire just to fill seats.
“The people you bring on are going to set the tone for what the salon’s reputation will be,” says Barackman. “I put ads on Craigslist and LinkedIn, but you rely a lot on word-of-mouth and friends of friends because hairdressers all know each other — so I wasn’t afraid to tap into that network to find people who fit my vision.
“When I first opened, I worried that I wouldn’t find people to fit my six stations, and now I’m thinking, ‘How am I going to add two more stations?’ because I’ve got more people who want to come. So you have to operate in that gap a little bit between getting people to see your vision and knowing they might not get it until they come aboard — so don’t panic and know that, long term, you have to make the right choices,” she says.
5. Market your salon
Once you have your business plan taken care of, your salon insured and your location set, it's time to get some customers. Start by tapping your old clients to let them know that you've started your own salon, and having your hairdressers do the same. For any clients that choose to move with you, give them extra appreciation and encourage them to refer their friends.
In addition to bringing old clients over, it’s important to find ways to bring in new customers and retain them. In this era, that means creating a website and communicating through social media for marketing.
“Social media is huge — we’ve done a lot with Facebook, a lot with Instagram, a lot with Twitter,” says Barackman. “That’s where people go now. We’re absolutely pulling in new business from Facebook alone, overwhelmingly so. People I know loved seeing the process of what I was doing — I posted photos of building the business online — and they shared that with their friends.”
Local advertising is another cost, but one Barackman considers well spent.
“I have the business in a brochure for an upcoming baseball tournament. I’ve put out advertisements in the months leading up to high school prom that we have specials,” says Barackman. “I’m no marketing genius, and if I had the money I’d hire a marketing specialist, but I’m tapping into things like that.”
6. Scale carefully
If you're opening a salon, you probably have a grand vision for how it will look, operate and feel to customers. Chances are, though, that your vision will have a big price tag — one that you won’t necessarily be able to afford in your first days.
There are some major startup costs to estimate, which namely include rent and equipment.
“Equipment is super expensive,” says Dyer. “You don’t have to have the best of everything when you first start. We bought our equipment off of Craigslist from other salons that were closing and got it for over half price. We upgraded as we needed to, but in the beginning, it's not worth it to spend $10,000 on equipment when you really need to put a sign on the outside of your building.”
That process — start small, become big — works for salon space and products as well.
“We went from a 400-square-foot salon to a 5,000-square-foot space in a repurposed church with 10 employees in a decade. We used to have one or two of each color in stock and order when necessary; now we have 10 of each color we use because we’re busy and need all of those colors rotating in and out,” says Dyer.
There are ways to make your salon inviting and homey without breaking the bank. Try keeping the place tidy, offering hand and scalp massages and playing music throughout the space — most streaming services have low-cost options that will keep your place humming ad-free. A complimentary glass of wine or a cup of coffee might not cost you much, but it can make a big difference to the customer.
Even if you find yourself coming in under budget and are tempted to spend on high-end equipment, don’t forget about some of the hidden costs of a salon.
“A lot of little things that you don’t think about add up,” says Barackman “You have to have service menus printed up because people want to know how much your services cost. And then you have business cards — and when you hire new people, you need to buy them business cards.
"And then there’s upping your inventory for when new clients come in — although one thing I’ve noticed is that since I’ve opened a salon, distributors have made an effort to help get me products or equipment at low cost, or at no cost, now that I place big orders. So once you’re in, you’re in.”
The bottom line
Anyone who's become a return customer at a salon can likely attest to appreciating the sense of community that the salon cultivates, as well as the quality of the haircut they receive.
In order to ensure that both of these important aspects of the business are kept up, be sure to create and follow your business plan, make sure you’re properly licensed and insured, well outfitted and located (without overspending your budget) and marketing yourself to the fullest. The rest — mainly, the quality salon services — is up to you.
This article originally appeared on JustBusiness, a subsidiary of NerdWallet.
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Hair Salon Business Plan
Cutting and styling hair is an art not many are adept with.
After all, it takes more than artistic talent to give cuts that suit different hair. And if you are someone who has this talent, then you might have thought of having your hair salon business.
Having your hair salon business is possible and just requires two things for success. That is, skills to make people’s hair look pretty and a hair salon business plan .
Here are a few facts about the hair salon industry and steps to setting up your business. But at the same time, the prospect of having a business is overwhelming to many of us. You don’t need to worry, though!
The spa and salon market stood at an impressive value of $138.9 billion in 2020, and as people continue to return to salons after the pandemic, the market’s value is expected to rise at a higher rate.
The rise in personal care and beauty spending is one of the major reasons for the growth of the hair salon industry.
Apart from beauty purposes, hair salon businesses have also seen a rise due to the increasing demand for hair care services.
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Things to Consider Before Writing a Hair Salon Business Plan
Find your usp.
A hair salon gives several services including cutting, coloring, styling, and hair care. Apart from that, your customer service, prices, and a lot of other things make your services a package deal for your customers.
Build your client base
Although this is an ongoing process, getting a head start with building your client base is essential. Know what sources you can use to reach out to your clients, what makes them pick a hair salon service, what makes them come back, and so on.
Find the ideal location
The ideal business location will be both accessible and functional. A good location for a hair salon would be either located in a busy neighborhood or a place that people frequent between home and work.
Design your salon for both form and function
Although, it is advisable to hire a designer to design your salon in a way that is functional and also looks appealing. But cash crunches, startup costs, and whatnot might leave lesser scope for a designer in your budget.
Writing Your Business Plan
If you are planning to start a new hair salon business, the first thing you will need is a business plan. Use our sample hair salon business plan created using upmetrics business plan software to start writing your business plan in no time.
Before you start writing a business plan for your new hair salon business, spend as much time as you can reading through some samples of hair and beauty salon business plans .
Reading some sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.
We have created this sample hair salon business plan for you to get a good idea about how perfect a hair salon business plan should look and what details you will need to include in your stunning business plan.
Hair Salon Business Plan Outline
This is the standard hair salon business plan outline which will cover all important sections that you should include in your business plan.
- Business Overview
- Our Services
- Goals and Objectives
- Keys to Success
- Katarzyna Doe
- Legal Business Description
- Hiring Plan
- Products & Services
- Market Trends
- Target Market
- Market Analysis
- Customer Profile
- Competitive Summary
- Competitive Advantage
- Sales & Marketing Strategy
- Sources of Income
- Sales Forecast
- Pricing Strategy
- Publicity and Advertising Strategy
- Personnel Plan
- Startup Costs
- Important Assumptions
- Profit & Loss Projections
- Balance Sheet Projections
- Cashflow Statement
- Business Ratios
After getting started with Upmetrics , you can copy this hair salon business plan example into your business plan and modify the required information and download your hair salon business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.
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Download a sample hair salon business plan
Need help writing your business plan from scratch? Here you go; download our free hair salon business plan pdf to start.
It’s a modern business plan template specifically designed for your hair salon business. Use the example business plan as a guide for writing your own.
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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
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How to write a hairdressing salon business plan
- A salon business plan provides a roadmap for your team and makes outside funding more accessible
- Clarify whether your products and services are direct revenue streams or if you’re largely earning from booth rentals
- Perform a thorough market analysis and financial analysis for accurate insight into your potential growth
No matter what people say, it’s never “just hair.” U.S. consumers spend over $46 billion at hair salons every year. Quality hair care keeps people looking and feeling good, so it’s no surprise clients go back to their favorite hairstylists time and time again. Managing your own salon can certainly be a consistent and profitable career—but to maximize your revenue, you need a hairdressing salon business plan to guide your growth.
Writing a business plan can benefit any salon owner . Whether you’re established in the beauty industry or opening a new salon , a comprehensive plan acts as a roadmap for your growth. Your salon business plan also guides your decisions so you can meet business goals . And if you’re seeking business loans or investors, having a solid business plan is a must.
Below are the six sections that every hairdresser should include in their salon business plan outline .
1. Executive summary
An executive summary is a brief, one-page introduction to your company and what makes it unique. Placed at the beginning of your hair salon business plan , its purpose is to create a great first impression so your audience is compelled to read through to the end.
This section should provide high-level details about your hair salon , services, marketing strategy , and team. Put your best foot forward by highlighting facts that prove your potential to succeed. For example, if you’re the only salon offering keratin treatments and perms in your market, these are important facts to include. Many business owners include their mission statements and goals in this section too.
While executive summaries are the first thing a reader will see, it’s best to write this part of your plan last. That way, you can easily pick out and highlight the most impressive details from your business plan.
2. Business description
Writing a business description for your salon business plan gives you the space to expand on what makes your company great. Start with an introduction to your hairdressing salon, mentioning relevant details about your location and any specialized services you’ll offer. . Then, dive into the following specific details.
When writing your business plan, you need to show that you—and your team, if you have one— know how to run a successful salon. Introduce your owner-operators and describe their expertise. Professional certifications, business degrees, past experience, and awards or recognition can all build investor, lender, and team confidence in your leadership.
If you have any managers in addition to the salon owner or owners , explain who or what processes they manage, and highlight their experience and certifications. Otherwise, simply explain the primary roles of each owner-operator.
To help your readers understand how you operate, clarify your business structure—for example, if your salon is an LLC or an S corporation. If you’re seeking outside funding, this gives your audience insight into your tax obligations and liabilities.
You can also specify when your business was founded and your registered mailing address (especially important if you have more than one location).
Hairdressing salon business plans must explain how you’re recruiting and hiring professional hairstylists for your salon. Even if you’re initially working as the sole hairdresser in your salon, eventually you need to hire more hair professionals to take on new clients . Also, if you plan to offer a wider range of beauty salon services —like adding skincare services, or a nail salon or day spa c omponent—you’ll need technicians.
Your plan should clarify if you’ll follow a commission-based model or a booth rental model. Paying commission ( usually about 45% , often with a base rate) will tell your investors that you manage payroll, sales, and marketing for all salons and stylists, but earn from all services performed.
Renting out booths (usually around $400 per month) tells investors your beauty professionals are independent contractors who market themselves, and much of your income comes from their rent. Clarify if any employees, like receptionists, will be paid on an hourly or salary basis.
Your business description is the perfect place to include a value proposition, which explains what gives you a competitive advantage , or why clients choose your salon over others. If you’re currently in business, chatting with existing clients can help you identify what makes you stand out, whether it’s your world-class stylists, affordable pricing , luxurious client experience, or something else.
