business plan salon de the pdf

Free Hair and Beauty Salon Sample Business Plan PDF

Elon Glucklich

6 min. read

Updated February 7, 2024

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

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

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

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

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

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

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

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

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

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

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

1. Executive Summary

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

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

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

2. Company Summary and Funding Needs

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

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

3. Salon Products and Services

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

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

4. Salon Marketing Plan and Analysis

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

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

5. Salon Management Team

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

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

6. Financial Plan and Forecasts

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

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

7. Appendix

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

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

• Crafting a Successful Salon Business Plan: Key Considerations

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

1. Comprehensive Services Offering

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

2. Pricing Strategy

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

3. Salon Atmosphere

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

4. Staff Training and Expertise

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

5. Digital Presence

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

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

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

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

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

See why 1.2 million entrepreneurs have written their business plans with LivePlan

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

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Hair salon business plan template + PDF

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

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

How this hair salon business plan sample was created

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

Generate your custom hair salon business plan in minutes!

Hair salon business plan sample, executive summary, business description, market research and analysis.

• Organizational Structure and Management Team

Products or Services

Marketing and sales strategy, operations plan, financial projections, risk analysis.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

I. Industry Description

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

II. Target Market

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

III. Market Needs and Demands

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

IV. Market Trends and Patterns

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

V. Competitor Analysis

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

VI. Potential Barriers to Entry

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

VII. Financial projections

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

VIII. Contingency Plan

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

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

Organizational Structure and Management

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

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

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

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

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

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

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

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

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

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

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

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

Marketing Strategy

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

Sales Strategy

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

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

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

Pricing Strategy

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

Distribution Channels

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

Promotion and Advertising

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

Customer Service Policies

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

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

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

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

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

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

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

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

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

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

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

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

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

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Creating a Successful Salon Business Plan: A Step-by-Step Guide

• January 23, 2024
• For Salon Owners

If you plan to open a salon, besides setting the objectives, you’ll need to know how you’re going to achieve them. Or, in other words, you need a sound salon business plan.

Creating a salon business plan can help you identify specific goals and strategies, as well as provide guidance on how you can reach them and see your business thrive. Knowing how to craft your plan is vital, as it can easily make or break your salon business.

This article will walk you through how to create a salon business plan step-by-step.

Why is a Salon Business Plan so Important?

What is a salon business plan.

A salon business plan is a formal, written statement of the goals you want to set for your business. It explains why you want to set those goals and what your plan is for reaching them. A salon business plan might also include information about the individuals or teams working toward those goals with you.

A good salon business plan gives an overview of where your business is at now and explains where you want to be in the future. It also includes marketing information and research that impact your business plan in general. In fact, think of your salon business plan as a road map where you show where you are now and explain where you’re headed and what it will take to get there.

As you build your salon business plan, it’s important to include information about the process of opening your salon. This information is important because, right from the get-go, you lay the groundwork for success. This groundwork then helps you run and grow your salon business .

Why is a business plan essential for the success of your salon?

A salon business plan is an essential tool for the growth and success of any salon. It is important as it helps you to jot down your ideas and thoughts, arrange them in an organized manner, and develop an overall plan to implement them.

Writing a salon business plan also enables you to identify potential difficulties and challenges that may arise in the future. Once you’ve identified them, you can create a strategy to address them.

Having a business plan is just one of the essential steps to opening your very own salon – to see what other boxes need to be checked, download our Opening a Salon checklist PDF :

The Ultimate Checklist You Need to Open Your Salon

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Bonus: Discover 5 essential steps to building a successful beauty salon

Benefits of having a sound salon business plan

A well-crafted salon business plan comes with many benefits:

• A Greater Success Rate : A good business plan allows you to mitigate risks, make better-informed decisions, and improve your chances of running a successful salon.
• Better Financial Management : A well-written salon business plan includes your budget, financial projections, and expense management. This helps you keep tabs on your salon’s financial health, which leads to financially sound decisions.
• Improved Marketing Strategies : A sound business plan requires you to conduct market research and develop marketing strategies. Then you can identify your target market, predict customer preferences, and adjust your marketing efforts to be more effective.
• Increased Operational Efficiency : A salon business plan ensures that you implement efficient operational processes. This allows your salon to keep running smoothly and leads to increased customer satisfaction.

How to Write a Salon Business Plan in Just 12 Steps

• Write an executive summary
• Create effective mission and vision statements
• Include a salon business description
• Analyze the market and identify your target audience
• Check what your competitors are up to
• Identify products and services you wish to offer
• Craft a sound financial plan
• Tackle management and organization
• Plan your everyday operations
• Think about your marketing strategy
• Think about sales
• Don’t forget to include risks

1. Write an Executive Summary

An executive summary explains what your salon is like and why it is successful. In most cases, a potential investor would go straight to this section to get an idea of what the business is like. If the executive summary isn’t interesting or compelling, they won’t read any further. That makes it an essential section and the first step when writing your salon business plan.

The executive summary should include information that is relevant to stockholders or investors. Include details about your target market, business objectives, and financial projections. Don’t forget to add information about your products and service menu, as well as your vision and mission. The main idea is to let the reader know what’s up, grab their attention, and make them want to keep reading.

Key components

An executive summary of every salon business plan should include the following information:

Business overview : Introduce the reader to your salon. Include information like the name and location, and a brief description of your core values, vision, and mission.

Market analysis : Provide a summary of your research on your target market. Include details about the target market’s trends and demographics. Then highlight gaps or opportunities in the market that you plan to capitalize on.

Your business objectives : Clearly identify your business goals and state what you want your salon to achieve. This might include details like expansion plans, revenue targets, or customer acquisition goals. In this section, you can include any goals that will affect your salon’s growth and success .

Products and Service menu : Give a brief overview of what your salon offers. Make sure your unique features and competitive advantages stand out. Explain what your salon is doing to meet the needs of the target market.

Marketing strategies : Explain your marketing strategy. This includes information about advertising, branding, social media, and so on. If you have any original ideas for how to make your salon stand out from the competition, make sure to highlight them.

