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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Beauty Salon Business Plan Template
Beauty salon business plan.
You’ve come to the right place to create your beauty salon business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their beauty salons.
Below is a salon business plan example to help you create your own beauty salon business plan.
Major Lengths Beauty Salon is a newly established hair and beauty bar located in Glendale, Arizona that is founded by Jenna Diaz, a local hair stylist and aesthetician that has worked in the industry for over 15 years. Jenna’s knowledge in hair, nail, and facial trends have made her a popular stylist in the community. As her client list continues to grow, Jenna realizes that it’s time for her to open up her own salon.
Major Lengths Beauty Salon will be located in Glendale’s upscale district in a 5,000 square foot retail space. The area is highly trafficked with middle to high income residents who spend on luxury items such as cars, clothes, jewelry.
The beauty salon will offer haircuts and treatments, facials, manicures, and pedicures. Major Lengths will also carry a large selection of hair and beauty products that will be available for purchase. Jenna will have a loyalty program where the top clients will receive discounts on their service as a thank you for remaining loyal and referring other potential clients to the salon.
The following are the services that Major Lengths Beauty Salon will provide:
- Color Treatment
- Healthy Hair Treatment
- Nail Services
Major Lengths Beauty Salon will target the male and female adult population of Glendale, although the majority of clientele will be women. They will be middle to high income and working in a variety of industries, such as medical, legal, business, education, or other white collar professions. The salon will target stay at home mothers as well who enjoy a day of pampering.
Major Lengths Beauty Salon will be owned and operated by Jenna Diaz, a local Arizona hair stylist and aesthetician. Her years of experience and in the industry have allowed her to meet the following talented individuals.
Jenna has recruited a talented nail technician and aesthetician from her previous salon to join her at Major Lengths. Jenna regards them as the best in the industry and knows that their quality of work is up to her high standards. They also have a loyal and large list of clients that will likely follow them to the new salon.
While the three of them will be in charge of their respective department, Jenna will be the head manager to oversee the entire operation of the beauty salon.
Major Lengths Beauty Salon will be able to achieve success by offering the following competitive advantages:
- Latest hair and nail trends
- Modern and comfortable environment
- More selection of each service offered than any other salon in town
- Major Lengths Beauty Salon offers the best pricing in town
Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon. The funding will be dedicated towards securing the retail space and purchasing the salon furniture, equipment, decorations, opening inventory, and working capital. The breakout of the funding is below:
- Beauty salon build-out: $30,000
- Opening inventory, furniture, equipment, decorations: $40,000
- Three months of overhead expenses (payroll, rent, utilities): $15,000
- Marketing costs: $5,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Major Lengths Beauty Salon.
Who is major lengths beauty salon.
Major Lengths Beauty Salon is a newly established hair and beauty bar located in Glendale, Arizona. The company is founded by Jenna Diaz, a local hair stylist and aesthetician that has dedicated her career to making women look and feel their best. Throughout her years in the beauty industry, Jenna gained extensive knowledge in hair, nail, and facial trends as well as how to give exceptional customer service to all of her clients. Jenna realizes that men and women invest a lot of time and money into their appearance and she takes extra care to ensure her clients not only feel special, but walk away with their desired result.
Major Lengths Beauty Salon will be located in Glendale’s upscale district in a 5,000 square foot retail space. The area is highly trafficked with middle to high income residents who spend on luxury items such as cars, clothes, jewelry. Some of Arizona’s most expensive homes are within a 15-mile radius from the location. The salon will be decorated with a contemporary style, have modern furnishings, and include a welcoming waiting and reception area, large hair styling room, and separate areas for facials and nail services.
Major Lengths Beauty Salon History
Major Lengths is owned and operated by Jenna Diaz, a local hair stylist and aesthetician who has made her career working in the beauty industry for the past 15 years in Glendale. She has gained extensive knowledge through her continuing education and industry seminars. Jenna has a long list of loyal clientele who will follow her to her new salon. Aside from her beauty salon knowledge and expertise, Jenna has taken local business courses to learn salon management and leading a small team of stylists, manicurists, and aestheticians.
Since incorporation, Major Lengths Beauty Salon has achieved the following milestones:
- Registered Major Lengths Beauty Salon, LLC to transact business in the state of Arizona.
- Has obtained the necessary salon permits and licenses for the state of California.
- Has a lease contract in place for the 5,000 square foot beauty salon.
- Has developed the complete list of salon services and products.
- Has developed the beauty salon’s logo and branding image.
- Began recruiting a team of stylists, manicurists, and nail technicians.
Major Lengths Beauty Salon Products
The following will be the services Major Lengths Beauty Salon will provide:
The Beauty Salon industry is expected to increase in size by 2.5% over the next five years. Demand for industry services mirrors broader economic performance, as economic growth boosts consumer spending on personal care products and services. Specifically, new products and services have favorably contributed to industry revenue growth over the majority of the past five years.
Online platforms such as Instagram and Facebook have provided a convenient and low-cost marketing strategy for many stylists and technicians to garner new clientele. Higher service prices and increased consumer spending on high-margin merchandise and services have also fueled revenue growth, as operators capitalize on rising per capita disposable income. Continued growth in household income over the outlook period is expected to drive consumer spending and boost demand for premium personal care services. Moreover, equipped with larger budgets, consumers will likely continue to favor professional salon products and services, such as hair coloring services, over less expensive alternatives sold at drugstores and supermarkets. Environmental sustainability concerns are expected to become more prevalent over the next five years, leading salons to offer a wider array of eco-friendly products that appeal to trending consumer preferences. Specifically, nontoxic products will likely benefit industry revenue, staff and patrons. This growing niche will likely drive hair salon revenue over the coming years.
Demographic profile of target market.
The precise demographics for Glendale, Arizona are:
Major Lengths Beauty Salon will primarily target the following customer profiles:
- Stay at home mothers and fathers
- Working professionals
- College students
- Retired females
- Mothers with adult or teenage daughters
Direct and indirect competitors.
Major Lengths Beauty Salon will face competition from other companies with similar business profiles. A description of each competitor company is below.
Hair Xtreme is located on the west side of Glendale and is owned by a local hair stylist with over 30 years of experience. Hair Xtreme specializes in haircuts and hair coloring services as well as hair color correction. The owner is also certified in Balayage highlighting by the prestigious L’oreal SOHO Academy. Hair Xtreme Beauty Salon was established to create a higher level of service in the Glendale community and has amassed a large clientele. The salon is regarded as the go-to salon for anyone looking for extreme color or haircut transformation. The pricing of services are on the higher end of the spectrum and caters to the community in the middle to higher income range.
Hair Xtreme Beauty Salon’s full list of services include haircuts, balayage, ombre, highlights, color retouch, hair treatments, and special occasion styles. The salon is open Tuesday through Saturday and is by appointment only.
The Complete Package
The Complete Package is not only a hair and nail salon in Glendale, but also provides massage treatment, eyelash extensions, and body treatments. The salon is moderately priced and leans to be more affordable to target the population who doesn’t spend lavishly on beauty services, but also occasionally like to get pampered. Owned and operated by a mother and daughter team of hair stylists, The Complete Package is located in a small retail shopping center in the middle of the city. The salon has been in operation for over 20 years and was founded by Kate Beneducci. She was able to bring The Complete Package into operation due to her experience and background in cosmetics, marketing, and management. Every single stylist is a certified cosmetologist and are all required to attend a mandatory training every year to learn the latest techniques.
The Complete Package’s full list of salon services include hair, makeup, eyelash extensions, and nails. The full list of spa services include waxing, facials, microdermabrasion, massage, and body treatments. The salon regularly posts promotions to increase customer loyalty. The Complete Package is open daily by appointment and is able to take walk-ins Friday through Sunday.