3. Hair salon services and products
In this section, you’ll explain exactly what your salon offers. For each service, write a description that highlights base prices, time estimates, and what’s included—for example, a consultation and styling for a balayage, or shampoo and blowout for a haircut. Then, list out the products you sell and their prices, along with their profit margins.
If your salon follows a booth rental model, clarify which services you’ll personally perform. If rentals are a key income stream for your business, explain your pricing , rental options, and contract terms.
4. Market analysis
To run a successful salon, you need to understand the market beyond your business. Do thorough market research to provide insights about:
- Market trends : Explain how demand is changing across hairdressing services in your area and industry.
- Client demographics : Explain who the average hair salon client is and what services and products they’re buying.
- Your competitors: Identify your competitors and their target audiences .
Once you’ve explained the broader market, put the focus back on your business. Define your unique target market and explain how you’ll overcome any challenging market conditions.
5. Marketing strategy
Getting the word out about your small business is essential to your growth. You don’t need to write a full-blown salon marketing plan for this section, but your lenders or investors should understand the specific strategies you’ll use to reach your target market . Offer an overview of how you’ll use each of your marketing channels, like social media , email, or search engines. For example, you could explain that you’ll claim your Yelp Business Page to manage reviews and run Yelp ads to reach more clients who are searching for the services you offer.
Remember to include your marketing and advertising budget here as well. You can also include the returns you expect to see from marketing activities as metrics for your marketing and sales team to track, or to reassure lenders and investors that your spending won’t go to waste.
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6. Financial plan
One of the most important sections of your hairdressing salon business plan is your financial plan . Budgeting and planning for your financial future is key for business growth (and not going into the red). Here’s what you need to include in this final section.
If you’re opening a new business , you’ll have a significant amount of upfront costs just to provide your services. Break down all of your expected startup expenses, which may include the cost of business registration, business licenses , furniture, inventory, and equipment like blow dryers and curling irons.
Once you’ve officially launched, you’ll still have ongoing expenses to keep your salon running. Break down your recurring expenses, like rent, wages, contractor payments, and advertising costs. Also, include how much you expect to spend each month to restock products or replenish supplies like toners and shampoos.
Including a budget for miscellaneous expenses will help you prepare for the inevitable unexpected costs that come up.
Finally, work with an accountant or financial analyst to create realistic five-year financial projections for your salon. Lenders and investors look particularly close to this section, as it tells them how fast you can grow and how likely your business is to survive. Mock up a balance sheet , cash flow statement , and other projections for this section, with your market research and current sales in mind.
Create a salon business plan that guides your growth
Writing a hairdressing salon business plan can help you (and your team) make better decisions and obtain outside funding. The most effective business plans are thorough documents that explain what you do and how you’ll grow. With more insight into your business, marketing plan , and financial future, you can reach your goals with greater ease. As you start entering your next stage of growth, read our tips on how to expand your business .
The information above is provided for educational and informational purposes only. It is not intended to be a substitute for professional advice and may not be suitable for your circumstances. Unless stated otherwise, references to third-party links, services, or products do not constitute endorsement by Yelp.
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JD enjoys teaching people how to use ZoomShift to save time spent on scheduling. He’s curious, likes learning new things everyday and playing the guitar (although it’s a work in progress).
- Jul 09, 2021
How To Create A Hair Salon Business Plan in 2023 (with Template)
Starting any kind of business comes with inherent risks.
Many fail in the first year due to mismanagement of finances, lack of brand awareness, or for shifts in the market – much like we saw in 2020.
If you’re going to pick a business to get into, it’s never a bad time to open a hair salon . In 2018, hair salons brought in over 46 billion dollars in revenue in the United States. That’s a little less than the entire GDP for the country of Costa Rica.
Needless to say, there’s a lot of opportunity in the hair salon industry. If you’re ready to grab your piece of that 46 billion dollar pie, then you’re going to need a business plan.
Here’s a complete guide to creating a business plan for your new hair salon:
Step-By-Step Instructions to Writing Your Hair Salon Business Plan
A business plan is a crucial step to starting any business. Creating one is an opportunity to put your thoughts, ideas, and goals down on paper and mold them into something more tangible.
Creating a business plan might feel like a daunting task, but it doesn’t have to be if you break it down into smaller steps like these:
1. Write your executive summary
The executive summary is the first page of your business plan and acts as a first impression. Get it right, and people will dig in with enthusiasm. Get it wrong, and you may not get a fighting chance.
At its core, the executive summary elaborates on the focus of your business. It tries to sum everything in a page or less. At a minimum, it’ll include:
- Mission statement
- Ownership structure
- Product and service descriptions
- Business plan summary
In plain terms, it says what you hope to achieve, who’s involved, what makes your salon unique, and what value you’ll bring to your customers.
2. Company description
It may feel like you’re repeating yourself from here on out, and you will be to a degree, but it’ll be to bring context to all the details that will follow. You’ll be reiterating the points from your executive summary, but further elaborate to give the reader the juicy details.
With the company description, you’re wanting to provide a snapshot of what people would see if they walked into your salon. You’ll offer up some crucial details like the registered name of the business, history of the company, name of key employees, and your location. In addition, you’ll answer some important questions such as:
- Are you explicitly cutting hair? Or are you offering hairstyling services as well?
- How about conditioning treatments, blowouts, and hair extensions?
- Will you stop at head hair, or will you offer waxing, eyelash, and eyebrow treatments as well?
- How about products? Will you sell your styling creams, sprays, and shampoo?
Again, the more detail here, the better because you’re trying to sell an image of the salon at its best.
3. Business goals
Every company, big or small, should have goals. Ideally, they should be specific goals. SMART goals even. SMART stands for specific, measurable, attainable, relevant, and time-bound. A SMART goal for opening and running a hair salon might be:
“ Host a grand opening event over the July 4th weekend that adds 150 people to our email newsletter.”
That’s a short-term goal that’s specific and measurable because you’re measuring email captures. It’s time-bound because of the July 4th date, and it’s relevant and attainable because it helps with marketing efforts and isn’t a farfetched number like 10,000 sign-ups on an open weekend.
In the business goals section, you’ll want to spell out what you’d like to accomplish in the near term and in the long term as well. If you’re seeking investor capital or outside funding, you’ll also explain what exactly you need the money for and how and when you’ll plan to recuperate those funds. This could include expanding locations or service offerings, for example.
4. Business management structure
This one is a bit more straightforward because it’s black and white. Your business management structure is something you’ll likely set and forget since it won’t change much. Here, you’ll add a breakdown of who the owners are, what experience they have in the industry, and what legal structure you’ve adopted (LLC, S Corp, etc.).
You’ll also want to outline how many employees you’ll have to start, ownership percentages, and the duties and responsibilities of each role. Getting this sorted out is not only good for investors, but for you as well since it’s possible you’ll have disputes over these decisions later.
5. Product and service offering
In the previous steps, you’ve alluded to what makes you unique and what services you’ll offer, but now it’s time to get even more detailed. It’s not enough to say you’ll offer blowouts, hair coloring, and sell hair products. Tons of salons do that. You want to impress people with how you’ll differentiate yourself.
To illustrate the point, here are some ways a salon could differentiate itself:
- Using all homemade organic products that you can’t find anywhere else
- Bringing in wine from a local vineyard to offer for free to salon patrons
- Offering same-day in-home appointments
- Providing free headshots with all appointments
The possibilities are truly endless. Here’s also where you’ll get into pricing, profit margins, and how you’ll receive and possibly distribute the products you’ll use at your salon.
6. Marketing plan
With a new salon, you’ve got to get the word out as soon as possible to bring customers in. Your marketing plan will explain exactly how you’ll build brand awareness. It may even talk about your grand opening.
You’ll need a section on how you’ll develop customer loyalty as well. Will you leverage mailing lists? How about frequent buyer incentives? The more concrete your marketing plan, the more confidence you’ll gain from investors, banks, and employees.
7. Business financials
A good hair salon business plan will provide all the numbers you need to ensure you have the runway to launch and sustain operations while bringing in new customers. It’ll show investors the starting financial health of your business and how you plan to reinvest funds back into the business and repay debts.
Here, you’ll include net profit margins, current liquidity, and accounts receivable turnover ratios . Those specifically tell investors how much profit you’ll keep, how easily you’ll be able to repay debts, and how often you’ll collect on your own debts.
8. Future financial projections
Your goals would ideally be aggressive, but realistic. While you may not create more business plans for your salon, you’ll want to keep up with creating monthly and quarterly financial reports.
They’ll outline expenses, revenue, profit, and provide confidence to your leaders and your investors that things are on track.
Last, but not least, you’ll include an appendix section for the stuff that doesn’t fit elsewhere. For a salon, this could mean licenses, permit history, contracts, leases, resumes for key employees, credit history, and anything else that comes to mind.
Starting a salon is an exciting adventure that’ll be filled with both ups and downs. The ups will come and go, but being prepared for the down moments is important. That’s where a business plan comes in handy.
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How to Start a Hair Salon Business Now in 2022 (Comprehensive Guide)
Starting a Hair Salon Business Today
Starting a hair salon business is both exciting and scary. It’s exciting to finally have the opportunity to pursue your dream of owning a hair salon where you can share your knowledge and skills with others. At the same time, it can be daunting when faced with all of the decisions that need to be made to start your own salon in order for your hair salon business to thrive.
This article will provide you with a comprehensive guide on how to start a hair salon business from creating a plan, establishing a budget, financing your new venture, deciding how you want structure your company, getting appropriate insurance coverage, marketing and advertising. We explain how to find success as an owner/operator or partner in the best way possible!
Start a Hair Salon Business Plan
what should a hair salon business plan include.
This is one of the first questions you will need to ask yourself as you begin this process. A typical hair salon business plan includes how much money your new salon needs, how that money will be spent and how it can be acquired.
You may want to include information about how many employees are needed for day-to-day operations, what supplies are necessary, how long it would take for profits to break even or cash flow positive and any other important aspects related to starting a successful hair salon business.
One helpful thing when creating your own hair salon business plan is going through a sample template so that you know what key points must be included. There are also websites available which allow users access to complete hair salon business plan templates.
Why do You Need a Beauty Salon Business Plan?
A hair salon business plan is a roadmap that guides how you will start, run and grow your new company. A well-made plan can help you to avoid common pitfalls of starting a hair salon like spending too much money or hiring the wrong people for key positions in your organization.