Your financial projections : Provide a detailed financial plan overview. Include any information about profit targets, expenses budget, and revenue forecasts. Highlight any achievements or milestones you have reached that prove the financial viability of your salon.

Any funding requirements : Clearly explain the funding requirements for your salon. Explain how much funding you need, how you will use the funds and any other potential sources of funds you have.

2. Create Effective Mission and Vision Statements

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A mission statement is a short explanation of why you created your salon, what your goal is, and how you want to achieve it. Your mission statement is an important part of your salon business plan, so it should be the first thing you see on the page. It’s a good idea to put it at the top of the page where you and others can see it and be reminded of your purpose.

The mission statement gives you the chance to express your purpose and intention. It not only explains why you started the salon, but it also explains what you have to offer. It shows what sets you apart from the competitor salons and captures the spirit with which you run your salon.

In just a few words, your mission statement can determine what drives your business.

Defining your purpose and aspirations

Part of the purpose of a mission statement is to define your purpose and what you offer. Your purpose is the reason you exist and what you have to offer potential customers. To get an idea of what your mission statement should include, ask yourself “Why does my salon exist?”

A vision statement serves a similar purpose. It explains where you want to take your business and what you hope to achieve. It defines your goals and the future impact you want to have. To identify the key points that will go into your vision statement, ask yourself “Where do I see my salon in the future?”

Putting your purpose and your long-term goals in writing plays an important role in having a successful business plan.

How to craft mission and vision statements

Here are a few examples of things you can consider when you are writing your mission statement and your vision statement. This will help you come up with ideas that reflect your identity and direction as a salon.

• Have a brainstorming session with your team. Ask them “What do you think makes this salon unique? What do you love about working here? What do you personally want to achieve?”
• Identify core values. What specific values do you want to uphold in everything you do? Some examples of core values are: creativity, integrity, excellence, diversity, and
• Put your mission statement in writing. Use your core values as a starting point. Then write a short, simple sentence that sums up your salon’s purpose and what you offer to clients.
• Write your vision statement. Write a short, inspiring sentence that describes your long-term goals for the salon and what you want to achieve.
• Review and refine. Once you have your mission and vision statements written down, take some time to review them. Make sure your statements are both clear and concise, as well as compelling.

In case you need a bit of help, take a look at some brilliant salon mission statement examples sure to inspire you.

Also, writing an effective slogan will only underline the message you wish to send, so make sure you have one ready.

3. Include a Salon Business Description

Company description.

A company description is a quick overview of your business that explains the core values of your company. This part of your salon business plan is all about giving a quick and simple rundown to the readers. It’s meant to give them a general idea of what your business is all about.

Outlining the details

Your salon business description provides all the basic details about your salon. You should include the name of your salon, the location, and your contact information. Also, include the details about the legal structure of your salon. This information is the foundation of the rest of your business description. Thus, it’s important that the information is accurate and up to date.

Company history and brand story

In this section, you should provide some information about the background and history of your salon. When was your business founded? What led to you starting your business? Whatever your story is, this section is your chance to tell it.

Describe what you offer and your USP

This section details what your clients can expect to find at your salon. You can use this section to provide details about new beauty products or services you are offering. If you are working on your own line of products, this is also a good place to mention it and provide an estimated timeline for when it will be available.

Your salon’s USP (unique selling proposition) is what makes your salon stand out from the rest of the market. It is very important to highlight your USP in your business description.

4. Analyze the Market and Identify Your Target Audience

The market analysis shows that you’ve put some serious thought into your target audience. You’ve also done some research to find out what the competitors are missing out on. What’s more, it shows that you really know your area and have made some changes to your approach to fit in.

When you identify and analyze your potential clients, you are better able to adjust your marketing strategy to catch their eye.

Conducting market research

Market research means collecting data about the needs, preferences, and behavior of potential clients. Then you analyze this data. Market research helps you identify who your target market is and what their expectations and needs are. Based on these findings, you can create a marketing strategy that is appealing to that audience in particular.

Conducting market research also helps you identify who your competition is. Knowing this helps you get a good idea of reasonable pricing and ideal locations. Factoring this information in helps you gain and retain clients.

Here are some ideas on how you can make the entire process more interactive and fun (both for you and the participants):

Salon pop-up surveys

Set up a pop-up booth or station near popular local spots and events. Engage with passersby, offering quick surveys with a fun incentive like discount coupons for your salon. This allows you to gather diverse opinions and attract potential customers .

Instagram polls and stories

Leverage the interactive features of social media. Use Instagram polls and stories to ask your followers about their favorite salon experiences, desired services, or beauty trends. Encourage them to share their thoughts and tag friends for a chance to win a free service.

Salon open house events

Host an open house event at your salon. Invite the local community to explore your space, meet your staff, and participate in live demonstrations or mini-makeovers. Use the opportunity to collect feedback and preferences directly from attendees.

Collaborative mood boards

Create collaborative mood boards or Pinterest boards where clients and potential clients can contribute their favorite hairstyles, colors, and beauty inspirations. This not only gathers valuable insights but also fosters a sense of community and involvement.

Beauty trend workshops

Organize workshops on the latest beauty trends. Invite participants to share their thoughts on emerging styles and treatments. This not only serves as a research platform but also positions your salon as a trendsetter in the community.

Community surveys with prizes

Distribute physical or digital surveys within the local community, emphasizing the importance of their opinions. Include a prize draw or a special discount for survey participants, encouraging more people to contribute.

Interactive social media challenges

Create engaging challenges on social media platforms, encouraging followers to share their favorite salon experiences or dream makeover ideas. Use a unique hashtag to track responses and offer prizes for the most creative entries.

Beauty polls and quizzes

Develop entertaining online polls or quizzes related to beauty and salon preferences. Share these on your website and social media to capture audience insights while providing a fun and interactive experience.

By infusing creativity and engagement into your market research efforts, you not only gather valuable information but also strengthen the connection between your salon and the community. The more interactive and enjoyable the process, the more likely you are to receive enthusiastic and authentic responses from your audience.

