Amount
Use of Capital
If our beauty salon is fully capitalized, we hope to be profitable by (time period).
[Sender.Company] will be owned and run by [Sender.FirstName] [Sender.LastName] in the (intended area of business operations). Our mission is to serve the (area) population with premium services including (for a hair salon, services could include cuts, colors, blowouts, styles, etc. but gear these services to the specific type of salon) and more. [Sender.Company] is seeking funding in order to (describe the purpose of desired funds i.e. build or rent a facility, buy salon equipment, hire staff, etc.).
Target market.
Our clientele is made up largely of (families, working professionals, high-income households, etc.) and we intend to cater to this market by (write down the specific strategies geared towards this target market).
Our competition is made up of minimal/many salon businesses with the most significant competitors including (names of main competitors) . We plan to win customers from our competitors by offering (describe differentiating factors you plan to use to outshine your competition i.e. more services, better prices, nicer salon facilities, etc.).
[Sender.Company] will take advantage of targeted marketing strategies to win customers from our competitors and build our brand. These strategies include (describe some of the specific strategies that you intend to use for salon marketing).
[Sender.Company] will offer its clients a range of premium services including (describe various services) . We will also sell a variety of products such as (describe types of products).
Beauty salons require a consistent supply of materials to operate effectively, and these supplies include (describe supplies). We have established relationships with various suppliers and have negotiated rates for these necessary items giving us pricing assurances for the foreseeable future.
[Sender.Company] intends to hire (number) of staff and have (number) chairs operating. Our hours of operations will be from (describe days and hours the salon will be open).
All of our staff will be fully licensed and compliant with local and regional regulations. In (area) salon staff are required to have (describe specific licensing required) , and this will be a hiring requirement for our personnel.
We expect our monthly outlay of expenses to approximate to the following:
[Sender.Company] will be run primarily by [Sender.FirstName] [Sender.LastName] who has extensive industry experience and is fully equipped to run a salon business. (Go into additional detail here).
(Add more biographies for other business owners or key management personnel here)
[Sender.FirstName] [Sender.LastName]
[Sender.Company]
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Planning to open or manage a beauty salon can be an exciting endeavor, but it also requires careful planning and strategy. That's where ClickUp's Business Plan Template for Beauty Salon comes in handy!
Our comprehensive template is specifically designed for entrepreneurs in the beauty industry, helping you outline every aspect of your salon's vision, target market, services offered, marketing strategies, financial projections, and operational details. With this template, you'll be able to attract investors, secure financing, and set yourself up for success.
From defining your unique selling proposition to analyzing market trends, our Business Plan Template for Beauty Salon has got you covered. Get started today and turn your salon dreams into a reality!
When it comes to opening or managing a beauty salon, having a solid business plan is essential. With ClickUp's Business Plan Template for Beauty Salon, you can:
When it comes to planning your beauty salon business, ClickUp's Business Plan Template has got you covered with all the essential elements:
Starting your own beauty salon can be an exciting venture, but it's important to have a solid business plan in place. Follow these six steps to use the Business Plan Template for Beauty Salon in ClickUp:
Begin by clearly articulating the vision and mission of your beauty salon. What is the purpose of your business? What specific services and experiences do you want to offer to your clients? This step will help you establish a strong foundation for your business plan.
Use a Doc in ClickUp to outline your vision and mission statements for your beauty salon.
Before diving into the details of your business plan, it's crucial to understand your target market and the competitive landscape. Research the beauty industry in your area, analyze the demographics of your potential customers, and identify your competitors. This information will help you make informed decisions about pricing, marketing strategies, and service offerings.
Create custom fields in ClickUp to track your market research data and organize it for easy reference.
Based on your market research and your own expertise, determine the range of services you will offer at your beauty salon. Consider services such as haircuts, styling, coloring, manicures, pedicures, facials, and waxing. Determine the pricing structure for each service and any packages or promotions you may offer.
Use tasks in ClickUp to create a list of your services and assign pricing and package details.
To attract and retain clients, you'll need a strong marketing strategy. Identify your target audience, and develop a plan for reaching them through various channels such as social media, local advertising, partnerships, and events. Outline your marketing budget and set goals for customer acquisition and retention.
Use the Calendar view in ClickUp to plan and schedule your marketing campaigns and track their effectiveness.
Building a financial forecast is a critical step in your business plan. Estimate your startup costs, including equipment, supplies, rent, and licenses. Project your revenue based on your service offerings and pricing. Calculate your monthly expenses, including staff wages, utilities, and marketing costs. Finally, determine your break-even point and set goals for profitability.
Use Dashboards in ClickUp to create visual representations of your financial forecast and track your progress.