Make Sure You Have the Necessary Funds To Start a Hair Salon Business
This may seem obvious but it’s important when thinking about how to start a hair salon. The general rule is that whatever amount of funds need to be raised should equal around six months worth of income from projected sales figures. What this means is if your projections show an average monthly revenue stream of $20,000 then you’ll want at least $120,000 deposited into savings before launching
Establish a Hair Salon Business Start-up Budget
how to create a hair salon budget.
The first step is determining how much capital you need to fund the opening phase of your hair salon business. This includes rental space; professional equipment such as styling stations, chairs or sinks; consumables like towels or shampoo; and the initial outlay for inventory.
Once you have determined how much capital is needed, determine how it can best be financed. This includes using savings or other assets that could generate income (such as an investment account), crowdfunding through Kiva lenders, credit cards with favorable interest rates, debt financing such as small business loans from a bank or peer-to-peer loan sites like Lending Club or Prosper Marketplace.
Create an outline of how much revenue is predicted for each month during the first year in operation and how those monthly projections would compare to initial expenditures needed over that same time period (i.e., rent/mortgage payment). The difference between revenues and expenditures should show a profit at the end of one year.
Find a way to Finance your Hair Salon
To be successful in business, you need to be prepared and informed with your loan options. Here are some of your options for financing your startup costs for opening a hair salon business:
- SBA or Small Business Administration Financing for Hair Salons
- You Can Ask Friends and Family to Invest in Your Hair Salon
- Use Credit Cards for Short Term Financial Help – Credit cards can help you when you are in a financial crisis. They provide cash quickly and easily. But, you must pay the credit card back as soon as you get more money to make this option work best.
- Get a bank business loan for your hair salon.
What if you Have No Money?
How to open a hair salon with no money.
To open a salon on the cheap, one should create a detailed business plan before making any investments into equipment and take precautions against losing money through operating expenses.
One of the most important factors to consider is how much you’re willing to spend on startup costs. This includes borrowing salon equipment, self-funding, getting venture capital from investors, or applying for an SBA backed loan.
Establish Credit for Your Hair Salon Business
Open a business bank account & credit card.
When you establish your credit, it will help your hair salon business to get approved for a loan or line of credit. You can also apply for trade lines with suppliers and other vendors because they may trust how much money is going into the company!
As a hair salon owner, it is possible to get credit for your business.
First, you will need to determine how much you want to borrow. When you establish your credit with the bank or lender, they will give you an idea of how much capital is needed for your company. Have collateral ready! Lenders may require a personal guarantee to offer credit.
Find a Good Hair Salon Location
Choosing the right location for your hair salon will be a huge factor in how successful it is. Consider where most of your clients live and work to determine how convenient it would be for them to visit you on a regular basis. If they are across town from you, they probably won’t patronize your business regularly.
Design Your Hair Salon Layout
In order to make your hair salon layout as efficient and profitable as possible, you’ll need to take into account how the space will be used. For example:
- Will employees serve customers from behind a counter or at walk up stations?
- Is there room for an island station in between shampoo chairs? Should this area double as a makeup station?
- How should shampoo chairs be arranged to maximize efficiency and how many stations will you need in order to accommodate the number of stylists on staff?
- Will there be room for an area where hair products are displayed or sold, such as at a salon reception desk or counter near the front entrance? Can it double as a space for styling or at-home hair care demonstrations?
You’ll also need to consider how the salon layout will affect your ability to maintain an organized and efficient work flow. For example:
- Will you be able to clean up quickly after shampooing clients in one area, while stylists are still working on customers in another area?
- Will you be able to use one station for drying and styling while other stations are being used for hair washing or cutting, in order to avoid bottlenecks during peak hours? Is there room near the front entrance of your salon where stylists can set up their own chair so they don’t have to walk too far to get back to the shampoo section of your salon layout?
- Will there be enough room for an office, storage space and a changing area near the front entrance of your hair salon business or in another out-of-the way location?
- Can you find stylists who will agree on how best to lay out their stations so they can work as efficiently and profitably as possible?
Finally, how the hair salon layout is designed will be different for salons that offer only services such as haircuts, shampooing and blow-outs versus those with a full range of beauty or hair care products. For example:
- Will you have enough room so your stylists can offer both hair care services and sell products?
- Do you have room near each shampoo station so that employees can also sell haircare product samples, such as a range of shampoos and conditioners from different brands or a few hair products such as styling gels, hairsprays and mousse?
- Should your salon layout include a space where customers can view the latest makeup trends or colors on mannequins before having their makeover right there in the salon chair, for example by mounting up to four tables next to each other so that two stylists can work on customers at the same time?
These are all the things you need to think about and questions to ask when designing your hair salon layout.
Design Ideas for Small Hair Salons
Often, if you are just starting out, you will have a smaller sized hair salon that you will eventually grow. Here are some tips on how to best design your space for a smaller hair salon.
Hair Salon Reception Area Design & Layout
What is the purpose of your hair salon reception area? Is it to provide a waiting area for clients, or an opportunity for customers who may not be ready to get their haircut at that moment to browse through magazines and enjoy some coffee? Whatever you choose, make sure there are clear indications
Hair Styling Station Area Layout
What do you need in a hair styling station for your stylists to be as productive and happy as possible? The answer is not so simple, but there are some common features found among successful salon owners. Study your competitors and implement your own solution to the styling station area layout.
Hair Salon Backwash Area Design
What is the most important thing for your hair salon backwash area? Is it how many shampoo bowls you have, or how relaxing and serene of an environment it is? You must make sure to include enough sinks at various heights and in different shapes and sizes.
Hair Salon Equipment and Tools
You will need equipment like chairs, counters and mirrors. You’ll also need things like hair dryers, shampoo bowls and towel racks.
By far the most expensive equipment you’ll need is going to be your furniture and fixtures.
Look for used equipment or find discounted pricing by shopping at a beauty supply store rather than buying new.
If you are willing to search locally on Craigslist or ask friends who live in other cities, you may be able to find some nicer salon furniture that is cheaper because it’s not in demand.
Protect Your Equipment & Tools with the Proper Insurance
Protect your equipment and tools with the proper lability insurance. When you buy or rent salon furniture, be sure to get a policy that includes all of your business’ furnishings so you can replace them quickly if necessary.
You should also cover expensive hair dryers and other electrical appliances because they are prone to malfunctioning due to how much they are used.
This would be a good time to research general liability insurance options for your equipment and tools.
Decide on your Hair Salon’s Legal Business Structure
If you start a new business, you have to decide which type of company to make. You can choose from five types of business structures: Sole Proprietorship, Partnership, Limited Liability Company, S Corporation, or C Corporation.
An LLC business legal structure setup for example protects you from being sued personally. It is flexible and offers more flexibility for taxes.
No matter what business structure you choose, check out these different business formation services that can help you put your legal business structure in place.
Register Your New Hair Salon Business
obtain required hair salon business licenses and permits.
You will also need to register your new hair salon business with the state. Check out how you can do this online, via mail, or in person.
In some states (such as California), it is necessary to obtain a separate permit for each different kind of service that you offer at your hair salon. If you want to open a hair salon in California, for example, you will need a cosmetology license.
In states like New York, the requirements are more straightforward. The state requires a license for hairstylists and barbers (as well as hair salon owners).
Set up business accounting for your Hair Salon Business
Accounting for your hair salon business includes keeping records of your customer invoices and ensuring that you are charging customers fairly.
You must ensure that invoices are accurate and to the penny. This is not an opportunity for overcharging or rounding up to a higher price than what was actually charged. It’s also important to ensure validity of any sales tax deductions or how to handle the payment of taxes.
Managing cash in accordance with accounting principles
Ensuring that your business’s bank account is properly set up and reconciled on a regular basis. Bank reconciliations are important for any company, but hair salon businesses need them more often because they deal in such high volumes of cash transactions.
Protect yourself and your employees with the right insurance
Not only do you need to protect your business and tools with the right insurance but you need to protect yourself and your employees.
Get educated on what types of insurance policies you will need as far as hair salon insurance goes. There’s general liability insurance, professional liability insurance , product liability insurance and many other types of commercial insurances to consider.
Don’t forget how important it is to have worker’s compensation insurance on your employees. Hire a commercial insurance specialist who can help you get the right coverage for your hair salon and provide peace of mind that everything will be protected should something go wrong.
Day to Day Operations of Your Hair Salon
get a good salon software.
Trial Versum Salon Software for Free
Versum Salon Software is an easy-to-use, powerful salon management software for hair salons. It lets you manage your appointment schedule and online booking, send out newsletters to clients, track inventory, create invoices and purchase orders with ease.
There’s also Salon Iris software to check out. Salon Iris is another choice for hair salon software that can be used. It’s web-based so you don’t need to download it and store it locally.
A third choice to investigate is Booker’s hair salon software which takes care of your booking, billing, payment, management. It has a user-friendly interface for you and your clients.
Marketing & Advertising
Now it’s time to create your salon marketing plan for your salon brand and offer something that is not offered by your competitors. Differentiate yourself from the pack.
Start with a catchy slogan or catchphrase for your salon and then build on it to come up with an effective name, logo design, advertising taglines and other marketing materials.
Be thoughtful how you will advertise your new hair salon business – where to advertise, how to create an online marketing strategy and how you will utilize social media.
Consider creating a video that highlights the services your hair salon business offers. It might be beneficial to use this in ads as well as on Youtube or other video platforms.
Come up with a Good Name for your New Hair Salon
You’ll want a name that’s catchy, original and memorable.
Think about how your salon will be different from what is already out there in the marketplace. Use words to differentiate yourself–make it unique!
Some hair salons might use their owner’s names as part of their brand: Sylvia’s Salon. Others might choose to have a theme–like Hair by the Sea.
Consider how your name will look on signs and how it sounds in people’s mouths!
Don’t use words or names that are trademarked, copyrighted or subject to any other legal claim.
If you’re not original enough to come up with a good salon name, there are plenty of naming services that will help you out. Peruse over 2700 salon names here: https://thesalonbusiness.com/salon-names/
Find an Available Website Domain Name
Find an available website domain name for your hair salon business. The best way to approach finding one that is appropriate is to brainstorm ideas and create possible lists of names, then go through them alphabetically or search the listings in order to narrow down your choices.
After you have selected a domain name, go to Godaddy or NameCheap to register your domain.
Have more than one option available in case your first choice is already taken.