Identifying behaviors, demographics, and preferences

Once you have information on your target market you can use it to better understand them. Here are a few things to look at:

The behavior of your target market. This refers to the way clients make purchasing decisions, their brand loyalties, and other similar behaviors. In general, behaviors can include anything that affects a client’s decision-making process.

Demographics refer to the characteristics of your potential clients.

Geographic location, educational background, and income can all impact the way clients respond to your marketing strategy.

Even the age and gender of the people you want to draw in can affect which strategies you use. Understanding this will help you create a marketing plan that resonates with the clientele you want to attract.

Then you have to factor in the preferences of your target market. What do they like and dislike? What kinds of ambiance are they drawn to? Which salon services are most popular with this group? What are their thoughts on pricing? What do they look for in customer service? All these factors play their part in whether or not a potential customer chooses your salon.

Client analysis

This part of your salon business plan is all about who your potential clients are. Depending on where your salon is, you might get certain types of people coming in. Or, it might be a mix of different types. You need to include details about who your market is made up of and what they’re like.

Here are a few things involved in conducting a client analysis for your salon:

• Define the scope and the objective of the analysis. Include information about the services and products, the time frame, and the area your customers are coming from.
• Collect data from a variety of sources and analyze. You can use surveys, online reviews, industry reports, interviews, and social media, as well as other sources.
• Identify specific customer groups. This includes demographics, needs, and behaviors.
• Create a profile for each customer group. Include descriptions of preferences, characteristics, expectations, and motivations.
• Evaluate the salon’s current performance. How are you doing with customer retention, satisfaction, and loyalty? How much is your salon profiting?
• Identify specific areas where you can improve customer relationships.

5. Check What Your Competitors Are Up To

A competitive analysis explains your plan for your salon to dominate the market. It is important for your competitive analysis to give a brief explanation of the existing competitors. This can include direct competition, like another salon, or indirect competition. The indirect competition includes any other option for clients to receive the products or services you offer. In this section of your salon business plan, you can bring out the strengths and weaknesses of your competition and explain how your target market views them.

Knowing your competition will help you determine what your own advantages are. Then you can capitalize on those advantages to attract and keep more customers. Once you can pinpoint your unique strengths, you are better equipped to carve out your own place in the market. It will give you a starting point to work from to identify a new way to attract customers. It may also help you find something unique to offer that no one else in the area is offering.

Conducting a SWOT analysis

To be able to succeed and stand out from the competition, it is helpful to carry out a SWOT analysis . SWOT is an acronym for strengths, weaknesses, opportunities, and threats. This analysis will help you diagnose the factors that play a role in the potential and performance of your competition.

What are the strengths of your competitors? Maybe a competing salon has a good reputation and a strong brand. Perhaps they offer a wide range of services or have a skillful team. They might have a good relationship with their suppliers, offer a clean and welcoming atmosphere, or have an optimal location.

What are their weaknesses? Perhaps they offer a limited number of services or have staff that lacks experience. They might be struggling with high overhead costs or have a difficult location. Or they may be on the losing end of high competition and/or struggle to maintain customer loyalty.

Opportunities for a salon include expansion opportunities or new services and products. Other opportunities include increased online presence, partnering opportunities, or new technology and trends.

What is a threat to a salon? Economic recessions, loss of customers to the competition, and negative reviews all threaten the success of a salon. Other threats include supply chain disruptions, legal problems, and environmental and health risks.

6. Identify Products and Services You Wish to Offer

This part of your salon business plan lays out all the different services that your salon will offer its customers. You can expect a wide range of services, from haircuts, styling, coloring, treatments, manicures, pedicures, facials, and many more. Each service is described in detail, including the techniques used, expected results, and pricing structure. We’ve also got a great selection of salon products that you can buy, like hair care items, skincare products, and beauty accessories.

By providing a comprehensive overview of the salon’s products and services, we’re showing that we’re committed to meeting all our customers’ needs and preferences. We want to make sure everyone feels welcome and satisfied with their experience at our salon. This sets the stage for a successful and thriving salon business.

7. Craft a Sound Financial Plan

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Here is where you provide details about the financial history, budget, and projections for your salon. Any potential investors or lenders will be especially interested in this section of your salon business plan.

When writing this section, you should include your financial plan for your salon for the next 3-5 years, as well as your financial history going back 3-5 years. If the salon has income, include financial statements. You should also include potential funding sources and your plan for keeping your salon running.

A good budget is the foundation for any effective financial plan. A budget allows you to distribute resources like time and funds effectively. A good budget also allows you to make better decisions about saving and spending and set goals for your finances.

Start by identifying all the sources of income for your salon. This includes product sales, service fees, and so on. Then identify all the expenses your salon has, like rent, salaries, supplies, and other operational costs. You could make a category for expenses that are always the same, like rent, and another for expenses that vary from month to month, like supplies. This might help you to see patterns and identify areas where you could cut back on some costs.

Once you have identified all your income and expenses, then you can set goals. From time to time, check your progress against your budget to see how you are doing and if you can make any further adjustments.

Income streams

Adding income streams is a good way to increase revenue. The following are a few options you could explore:

• Subscriptions : Charge fees for a set period of time instead of per transaction.
• Advertising : Promote certain brands in-store and online.
• Freemium plans : Certain services are free and “premium” services cost extra.
• Third-party licensing : Give third parties the right to use or sell your patented products.
• Renting or Leasing : Rent out assets (for example, real estate or products) for a price.

As you create your financial projections, factor in the demand in the market and the volume of customers. You should also include your pricing strategy for the products and services you offer. It would be helpful to go back and review your sales history. Then you can isolate specific trends. This will help you make more sound financial decisions moving forward. It would also be helpful to you to do some research on the current market.

Alternative funding options

There are a variety of options when it comes to alternative funding sources for your salon. Each option has pros and cons. Some options include loans, grants, crowdfunding, or partnerships.

Loans may offer somewhat low interest rates. However, it’s important to find out what they require for collateral or how strict the repayment terms are.

Grants can offer funds that you don’t have to repay, but they might have strict eligibility requirements and limits on how you can use the funds.

Crowdfunding can get you funds from a pool of investors, but it might mean sharing control or ownership of your salon.