Once you've completed your business plan, take the time to review it thoroughly. Ensure that all the information is accurate and aligns with your vision and goals. Seek feedback from mentors or industry experts, and make any necessary revisions. A well-developed and regularly updated business plan will serve as a roadmap for your beauty salon's success.
Set a recurring task in ClickUp to review and update your business plan regularly, ensuring that it remains relevant and guides your decision-making process.
Entrepreneurs planning to open or manage a beauty salon can use the ClickUp Business Plan Template to create a comprehensive and professional business plan that covers all aspects of their salon.
First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.
Next, invite relevant members or guests to your Workspace to start collaborating.
Now you can take advantage of the full potential of this template to create a successful beauty salon:
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The US salon industry includes more than 80,000 establishments with a combined annual revenue of about $532 billion. So opening a salon, and owning a salon business is a pretty safe bet; it’s steady and profitable . But lack of proper planning makes it difficult to juggle all the aspects of your business, starting from marketing and sales, to accounting, and whatnot.
Here’s a quick tip! Searched all over the internet for concrete information on how to open your own salon? Confused? Don’t worry, we’ve got you covered! Check out this blog on opening your own salon business that gives you a comprehensive 10 step guide to help you get started now.
Writing a properly structured salon business plan is crucial to guarantee your salon’s success in this highly competitive market. Whether you’re wanting to secure a business loan for your salon or trying to expand or reinvent your salon business, a business plan for your salon will help you get there.
Whipping up a perfect business plan can be pretty daunting because it needs to be immaculate. No worries! Here we’ve broken down the entire process into 7 easy-to-follow , foolproof steps, along with their templates, to help you create a successful salon business plan.
Whether it’s a hairdressing salon business plan, a general beauty salon business plan, or even a small salon business plan for opening a salon on your own from scratch, we’ve got you covered. This is a complete, comprehensive guide to help you in the process of making a business plan for a salon. It’ll give you a basic understanding of how to write a salon business plan in the easiest possible way.
I) mission statement .
It articulates the immediate purpose of your salon business. Under this, you can state all the short-term goals that you plan on achieving with your salon within 6 months , stretching up to a year.
Here’s how you can nail a perfect mission statement
Now, where do you aim to take the salon’s growth in the next 5 years ? Well, if you’re dreaming, dream big! And you can be as ambitious as you want, the sky’s the limit.
Setting strategies for a longer-term makes sure that you don’t stumble on the road to success. It makes the overall structure of your business stronger. It prepares you for anything that the fickle market demands from you and throws at you.
Here’s how you can write a perfect vision statement :
After you write the mission and vision statements, you can summarize everything that you’re aiming to achieve with your salon under an Executive Summary. Whether you’re writing a business plan for a hair salon or a business plan for a beauty salon, you should be properly aware of what your intentions are with the salon. This section is the most important part of your business plan as it dictates the tone of your salon, and makes an impression.
Remember to keep this section very brief and concise to give an overview, as you’ll be elaborating on these points in the later sections of your business plan.
If you’re having trouble writing your salon’s executive summary, you can always write it after you’re done with all the other sections in the business plan . This will give you a better understanding of your salon business and help you succinctly put your points together to describe it.
Divide your business summary into sections of opportunities and expectations, and put brief points in those subsections in the most convincing way. The following template can help you with this :
Make sure you catch the eye of potential investors in the above section. Don’t forget to state how you can attract potential customers.
Analyzing and defining a target market for your salon is very important as it goes hand in hand with your salon’s growth and outreach .
A beauty salon can service all genders and age groups. Your target audience can include working professionals, college students and teenagers, homemakers, to-be-Brides, and even children. And each group will require different types of services. So make sure you list down each individual section of your target market and what services they would require.
Here’s a checklist to make sure you’re going the right way about it.
Do not forget these bases:
For eg: If your salon offers Diamond Facial at $200.00, then you can list this service out as follows :
With a great market demand, several strong competitors emerge. And we don’t want your salon to get lost in the sea of other salons now, do we? As it goes, keep your clients close but your competitors closer.
Figuring your competitors out gives you a necessary nudge in the right direction to take your business plan forward. It gives you an idea of what the other salons are practicing with their clients, and what gaps they’re leaving that you can fill up as you step into the salon business yourself.
So now that you have your market and your competitors figured out, it’s time to work on your salon business . A beauty salon or a hair salon is fine, but what kind of salon do you want yours to be like? Setting a proper description for your business gives your salon a custom style and personality.
Your business description should include an overview of the products and services that your salon would offer, and how your salon would stand out in the market. Setting a trademark vibe to your salon also helps with its brand image.
Once you’re done with the salon’s description and personality, set a brand logo and a tagline to go with it. To get a professionally designed custom logo, you can always reach out to freelancers or companies that can do it for you, like 99designs .
You can also use an online designing software like Canva to design your salon’s logo on your own.
