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How to Write Hair Salon Business Plan

Passionate about hair styling and cutting?

If yes, you might have thought of starting your own hair salon business.

But it takes more than just an artistic talent to give cuts that suit different hair types and styles. It also requires a solid business plan in place to make it thrive, as there are 952,909 hair salons in the US.

Need help getting your plan? Not to worry; we’ll help.

This hair salon business plan will help you get started and guide you every step of the way, from crafting your business idea to evaluating your salon’s financial success.

Ready to begin? Let’s dive right in!

Why you need a business plan for your hair salon

Hair salon business plan is a professional, living document that outlines your business ideas, goals, and strategies to achieve them.

Whether you’re starting a new salon or aiming to expand an existing one, you’ll need a business plan. It serves as a strategic roadmap for your entrepreneurial journey.

Here are several key reasons why having a hair salon business plan is essential:

Clarifies your vision & mission

Once you’ve decided to start or grow your hair salon, writing a business plan helps you think about all the details of your business. It outlines your business concept, vision, mission, and its core values. Also, it enables you and your team to understand your business’s purpose and ensures everyone is aligned.

Attracts investors to raise funding

Investors often request to see your business plan before investing in your business. At that time, a good business plan helps you demonstrate your business strategies, realistic financial forecasts, and potential for success. Also, it shows your idea is viable and convinces them to raise funding.

Helps reach your business goals

A well-thought-out business plan allows you to consider your short-term goals and long-term objectives. It also summarizes the strategies & steps to reach them, as well as how long it will take to achieve those goals. Further, with specific benchmarks and milestones, you can measure progress and keep track of your goals.

Determines your financial needs

A business plan helps you estimate the funding required for your salon. It includes detailed financial projections and clarifies how much money you’ll need to raise and how you’ll use those funds in different areas. This means you can ask for realistic funding needs to grow your business.

Reduces potential risks

While preparing a business plan, you can identify the potential risks and challenges that your salon might face. By knowing these threats earlier, you can develop effective strategies and contingency plans to mitigate them. This ensures your business is safe and improves your chances for success.

Now that you know the importance of having a business plan, let’s explore how to create a successful business plan for your salon.

How to write the perfect hair salon business plan in 8 steps

here is the simple step by step guide on how to write hair salon business plan.

1. Executive Summary

An executive summary is the first and foremost section of a business plan that provides a high-level overview of your hair salon business.

In fact, it might be the only section that potential investors or stakeholders will read and get a better idea of your business, including its concept, core values, objectives, and growth plans.

If your plan summary isn’t interesting or compelling enough, they won’t read it any further. So, ensure you keep this section simple, crisp, yet effective.

While writing an executive summary , consider including the following key elements:

• A quick overview of your salon
• Mission-vision statement

Target market

• Unique product or service offerings
• Marketing strategies
• Financial highlights

Though it is the first section of your salon plan, it’s typically written at the end once all the other sections are drafted. This is so because it summarizes all the most important aspects of your business.

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2. Business description

As you will provide a quick business overview in the executive summary, this section will expand on it and give detailed information about your salon.

So, here, explain your salon concept in detail and give readers a better understanding of your business, including what your hair salon business is all about.

For instance, you may ask yourself a few questions to plan this section:

• Where it’s located & why did you select that place?
• What’s the legal structure (e.g., sole proprietorship, LLC, corporation)?
• When and why did you start the hair salon business?
• Who are the owners or partners?
• What type of hair salon do you operate?
• What business milestones have you achieved till now (if any)?

In addition to that, you may highlight your salon’s short-term goals and long-term objectives that every potential investor or lender needs to know.

3. Market analysis

The market analysis section presents your external business environment. Generally, it involves in-depth research of the specific industry or sector in which your business intends to operate.

This means you’ll need to conduct comprehensive market research and analytical work to start a successful salon venture.

It also helps you get valuable insights into the salon industry, market size & growth potential, target customers, market demand, competitors, and opportunities.

Here are a few essential components that you may include in your market analysis:

Here, you may provide details of the target market you serve or expect to serve. This will help you identify your target customers and create a buyer’s persona, along with the psychographic and demographic details.

Competitive analysis

It’s a very important aspect of market research that helps you identify and analyze all other salon businesses nearby. It will cover direct and indirect competitors, including their strengths & weaknesses, and explain your competitive advantages .

Market trends

As a salon owner, you know that the hair salon industry is dynamic and continuously growing. So, you’ll have to explore the current and emerging trends (technological advancements, adoption of sustainable products, etc.) in the indus try and explain how your business will cope with them.

4. Organization and management

The organization and management section introduces the key personnel responsible for running the salon, including the salon owner, managers, hair stylists, and other staff members.

You may start by describing their roles and responsibilities, educational qualifications, industry experience, and expertise that help you grow your salon.

Then, consider discussing the employee benefits, compensation plans, and business operations, as well as outline the organizational structure, including reporting lines and how decisions will be made.

Furthermore, try to highlight advisory board members (if any) and explain how they can contribute to the salon’s overall success.

If your team is lacking and you’re planning to hire, mention whom you’ll hire and clarify how they will manage day-to-day operations, what type of work experience you’ll need, and how you’ll address training practices.

5. Services and products

As the name suggests, this section illustrates all the different types of services or products your salon will offer to its customers.

For instance, you may include a wide range of services, such as haircuts, styling, coloring, hair treatments, manicures, pedicures, etc. Also, describe each service in detail, along with the pricing plans, techniques used, and expected results.

For easy understanding, you may take the below as a reference to craft your offerings:

Platinum Hair’s Services

1. Haircuts: Classic Haircut

Price: [$40] per session

Description: A timeless haircut tailored to your preferences, ensuring a polished and stylish look.

Specifications: 

• Suitable for: All hair types
• Duration: 45 minutes

2. Coloring Services: Highlights

Price: [$110] per session

Description: Partial or full highlights, to add dimension and brightness to your hair, enhancing its natural beauty.

Specifications:

• Duration: 150 minutes
• Styles Available: Partial, Full, Balayage

If you’re running a hair salon that offers a great selection of products, like, hair care products, skincare items, or beauty accessories), mention them as well.

This will help investors better understand how you plan to satisfy all your customer’s needs & preferences and what value your salon brings to the market.

6. Marketing and sales strategy

Your marketing and sales strategy decides how you plan to draw new customers and retain existing ones for your hair salon.

A well-written sales and marketing plan can help you keep track of the marketing budget and maximize ROI while developing online and offline marketing or external promotional campaigns.

Consider including the below information in this section:

Unique Selling Proposition (USPs)

You may define your unique selling points to distinguish your salon business. For example, consider presenting holistic hair care services, sustainable & environmentally friendly products, and highly skilled stylists.

Online advertising

Using online channels such as social media platforms, email marketing, and professional branding can help you target certain audiences and build trust among them. You may also create visual ads and content to showcase all your offerings.

Partnerships or collaborations

You may partner with local businesses to expand your brand’s visibility and reach a wider audience. This will draw new customers and increase your growth opportunities.

Workshops and events

You may organize workshops or events at your salon and invite the local community to explore your space. Ask them to engage in live demonstrations of hairstyles and treatments. Also, don’t forget to collect their feedback and preferences.

Discounts or rewards

Giving special discounts helps you attract new clients and retain existing ones. So, try to offer discounts to the new consumers or introduce a loyalty program to reward regular clients.

7. Financial projections

A financial plan is the most crucial aspect of the hair salon business plan. It offers a comprehensive overview of your financial projections for the first 3-5 years.

However, the startup financial plan includes several critical statements and reports, such as income statements, cash flow statements, and balance sheets.

For your hair salon financial plan, consider providing detailed financial projections, including sales forecasts, revenue projections , initial startup costs, funding requirements, break-even analysis, or even sensitivity analyses for different scenarios.

This will help you demonstrate the long-term growth and profitability of your salon and allow potential investors or financial backers to make informed decisions.

8. Appendix

In the appendix, you may attach any supporting documents that might complement your business plan.

It includes market research data and surveys, licenses & permits, equipment leases, salon layouts, resumes of executive members, and many more.

In short, you can place additional information or attachments that don’t fit into specific sections, but readers might use them for reference.

Download our free hair salon business plan template

So, prepared to draft a hair salon business plan but need more assistance? Well, here you go; download our hair salon business plan template pdf now and get started.

This expertly crafted template has been designed with hair salon businesses in mind. With step-by-step guidance and examples, this template assists you in developing your own plan.

Import data into your editor and start business plan writing.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Now that you have a detailed hair salon business plan outline, it’s much easier to kickstart your plan writing process.

However, preparing a comprehensive business plan from scratch can be an intimidating and daunting task. But not to worry; Upmetrics could be a great companion here!

It’s a modern business plan software that enables new entrepreneurs and small business owners to create investment-ready plans quickly and efficiently.

From easy-to-follow guides and 400+ business plan examples to financial forecasting software, Upmetrics offers valuable resources to streamline the entire business planning process.

So, wait no longer; start preparing your plan!

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Frequently Asked Questions

What financial projections are most important for a new salon.

The following are the most important financial projections for a new salon:

• Sales and revenue forecasts
• Profit and loss statement
• Cash flow projections
• Balance sheet
• Initial funding needs
• Break-even analysis
• Loan repayment plan

How often should a hair salon business plan be updated?

It’s necessary to review and update your hair salon business plan regularly, at least once a year, or more often whenever there are significant changes in the business environment or market.

What are the essential elements of a salon business plan?

While writing a comprehensive business plan for your salon, consider including the following essential elements:

• Executive summary
• Business overview
• Market analysis
• Products and service offerings
• Marketing and sales strategy
• Management team
• Operations plan
• Financial projections

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Hair Salon Business Plan Template & PDF Example

• September 4, 2024

Creating a comprehensive business plan is crucial for launching and running a successful hair salon. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your salon’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a hair salon business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the beauty industry, this guide, complete with a business plan example, lays the groundwork for turning your hair salon concept into reality. Let’s dive in!

Our hair salon business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the salon’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your hair salon’s business concept, market analysis , management, and financial strategy.
• Salon & Location : Describes the salon’s design, amenities, and why its location is appealing to potential clients.
• Treatments & Pricing : Lists the services provided by your hair salon, including treatments and pricing structure.
• Key Stats : Shares industry size , growth trends, and relevant statistics for the hair salon market.
• Key Trends : Highlights recent trends affecting the hair and beauty sector.
• Key Competitors : Analyzes main competitors nearby and how your salon differs from them.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management : Information on who manages the hair salon and their roles.
• Financial Plan : Projects the salon’s 5-year financial performance, including revenue, profits, and expected expenses.

Hair Salon Business Plan Template (Download)

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your hair salon’s business plan, offering a concise overview of your salon and its services. It should detail your market positioning, the range of hair care and styling services you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your hair salon will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your salon’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the salon’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your salon’s financial plan.

Hair Salon Business Plan Executive Summary Example

Business Overview

A concise overview is pivotal, introducing essential details like the salon’s name, location, and a snapshot of its core services.

These details set the stage for your hair salon, framing its unique characteristics. A unique selling proposition (USP) distinguishes your salon. Whether it’s specialized expertise in hair coloring techniques, a focus on trendsetting styles, or exceptional client service, highlight this USP in your executive summary to showcase your salon’s distinctive value proposition.

Example: “GlamStrands Hair Studio,” strategically positioned in the heart of Trendy City Center, occupies a spacious 2,500 square feet area on Style Avenue. We specialize in a wide spectrum of hair services, including precision haircuts, coloring, styling, extensions, and bespoke event updos. Our USP lies in expertly curated trends and a focus on personalized consultations, ensuring tailor-made hair experiences for every client.

Market Overview

Understanding market dynamics and your position within them is crucial. This section should underscore the potential of the local haircare and styling market, supported by relevant data such as market value and growth rates. Discussing trends, such as the growing demand for innovative coloring techniques or customizable styling services, illuminates your salon’s positioning within the evolving landscape.

Additionally, it highlights the competitive landscape. Identify key competitors and elucidate how your salon stands out amidst the competition. Whether through specialized skills, cutting-edge styling equipment, or exceptional client satisfaction, emphasize how your salon differentiates itself.