Fringe Beauty Salon and Spa
Fringe Beauty Salon and Spa is located on the west side of Glendale, Arizona and was established in 2013 as a premier beauty salon. Fringe caters to the higher income clientele and their pricing is the most expensive in town. The owner relocated to Glendale to start her own beauty salon after working in the beauty industry in New York and Los Angeles for many years. She did hair and salon services for many celebrities and has been known to be the stylist for awards shows such as the Emmys and Oscars.
As a Glendale native, she relocated to her hometown to provide a higher quality of salon services to the community. The full list of services for Fringe Beauty Salon include haircuts, hair treatments, hair color, balayage, ombre, special occasion, manicures, pedicures, massage, facials, eyelash extensions, waxing, and makeup.
With a luxury atmosphere and relaxing spa environment, Fringe Beauty Salon and Spa is frequently booked for those wanting a full day of pampering.
Major Lengths Beauty Salon will be able to offer the following advantages over their competition:
- Friendly and knowledgeable staff who are all trained and experienced in the latest hair and beauty trends.
- Complete list of beauty salon services intended to provide a full day of pampering and relaxation.
- Casual and comfortable environment with a luxurious feel.
- Major Lengths Beauty Salon offers the best pricing in town for the high quality of services provided. Their pricing structure is the most cost effective compared to the competition.
Brand & value proposition.
Major Lengths Beauty Salon will offer the unique value proposition to its clientele:
- Complete list of beauty salon services all provided by trained and knowledgeable hair stylists, manicurists, and aestheticians.
- Pricing is affordable and moderate so customers perceive value when visiting the beauty salon.
The promotions strategy for Major Lengths Beauty Salon is as follows:
Major Lengths Beauty Salon has hired an advertising firm to develop their branding image and logo. They will also develop the hair salon’s website. The website will include a full list of services, pricing, and pictures. The advertising company will also manage the company’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Glendale beauty salon” or “beauty salon near me”, Major Lengths Beauty Salon will be listed at the top of the search results.
Word of Mouth/Referrals
Jenna Diaz has a long list of loyal clients that have been with her for decades. They will follow her to the new salon and will receive additional clients from their referrals.
Once the branding and logo is finalized, Jenna will use social media to her advantage and create social media business pages on all of the popular social media platforms. She will commit to posting daily to increase the list of followers and use it to regularly engage with customers.
Major Lengths Beauty Salon will invest in professionally designed print ads to display in local magazines and hand out flyers to local businesses.
The pricing of Major Lengths Beauty Salon will be moderate and on par with competitors so customers feel they receive value when purchasing their salon services.
The following will be the operations plan for Major Lengths Beauty Salon.
- Jenna Diaz will be the Owner and Manager of the beauty salon. She will order salon inventory and products, oversee staff, payroll, and manage customer service.
- Melanie Brooks – Head nail technician that will oversee the nail department.
- Fiona Adams – Head aesthetician that will oversee the facial and massage departments.
- Jenna has hired third party companies to manage the bookkeeping, accounting, tax payments, insurance, and legal requirements.
Major Lengths Beauty Salon will have the following milestones complete in the next six months.
8/1/202X – Finalize retail space for beauty salon
8/15/202X – Begin build-out of beauty salon to include stylist stations, facial and massage rooms, and nail service area
9/1/202X – Order opening inventory
9/15/202X – Begin marketing campaign
9/22/202X – Hire staff of hair stylists, nail technicians, massage therapists, and aestheticians
10/1/202X – Major Lengths Beauty Salon Grand Opening Event
Major Lengths Beauty Salon will be owned and operated by Jenna Diaz, a local Arizona hair stylist and aesthetician. Jenna has made an impressive career helping women achieve their desired look and feel. As an Arizona native, Jenna has attended the local beauty college and attends industry trade shows and training seminars annually. She has amassed a large and loyal clientele and has even done hair treatments, cuts, and facials for local celebrities and sports personalities. Jenna is committed to establishing a beauty salon in her hometown of Glendale and making it a place where the women and men flock to when they want the latest hairstyle, manicure, or facial.
While the three of them will be in charge of their respective department, Jenna will be the head manager to oversee the entire operation of the beauty salon. She will also outsource a third party insurance company, CPA, and attorney to take care of her insurance, legal obligations, and tax filings. Jenna will also employ a part time bookkeeper to handle her day to day accounting and payroll of staff.
Key revenue & costs.
The revenue drivers for Major Lengths Beauty Salon are the sales from hair services, nail services, massages and facials.
The cost drivers will be the overhead costs required to staff the beauty salon. The expenses will be the payroll cost, rent, utilities, salon inventory, and marketing materials.
Funding Requirements and Use of Funds
Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon. The funding will be dedicated towards securing the retail space and purchasing the salon furniture, equipment, decorations, opening inventory, and working capital. Jenna will need to allocate funds for the first three months of payroll and operating expenses as well as spend approximately on branding and marketing. The breakout of the funding is below:
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Beauty Salon Services Sold Per Month: 300
- Average Revenue per Month: $20,000
- Beauty Salon Lease per Year: $110,000
Income statement, balance sheet, cash flow statement, beauty salon business plan template faqs, what is a beauty salon business plan.
A beauty salon business plan is a plan to start and/or grow your beauty salon. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your beauty salon business plan using our Beauty Salon Business Plan Template here .
What are the Main Types of Beauty Salons?
There are a number of different kinds of beauty salons, some examples include: Beauty salon focusing strictly on hair styling, beauty salon offering hair removal services, skin care services, nail services, tanning services, or massage services, and beauty salon offering products.
How Do You Get Funding for Your Beauty Salon Business Plan?
Beauty salons are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for a beauty salon or a hair salon business plan.
Why do You Need a Business Plan Template?
If you’re looking to start a beauty salon business or grow your existing salon business, you need a business plan. A hair salon business plan template will help you raise funding, if needed, and plan out the growth of your beauty salon in order to improve your chances of success. Your salon business plan is a living document that should be updated annually as your company grows and changes.
Most Helpful Salon Business Plan Template [Free Download]
All salon owners must have a good salon business plan.
There’s no getting around that.
Poor planning is the number one reason hair and beauty salons fail.
We all know this. But how come so many salon owners start their salon business without a salon business plan?
Creating a salon business plan may seem like a daunting task. Salon owners I meet procrastinate over their business plan because of the idea that a salon business plan needs to be a massive, 50 page, document with a lot of details.
But it doesn’t.
It can be one page.
In fact, a one-page salon business plan is in most cases more helpful and effective than an old school 50 page document.
And, assuming you’re clear on where you want to take your salon business, you can create it in just a few hours.
In today’s article, I’ll show you exactly how you can create a focused and powerful salon business plan. You’ll also be able to download a salon business plan PDF and Doc template at the end of the article to get you started.
Are you ready?
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What is a Salon Business Plan?
A salon business plan is a summary of how your salon business will function and clarifies why it will be successful. It provides a roadmap with goals and milestones to lead your salon to success.
Why do You Need a Salon Business Plan?
The primary reason you need a salon business plan is for you to get in control of your beauty business and to enable the right decisions upfront. A well-laid-out plan gives you a clear path to follow as you set out, while it also helps spot weaknesses in your salon business early. You also need a salon business plan to communicate with others. If you need to raise money, the bank or investor will want to see your salon business plan before issuing any funds.
Not having a business plan for your salon would be like building a house without any drawings. This is obvious when you’re thinking about a house, but for some reason, it’s often de-prioritized or forgotten by salon owners which, unfortunately, is the main reason salons go bankrupt.
But don’t worry.
Today you’ll learn how to write a salon business plan using the free template you can download at the end of this article.
You Get What You Measure
We’ll soon go over all the parts we need to define as part of your plan. But as we do this, we also need to make sure we have ways to measure the results.
If you don’t have a way to track and measure how your business performs vs. the goals and assumptions you define as part of your plan, you’ll operate blind, and you will not take the actions you need to get your business to the place we are trying to define with the plan.
This is why you should invest in powerful salon software that offers rich support for reporting and tracking the key targets you have set for your business.
The below video walks you through what reports look like in Mangomint – the software I recommend if you’re serious about your business.