And that should complete the branding.
Creating a business brand will prepare you to answer someone asking you “Why should I come to your Salon?”
Remember to make your salon stand out, noticeable, and interesting.
Now you have to position your salon in the market in a way that makes people take an avid interest in “the new salon”. Your target audience will guide you towards the perfect approach to spread the word around about your salon.
A simple guide to writing the marketing plan for your salon business :
Marketing Tip! Want to pull off a great marketing campaign for your salon business but don’t know where to start? Do you feel like the marketing section in your business plan is incomplete? For more detailed marketing ideas for your salon, check out our blog on 7 hand-picked salon marketing ideas to boost your business .
It’s time to play the number game. This is probably the trickiest part of writing a salon business plan because you have to be extremely careful while juggling your revenue and expenditure budget optimally.
You don’t want to scare or throw off your customers by charging exorbitant prices for the services, but at the same time, you don’t want to crash and drown in debt yourself. Not to forget, cutting costs on cosmetics may affect the service quality. Cut hair, not costs!
Ergo, you need to have a proper financial plan for your salon.
Writing a detailed financial plan will help you get a rough idea of how your salon would be progressing on a monthly/ yearly basis. Moreover, if you’re applying for a loan, your financial plan will determine your eligibility .
Fixed Costs: This section includes all the costs associated with your salon business that must be paid regardless of the customer traffic in your salon.
Variable Costs : This section includes all the costs in your salon business that are directly associated with the customer traffic in your salon.
The following simple template can help you make the financial plan for your salon:
i) Sales and revenue projections for the first five years :
Figure out how much you’ll charge for your services, and estimate how many services you may perform in a week. A periodic analysis of this over the next five years will give you the necessary projections. Put the details down in a spreadsheet to keep it organized. It also helps to collate all this information and analyze using bar graphs.
ii) Expenses’ budget :
Break down the expenditure of your salon for a given term, by referring to the “fixed and variable costs” list that you made. You can pick the term to be a month, a quarter, or a year long .
It’s a safer practice to stick to a month-long or a quarter-long term. You don’t want the budget analysis task to loom over you and become a burden. Not to forget, it keeps you in touch with the financial status of your salon business.
iii) Estimated profit margins:
Accumulate the sales projections and budget report analysis to find out the profit for that term. Display the margins in pie charts or bar graphs for easy comprehension.
iv) Liabilities:
Note all the losses that your salon business can possibly incur in the time period that you have defined as a term. For example, your blow dryers may stop functioning and need to be replaced.
Also include the factors that may stunt your business from growing. For example, you may be short on staff, or your nail salon is lacking an appointment scheduling and business management tool.
v) Cash flow statement:
Make a projected plan of cash flow-in and flow-out for your defined term, where you include cash flow from sources that are not directly related to your salon services or your salon business-related expenses.
Include the cash flow from loans, loan payments, taxes, and personal funds that you used for your salon.
vi) Break-even analysis:
Predict the break-even point for the first five years of your business. Break-even is achieved when your salon business has covered all the expenses, and your sales surpass the expenditure costs. From that point on, your salon will start earning profits.
Dealing with numbers can be tedious and scary, especially when you already have a lot of other things on your mind as a salon business owner. Moreover, documenting the financial projections yourself can be a pretty daunting task, especially because there’s no room for mistakes.
Instead of making the document yourself, you can choose to consult professionals to help you write the perfect financial plan for your salon.
Executing a well-structured salon business should reap good-looking numbers. And the first step towards that is making a killer business plan for your salon.
It gives you the courage to place your faith in your business, and we don’t want you to doubt something you’re passionate about. Remember that you can convince the people in the market about all the great things your salon has to offer, only when you truly believe it yourself.
So go on ahead, start creating your salon business plan today, and give your dreams a much-needed flight. Good luck :))
About Appointy We at Appointy, help business owners grow and run their businesses with our online scheduling software. This blog was a part of our ‘Manage your Business’ category, where we provide expert tips, and resources, or simply talk about the challenges that small and medium businesses face every day. If you have any thoughts on this blog or would like to chat about your business struggles and achievements, let us know in the comments below. We love a good talk!
Am really satisfied thank you
The blogs are really appreciable and one can trust the knowledge and information provided in the writing.
This blog was so helpful.. I really appreciate they way it was broken down and easy to understand.
Thanks Brittany 🙂
Very nice article .Thanks for sharing this great post.
Thanks a lot 🙂
Thanks this blog really helped me now I know where to start
Happy to help! 🙂
Great information. It’s really useful. Please shares these kinds of information in the future.
Thanks! Please subscribe to https://blog.appointy.com/ for more such information.
Very Informative thank you so much for this wonderful article
good article
Interesting & informative to read, thank you for sharing this article with us. it’s really helpful to me. Can you suggest something on started a homemade business plan?