Create Your Hair Salon Logo
A good Logo is one way your customers identify with your business, and it will be a mark of your own personal style.
The logo can be in any shape. There are many online programs that enable you to create logos for free or at minimal cost. One such program is called Logomakr.
Logomakr offers a free and simple interface to create logos using shapes, fonts and colors
Your hair salon will have its own unique identity by choosing which font or shape you want for your business name. It’s wise to keep it simple and consistent to help with brand recognition.
Create a Hair Salon Service Menu
Hair salon service menu is a list of services you provide to your customers.
A hair salon service includes haircut, blow dry or style and other services such as color/highlights, perm and retail products like shampoos, conditioners etc.
Create the hair salon service menu by listing all the available options for your clients to choose from.
Include the prices in your hair salon service menu as well, to avoid misunderstanding and confusion with customers.
Pricing Your Services
Wondering what your hair salon services prices should be? Well a typical cut can cost anywhere from $25-$75. A typical color can cost from $150 to over $600.
The more expensive the service, the higher the price tag should be. However, hair salon prices depend on how much experience you have and how long you want your customer to wait for their appointment (cut versus style).
Something else to think about with pricing is should you have different pricing for walk in customers vs. people who book appointments ahead of time? Why or why not?
Define who your Ideal Salon Client Is
Take a look at the qualities of good clients before opening your hair salon.
One of the most important decisions you make as an owner is who will be allowed in your salon. When selecting customers, think about what type of clientele you want to attract and whether it meshes with the makeup of your area.
Choosing which clientele you cater to will influence your business model.
Being aware of your target market is a vital consideration when determining the overall salon vision.
Study Your Competition
Make sure to research how other salons are marketing themselves and what their prices are so you can stand out.
If you find a salon that does something really well, go to their social media and see how they market themselves.
It’s not about trying to change your pricing or copying how other salons do things – it is about finding what sets you apart from the rest of the pack while still appealing to clients.
Develop a Hair Salon Website
A hair salon website is one of the most important marketing tools for a new business. It’s how potential customers will find you online and get to know your salon before they ever walk through the door in person.
Create an Email List
A hair salon website should include a “newsletter” or “email list sign-up” form in order to build your email subscriber list. This is how you will stay connected with potential and current customers, sharing new promotions, products, services and more directly to their inboxes each time it’s updated!
Setup your Hair Salon’s Social Media Accounts
Don’t forget what the kids are using these days! You should also get on social media platforms for your hair salon on Facebook, Twitter and Instagram to get instant customer feedback.
Use this information to improve how you communicate with them through social networking channels (what they want from your business) as well as other marketing strategies like SEO or search engine optimization.
Get Business Cards and Printed Marketing Material for your Hair Salon
Designate marketing materials like business cards, flyers and brochures with your logo so that you can give them to people who come in contact with your business. This is how they’ll remember how great it was when they visited your salon!
Grow and Scale Your Hair Salon
Hair Salons grow when they are getting more customers, selling more services per visit, adding other services, and making money in other ways. Each of these things can be achieved through the right strategy and focus.
Grow the business by hiring more stylists, giving them shift work or share scheduling so hair stylists have time to grow their skills. Invest in training for current staff as well – how new products are used, how social media is beneficial etc.
Frequently Asked Questions
What licenses do i need to open a salon.
A hair salon business needs to have a cosmetologist’s license. You can contact your Department of Professions and Occupations for more information on how to get this done, what qualifications you need, and how long it will take.
How much investment is required to open a hair salon?
The minimum capital needed varies depending on how much equipment or inventory you will need. You should also consider how much money you will spend on start up costs such as rent, advertisements and liability insurance.
Starting up a salon business can take place in many ways. Some stylists buy out their current salon, while others start from the ground-up by renting space and buying equipment. One of the most important steps is to find necessary licenses for your state and make sure your salon is properly insured.
Be sure to include marketing, advertising and social media into your budget because they are crucial aspects of any modern business.
Is a hair salon a profitable business?
A hair salon should be a highly profitable business because the overhead costs are usually low and you can get away with higher margins for your products. In order to make sure that this is true, create a financial forecast early on in the process. This will help you understand how much money needs to come into your business every day so that it remains profitable.
How do I get funding to open a hair salon?
One of the best ways to get funding for your hair salon business is through a traditional bank loan.
How much money do hair salon owners make?
The average hair salon owner can expect to make a median income of $44,000 per year. The top 25% of salon owners earn more than $68,600 annually, some making upwards of $120,000 and the bottom 25% earns less than $30,400 each year.
Is buying a hair salon a good investment?
Hair salon businesses can be a good choice for those who want to make money on the side and are willing to work hard. Prices of hair salons vary greatly, so how much you pay will depend on where you live in relation to potential competition.
With all the information you’ve learned today, it is time to take action. The first step in any successful business venture is research and planning. Research this site for other resources that will help you start up your own hair salon business.
From figuring out how much money you need, to what equipment and tools are needed, we have covered everything here for a budding entrepreneur like yourself who wants to open their own hair salon – even with no money or credit.
We’ve also included tips on finding the perfect location near potential customers and designing ideas for small salons too. If you’re new at starting businesses then don’t worry because we have articles about legal structures of different types of businesses from a sole proprietorship (where one person owns the company) to S-corporations and how they affect your taxes.
Now it’s time to take more action and read the additional resources available on our site which can help guide you in different step along the way of opening your very own business.
Chris is a busy mom of two, who loves to tinker with computers and read in her free time. Her knowledge of what it takes to start up a business especially businesses that operate on the internet has helped many people from around the world. Chris often shares her experience as an online entrepreneur and business coach, speaking at events all over about how she created multiple successful businesses and profitable websites. She also offers advice on how people can build their own business website or blog for very little money, while still maintaining quality content.
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How To Write A Successful Salon Business Plan
by Scott Farmer | Jan 2, 2023 | Barber Shop , Hair Salon Business , Hair Salon Marketing , Hair Salon Owner , Hair Salons , Hairstylist | 0 comments
Table of Contents
Why Is A Hair Salon Business Plan Important?
Starting a new salon business can be exciting and rewarding, but it’s essential to understand that success doesn’t come automatically. Creating a comprehensive business plan is the key to setting up your salon for long-term success.
A solid business plan must include detailed information about every aspect of running a successful salon, from the mission statement and initial budgeting to marketing and hiring employees.
Having all of this mapped out ahead of time will help you make informed decisions when starting up and lay the foundation for future growth within the industry.
So why is crafting an effective business plan so important? Keep reading to learn more.
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The Importance Of Planning Ahead
A salon business plan is vital to starting and running a successful salon.
It will help you identify your target market demographics, set business goals and objectives, and determine the best way to reach those goals.
Steps For Creating A Beauty Salon Business Plan
1. Market Analysis – A thorough market analysis is crucial to understanding the salon’s ideal market and determining how best to reach them. Research into local demographics, competition, industry trends , potential new customers, and suppliers should be conducted.
2. Salon Services – It is essential to identify the services that will be offered by both new and existing stylists so that all resources can be allocated accordingly. Consider pricing strategies, marketing tactics, and customer loyalty programs, and discuss any particular features or benefits each service may provide.
3. Financial Plan – An effective salon business plan needs a comprehensive financial plan that outlines expected startup costs, income projections based on beauty services provided, and detailed budget forecasting for the near future.
4. Marketing Strategy – A well-thought-out marketing plan is key to getting the salon’s name out there and driving target customers in. This includes online, print, and outdoor advertising; social media marketing; word-of-mouth promotion; and other forms of customer engagement .
5. Risk Management – Risk management is an essential aspect of any business plan, particularly for a Salon Business Plan that involves multiple people, products, and services. Identify potential risks associated with each service provided, such as liability issues or stylist availability, and create contingency plans to address them when needed.
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Why Market Research Is Important
A thorough market analysis is crucial for any business, and a salon is no exception.
Conducting market research allows you to understand the local community demographics, competition, salon trends , and potential customers.
It also helps you determine the best way to reach your target market.
Here are some specific things to consider when conducting market research for a salon:
- Local Demographics : Understanding the age, gender, income, and interests of the people living in the area where your salon is located can help you tailor your services and marketing efforts to appeal to them.
- Competition : It’s essential to research the other salons in the area and understand their strengths and weaknesses. This will allow you to differentiate your salon and position it in a way that sets it apart from the competition.
- Industry Trends : Keeping up with the latest trends in the salon industry can help you stay relevant and attract customers. This can include things like the latest hair and makeup styles and new products and technologies.
- Potential Customers : Who are your ideal customers? What do they value in a salon experience? Understanding the needs and preferences of your target market will help you tailor your services and marketing efforts to appeal to them.
- Suppliers : Researching potential suppliers can help you get the best prices on the products and equipment you need to run your salon. It’s also a good idea to build relationships with multiple suppliers if one becomes unavailable.
By conducting a thorough market analysis, you’ll be able to make informed decisions about your salon and position it for success.
Hair Salon Services
Salon services refer to the beauty and grooming services at a salon or spa. These services may include haircuts, hair styling , hair coloring, hair treatments, facials, massages, manicures, pedicures, waxing, and makeup application.
When identifying the services that will be offered at a salon, it is essential to consider the skills and expertise of the stylists, as well as the demand for the services in the local market.
Pricing strategies for salon services should consider the service’s cost, the time it takes to perform the service, and the target market for the service. It may be helpful to offer a range of prices for different services to appeal to a wide range of customers.
Marketing tactics for salon services may include a social media presence, email marketing, and special promotions or discounts. Customer loyalty programs, such as offering discounts or rewards for repeat business, can help to encourage customer retention.
In addition to traditional salon services, some salons may offer additional features or benefits, such as a relaxing atmosphere, top-of-the-line products, or natural or organic products. These features or benefits may differentiate the salon from its competitors and help to attract and retain customers.
Salon Financial Projections
A financial plan is an essential component of a salon business plan as it outlines the expected costs and income for the business.
The financial plan should include a start-up budget outlining all costs associated with launching the salon, such as rent, equipment, supplies, marketing, and employee expenses.
Income projections should be based on the salon services offered and the anticipated demand for those services.
It may be helpful to research the local market and competitive analysis to understand the pricing for similar services and determine the potential for revenue growth.
The financial plan should also include a detailed budget forecast for the near future, including projected expenses and revenue projections for each month or quarter.
This can help the business owners to make informed decisions about financial management and to identify any potential economic challenges or opportunities.