Having access to this data in a simple way will be a game changer to the success of your plan. You can learn more about Mangomint and if it is right for you here .
How do I Write a Business Plan for a Salon?
There’s 10 critical components that should be included in any salon business plan:
This table will give you an overview of the components you’ll need in your plan. I’ll go through each one in detail in this article.
You can choose any format you want to write your plan in. A regular Microsoft Word document is a common document, but you could also do it in Excel or Power Point.
Keep Your First Salon Business Plan to One Page Only
I’d strongly encourage you to try and fit your business plan onto one page. At least for your first plan.
You’ll need a separate Excel spreadsheet for your financial budget and detailed milestones. But keeping the overall business plan on one page will make this the most helpful salon business plan you can create.
Complexity means distracted effort. Simplicity means focused effort. Edward de Bono
If you can keep the plan to one page, you’ll:
- Have it ready (fast): Some salon owners take months to write their salon business plan when using the traditional big document model.
- Keep it focused: A heavy document with a lot of details will distract your focus. A one-page plan on the other hand, will keep the few key things you need right in front of you. So that you can dedicate your attention to what will have the greatest impact.
- Keep it up-to-date: To be successful today, you need to be fast and agile. Having a 50 page document to update every time you make changes to your plan will make it impossible to maintain it.
- Make it easy to communicate: People are increasingly busy. In particular, investors if that’s who you’re going to share your plan with. Most of them will love it if you can convey what your business is about in just one page. I say most of them. Still, some institutions will require a multi-page plan, but you can deal with that when needed.
The Salon Business Plan Outline
We’ve arrived at the exciting part.
It’s time for you to start drafting your salon business plan. During the rest of this article I’ll walk you through each heading in your salon business plan outline. I’ll explain what each part is and also provide an example for each one that you can adapt to fit your plan.
Don’t just read through this part. Get a pen and paper out and jot down all ideas that come to mind. You’ll find these notes helpful later.
1. Salon Mission Statement
A salon mission statement is a short summary of why your salon exists, what the goal of the salon is and how this goal is achieved. It is the first thing you and other people who read your plan see and should be clearly visible at the top of your one-page salon business plan.
Everyone who work with and for you should understand and embrace your salon’s mission. It unites your salon team.
What is a Good Mission Statement of a Salon?
A good salon mission statement should capture the unique essence of why your salon exists. It sets the direction of your salon business. It should be the north star you look at when making all decisions for your salon. It’s typically one paragraph with one or two sentences.
It’s not easy to write a salon mission statement. Or, it’s easy to write it, but it’s not easy to boil down the overall essence of your salon in a couple of sentences. If you want to dive deeper into how to write a truly inspiring salon mission statement, I suggest you read my separate article about it here .
Salon Mission Statement Example
“Our mission is to provide a friendly, personalized service through a team of highly skilled and creative professionals. Teamwork is our most valuable asset which ensures our clients are always number one, and we strive to exceed your expectations”.
This is just one example to get your thinking going. To get more inspiration on how you can craft your salon mission statement, I’ve created a list of mission statements used by salons today . Not all are perfect, but you’ll find some highly inspirational ones in there.
2. Problem the Salon Solves
All successful businesses exist to address a problem that other people have. For example, I’ve written this blog post because I know there are people like you who need to get a business plan written for their salon but do not know where to start.
But what problem does your salon solve?
This is worth taking a few moments to think about. Because if you don’t have an obvious problem to solve, this is a sign of weakness in your plan. And that you need to adapt how you plan to approach your salon business.
It for sure doesn’t mean that there’s no room for your new salon. It just means you must re-focus your salon on a specific client segment or niche.
Nailing down what your clients’ problems are upfront can guide your salon to success you wouldn’t have been able to spot otherwise.
Example of Problem a Salon Can Solve
“Women have less and less time to spend on theirselves. At the same time, the demands they place on their appearance continuously to go up. They want that healthy looking hair, perfect brows and nails that look stunning every day. But there’s just not room in their calendar to fit all these appointments in.”
If your salon is based in a business district in a city area, this could very well be a problem that a big part of your potential clients faces.
What would you say is the problem people face in the area where your salon is (or will be) located?
3. Solution the Salon Offers
Now that you know what problem your clients face, it’s time to work out how you’re going to solve the problem. The solution is what you’ll offer in your salon and how you’ll offer it.
The Salon Offer
Your salon menu is of course at the core of your offer. The services you have on your menu should be inspired by your clients’ problems that you’re trying to solve. For salon service ideas you may want to add to your salon price list you can check out my other article here .
Retail products is another part of your offer that should complement the services in a way that helps address your client’s problem.
How You Provide the Service and Products
Your solution is not only about the services and products you provide but also how you provide them. What’s the experience you offer in the salon? How are you pricing your services? Do you need to book in advance or do you offer drop-in? Do you sell retail products online?
It could be that your service menu is identical to other salons in your area. But if you’re offering a different experience, at a different price, you can still fill a gap in the market and address a problem that people have.
Example of Beauty Salon Solution
Let’s take the problem example above – where women in your area have too little time to get all the beauty services they’d like. Your salon solution could then be something like the below:
“We offer set packages of hair cut & color with waxing and nail services included. You’ll receive all services at the same time so that you get everything done in under 90 minutes.”
Being Different through Customer Experience
I just want to reinforce that how you offer your service does not necessarily need to be in a completely out-of-the-box and new way for you to stand out. It can be by simply doing things better than what your competition is doing.
For example, by placing a bigger emphasis than anyone else on the customer experience. That people feel better treated and have a higher level of customer service than they get anywhere else. In my opinion, this is probably the best way to differentiate yourself today.
The software you use can play a big role here by automating some while still keeping it personal. Like when we allow all our clients to text us at any time. This direct access is very valuable to clients but a mess if we don’t have the right technology to support it.
We run this with the two-way texting feature of Mangomint . It allows us to have client text at any time and messages can be directed within the team and you get a full overview of all client communication (like all automated reminders as well as when people in the team jumps in).
This is just one example of how you can use technology to ramp up your client service level and stand out in your area. Mangomint is quite unique here with several features designed to improve the experience you create with clients. If client experience is important to you and your business, you can learn more about how they do it here .
4. Salon Revenue Model
Your salon needs to make money..
..or it will not exist very long.
But there are many ways that a salon can make money and profit – it’s not just about service sales (even if that’s typically the bigger part of it).
How you generate income should be summarized in the salon revenue model section of your business plan.
I’ve created a separate article for you where I go through what the typical salon revenue model looks like here . In the same article, you’ll also find 6 different revenue models that you can implement to grow your business further.
Let’s go through the most common ways salons make money. I’ll then give an example of how you can outline your salon revenue model in your salon business plan.
How do Salons Make Money?
Salon’s primary income comes from service revenue. For the average US hair salon, this accounts for about 92% of the income generated. On top of that, a small portion of income is generated from retail sales (8%).
But there are several other ways a salon can make money: service revenue, retail sales, and professional education – just to name a few.
Overview of the common income streams for a hair salon
Example of a Salon Revenue Model
Let’s continue to use the salon located in the busy business district also in the example.
“The beauty salon will make money by offering full service packages to business women working in the area with high income but limited time. Retail products will be part of the pre-defined packages and make up 25% of total salon turn over. The services packages will be offered on a subscription program or sold separately at a premium price.”
Membership & Subscription Revenue Model
Subscription-based programs for salons and spas, like in the example above, are growing in popularity. It can create much more stability in your business as you know what income you’ll have in the months ahead.
If you’re already using Mangomint , it’s easy to set up multiple membership programs like this (see screenshot below). Just define what should be included and how often your client should be charged. So you cannot blame not offering this on technology anymore 🙂
5. Salon Expenses
Your salon will generate not only income but also expenses. Your bigger cost pools should be reflected in your salon business plan. Let’s look at some examples of what they could be.
Monthly Salon Expenses List
The biggest monthly expenses a salon has are:
- Rent and utility bills
- Product purchases
The exact costs will vary from salon to salon depending on location, the number of staff, and the business model you choose.
