beauty studio business plan

Beauty Salon Business Plan Template

Written by Dave Lavinsky

Beauty Salon Business Plan

You’ve come to the right place to create your beauty salon business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their beauty salons.

Below is a salon business plan example to help you create your own beauty salon business plan.

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. Jenna’s knowledge in hair, nail, and facial trends have made her a popular stylist in the community. As her client list continues to grow, Jenna realizes that it’s time for her to open up her own salon.

Major Lengths Beauty Salon will be located in Glendale’s upscale district in a 5,000 square foot retail space. The area is highly trafficked with middle to high income residents who spend on luxury items such as cars, clothes, jewelry.

The beauty salon will offer haircuts and treatments, facials, manicures, and pedicures. Major Lengths will also carry a large selection of hair and beauty products that will be available for purchase. Jenna will have a loyalty program where the top clients will receive discounts on their service as a thank you for remaining loyal and referring other potential clients to the salon.

Product Offering

The following are the services that Major Lengths Beauty Salon will provide:

• Color Treatment
• Healthy Hair Treatment
• Nail Services

Customer Focus

Major Lengths Beauty Salon will target the male and female adult population of Glendale, although the majority of clientele will be women. They will be middle to high income and working in a variety of industries, such as medical, legal, business, education, or other white collar professions. The salon will target stay at home mothers as well who enjoy a day of pampering.

Management Team

Major Lengths Beauty Salon will be owned and operated by Jenna Diaz, a local Arizona hair stylist and aesthetician. Her years of experience and in the industry have allowed her to meet the following talented individuals.

Jenna has recruited a talented nail technician and aesthetician from her previous salon to join her at Major Lengths. Jenna regards them as the best in the industry and knows that their quality of work is up to her high standards. They also have a loyal and large list of clients that will likely follow them to the new salon.

While the three of them will be in charge of their respective department, Jenna will be the head manager to oversee the entire operation of the beauty salon.

Success Factors

Major Lengths Beauty Salon will be able to achieve success by offering the following competitive advantages:

• Latest hair and nail trends
• Modern and comfortable environment
• More selection of each service offered than any other salon in town
• Major Lengths Beauty Salon offers the best pricing in town

Financial Highlights

Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon. The funding will be dedicated towards securing the retail space and purchasing the salon furniture, equipment, decorations, opening inventory, and working capital. The breakout of the funding is below:

• Beauty salon build-out: $30,000
• Opening inventory, furniture, equipment, decorations:  $40,000
• Three months of overhead expenses (payroll, rent, utilities):  $15,000
• Marketing costs: $5,000
• Working capital:  $10,000

  The following graph below outlines the pro forma financial projections for Major Lengths Beauty Salon.

Company Overview

Who is major lengths beauty salon.

Major Lengths Beauty Salon is a newly established hair and beauty bar located in Glendale, Arizona. The company is founded by Jenna Diaz, a local hair stylist and aesthetician that has dedicated her career to making women look and feel their best. Throughout her years in the beauty industry, Jenna gained extensive knowledge in hair, nail, and facial trends as well as how to give exceptional customer service to all of her clients. Jenna realizes that men and women invest a lot of time and money into their appearance and she takes extra care to ensure her clients not only feel special, but walk away with their desired result.

Major Lengths Beauty Salon will be located in Glendale’s upscale district in a 5,000 square foot retail space. The area is highly trafficked with middle to high income residents who spend on luxury items such as cars, clothes, jewelry. Some of Arizona’s most expensive homes are within a 15-mile radius from the location. The salon will be decorated with a contemporary style, have modern furnishings, and include a welcoming waiting and reception area, large hair styling room, and separate areas for facials and nail services.

Major Lengths Beauty Salon History

Major Lengths is owned and operated by Jenna Diaz, a local hair stylist and aesthetician who has made her career working in the beauty industry for the past 15 years in Glendale. She has gained extensive knowledge through her continuing education and industry seminars. Jenna has a long list of loyal clientele who will follow her to her new salon. Aside from her beauty salon knowledge and expertise, Jenna has taken local business courses to learn salon management and leading a small team of stylists, manicurists, and aestheticians.

Since incorporation, Major Lengths Beauty Salon has achieved the following milestones:

• Registered Major Lengths Beauty Salon, LLC to transact business in the state of Arizona.
• Has obtained the necessary salon permits and licenses for the state of California.
• Has a lease contract in place for the 5,000 square foot beauty salon.
• Has developed the complete list of salon services and products.
• Has developed the beauty salon’s logo and branding image.
• Began recruiting a team of stylists, manicurists, and nail technicians.

Major Lengths Beauty Salon Products

The following will be the services Major Lengths Beauty Salon will provide:

Industry Analysis

The Beauty Salon industry is expected to increase in size by 2.5% over the next five years. Demand for industry services mirrors broader economic performance, as economic growth boosts consumer spending on personal care products and services. Specifically, new products and services have favorably contributed to industry revenue growth over the majority of the past five years.