Example: In the local haircare and styling market of Trendy City Center, valued at $4 million annually with an 8% growth rate, GlamStrands Hair Studio leads with an emphasis on bespoke styling and a comprehensive range of services. Amidst competition, our commitment to personalized client experiences positions us as the preferred choice for clients seeking expert haircare and trendsetting styles.

Management Team

Highlight the expertise and background of your management team, showcasing their capabilities in driving salon success.

This could include your salon director’s extensive experience in salon management or your marketing lead’s proficiency in brand promotion. Demonstrating the team’s competency builds credibility and assures potential investors and partners of your salon’s potential for success.

Example: At GlamStrands Hair Studio, Nathan Smith, with over a decade of expertise in haircare and salon management, leads operations. Supported by a team of skilled hairstylists and a marketing director well-versed in client relationship management, the salon maintains a focus on delivering superior client care and innovative styling experiences.

Financial Plan

Provide an overview of your financial goals and projections, offering insights into revenue targets, profit margins, and anticipated growth trajectories.

Example: GlamStrands Hair Studio aims for a projected revenue of $1.5 million annually by 2027, targeting a 17% EBITDA profit margin. Investment in cutting-edge hairstyling equipment and a strong focus on superior client care, complemented by innovative marketing strategies, drive anticipated growth and profitability within the local market.

For a Hair Salon, the Business Overview section can be concisely divided into 2 main slides:

Salon & Location

Briefly describe the salon’s physical environment, emphasizing its design, comfort, and the overall atmosphere that welcomes clients. Mention the salon’s location, highlighting its accessibility and the convenience it offers to clients, such as proximity to shopping centers or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Treatments & Pricing

Detail the range of hair treatments and services offered, from basic cuts and styling to specialized treatments like coloring, extensions, or keratin smoothing. Outline your pricing strategy , ensuring it reflects the quality of services provided and matches the market you’re targeting. Highlight any packages, membership deals, or loyalty programs that provide added value to your clients, encouraging repeat business and customer loyalty.

Industry Size & Growth

In the Market Overview of your hair salon business plan, start by examining the size of the hair care industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in personalized hair care services, organic and sustainable products, and innovative styling techniques. For example, highlight the demand for services that cater to specific hair types and concerns, alongside the rising popularity of eco-friendly salons.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your hair salon in the market and its key competitors; it’s also a fundamental component of your business plan. This analysis helps in identifying your salon’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying your competitors in the Hair Salon Industry

Begin by mapping out local hair salons, stylists, and beauty centers in your vicinity. Different types of competitors exist in the hair care industry, ranging from traditional salons to specialized boutiques and freelance stylists. Explore salons offering similar services, including haircutting, coloring, styling, and specialized treatments.

Utilize digital platforms such as Google Maps and business directories to gain a geographical perspective of competitor locations. Additionally, customer review platforms like Yelp or specialized salon booking apps can provide invaluable insights into competitors’  strengths and weaknesses  based on customer feedback.

Hair Salon Competitors’ Strategies

To conduct a thorough analysis, consider the following key aspects:

• Service Offerings:  Assess the range of services offered by competitors. Some salons may focus on specific services like keratin treatments, extensions, or eco-friendly hair care, catering to niche markets and customer preferences.
• Stylist Expertise:  Evaluate the expertise and specialization of hairstylists. A salon renowned for its experienced colorists might appeal to a different clientele compared to a salon with stylists known for avant-garde cuts and styles.
• Pricing Structure:  Compare pricing models with competitors. Analyze whether your salon’s pricing aligns with budget-friendly options, mid-range competitors, or premium salons offering luxury services.
• Marketing Strategies :  Investigate how competitors market their services. Some salons might leverage social media influencers or run targeted digital advertising, while others rely on referral programs or partnerships with local businesses for promotion.
• Client Experience:  Consider the overall customer experience. For instance, a salon might differentiate itself by offering personalized consultations, a luxurious ambiance, or additional complimentary services like scalp massages or beverage offerings.
• Technological Integration:  Observe if competitors utilize technology for convenience. Some salons might excel in online booking systems, virtual consultations, or implementing cutting-edge hair care technology.

What’s Your Salon’s Unique Value Proposition?

Reflect on what sets your salon apart. It could be specialized services like organic hair treatments, a focus on sustainable practices, or a signature line of hair care products exclusively available at your salon.

Identify gaps in the market through client feedback and industry trends. For instance, rising demand for inclusive services for diverse hair textures or the integration of wellness elements like meditation or aromatherapy into salon experiences could represent untapped opportunities.

Consider your salon’s location and its impact on services and ambiance. A salon situated in a bustling urban area might emphasize efficiency and modernity, while a salon in a suburban locale might prioritize a relaxed, family-friendly atmosphere.

First, conduct a SWOT analysis for the hair salon, highlighting Strengths (such as expert stylists and a wide array of services), Weaknesses (including high operational costs or strong competition), Opportunities (for example, an increasing trend in personal grooming and beauty care), and Threats (such as economic downturns that may decrease consumer spending on luxury services).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional discounts, engaging social media presence, and community involvement.

Marketing Channels

Choosing suitable marketing channels is crucial to engaging and attracting potential clients effectively.

Digital Marketing

In today’s digital era, a robust online presence is indispensable for salon success.

• Social Media Presence:  Utilize platforms such as Instagram, Facebook, and TikTok to showcase an array of stunning hairstyles created at your salon. 
• Email Marketing:  Develop an email marketing strategy to maintain regular communication with your clients. 
• Website and SEO:  Invest in a professional website that serves as a digital storefront for your salon. Ensure that it includes a gallery showcasing your salon’s portfolio, client testimonials, stylist profiles, a blog section featuring hairstyling tips and advice, and an easy-to-use appointment booking system. 

Local Advertising

• Print Media and Flyers:  Design eye-catching flyers and brochures that highlight your salon’s services, promotions, and contact information. Distribute these materials in high-traffic areas such as local cafes, gyms, shopping malls, and community centers.
• Community Engagement:  Establish a strong presence in your local community by participating in various events and initiatives. Sponsor or participate in local festivals, fairs, or charity events, offering hairstyling demonstrations, free consultations, or vouchers for discounted salon services. 
• Influencer Collaborations:  Partner with local influencers or beauty bloggers whose style aligns with your salon’s brand ethos. Invite them for a salon visit to experience your services firsthand and share their positive experiences with their followers on social media platforms.
• Cross-Promotions:  Forge strategic alliances with complementary businesses such as beauty product retailers, fashion boutiques, or makeup artists. 

Promotional Activities

Engage potential clients through compelling offers and loyalty programs.

• Seasonal Offers : Create seasonal promotions tailored to specific times of the year, such as ‘Holiday Hairstyle Makeover’ or ‘Summer Hair Color Refresh’. 
• Loyalty Rewards:  Launch a tiered loyalty program that rewards frequent visitors with exclusive perks, discounts, or special treatment. 
• Referral Incentives:  Encourage your satisfied clients to refer friends, family, or colleagues to your salon by offering them incentives. 

Sales Channels

Implementing effective sales strategies is vital for revenue growth and client satisfaction.

In-Salon Upselling

• Maximize Revenue:  Train your stylists to provide personalized recommendations for additional services or hair treatments to enhance each client’s salon experience. 
• Retail Products:  Display a curated selection of high-quality haircare products, styling tools, and accessories prominently within your salon. 
• Package Deals:  Offer bundled services or package deals to incentivize clients to try multiple services or treatments at a reduced rate. For instance, create packages like ‘Cut & Color Combo’ or ‘Bridal Hairstyling Package’ that combine various services into one attractive offer.

Online Booking and Sales

• Seamless Booking Experience:  Enhance convenience for your clients by providing an intuitive and user-friendly online booking system integrated into your salon’s website and social media platforms.
• E-commerce Integration:  Extend your salon’s offerings beyond the physical space by retailing haircare products, accessories, or gift cards through your website.
• Virtual Consultations:  Introduce virtual consultations where clients can receive personalized hairstyling advice, recommendations, or tips from their stylists via video calls. 

Membership and Loyalty Programs

Encourage repeat business and foster long-term relationships with your clients.

Membership Options

• Subscription-Based Plans : Design subscription-based membership programs that offer clients regular services at a discounted rate. For instance, offer a monthly membership including services like haircuts, styling, or treatments at a reduced price to encourage recurring visits.
• Exclusive Benefits:  Provide members with exclusive privileges such as priority booking, access to premium services, or special events. 
• Personalized Rewards:  Analyze client spending patterns and preferences to offer personalized rewards or incentives that align with their interests or previous purchases. 

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the hair salon’s opening, marketing efforts, client base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

The Management section focuses on the hair salon’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the salon towards its financial and operational goals.

For your hair salon business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your hair salon’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your hair salon business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Privacy Overview

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 sample pdf is available for download. This article serves as an invaluable tool for entrepreneurs who are keen on developing a robust and practical strategy for launching or growing their hair salon, providing a clear roadmap and comprehensive insights into the industry.

How this hair salon business plan sample was created

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

Hair salon business plan sample

Executive summary, business description, market research and analysis, swot 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.

Hair salon business plan sample pdf

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.

Salon business plan

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.

Hair salon business plan

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.

Beauty salon business plan

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.

Hair salon business plan pdf

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.

Business plan for hair salon

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.

Hairdressing salon business plan

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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A Comprehensive Guide to Writing a Hair Salon Business Plan

• July 31, 2023
• For Salon Owners

If you’re thinking about starting a hair salon, it’s crucial to have a solid business plan in place. A hair salon business plan will help you make informed decisions and give you a clear roadmap to success. Plus, having a well-researched and detailed plan can help you secure funding from investors and grants.

In this guide, we’ll go over why having a hair salon business plan is so important and give you some tips for creating one that covers all the bases.

Table of Contents

What to Keep in Mind Before Writing a Hair Salon Business Plan

When you’re planning to open your hair salon , there are a few important things to keep in mind to make sure everything goes smoothly. To ensure nothing gets forgotten or left out, download our step-by-step guide to opening a salon – you’ll have all the information you need in one place.

Now, let’s take a closer look at one of the most important factors to think about when writing your hair salon business plan:

Unlocking success: Uncovering your salon’s Unique Selling Proposition (USP)

Your salon’s unique selling proposition (USP) sets it apart and gives it a competitive edge. It’s the unique element that makes customers choose your salon over others. To identify your USP, ask yourself:

• What unique services or treatments do your salon offer?
• Do you specialize in a specific niche or cater to a particular target market?
• How do you provide an exceptional customer experience?

Boldly highlighting your USP in your hair salon business plan will attract attention and demonstrate your salon’s unique value proposition.

Investing wisely: Researching and budgeting for essential hair salon tools and equipment

Having the right tools and equipment to run a successful hair salon would be the most important. Each item plays a crucial role in delivering quality services.

Furniture: What theme will you have, and what setup do you need to get your salon started?

Business space: Renting vs. buying?

Staff: How many hairdressers do you need, and how much will their salary be?

Booking software: What booking software will you use to help automate the booking process?

Research the market, compare prices, and create a budget for acquiring your tools and equipment. Outlining your hair salon business plan’s estimated costs and specific equipment will showcase your preparedness and financial planning.

The client connection: Building and nurturing a loyal customer base

Keeping your customers happy is key to running a successful hair salon business . You can do this by offering personalized services, loyalty programs, and referral incentives. It’s also important to show your appreciation by giving special discounts and really listening to their needs.

Building trust with your customers is key to keeping them coming back. If you focus on providing exceptional service, you’ll have a loyal customer base in no time!

Beyond aesthetics: Designing a hair salon that blends style and function

When you’re putting together a business plan for your hair salon, remember to include a section about creating a cool and functional space.

The design and layout of your hair salon play a vital role in creating a welcoming and functional space. Consider the salon’s ambiance , layout efficiency , and comfort for clients and staff. You want it to look great, but also be practical for your team to work in and for clients to move around comfortably.

Make sure to cover all the important details and show that you’re prepared and strategic in your planning. And don’t forget to include an executive summary – this part is key for investors and lenders to get a quick overview of your hair salon business.

How to Write a Hair Salon Business Plan?

Every hair salon business plan should always include:

• Executive summary
• Company description
• Market analysis
• Competitor analysis

Operation strategy

• Marketing plan

Staffing and management structure

Financial projections and budgeting, risk analysis and mitigation plan, executive summary of the hair salon business plan.