Tip: To estimate what your salon insurance cost will be you can read my salon owner’s guide to insurance costs here .
Salon Startup Cost List
Common costs when starting a salon are:
- Rent deposit
- Buying out previous salon owner
- Leasehold improvements
- Salon equipment
- Initial supplies and inventory
- Certifications and licenses
- Salon launch marketing
- Legal fees and salon insurance
For a more detailed picture of salon startup costs, you can read my article where I walk through all the costs of starting a salon here .
Given salon equipment can be high, I’vs also put together a list of hair salon equipment that you’ll need when you open a hair salon here .
Another resource you may find helpful is also my list of salon software and other tools you may need to start your business .
Example of Salon Expenses Description
“Wages will be the biggest cost element (40%) and secondly the rent (25%) in the busy business district. Salon profit margin target is 20% of total turnover.”
6. Target Salon Client and Market
Do you know how many people live or work in the area where you salon is (or will be) located? And do you know how many of those that fit in the relevant target group for your salon?
These will be important numbers to know as you’re choosing the location of your salon and crafting your plan and salon concept.
It’s impossible to please everyone. If you try to make your salon relevant for everyone you’ll end up not being relevant for anyone. So define who your ideal salon client is and estimate what the size is of that market.
That is, how many people fall in to your client category and how much are they ready to spend on beauty services. This will make up your target market.
When you speak to everyone, you speak to no one Meredith Hill
Example of Target Market for a Salon
I’ll continue to use the same example salon as before.
“The salon offers express beauty package services to business women, aged 24-55, working in the financial district. There are 5’000 women in the target group that are working on walking distance of the salon. The women spend on average $100 per month on beauty services. The total relevant market is estimated to $6 million per year. “
7. Salon Competition
Do you know how many other salons there are in the area where you have your salon (or are planning to open a salon in)?
The more salons there are in the area compared to the people living or working there, the tougher competition will be.
But fierce competition doesn’t necessarily mean it’s impossible for you to be successful.
You’ll, however, need to study your competition closely. What services do they offer? How are their salons positioned?
When you’re clear on what your competitors are doing, you can define what should be your unique points of difference. Armed with that, you can take your piece of the pay. Or even make the pie of customers bigger if you’re bringing something that no one else is offering in the area that will attract new clients who were not previously going to salons.
Example of Salon Competition Study in Your Plan
“There are 5 other beauty salon in the area. Two hairdressers, one barbershop, one nail salon, and a spa. However, no one offers the complete services packages that we will offer. Given the search for convenience and fast services is high, we expect we can take one third of the market over the coming two year. As total market is $6 million, this would mean $2 million market for us.”
8. Salon Marketing Activities
It doesn’t matter how good you are at your craft if people don’t know your salon exists.
But marketing is much more than activities that attract new clients to your salon . It can influence all the 7 ways you can grow your salon business .
But where do you start? There are so many salon marketing activities you could put in place.
The choice of salon marketing activities to implement depends on the challenges your salon face. If you need to build salon clientele fast , you should focus on that. If you need to get your existing clients to come more often, you should focus on that.
In this section of your business plan, you need to make those choices and decide on the activities you need to do to set your salon up for success.
Let’s go through what you should consider and an example of what this could look like in your salon business plan.
Picking the Salon Marketing Activities to Focus on
Now that you know who your ideal client is and how many there are in your area. It’s time to lay out the marketing activities that you’ll focus on.
There are A LOT of things you can do regarding marketing. I have curated a list of the most effective salon marketing activities you can implement here .
But you cannot do all of the salon marketing ideas in this list.
Instead, pick 5 now.
And make sure you can do them well.
You can always come back later to try out more things. I would however be surprised if your salon marketing plan doesn’t include creating your salon brand , building a salon website , and a social media strategy for your salon
But hey, you decide 🙂
Example of a Hair Salon Marketing Plan
“Our salon will not be located on the high street with a lot of people walking by and noticing us. This is why are marketing effort will be focused on running targeted Facebook advertizing to women working in the area with an attractive intro offer. We’ll also focus on local PR in the area as well as our salon Instagram where we will promote the salon in partnership with local activities.
9. Salon Employees & Partnerships and their Roles
Are you starting your salon alone or together with a partner?
Do you need to hire key people to help you launch your salon business?
Is your salon part of a franchise?
It’s quite likely that your salon will depend on other people and organizations in some way or form. This is what you should reflect in this section of your salon business plan. Remember to specify what the role is of each person involved in your business.
Example of Salon Employees & Partnership Section
“The salon will be owned by John & Lisa and will operated with four employees from start: two hair stylists, one nail technician, and one aesthetician specialized on skin care services. The salon will also allow for booth rentals and allow two stylists to rent a chair when the salon has opened. A highly skilled and motivated salon team will be at the core of the business which is why we will invest over 4% of net sales in team capability.”
10. Major Milestones and Salon Business Goals
Setting up a salon business is not a small project. A lot of things need to be done.
You need to obtain the required salon licenses , get salon business insurance , find a salon location , buy salon equipment , market yourself to new salon clients , etc., etc.
It’s frankly overwhelming to think about all the things you need to do next. It’s like a big dark cloud of things that needs to get done. But where do you start?
You need to break down this dark cloud into achievable milestones and goals. Then tackle them one by one.
If you don’t break down these massive projects into smaller tasks, you’ll either get stressed out or start to procrastinate and not get anything done instead.
This is why you need to outline your major milestones and goals.
It’s an exercise that will take a bit of time, but it’s also the most important one. It will help you significantly as you get started, and it will give confidence to investors or other people looking at your salon business plan that what you’re setting out to do is realistic.
Your milestones can be a mix of financial goals and specific activities you must complete by a certain time. Try to include all the bigger things that need to be done from now until your salon is up and running and is meeting your break-even target.
You can make this as sophisticated as you want. I would encourage you to get quite detailed here with specific and concrete steps outlined in an excel file. However, for the sake of the business plan, you can keep it to a bullet-point list of the major achievements and goals.
Salon Milestones Example
Obtain all required salon licenses by May 1st Secure startup funding by May 15th Identify a salon location by June 1st Register the LLC by June 15th Complete salon renovation work by July 15th Get first paying customer by July 15th Hire first employee by August 1st Make first $3,000 in sales by September 1st Reach break even target by January 1st
You can keep your plan at a high level in your plan but, again, you’ll need to break it down even more thoroughly in a separate document with exact financial targets to meet by a certain point in time.
Download Your Free Salon Business Plan Template
You now have all the theory you need to create the most helpful salon business plan for your business. I know it’s been quite a long read, but you must get this right. I hope you feel that this was the best investment of your time today.
But it’s time to move to action now.
It’s time for you to create your salon business plan.
You can download the lean salon business plan template I’ve created for you using the link below. This give’s you a straightforward and simple one-page business plan format that you can edit in Word.
If you prefer to use your Word text editor to create the plan, I’ve created a template you can use.
Salon Business Plan PDF
Download my simple one-page salon business plan template in PDF version.
Salon Business Plan Doc
Download an editable Microsoft Word document version of the salon business plan.
I’m so excited.
You’re embarking on an adventurous journey now.
And your new salon business plan will be your best companion on it.
Congratulations on taking the time to go through this salon business plan guide – it was long, I know. But maybe the most important thing you did today.
Salon owners that plan ahead are significantly more likely to see success, so this was well-invested time on your side. I’ve tried to make this guide the best possible resource for you that are about to create a salon business plan, and I hope you’ve found it helpful.
If you did, you would make my day if you wanted to share it with your friends using the social media buttons on this page.
Any questions, just let me know in the comments box below.
All the best with your new salon business plan!
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Salon & Spa Business Plans
Did you know each of these plans was created in LivePlan? Learn More
Day Spa Business Plan
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Hair And Beauty Salon Business Plan
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Hair Removal Business Plan
Laser Dreams specializes in laser hair removal, electrolysis and microdermabrasion.