Online platforms such as Instagram and Facebook have provided a convenient and low-cost marketing strategy for many stylists and technicians to garner new clientele. Higher service prices and increased consumer spending on high-margin merchandise and services have also fueled revenue growth, as operators capitalize on rising per capita disposable income. Continued growth in household income over the outlook period is expected to drive consumer spending and boost demand for premium personal care services. Moreover, equipped with larger budgets, consumers will likely continue to favor professional salon products and services, such as hair coloring services, over less expensive alternatives sold at drugstores and supermarkets. Environmental sustainability concerns are expected to become more prevalent over the next five years, leading salons to offer a wider array of eco-friendly products that appeal to trending consumer preferences. Specifically, nontoxic products will likely benefit industry revenue, staff and patrons. This growing niche will likely drive hair salon revenue over the coming years.

Customer Analysis

Demographic profile of target market.

The precise demographics for Glendale, Arizona are:

Customer Segmentation

Major Lengths Beauty Salon will primarily target the following customer profiles:

• Stay at home mothers and fathers
• Working professionals
• College students
• Retired females
• Mothers with adult or teenage daughters

Competitive Analysis

Direct and indirect competitors.

Major Lengths Beauty Salon will face competition from other companies with similar business profiles. A description of each competitor company is below.

Hair Xtreme

Hair Xtreme is located on the west side of Glendale and is owned by a local hair stylist with over 30 years of experience. Hair Xtreme specializes in haircuts and hair coloring services as well as hair color correction. The owner is also certified in Balayage highlighting by the prestigious L’oreal SOHO Academy. Hair Xtreme Beauty Salon was established to create a higher level of service in the Glendale community and has amassed a large clientele. The salon is regarded as the go-to salon for anyone looking for extreme color or haircut transformation. The pricing of services are on the higher end of the spectrum and caters to the community in the middle to higher income range.

Hair Xtreme Beauty Salon’s full list of services include haircuts, balayage, ombre, highlights, color retouch, hair treatments, and special occasion styles. The salon is open Tuesday through Saturday and is by appointment only.

The Complete Package

The Complete Package is not only a hair and nail salon in Glendale, but also provides massage treatment, eyelash extensions, and body treatments. The salon is moderately priced and leans to be more affordable to target the population who doesn’t spend lavishly on beauty services, but also occasionally like to get pampered. Owned and operated by a mother and daughter team of hair stylists, The Complete Package is located in a small retail shopping center in the middle of the city. The salon has been in operation for over 20 years and was founded by Kate Beneducci. She was able to bring The Complete Package into operation due to her experience and background in cosmetics, marketing, and management. Every single stylist is a certified cosmetologist and are all required to attend a mandatory training every year to learn the latest techniques.

The Complete Package’s full list of salon services include hair, makeup, eyelash extensions, and nails. The full list of spa services include waxing, facials, microdermabrasion, massage, and body treatments. The salon regularly posts promotions to increase customer loyalty. The Complete Package is open daily by appointment and is able to take walk-ins Friday through Sunday.

Fringe Beauty Salon and Spa

Fringe Beauty Salon and Spa is located on the west side of Glendale, Arizona and was established in 2013 as a premier beauty salon. Fringe caters to the higher income clientele and their pricing is the most expensive in town. The owner relocated to Glendale to start her own beauty salon after working in the beauty industry in New York and Los Angeles for many years. She did hair and salon services for many celebrities and has been known to be the stylist for awards shows such as the Emmys and Oscars.

As a Glendale native, she relocated to her hometown to provide a higher quality of salon services to the community. The full list of services for Fringe Beauty Salon include haircuts, hair treatments, hair color, balayage, ombre, special occasion, manicures, pedicures, massage, facials, eyelash extensions, waxing, and makeup.

With a luxury atmosphere and relaxing spa environment, Fringe Beauty Salon and Spa is frequently booked for those wanting a full day of pampering.

Competitive Advantage

Major Lengths Beauty Salon will be able to offer the following advantages over their competition:

• Friendly and knowledgeable staff who are all trained and experienced in the latest hair and beauty trends.
• Complete list of beauty salon services intended to provide a full day of pampering and relaxation.
• Casual and comfortable environment with a luxurious feel.
• Major Lengths Beauty Salon offers the best pricing in town for the high quality of services provided. Their pricing structure is the most cost effective compared to the competition.

Marketing Plan

Brand & value proposition.

Major Lengths Beauty Salon will offer the unique value proposition to its clientele:

• Complete list of beauty salon services all provided by trained and knowledgeable hair stylists, manicurists, and aestheticians.
• Pricing is affordable and moderate so customers perceive value when visiting the beauty salon.

Promotions Strategy

The promotions strategy for Major Lengths Beauty Salon is as follows:

Website/SEO Marketing

Major Lengths Beauty Salon has hired an advertising firm to develop their branding image and logo. They will also develop the hair salon’s website. The website will include a full list of services, pricing, and pictures. The advertising company will also manage the company’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Glendale beauty salon” or “beauty salon near me”, Major Lengths Beauty Salon will be listed at the top of the search results.