Partnerships can get you access to extra capital and more expertise. On the downside, partnerships can mean profit-sharing. You may also have to consult with your partners before you make decisions.

Expense management

If you want your salon business plan to have success, it is vital that you manage your expenses carefully. To maximize your earnings, you have to optimize your expenses and control the costs your salon faces. This is the only way to make sure that your salon remains financially stable.

Regularly review your expenses and identify ways to cut costs without sacrificing quality. Be on the lookout for chances to negotiate better deals on supplies and cut out unnecessary expenses. For example, could you choose equipment that is more energy efficient? Is there a way you could maximize the lifespan of the products you use and cut back on supply costs?

Hiring freelancers or contractors

Hiring a contractor or freelancer can have a lot of benefits. These independent professionals can provide you with the expertise you need to do a specific project or task. Some of the benefits they offer include:

• Saving on Costs: Hiring contractors and freelancers can save you money on payroll taxes, training, benefits, and more. You pay for the work they do and depending on your needs you can adjust your budget.
• Greater flexibility: You hire contractors and freelancers only as you need them and for as long as you need. You can adjust the scale of your team depending on the demand of the project and their availability.
• Expertise: Freelancers and contractors bring in fresh ideas and perspectives. Their knowledge of the industry is also an asset to your salon business. They can also carry out tasks that are beyond your skill set or that require special equipment and tools.

8. Tackle Management and Organization

The management and organization plan is the backbone of your salon business plan. It shows how your salon will operate and reach its goals. This section gives an in-depth look at the salon’s management team, including their qualifications, experience, and roles inside the salon. It also explains how the salon will be structured, how decisions will be made, and how different teams will work together.

By sharing a clear management and organization plan, your business plan shows that the salon has capable people and a well-structured system to make it in the competitive beauty industry.

9. Plan Your Everyday Operations

The salon’s operational plan outlines the day-to-day procedures and practices that drive the smooth functioning of the salon. It covers all the essential operational aspects, from staff scheduling and client management to inventory control and quality assurance.

The plan sets out who’s responsible for what, so everyone works together like a team to give customers the best service. It includes strategies for optimizing appointment bookings , managing walk-ins , and handling peak hours efficiently .

Moreover, the operational plan addresses health and safety protocols, emphasizing the importance of maintaining a clean and hygienic environment for both clients and staff. By adhering to the operational plan, the salon can enhance productivity, elevate the overall customer experience, and create a thriving and well-organized salon environment.

Implementing booking software into your salon’s everyday operations

As a forward-thinking salon owner, integrating booking software into your daily operations isn’t just a tech-savvy move – it’s a strategic investment that brings a myriad of benefits to your business.

Booking software simplifies the appointment process, allowing clients to schedule services seamlessly. With real-time updates, your staff can manage and optimize appointments, reducing the risk of scheduling conficts and ensuring a smooth workflow.

Also, booking software enables you to create and manage staff schedules effortlessly. With automated notifications and reminders, your team stays informed, reducing scheduling conflicts and enhancing overall productivity.

Not to mention that clients appreciate the convenience of booking online, as it allows them to be in charge of everything – they can choose services, select preferred staff members, and book appointments at their convenience.

Revolutionize Your Salon Management with Trafft: A Solution Tailored for Salon Owners

As a salon owner, you’re no stranger to the challenges that come with managing a bustling beauty business.

Managing appointments, handling last-minute rescheduling, dealing with overbooking, creating and managing staff schedules, and struggling to be there for your clients in the middle of the night – these are just some of the common pain points you face as a salon owner.

Enter Trafft ! Tailored with your specific challenges in mind, Trafft is designed to transform your daily chaos into an efficient salon experience.

What do you get from Trafft?

• Say Goodbye to Daily Organizational Chaos : Bring order to the chaos with real-time updates and efficient scheduling. Trafft makes organizing your calendar, keeping track of appointments, and managing staff schedules a breeze.
• Minimize No-Shows : With Trafft’s automated reminders, you can reduce no-shows and make sure that each appointment slot is valuable. You’ll receive timely notifications via email or SMS which will help you cultivate a reliable and engaged customer base.
• Reschedule with Ease : When your clients choose a new time, Trafft will send notifications to both of you. Plus, it’ll confirm the booking and update all your calendars. No need to worry about canceling an appointment – Trafft will do it for you!
• Be Available 24/7: Allow clients to schedule appointments at their convenience. Transform your salon into a 24/7 beauty oasis, breaking free from traditional booking hour constraints.

So, are you ready for a salon management revolution? Embrace Trafft and start your transformation now!

10. Think about your marketing strategy

This is your game plan for your salon to bring in new clients and promote your services. A thorough marketing plan , with plenty of marketing ideas and marketing tools you plan to use, is essential. It allows you to stand out from the competition and reach your target market. It also allows you to create connections with your customers and achieve your marketing goals.

This is the most flexible section of your salon business plan . As your business grows and the market changes, your marketing plan will adapt to it.

Marketing strategies that attract and retain clients

It’s important for salon owners and managers to create strategies for advertising and marketing. This helps to attract new customers and retain existing clients , as well as improve the reputation and visibility of the salon. Here are a few strategies you might try:

• Create a salon website or social media account . There customers can get information about your prices, services, location, and hours. Websites and social media accounts are great ways to showcase your work or advertise special events and promotions.
• Try offering discounts, coupons, referrals, loyalty programs, or gift cards . This will encourage customers to visit the salon more frequently and make them more likely to spread the word to friends and family.
• Participate in local events . Are there any festivals, fairs, charity drives, or fashion shows coming up? These events are a great opportunity for the salon to showcase its skills and services. It also gives you the chance to network with potential customers and partners and generate publicity.
• Look for opportunities to partner with other local businesses like spas, hotels, gyms, or restaurants. You can cross-promote services and offer deals or packages to shared customers.
• Send emails or newsletters to customers about your latest news, tips, beauty trends, and offers.
• Ask for feedback from customers . Then use their responses to improve customer satisfaction and quality of service.