Hair Replacement and Salon Business Plan
Herr Haar is a spa and beauty salon specializing in hair replacement services, as well as offering hair styling, massage, and beauty products.
Hair Salon Business Plan
Cranium Filament Reductions is a hair salon that strives to provide their customers with a quick and budget-friendly experience.
Health Spa Business Plan
SoulSpace Holistic Spa and Salon offers its customers the unique combination of hair styling, massage, body and energy work, and health training in a beautifully serene setting.
Massage Products Business Plan
Massage Tools Products Inc. sells massage tools to ease chronic overuse injuries and discomfort experienced by busy massage therapy professionals.
Men's Salon Business Plan
Jonpaul's is an upscale old-world gentleman's barber shop offering premium grooming services and products.
Retail Property Sub-leasing Business Plan
Galerie de Beaute will be the first salon mall in the state, sub-leasing mini-salon units to hairdressers, nail technicians, aestheticians, and massage therapists.
Spa Health Club Business Plan
Visions is a health club that is concerned not only with physical beauty but also with mental well being. It is a combination spa, salon, and health club.
Tanning Salon Business Plan
Tropical Tan is a start-up tanning salon company seeking financing. In addition to selling tanning booth sessions, they will also retail swimwear, and skin care and tan enhancing lotions, oil, etc.
Opening up a salon or spa is all about providing exceptional customer service. But in order to focus on exceeding expectations, you need to make sure you have everything else in order. That’s where your business plan comes in.
Get inspired by our collection of sample business plans beauty salons, hair studios, barbershops, hair salons, day spas, hairstylists, and other salon and spa type businesses. It’ll help ensure that you have everything planned out so you can focus on what really matters, the experience of your customers.
If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.
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Beauty Salon Business Plan Template
If you want to start a beauty salon business or expand your current one, you need a business plan.
Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their beauty salons.
Below are links to each section of an example beauty salon business plan template:
Next Section: Executive Summary >
Beauty and Hair Salon Business Plan FAQs
What is the easiest way to complete my beauty salon business plan.
Growthink's Ultimate Salon Business Plan Template allows you to quickly and easily complete your salon or beauty bar business plan.
Where Can I Download a Beauty Salon Business Plan PDF?
You can download our beauty salon business plan sample pdf here.
Our beauty salon business plan PDF template is a free resource to help you get started on your own business plan. This is a business plan template you can use in PDF format for a beauty bar or salon.
What Is a Salon Business Plan or Beauty Bar 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’s goals, business model, the type of services you will offer (beauty services, spa services, nail services, skin care services and/or hair salon services), management team, target market, and a marketing plan for the many ways you can reach new and existing clients. It also includes market research to support your plans and allow you to find the perfect salon location.
A comprehensive financial plan is also key to include so you can show investors the potential viability of your business.
Why Do You Need a Business Plan?
If you’re looking to start a beauty bar or salon or grow your existing business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your new salon in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.
What Are the Sources of Funding for a Beauty Salon?
With regards to funding, the main sources of funding for a new beauty 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 salon business plan. Such a plan will give them the confidence that you can successfully and professionally operate your own business.
The second most common form of funding for any type of 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.
This is all true for a new salon business plan or a plan to grow an existing salon business.
BEAUTY SALON BUSINESS PLAN OUTLINE
- Beauty Salon Business Plan Home
- 1. Executive Summary
- 2. Company Overview
- 3. Industry Analysis
- 4. Customer Analysis
- 5. Competitive Analysis
- 6. Marketing Plan
- 7. Operations Plan
- 8. Management Team
- 9. Financial Plan
- 10. Appendix
- Beauty Salon Business Plan Summary
Other Helpful Business Plan Articles & Templates
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- Write for Us
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
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The salon business plan guide every owner needs
Your guide to a salon business plan
Being a successful salon owner requires a variety of skills – from customer service, to marketing, financial planning, operations. And don’t forget the salon services themselves, which involve staying up-to-date on the latest trends, plus getting to know your clients and their preferences.
Get a little help getting started with this three-step guide for developing your salon business plan. With a cohesive business plan at the start, you’ll have a strategic framework for the challenges that come with being a business owner. And your salon will be on its way to becoming a neighborhood favorite in no time.
Step 1: Brainstorm your salon goals and vision
Your salon business plan will cover everything from your goals, salon operations, and your strategy. Setting goals will help you get started and plan for the future. Start researching and gathering ideas for the following:
- What the inside of the salon will look and feel like
- Your goals for the customer service and experience
- Your goals for the employee experience
- What your business culture will be
- What space you’d like to fill in the local community
- What niches you can fill in the beauty industry
- The local market
- Your target demographic
Your business plan will help you turn your ideas into actionable strategy and goals.
Step 2: Build your salon business plan
At this stage, think of your business plan as a living document with sections you may want to revisit or update as you think through your ideas and goals more.
With your vision in mind, include these essential elements in your salon business plan:
The executive summary details your overall business idea, and can include the value you’ll offer, mission statement, services, and target clients. This section can also include background information such as who the founders are, the salon’s location, and why you decided to open a salon.
Even with those details, your executive summary should be a quick read, effectively sharing the most important information to prospective partners and collaborators. San Diego-based nail salon Kalì Zoì combines their passion for nail art with their love of plants as the nail salon doubles as a plant shop. That’s something you’d want to include in your executive summary.
This section is like an extended version of your executive summary. It provides detailed information about the key parts of your business, such as:
- The history of your salon and its goals
- What specific beauty services and products you plan to offer
- Your salon’s financial history and growth
- An extended description of your salon’s goals and objectives
Share any niches your salon plans to fill in your local area. For example, if you plan to be a hair salon business that caters to LGBTQIA+ neighbors like Austin’s Birds Barbershop , expand on that in this part of your business plan.
A market analysis demonstrates that you’ve done your research about what your competitors are offering and shares your unique advantage in your local area.
Any gaps you notice in competitors’ services are opportunities for you to fill at your salon. Make note of existing salons’ strengths and weaknesses, plus any other information you can source regarding your local target market, such as:
- Statistics on the local industry outlook
- Client demographics
- An analysis of your competitors’ products and services
- What your salon can offer that others don’t
Structure and organization
In this section, you’ll include your salon’s legal structure, whether you’ll be running your business as a sole proprietor or forming a limited liability company (LLC).
This will depend on other factors of your salon plan, like financial projections, whether you’ll be paying other employees or collaborating with other businesses. No matter what, you’ll want to research which legal situation makes the most sense for your salon, or work with a lawyer or accountant to guide you. Bonus points if they’ve worked with other local businesses in your area.
Are you planning to run the salon yourself, or will you work with partners? What will the management structure look like? How many employees will you have? These questions are key as you begin hiring, but are also a major part of planning how your business will operate.
As you plan your salon’s management structure, think about who you’ll hire, what kind of employment experience you’ll be creating, and how they can contribute to the salon’s overall success, long-term and in day-to-day operations.
Products and services
Whether your salon will maximize profit with a full retail operation, or your unique service offerings will set you apart, this is the section to share it all.
Include the products and services you’ll offer, listing your service menu and pricing, plus what percentage of your revenue these different income streams will generate.
Here, you’ll lay out how you plan to promote your services and bring in clients. This section of your salon business plan will be flexible, with your strategy evolving as your business grows and service offerings change.
To get you started, research marketing options and fill in this section with the essentials, including:
- How you’ll attract new clients
- How you’ll retain clients and build loyalty
- How you’ll become a local favorite in your community
- Where and how your beauty salon will advertise
- Any associated marketing expense and funding sources
As a salon, it’s especially important to have a plan to reach your local community. Invest time and marketing efforts on a platform that makes it easy for local clients to find you, like setting up a free Nextdoor Business Page . Once you sign up, you unlock an instant following of everyone who lives within two miles of your business’s neighborhood.
This section is where you list your salon’s financial history, projections, budget, and outlook . This data will be crucial to any potential lenders or investors.