Word of Mouth/Referrals

Jenna Diaz has a long list of loyal clients that have been with her for decades. They will follow her to the new salon and will receive additional clients from their referrals.

Social Media

Once the branding and logo is finalized, Jenna will use social media to her advantage and create social media business pages on all of the popular social media platforms. She will commit to posting daily to increase the list of followers and use it to regularly engage with customers.

Print Advertising

Major Lengths Beauty Salon will invest in professionally designed print ads to display in local magazines and hand out flyers to local businesses.

The pricing of Major Lengths Beauty Salon will be moderate and on par with competitors so customers feel they receive value when purchasing their salon services.

Operations Plan

The following will be the operations plan for Major Lengths Beauty Salon.

Operation Functions:

• Jenna Diaz will be the Owner and Manager of the beauty salon. She will order salon inventory and products, oversee staff, payroll, and manage customer service.
• Melanie Brooks – Head nail technician that will oversee the nail department.
• Fiona Adams – Head aesthetician that will oversee the facial and massage departments.
• Jenna has hired third party companies to manage the bookkeeping, accounting, tax payments, insurance, and legal requirements.

Milestones:

Major Lengths Beauty Salon will have the following milestones complete in the next six months.

8/1/202X – Finalize retail space for beauty salon

8/15/202X – Begin build-out of beauty salon to include stylist stations, facial and massage rooms, and nail service area

9/1/202X – Order opening inventory

9/15/202X – Begin marketing campaign

9/22/202X – Hire staff of hair stylists, nail technicians, massage therapists, and aestheticians

10/1/202X – Major Lengths Beauty Salon Grand Opening Event

Major Lengths Beauty Salon will be owned and operated by Jenna Diaz, a local Arizona hair stylist and aesthetician. Jenna has made an impressive career helping women achieve their desired look and feel. As an Arizona native, Jenna has attended the local beauty college and attends industry trade shows and training seminars annually. She has amassed a large and loyal clientele and has even done hair treatments, cuts, and facials for local celebrities and sports personalities. Jenna is committed to establishing a beauty salon in her hometown of Glendale and making it a place where the women and men flock to when they want the latest hairstyle, manicure, or facial.

While the three of them will be in charge of their respective department, Jenna will be the head manager to oversee the entire operation of the beauty salon. She will also outsource a third party insurance company, CPA, and attorney to take care of her insurance, legal obligations, and tax filings. Jenna will also employ a part time bookkeeper to handle her day to day accounting and payroll of staff.

Financial Plan

Key revenue & costs.

The revenue drivers for Major Lengths Beauty Salon are the sales from hair services, nail services, massages and facials.

The cost drivers will be the overhead costs required to staff the beauty salon. The expenses will be the payroll cost, rent, utilities, salon inventory, and marketing materials.

Funding Requirements and Use of Funds

Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon. The funding will be dedicated towards securing the retail space and purchasing the salon furniture, equipment, decorations, opening inventory, and working capital. Jenna will need to allocate funds for the first three months of payroll and operating expenses as well as spend approximately on branding and marketing. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Beauty Salon Services Sold Per Month: 300
• Average Revenue per Month: $20,000
• Beauty Salon Lease per Year: $110,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Beauty Salon Business Plan Template FAQs

What is a beauty salon business plan.

A beauty salon business plan is a plan to start and/or grow your beauty salon. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your beauty salon business plan using our Beauty Salon Business Plan Template here .

What are the Main Types of Beauty Salons?

There are a number of different kinds of beauty salons, some examples include: Beauty salon focusing strictly on hair styling, beauty salon offering hair removal services, skin care services, nail services, tanning services, or massage services, and beauty salon offering products.

How Do You Get Funding for Your Beauty Salon Business Plan?

Beauty salons are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for a beauty salon or a hair salon business plan.

Why do You Need a Business Plan Template?

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

Where Can I Get a Beauty Salon Business Plan PDF?

You can download our free beauty salon business plan template PDF here . This is a sample beauty salon business plan template you can use in PDF format.

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

How to Write a Beauty Salon Business Plan: Complete Guide

• December 29, 2023
• Beauty & Wellness

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your beauty salon, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your business plan for a beauty salon . Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for your beauty salon?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write your beauty salon’s executive summary?

This section should not exceed 1 to 2 pages and provide a brief outline of the objectives and purpose of your business, market analysis & marketing strategies, company structure & key people, financial plan, and financial ask.

Here is an overview of the different points you must address in your executive summary:

Business Overview

Introduce your company and briefly describe your business model. For example, you may provide specialized beauty services only (such as skin care only, or manicure & pedicure only, etc.) or a full-service beauty salon (where you provide all types of possible services related to overall beauty including hair care, facial, skin care, manicure & pedicure, nail care & nail art, etc.).