When you’re putting together a hair salon business plan, it’s a good idea to save your executive summary for the end . That way, you can include all the important details about your business. The executive summary is basically a big-picture overview that you’ll share with potential investors and lenders. You’ll want to include stuff like your goals, strategies for success and growth, financial projections, and an analysis of your competitive advantage. Anything that might catch the eye of a potential funding source should be in there.

For example, did you know that the global beauty market is worth a whopping $511 billion ? And just last year, the Beauty and Personal Care industry brought in $564.40 billion in revenue. Experts think that the industry will keep growing at a rate of 4.76% per year from 2022 to 2026.

When you write your executive summary, it’s really important to show that your ideas are feasible and effective . A well-crafted summary can grab an investor’s attention by showing that you’ve done your homework and that your hair salon has real potential.

It’s also super important to write a great hair salon description. That’s your chance to make a great first impression and really show off what makes your hair salon special. Try to capture the essence of your hair salon in a way that really grabs people’s attention.

Painting a compelling hair salon description

When you’re describing your hair salon, start by giving the reader a feel for the place. Is it cozy and intimate or modern and trendy? Make sure to let them know about all the hair and beauty services you offer, especially any unique treatments or techniques you specialize in.

What makes your hair salon stand out? Maybe you have an amazing team of hair stylists who are passionate about what they do. Or maybe you use eco-friendly products that your clients love. Whatever it is, make sure to highlight those special qualities that make your hair salon one-of-a-kind.

Keep your description short and sweet, but make sure to get your message across . Let your excitement for your salon shine through in every word you write.

Market analysis, target market, and industry trends

Before opening your hair salon, it’s a good idea to figure out what your potential clients are looking for. Take a look at your competition and see what they’re offering – that way, you can find a way to stand out in the local market.

Don’t just think about age and gender when it comes to your target customers; you should also consider their interests and what motivates them . Knowing what makes them tick can help you create marketing messages that really speak to them.

If you’re not sure where to start with market analysis, Coursera has a great article that can give you some helpful tips.

To really set yourself apart from other hair salons in the area, it’s important to do a deep dive into your competition. Find out what they’re doing well and what they could improve on, and use that information to make your own hair salon even better.

Now comes the thinking part of analyzing the market and industry trends . This step is essential for your hair salon business plan. You want to understand who your ideal clients are so you can tailor your salon’s offerings and marketing strategies to their needs and desires.

Analyze your competition and how you can excel

When you’re checking out your competitors, don’t just glance at their website and social media pages. Take a deep dive into their customer reviews too, so you can really see how people feel about them. This will give you a better idea of their brand and what they’re doing well or not so well. Look for opportunities where you can stand out from the crowd by offering unique services or top-notch customer care .

It’s super important to keep on top of what’s happening in the beauty industry too. Keep your eyes peeled for new players and trends to stay ahead of the curve.

Running a successful hair salon is all about being organized and efficient. This means hiring talented stylists , giving them the support they need through training and a positive work environment, using a reliable scheduling system , and keeping your inventory in check. Try to build strong relationships with your suppliers too, so you always have the supplies you need on hand.

Here’s how to optimize your operations and what aspects to include when writing your hair salon business plan:

Staffing and Training:

• Hire skilled hair stylists and provide comprehensive training.
• Foster a positive work environment for teamwork and motivation.

Appointment Management:

• Use a reliable scheduling system such as Trafft to minimize wait times.
• Utilize software for automated reminders and calendar management.

Inventory and Supplies:

• Maintain an organized inventory and restock as needed.
• Establish relationships with reliable suppliers.

Salon Maintenance:

• Keep the salon clean and maintain equipment.
• Pay attention to health and safety regulations.

Client Management:

• Provide exceptional service and track preferences.
• Collect and respond to client feedback.

Workflow Optimization:

• Streamline processes for maximum efficiency.
• Update workflows based on feedback.

Maintaining a competitive pricing

Developing the right pricing strategy is crucial for your hair salon’s financial success. Here’s how to create a hair salon pricing approach that maximizes profitability while staying competitive.

• Know your costs: Calculate all expenses, including rent, utilities, supplies, and staff wages, to determine the minimum price per service.
• Research the market: Analyze competitor pricing and industry standards. Consider your unique selling points and target market when setting prices.
• Tiered pricing: Offer different service packages at various price points to cater to different budgets and attract a broader customer base.
• Add-ons and upselling: Recommend additional services or products during client consultations to increase the value per transaction and boost revenue.
• Monitor and adjust: Regularly review your pricing strategy based on market trends, customer feedback , and financial goals. Make necessary adjustments to remain competitive and profitable.

By implementing a well-designed hair salon pricing strategy, your hair salon will cover costs, generate revenue, and deliver value to your customers.

Marketing and advertising plan

To create a winning hair salon marketing plan :

• Set clear marketing goals : increase brand awareness, drive foot traffic, and boost online bookings .
• Explore marketing channels : social media (Facebook, Instagram), local newspapers, and radio.
• Craft a compelling message : highlight unique selling points (exceptional customer service, talented stylists, latest trends).
• Embrace digital marketing : create a user-friendly website , showcase services, feature testimonials, and allow online bookings.
• Leverage social media : engage with the audience, share styling tips, and promote special offers.
• Consider partnerships : collaborate with local businesses, influencers, or complementary salons.
• Measure and track : monitor campaign success, track website analytics, and gather customer feedback.
• Optimize and refine : use data insights to improve marketing strategies over time.
• Position your hair salon as the go-to destination for hair styling services in your local market.

There are plenty of great hair salon marketing ideas you can put into practice to ensure your salon gets maximum exposure.

Don’t forget to include details about employee and management structure in your hair salon business plan. For your hair salon to really take off, you need a strong leadership team to steer the ship. Look for people who have the right experience and know-how and are just as passionate about the salon biz as you are.

When you talk about your team, really hype up their qualifications and skills. Let people know about their deep knowledge of the industry and how they’re total pros at handling day-to-day operations. Be sure to explain their specific roles and how their expertise is going to help make sure your hair salon is running smoothly.

If your team members have some special training , like in hair reconstruction, definitely mention it. It’ll help set your salon apart and make it even more legit in people’s eyes.

So, before you start your hair salon business , you need to figure out how much money you’re going to make. This includes everything from what services you’ll offer to how much you’ll charge. Take a look at what other salons in your area are doing and what your potential customers are willing to pay.

Next, you have to think about expenses . Rent, utilities, employee salaries, inventory, marketing, and other costs all add up. Make a list of everything and estimate how much they’ll cost you on a monthly or yearly basis.

One thing you don’t want to forget is your breakeven point . This is the number of services or products you need to sell to cover all your expenses. It’s important to know this so you can set realistic goals and measure your financial performance.

Creating a budget is key to having a solid financial plan. Think about where you want to put your money, like marketing, equipment upgrades, staff training, and supplies. Make sure you don’t overspend and stick to your budget.

Oh, and don’t forget about technology! Setting up a reliable booking system can make your life a lot easier and keep your clients happy. There are some great options out there, like Trafft . So, keep that in mind when you’re making your budget.

Why Trafft?

Let’s paint a picture: You’re opening a hair salon;  your dream, finally taking shape. That’s thrilling, right? But hold on! It’s also daunting . The appointments, the management, the scheduling – it’s a tangled web.

Enter Trafft . It’s your new best friend, your invisible manager. Here’s why :

• 24/7 availability: Trafft handles your bookings, 24/7. Sleep easy knowing your customers can book anytime, from anywhere.
• No double-booking disasters: Trafft’s smart system prevents overlaps. Say goodbye to scheduling stress!
• Payments made painless: With integrated payment solutions, money matters are managed.
• Your salon, your rules: Fully customizable settings mean Trafft adapts to your salon, not the other way around.

Now imagine: A salon where you’re the stylist, not the secretary . Free from phone tag and double-bookings. A salon where customers conveniently book and pay, then arrive to a smooth, streamlined operation. That’s not just any salon. That’s a Trafft salon .

So why not turn your dream salon into a reality? Get Trafft . It’s not just software. It’s the helping hand your business deserves. Embrace the efficiency. Enjoy the ease. Experience Trafft . Your future self will thank you.

If you’re running a salon, you need to be aware of the potential risks that might come your way and tackle them head-on. These risks could be industry-specific or internal, like staff turnover or not complying with regulations. So, make sure to cover the details of how you plan to tackle these issues and include them in your hair salon business plan.

The plan could involve smart marketing or offering new services to deal with downturns, complying with regulations to avoid legal issues and negative feedback, and investing in staff training to make sure your clients are happy. And don’t forget to keep reviewing and updating your risk analysis and mitigation plan to stay on top of any challenges.

By being proactive and staying ahead of the game, you’ll be able to keep your salon business strong and overcome any obstacles that might come your way.

FAQ on Hair Salon Business Plan

What is a hair salon business plan.

A hair salon business plan is like a roadmap. It guides the direction and future of your business. It explains things like what services you’ll offer, who your customers are, and how you’ll make money. It’s basically your playbook for running the salon and attracting clients.

How important is a business plan for a hair salon?

Oh, it’s super crucial. Not having a plan is like driving with a blindfold on. It’s a tool to attract investors, secure loans, and understand your business better. You’ll be less likely to overlook important details, and you’ll have a clear vision to work towards.

What should a hair salon business plan include?

Your business plan should cover several key areas. Think of your services, target market, marketing plan, financial projections, and operational strategies. Also, don’t forget a solid competitive analysis. This way you know who you’re up against and can work to stand out.

How detailed should the hair salon business plan be?

Your business plan should be as detailed as possible. The more detailed, the better. It should cover everything from your business name, location, services, and pricing, to how you’ll advertise. Think about it as your salon’s blueprint.

How to do market research for a hair salon?

Start by looking at other salons in your area. What services do they offer? How much do they charge? Who are their clients? Online reviews and social media are good places to gather intel. Also, consider conducting surveys or focus groups to understand customer needs better.

How to calculate the financial projections for a hair salon?

First, you need to estimate your startup costs, like rent, equipment, supplies, etc. Then forecast your sales – how many clients will you serve daily, weekly, monthly? What will be the average spend per customer? Don’t forget about ongoing costs, like salaries, utilities, and marketing.

What are the funding options for starting a hair salon?

There are several ways to fund your salon. You can use personal savings, secure a bank loan, find investors, or even crowdfund. Each method has its pros and cons. It’s about finding what suits your situation best.

How to develop a marketing strategy for a hair salon?

Start by identifying your target clients. What social media platforms do they use? What magazines or blogs do they read? Tailor your marketing efforts to reach them. Consider loyalty programs, referral incentives, and special promotions. Remember, word-of-mouth can be super powerful in the beauty industry.

How to tackle competition in the hair salon business?

Differentiate yourself. Maybe it’s offering unique services, creating a distinctive salon experience, or focusing on superior customer service. Constantly keep an eye on what competitors are doing, but don’t just copy them. Build your own unique brand identity.

How to update a hair salon business plan?

Your business plan isn’t set in stone. As your salon evolves, so should your plan. Regularly review it, see what’s working and what’s not. Make adjustments as necessary. It’s a living document that grows with your business.

Final Thoughts on Creating an Effective Hair Salon Business Plan

Congratulations! You’ve reached the end of this ultimate guide to creating an effective hair salon business plan. Following the steps outlined in this guide, you have the knowledge and tools to write a comprehensive hair salon business plan that positions your salon for success.

Remember, a well-written plan is more than just a document. It’s a roadmap that guides your hair salon’s growth and is a valuable tool for attracting investors, lenders, and stakeholders.

Throughout this guide, we’ve explored essential elements such as understanding your target market, analyzing competition, developing a strategic marketing plan, establishing efficient operations, and setting a profitable pricing strategy. We’ve also emphasized the importance of financial planning, risk analysis, and creating a solid management team.

As you embark on your hair salon venture, stay focused on delivering exceptional customer service, staying abreast of industry trends, and continuously refining your strategies based on market feedback. With dedication, proper planning, and a passion for beauty and style, your hair salon can thrive in the competitive beauty industry.

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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How to Write a Hair Salon Business Plan

Are you thinking about opening your own hair salon? Or maybe you already have a salon and are thinking about opening another location?  