11. Think About Sales

In this section of your salon business plan, you should outline the strategies and tactics that will be employed to drive revenue and achieve your salon’s financial objectives.

This section delves into the target market and defines the salon’s unique selling proposition, emphasizing what sets it apart from competitors. It details the pricing strategy for various services and products, taking into consideration factors such as market demand, competition, and the perceived value of offerings.

The sales plan also identifies promotional activities and marketing campaigns that will be executed to attract new clients and retain existing ones. It includes a timeline for these initiatives, along with a budget allocation for marketing expenses. Furthermore, the section discusses techniques for upselling and cross-selling to maximize the average transaction value per customer.

By laying out a comprehensive sales plan, the business plan showcases the salon’s dedication to achieving financial success and growth through a well-structured and effective sales approach.

12. Don’t Forget to Include Risks

The risk management section of the salon business plan addresses the potential challenges and uncertainties that the salon may encounter during its operations.

This section identifies and assesses various risks, including financial, operational, legal, and industry-specific risks. It outlines the proactive measures that will be implemented to mitigate these risks and ensure business continuity.

Strategies such as obtaining insurance coverage, adhering to strict health and safety protocols, implementing sound financial practices, and conducting regular staff training are discussed to minimize potential liabilities. Additionally, contingency plans are detailed to handle unexpected situations, such as economic downturns or natural disasters.

By carefully analyzing and addressing potential risks, the risk management section demonstrates the salon’s commitment to safeguarding its interests and building resilience, providing potential investors and stakeholders with confidence in the salon’s ability to navigate challenges and succeed in the long run.

So, What’s the Secret to Creating a Successful Salon Business Plan?

Running a successful salon requires more than just a flair for aesthetics; a robust salon business plan is equally essential. This plan is not a one-time document but a dynamic tool that evolves alongside your business. It serves as a roadmap, guiding your financial decisions, attracting funding, and steering your salon toward lasting success.

When writing your salon business plan, don’t forget to include a detailed market analysis, your financial projections, operational plan, services and pricing strategy, marketing, and branding.

Be sure to check in on your plan regularly and see how you’re doing compared to your goals.

Remember, a well-thought-out salon business plan is not just a formality; it’s a dynamic tool that empowers you to make informed decisions, navigate challenges, and seize opportunities for growth. Invest time and effort in crafting a plan that aligns with your vision, and watch your salon flourish.

Looking for More Salon-Related Resources?

If you enjoyed this article about creating a successful salon business plan, you should check out these as well:

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• How To Manage A Salon Successfully (Salon Manager Tips)
• How To Run A Successful Salon (The Salon Owner Guide)
• How To Get More Clients In A Salon (The Ultimate Guide)
• How Much Do Salon Owners Make? Tips for You to Earn More
• Salon Cancellation Policy Examples and Templates To Use
• The Best Salon Slogans and Mottos to Use for Your Own
• Salon Mission Statement Examples and Tips To Create One
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• Salon Social Media Marketing 101
• How to Make a Salon Price Increase Notice without Losing Clients
• The Most Efficient Salon Marketing Ideas You Need To Try
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FAQ on Salon Business Plan Essentials

Why do i need a salon business plan.

A salon business plan is essential because it serves as a roadmap, guiding you through the process of starting and growing your business.

It outlines your goals, target market, services, pricing, and marketing strategies, helping you stay on track and make informed decisions.

A well-prepared business plan can also be valuable when seeking financing, as it demonstrates your commitment and expertise to potential investors or lenders.

What should I include in the company description?

In the company description, provide an overview of your salon, including the name, location, and ownership structure.

Explain your salon’s mission, vision, and core values, as well as the unique selling points that set you apart from competitors. This section should also highlight the salon’s atmosphere, target clientele, and the specific services you plan to offer.

What is an example of a salon mission statement?

An example of a salon mission statement could be: “At [Your Salon Name], we are dedicated to delivering exceptional beauty experiences that empower our clients to look and feel their best. Our mission is to create an inviting, inclusive environment where creativity thrives, and our team is committed to providing personalized, high-quality services that enhance natural beauty and boost confidence.”

What is the best business structure for a salon?

The most common business structures for salons are Sole Proprietorship, LLC (Limited Liability Company), or Corporation. Each has its own advantages. Sole Proprietorship is simpler but offers less liability protection. LLC combines liability protection with flexibility. A Corporation provides strong liability protection but involves more complex formalities. Consult with a business advisor to determine the best fit for your salon.

How do I choose the right services for my salon?

Choosing the right services for your salon starts with understanding your target market and their needs.

Research your local area and identify gaps in the market or underserved segments. Consider your own skills and expertise, as well as those of your team, and focus on services that align with your strengths.

Offering a mix of essential and specialized services, such as haircuts, coloring, and unique treatments, can help you stand out and attract a loyal clientele.

How do I set salon pricing?

Setting salon pricing requires balancing the cost of providing services with what customers are willing to pay.

Research competitor pricing in your area and consider factors such as your target market, the quality of your services, and your salon’s atmosphere. You can opt for tiered pricing based on the experience of the stylist or offer service bundles to encourage customers to try additional services.

Be prepared to adjust your pricing as your business grows and evolves.

What’s the best way to market my salon?

Marketing your salon requires a combination of traditional and digital strategies.

Word-of-mouth referrals from satisfied clients can be powerful, so encourage customers to share their experiences with friends and family. Utilize social media to showcase your work, engage with potential clients, and share promotions.

Collaborate with local businesses or participate in community events to raise brand awareness. Don’t forget about email marketing, loyalty programs, marketing tools , and targeted advertising to attract new customers and retain existing ones.

How can I ensure a top-notch customer experience?

Providing an exceptional customer experience is crucial for salon success. Start by hiring skilled, friendly staff who share your vision and commitment to customer satisfaction. Offer ongoing training to ensure your team stays up-to-date on industry trends and techniques.

Also, handle bookings professionally, with the help of salon scheduling software and booking apps .

Create a welcoming, clean, and comfortable salon environment, and be responsive to customer feedback. Consistently delivering high-quality services and personalized attention will help you build a loyal client base.