Again, if you are offering a full-service beauty salon with a specific focus on something like skin care while the remaining services are auxiliary services, mention that, too. Also, provide a brief idea of what problem you are trying to solve.

Market Analysis

Provide a deep market analysis that backs your decision to open a beauty salon. The market analysis will include information like who your competitors are, your strengths and weaknesses, your target audience and their beauty needs, etc.

People & Management

Mention your key partners and why you have selected them along with their relevant industry experience. Also, speak about your staff requirements and the management hierarchy.

Financial Plan

How much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? It is ideal to include a chart depicting your key financials such as revenue, gross profits, and net profit

Funding Ask

What loan/investment/grant are you seeking? How much do you need? How long will this last?

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?
• How big will be the facility and how many appointments will you serve daily (approximate value)?
• Will you have standard operating hours or extended business hours?
• Where is the location and why did you select that location?
• Will you provide only services, or will you sell products, too?

Include as many questions as possible to create a convincing overview to keep your potential investors and lenders hooked.

Let’s now look at the different sub-sections that you must include:

a) History of the Project

If you are yet to open your first beauty salon business, you may not have a business history to share. However, you can share your training and past industry experiences. You can even demonstrate your passion and interest for the beauty or wellness industry.

This is also where you should explain why you decided to create this business today. Did you find a gap in the market? Is there a lot of demand for manicure and pedicure treatments but few salons to accommodate customers?

Or are you trying to open a new format of beauty salon, offering a unique experience and treatments to your customers, effectively differentiating yourself from your competitors in your area?

b) Beauty Salon Business Model

This section must include the following information:

• Are you building your beauty salon from the ground up or are you purchasing an existing one?
• Will you allow advanced bookings through channels like a website or a mobile app, or will you allow walk-in customers or both?
• Will you focus only on services, or will you sell beauty products, too? 
• If you want to sell products, too, how do you intend to upsell them?
• Will you offer home visits, and if so, what will be the area of operation for that?
• Do you intend to extend your services into spa, bridal & wedding makeups, full body massage, etc?

Provide a thorough description of your business model so that the potential lenders and investors can make financial assessments and projections.

c) Target Audience

Give here an overview of your target audience. For example, answer the following questions:

• Will it be a unisex beauty salon or a gender-specific beauty salon?
• Is there a specific age group that you are targeting?
• What is the average disposable income of your target audience?
• How frequently do your target audience visit beauty salons?
• How much do they spend per month / per year in beauty treatments on average?

d) Beauty Salon Products & Services

Your beauty salon will primarily be a service-oriented business. However, that doesn’t mean you will not (or you cannot) sell related products. Outline your products and services in this section. Something like this will suffice:

e) Legal structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

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Beauty Salon Financial Model

Download an expert-built 5-year Excel financial model for your business plan

3. Beauty Salon Market Analysis

It is vital that you demonstrate a deep market knowledge to your potential investors and lenders. For example, if you are offering expensive haircare or skincare procedures in a low-income or middle-class area, you may run into losses.

Similarly, if you are not following the latest hairstyles and trends, or if you don’t offer a wide range of facials, skincare services, you may find it difficult to attract customers.

a) Market Trends

If you are offering haircuts and hair makeup, you must be aware of the latest trends. Similarly, there may be new types of facials and acne treatments available that people may be looking for. Fashion is always a time-bound thing, and so is hairstyle.

For example, if you are offering skin care services like facials, you may want to offer services like :

• LED light therapy (to deal with bruising & acne)
• Intense pulsed light treatment (deal with facial pigmentation)
• Hollywood lift (a non-surgical skin-tightening for sagging skin), etc.

b) Competitor Analysis

The objective of the competitive analysis of your business plan should establish that starting a beauty salon in your area makes sense.

For example, there might be few competitors despite a lot of demand. Or, for example, existing competitors might not be adapted to the latest customer trends, effectively losing business to newcomers.

In your competitive analysis, try to include the following information:

• Number of competing beauty salons or full-service beauty salons in your area
• Their target audience
• The list of products and services they are offering
• The number of stations each salon has
• Their marketing strategy
• Their strengths and weaknesses
• Their reputation as a brand

Beauty Salon SWOT Analysis

Along with the competitive analysis, you must also perform a SWOT analysis . SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Here you must provide the following information:

• Strengths : Examples – you may have years of industry experience, or you may be a celebrity hairstylist or aesthetician, or you may be offering unique services that no other competing beauty salon is offering
• Weaknesses : Examples – you may not have enough experience with Millennials, or you may not have enough funds for sufficient inventory, etc.
• Opportunities : Examples – unlike your competitors, you may be offering a full-service beauty salon experience with all services related to hair, skin, nails, and face under a single roof
• Threats : Examples – the emergence of new beauty salons that can possibly take a slice of your potential customer base or existing beauty salons reducing their prices to counter your presence

Both competitive analysis and SWOT analysis can help you to come up with innovative marketing strategies that you can use to gain new customers and even chip off your competitor’s customer base.