Well, when it comes to opening a new salon business, knowing how to write a hair salon business plan can make or break your success. The good news is—we’re here to help. 

In this article, we’ll go over the ins and outs of creating a hair salon business plan. This includes everything from market analysis and financial projections to your goals for the future. Having a plan will help you obtain funding and stay on track as you grow. 

Let’s get started. 

Do I Really Need to Write a Business Plan for a Hair Salon?  

You wouldn’t drive from San Francisco to Boston without either a GPS or a map, right? So, you shouldn’t run a business without a plan either. 

A hair salon business plan is a roadmap for your beauty business. Whether you have two chairs or 200, it’s essential for your ongoing success. 

In fact, opening or expanding a business has a lot more at stake than a drive across the country. You may have saved or taken out a loan to start your salon. And you likely have employees or contractors who are dependent on your business sense, too. 

A business plan gets you organized when you’re first starting out or opening a new location. Plus, it keeps you on track as you grow. You can reach or exceed your goals, but you must know what they are first. And you need to have a detailed set of strategies to use along the way. 

Let’s go back to our road trip metaphor.  

Suppose you want to get from California to Massachusetts. First, you figure out how many miles or hours the journey will take. Then, you divide that by how many miles or hours you can comfortably drive in a day. That’s how many days it will take. Finally, you plan overnight stops along the way for each of those days to make the drive doable. 

A salon business plan isn’t much different. You probably have goals for things like: 

• How much gross income you want to bring in 
• How much profit you want after overhead and labor 
• Ideal business model structure (e.g., booth rent vs. commission) 
• Services you would like to offer clients 
• Places where you’d like to open additional salons 

Without a specific business plan for how to make them happen, those are just pie-in-the-sky dreams. You need a more granular approach to turn them into a reality. 

For instance, how much money do you need to make each month to reach your desired net profits? If that’s how much you need to make each month, what do you need to make daily, assuming you’re open five days per week? How many chairs do you need to have? At what capacity do you need to operate? 

Not to mention, you’ll almost certainly need a formal business plan if you want to get financing for your salon. Salon equipment and real estate can be quite expensive. A bank may loan you money to get set up, but only if they see you have done your homework first. 

Lenders don’t want to back a business that is more likely to fail than to succeed. And new hair salons have an average success rate of 50% in the first three years of operation. 

That means half of those businesses will fail. Most fail not because of a lack of talent or ambition but because the owner doesn’t know how to properly run a business. You can be the best hairstylist in the world. But if you consider things like business accounting and marketing, you will likely lose more money than you are bringing in every month. 

Do you want to be in the 50% of new salons that thrive? Keep reading to learn the step-by-step method of developing a business plan for your salon. 

RELATED ARTICLE:  

Owning a Hair Salon: Your Launch Guide  

How to Write a Hair Salon Business Plan: Step by Step  

Below you’ll find information on each section commonly included in a business plan. But first, here’s a tip to help you make the most of these categories. 

Use the SMART method for setting goals. What are SMART goals ? They are: 

• Specific – highly detailed, not vague 
• Measurable – able to be quantified with hard numbers and actionable items mapped out to achieve the goal you’ve set 
• Achievable – doable within the framework of your business model 
• Relevant – related to your salon today, not somewhere else or too far in the future 
• Time-bound – tied to specific dates for end goals and milestones 

Any time you set a long-term or short-term goal, ask, “Is it SMART?” If not, dig deeper to get the details you need to make it work. 

Executive Summary  

Think of the executive summary as the introduction to your salon business plan. It gives brief information about: 

• The purpose of your salon and who it will serve 
• Your business objectives (offer something novel, expansion, etc.) 
• How your salon will be different from your competitors 
• Why you think the business will perform well 

For instance, you could talk about how you plan to open a salon in a busy urban area to cater to downtown employees. Your client demographic is primarily white-collar workers aged 25 to 45. 

Your unique selling proposition , or USP, is what makes the salon special. Say it’s that it will offer 20 and 50-minute appointments to fit into standard lunch breaks. Additionally, you’ll have 10-minute appointments for fast services during coffee breaks. 

Customers can get a quick trim on their fringe or ends. Beard and mustache trims are another rapid service you will offer. Everything can be booked and paid for online to streamline the process and get customers in and out in a jiffy. 

Maybe after work hours, your salon will be open for more traditional appointments. And you’ll have more quickie services available for businesspeople going out at night. They can get an updo, blowout, or style refresh before a date. On Fridays, you’ll offer manicure services too. 

In your business plan, you’d want to outline howyour USP will help your salon be successful. For our example, you might say you believe the salon will do well financially because of three factors: 

• The area is currently underserved by hair salons. 
• You are catering to the needs of businesspeople in your locale. 
• You hired an experienced stylist who’s bringing their clients with them. 

You don’t have to get into a ton of detail yet. This is a proverbial bird’s eye view of your business proposition. You could, however, outline a rough roadmap of how you envision your business will start and where you see it going in one year and five years. 

For instance, perhaps you plan to start with one location and 10 chairs. Five years from now, you want to open two additional locations. At that time, you will add new services like brow waxing and makeup consultations. 

You can mention market analysis in this section, too. Market analysis looks at competition and consumer needs in your niche. However, there will be a place later in your business plan to address this in more detail. 

Remember, your executive summary is an investor or lender’s first impression of your salon business. Therefore, you want to make it shine. 

Company Description  

This section goes into detail about the structure of your company. How long have you been in business? Who are the owners and managers? 

You’ll also want to review how many employees or contractors you plan to have. Will they be employed under W2 status, or will they contract as 1099 workers? 

Will hair stylists pay you a fee for the use of a chair? Will your salon take a cut of their fees? How will tipping be structured? 

For example: 

• Our salon is a startup organization that is not yet in business. 
• It is co-owned by two stylists who participate 50-50 in leadership. 
• There will be 10 chairs in total in the salon. 
• Eight contract stylists will be working as 1099 independent contractors. 
• Contract stylists will pay a monthly chair rental fee and a percentage of their billables to the owners. 
• All tips will go to the employed stylists, with a percentage going to a shampoo assistant. 
• Contract stylists make a commission on products sold in the salon. 
• You will also have two paid receptionists who will be W2 employees. 

You will go into more detail about financials in the Services and Pricing section. But this section should give readers an understanding of the basics of your planned salon operations. 

You can also include funding or investing requests in this section. Again, you will have further opportunity to dive into financials later. But touching on what you need to open or expand gets readers primed as they go through the next four sections. 

Market Analysis  

The market analysis section of your business plan is another area where you can wow readers and make your salon stand out. It answers the question, “Why you, and why now?” 

Remember, you don’t want to fit in with all the other salons in the area. Instead, you want yours to be unique . 

Your hair salon might be unique because of its business model, like the hypothetical one described in the executive summary. Or it could be you have a string of well-known stylists. 

Perhaps you offer extra luxury services and product lines. Maybe you offer great prices. It could be the whole vibe of your salon that’s one of a kind. Maybe it’s a retro nod to the ‘70s or a high-tech glimpse into the future. 

You don’t want to pitch your salon with a kitchen sink-style of features. After all, when you appeal to everyone, you really appeal to no one. But you can list several unique attributes that will give you a competitive market edge. 

In this section, you’ll show what the current market is like in your location. How many other salons are within a mile or two? Who do they cater to? Is there a gap you can fill to capture more market share? 

Be realistic. If everyone who comes through your door is on a tight budget, you can’t offer $300 color jobs. You need to match your services to your demographics. 

If you’ve ever sold a real estate property, you’ve done something similar to a business market analysis. You or your agent prepare “comps” or comparables. The comps show how your property is special, while reviewing what the rest of the area has to offer. 

Whether your salon is brand new or you’re opening a new location for your existing salon business, you may need to conduct market research. You can do this on your own or hire a consultant to do it for you. 

The more populated the area in which you operate, the more complicated market research is likely to be. If you’re in a suburb or rural community, there may only be a few hair salons to compete with. 

Don’t forget to include how your USP and ability to fill a need relates to industry trends. Let’s use the example above. There is a current national trend towards more online conveniences for salon customers. So, offering online payments and booking is going to help you stay at the front of the curve. 

Also, employees are feeling busier than ever these days. They struggle with work-life balance. And many are returning to the office after working remotely for several years. 

Your salon leverages this trend as well by providing stress-free quick appointments that fit into work breaks. Workers can get their hair done over their lunch hour and make better use of their personal time after work. 

If you have an existing business that you’re expanding, you can survey your clientele. Maybe you’re going to a second location because it’s underserved. Or perhaps you’re adding more services because that’s what clients want.  

It’s great to be able to give objective data that says there’s a need for your services. 

Hair Salon Industry Trends for Growing Your Salon Business  

Marketing Strategy  

How do you plan to promote your new salon or additional location? That’s the focus of this section of the plan. 

Some common salon marketing methods include: 

• SEO website 
• Social media accounts 
• Paid advertising 
• Loyalty programs 
• Cross-promotion with other businesses 
• Flyers in area office buildings 
• Bulk mailings with coupons 
• Free makeovers 
• Local news editorial coverage 
• Online review platforms 

An SEO (search engine optimized) website is a great place to start promoting your business. You can add other components later. An optimized website is set up to rank higher on search engines like Google and Bing. 

How do you improve a website’s SEO? 

• Use keywords related to your exact services that clients would search for when looking for a hair salon. 
• Be sure to mention your location multiple times on the website, including your state and local landmarks. 
• Add a blog for value-added content with links to authoritative sources. 
• Get your salon mentioned on other websites and in social media mentions. 

This section overlaps with your market analysis. You’ll be using your unique selling proposition to focus marketing campaigns. Every marketing effort is an opportunity to promote what makes your salon stand out. 

Talk about how you plan to cement the two cornerstones of a healthy salon business: 

• Repeat customers who book appointments regularly 
• New customers who keep things fresh and balance natural attrition 

How to Design and Roll Out a Beauty Salon Rewards Program  

Management and Organization  

Here’s where you can go into more detail about your salon’s company structure and staff payment plan. You can include elements like credentials here, particularly if you or a manager have a business background or education. 

Don’t simply list how you plan to pay workers. Explain why this is best for your salon business’s long-term financial health. 

Are you and any other owners taking a salary? What corporate structure are you using (LLC, S corp, etc.)? Your state may determine how you want to set this up.  

Speaking with an accountant can clarify questions for you, especially about taxes. 

Services and Pricing  

This section of your hair salon business plan outlines the meat and potatoes of what your salon will offer. It is essentially a menu of all the services and treatments you provide. It also includes prices for each. 

You can mention why you chose the pricing model you did. For example, if you’re serving affluent clients in a resort area, you can justify charging a little more. Or you might do group pricing because you serve a lot of bridal parties. 

Don’t forget to add any products you plan to sell. Why is carrying these items beneficial to your business? 

Financial Projections  

Financial projections are the nuts and bolts that lenders want to see. They’ll also keep you on the right path as you grow your salon. 

You’ve already outlined your services and pricing. Now, it’s time to do the math and calculate what that means in terms of income. 

Answer these questions first: 

• What do you expect your salon to gross (total income) in a year? 
• What are your overhead expenses (rent/mortgage, staff, utilities, wholesale supplies, etc.)? 
• What portion of your expenses are due to payroll? 
• Do you have to make capital purchases for equipment? Will these be paid with a lump sum, financing, or rental payments? 
• What is the net profit you expect (gross income minus overhead and expenses)? 
• Where do you predict expenses or income will change over the next few years? 

You want to make your business plan financial projections look truly professional. So, break them down into these categories: 

• Sales forecast – total sales expected over the next several years 
• Expenses budget – all the costs you need to operate 
• Profit and loss (P&L) statement – a 12-month summary of revenue versus expenses 
• Cash flow statement – how cash moves in and out of your business, including monthly payments 
• Projected balance sheet – items that aren’t in your P&L, like interest debt, equity, and other factors that affect the net worth of your business 
• Break-even analysis – what you need to earn (at least) to make your expenses and start turning a profit 

A certified public accountant (CPA) can help you put together this part of your business plan for a reasonable fee. It’s well worth it if it helps you obtain investors or bank funding. 