In addition to the start-up costs and budget forecast , the financial plan should include a profit and loss statement, a cash flow statement, and a balance sheet.
These financial statements provide a snapshot of the financial health of the salon and can help the business owner to track the performance of the business over time.
Salon Marketing Strategy
A marketing strategy is a plan for promoting and selling the salon’s services to potential customers. A well-crafted marketing strategy can help increase salon awareness and drive customer traffic.
Several marketing tactics can be used to promote a salon, including online, print, and outdoor advertising, social media marketing, word-of-mouth promotion, and customer engagement activities.
Online marketing tactics may include creating a website for the salon and promoting the salon’s services through social media platforms, such as Facebook, Instagram, and Twitter.
Online marketing can be a cost-effective way to reach a large audience and can be easily tracked and measured through analytics tools.
Print and outdoor advertising, such as ads in local newspapers or billboards, can also promote the salon. These forms of advertising can be targeted to specific geographic areas and can be an excellent way to reach potential customers who may not be active on social media.
Word-of-mouth promotion can be a powerful marketing tool for a salon, as people are more likely to trust recommendations from friends and family. Encouraging customer loyalty and satisfaction can help to generate positive word-of-mouth for the salon.
Customer engagement activities, such as offering promotions or hosting events, can help build a sense of community around the salon and can effectively attract and retain customers.
Overall, it is essential to create a marketing strategy that is tailored to the salon’s specific needs and goals and utilizes a mix of marketing tactics to reach the target audience.
Risk Management When Planning A Hair Salon Business
Risk management identifies, assesses, and prioritizes risks that may impact a business. In the context of the salon business , potential risks may include liability issues, stylist availability, and the use of products or services that may harm customers.
To effectively manage risks in a salon , it is essential to identify the potential risks associated with each service provided and to create contingency plans to address them when needed. For example, suppose a stylist is unexpectedly unavailable to perform a service.
In that case, the salon may need a backup plan to ensure that the customer’s appointment can still be fulfilled.
Liability issues can also pose a risk for a salon business. To mitigate this risk, the salon may need to carry liability insurance and ensure that all stylists are adequately trained and certified.
Having clear policies and procedures in place to handle customer complaints or concerns may also be helpful.
Using products or services that may harm customers is another potential risk for a salon business. To mitigate this risk, the salon should carefully research and select safe and effective products and follow all applicable laws and regulations related to the use of these products.
Overall, risk management is an essential aspect of a salon business plan, as it helps to ensure that the business is prepared to handle potential challenges and to protect the health and safety of customers and employees.
What should be included in a salon business plan?
1. Business Overview : This section outlines who owns the salon; their experience in cosmetology; their vision for the salon's success; the legal entity formed (sole proprietorship/partnership/LLC); the list of essential licenses needed, and any other associated businesses such as makeup services or tanning beds 2. Market Analysis & Target Customer Profile : Here, you can identify trends within the beauty industry that could impact your company's performance; analyze competitors' strengths & weaknesses; develop an ideal customer profile (age range, interests & lifestyle habits) 3. Salon Products & Services : Include pricing models and descriptions of all available services offered at your salon 4. Location Selection : Discuss factors like accessibility to customers in targeted demographic areas & visibility of storefront 5. Operating Hours & Staffing Requirements : Outline hours of operation along with staff qualifications needed, such as certifications/licenses 6. Financial Plan : Create projected income statements covering 3-5 years, including anticipated expenses; cash flow statement covering 12 months highlighting the amount spent on labor costs vs. materials/products used for each service provided
Hair Salon Business Strategy
Creating a Salon Business Plan is like building the foundation for success!
When you take time to conduct market research, generate financial models, craft marketing campaigns, and manage risk effectively – your business will be ready to reach new heights.
Embrace this five-step plan as a keystone in achieving future prosperity.
Writing A Good Business Plan For A Hair Salon
Writing a salon business plan is essential in starting your own business. By including these five steps, you can set yourself up for success and avoid common pitfalls that new businesses face.
So take the time to research, create a solid team, craft a detailed budget, create realistic salon goals, and market your business effectively.
With a well-thought-out plan in place, you’ll be on your way to opening a successful hair salon.
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Salon Business Plan Template & Guide
Written by Dave Lavinsky
Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their salons. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a salon business plan template step-by-step so you can create your plan today.
Our salon business plan template works for all types of salons, including:
- Hair or Beauty Salons: which most commonly include hair-cutting, coloring and styling hair and other beauty services
- Nail Salons: which typically include nail treatments, manicures and pedicures
- Hair Removal Salons: commonly include waxing and other forms of hair removal
- Skin Care Salons: commonly include facials and other skin care services
- Tanning Salons: include tanning services
- Day Spa Salons: often include massages, aromatherapy and other services
- Combination Salons: include services from more than one of the above salon types
This being said, we also do have specific pages for information on our hair salon business plan , nail salon business plan , and beauty salon business plan .
Download our Salon Business Plan Template here
What Is a Business Plan?
A business plan provides a snapshot of your salon as it stands today, and lays out your growth plan for the next five years. It explains your business’ goals and your strategy 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 salon or grow your existing salon you need a business plan. A salon business plan will help you raise funding, if needed, and plan out the growth of your salon in order to improve your chances of achieving success. Your salon business plan is a living document that should be updated annually as your company grows and changes.
Source of Funding for Salons
With regards to funding, the main sources of funding for a salon are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan 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 confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a salon business.
The second most common form of funding for a salon is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a salon. They might consider funding a chain of salons, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.
Salon Business Plan Template
Your salon business plan should include 10 sections as follows:
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 type of salon you are operating and the status; for example, are you a startup, do you have a beauty salon with existing customers and revenues that you would like to grow, or are you operating a chain of salons.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the salon industry. Discuss the type of salon you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your salon’s marketing plan. Identify your management team. And offer an overview of your financial plan.
In your company analysis, you will detail the type of salon you are operating.
For example, you might operate one of the following types:
- Beauty Salon
- Hair Removal Salon
- Skin Care Salon
- Tanning Salon
- Combination of the above types
In addition to explaining the type of salon you operate, the Company Analysis section of your salon business plan needs to provide background on your business.
Include answers to question such as:
- When and why did you start your salon business?
- What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry analysis, you need to provide an overview of the salon business.
While this may seem unnecessary, it serves multiple purposes.
First, researching the salon industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards new hair services, nail services, spa services or beauty services, it would be helpful to ensure your plan included offering such services.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the salon industry research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your salon business plan:
- How big is the beauty salon market and/or hair salon 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 market for your salon. You can extrapolate such as figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section of your salon plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of salon you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than teens.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most salons primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
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Your competitive analysis should identify your indirect and direct competitors and then focus on the latter.
Direct competitors are other salons.
Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes products they can purchase from supermarkets and other retailers both offline and online. You need to mention such competition to show you understand that not everyone in your target market frequents a salon on a regular basis or at all.
With regards to direct competition, you want to detail the other salons with which you compete. Most likely, your direct competitors will be salons located close to your location.
For each such competitor, provide an overview of their businesses 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 services do they offer?
- What products do they offer?
- 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 stand outside your competitors’ locations and ask customers as they leave 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 superior salon services?
- Will you provide superior salon products?
- Will you provide salon services that your competitors don’t offer?
- Will you make it easier or faster for customers to acquire your products?
- 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.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a salon business plan, your marketing plan should include the following:
Product : in the product section you should reiterate the type of salon that you documented in your Company Analysis. Then, detail the specific services you will be offering.
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.
Place : Place refers to the location of your salon. Document your location and mention how the location will impact whether you achieve success. For example, is your beauty salon located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.
Choosing a location for your salon is an extremely important decision. With the right location, the salon will at least launch on the right foot. With the wrong location, customers may never arrive in the first place. Consider the following two factors with regards to your location:
1. Proximity to Customer Base
To decide on a good location from a customer perspective, you must first know who your target customers are (stay-at-home moms, working women, teens, families) as discussed above. Once you’re clear on this, you can begin scouting locations. Being close to your customer base could mean being close to their homes, but could also mean being near their workplaces or en route between the two. Being close in distance is important, but being accessible (e.g., adequate parking) is even more important.
Hopefully you’ll be in your location for many years. That means that you will be forming a long-term relationship, even a partnership, with your landlord. The landlord should be invested in the success of your business and understand that what is good for your salon is also good for them. During initial discussions with landlords, look out if you sense that they are focused solely on rules, restrictions and regulations, rather on what you want to do. If the landlord seems intent on starting an antagonistic relationship, think twice before signing the lease. When you choose your location, you are choosing a landlord so make sure you’ll be able to get along with them and have the leeway you need to run a successful salon.
Promotions : the final part of your salon marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Making your salon’s front store extra appealing to attract passing customers
- Developing and marketing your website
- Social media marketing (advertising and organic posts)
- Advertising in local papers and magazines
- Reaching out to local bloggers and websites
- Partnerships with local organizations
- Local radio advertising
- Develop marketing materials
Also think about your salon’s Unique Selling Proposition (USP), which should answer why customers should choose you over other salons. Make sure your USP is reflected in your marketing.
Here are some additional marketing tips if you are launching a new salon:
Promote the Opening of Your Salon
To be sure of a well-attended launch event, start promoting early, with attractive signage outside your salon. This should be geared towards your target demographic – women for most salons. Setting up an employee on the street outside or nearby to hand out flyers in the days leading up to and during the opening event can increase visibility, especially if this is an uncommon occurrence in your neighborhood. The point is to stand out and to reach a large portion of your intended customer market with the message that your opening event will be something they don’t want to miss.
Plan a Great Spa or Salon Deal to Increase Profits
When opening, develop a clear deal or incentive for customers to attend and to try your services during the opening day, week, or month. Rather than offering discounts on different products, freebies, two-for-ones and other offers, try to find one nice offer and promote it heavily so that it is memorable both to those who hear about it beforehand and to those who take advantage of it. For example, a free pedicure with purchase of a manicure if you are a nail salon. The offer does not have to break the bank – it could be a small free gift with any service of $50 or more.
Plan for Smooth Salon Operations
To show off your salon at its best, having a pristine and spotless store is a minimal requirement. The operations have to be smooth as clockwork on opening day, especially if appointments and walk-ins make it a very busy first day or week. Customers who use your services during this time can become ambassadors to your customer target group for you, speaking of how wonderful the experience was, or they can spread the word about how they waited forever without hearing what was happening, how salon staff were sloppy or rude, and how they would never return. You need the early adopters on your side, so make sure the human, computer, and mechanical systems are all ready to work perfectly from day one and that you have contingency plans for unforeseen problems.