d) Customers

This is the segment where you provide a detailed analysis of your target audience. The analysis must include things like:

• Demographic distribution of your target customers (you can find data at census.gov )
• Average monthly family income (this will give you an idea of the spending capacity)
• The frequency of beauty salon visits (this will give you a fair idea of the number of customers you can expect in a month)
• Current hair, nail, & beauty trends in the location you want to operate in and the factors that influence those trends
• What channels do the customers use to share the end results of their beauty salon visits? For example, people may post their new hairstyle or nail art on Instagram & Facebook, but share their salon interaction experience on Twitter
• Things that your target audience like and dislike about the existing beauty salons (this will tell you what you must do and things you can do to improve their experience)
• What is the average amount they spend per visit?
• Do they engage in beauty-related activities at home? (This will tell you whether you can sell products such as hair oils, skin lightening creams, etc.)
• Do they like to use coupons and gift cards? (If yes, you may open a separate revenue stream by offering such products)

You can add more questions if you need to complete your customer or target audience study. The best way to get the answers is to conduct direct surveys and interact with your potential customer base. However, you will also find some data from competitive analysis.

A complete understanding of your target audience can help you develop sales and marketing strategies that can beat your competitors and give you an edge.

4. Beauty Salon Marketing Strategy

This is the section of your beauty salon business plan where you should outline your customer acquisition strategy: how do you plan to attract new customers?

Try to answer here the following questions:

What are your Unique Selling Points (USPs)?

• What marketing channels will you use?
• How do you intend to track the success of your marketing strategy?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?
• Will you offer gift cards to open an upfront revenue stream?
• Will you sell products? If yes, how do you intend to upsell them for revenue maximization?

Let’s expand a bit on a few questions below:

What marketing channels do Beauty Salons use?

A few marketing channels that beauty salons typically use are:

• Google My Business listing
• PPC ads and social media ads
• Social media promotions and user engagement on platforms like YouTube, Facebook, Instagram, Pinterest, Twitter, TikTok, etc.
• Email marketing
• Print ads, flyers, hoardings & billboards, etc.

You need to use all marketing channels. You can focus on a few (2 to 3 is more than enough). However, make sure that you include social media marketing as one of the options because it can help you to connect and continuously interact with your customers. In addition to that, social media can help you to go viral.

Also, do not forget to provide a fair and nearly accurate estimate of your marketing budget. Failure to display a well-planned and adequate cash flow for advertising and marketing can lead to investors losing confidence.

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

• We are a full-service beauty salon offering services like haircare, bridal makeups, manicure & pedicure, skin treatments & facials, & body massage under a single roof because potential customers dislike the idea of hopping from one door to another to get all their needs fulfilled
• We are a full-service beauty salon with a focus on manicure & pedicure treatments
• We use only 100% organic and natural haircare products to prevent side effects usually caused by chemically heavy cosmetic beauty products
• We will use our proprietary range of hair care and beauty products that will not be available with any other competing beauty salon

5. Management & People

You must address 2 things here:

• The management team and their experience/track record
• The organizational structure: what are the different teams and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and technical knowledge of salon managers that you intend to hire to oversee your beauty salon business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeed in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the beauty salon services you are proposing.

Organizational Structure

Even if you haven’t already hired anyone, it is important that you provide a chart of the organizational structure of your company. Typical roles for a beauty salon may include: salon managers, hair director, hairstylists, cosmetologists, pedicurist, aesthetician, massage therapist, electrologist, makeup artist, salon/shampoo assistants, receptionists, etc.

6. Beauty Salon Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your beauty salon is an attractive investment.

There should be 3 sections to your financial plan section:

• Your historical financials (only if you already operate the business and have financial accounts to show)
• The startup costs of your project (if you plan to open a new salon, renovate your salon, etc.)
• The 5-year financial projections

Historical Financials (if any)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

Beauty Salon Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a beauty salon, startup costs are all the expenses you incur before you start to receive customers and make money.

Startup costs vary based on a number of factors such as the location and size of your salon, the quality of the equipment, design and furniture, whether you rent or buy the space, etc.

On average, beauty salons cost anywhere from $63,500 to $179,000 to start depending on whether you plan to lease the commercial space or buy it. Indeed, if the latter, you would have to take a loan and make a substantial deposit upfront instead.

Beauty Salon 5-Year Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model as part of your business plan for your beauty salon.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 15%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of customers over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

When it comes to the costs, consider both startup and operating costs. For more information on how much it costs to start and run a beauty salon in the US, read our complete guide here .

7. Funding Ask

This is the last section of the business plan of your beauty salon. Now that we have explained what your beauty salon is about, what’s your strategy, where you go and how you get there, this section must answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment to buy the real estate and do the renovations and design of the salon? Or will it cover mostly the cost of the salaries the first few months?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our beauty salon financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

Related Posts

How Profitable is a Beauty Salon? Break-even & Profits

10 Salon KPIs you Should Track and How to Calculate Them

How To Build a Financial Model For a Salon?