How You Can Start Writing a Hair Salon Business Plan Right Now  

Ready to get started on your hair salon business plan today? Use these tips right away to make it both convincing to lenders and helpful as an internal roadmap: 

• Write a mission statement. To write a solid executive summary, it’s helpful to first compose a mission statement. This delves into why you want to open your business in the first place. Some people include this in their executive summary. Others keep it private and use it as an inspirational jumping-off point. 
• Include milestones in your financial projections. These are points where you will examine progress and see if you’re on target. Be ready to course correct if you’re not hitting your goals. 
• Compile an appendix. It’s a good idea to include an appendix in your business plan with copies of extra materials. This is an ideal place to include photos of your salon, certifications, licenses, and financial documents. It will keep everything organized for you and make you look more professional to lenders. 
• Enlist help. If you have questions about certain sections of your salon business plan, consider consulting with the appropriate professionals. Paying a one-time fee to an attorney or CPA can save you money and headaches down the line. You could even consider hiring a business manager to deal with office and financial issues. 
• Research your competition. If you’re not sure what services to offer or how you stand out, do some in-person recon. Visit competitor salons and check out influencers on social media. How can you align with service gaps and trends to make the most of your business? 
• Explore salon management software. Salon management software can save you a lot of time and make your job a lot easier. For instance, you can use it to quickly and easily generate reports to keep a pulse on your performance. It’ll also help you with other tasks related to your financial success. The best salon management software can automate appointments, keep track of inventory, and assist with marketing. 

Learn How to Manage a Hair Salon Business with SalonBiz  

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Here is a free business plan sample for a hair salon business.

Have you been envisioning opening your own hair salon but feel overwhelmed about where to start?

In the content that follows, we will present to you a comprehensive sample business plan tailored for a hair salon.

As an aspiring entrepreneur, you're likely aware that a meticulously formulated business plan is crucial to your venture's success. It serves as a roadmap, outlining your vision, objectives, and the strategies you'll employ to thrive in the competitive beauty industry.

To expedite the creation of an effective plan, you're invited to utilize our hair salon business plan template. Additionally, our team of experts is available to review and refine your plan at no extra cost.

How to draft a great business plan for your hair salon business?

A good business plan for a hair salon must reflect the unique aspects of the beauty industry and the personalized services offered by salons.

To start, it is crucial to provide a comprehensive overview of the beauty market. This includes current statistics and identifying emerging trends in the industry, as illustrated in our hair salon business plan template .

Your business plan should articulate your vision clearly. Define your target clientele (e.g., neighborhood residents, professionals, students), and establish the distinctive positioning of your hair salon (upscale, budget-friendly, specializing in certain hair treatments or styles).

Market analysis is a key component. This requires a thorough understanding of local competitors, industry trends, and customer demands and expectations.

For a hair salon, particular emphasis should be placed on the services you intend to offer. Describe your range of services - haircuts, coloring, styling, treatments - and discuss how they cater to the preferences and needs of your target market.

The operational plan is vital. It should outline the location of your salon, the design of the service area, supplier relationships for products and equipment, and the service delivery process.

In a hair salon business plan, it is important to highlight the expertise of your stylists, the quality of hair care products used, and adherence to health and safety standards.

Then, delve into your marketing and sales strategy. How do you plan to attract new clients and keep them coming back? Consider promotional tactics, customer loyalty programs, and potential additional services (like selling hair care products or offering beauty treatments).

Implementing digital strategies, such as a professional website or an active social media presence, is increasingly important for customer engagement and retention.

The financial section is another critical element. This should include your startup costs, revenue projections, ongoing expenses, and the point at which you expect to break even.

In the hair salon business, service pricing can vary widely, so it's essential to have a detailed financial plan and a solid understanding of your cost structure. For assistance, refer to our financial forecast for a hair salon .

Compared to other business plans, a hair salon's plan must pay special attention to factors such as the stylist recruitment and training, the customer experience, appointment scheduling systems, and the potential for product sales.

A well-crafted business plan will not only help you clarify your strategy and vision but also attract investors or secure loans.

Lenders and investors are looking for comprehensive market analysis, realistic financial projections, and a clear plan for the day-to-day operations of the salon.

By presenting a thorough and substantiated plan, you showcase your professionalism and dedication to the success of your hair salon.

To achieve these goals while saving time, you can complete our hair salon business plan template .

A free example of business plan for a hair salon business

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a hair salon .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The hair salon industry is a robust and essential part of the beauty sector.

Recent estimates value the global hair care market at over 85 billion dollars, with projections indicating continued growth driven by an increasing interest in personal grooming and appearance.

In the United States alone, there are over 80,000 hair salons, generating a combined annual revenue of approximately 20 billion dollars. This underscores the hair salon industry's substantial contribution to the economy and its role in daily American life.

These figures highlight the hair salon industry's resilience and its potential for sustained economic impact.

The hair salon industry is witnessing several emerging trends that are shaping the future of personal grooming services.

There is a growing demand for natural and organic hair care products, as consumers become more health-conscious and seek to avoid harsh chemicals.

Customization of hair treatments and services is becoming increasingly popular, with clients looking for personalized experiences that cater to their specific hair types and preferences.

Technological advancements, such as augmented reality hair color apps and online booking systems, are enhancing the customer experience by offering convenience and innovation.

Sustainability is also a significant trend, with salons adopting eco-friendly practices, such as recycling hair clippings and reducing water usage.

Additionally, the rise of social media as a marketing tool allows salons to showcase their work and connect with clients on platforms where visual appeal is paramount.

These trends indicate a shift towards more personalized, health-conscious, and technologically integrated hair care experiences.

Success Factors

Several factors contribute to the success of a hair salon.

High-quality service is paramount; skilled stylists and aestheticians can provide exceptional haircuts, styling, and treatments that ensure client satisfaction.

Innovation in service offerings, such as the introduction of new hair care treatments or styling techniques, can set a salon apart in a competitive market.

The location of the salon is critical, as a prime spot can attract more foot traffic and make the salon more accessible to clients.

Customer service excellence is essential for building a loyal clientele; a welcoming atmosphere and attentive staff can make a significant difference.

Lastly, effective business management, including cost control, staff training, and marketing, along with the ability to adapt to industry trends, such as embracing sustainable practices or offering online bookings, are crucial for a hair salon's long-term prosperity.

The Project

Project presentation.

Our hair salon project is designed to cater to a diverse clientele seeking personalized hair care and styling services. Situated in a bustling urban area or a shopping district, this salon will offer a range of services including haircuts, coloring, treatments, and styling, all performed by skilled stylists using premium, eco-friendly hair care products.

The emphasis will be on providing a luxurious and relaxing experience, with a focus on individual style and hair health.

This salon aims to set a new standard in hair care and styling, becoming a go-to destination for those who value expert advice, quality service, and a pampering environment.

Value Proposition

The value proposition of our hair salon project is centered around delivering exceptional hair care services with a personal touch. Our commitment to using eco-friendly and nourishing products ensures that clients not only look their best but also maintain healthy hair.

We offer a sanctuary where clients can unwind and enjoy a bespoke hair care experience, enhancing their natural beauty and boosting their confidence.

Our salon is dedicated to creating a welcoming atmosphere where every client feels valued and leaves satisfied, with the aim of educating them about sustainable hair care practices and the latest trends in hair fashion.

We strive to be a cornerstone in the community, providing a space where clients can transform their look and uplift their spirits, all while contributing to a healthier environment.

Project Owner

The project owner is a seasoned hair stylist with a passion for creating beautiful, healthy hair.

With a background in cosmetology and a flair for customer service, they are driven to establish a hair salon that stands out for its dedication to client satisfaction, environmental responsibility, and innovative styling techniques.

With a commitment to ongoing education and a finger on the pulse of hair care trends, they are determined to offer a superior salon experience that not only meets but exceeds client expectations.

Their devotion to the craft of hair styling and their entrepreneurial spirit make them the driving force behind this project, aiming to enhance the beauty and confidence of their clientele.

The Market Study

Market segments.

The market segments for this upscale hair salon are divided into several categories.

First, there are individuals seeking high-quality hair care services, including cuts, coloring, and styling, who prioritize maintaining a polished appearance.

Next, there are clients who are looking for specialized hair treatments, such as keratin treatments, hair extensions, or scalp therapies.

The market also includes customers interested in luxury experiences, such as bridal hair services, or those seeking a relaxing environment for their routine hair maintenance.

Finally, beauty professionals such as makeup artists and fashion stylists can be a key segment by partnering with the salon for events and recommending the salon's services to their clients.

SWOT Analysis

A SWOT analysis of this upscale hair salon project reveals several aspects.

Strengths include a team of experienced stylists, a commitment to using high-end hair care products, and a prime location that attracts foot traffic.

Weaknesses could include the higher pricing strategy that might limit the customer base and the challenge of maintaining a consistently high level of service.

Opportunities lie in the growing interest in personal grooming and the potential to expand services to include beauty and wellness treatments.

Finally, threats could include the emergence of new salons in the area, economic downturns affecting discretionary spending, and the constant need to stay ahead of hair care and fashion trends.

Competitor Analysis

Competitor analysis in the hair salon industry reveals a diverse range of competition.

Among direct competitors are other upscale salons, as well as chain salons and independent stylists offering similar services.

These players compete to attract a clientele that values expertise, experience, and a luxurious salon atmosphere.

Potential competitive advantages include a highly skilled team, a robust menu of services, brand reputation, and the ability to provide a unique and personalized customer experience.

A thorough understanding of competitors' strengths and weaknesses is crucial for carving out a niche in the market and ensuring customer loyalty.

Competitive Advantages

Our commitment to providing an exceptional salon experience is at the core of our competitive edge.

We offer a wide range of high-end hair care services, all performed by seasoned professionals who are dedicated to their craft.

Furthermore, our salon's ambiance, which includes a comfortable and stylish interior, contributes to a relaxing and indulgent visit for every client.

We take pride in our attentive customer service and personalized approach, ensuring that each visit is tailored to the individual's needs and preferences.

You can also read our articles about: - how to open a hair salon business: a complete guide - the customer segments of a hair salon business - the competition study for a hair salon business

The Strategy

Development plan.

Our three-year development plan for the hair salon is designed to establish us as a premier destination for hair care and styling.

In the first year, we will concentrate on building a strong local clientele by offering exceptional service and creating a welcoming atmosphere.

The second year will focus on expanding our services and possibly opening additional locations in high-traffic areas to increase our visibility and accessibility.

By the third year, we aim to introduce a line of exclusive hair care products and form partnerships with beauty schools and influencers to solidify our reputation in the industry.

Throughout this period, we will prioritize customer satisfaction, employee training, and staying ahead of industry trends to ensure we provide the best experience and results for our clients.

Business Model Canvas

The Business Model Canvas for our hair salon targets individuals seeking quality hair care services, from basic cuts to advanced styling.

Our value proposition is centered around providing a superior salon experience, skilled stylists, and personalized services.

We offer our services primarily at our salon location, with a focus on key resources such as our professional staff, modern equipment, and a comfortable setting.

Key activities include hair styling, treatment services, and customer relationship management.

Our revenue streams are generated from hair services, product sales, and additional beauty treatments, while our costs are associated with staff salaries, salon maintenance, and marketing efforts.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on building a strong brand presence and community engagement.

We plan to attract and retain customers by showcasing our salon's unique services, talented stylists, and success stories through before-and-after transformations.

Our approach includes targeted social media campaigns, partnerships with local businesses, and hosting events that allow potential clients to experience our services firsthand.

We will also encourage word-of-mouth referrals by offering incentives to our loyal customers.

Finally, we will leverage influencer partnerships and online reviews to reach a wider audience and build trust in our salon's expertise.

Risk Policy

The risk policy for our hair salon is designed to mitigate risks associated with service quality, customer satisfaction, and operational efficiency.

We commit to ongoing training for our stylists to ensure they are up-to-date with the latest techniques and trends.

We will implement a robust appointment and customer feedback system to maintain high service standards and address any issues promptly.

Our financial risk management strategy includes careful budgeting and cost control measures to maintain a healthy cash flow.

Additionally, we will secure comprehensive business insurance to protect against any unforeseen liabilities related to our services.

Our focus is on delivering exceptional hair care experiences while safeguarding the well-being of our clients and the stability of our business.

Why Our Project is Viable

We are confident in the viability of our hair salon due to the evergreen demand for professional hair care services.