Include financial plans for the next three to five years, and the salon’s financial history going back three to five years, if you have it. If the salon is already earning income, include statements. List any potential sources of funding and plans for how you’ll sustain your business as you get started.
Supporting documentation, resumes for existing staff, recommendation letters, and any other relevant documents that show your preparedness can be included in your appendix. These details could set you apart from other salon owners and make your salon business plan more attractive to future partners, investors, and collaborators.
Step 3: Add salon-specific business plans
The salon industry comes with its own rewards, but also with unique situations that require special strategies. Below are two salon business plan example sections you may want to consider.
According to stylist Hunter Donia of Sola Salon Studios , establishing clear guidelines and policies for customers can help your business run smoothly.
Speaking to Modern Salon about salon policies, Donia said:
"When you’re first starting out you have all these creative and exciting ideas—you’re thinking about what the wall color is going to be, what the decorations are going to be—but you forget about some of the really important fundamentals you need as a business to protect you and guarantee your success.”
As you start out, plan for surprises with salon-specific business policies, including:
- Returns (for any products)
- General salon etiquette
Including these policies in your business plan will help you prepare for turning stressful situations into exceptional customer service.
Many businesses experience ups and downs as the seasons change. How you deal with these fluctuations and slow periods can make a big difference in your salon’s long-term success. Going into each season with a plan can help you avoid unexpected financial losses.
Ronit Enos, owner of Boston-based salon Maxime and founder of Salon Cadence , notes that your business plan can be a perfect place to set out these seasonal strategies.
“If you instill just a couple things into your business plan to account for seasonal slumps and vacations, you can level out your earnings throughout the year and be more financially sound.”
Enos’ strategies include ideas to keep customers coming in during the slow seasons, such as:
- Seasonal gift cards
- Vacation plans
- Promotional offers
- Smart scheduling
Find your salon’s people and purpose with Nextdoor
One last thing to include in your salon’s business plan is a strategy to help you reach your local community where they, and your salon, are.
As a salon owner, connecting with your local community will be an integral part of getting your business off the ground. Make a free Nextdoor Business Page part of your salon business plan to source your first and forever clients, your salon’s neighbors.
Build awareness for your salon’s opening, and keep clients coming back for more with Nextdoor’s easy-to-use hyperlocal advertising tools. Engage your community and grow word-of-mouth business on your way to becoming a local go-to. With Nextdoor, your neighborhood is more than just part of your salon’s business plan. It’s part of your purpose.
U.S. Small Business Administration. Write your business plan. https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
Modern Salon. Salon Policies for Independents to Decide on Before Opening. https://www.modernsalon.com/1079250/salon-policies-for-independents-to-decide-on-before-opening
Modern Salon. How to Create Financial Security and Consistency in a Salon. https://www.modernsalon.com/616849/how-to-create-financial-security-and-consistency-in-a-salon
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Salon Business Plan Sample
Beauty salon business plan for starting your own salon service
People like feeling good about themselves, and a salon business can help them to achieve that. The Professional Association estimates the salon and spa industry contributes approximately $40 billion annually to the U.S. economy Approximately half the industry is classified as salon business offering mostly hair care services. However, entrepreneurs interested in making a beauty salon business plan have many options as to the variety and level of services offered, ranging from a beauty salon business plan to a full-service spa. Salons can be setup in innumerable ways, so the purpose of the beauty salon business plan is to pin down the details to improve the chances of long-term success. Planning should always start with identifying the customer. There may be several customer persona’s depending on your target market, people over 50 years old are a very different market to the Gen X clients.
2.1 the business.
Julia’s Salon will be a licensed and registered salon located near Brookhaven College, Atlanta. The business will be based on providing hair-cutting, styling, coloring, skincare and other services in the salon as well as by going to people’s homes.
Before starting a salon, it’s essential to make a beauty salon business plan and enlist major decisions about your start up salon. In this sample business plan for a salon, we’re providing all details of Julia’s Salon ranging from startup expenses to management structure.
The main working structure of Julia’s Salon include hairdressers, makeup artists, expert cosmetologists, and general assistants. Besides them, the beauty salon business plan will hire sales executives, accountants, and web developers.
To ensure efficient working from the first day, the salon will be making all arrangements one week before the launch. Staff will also be hired a week before because the owner of Julia’s Salon wants to assess staff herself.
Our major customers will be the young and adult men and women of our society. Besides them, senior citizens and teens are also expected to avail our services.
2.4 Business Target
Our target is to become the most renowned salon in our vicinity and to establish an average repeat customer rate of 60% by the end of the first year.
3.1 company owner.
Julia’s Saloon will be owned by Julia Fox. Julia is a graduate in social sciences. She has taken many courses related to works. After working for three years in Sports Clips she has gained expertise in hair care and styling.
3.2 Why the salon business is being started
Julia has always remained interested in cosmetics works. It was due to her passion and interest in the industry that she got a job in a top company. As Julia wanted to start a salon she took several courses relevant to the field while she was in her college.
A few months ago she started exploring beauty salon business plan s and finally decided to initiate her own salon to generate profit through a business that is solely her passion. She believes that an exceptional mission statement for a salon can lead her to the success, she is looking for.
3.3 How the salon business will be started
Julia decided to rent a large ground story to convert it into a salon. For writing a beauty salon business plan , she decided to hire a marketing and financial expert.
After acquiring the required licenses and registrations, Julia will purchase the required equipment such as furniture, mirrors, cosmetic tools and accessories, hair styling tools, hair treatment products, and other things.
She has also decided to hire her staff a week before the lauch so that she can assess them and they can understand the beauty salon business plan environment and aims. To facilitate their clients, Julia’s salon will be providing services by going to their homes too. Moreover, the salon will set up a web-based system so that customers can pre-order or pay online.
Services for Customers
Before formulating a beauty salon business plan outline you must finalize which services you’ll be providing your customers because this decision of yours will be affecting the business in the long run.
The services as mentioned in Julia’s Salon business plan are given in detail here.
Our major salon service will comprise of works related to hair. However, we’ll also offer some other services as described here:
Hair Cutting: Our primary service will be cutting the hairs of people of all ages and gender. We’ll hire haircut experts so that every customer will be able to get the look of their desire.
Hair Styling & Coloring: We will hire experts who will be able to make several hairstyles according to the customer’s looks and desires. Moreover, we’ll also provide services like hair coloring, highlights, color blending, hair shadowing, etc.
Makeup Services: We will provide makeup services for parties and usual events.
Hair & Skin Care Services: Our third major service will be providing hair treatments such as Fusio-Dose and protein treatment. Moreover, we’ll also be offering services in skincare and treatment like manicures, pedicures.
Salon Marketing Analysis
Before you start a salon you must know what are objectives of a salon business plan . Generally, the aim is to satisfy your customers by enhancing their looks, and that is only possible when you have studied the market and market trends thoroughly.
Before finalizing your beauty salon business plan template , you must research on what are the traditions, norms and modern fashions that are arising in your target market. Only then you will be able to recognize customers’ demands and decide what aspects to include in your beauty salon business plan to meet the expectations of your customers.
5.1 Market Trends
Hair salons are one of those businesses that are flourishing in the market for a long time. Currently, 972,000 such businesses are running in the United States. According to the IBISWorld report, the business has seen a 1.4% growth rate over the period of the last five years. The industry is responsible for employing more than 1,352k people and has generated a revenue of $47bn in only 2019. To summarize, the salon business plan has a lot of potentials and can be extremely profitable if you plan it accurately.
5.2 Marketing Segmentation
The detailed marketing segmentation of our target audience is as follows:
5.2.1 Young & Adults: Our first target group will be young adults between 18 and 35 years of age. The people of this age run after the latest fashions and styles. That’s why we’ll be coming up with hairstyles, coloring and makeup techniques that are popular in people of this age group.
5.2.2 Senior Citizens: Our second target group comprises of citizens above 35 years of age. Since such people are interested in acquiring decent looks while following their norms and traditions thus we’ll be carrying out research to provide services of their interest.