How do I manage salon inventory and supplies?

Effective inventory management is essential for a successful salon. Implement a system to track product usage and sales, ensuring that you always have adequate supplies on hand without overstocking. Regularly review your inventory levels and adjust your ordering frequency or quantities as needed.

Negotiate with suppliers for the best prices and consider implementing inventory management software to streamline the process.

What legal requirements should I be aware of?

Before opening your salon, familiarize yourself with any legal requirements, such as licenses, permits, and zoning regulations.

You may need a cosmetology license, business license, or specific permits for your location. Additionally, ensure your salon meets local health and safety guidelines and complies with employment laws. Consult with a legal professional if you’re unsure of your obligations.

How do I create financial projections for my salon?

Creating financial projections for your salon involves estimating future revenue, expenses, and cash flow. Start by estimating your income from services and product sales, taking into account factors like pricing, target market, and more.

Outline your anticipated expenses, such as rent, utilities, salaries, marketing, and inventory costs. Create a cash flow statement to ensure you have enough working capital to cover your expenses and support your salon’s growth.

Use your financial projections to set realistic goals and adjust your business plan as needed. Regularly review your financial performance and compare it to your projections, making necessary changes to stay on track and achieve your objectives.

How do I measure the success of my salon business?

Measuring the success of your salon business involves tracking key performance indicators (KPIs) that align with your goals.

Common KPIs for salons include revenue growth, client retention, client acquisition, average ticket value, and employee productivity.

Track these metrics regularly to assess your salon’s performance and identify areas for improvement. Additionally, use customer feedback, online reviews , and testimonials to gauge the overall satisfaction of your clients and the quality of your services.

This information can help you refine your business strategies and ensure your salon’s ongoing success.

• Jovana Smoljanovic Tucakov

Jovana Smoljanovic Tucakov is a Content Marketing and SEO Specialist who uses both words and data to communicate a message and deliver value. With more than 5 years of experience in digital marketing and content production in the IT industry, she loves identifying and solving the readers’ pain points and creating targeted content.

Curious about the human mind and emotions, especially those that drive consumer behavior. Likes fitness, food preparation, board games, reading (both for pleasure and learning), and binge-watching Netflix.

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Starting A Hair & Beauty Salon Business Plan (PDF)

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

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

Business Model

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

Location And Premises

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

Permits/Licenses, Insurance & Business Bank Account

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

Competitive Analysis

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

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

Furniture & Equipment 

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

Products And Services

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

Staff & Management

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

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

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

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

Marketing Strategies

Be cognizant of the many customer segments.

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

Build An Online Profile For Your Hair Beauty Salon

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

Encourage And Reward Referrals

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

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

Keys To Profitability

Diversification into retail and complementary services.

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

Going To Digital

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Testimonial 1

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

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Testimonial 7

I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

Testimonial 3

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

Testimonial 6

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

Testimonial 8

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Testimonial 4

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

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

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

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

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

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

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How to write a business plan for your hair salon.

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

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

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

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

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

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

Please, find comprehensive answers to all these questions below.

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

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

Creating a business plan for a hair salon

Will a business plan be beneficial for your hair salon.

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

Developing a robust business plan will enable you to:

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

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

How to outline a business plan for a hair salon?

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

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

There are 5 parts within the business plan.

1. Market Opportunity

The introductory section has been named "Market Opportunity".

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

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

2. Project Presentation

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

Remember to introduce yourself at the end of this section.

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

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

3. Market Research

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

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

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

4. Strategy

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

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

5. Finances

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

How to write the Executive Summary for a hair salon?

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

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

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

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

How to do the market analysis for a hair salon?

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

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

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

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

The key points of the business plan for a hair salon

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

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

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

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

Business model ≠ Business plan

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

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

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

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

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

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

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

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

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

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

How to conduct a competitor analysis for a hair salon?

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

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

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

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

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

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

How to draft a SWOT analysis for a beauty salon?

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

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

The strengths for a hair salon

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

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

The weaknesses for a hair salon

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

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

The opportunities for a hair salon

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

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

The threats for a hair salon

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

How to outline a marketing strategy for a beauty salon?

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

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

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

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

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

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

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

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

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

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

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

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

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Salon Business Plan Ultimate Guide + Free Example

July 6, 2023

Adam Hoeksema

When it comes to starting a salon, you may be eager to dive into the world of beauty and make your clients look and feel their best. However, it's important to recognize that writing a business plan is a crucial step, especially when seeking support from potential lenders and investors.

While it may not be the most exciting task, a well-prepared business plan demonstrates your commitment and professionalism, making it an essential tool to secure the necessary funding and outline your salon's path to success. It's also important to make sure your business plan and financial projections are realistic and inline with some industry averages for salons .

This guide is going to help you walk through the following:

• Salon Business Plan Outline
• Conducting Market Research for Your Salon Business Plan
• Creating Financial Projections for Your Salon Business Plan

Example Salon Business Plan

Salon business plan faqs.

With that in mind as the path forward, let’s dive in. 

What Should be Included in a Salon Business Plan?

A salon business plan must convincingly show to prospective financiers and loan providers why clients would opt for your salon, why you or your crew are best suited to oversee the salon operations, and how the financial projection to ensure a favorable financial return on their investment. Here is a thorough breakdown of our complimentary salon business plan template .

‍ Salon Business Plan Outline ‍

I Executive Summary

II Market Analysis

III Business Description

IV Marketing and Sales Strategies

V Menu of Services and Pricing

VI Operational Plan

VII Financial Plan

• Startup Costs
• Projected Financial Summary
• Annual Sales, Gross Profit and Net Profit
• Key Financial Ratios
• Watch how to create financial projections for your very own salon
• Income Statement
• Balance Sheet
• Cash Flow Statement

VIII Conclusion

How to Conduct Market Research for a Salon Business Plan

At the core of any salon business plan is market research. It's necessary to understand your position within the market and establish that there is a substantial demand for your unique salon concept, location, and pricing tiers. You can delve more into our salon market research approach here, but essentially, you're seeking to understand your competitors, obtain insights on potential customer traffic, select an ideal location, and foresee any seasonal trends that may affect your business. Below are some tools and tactics for executing market research for your planned salon.