With our dedication to excellence, customer-centric approach, and innovative strategies, we believe we can carve out a significant niche in the market.

We are excited to enhance the beauty and confidence of our clients while growing a successful and reputable salon business.

We remain adaptable to industry shifts and client feedback, and we are enthusiastic about the bright future of our hair salon.

You can also read our articles about: - the Business Model Canvas of a hair salon business - the marketing strategy for a hair salon business

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a hair salon and our financial plan for a hair salon .

Initial expenses for our hair salon include the cost of leasing and renovating a suitable space, purchasing salon equipment such as chairs, styling stations, wash basins, and hairdressing tools, as well as investing in high-quality hair care products. We will also allocate funds for obtaining necessary licenses, insurance, and staff training to ensure top-notch services. Additionally, expenses will cover brand development and marketing strategies to establish our presence in the local market.

Our revenue assumptions are based on a thorough market analysis of the local demand for hair care services, taking into account factors such as population demographics, competition, and current beauty trends.

We expect a steady increase in clientele, beginning with a conservative estimate and expanding as our salon's reputation for excellence and customer satisfaction grows.

The projected income statement outlines expected revenues from hair care services and product sales, direct costs of services (such as hair care products and stylist wages), and operating expenses (rent, utilities, marketing, administrative salaries, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our hair salon.

The projected balance sheet will display assets unique to our salon, including salon equipment, product inventory, and any improvements made to the leased space, as well as liabilities such as loans and accounts payable.

It will provide a snapshot of the financial condition of our hair salon at the end of each fiscal period.

Our projected cash flow statement will detail the inflows and outflows of cash, enabling us to predict our financial needs. This is crucial for maintaining a healthy cash balance to support daily operations and growth initiatives.

The projected financing plan will outline the sources of funding we intend to tap into to cover our initial costs, such as personal savings, bank loans, or investor capital.

We will closely monitor the working capital requirement to ensure we have sufficient funds to manage day-to-day activities, including stocking salon products, managing inventory, and paying staff salaries.

The break-even analysis will determine the level of sales we need to achieve to cover all our costs, including initial investments, and begin generating a profit.

It will signal the point at which our hair salon becomes financially sustainable.

Key performance indicators we will track include the average revenue per customer, the customer retention rate, the gross margin on services and products, and the return on investment to gauge the efficiency of the capital we have invested in our salon.

These metrics will assist us in measuring the financial performance and overall success of our hair salon.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a hair salon business .

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Hair salon business plan: a complete guide

Learn how to build a hair salon business plan, from budgeting to deciding upon your ideal client, logo, and more.

Table of contents

If you landed on this page, you are likely about to start your journey as a new hair salon owner. We welcome you, dear beauty entrepreneur, to the world of cash flow statement, market analysis, business management, and marketing strategy.

Having your own salon is a wild ride, and we at Appointible want to help you start on the right foot (aka, beauty salon business plan).

In today’s article, we will present a hair salon business plan outline, from defining your services to growing a healthy business.

We also support the idea that a beauty salon business plan should be rich but straightforward enough that salon owners can see clear, actionable steps; thus, we include things like tools and resources and leave others out, such as an executive summary.

Step 1: Define your hair salon services

The first step in building a business plan for your salon starts with defining your services. You may already have an idea of the hairstyles and services you want to offer, but it’s essential to consider some critical factors before finalizing your offerings.

Some of these factors are easy to understand, while others may require more attention, so in this section of the article, we will go through each of them.

List what you know how to do (and what you don’t)

Start by creating a list of all the hair styling services you can provide. List what hair-cutting styles and hair-care services you can perform. Consider all your certifications, work experience, and others to build your list.

Then, list the hair and beauty services that you lack the knowledge to perform. It can be that you miss the required qualifications or is just out of practice; either way, list them as things you can’t offer at your new salon.

If there are gaps in your knowledge that you want to cover, mark them distinctively, as we will come back to courses, training, and certifications later in this article.

Decide if you will hire employees.

Deciding whether you will hire employees – and how many – depends on your budget as much as on your business goals. We already discussed in Appointible  how to assess if you need to hire employees  for your salon business, so be sure to check that one out.

Nonetheless, a more minor salon may only require a couple of employees, such as a stylist or assistant. In contrast, a larger hair salon business may need a bigger team to manage multiple services, as well as tasks such as cleaning, reception, and marketing.

Take a peak at competitor salons.

When it comes to listing your hair salon services, your local competition is a great place to start. Start by analyzing what different hair cutting, hair care, and beauty services the competition offers, as it will give you an idea of what the local market expects from a hair salon.

This step of your beauty salon business plan should start from your immediate competition – neighborhood or city – but not leave out important salons from other parts of the state or country.

Keep up with industry trends.

It’s crucial to stay up-to-date with the latest trends in the hair industry to give your salon a competitive advantage. Following trends not only ensure that your business remains relevant but it also helps attract and retain clients.

Consider subscribing to trade magazines and blogs that cover the latest news and developments in the hair industry. This comprehensive list of beauty blogs ( https://bloggingtips.com/best-beauty-blogs/ ) from Blogging Tips gives an idea of where to start. Attending conferences, trade shows, and workshops is also an excellent way to learn from other professionals and get insights into the newest techniques, products, and services.

This knowledge can help you tailor your offerings to meet the changing demands and preferences of your clientele.

Why Appointible?

• Simple booking website
• Unlimited appointments and storage
• Run a multi-location business
• Available in English, Spanish and French
• SMS & email reminders
• Access from any device

Step 2: Create a detailed financial plan

Now that you have a clear idea of your target market, what services you will provide, and a general idea of at what price point, it is time to start building a financial plan for your hair salon.

Needless to say, you will need much more than a business bank account and card to call it a day and claim you have a financial plan in place. Let’s see in this step of the article how to effectively create a solid financial plan for your hair salon business.

A: Calculate your beauty salon budget

As we discussed previously in the article  top 10 habits of successful businesses , a budget is telling your money where to go instead of wondering where it went. This mentality of always being equipped with a proper budget will go a long way on your road to success.

Here are some of the budget lines you might consider when you write a business plan.

For courses and certifications

Earlier in this article, we had you write all the hair services you feel confident (or have the certification for) providing, as well as identify the gaps in your knowledge and what courses and learning paths you should take.

This is the moment of your salon business plan where your list of services and connect them to what courses and certifications you will need to invest in – whether for you or for employees.

Pro tip: plan ahead and save some recurring budget for learning for you, your stylists, and even your management team – some courses can be related to marketing, productivity, or other admin-related fields.

For a Hair salon business license

All legal business entities must have their respective licenses. Business licenses need to be paid and applied for, so the best way to deal with it is to contact a professional specialized in the beauty salon industry or approach the competent local chamber and institutions.

As licenses vary depending on location and specific services you offer, we can’t provide an exact figure. Prepare a budget line for an expense of around $500.

For Utilities and rent

Another important budget line for a hair salon business plan is the cost of utilities and rent. Rent will likely be your largest recurring expense, so it’s important to budget accordingly. You should research the average rent costs in your area and factor that into your budget, but you can expect to pay around $1000 to $2000 on rent alone.

Additionally, you’ll need to consider the cost of utilities such as electricity, water, and gas. To save on utility costs, consider investing in energy-efficient appliances and lighting and making sure your space is well-insulated. You wouldn’t believe how much these savings slowly add up in your finances.

For Hair salon equipment and supplies

You’ll need to purchase equipment such as chairs, styling stations, hair dryers, and shampoo bowls, as well as supplies such as hair products, towels, and cleaning items. Create a list of all the salon equipment and supplies you will need, and then run market research.

Ideally, run a search on wholesale beauty e-commerce, such as www.salonwholesale.com . Alternatively, network with a local community of hair stylists and salons to get an idea of there are local suppliers that offer more competitive prices.

For marketing efforts

Marketing is a crucial aspect of any successful business, including a hair salon. It’s important to allocate a budget for marketing efforts to reach prospective customers as well as retain existing clients. Think of social media, website development, ads in local outlets, etc.

To save on marketing costs, consider using free marketing channels such as social media and email marketing. You can also create your own marketing materials using free online design tools such as Canva.com or Visme.co .

For Hiring hair stylists

If you plan to hire hair stylists for your salon, you’ll need to factor in the cost of hiring and onboarding new employees. This can include expenses such as job postings, recruiting fees, and training costs.

When budgeting for hiring, consider the average salary and benefits for hair stylists in your area. You may also want to factor in the cost of providing employee benefits such as health insurance and paid time off.

To save on hiring costs, consider using free job posting websites or social media to advertise open positions. You can also offer referral bonuses to current employees to incentivize them to refer qualified candidates.

It’s important to have a clear understanding of your staffing needs and to create a hiring plan that aligns with your business goals. This will help you avoid overstaffing or understaffing your salon and ensure that you have the right team in place to provide high-quality services to your clients.

B: Calculate your rates and prices

Once you have a clear understanding of your salon’s expenses, it’s important to calculate your rates and prices in order to generate revenue and make a profit.

When setting your rates and prices, consider factors such as your expenses, your target audience, and your competitors’ pricing. You should also consider the value of your services and the quality of your customer experience.

Here are some steps you can take to calculate your rates and prices:

Run a break-even analysis: This is the point at which your salon’s revenue covers your expenses. To calculate your break-even point, divide your total expenses by the number of services you expect to provide each month.

Research your competitors’ pricing: Research the pricing of other salons in your area that offer similar services. This will give you a sense of the market rate for your services.

Set your prices: Once you’ve determined your break-even point and researched your competitors’ pricing, you can set your prices. Consider pricing your services slightly above the market rate to reflect the quality of your salon and the value of your services.

Review and adjust your pricing: It’s important to regularly review your pricing to ensure that it aligns with your expenses and your business goals. You may need to adjust your pricing over time as your expenses or market conditions change.

Step 3: Build your brand and target market

Building a strong brand is essential for any successful hair salon business. A strong brand helps to create a loyal customer base and can differentiate your salon from competitors. Here are some steps you can take to build your brand and target market.

Define a good mission statement.

A mission statement is a clear and concise statement that defines the purpose and values of your salon. It should communicate the core values of your salon and what makes it unique.

To create a good mission statement, ask yourself the following questions:

What do you want to achieve with your salon?

What values do you want to communicate to your customers?

What makes your salon unique?

Once you have answered these questions, you can use them to create a clear and concise mission statement that reflects your salon’s values and purpose.

Define your hair salon’s ideal clients.

Defining your ideal clients is an important step in building your brand and targeting your marketing efforts. Knowing your ideal clients helps you to tailor your services and marketing messages to their needs and preferences.

To define your ideal clients, consider factors such as age, gender, income level, and lifestyle. You can also consider the types of services and products that your ideal clients are likely to be interested in.

With a defined ideal client, you can create marketing messages and promotions that resonate with them and attract them to your salon.

Define your hair salon’s name.

Choosing a name for your hair salon is a vital part of brand-building – so much so that we wrote an entire article on  picking a name for your hair salon . In short, your salon name should be memorable and reflect your salon’s values and purpose.

When choosing a name, consider factors such as: What do you want your salon name to communicate to your customers? Is the name easy to remember and pronounce? Is the name available as a domain name and social media handles?

We highly advise you to read through the article above, as you will surely come out with a name fit for successful businesses.

Step 4: Pick your salon location

Location is the most important aspect of any real estate deal, whether you are renting a place for your new business or buying a house.

Choosing the right location for your hair salon is crucial to the success of your business. Here are some steps to help you pick the perfect location:

Understand the local market and competition.

Researching the local market and competition will help you understand the demand for beauty services in the area and identify potential competitors.

Consider factors such as population demographics, income levels, and the proximity of other hair salons. Look for gaps in the market that your salon can fill or areas where you can differentiate yourself from the competition.

Pick a location with your target clients in mind.

Time to refer to the part of your beauty salon business plan where you defined your ideal client. Look for a location that is easily accessible and convenient for your target clients. For example, if your target clients are busy professionals, you may want to choose a location near office buildings or shopping centers.

Align with your brand.

Your salon location should align with your brand and communicate the values and personality of your salon. For example, if your salon is focused on eco-friendly and sustainable practices, you may want to choose a location that is environmentally friendly or close to parks and nature reserves.

Choose the right salon size.