Very nice content about salon buisiness,Its very informative.
Very insightful blog post. Thanks for sharing
The perfect salon business plan requires defining your vision, researching the market, outlining services and pricing, addressing operations and finances, and emphasizing exceptional customer service
It is really helpful. Thank you for the content
Thanks for your content, it is very helful.
Let this be a guide for those starting salon business. Thank you for the blog.
Thanks for the information
Very well said! All your tips and advice is so helpful.
Thanks, Peter! 🙂
You are welcome Netra! You have a great blog, indeed!
Thank you for the blog. Its very helful
Thank you for educating us! A business plan is very crucial in all businesses. This is a great guide!
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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.
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 .
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 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.
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.
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.
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.
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.
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.
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 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.
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
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.
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 .
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.
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.
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
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 .
Written by Dave Lavinsky
Over the past 20+ years, we have helped over 5,000 entrepreneurs and salon owners create business plans to start and grow their hair salons. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a hair salon business plan template step-by-step so you can create your plan today.
Download our Ultimate Salon Business Plan Template here >
A successful salon 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 objectives and goals as the salon owner and your strategy for reaching them. It also requires you to conduct market research to support your plans. Your business plan is the roadmap to your salon’s success and growth.
If you’re looking to start a salon or grow your existing salon you need a business plan. A successful business plan will help you raise funding, if needed, and plan out the salon’s growth in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.
With regards to funding, the main sources of funding for a salon business include bank loans and angel investors. With regards to bank loans, lending institutions will want to review your salon business plan and gain confidence that you will be able to repay your business loan payments including 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 business plan. Such a plan will give them the confidence that you can successfully and professionally operate a salon business.
The second most common form of funding for a salon is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan.
How to write a business plan for your salon.
A hair salon business plan outline should include the 10 sections as follows:
Company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.
Your executive summary details an introduction to your salon business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of hair salon you are operating and the status; for example, are you a startup, do you have a hair salon with existing clients and revenues that you would like to grow, or are you operating a chain of hair salons.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the hair salon industry. Discuss the type of hair salon you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your hair salon’s marketing strategies. Identify the key members of your team. And offer an overview of your financial plan.
In your company description, you will detail the type of hair salon you are operating.
For example, you might operate one of the following types:
In addition to explaining the type of hair salon you operate, the Company Analysis section of your business plan needs to provide background on your business.
Include answers to question such as:
In your industry analysis, you need to provide an overview of the hair salon business.
While this may seem unnecessary, it serves multiple purposes.
First, researching the hair salon industry educates you. It helps you understand the market in which you are operating.
Secondly, a thorough market analysis can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards a new type of hair or hair service, it would be helpful to ensure your plan included offering such services.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the hair salon industry research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your hair salon business plan:
The customer analysis section of your hair salon plan must detail the local clients you serve and/or expect to serve.
The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of hair salon you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing efforts than teens.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most salons primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
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With Growthink’s Ultimate Salon Business Plan Template you can finish your plan in just 8 hours or less!
Your competitive analysis should identify your indirect and direct competitors and then focus on the latter.
Direct competitors are other hair salons in the local community.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes other local businesses that sell products such as hair dye, hair treatments, or styling products. You need to mention such competition to show you understand that not everyone in your target market frequents a hair salon on a regular basis or at all.
With regards to direct competition, you want to detail the other local businesses with which you compete. Most likely, your direct competitors will be hair salons located close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a hair salon business plan, your marketing plan should include the following:
In the product section you should reiterate the type of hair salon that you documented in your Company Analysis. Then, detail the specific hair services you will be offering.
Document your pricing strategy and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the service menu you will offer and their prices.
Place refers to the location of your hair salon. Document your location and mention how the location will impact your success. For example, is your hair salon located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of new clients.
Here you will document how you will drive new clients to your location(s) and the loyalty programs you will implement to keep your loyal clientele. The following are some promotional methods you might consider:
Also think about your hair salon’s Unique Selling Proposition (USP), which should answer why customers should choose your salon over others. Make sure your USP is reflected in your marketing.
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your hair salon such as serving customers, inventory management, keeping the hair salon clean, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new salon.
To demonstrate your hair salon’s ability to succeed as a business, a strong salon management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in the hair salon business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in salons and/or successfully running retail and small businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you serve 20 customers per day or 50? Will your average price point be $50 or $100? How much revenue do you expect to make each year? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your hair salon, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most salon owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 hair salon contract to provide hair salon services to their employees. Let’s assume the contract would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a hair salon:
Financial planning is about getting the numbers right to create a compelling and valuable hair salon business plan and, therefore, increases the chances of a successful launch of your new salon. The “right” type of numbers depends on who you are targeting the plan at. Consider the different needs of investors and lenders and what they want out of the financial section of your business plan.