What Will be the Cost to Advertise my Salon?

We suggest using Google Keyword Planner to help you identify which keywords to promote to attract customers to your salon's website. The tool also offers an estimate of the cost per click for advertising using various keywords, as demonstrated below:

What Keywords are Customers Searching for?

We use both Google Keyword Planner and Ahrefs to identify which keywords are driving traffic to your competitors' websites. For example, you can run a report on a competitor's site to identify the keywords they rank for and the amount of organic traffic each keyword garners. This data can guide your SEO initiatives.

How Seasonal are Salons?

We like to utilize Google Trends to determine how seasonal your salon concept might be. For instance, you can observe below that the search volume for “salons near me” in the United States is somewhat seasonal in nature.  June is consistently the peak, with the late fall tending to be the low point of the season

How Many Customers Visit my Competitors Each Month?

Finally, we recommend pulling foot traffic reports on your competitors to understand the average number of customers they typically serve in their salons. You can see an example below showing the number of visits per month for a specific location:

Ultimately, your potential customer base's size for your salon will be a crucial assumption underpinning your financial projections. Thus, grasping how many customers frequent your competitors can help you predict potential traffic to your salon.

How to Create Financial Projections for a Restaurant Business Plan

With comprehensive market research completed, it's time to develop financial projections for your salon. Our salon financial projection templates rely on various factors, such as client traffic and service capacity, to form the basis of your revenue projections. While some salons may have limitations on the number of available appointments, others may be constrained by the time it takes to deliver services effectively. Creating accurate financial projections is crucial to showcase your salon's potential to repay loans and provide a return on investment to potential stakeholders. To achieve this, consider the following steps:

• Estimate startup costs for your salon
• Forecast revenue (employee based, booth rent, salon suite, hybrid)
• Project supplies and labor cost
• Estimate your operating expenses like rent and utilities
• Calculate how much investor or loan capital you will need to open

Our salon projection template will guide you through this process and help format your projections in a standard format that meets the requirements of potential investors or lenders. Typically, startup salon projections should include an integrated income statement, balance sheet, and cash flow forecast.

By following these steps and utilizing our salon projection templates, you'll have a solid foundation for presenting your salon's financial outlook and demonstrating its potential profitability.

Below you will find the text of our salon business plan. You can also access a downloadable Google Doc version of this salon business plan template here , enabling you to make personalized edits. Additionally, we have created a helpful video walkthrough that guides you through the process of tailoring the business plan to suit your salon concept.

Table of Contents

Executive Summary

Our salon, called "Lux Beauty Spa," is a full-service beauty and wellness center that aims to provide a luxurious and rejuvenating experience for all of our clients. Our mission is to enhance the beauty and well-being of each individual that walks through our doors, through personalized and expert services. 

We will offer a wide range of services including hair styling, nail care, skin treatments, massage therapy, and more.

Our target market is women and men of all ages who are looking for a high-quality beauty and wellness experience. We will be located in a high-end shopping center in downtown to attract our affluent target market. Our projected start-up costs are $200,000, and we anticipate reaching profitability within two years.

Market Analysis

The beauty and wellness industry is growing, with a projected global market size of $716.3 billion by 2027. In our target market, there is a growing demand for high-end beauty and wellness experiences, and a trend towards holistic and natural approaches to self-care.

Our main competitors include established high-end salons and spa centers in the area, but we differentiate ourselves through our focus on personalization and luxury. We will also offer services and products not commonly found in traditional salons, such as custom skincare treatments and exclusive hair care lines.

Business Description

Lux Beauty Spa will be a limited liability company (LLC), owned and operated by two experienced beauty professionals. We will be fully licensed and insured, and comply with all state and local regulations.

Services Offered:

Lux Beauty Spa will offer a comprehensive range of beauty and wellness services, including:

• Hair styling: We will have a team of skilled hair stylists offering cuts, coloring, and styling services for all hair types. We will use high-quality hair care products and tools, including well-known and exclusive brands.
• Nail care: Our nail technicians will offer a variety of nail services including manicures, pedicures, and gel polishes.
• Skin treatments: Our licensed estheticians will offer custom skincare treatments, including facials, peels, and microdermabrasion. We will use only the finest and natural skincare products.
• Massage therapy: Our licensed massage therapists will offer a range of massage services, including Swedish, deep tissue, and hot stone.

Marketing and Sales Strategies

To attract and retain clients, we will employ several marketing and sales strategies, including:

• Online advertising: We will create a professional and attractive website, and use targeted online advertising to reach our target market.
• Promotions and discounts: We will offer promotions and discounts to new clients and for special occasions, such as birthdays and holidays.
• Loyalty program: We will reward our regular clients with exclusive discounts and special offers.
• Referral program: We will incentivize our clients to refer their friends and family to Lux Beauty Spa with discounts and bonuses.

Menu of Services and Pricing

Our menu of services and pricing will be competitive with other high-end salons in the area. We will offer packages and memberships for regular clients, as well as a la carte services for those who prefer one-time treatments. Our prices will reflect the luxury and quality of our services and products.

Operational Plan

Lux Beauty Spa will operate 7 days a week, from 9 AM to 9 PM. Our staffing will include a manager, hair stylists, nail technicians, estheticians, massage therapists, and a receptionist. We will use scheduling software to manage appointments and ensure efficient use of our resources. Our inventory management will include regular monitoring of product levels and restocking as needed. We will also keep detailed financial records and regularly review our performance to make necessary adjustments to our operations.

Financial Plan

Our projected start-up costs are $200,000, which will cover rent, equipment and supplies, marketing, and salaries. Our operating expenses will include rent, utilities, supplies, salaries, and marketing. Our sales revenue will come from services and product sales, and we anticipate a steady growth in revenue over the next two years.

Our financial projections show we’ll break even in year 3 and grow profit considerably after that.

All of the unique financial projections you see below were generated using ProjectionHub’s Salon  financial projection template s. Use PH20BP to enjoy a 20% discount on the template. 