Choosing the venue size is another make-or-break point when it comes to location. Consider factors such as the number of chairs you need, the size of your waiting area, and the size of your backroom for storage and supplies. A larger salon may allow you to accommodate more clients, but it may also come with higher overhead costs, as well as potentially looking “empty.”

Ultimately, choosing the right location for your salon requires careful research and consideration. Take the time to evaluate your options and choose a location that will help your salon thrive.

Step 5: Craft a marketing plan for your hair salon

A well-crafted marketing plan is essential to help you promote your hair salon, increase service sales, and keep existing customers coming back. Here are some tips to help you create an effective marketing plan.

Share your work online.

We could name this section “create a social media presence.” However, if there is one thing you should be working on systematically in social media is sharing your work. Yes, indeed, you would also benefit from a website, but social media is hands down the best place to show actual clients hair cuts and their feedback.

Share before and after photos, and short videos of the end result of a client’s hairstyle, ask for 5-star reviews, and more. Aim to share your work at least every second day on social media.

Continuously launch new promos.

Offering promotions and discounts is a great way to attract new customers and encourage existing ones to come back. Consider launching different types of promotions, such as referral discounts, seasonal discounts, or loyalty programs.

Keep your promotions fresh and exciting to encourage repeat business. For example, offer a discount on new services or products you introduce or host a giveaway for a free hair care package.

Build a text message marketing routine.

Text message marketing is an effective way to communicate with your customers and keep them informed about promotions, new services, and other updates. Collect your customers’ phone numbers and build a text message list to reach out to them.

Send regular updates to your text message list, but be sure not to overdo it. Limit the frequency of your messages and offer valuable content such as special promotions or early access to new services.

Step 6: Pick a dedicated booking system

Choosing the right booking system is essential for running a successful hair salon. So much so that we dedicated an entire step in your salon business plan to it; a reliable booking system can streamline your operations, help you manage appointments, and keep your clients happy.

Pen and paper can only do so much for your salon business, and free services, such as Google Calendar, are simply not fit for the job. Here are some of the things you will get to do once you pick an online appointment scheduling software for your hair salon:

You will receive appointments 24/7

With appointment scheduling software, you can get clients any time of the day, any day of the week. Working hours will become a thing of the past when it comes to selling your services.

You will boost your marketing strategy.

An appointment scheduling software can help you integrate your marketing efforts seamlessly. With automated emails and SMS reminders, you can promote your services, offer discounts, and send personalized messages to your clients. This way, you can stay top-of-mind with your customers and ensure that they keep coming back to your salon.

You will reduce the admin workload

Gone are the days of answering endless phone calls, jotting down appointments, and dealing with booking conflicts. With an online booking system, you can automate your scheduling process, send automatic appointment reminders, ask for confirmations, and more, freeing up time to focus on growing your business.

You will seamlessly manage your staff.

With a booking system, you can assign staff members to specific services, manage their work hours, and monitor their performance. You can also give your stylists access to their own calendars, which will allow them to see their schedules and manage their bookings.

An appointment scheduling software for salons looking to grow in 2023

Appointible is a powerful appointment scheduling software that is specifically designed for the hair and beauty industry. With Appointible, you can manage your salon’s bookings, staff schedules, and customer data all in one place. Appointible offers a range of features, including online booking, automated reminders, staff management tools, and an analytics dashboard, to help you streamline your salon’s operations and grow your business.

Create a free account with Appointible  and elevate your salon business plan.

Step 7: Your salon’s growth

If you followed the previous steps correctly, your hair salon is now up and running smoothly. However, you may wonder how to keep your salon growing and thriving in the competitive market. That’s why we dedicated this section to showing you the different paths for salon growth.

Horizontal salon growth

One way to grow your salon business is through horizontal growth. This means expanding your services, hiring more stylists, opening new locations, and so on. If you plan to expand horizontally, it’s important to reflect that in your branding and salon size from the outset.

For example, if you plan to have a bigger salon and offer more services, invest in the necessary equipment and create a marketing plan to attract new customers. This way, you can make sure your salon is ready for growth when the time comes.

Vertical salon growth

Another way to grow your salon is through vertical growth. This means specializing in a select number of services and aiming to become the best in the industry. By focusing on quality over quantity, you can charge higher prices and keep payroll, supplies, and overhead costs to a minimum.

To achieve vertical growth, you need to build a strong reputation and brand identity around your specialty services. This might include targeted marketing campaigns, creating a niche social media presence, and offering exceptional customer service.

No matter which growth path you choose, it’s important to research your options, plan carefully and stay up-to-date with the regulations in your area. Continuously review your efforts and tweak your strategies as needed to ensure your salon continues to grow and succeed.

We hope this article has been helpful in guiding you through the steps of opening and growing a successful hair salon business. Remember to stay dedicated, maintain a strong brand, and always put your customers first. Good luck in your journey to success!

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Beauty Salon Business Plan Template

If you want to start a beauty salon business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their beauty salons.

Below are links to each section of an example beauty salon business plan template:

Next Section: Executive Summary >

Beauty Salon Business Plan FAQs

What is the easiest way to complete my beauty salon business plan, where can i download a beauty salon business plan pdf, what is a salon business plan or beauty bar business plan.

A business plan provides a snapshot of your salon as it stands today, and lays out your growth plan for the next five years. It explains your business’s goals, business model, the type of services you will offer (beauty services, spa services, nail services, skin care services and/or hair salon services), management team, target market, and a marketing plan for the many ways you can reach new and existing clients. It also includes market research to support your plans and allow you to find the perfect salon location.

A comprehensive financial plan is also key to include so you can show investors the potential viability of your business.

Why Do You Need a Business Plan for a Beauty Salon?

What are the sources of funding for a beauty salon.

With regards to funding, the main sources of funding for a new beauty salon are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional salon business plan. Such a plan will give them the confidence that you can successfully and professionally operate your own business.

The second most common form of funding for any type of salon is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. 

This is all true for a new salon business plan or a plan to grow an existing salon business.

BEAUTY SALON BUSINESS PLAN OUTLINE

• Beauty Salon Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Beauty Salon Business Plan Summary

Other Helpful Business Plan Articles & Templates

• Easy scheduling, time tracking, & payroll
• Built-in team communication
• Compliance help and labor cost controls
• Integrate with your POS

Manage a Business

How To Write a Salon Business Plan

June 26, 2024

5  min read

By Homebase Team

Table of contents

Conquer your workday.

Join the 100K+ small businesses using Homebase for time clocks, schedules, payroll, and HR.

So you’re thinking of opening a salon business—congrats! Gearing up to owning your own business is a huge step. But if you’ve never owned a salon before or are simply looking to give your existing business a refresh, you’re probably thinking, “Where do I even start?” Well, the first step is to write a salon business plan.

What is a business plan for a salon?

A salon business plan is a written document that covers your business goals and how you’re going to reach them. Every business plan looks different. But for a salon, your business plan will likely include details like who your target customer is, where your salon is going to be located , what salon services you’ll offer, and more.

Why you need a business plan for your salon

As a salon owner, the thought of writing a detailed business plan might immediately put your stomach in knots. But we promise that the time and effort you take to put a business plan together for your salon will pay off in spades. Here are some reasons why you should have a business plan for your salon.

To prove your salon business is a good—and profitable—idea

As entrepreneurs, we often have a million great ideas. But a new business is a big commitment and investment. Your decision to launch a salon is most likely a great one. But a business plan doubles as a gut check to make sure that you have a solid plan in place. This way, you can open your salon doors with confidence knowing that you’re almost guaranteed to be a success.

To help you reach your short and long-term salon goals

What are your business goals? What steps do you need to take to reach them? How long will it take to reach those goals? A well-written business plan answers these questions and more. It’s essentially a roadmap that answers all and helps outline how you’ll reach your business goals. Then as you open and grow your business, you can look back and make sure you’re on track!

To help you get funding (and other loans)

Banks and investors often want to see a business plan before they provide you with funding. Having a business plan shows that you’ve done your research, have a plan in place, and that you’re less likely to be a risk. Even if you don’t need a loan or an investment, financial products like credit cards can be hard to come by if you don’t have a business plan.

To determine your revenue and labor costs

Salons often need multiple stylists and administrative staff. Depending on your goals and the size of your salon business, a business plan can help you determine how many employees you need to hire and train to serve your customers. Without forecasting your labor costs, you can find yourself with too many customers and not enough workers—or vice versa.

Things to consider before you start writing a business plan for your salon

Before you can start writing your business plan, it’s time to do a bit of brainstorming and research. There are some key questions you’ll want to ask yourself before you start putting pen to paper.

• Where will your salon be located?
• What experience do you have that will help you grow your business?
• Are there similar salons in your area?
• Is there something that will make your business stand out from other salons?

Once you’ve spent some time thinking about these factors, it’s time to get writing.

How to write a salon business plan in 7 steps

Here’s a simple step-by-step breakdown of how to write a business plan and the important tidbits you need to know as you get started.

1. Executive summary

The first thing anyone will read in your business plan is the executive summary. Think of it like an elevator pitch. It’s a brief summary that covers all the most important details so the reader wants to learn more about your business. As a general rule, your executive summary should cover:

• A short overview of your business venture
• Your salon mission or vision
• Your short and long-term business goals
• Highlights around why \ your salon will be successful

2. Company overview and description

This section should be an overview of your company and what makes it unique. Who are you? What do you do? Why do you do it? Don’t be afraid to dive into your background and the circumstances that led to you wanting to start your salon business. This is your opportunity to tell your story and share what makes you and your business special as an entrepreneur.

3. Market analysis

There are almost a million salons in the US—and that only covers hair salons. The thing about salons is that they can be similar and still be successful. But it’s important to understand how your particular salon will stack up. A market analysis looks at all the competing salons in your region—and beyond—to help you understand your positioning in the market. This then influences everything from your pricing strategy, your service offering, or even your location. For example, in your market analysis, you might find that you fall into the category of a premium salon, which means you’ll need to target a more affluent market. Or you might find yourself looking in an oversaturated area, so you’ll want to choose a location with less competition.

4. Salon business offerings

Not all salons are alike. For example, your salon may specialize in blowouts. Or you may have a full-service nail salon. Before you open, you should have a clear understanding of the services and products that your salon business might offer. Think of this section of your business plan as a menu of services that your potential customers can choose from.

5. Salon operations and management

This is where you’ll talk about the operational side of your business. Some things to think about around salon management might include:

• Will you rent out chairs to stylists or will you hire them as employees?
• What will your business hours look like?
• How will you schedule salon appointments ?
• What overhead costs will you have?
• What salon management software will you use?

6. Marketing and public relations (PR) strategies

As much as we wish customers would appear out of thin air, for the most part, you need to drum up excitement for your business. That’s marketing. In the marketing section of your business plan, you’ll want to Include details such as your brand messaging, how you’ll reach potential customers, and what marketing and PR investments you plan to make.

7. Financial projections

Calculating your financials isn’t the most glamorous part of owning a salon business, but it’s one of the most important. When writing a business plan, you need to review your short- and long-term financial projections. This is essentially an estimate of how much money you expect to spend and make over the course of the next few years. The goal is to show that you’ll have a profitable business. And if not, it allows you to tweak your business strategy so you can create a financial plan that you feel comfortable with.

Free salon business plan template

Need some help getting started? We’ve put together a free template that covers all the basics. Use this as a starting point, so you know that your business plan is comprehensive and includes everything you need ahead of opening day. Download your free salon business plan template here.

Business tools as sharp as your shearing scissors

Once you have a salon business plan, it’s time to make a plan for hiring and managing your employees. Homebase is the all-in-one employee management tool loved by 100,000 + salons and small businesses. With Homebase, you can:

• Schedule employees for your salon in just a few clicks.
• Track employee hours and run payroll from one app.
• Stay on top of employee compliance and labor laws with expert HR guidance.

Get the all-in-one employee management app that’s a (hair) cut above the rest. Try Homebase for your salon today.

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Homebase Team

Remember: This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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How To Create a Successful Salon Business Plan in 10 Steps [+ Template]

Looking to open your own salon? Despite a looming recession, it’s a great time to do so — beauty industry statistics show the salon industry grew about 17 percent in 2022 , and the majority of Americans claim they’re not planning to cut back on beauty spending anytime soon. 