While the earlier sections of your salon 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 salon such as serving customers, procuring supplies, salon equipment, keeping the salon clean, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.
To demonstrate your salon’s ability to succeed as a business, 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 the salon business. 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 like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in salons and/or successfully running retail and small businesses.
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 sheet and cash flow statements. This section of plan should also include startup costs and whether or not you are seeking funding.
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues 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 serve 20 customers per day or 50? Will your average price point be $50 or $100? 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 : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your salon, that 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 bank writes you a check for $100.000, 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 make sure 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. For example, let’s say a company approached you with a massive $100,000 salon contract to provide salon services to their employees. Let’s assume the contract would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a salon:
- Location build-out including design fees, construction, etc.
- Cost of equipment like chairs, washing equipment, etc.
- Payroll or salaries paid to staff
- Business insurance
- Licenses and permits
- Legal expenses
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 salon’s design blueprint or location lease.
Summary & Keys to Salon Success
Putting together a business plan for your salon is a worthwhile endeavor. If you follow the salon business plan template above, by the time you are done, you will truly be an expert. You will really understand the salon business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful beauty salon or hair salon.
Finally, in addition to completing your salon business plan template, be sure to pay special attention to the following factors that often define success for salon businesses:
- Make sure all of your clients are thrilled with your services
- Keep your salon clean at all times
- Provide excellent communications with current and prospective clients
- Embrace new technology, particularly social media to engage your clients and get them to return to your salon
- Focus on growing revenues, but also on profits, by keeping a close eye on costs
- Hire the right team, train them well and treat them well so their performance is strong and they are loyal to your business
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Salon Business Plan FAQs
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How to create a business plan for a hair salon
Crops, cuts, dyes, and highlights—hair salons are bustling microcosms of personal change and amusing exchanges. If you’re thinking about starting a salon of your own, the best place to start is with a solid business plan.
The question is: what goes into a business plan for a hair salon?
The short answer: A mission statement, a financial plan, and all the details about how the actual business will run. Of course, if you’re looking to write a hair salon business plan, you need more than the short answer. That’s why we’ve outlined every aspect of building a successful salon business plan, so read on for all the hair-splitting details.
Why build a business plan
Before you write a business plan , you might be wondering what the point of creating it is in the first place. After all, if the business is your personal passion that you’re willing to stake your time and effort into, is it really necessary to put so much of it in writing?
Actually, a business plan has two distinct values to anyone starting a salon (or any other spa business).
Value for investors
A salon costs money. Even if your staff is providing their own supplies, you have plenty of overhead and start-off costs, from signing a lease to keeping the lights on.
If you’re lucky enough to have access to all the funds necessary to start your salon—whether from your savings or your friends and family—that’s great, but for most small businesses the only way to secure the capital to get a business off the ground is through taking out a loan.
You can secure funds from:
- Small business loans – Federally subsidized small business loans guaranteed by the Small Business Administrations (SBA) are an option for your burgeoning salon business.
- Individual investors – Often high-income individuals are looking to invest directly into business opportunities including salons. You can meet with investors to get their ideas about how they can contribute financially to your small business.
To convince anyone to lend you the necessary capital to begin your salon, you’ll need a thoughtful business plan. As the business owner, you’ll present your plan directly to lenders and answer any questions they have about your proposal.
Ultimately, your hair styling business plan is your ticket to the financing you need to achieve your dreams of great ‘dos.
Value for the business
The flip side of your business plan is recognizing all the details, and planning is necessary to assure your business finds success. Committing to laying the groundwork on your business in print means a smoother opening, and a clearer picture of what needs to happen to get the doors open and the customers flowing in.
Your salon can use the business plan to:
- Analyze potential risks
- Develop a thorough layout
- Outline your target market
- Explore the possibilities of daily operations
You may think you’ve already got it all figured out, but throughout the process of building your business plan, it’s quite likely you’ll stumble across something that will make you rethink your original vision. Embrace the change—it’s time to jump into the plan.
Part 1: The cover page
Name, number, address, email—any and every way to contact you. The worst possible scenario is having an investor fall in love with your proposal only for them to have no clue how to get in contact with you.
While it may seem obvious, your cover page is the first thing any potential investor will see, so make sure everything looks pristine, professional, and eye-catching. Why not add a table of contents on the reverse side to give your audience an idea of what to expect as well? The extra polish might go a long way.
Part 2: Executive summary
Think of the executive summary as the simple synopsis, or the trailer for the big movie that is your new salon or spa. It needs to be short, touching on your goals and visions without getting too bogged down in the details. For your salon summary include information like:
- Your five-year plan – Do you see yourself expanding your business, offering more services, or opening up a second location? Share what your plans are for the future and where you see your salon going.
- How your salon will impact the community - Consider detailing how your salon will function as part of a larger community. Think about reaching out to neighbors and other local businesses through Nextdoor to get a better idea of the landscape you’ll become a part of.
Part 3: General description and company history
It’s time to talk about what sets your salon apart from the others. The general description and history pages are there to establish why your community needs your new small business. That means elaborating on specific things:
- Atmosphere - What feeling(s) does your salon evoke? Describe the feeling every customer will have upon viewing the facade and arriving inside. For Cedar Park salon owner Leslie Reeves , “It’s all about making kids feel amazing in their own skin.” She runs Sit Still, a kids salon committed to keeping its guests comfortable.
- Location – You’ve picked the perfect spot to begin your new salon business. Now let potential investors know why the location you’ve chosen is more than just practical—it’s purposeful. Whether you’ve studied the foot traffic of the neighborhood or noticed a dearth of other salons nearby, give them a reason why you’re putting down roots where you are.
- Services – Are you the first salon in your neighborhood to offer a service combination never seen before? If you’re styling hair like no one else, be sure to talk about it in your summary.
- Personal history – What about your past has come to inform you about starting a salon? If you’ve spent a decade in the beauty industry, worked in a variety of salons, and studied the ins and outs of the business, it’s worthwhile to include all of that.
Part 4: Mission statement and management plan
How are you going to do what you do? Keep your mission statement focused on things such as:
- Hiring and training practices
- Retail plans
- Customer service expectations
- Inventory management
- Business software
Tackle each aspect of how your salon will operate day-to-day before moving on to the management plan, which will essentially detail who is responsible for each task. These sections are interrelated and should complement each other. For each aspect of your mission statement, there should be a correlated part of your management plan.
Think about the role of each employee—from the front desk to the manager—and outline their expected compensation as well. Include yourself, as the owner, too. You have some big responsibilities, after all.
Part 5: Marketing analysis and plan
If you’re looking to open up a salon, you should spend time researching precisely what’s happening in the beauty industry, both locally and nationally. This in-depth research will go a long way in presenting your business plan as thorough, objective, and well thought-out.
You can also position your salon filling a hole in the market as Allyson Davoll, CEO of Inspired to Enhance Roanoke did, stating, “I always knew when I had my salon, I wanted to diversify and make sure everybody knew how to do everything.”
Present your marketing analysis and then explicate your plan to capture your customer base. That includes things like:
- Your market position – Do you specialize in classic cuts for young professionals or are you catering to an older crowd looking to keep up with current trends? Explain exactly who your target demographic is and why you’re in the position to cater directly to them.
- Create marketing goals - Create realistic goals for the immediate future when it comes to your small business marketing plans . Who and how many are the key takeaways from these goals, and don’t forget to imagine how you might expand your target demographics in the future.
- Identify branding – Slogans, images, and potential advertising materials can all be detailed in your marketing strategy. Show your potential investors exactly how you plan to appeal to your target demographic and explain why you’ve made the choices you have.
Part 6: Financial plan
If you’re looking for someone to invest in your salon or spa business, you’re going to need to prove that the investment can be lucrative with a shrewd financial plan. This section can be the most complex, especially for those with a specific financial background, which is why many small business owners turn to a professional.
A certified public accountant (CPA) is an individual with the knowledge and accreditation to guide you through any financial questions you might stumble upon while preparing your financial plan. Seek out any resources and help you might find necessary to build a proper business plan for your hair salon.
Your financial section should include the following information, though it’s important to note that much of it will be projected data based on research unless your beauty salon is already up and running.
- Profit and loss statement – Exactly what it sounds like, this statement will account for your income generating costs (products, commissions, retail sales), as well as your monthly operational costs (rent, utilities, insurance).
- Break-even analysis – Where costs intersect with profits. You can create a graph detailing exactly how much time it will take for the initial investment to be made back in full by the business.
- Cash flow statement – This section will account for all of the money that flows in and out of the business. Whether to pay for services or pay off loans, every penny should be accounted for.
- Business ratio – The projected sales and growth over one year can be identified in the business ratio. It’s a good way of asserting how and why your business will succeed and expand.
Part 7: Appendix
This final and optional section is where you can place items that you think are important but might not have their own proper section. These miscellaneous items could include:
- City permits
- Building leases
- Your resume
If you believe you have an item that could help you secure financing for your new beauty salon be sure to include it.
Business plans are typically under 12 pages, so as always, keep things as concise as possible and exercise restraint whenever possible. As well, note that you can (and likely should) revise and change your business plan as you encounter new information and develop new ideas. It’s a living document with the flexibility to change when necessary.
Nextdoor: The best plan for your business
Now that we’ve outlined the nitty-gritty of getting your salon’s business plan off the ground, you’re likely posed over your keyboard ready to get started bringing this essential document to life.
Hang on for just a second and click on over to Nextdoor . Nextdoor is the place to turn for getting the word out about your new beauty salon business, gathering recommendations, connecting with potential customers who are also your neighbors.
At Nextdoor we know it takes a village, so why not get in touch today.
Impact Newspaper. Sit Still Kids Salon aims to create calm space for haircuts. https://communityimpact.com/austin/cedar-park-leander/business/2021/09/13/sit-still-kids-salon-aims-to-create-calm-space-for-haircuts/
Roanoke Times. Business Intel: Salon offers inclusive hair care services at Valley View. https://roanoke.com/business/local/business-intel-salon-offers-inclusive-hair-care-services-at-valley-view/article_96c21ddc-ffa1-11eb-9097-df80c4c4542b.html
SBA. Small business funding programs. https://www.sba.gov/funding-programs
Get Nextdoor updates
How to Prepare a SWOT for a Hair Salon (Example)
- November 4, 2023
- Business Plan
A SWOT analysis is a crucial component of a hair salon business plan, providing a clear framework to assess the internal and external factors that can influence the salon’s success.