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• May 27, 2024

The Ultimate Guide to Creating a Winning Beauty Salon Business Plan

In today’s competitive beauty industry , starting or expanding a salon without a solid plan is like navigating a maze blindfolded. You might make some progress, but you’ll likely face numerous obstacles, detours, and frustrations along the way.

Without a clear roadmap, you’ll miss crucial opportunities or make costly mistakes that can jeopardize your salon’s success.

Fortunately, there’s a solution: crafting a comprehensive beauty salon business plan. This strategic document not only clarifies your vision and goals but also serves as a powerful tool for executing your strategies effectively and staying on track toward sustainable growth.

In this article, we’ll guide you through the process of creating a winning beauty salon business plan that can set you apart from the competition and position your salon for long-term success.

Why You Need a Beauty Salon Business Plan

A beauty salon business plan is a strategic roadmap that outlines your vision, goals, and actionable steps for starting and growing a successful beauty salon business. This comprehensive document is a strategic tool that can guide your beauty salon toward long-term success. It serves as a blueprint for executing your strategies effectively, making informed decisions, and navigating the challenges and opportunities that arise along your entrepreneurial journey. Having a solid plan is crucial for several reasons:

– Defines Your Vision, Goals, and Unique Selling Proposition:

The process of creating a business plan forces you to crystallize your vision for your salon, articulate your long-term goals, and clearly identify what sets your salon apart from competitors. This clarity helps you define your ideal target market, including client demographics, psychographics, and buying behaviors.

Having a well-defined vision, goals, and unique selling proposition is essential for crafting an effective marketing strategy, delivering a tailored experience that resonates with your target audience, and staying focused on your objectives.

– Analyzes the Competition and Identifies Opportunities:

Conducting a thorough competitor analysis is a key component of your business plan. This process involves researching and analyzing direct and indirect competitors, their strengths, weaknesses, and market positioning. By understanding the competitive landscape, you can uncover opportunities to differentiate your salon and gain a competitive edge.

– Outlines Operations, Financials, and Facilitates Funding:

Your business plan should include detailed operational plans, such as your service delivery processes, staffing strategies, and legal/ regulatory compliance measures. Additionally, it should feature comprehensive financial projections, including start-up costs, ongoing expenses, revenue forecasts, and break-even analyses.

These operational and financial details are not only essential for making informed decisions and ensuring the viability of your salon but also demonstrate your professionalism, market understanding, and potential viability to potential investors or lenders. A well-crafted business plan can increase your chances of securing the necessary capital or funding to launch or grow your beauty salon.

– Guides Growth and Expansion:

As your salon grows and evolves, your beauty salon business plan serves as a roadmap for navigating challenges, seizing opportunities, and implementing strategies for sustainable growth and expansion.

– Measures Progress and Enables Course Correction:

By establishing clear benchmarks and metrics within your business plan, you can effectively track your salon’s progress and make informed decisions about pivoting or adjusting your strategies as needed.

A well-crafted beauty salon or medical spa business plan helps you stay focused, make data-driven decisions, and increase your chances of achieving your goals.

Key Components of a Beauty Salon Business Plan

Creating a comprehensive business plan is no small feat, but breaking it down into key components can make the process more manageable. A well-rounded and effective beauty salon business plan should encompass the following essential elements:

1. Executive Summary

The executive summary is the opening section of your business plan, designed to capture the reader’s attention and provide an enticing overview of your entire concept. Think of it as your elevator pitch – a concise yet compelling snapshot that summarizes the key highlights of your plan.

While this section will be the first component you present, it’s often written last, after you’ve fleshed out the other sections. This allows you to distill the most important and persuasive elements into a punchy, engaging summary.

Key Elements of an Effective Executive Summary:

• Business Overview: Introduce your salon’s name, location, and a high-level description of the services you’ll offer.
• Mission and Vision: Clearly state your salon’s mission – the driving purpose behind your business – and your vision for its future growth and impact.
• Competitive Advantages: What key competitive advantages will help you stand out in the market? This could include your team’s expertise, eco-friendly focus, membership model, specific amenities, or other differentiators.
• Growth and Revenue Potential: Include a teaser of your projected growth trajectory, revenue forecasts, and the overall market opportunity you aim to capture.
• Leadership Team: If you have a strong management team or industry veterans on board, mention their experience and expertise as a competitive advantage.

Remember, the executive summary should be concise, typically no more than one page. Its purpose is to pique the reader’s interest and provide a compelling overview that motivates them to delve deeper into your comprehensive beauty salon business plan.

2. Company Description

This section provides an in-depth overview of your beauty salon, allowing readers to fully understand your business concept, goals, structure, and what makes you unique in the market.