The numbers that investors want to see are realistic, but conservative, projections that still show a return that they feel is required by the level of risk they will take on by investing and by the opportunities to use their money elsewhere that they will give up (their opportunity risk). You lower the risk that investors feel they are taking on by showing proof of the management team’s experience, well-thought out marketing and operations plans, a quantifiable customer target market with demonstrated needs that the products and services of your salon will fulfill, and a competitive landscape which presents an opportunity for your business to steal some market share from the current players. Within the financial section, you support this lower risk by explaining your future revenue assumptions in a way that shows a gradual build up to profitability and a rationale for how the number of customers you expect is reasonable.
For some businesses, the return required by investors is only fully realized in the event of the sale of the business. However, an investor in a salon with modest dreams of being a local leader and an ongoing concern may show significant investor return through dividends paid out as the cash becomes available. For most investors, the return must be significantly greater than that of a safe investment like certificates of deposit or treasury bonds or mutual funds. Investors personally interested in your success (like family or friends) may not require as high of a annual return, while professional investors will be serious about a high return.
Lenders are most interested in the safe return of their principal with interest over time, and will not care so much about the absolute value of the company, beyond the value of its assets which can be seized and liquidated in the case of a loan default. To show lenders the numbers they want to see, the financial plan shows the business becoming cash flow positive relatively quickly to allow for these payments to begin, and for this situation to continue throughout the years after that point. Lenders will be interested in the value of assets that are being purchased (such as equipment, salon inventory, and real estate) and cautious lenders will want these assets to act as collateral and to limit their loan to this amount, unless personal assets are also offered as collateral. Lenders will share many of the same concerns as investors – that the rest of the plan is well-thought out, that financial assumptions are reasonable and conservative, and that the management team has the experience to lead.
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your hair salon’s design blueprint or location lease.
You can download our hair salon business plan pdf . Our sample hair salon business plan would also be a helpful resource for writing your own business plan.
Putting together a business plan for your hair salon will improve your company’s chances of success. The process of developing your plan will help you better understand your local market, your competition, and your customers. You will also gain a marketing strategy to better attract and serve customers, an operations plan to focus your efforts, and financial projections that give you business goals to strive for and keep your company focused.
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.
Click here to see how our professional business plan consultants can create your business plan for you.
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Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.
First impressions are everything. A really good haircut is key to making a good impression. Not everyone can afford to spend a few hundred dollars and a few hours to get a good haircut. A lot of families have budget constraints. They need a place to go to get this stuff done.
Cranium Filament Reductions will stand out by providing superior customer attention. This is particularly important in the "quick salon" space that Cranium operates in because margins are a bit lower and the goal of a quick salon is to crank through customers.
The hair styling industry is highly fragmented with national chains such as Regis Corporation, which operates diverse franchises catering to all the market segments, and also including thousands of "mom and pop" salons that are very restricted in scope and services. This makes for a highly competitive market that has low barriers to entry and exit. In addition, the clients of hair styling have significant leverage due to the low switching costs they have. However, most companies have tried to pursue only one general strategy in gaining market share. Cranium believes that it is possible to offer a differentiated service through improved customer service at no greater significant cost if the right employee incentives are provided.
The buying patterns of men and women are quite different. Typically men are more price or convenience sensitive. Men typically care less about the task of getting their hair cut. For them whatever is easiest works best. Women on the other hand are more caught up in hair styling and tend to bond more with their stylists. Because they bond more, they are much more loyal to their stylist. Once a stylist has earned their trust they are more willing to blindly put their hair in the stylists hands.
Cranium Filament Reductions’ mission is to provide reasonably priced, convenient hair styling. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.
This is a service business so it doesn’t generate high profitability. It does generate a good way for its people to make a living.
Financing needed.
The financing needed is $105,000. That includes a $45,000 loan, and owner investment (Susan) of $60,000.
Problem worth solving, our solution.
Cranium Filament Reductions is a hair salon that allows the entire family to have their hair needs satisfied in one convenient visit.
There are many "quick salons" like Cranium, however, many of these salons, such as Cost Cutters, only provide the minimum services, whereas the upscale salons can be inconvenient due to scheduling requirements and cost. The owner of Cranium perceives an unfulfilled customer need for a low-cost salon that provides maximum flexibility and strong customer attention. Using this strategy, Cranium will gain significant market share and create critical long-term relationships with its clients.
Market size & segments.
Cranium Filament Reductions will target each of the three groups separately. The males will be targeted by offering a quick, convenient, service. Because men tend to have shorter hair, they usually require haircuts more often. If they are getting a cut every four weeks and work normal business hours, most barbers are closed when the male customers have free time. Cranium Filament Reductions will cater to males with evening hours, no appointments necessary, and quick turn around times.