This strategic tool helps in identifying the Strengths, Weaknesses, Opportunities, and Threats that a hair salon faces. Here’s how to conduct a SWOT analysis for your hair salon business plan.
Hair Salon Business Plan
Strengths are the positive internal aspects of your hair salon that set it apart from the competition:
- Skilled Hairstylists : A talented team that can offer a wide range of styles and services is a significant asset.
- Customer Service : Exceptional customer service that creates a welcoming atmosphere can foster client loyalty.
- Location : A salon situated in a high-traffic area can attract more walk-in clients.
- Quality Products : Using premium hair care products can enhance the customer experience and justify higher service charges.
- Brand Image : A strong, stylish brand image that resonates with your target market can be a powerful marketing tool.
Weaknesses are internal factors that could hinder your salon’s performance:
- Limited Services : A narrow range of services may prevent the salon from catering to diverse client needs.
- Pricing Strategy : Prices that are too high can alienate potential customers, while prices that are too low can hurt profits.
- Operational Inefficiencies : Inadequate appointment scheduling or slow service can lead to customer dissatisfaction.
- Staff Turnover : High turnover can disrupt service continuity and affect the salon’s reputation.
Opportunities are external factors that the hair salon could capitalize on to expand and grow:
- Emerging Trends : Staying ahead of hair care and styling trends can attract clients seeking the latest services.
- Retail Sales : Selling hair care products provides an additional revenue stream and enhances the customer’s at-home care.
- Partnerships : Collaborating with local businesses for cross-promotion can increase clientele.
- Digital Marketing : Leveraging social media and online booking systems can improve visibility and convenience for clients.
Threats are external challenges that could impact the salon negatively:
- Competition : New or established salons in the area can intensify competition.
- Economic Fluctuations : Economic downturns can lead to a reduction in discretionary spending on hair services.
- Changing Consumer Preferences : A shift towards natural and low-maintenance hairstyles could decrease demand for certain services.
- Regulatory Changes : New health and safety regulations may require investment in additional training or equipment.
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Hair Salon Business Plan Sample
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!
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.
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.
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.
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.
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.
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 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.
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.
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. 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:
UK Start-Up Visa Business Plan
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.
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.
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
6.4 sales yearly, 6.5 sales forecast, 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
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, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected 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.
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Salon Business Plan: A Complete Guide For Hair & Beauty Salon Suites
- Updated on August 25, 2023
Everybody wants to look good. The key to looking good is of course hair! That’s why there are hair salons on every corner. If you are planning to open a beauty salon or barbershop, here is the complete guide for a salon business plan.
Table Of Content
What do hair salons or barber shops do, why do you need a salon business plan.
- Who Can Open a Hair Salon?
How to Write a Beauty and Hair Salon Business Plan?
- Positive and Negative Effects of Begin a Hair Stylist
Can I Open a Hair Salon with No Money?
Total cost of opening a hair salon.
Hair salons and barber shops ’ main service is to cut hair but most of them evolve and serve as a beauty salon. This means they cut hair, take care of nails and skin, dye hair, do nail art, do hair removal, and so on.
If you are planning to open a hair salon , you should create a salon business plan. A salon business plan helps you to understand the nature of your hair salon or barber shop . Also, a salon business plan will give every detail about your small business to the reader. That reader could be an investor! Hair salons have different spending and before entering this sector, you should make your financial plans carefully. There are several questions you should ask before you start a hair salon business plan. Some of them are:
- Do you have enough capital or credit score for building a beauty salon ?
- Do you planning to serve as a hairstylist or do you just want to be the owner?
- How do you reach the customer?
- Where do you planning to open your hair salon?
- How do you manage hiring and work model?
- And much more…
It might sound like a lot of questions but if you start writing your own hair salon business plan you will find every answer on the road.
Who Can Open a Beauty and Hair Salon with Salon Business Plan?
If you already went to a related school, it is easy to open a beauty and hair salon by yourself. In this case, you just need a capital and nicely written salon business plan. Additionally, you can choose someone to work with and you can use their diploma and knowledge. Either you can hire them or make a business partnership. Depending on your capital, you should decide one of them. Your capital and your dream beauty and hair salon are the key reasons to choose one of them.
A proper hair salon business plan should have 6 main sections. These sections are the salon business plan cover, Hair and nail salon business introduction, marketing plan, organization of the hair salon business, financial plans of the nail and hair salon business, and lastly, a summary of the business.
If you can finish these 6 sections you will have a proper hair salon business plan modeling and you can use it for anything you want.
What should a Hair Salon Business Plan include?
Beginning a business start with a dream and name. Definitely, you should decide your hair salon or barber shop name and then design a logo that differentiates your business from others. Consider using a professional logo maker to save more time and effort when it comes to logo-related tasks.
After the basics of your hair salon or barber shop, you can go into details about what you do and how you do it.
Also, you can explain your services and products in detail. That will give readers a general look at your salon business and it will make your salon business plan much more efficient.
Marketing of Salon Business Plan
Firstly, marketing is the key to the success of any type of business including hair salons. The hair salon business plan for marketing should be very detailed. The analysis will make your marketing plan more targeted. There are many different analysis methods.
Also, you should analyze your own hair salon objectively. Then market and competitors around you.
– This target market analysis is created by Business Plan Google Sheets Template by Someka –
Management and human resources can lead to a more successful business. Before you open your hair salon business , you have to ma great planning on the organization part. Sustainable partners and reliable suppliers will make your customer happier. No one wants to hear a product is out of stock, right?
Financials of Salon Business Plan
Financial planning and income statements will help you understand, how much capital you need to open a nail and hair salon business. It can be done for openings and monthly, yearly plans. These monthly and yearly balance plans summarize your income and expenses plans.
The last section you need to fill in the is summary section. You should give the reader a clear idea about what you do and what you believe about your hair salon business plan. Therefore, business timeline is one of the key factors for investors. That means ROI timing (Return on Investment time). Investors want to learn when they can get their money back. That salon business timeline will show them, how you will be successful.
Lastly, the Executive summary is your idea about the hair salon business. Your ideas about the business will lead the company so the readers will have a chance to look from your windows.
– This business model canvas sheet is created in Business Plan Excel Template by Someka –
What are the Positive and Negative Effects of Being a Hair Stylist?
Are you considering a career in hair styling ? It’s a fulfilling profession with upsides and downsides that we’ll explore in this article. Hair stylists have the advantage of expressing their creativity, building long-lasting relationships with clients, and enjoying a flexible work schedule. Hair styling services are always in demand, so it’s a stable career choice.
On the downside, hair styling can take a toll on your physical well-being, with long hours of standing and constant use of your hands and arms. The hair salon and beauty industry is highly competitive, and you need to keep up with the latest trends and techniques to remain successful. Also you’ll need to manage your stress levels since dealing with different personalities and handling unhappy clients can be difficult.
Moreover, starting your own hair salon or beauty salon can be costly, with significant investments in creating a business plan, obtaining financing, finding a location, and purchasing equipment. Even working in an established salon can be pricey, with high booth rental fees and expenses for supplies.
In conclusion, hair styling is a gratifying career path for those with a passion for creativity and working with people.
Thinking about opening your own hair salon? It’s an exciting prospect, but the cost can be a barrier. So, can you start a hair salon without any money? Unfortunately, the answer is no, but there are ways, to begin with minimal funds. This article offers some tips to help you launch your salon on a tight budget.
One option is to rent a booth in an established salon. This allows you to start your business without a significant investment in equipment or a lease. Another option is to seek financing through small business loans or grants. You’ have to have a solid hair salon business plan as we build for you!
Partnering with another stylist can also be a way to start a hair salon with minimal funds . By sharing resources and expertise, you can build a successful business together. Starting small and gradually adding services and equipment is another approach. This plan let you to grow your business as you generate income.
Lastly opening a hair salon with no money is really hard but it’s not impossible. It requires creativity, resourcefulness, and a willingness to take risks. Developing a solid business plan and staying committed to your goals are essential for success.
– This chart is created on Beauty & Hair Salon Financial Model Excel Template by Someka –
Furthermore, it’s critical to understand that opening a hair shop requires considerable costs. If you are planning to open a barber shop , You should consider these payments : rent and utilities, furniture and supplies, permits and licenses, marketing and promotion, payroll spending, and other charges.
Additionally, the cost may be various depends on your dream hairstylist .
How to start a business successfully?
Why should we make a Feasibility Study Before Kicking-Off a Business Idea?
Don't bother with copy and paste.
Get this complete sample business plan as a free text document.
Hair And Beauty Salon Business Plan
Start your own hair and beauty salon business plan
Trend Setters Hair Studio
Financial plan investor-ready personnel plan .">, key assumptions.
The financials that are enclosed have a number of assumptions:
- We’ll be using a full commission model with stylists and barber getting 60% commission on revenue. Industry average runs 45-65%. We’re on the high end because we are not offering a guaranteed base. This is what we’re used to. The owner will take a straight salary plus dividends on profits.
- We’ve looked at the booth rental model but we’re used to commission and that creates a more orderly process for payments too, with all stylists able to use our credit card account.
- There can occasionally be issues with commission base related to reporting revenue, but we are a small salon with the owner mostly present.
- We project revenues lower than average over the first few months, and then stable. We anticipate annual increase to stay steady throughout the following year to account for the normal flow of new clients coming into the salon. Estimates for sales revenue and growth are intentionally low, while anticipated expenses are exaggerated to the high side to illustrate a worst-case scenario.
- Our direct costs are mainly stylist and barber commissions plus direct costs of the products we intend to sell, plus an estimate for the ongoing cost of products, supplies, etc.
- Product sales are a minimal part of our market. We are not quite sure how much revenue will be derived from products, so we took a low-ball approach and estimated sales of $800 a month. Also in the sales projections table are services such as nails and massages. We are not quite sure how much revenue these two services will generate. We are certain that in time these services will be a large part of our revenue, but to err on the conservative side, we estimate revenues from these services to be only $1,500 a month for the first year.
Revenue by Month
Expenses by month, net profit (or loss) by year, use of funds.