But before you start rounding up clients, you will need a thorough salon business plan to align your goals. While it may be tempting to jump in on the action as soon as possible, taking the time to plan your business properly will set you up for success in the long run. From market analyses to advertising campaigns, we’ll walk you through everything you need to know to create a winning salon business strategy.

1. Create your mission and vision statement

First things first — what are you planning to do with your new salon business? To answer this question, you’ll need to put some serious thought into your mission and vision statements. These statements articulate the purpose and goals of your salon and will guide the rest of your business plan.

Mission vs. vision statements

While mission and vision statements are often used interchangeably, there are differences between the two. It’s recommended that a new business have both statements before laying out its business plan.

A mission statement describes the short-term goals of the company — essentially defining the core purpose of the company and how it plans to achieve that purpose. Let’s break down this example of a salon’s mission statement:

Mission Statement

“We strive to offer our clients the highest-quality cuts at affordable prices because every woman deserves to look and feel her best.”

In this example, the business plans to offer high-quality cuts at affordable prices — the “what” and “how” —  because they believe “every woman deserves to look and feel her best” — the “why,” or core purpose.

The mission statement serves as a roadmap to achieving your business’s vision statement.  A vision statement defines your salon’s big-picture aspirations — the driving force behind your short-term actions and goals. Here’s a vision statement the example salon above might write:

Vision Statement

“We strive to expand our services nationwide as the premier choice for affordable, high-quality cuts.”

This example clearly states the business’s future goals to help define the path toward future success.

2. Know your market

Before you open your doors, you need to know who you’re opening for (your target audience) and what salons you’re up against (your competitors). Both will provide valuable information to help you determine what your clients value most .

Recognize your target audience

Your target audience is a particular group of people who may be interested in your services. A target audience profile can be broken down into four main characteristics:

• Demographic: The main characteristics of your target market, including age, income level, gender, occupation, and education level
• Geographic: Where your audience lives, works, or travels 
• Psychographic: Your target audience’s lifestyle, attitude, interests, and values
• Behavioral:  What your ideal clients want, why they want it, and how they go about achieving their needs

Let’s face the facts — everyone and their mom could use a cut and color. It’s up to you to determine who to market your business to. Are you most interested in serving the most high-end clientele, or would you rather cater to college students looking to experiment with fun, trendy styles? Will the area of town you’re located in affect how you position and price your services? 

Knowing your target audience will influence every stage of your business plan, so it’s essential you recognize what their needs and motivations are from the start.

Conduct a market analysis

Analyzing your salon’s target audience is just the first step in breaking down your target market. To truly get a comprehensive view of your business landscape, you’ll want to conduct a market analysis. 

A market analysis is a thorough assessment of your specific market within the salon industry. In addition to defining your target market, a market analysis should include:

• Potential clients’ buying habits
• The size of your target market
• The state of the industry and industry projections
• How much your potential clients are willing to pay for your services
• Who your main competitors are
• Your competitors’ strengths and weaknesses

A thorough market analysis is essential for reducing risks, identifying emerging trends and opportunities, and projecting revenue. It’s good practice to reevaluate your findings annually and adjust your salon’s business plan accordingly. Plus, you’ll be able to factor in actual customer feedback once your doors are open.

Take advantage of free market research tools like Google Trends, SurveyMonkey, and data from the Bureau of Labor Statistics and U.S. Census to aid in your market research strategy.

3. Identify your strengths, weaknesses, opportunities, and threats

With a better understanding of how you plan to position your salon within your target market, you’re ready to dive into your first SWOT analysis. A SWOT analysis is a compilation of internal and external factors that will impact your business.

Internal factors are resources and experience readily available to you — they’re categorized as either strengths or weaknesses. Examples of internal factors to include in your SWOT analysis are:

• Financial resources
• Physical resources
• Human resources
• Natural resources
• Trademarks, patents, and copyrights 

Your opportunities and threats are defined by external factors, such as:

• Market trends
• Economic trends
• Demographics
• Suppliers and partners
• Political, environmental, and economic regulations

Once you’ve completed the SWOT framework, create an innovative business strategy that will leverage your strengths and opportunities to overcome your weaknesses and threats. The SWOT analysis compels you to take a methodical and objective look at where you stand now and what you need to do to succeed.

4. Draft your salon’s executive summary

With your target market and new industry knowledge in mind, it’s time to create the most important part of your salon business plan: the executive summary. 

An executive summary is a short synopsis of your overall business plan and intentions for your new salon. Don’t let its size fool you — your executive summary is the first impression business partners and investors will have of your business. While it may be brief,  your executive summary must make an impact.

Business strategy experts agree that an executive summary should be between 5 and 10 percent of the length of your entire business plan.

What to include in your executive summary

A solid salon executive summary will provide a ton of useful information condensed into a short, sweet, and easy-to-understand package. Try your best to tie in the following when drafting your summary: 

• Strong introduction: If you want to capture your reader’s attention immediately, you’ll want to put together an introductory paragraph that not only pulls them in, but explains who you are, what you offer, and what problems you intend to solve. Keep your intro short and concise.
• Market view: Based on your market research analysis, briefly summarize the state of your target market, the needs of your target audience, and how you plan to position your salon amongst your competitors. 
• Unique selling points: What will your salon bring to the table that’ll set it apart from competitors? List any unique selling points that customers and stakeholders will find valuable. 

Financial expectations and forecasts: If you plan on sharing your business plan with potential investors or stakeholders, list the projected expenses and costs it’ll take to open and operate your salon, as well as what profits you expect to generate within the first six months. Explain why your salon needs financing and why investing in your business is a smart move.

5. Write your salon’s unique business description

Congratulations on completing the research portion of your salon business plan — it’s finally time to start bringing your dream salon to life! 

First and foremost, you’ll need to figure out how to brand your salon. There are almost a million registered hair salons in the U.S., so how can you make yours stand out?

Start by drafting your salon’s business description — this should set the scene for what customers can expect when walking into your salon. Are you hoping to give off a funky, casual vibe? Or maybe a more elegant ambiance, champagne included? The tone of your business description should convey this, as well as:

• Services you specialize in
• Packages or perks you offer
• Unique selling points that distinguish you from other salons

With a business description in place, you can now create a company logo and tagline to complete your new brand!

6. List your products, services, and prices

Let’s get down to the nitty-gritty — what are you offering, and how much will it cost? While you may be able to do it all, some services will pay off better than others. You may be doing yourself a disservice if you purchase all the supplies for perms when your clients want blowouts. 

To determine which services and products will benefit your business the most, ask yourself the following questions:

• What is my target audience interested in?
• What do I have experience in?
• What is trending?
• What are my competitors offering (or more importantly, what are they not)?

Once you have your service list set, you’ll need to calculate pricing . Striking a balance between making a stellar profit and attracting and retaining clients is one of the most difficult parts of running any business. Consider these factors when determining a fair price for your salon services:

• Similar rates in your area
• Cost and use of supplies
• Time spent on the service
• Your experience level

Review and reevaluate your services and pricing at least once a year to ensure you’re charging your worth. Cost of living, supply costs, and any additional training you may have undergone warrant a price change — just be sure to notify your loyal regulars before new pricing goes into effect.

7. Lay out your salon’s operation and logistics plan

While the earlier sections of your salon’s business plan defined your goals, your operation and logistics plan will detail how you plan to meet them. Your operations plan will have two sections:

• Short-term processes: List all the tasks, employees, vendors, software, and supplies you’ll need to run your salon on a day-to-day basis.
• Long-term milestones: Describe what you hope to achieve in the future. For new businesses, this could include the date you plan to finalize your lease, your grand opening date, or the date you hope to reach your first $100,000 in sales. 

Putting together your operations and logistics plan may make you realize just how much work goes into running a salon. Scheduling appointments, promoting your new business, managing payment processes, and tracking down no-shows on top of actually performing your services can get really overwhelming, really fast. Learn how StyleSeat can help you manage and grow your business so you can focus on what you do best.

8. Define your marketing and outreach strategy

No matter how much effort you put into designing your salon, acquiring top-of-the-line tools, or hiring the best stylists in your area, no one’s going to schedule an appointment at your salon if they don’t know you exist. That’s where your salon marketing and advertising strategy comes into play.

While there are literally thousands of way to bring attention to your salon, these marketing and outreach tactics are tried and true:

Build a website

Whether you’re targeting tech-savvy Gen Zers or old-school baby boomers, you’ll need to ensure your business is Google-able. Building your website should be the first step in creating your online presence. For the best customer experience, make sure to include your salon’s:

• Contact information and address 
• Services and pricing
• Unique selling points and mission statement
• Customer reviews and testimonials
• Links to social media profiles

Invest in social media marketing

Harness the power of Instagram , Facebook, TikTok, Pinterest, and more with a dedicated social media marketing and influencer strategy. Sharing behind-the-scenes content, before and after photos, and happy customer reactions can make your business appear more personable and reputable. It’s also a great way to boost engagement, interact with your client base, and cultivate brand awareness.

Studies Show

44 percent of beauty salons were focused on growing their social media profiles in 2022, and 35 percent of stylists claim their growing social following was their biggest opportunity for business growth.

Establish rapport and build customer loyalty

Convincing a potential customer to give a new hairstylist a try is a lot more difficult than it seems. One way to sweeten the deal is to offer first-service discounts or lower prices the first few months to get interested clients through the door . If they’re happy with your service, they’ll likely stay — especially if you have a loyalty program in place that offers discounts and perks for regular customers!

8. Get your finances in check

If you’ve already set your prices, take a bow — the hardest part of your salon’s financing strategy is already done. However, you’ll need to take your money a step further to get a rough idea of how your business will progress on a monthly and annual basis. This is especially important if you plan on applying for a loan or seeking investors. 

It may be best to put together your full financial statement three to six months after opening your salon. It should include your income statement, balance sheet, and cash flow statement so you and your stakeholders can get a better understanding of your salon’s financial health. 

Income statement

Your income statement lists both your revenue sources, expenses, and net income over a given period of time. This should include:

• Cost of sales
• Administrative expenses
• Operating expenses
• Non-operating income and expenses
• Gains and losses
• Non-recurring items

If you haven’t opened your salon yet, you can project future milestones with the same information.

Balance sheet

Your balance sheet provides a look at how much equity you have in your business. It consists of two parts:

• Business assets: What you own, such as cash, accounts receivable, inventory, prepaid expenses, or salon supplies  
• Liabilities: What you owe, including loans, credit card balances, payroll taxes, accounts payable, and your lease 

Once you’ve listed your salon’s business assets and liabilities, you can calculate your shareholder equity by subtracting the total value of your liabilities from your assets.

Cash flow statement 

Your cash flow statement will help you see when cash is low, when you have a surplus, and when you might need to access funding to keep your business afloat. Your cash flow statement lists revenue and expenses similar to your income statement, but it also takes into account when revenue is collected and when expenses are paid. 

Your cash flow is positive when you have more cash coming in than you have going out, and negative when the opposite is true.

Using graphs to visualize your cash flow can help you forecast when you may need to adjust operations to account for negative cash flow.

10. Plan for the future

With a well-structured business plan in hand, you’re ready to take on whatever the market has in store for you — at least for the first six months. But if you want to stay on top of industry fluctuations, the newest marketing trends, or competitor announcements, consistently review your salon business plan and company goals.

Salon business plan template

Opening a new salon requires a lot of moving parts — from remodeling your space to hiring your A-team, putting together your actual business strategy can get lost in your to-dos. Download this free helpful template to streamline your business plan and keep your goals top of mind.

The average profit margin for salons is 8.2 percent — 0.5 percent higher than the general business average of 7.7 percent. Salon owners in the U.S. can expect to make between $14,441 and $385,332, with an average salary of $74,699.

The startup cost for your salon will depend on a number of factors, including the type of salon, location, size, number of employees, and type of clientele you’re hoping to attract. Expect to spend anywhere from $10,000 to $200,000 before your grand opening.

Salons can make more money by implementing an effective marketing and advertising strategy, running promotions and contests, and reevaluating their pricing structure. Research your industry, emerging trends, and your competitors’ strategies for inspiration.

A thorough salon business plan can help you determine your short- and long-term goals, resources required, and effective strategies to drive business to your salon. Ready to hit the ground running? StyleSeat can help you manage and grow your new salon — no monthly fee required.

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