Startup Costs:

Projected Financial Summary:

Annual Sales, Gross Profit and Net Profit:

Key Financial Ratios:

Watch how to create financial projections for your very own salon:

Income Statement:

Balance Sheet:

Cash Flow Statement:

Lux Beauty Spa is poised to become a leading luxury beauty and wellness center, offering personalized and expert services to our affluent target market. With a strong focus on quality and luxury, we are confident in our ability to achieve profitability and success in the beauty and wellness industry.

What should I include in a salon business plan?

A salon business plan should include sections on executive summary, company description, market analysis, target market and services, pricing and packages, marketing and promotion strategies, location and facilities, staffing and management, and financial projections.

How can I determine the ideal location for my salon?

When selecting a location for your salon, consider factors such as foot traffic, visibility, accessibility, competition in the area, parking availability, and proximity to your target market. A location near residential areas or commercial districts with a high demand for salon services can be ideal.

How can I estimate financial projections for my salon?

Financial projections for a salon should include estimates for start-up costs, monthly expenses (such as rent, utilities, products, and employee salaries), projected revenue based on service pricing and expected clientele, and a break-even analysis to determine when your salon will become profitable.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Have some questions? Let us know and we'll be in touch.

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Hair and Beauty Salon Business Plan | Download PDF

Hair and Beauty Salon: Business Summary

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

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

"   How? "

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

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

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

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

Not sure yet? The following article might help! Top 10 Reasons to invest in Beauty Salon

1. Describe your Company

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

What are some of the keys to success?

Environment:

Convenience:, reputation:.

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

2. Define your Target Market

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

WHAT DO YOU WANT FOR YOUR SALON TO SAY?"

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

WHAT IS THE HIDDEN MESSAGE?"

WHOM DO YOU WANT TO GIVE THE MESSAGE TO?"

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

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

3. Creating a Marketing Plan

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

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

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

4. Figure the Finances Out

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

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

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

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

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Salon Suites Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their salon suites companies.

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

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

Download our Ultimate Business Plan Template here >

What is a Salon Suites Business Plan?

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

Why You Need a Business Plan for a Salon Suite

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

Sources of Funding for Salon Suites Businesses

With regard to funding, the main sources of funding for a salon suites business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for salon suites companies.

Finish Your Business Plan Today!

How to write a business plan for a salon suites business.

If you want to start a salon suites business or expand your current salon suites business, you need a business plan. The guide below details the necessary information for how to write each essential component of your salon suites business plan.

Executive Summary

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

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

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

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

Company Overview

In your company overview, you will detail the type of salon suites business you are operating.

For example, you might specialize in one of the following types of salon suites businesses:

• Individual Salon Suites: In this type of salon suites business, each operator is located in a site that caters to only one individual. Salon suite amenities include a salon chair, mirrors, salon products, sink, along with facial products and hair styling supplies.
• Boutique Salon Suites: If you are opening a boutique salon suites shop, you will want to offer distinctive salon suites in personalized styles to brand your salon suites business and stand out from others. Offering personalized services, such as facial massages and facial treatments, luxury foot care, and other special treatment packages created the sense of luxury and personalized care, which appeals to customers.
• Nail Care Salon Suites: This type of salon suites business is focused on customers who favor superior treatment for their fingernails and toenails. Nail professionals treat clients in individual suites that offer a wide variety of nail treatments and nail enhancements.
• Mobile Salon Suites: Offering select salon suites from a mobile reconfigured mobile home, this type of business captures the busy professionals in large cities. Appointments are made by phone and the mobile unit parks near the business site to fulfill salon services for each clients. These mobile salon suites offer the ultimate in convenience and service.

In addition to explaining the type of salon suites business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the amount of revenue during the past six months, opening a second salon suites location, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the salon suites industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the salon suites industry educates you. It helps you understand the market in which you are operating.

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

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

The following questions should be answered in the industry analysis section of your salon suites business plan:

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

Customer Analysis

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

The following are examples of customer segments: individuals, mother-daughter or teen party groups, and busy professionals.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of salon suites business you operate. Clearly, individuals would respond to different marketing promotions than professionals, for example.

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

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Salon Suites Business Plan in 1 Day!

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

Competitive Analysis

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

Direct competitors are other salon suites businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes hairdressing chain shops, private businesses operating in residences, and community classes on self-care. You need to mention such competition, as well.

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

• What types of customers do they serve?
• What type of salon suites business are they?
• What is their pricing (premium, low, etc.)?
• What sets their business apart from others?
• What are their weaknesses?

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

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

• Will you provide options for on-call 24/7 service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer value-based pricing?

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

Marketing Plan

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

Product : In the product section, you should reiterate the type of salon suites company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide a luxury facial treatment using luxurious Egyptian mud elements? Will you offer packages that include two different services?

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

Place : Place refers to the site of your salon suites company. Document where your company is situated and mention how the site will impact your success. For example, is your salon suites business located in a busy retail district, a business district, a standalone building, or in a suburban strip mall? Discuss how your site might be the ideal location for your customers.

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

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute direct mail pieces to your target audience
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) with target keywords on your website

Operations Plan

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

Everyday short-term processes include all of the tasks involved in running your salon suites business, including answering calls, planning and stocking salon suites items, paying invoices, contacting customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 100th customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your salon suites business to a second or third location.

Management Team

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

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

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

Financial Plan

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

Income Statement

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

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

Balance Sheets

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

Cash Flow Statement

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

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

• Cost of inventory and related packaging
• Cost of furnishings or accessories
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, office supplies and equipment

Attach your full financial projections in the appendix of your plan, along with any supporting documents that make your plan more compelling. For example, you might include your salon suites location lease or a list of friends and associates who are already lined up to buy products and services from your business.

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

Salon Suites Business Plan FAQs

What is the easiest way to complete my salon suites business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your salon suites business plan.

How Do You Start a Salon Suites Business?

Starting a Salon Suites business is easy with these 14 steps:

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

Where Can I Download a Free Business Plan Template PDF?

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

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

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

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

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business planning advisor can create your business plan for you.