We estimate initial purchase of $50,000 in equipment plus $1,000 for starting inventory and $2,000 for other current assets (supplies mostly) and $9,000 in initial loss for expenses incurred before launch. These include legal, location fix-up, early marketing expenses, branding, logo, and social media.
We also estimate needing $50,000 cash cushion when we start.
Total starting costs, therefore, are $9K in expenses plus $103,000 in assets including $53,000 tangible assets and $50,000 cash in the bank.
Sources of Funds
We anticipate $60,000 in owner investment from owner savings, which shows up as paid-in capital in the initial balance; plus a 5-year $50,000 vendor/manufacturer loan to finance initial equipment.
Projected Profit & Loss
Projected balance sheet, projected cash flow statement.
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How to Make a Business Plan for a Hair Salon
"He who fails to plan, plans to fail." No truer quote exists in small business startup. A well-developed business plan provides your hair salon with a map for success and focus. Further, it can be used to obtain funding from banks or to recruit partners. A business plan outlines all aspects of your business, including your mission and goals, market, operations and financing.
Write the executive summary of your hair salon. Start with your salon's history, mission, goals and special achievements or awards. Focus on what is unique about your services. Include a description of your salon's facilities, equipment, supplies and employees.
Define your target market including demographics, such as age, gender, as well as your market's special needs, such as hair styling for high-end clientele or hair cutting for children. After defining your market, determine media and advertising outlets that are best for reaching it, and provide an outline of the marketing materials and activities you will do to promote your hair salon. For example, if your salon caters to wealthy women, you can advertise in local high-end lifestyle or fashion magazines.
Identify the similarities and differences between your hair salon and your competition. Areas to consider are services, price, location, target market and marketing strategies. This information will help you better define and differentiate your business from your competition.
List the management team of your hair salon, including their names, job duties and details about their skills or training related to running a successful hair salon. For example, outline the duties of your salon manager, as well as her education and work experience as they relate to managing a hair salon.
Outline daily duties in running a hair salon. List the day-to-day activities needed to market, open, manage, provide services and close the salon. Indicate who on your team is responsible for each activity.
Create a financial outline of your hair salon, including a financial statement of current cash, assets, expenses and liabilities. Also provide projected income and expenses over the next year.
Include additional documents or materials that support your business plan in an appendix. Materials to include are business licenses and permits, health department or state occupational permits, trademarks and marketing materials.
Organize all the business plan information into a single document. If you want to obtain funding or partners, use quality paper and binding to create a professional presentation. Don't store your business plan away. Instead refer to it regularly to keep you on track. Make changes as needed, such as expanding services or adding a new marketing outlet.
- Small Business Administration: Create Your Business Plan
- Entrepreneur.com: Your Business Plan Guide
- Bplans.com: Hair and Beauty Salon Sample Business Plans
Leslie Truex has been telecommuting and freelancing since 1994. She wrote the "The Work-At-Home Success Bible" and is a career/business and writing instructor at Piedmont Virginia Community College. Truex has a Bachelor of Arts in psychology from Willamette University and a Master of Social Work from California State University-Sacramento. She has been an Aerobics and Fitness Association of America certified fitness instructor since 2001.
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7 Successful Marketing Tips for Hair Salons and Stylists
Marketing for hair salons is a very specific art, but it also leaves room for creativity and customization. Through tools like advertising, customer loyalty programs , websites, and online booking, you can keep your current clients engaged while also attracting new clients.
If you’re a hairdresser or a makeup artist, wondering how to grow your beauty salon or your local business, you’ve come to the right spot. With these successful hairstylist marketing ideas , you can build your brand, earn more money, and of course— keep doing what you love to do .
1. Geo-Targeted Advertising
Geo-targeted advertising is one of the most effective hairstylist marketing strategies . If you aren’t all that familiar with it, essentially, geo-targeting uses your location data to reach your potential customers. Geo-targeting works because it shows consumers relevant information.
If you’re running an email marketing campaign, it might not be too helpful for someone who lives in Atlanta, Georgia, to be shown deals for a hairstylist in Los Angeles, California. So, targeting the areas your business serves and showcasing your ads to people who live in these specific places can help to turn clicks into clients.
You can also incorporate a more intense form of geo-targeting called radius-targeting. With radius-targeting, you can target customers in a super-specific area (like say, within a mile of your beauty salon).
We break things down on how geo-targeted Facebook ads work and how you can use them for your salon business on our blog. The great thing about using Facebook ads for hairstylist marketing is that they can be broken down into four categories:
- Everyone in a location
- People who live in a location
- Recently in location
- People traveling in a location
If you’re planning your geo-tagging ad strategy, remember the following tips:
- Understand your brand
- Choose a goal
- Discover your special customer
- Think of location and income
- And don’t break the bank
2. Loyalty Programs
Ever returned to a coffee shop to get one more punch in your card or booked a hotel because you couldn’t resist inching closer to your next card reward?
Customer loyalty programs are one of the most genius hair salon marketing ideas because they truly work. Choosing the right program depends on you and your brand, but here are some of the popular types to consider.
- Punch Cards: Your client gets 9 haircuts and they get the 10th for free!
- Discount Cards: Every time your client visits, they are gifted a handy card with a certain amount off their next service.
- Points Programs: Spend upfront on a certain amount of services and reap the customer loyalty rewards later on. The more customers spend, the more points they gather.
- Referral Promotions: If you’re wondering how to get new customers as a hairstylist or a makeup artist, referral promotions are one of the best ways. Not only do they boost your personal brand and increase customer loyalty, but they help with word of mouth advertising. Have existing clients who may be interested in spreading the word to his/her family or friends? Offer a referral reward if that family member or friend books with you (like a certain percentage off their next cut or a free shampoo).
3. Promote Online Booking
Have you been wondering how to promote yourself as a hairstylist?Have you been wondering how to promote yourself as a hairstylist? Online booking is one of the most popular hairstylist marketing strategies . It’s a modern approach to booking that makes things easy for potential clients. It’s also what we focus on at StyleSeat, so we’ve seen firsthand just how much impactful growth can happen with some simple online booking tools.
Here are some benefits of online booking to consider as you conceptualize your digital marketing plan.
You’re Always Available
You may be away from the office and not able to answer your phone. Your online booking platform, on the other hand, makes it easy for potential clients to reserve an appointment early in the morning, late at night, or on days when your salon is closed. It’s a win-win for hairstylist marketing .
Online booking makes payments faster and easier. Typically, platforms will ask prospective clients to input their card information or to prepay for services. No more fumbling with cards when appointment time rolls around.
When the booking is easy and quick, you’ll find yourself landing some new customers. If you’re a solo business salon owner, keep in mind, though this hairstylist marketing technique works well, you want to avoid double booking or scheduling yourself so often that you burn out.
4. Consistent Branding
Good branding can be beneficial in so many ways. It can elevate your brand, build your voice, and also increase customer loyalty.
Before you dive into crafting your ultimate hairdresser marketing plan, think of your target audience. You may be a stylist trying to appeal to customers looking for braids or a barber who specializes in shaves. Knowing what you do will help draw your customers in.
As you craft your personal brand message, try to incorporate it into the following outlets:
- Business cards
- Website or portfolio
- Social media platform
- Print collateral (like banners, flyers, and loyalty cards)
5. Creating a Business Profile/Website
Similar to a photographer with an online gallery or graphic designer with sample projects, a hair salon business is your art. Creating a profile/website is part of our plan for necessary hairstylist marketing strategies .
If you’re new to the idea of a digital business profile or website, no need to worry! For those who don’t want to build your website from the ground up, you can also use StyleSeat to showcase your work and act as your website.
Similar to your own website, with us, you can list your services, have an “about me” section, and encourage clients to leave reviews. You can also post photos of your work, so it acts as a hybrid website/visual portfolio and is an effective strategy for hair stylist marketing .
6. Building your Social Presence
Building your social presence is one of the most popular hair salon marketing ideas . If your head’s spinning with too many options, choose one social media platform you’re passionate about. Hairstylists who enjoy writing short, snappy content sometimes turn to Twitter, while those who are more enthusiastic about photographs and videos may use Instagram.
A social media Facebook page is a great way to spread the word and make yourself easily accessible to potential clients. You can also note your area of expertise in your hair stylist Instagram bio , Twitter or on your Facebook page to make it easy for potential customers to know exactly what you offer.
Your social media accounts are also a wonderful place to share promotions or exciting news. They’ll keep you engaged with your customers, which is one of the main components of a hairstylist marketing strategy.
One thing we love about social media and hairstylist marketing is that it allows our hairstylists to share their booking link and their profile. What better way to grow your client list than through your family and friends? With a quick share to social media, your friends—and friends of friends—can book your services and show their support.
7. Working with StyleSeat
When you work with StyleSeat, we build your salon business and your client list. We connect you with clients who are a fit for your business and you’ll only pay when you get booked.
If you’re looking for hair salon marketing ideas that are both reliable and long-lasting, we’re here to help. We know finding and keeping new clients can be a full-time gig. We focus on matching you with high-quality customers so you can build lasting relationships and grow a loyal clientele base.
Here’s How Our Marketing Plan Works
- You can run advertisements and promote your Styleseat profile across search engines, social media, and email campaigns to get you visibility.
- We take a percentage of what you make in your first appointment and invest it right back into hairstylist marketing techniques to get you more business.
- You can give private ratings to clients you’re connected with so we can find more clients that are best fit for your local business.
- All of your appointments will be charged automatically through StyleSeat — that means no wallet needed for your salon client and no awkward payment situations.
If all this sounds like the right next step toward your beauty bonds—and your financial freedom—get started today. Working with StyleSeat is easy and empowering.
Grow Your Business With StyleSeat Today
Whether you’re jumping into building your business with us or just learning how to promote yourself as a hairstylist and implement your hairstylist marketing strategy, we hope this article helps you get to the next step.
At StyleSeat, we understand and appreciate the hard work you do for your clients. Marketing for hair salons can be tough work if you’re doing it on your own—so it’s important to remember, a little bit is better than nothing.
Establishing your brand voice, getting those social accounts up and running, and looking toward the future are all steps in the right direction. Hairdresser marketing that works well for some beauty salon owners, may not be the best fit for others.
But, as you move through the motions, you just may find a new hobby (like sharing your work on social or sending out holiday-themed email campaigns).
Ready to grow your business and become a successful hairstylist? Join StyleSeat today!
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