5.2.3 Teens & Kids: Our third target group is expected to be accompanied by other target groups. For this group, we’ll be providing hairstyles and services that are liked by children and teens.
5.3 Business Target
- To balance startup expenses by earned profits by the end of the first fifteen months
- To achieve the net profit margin of $10k per month by the end of the first year
- To maintain customer repeat rate of 60% by the end of the first year
- To maintain an average rating of 4.6 by the end of the first year
5.4 Product Pricing
Our prices will be in the same ranges as that of our competitors, however, to get introduced to a wide group of people we’ll be offering several discounts in the first three months.
Excellent preparation of business plan ….
Excellent preparation of business plan reporting and timing of all deadlines. I am extremely satisfied with the services. Thank Alex for all your excellent work.
This section should describe how you are going to find your ideal client and make sure they become aware of your products and services. Once you have found your clients, how will you attract and retain them? If you have a bricks-and-mortar business, is the location good for your type of clients? Does your ideal client read traditional printed advertising or are they more focussed on digital marketing? If online is important, describe the process your clients go through to make a purchase. Is it quick and easy? Starting a beauty salon business plan will help you to focus on these points.
In this salon marketing business plan for a salon sample we are providing the competitive aspects of Julia’s Salon as well as the advertising schemes, the salon will be employing to attract more and more customers.
6.1 Competitive Analysis
Our biggest competitive advantage is our top-class service. We’ll use high-quality material with extreme care to serve our customers. Secondly, our staff is expert in their respective domains. Besides, we’re highly customer-care oriented and we’ll always be ready to do unlimited modifications to satisfy our customers. Lastly, we’re providing home services because senior citizens usually want to have such tasks done at their own homes.
6.2 Sales Strategy
- We’ll ensure a strong web presence
- We’ll advertise us through Facebook and Instagram
- We’ll get featured in magazines and local newspapers
- We’ll offer a 20% discount on hair treatment services for the first month
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
To get an idea of how much you’ll need to spend on your business plan for a salon , you must first create a list of salon equipment with price and a list showing your employees, their job responsibilities and salaries.
7.1 Company Staff
Julia will manage the salon herself and hire the following people
- 1 Accountant to take financial records
- 1 Sales Executive to carry out the company’s sales business strategy plan
- 5 Hairdressers/Hairstylists/ Hair Coloring Experts to do clients hair
- 2 Makeup Artists to do client’s makeover
- 1 Cosmetologist to do with hair and skin treatments
- 2 Manicure/Pedicure Specialist
- 4 General Assistants to carry out general tasks
- 2 Drivers to provide transport
- 1 Web Developer to manage company’s sites
- 1 Customer Representative to receive customers
The last step before starting your salon is to craft a detailed map showing and analyzing the investment group business plan for salon, costs of equipment, payrolls, taxes, and other expenses. A financial plan for a salon business plan must contain all the financial statements, details of projected profit and loss and measures to achieve estimated profits.
We’re providing a sample of Julia’s financial plan for anyone who wants to benefit. However, it is highly recommended to seek help from a financial advisor to have an accurate financial plan according to your figures.
8.1 Important Assumptions
8.2 brake-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
Download Beauty Salon Business Plan Sample in pdf
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Beauty salon business plan template
Download this beauty salon business plan template in PDF or Word format, or tailor it to your project directly in our business plan software.
Discover our beauty salon business plan template
Our beauty salon business plan template gives you the structure to write a professional plan.
Not accustomed to writing business plans? Our beauty salon business template will turn a typically challenging process into a total breeze.
Modelled on a complete business plan of a beauty salon in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.
Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.
7 day free trial. No credit card required. Beauty salon business plan template available with paid plans only.
How to use this beauty salon business plan template
Edit the beauty salon business plan template online, or download it.
There are 3 ways to use this template:
- Edit it online: you can adapt this template to your business idea by changing the text or the financial forecast directly in our business planning software
- Download in PDF: if you're just after a little inspiration, you can download the beauty salon business plan template in PDF to read over it
- Download in Word format: want to edit your plan on Word? Simply export the beauty salon business plan template to Ms Word (.docx) format
Beauty salon business plan template content
This template includes a complete beauty salon business plan example, with a financial forecast and the following sections:
- Executive summary: the executive summary gives the reader a clear and concise overview of your business idea
- Company: this section lays out the structure of your business, including its location, management team and legal form
- Products and services: here, you'll give an overview of the items sold by your beauty salon (beauty and care products) and services offered (tanning sessions, eyelash extensions, hair removal etc.)
- Market analysis: the market analysis is where you’ll demonstrate that there is a strong demand for your beauty salon through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
- Strategy: this section highlights your beauty salons' game plan when it comes to pricing, marketing and mitigating risks along the way
- Operations: this step lays out your operational organisation, including the recruitment plan
- Financial plan: the financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statements).
- Appendices: this part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).
Executive summary for a beauty salon business plan
The executive summary gives the reader a clear and concise overview of your business idea.
Our beauty salon's executive summary is formed of the following subsections:
- Business overview: in this subsection, we outline who the beauty salon founders are, what legal form they've chosen for the business, and the rationale behind the choice of their location
- Market overview: in this subsection, we summarize the conclusions of the market analysis performed by the beauty salon's owners and explain what age groups and genders they aim to target (our beauty salon business plan template targets women aged between 25 and 40)
- Financial highlights: in this subsection, we give an overview of the forecasted financial performance of the beauty salon over the first 3 years of operation
- Our ask: in this subsection, we outline the amount of financing required to start the beauty salon and how it's going to be funded (the founders are seeking a bank loan to start their beauty salon)
Company overview included in our beauty salon business plan sample
This section lays out the structure of your business, including its location, management team and legal form.
Our beauty salon business plan template's company section is formed of the following subsections:
- Structure & Ownership: in this subsection, we outline who the beauty salon's shareholders are and what legal form they've chosen for the business
- Location: in this subsection, we present the area surrounding the location chosen for the business and the layout and main features of the premises
- Management Team: in this subsection, we give an overview of the background of each of the beauty salon's founders, explain how they met and why they decided to start a company together
Products and services offered by the beauty salon
The products and services section is where you will present the different types of body and facial treatments offered by your beauty salon and state any products sold.
In our beauty salon business plan template products and services section, we cover:
- Tanning sessions: special tanning boots that help oxidize our clients' skin and make it darker
- Eyelash extensions: fibres applied strand-by-strand to our clients' natural eye lashes
- False nails and manicure: applied over clients' natural nails to make them look prettier
- Hair removal sessions: helping remove unwanted hair from our clients' skin
- Slimming treatments: a variety of treatments that help our clients lose fat tissue and become leaner
- Face, hand, foot and body care packages: a combination of two or more of the services stated above (for e.g., tanning sessions and hair removal)
- beauty and care products for sale: a selection of professional beauty and care products that clients can use at home to keep their face and skin in good condition
Market analysis for the opening of the beauty salon
The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
Our beauty salon business plan example's market analysis section is formed of the following subsections:
- Demographics and Segmentation: in this subsection, we explore the market in depth. We look at the supply and demand sides both at the national and local level, analyse the hot trends perceived by the founders, and the key statistics that will help the founders build their positioning
- Target market: in this subsection, our founders explain who they view as their ideal customer (our beauty salon business plan template targets women aged between 25 and 40)
- Competition: in this subsection, we take a look at the direct (independent or franchised beauty salons nearby) and indirect (online beauty websites and other website that sell care products) local competition to ensure we have a differentiated positioning and that the market is large enough to accommodate the arrival of a new beauty salon
- Regulation: in this subsection, we give an overview of the main regulation applicable to our beauty salon
Setting the strategy for our beauty salon
This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way.