Generally females prefer the allure of upscale salons, however, not everyone can afford this luxury. For this reason Cranium Filament Reductions will provide the same quality hair styling, without the expensive price. Cranium will target these customers by emphasizing the sophisticated, ultra-hip styling that Cranium can offer.
Cranium Filament Reductions will also target mothers with children by offering the kids toys to play with while they wait and child-friendly hair stylists. Additionally, children receive a special rate reflecting the fact that children’s hair grows so fast that it can be expensive to keep up with regular cuts, as well as the recognition that it generally takes a lot less time to cut a child’s hair so it should be inherently less expensive.
Cranium Filament Reductions’ competitors include:
Cranium Filament Reductions’ competitive edge is based on faultless customer service. Cranium Filament Reductions recognizes that the hair cutting/styling market is crowded so it is difficult to stand out. Cranium Filament Reductions will stand out by providing superior customer attention. This is particularly important in the "quick salon" space that Cranium operates in because margins are a bit lower and the goal of a quick salon is to crank through customers.
Cranium will invest time and money into training to ensure that clients receive the best experience possible making it easier to turn them into long-term customers. By providing superior customer service, Cranium will be able to effectively compete against and outlast larger chains and independent stores.
Our keys to success are:
Marketing plan.
Cranium Filament Reductions will market themselves as a hair salon that serves everyone, men, women, and children. This will be done through flyers to be sent out with the local newspaper. Cranium will also have an in-store promotion for the first few months to lure new people in. Lastly, Cranium will offer a discount for a few months to people that refer new customers.
We intend to be active in social media, with consistent presence, offering tips on style plus information on local events and issues, occasionally humor, social media presence that helps people get to know us, like us, and trust us.
Cranium Filament Reductions’ sales strategy will be based on extremely professional interactions with the customer. Typically the "quick salons" concentrate on being quick and inexpensive, often at the expense of customer service. Anytime that a prospective customer is speaking with someone at Cranium’s the employee will have an opportunity to impress the customer. Employee training will emphasize seizing these opportunities.
Cranium Filament Reductions will also have the opportunity to increase sales of their retail hair care products every time they have a customer in the chair. Cranium offers deep discounts on the hair care products for employees to encourage usage so they can explain to the customer about their personal experiences. Additionally, Cranium offers a product-based commission structure for the hair care products where they give away the product to the employee for commissions for selling the items to their customers. These personal testimonials and commission structure will allow Cranium to generate good sales from the retail hair care products.
This will be a store front with 1500 square feet. There will be: a waiting area with magazines and a display with hair products, a reception desk, 3 hair dressing chairs, 3 washing stations towards the back of the store, one computer and one cash machine. This will be a small space but will have everything that one expects when going into a hair cutting space.
Milestones table.
Milestone | Due Date | Who’s Responsible | |
---|---|---|---|
May 16, 2020 | Management | ||
Sept 12, 2020 | Management | ||
Dec 12, 2020 |
Our key metrics are:
Cranium Filament Reductions is an Oregon corporation owned entirely by Susan Sever and is located in Shaker Hts., Oregon.
Ms. Sever will be handling all hiring and training, purchasing, and retail sales. She will also hire a receptionist to manage all of the appointments as well as the people who walk in and be responsible for the point of sale transactions. Cranium will also be hiring six part-time hair stylists who will operate on a hourly/commission basis.
Ms. Sever will be using a partial commission basis to create incentives for superior customer attention. The more her stylists attend to the customer’s needs, the more money they will make off commissions. Cranium will invest time and money into training to ensure that clients receive the best experience possible making it easier to turn them into long-term customers.
Susan Sever received her bachelor’s degree from Miami University in Oxford, OH. While pursuing her degree Susan worked in the restaurant industry. For the four years during school she was a server in an upscale restaurant. While this provided very good income, particularly on the weekends, she longed for management experience.
After graduation she sat down with the owner of the restaurant and presented him with a well reasoned case as to why she should be manager of the establishment. Her main points were her intimate knowledge of the industry and the restaurant, her superior communication skills with the customers and her colleagues, and her ambition to succeed. The owner was surprised by the well-reasoned arguments, enthusiasm, and ambition to take on more work that he promoted her to manager on the spot.
Susan worked as manager for three years, learning all the intricacies of operating a business. These were three rewarding, but long, years. Toward the end, the long hours and work at night took its toll on Susan and she was burned out. When contemplating new opportunities she was brainstorming a way in which she could combine something she loved with something that she would be the owner of. She loved hair and had the experience of operating a business so after a lot of market research she undertook the task of writing a business plan.