Our beauty salon business plan template strategy section is formed of the following subsections:
- Pricing: in this subsection, we explain how we set the prices of our main categories of services (tanning sessions, eyelash extensions, false nails and manicure, hair removal sessions etc.) as well as products (beauty and care items sold to customers) and the rationale behind our choice
- Marketing plan: in this subsection, we explain what action we'll put in place to build awareness and loyalty among our beauty salon customers
- Milestones: in this subsection, we give an overview of the main goals we set for ourselves for the next 3 years
- Risks and Mittigants: in this subsection, we perform an assessment of the medium and long-term risks that could jeopardize the financial viability of our beauty salon and outline how we intend to mitigate them
Operations section of the beauty salon business plan template
This part lays out the company's operational organisation, including the recruitment plan.
Our beauty salon business plan operations section is formed of the following subsections:
- Personnel plan: in this subsection, we explain what our opening hours will be and explain the responsibilities of each of staff member in our beauty salon
- Key assets and IP: in this subsection, we list the assets and intellectual property rights which are critical to our business operations and explain how we will secure and protect each of these
- Suppliers: in this subsection, we give an overview of the main suppliers we will use our what commercial terms have been negotiated with them
Financial plan included in our beauty salon business plan template
This section presents the expected financial performance of the beauty salon over the next 3 years.
Our beauty salon business plan example's financial plan is formed of the following subsections:
- Start-up funding: in this subsection, we list the cost of each item required to launch the beauty salon
- Important assumptions: in this subsection, we explain the methodology and the main assumptions used to build the beauty salon's financial forecast
- Sales forecast: in this subsection, we detail the expected revenues and growth rate for our beauty salon in the coming years
- Cost structure: in this subsection, we list all the expenses required for our beauty salon to operate smoothly
- Projected Profit & Loss statement: in this subsection, we analyse our forecasted P&L and comment on the expected profitability of our beauty salon over the next 3 years
- Projected cash flow statement: in this subsection, we analyse the expected cash generation of the beauty salon
- Projected balance sheet: in this section we give an analysis of the liquidity and solvability implied from our balance sheet
Appendices of the beauty salon business plan template
This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).
Our beauty salon business plan template's appendices include:
- A maturity profile chart showing the principal repayments of their loans over the next 3 years
- A monthly cash flow forecast: showing how much cash is being generated or consumed each month over the first 3 years of operations
Beauty salon business plan template sample
Executive summary, business overview.
Marsab Beauty Institute (MBI) will be a beauty salon located in Caen's city centre.
A large percentage of Caen's population (100,000) is situated in the city centre, making it an ideal location for our beauty salon.
Our beauty salon offers the following services:
- tanning booth sessions
- eyelash extensions
- acrylic nails and manicures
- hair removal
- face, hand, foot and body treatments
- slimming treatments
- the sale of beauty products
MBI will be managed by its three founders. They have a vast amount of experience in the beauty salon industry (17 years overall, 3 in managerial roles).
What makes our salon different to others is that we use organic beauty products and focus heavily on sustainable practices. These values emphasise our stance as an eco-friendly business.
Key figures from the French beauty and wellness market
The French beauty and wellness market was worth an estimated €2.9 billion in 2014.
The market is characterised by strong growth potential, particularly given the low penetration rate in the "male customer segment" as well as the growing interest of older citizens in skincare.
Caen has a population of approximately 108,000 - 40% of whom are women aged 15 to 74 and this profile forms our main target audience.
According to an INFRAFORCES survey conducted by the Confédération Nationale Artisanale des Instituts de Beauté in 2012, 27% of French people visit beauty salons regularly - meaning that there are 30,240 active buyers in Caen.
Taking into account the frequency of beauty salon visits and the average customer spend of €40 (estimated by the CNEP):
- Caen's city centre is valued at €3.56m
- The overall Caen market is valued at €13.54m
There are 17 beauty salons in Caen, the majority of which are situated in the city centre. We will also set up in this region because our target clientele come here often.
Despite competition from other beauty salons in the city likely to be very high, we believe that the local market is dynamic enough to accommodate a new startup (MBI).
Marsab Beauty Institute differentiates itself from competitors thanks to the following factors:
- Being located in the heart of the Caen's shopping district
- Possessing a highly experienced team
- Competitive prices
- A distinct eco-friendly & health conscious positioning
We expect the beauty salon to be profitable from its second year of trading.
We expect to achieve a turnover of €153,244 and an EBITDA of €-2,371 in year 1. The operating loss is mainly due to the time needed to acquire and retain customers.
We expect to generate a turnover of €177,367 and a EBITDA of €11,304 in year 3.
The business should be sufficiently capitalized to enable us to meet our loan repayments and while retaining sufficient headroom to deal with unforeseen circumstances.
Marsab Beauty Institute (MBI) will require an initial investment of €70,000.
Our partners will contribute €50,000 (i.e., 71% of the total amount).
We would like to obtain a bank loan of €20,000 to complete the financing.
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Beauty salon business plan template faq.
A beauty salon business plan is a written document that sets out the commercial, operational and financial objectives of the company over the next 3 to 5 years.
It consists of two main parts:
- A written part that presents, in detail, your beauty salon business, the team, your strategy, and your medium-term objectives.
- A financial forecast that highlights the expected profitability of the beauty salon and the initial funding requirements.
The lack of business planning is one of the main reasons why more than 50% of startups fail within 5 years. If you're starting a beauty salon, writing a business plan is a must-have in order to reduce the risk of failure of your project.
Business plans are also required by most lenders and investors in order to secure financing, therefore a business plan is also highly recommended if you're seeking a loan or equity investment for your beauty salon.
Writing a beauty salon business plan without The Business Plan Shop can be both error-prone and time-consuming - whether you're new to entrepreneurship or experienced:
- You'll need to research the structure of a business plan, what to include in each section, and what key elements investors and lenders expect to see
- You may encounter writer's block (especially if it's the first time you're writing a business plan for your beauty salon)
- You'll need to create a financial forecast on a spreadsheet which requires a solid understanding of accounting and financial modelling in order to be done without error
- You'll need to spend hours formatting financial data on Excel or Sheets before it's ready to integrate into your business plan
- Any updates to your beauty salon business plan or financial forecast will need to be done manually
Luckily for you, The Business Plan Shop's online platform and beauty salon business plan template guide you through every stage of writing a business plan, so that you can spend more time managing and growing your business instead.
Our editor follows a best-in-class structure for professional business plans. Each section and subsection includes examples and instructions to help you, while our business plan templates provide further inspiration if you're stuck.
Our financial forecasting software helps you create a forecast and integrate it into your business plan with ease. Anytime you update your data, your business plan automatically updates.
And with our forecasting software all the calculations are done for you, without errors.
The budget to start and run a beauty salon will depend on the exact concept and location.
A mobile salon (using a stall, truck or other means to offer beauty services) would likely require a lot less startup costs than an actual salon. This is because rent and overheads, amongst other expenses would be a lot lower.
Hiring a web designer to create your website would also increase startup costs considerably. Experienced web designers can create a stylish website that matches your brand's logo and theme and looks a lot better than a normal website.
As an example, in our beauty salon business plan template the total initial funding requirement amounted to €70,000, with the founders contributing €50,000.
In order to assess the exact budget for your beauty salon idea, you need to do a financial forecast using a financial projection tool such as the one we offer .
The package we offer at The Business Plan Shop goes way beyond a simple blank template you need to fill. With our platform you get:
- Access to one of the best business plan software on the market
- Access to our beauty salon business plan template which contains a complete example of a written business plan and financial forecast to start a beauty salon
- Access to our entire business plan templates library - giving you dozens of examples to take inspiration from
- Access to our financial planning and analysis platform so that you can track the actual performance of your business against what you had planned in your business plan and re-plan easily
But you shouldn't take our word for it: try our solution for free and make your own opinion!
The free trial enables you to try the software for free during 7 days in order to verify that it meets your requirements before buying.
Some features are limited during the free trial, the main limits are:
- You can only create one business plan
- The financials of the first year are visible, but data for other years are hidden
- You can export your plan in PDF but not in Word or CSV
- No access to our business plan templates
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