2020 | 2021 | 2022 | |
---|---|---|---|
Susan | $43,200 | $44,064 | $44,945 |
Part Time Hair Specialist (3) | $129,600 | $132,192 | $134,835 |
Receptionist | $36,000 | $36,720 | $37,454 |
Part Time Hair Specialist (0.67) | $89,890 | ||
Part time hair specialist (0.67) | $36,000 | $38,000 | |
Totals | $208,800 | $248,976 | $345,124 |
Key assumptions.
Our Key Assumptions:
– Men would like to have great haircuts and do not mind paying for them
– Men and women need hair products
– Our cost for men’s haircuts will be industry standard of 43% and our cost for women’s haircuts, children’s haircuts and products are 27%
– Our friends and family see the merit of our business and would be happy to give us the cash to run the business.
Expenses by month, net profit (or loss) by year, use of funds.
Cranium Filament Reductions will incur the following start-up costs:
Please note that the following items that are assets to be used for more than a year will be considered a long-term assets and will be depreciated using the straight-line method accepted by G.A.A.P.
Susan will be contributing $60,000. The additional $45,000 will come from a business loan.
2020 | 2021 | 2022 | |
---|---|---|---|
Revenue | $394,697 | $532,000 | $732,000 |
Direct Costs | $106,568 | $143,640 | $197,640 |
Gross Margin | $288,129 | $388,360 | $534,360 |
Gross Margin % | 73% | 73% | 73% |
Operating Expenses | |||
Salaries & Wages | $208,800 | $248,976 | $345,124 |
Employee Related Expenses | $41,760 | $49,795 | $69,025 |
Utilities | $1,200 | $1,200 | $1,200 |
Rent | $24,000 | $24,000 | $24,000 |
Insurance | $1,500 | $1,500 | $1,500 |
Total Operating Expenses | $277,260 | $325,471 | $440,849 |
Operating Income | $10,869 | $62,889 | $93,511 |
Interest Incurred | $1,547 | $1,425 | $1,138 |
Depreciation and Amortization | $1,465 | $1,465 | $1,465 |
Gain or Loss from Sale of Assets | |||
Income Taxes | $1,178 | $9,000 | $13,637 |
Total Expenses | $388,019 | $481,000 | $654,729 |
Net Profit | $6,678 | $51,000 | $77,271 |
Net Profit/Sales | 2% | 10% | 11% |
2020 | 2021 | 2022 | |
---|---|---|---|
Cash | $84,344 | $87,260 | $99,844 |
Accounts Receivable | $0 | $0 | $0 |
Inventory | $11,970 | $16,470 | $16,470 |
Other Current Assets | |||
Total Current Assets | $96,314 | $103,731 | $116,314 |
Long-Term Assets | $14,650 | $14,650 | $14,650 |
Accumulated Depreciation | ($1,465) | ($2,930) | ($4,395) |
Total Long-Term Assets | $13,185 | $11,720 | $10,255 |
Total Assets | $109,499 | $115,451 | $126,569 |
Accounts Payable | $2,839 | $3,739 | $3,739 |
Income Taxes Payable | $1,178 | $2,254 | $3,411 |
Sales Taxes Payable | $0 | $0 | $0 |
Short-Term Debt | $7,024 | $7,310 | $7,608 |
Prepaid Revenue | |||
Total Current Liabilities | $11,041 | $13,303 | $14,758 |
Long-Term Debt | $31,780 | $24,470 | $16,862 |
Long-Term Liabilities | $31,780 | $24,470 | $16,862 |
Total Liabilities | $42,820 | $37,773 | $31,620 |
Paid-In Capital | $60,000 | $60,000 | $60,000 |
Retained Earnings | ($33,322) | ($42,322) | |
Earnings | $6,678 | $51,000 | $77,271 |
Total Owner’s Equity | $66,678 | $77,678 | $94,949 |
Total Liabilities & Equity | $109,499 | $115,451 | $126,569 |
2020 | 2021 | 2022 | |
---|---|---|---|
Net Cash Flow from Operations | |||
Net Profit | $6,678 | $51,000 | $77,271 |
Depreciation & Amortization | $1,465 | $1,465 | $1,465 |
Change in Accounts Receivable | $0 | $0 | $0 |
Change in Inventory | ($11,970) | ($4,500) | $0 |
Change in Accounts Payable | $2,839 | $900 | $0 |
Change in Income Tax Payable | $1,178 | $1,076 | $1,157 |
Change in Sales Tax Payable | $0 | $0 | $0 |
Change in Prepaid Revenue | |||
Net Cash Flow from Operations | $190 | $49,940 | $79,893 |
Investing & Financing | |||
Assets Purchased or Sold | ($14,650) | ||
Net Cash from Investing | ($14,650) | ||
Investments Received | $60,000 | ||
Dividends & Distributions | ($40,000) | ($60,000) | |
Change in Short-Term Debt | $7,024 | $286 | $298 |
Change in Long-Term Debt | $31,780 | ($7,310) | ($7,608) |
Net Cash from Financing | $98,803 | ($47,024) | ($67,310) |
Cash at Beginning of Period | $0 | $84,344 | $87,260 |
Net Change in Cash | $84,344 | $2,917 | $12,583 |
Cash at End of Period | $84,344 | $87,260 | $99,844 |
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Salon & Business Tips for Stylists
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.
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.
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:
“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:
“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.
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 .
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:
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.
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:
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.
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:
Your opportunities and threats are defined by external factors, such as:
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.
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.
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:
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.
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:
With a business description in place, you can now create a company logo and tagline to complete your new brand!
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:
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:
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.
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:
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.
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:
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:
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.
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.
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!
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.
Your income statement lists both your revenue sources, expenses, and net income over a given period of time. This should include:
If you haven’t opened your salon yet, you can project future milestones with the same information.
Your balance sheet provides a look at how much equity you have in your business. It consists of two parts:
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.
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.
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.
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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The 7 elements of an effective hair and beauty salon business plan. 1. Executive Summary. The executive summary provides a high-level overview of your business plan. It should outline the objectives of your hair and beauty salon, such as to offer high-quality services, to expand the client base, or to break into a new market.
September 4, 2024. Business Plan. Creating a comprehensive business plan is crucial for launching and running a successful beauty 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.
Below is a salon business plan example to help you create your own beauty salon business plan. Executive Summary Business Overview. Major Lengths Beauty Salon is a newly established hair and beauty bar located in Glendale, Arizona that is founded by Jenna Diaz, a local hair stylist and aesthetician that has worked in the industry for over 15 years.
1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.
Cash at End of Period. $87,971. $107,163. $91,584. Download This Plan. Explore a real-world hair and beauty salon business plan example and download a free template with this information to start writing your own business plan.
An example of a Financial Ask slide for a Beauty Salon business plan 2. Beauty Salon Business Overview. This is the section where you will describe your beauty salon business in detail. Try to answer the following questions concisely: Why do you want to open a beauty salon and what problem will your beauty salon solve?
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 ...
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 ...
Example Salon Business Plan. Below you will find the text of our salon business plan. ... Our salon, called "Lux Beauty Spa," is a full-service beauty and wellness center that aims to provide a luxurious and rejuvenating experience for all of our clients. Our mission is to enhance the beauty and well-being of each individual that walks through ...
A good business plan for a beauty salon must be tailored to the nuances of the beauty industry. To start, it's important to provide a comprehensive overview of the beauty market. This includes up-to-date statistics and identifying emerging trends in the beauty sector, similar to what we've included in our beauty salon business plan template ...
September 4, 2024. Business Plan. 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.
1. Create an Executive Summary. The executive summary is the first section of your business and management plan and provides a brief overview of your salon business. This section should include your mission statement, business objectives, target market, products and beauty services, and financial projections.
A Sample Beauty Salon Business Plan Template. 1. Industry Overview. A beauty salon trade is one industry that promises to fulfill the fantasies and needs of women who love to look and feel their best at all times. Some of the offerings at a beauty salon include; hair perming, nail grooming, manicure, pedicure, fixing of hair weaves, braiding ...
The marketing plan section of your salon business plan should focus on your target market (who your ideal clientele is made up of), competition (other beauty salons in the area that indirectly or directly compete with you), and some examples of your specific salon marketing ideas (Groupon, partnerships, targeted online marketing, etc.).
With ClickUp's Business Plan Template for Beauty Salon, you can: Clearly outline your vision and goals for your salon. Identify and target your ideal market, ensuring you reach the right audience. Detail the services you will offer, showcasing your unique offerings. Develop effective marketing strategies to promote your salon and attract clients.
A beauty salon business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document. The salon business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your salon as ...
Here we've broken down the entire process into 7 easy-to-follow, foolproof steps, along with their templates, to help you create a successful salon business plan. Write a mission and vision statement. Create an executive summary. Analyze and identify your target market. Perform a competitor analysis.
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.
Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.
Hair Salon Business Plan. Over the past 20+ years, we have helped over 5,000 entrepreneurs and salon owners create business plans to start and grow their hair salons. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a hair salon business plan template ...
We've written a template to solve that very issue! Download our free business plan template for salon owners and make sure you get off to the right start with: A PDF document that has fillable forms for you to include the details about your business and consider important questions. Links to Microsoft Excel spreadsheets within the template ...
An example of this would be Supercuts or Best Cuts. In essence this is a franchised version of Cranium Filament Reductions. The advantage of this style is the store will be the same from location to location and some people like this predictability. Independent salons.
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. ... Salon business plan template. Opening a new salon requires a lot of moving parts — from remodeling your space to hiring your A-team ...