Key Elements of a Company Description:

• Business Structure & Ownership: State whether your salon will operate as a sole proprietorship, partnership, limited liability company (LLC), corporation, or other structure. Outline the ownership details accordingly.
• Company History (if applicable): If you are an existing salon, provide a brief history covering when and why the business was started, key milestones, and any previous ownership.
• Salon Concept & Branding: Clearly describe the overall concept, theme, and branding for your salon. What type of experience and ambiance will clients enjoy? Use descriptive details to paint a vivid picture.
• Services & Product Offerings: Outline the full range of services and product lines you plan to offer. Consider categorizing them into hair care, skin care, nail care, makeup, etc. Highlight any specialties or niche offerings.
• Target Market & Positioning: Reiterate your intended target market segment(s) and how your salon will be positioned to attract those ideal clients. This could relate to factors like price point, service quality, location, etc.
• Legal Structure & Licensing: Note any specific licenses, permits, certifications, or other legal requirements to legally operate your salon.
• Mission, Vision & Values: Share your company’s mission describing its purpose, your vision for its future growth, and core values that shape the business culture.

By the end of this section, readers should have a clear picture of your salon’s identity, market positioning, and exactly what makes it unique and poised for success.

3. Market Analysis

A thorough market analysis is essential for gaining valuable insights into your industry, target customers, and competitors. This research-intensive section explores the landscape you’ll be operating in and identifies both opportunities and potential threats.

Target Market Analysis:

• Define your ideal client demographics (age, gender, income level, location, etc.)
• Describe the psychographic profile (values, interests, lifestyles, behavior patterns)
• Evaluate the market size and growth potential for your target segment
• Identify key drivers and motivations that influence buying decisions
• Uncover any underserved niches or opportunities within your target market

Competitive Analysis:

• Identify your direct and indirect competitors in the area
• Conduct a SWOT analysis of major competitors (strengths, weaknesses, opportunities, threats)
• Analyze competitors’ market positioning, pricing strategies, and unique selling points
• Estimate market share and outline how you plan to capture a portion

Here’s an example of a SWOT analysis table for a beauty salon business:

Industry Analysis:

• Assess the current size and growth projections for the beauty/ personal care industry
• Identify key industry trends and drivers (sustainability, clean beauty, technology, etc.)
• Examine seasonality factors that impact demand for beauty services
• Understand the regulatory landscape and legal requirements to operate compliantly
• Analyze economic factors that could influence the industry positively or negatively
• Identify potential threats from disruptive new technologies or service models

To gather data for your analysis, use a combination of primary research (customer surveys, focus groups, etc.) and secondary research (trade publications, market reports, government data, etc.). Consider including charts, graphs, or other visuals to effectively present your findings.

By thoroughly analyzing your market, competition, and overall industry, you demonstrate a solid understanding of the space you’ll operate in and the viability of your salon concept.

4. Marketing and Sales Strategy

Having a comprehensive marketing and sales strategy is crucial for attracting and retaining clients for your beauty salon. This section outlines your plans for building brand awareness, generating leads, converting prospects into customers, and fostering long-term loyalty. It should include:

Branding and Positioning:

• Brand identity (name, logo, tagline, brand personality)
• Unique value proposition and key differentiators
• Positioning strategy to stand out in the market
• Messaging and visual identity guidelines

Marketing Channels and Tactics:

• Digital marketing plan (website, SEO, social media, influencer marketing, email, etc.)
• Traditional advertising (print, radio, direct mail, etc.)
• Local marketing initiatives (events, partnerships, community outreach)
• Referral and loyalty programs to incentivize word-of-mouth
• Launch marketing activities to build initial awareness

Pricing Strategy:

• Pricing model (e.g., à la carte, packages, memberships)
• Pricing analysis of competitors and perceived value
• How pricing aligns with your target market and positioning
• Opportunities for upselling, cross-selling, or value-added services

Sales and Promotions:

• Lead generation and conversion funnel process
• Special promotions, discounts, or free trial offers
• Client retention strategies (superior service, rewards, education)
• Up-selling and cross-selling opportunities at the point of sale
• Retail merchandising and product promotion tactics

In this section, be sure to include specific metrics you’ll use to measure success, such as website traffic goals, lead generation targets, conversion rates, average ticket size, and client retention rates. With a detailed, multi-pronged approach, you demonstrate how you’ll acquire and keep a loyal client base, helping you craft a winning beauty salon business plan.

5. Operations Plan

An effective operation plan details the systems, processes, and logistics essential for running your beauty salon’s daily activities while ensuring a consistently exceptional client experience. It usually covers:

Physical Location and Facilities:

• Salon address and description of the area demographics
• Square footage and layout design (reception, styling stations, treatment rooms, etc.)
• Any unique amenities or design elements to enhance the client experience
• Compliance with zoning, accessibility, and other regulations

Equipment, Supplies, and Inventory:

• List of essential equipment (chairs, stations, dryers, hot towel cabinets, etc.)
• Beauty products and retail inventory (haircare, skincare, makeup, etc.)
• Suppliers and vendors for managing inventory levels cost-effectively
• Equipment maintenance and replacement plan

Service Delivery Process:

• Appointment booking systems and procedures (You can use a beauty salon software like Yocale )
• Client intake, consultation, and check-in/ out process
• Protocols for different service workflows (hair, nails, facial, etc.)
• Strategies for efficient staff utilization and client throughput
• Systems for ensuring consistent service quality and excellent experiences

Staffing and Training:

• Roles and responsibilities for staff positions
• Recruitment and hiring criteria for new talent
• Comprehensive training programs on technical skills and customer service
• Continuing education opportunities to sharpen skills
• Employee compensation, benefits, and incentives structure

Legal and Regulatory Compliance:

• Required licenses and permits (cosmetology, business operations, etc.)
• Health, safety, and sanitation protocols per industry regulations
• Insurance requirements (liability, etc.)
• Customer privacy and data policies
• Continuing education for staff to maintain licensing

By detailing your operational strategies, you demonstrate a well-thought-out plan for delivering your services seamlessly while prioritizing the client experience.

6. Management and Organization

The management team and organizational structure are critical for executing your salon’s operational strategies and cultivating a positive, productive workplace culture. This section of your beauty salon business plan outlines:

Ownership and Management Team:

• Owner(s) background, relevant experience, and roles
• Bios of other partners, directors, or executive management (if applicable)
• Internal salon management / leadership structure and responsibilities
• Board of advisors or external professionals providing guidance

Staffing Plan:

• Projected staffing needs based on salon size and services
• Job descriptions and responsibilities for each role
• Recruitment and hiring strategy to attract top talent
• Comprehensive training programs for technical and customer service skills
• Employee compensation, benefits, and incentive structure
• Strategies for promoting from within and succession planning

Corporate Culture and Values:

• Core values and principles that shape the company culture
• Vision for cultivating a positive, productive work environment
• Policies and programs that reinforce desired culture (open communication, work-life balance, continuing education, etc.)
• Performance management and employee review processes
• Approaches for resolving conflicts and promoting accountability

Investors and lenders will closely evaluate this section to gauge whether you have a strong, unified leadership team with relevant experience and the ability to build a skilled, motivated team aligned with your company’s values and vision.

By providing thorough details on your management team, staffing strategy, and approach to corporate culture, you demonstrate your salon’s potential for long-term success driven by its people.

Here are some important metrics you can use for measuring your salon performance:

7. Financial Projections

According to the U.S. Small Business Administration, 80% of small businesses survive their first year, but only about 50% make it to the five-year mark. A solid financial plan can increase your chances of long-term success. This plan should include a detailed analysis of your current financial situation, clear long-term monetary goals, and specific strategies to achieve these goals. Key components of a financial plan typically involve:

Start-up Costs and Capital Requirements:

• Estimated leasehold improvements, equipment, furniture, and technology
• Legal and professional fees for licenses, permits, business formation
• Initial marketing and advertising expenses for launch
• Starting inventory and supplies
• Initial hire and training costs
• Working capital buffer for operating expenses before profits

Operating Expense Projections:

• Rent or mortgage payments
• Payroll and employment taxes
• Utilities, insurance, security, and facility maintenance
• Supplies and disposables for service delivery
• Marketing, advertising, and promotional costs
• Professional services (legal, accounting, etc.)
• Loan repayments and interest
• Other overhead expenses

Revenue and Income Projections:

• Service pricing and anticipated demand forecasts
• Client visit estimates and average spend projections
• Retail product sales forecasts
• Projected income statements for 3-5 years
• Cash flow projections showing funds from operations
• Break-even analysis identifying when profits are expected

Funding Requirements and Use of Funds:

• Total funding needed for start-up and initial growth phases
• Existing capital or financing commitments already secured
• Additional equity or debt financing still required
• Detailed breakdown of how funds will be utilized

This section should include concise narrative explanations of your forecasts and assumptions, as well as charts, graphs, and financial statements that clearly depict the numbers. Be sure your projections are well-researched and as accurate as possible, as unrealistic figures could undermine your credibility.

Robust financial projections in your beauty salon business plan instill confidence in potential investors by demonstrating your thorough understanding of costs and your salon’s path to profitability.

8. Risk Management

A comprehensive beauty salon business plan should include a section on risk management. This demonstrates your foresight and preparedness to potential investors or lenders.

Key areas to address include:

• Financial risks : Strategies to manage cash flow fluctuations, unexpected expenses, or economic downturns.
• Operational risks : Plans for equipment failures, supply chain disruptions, or staff shortages.
• Legal and compliance risks : Ensuring all necessary licenses and permits are maintained, and staying compliant with health and safety regulations.
• Market risks : Preparing for changes in consumer preferences, new competitors, or shifts in the beauty industry.
• Reputational risks : Strategies for managing online reviews, handling customer complaints, and maintaining a positive brand image.

By identifying potential risks and outlining mitigation strategies, you show that you’re prepared to navigate challenges and protect your salon’s long-term success.

9. Appendices

The Appendices contain additional information and materials that further validate and reinforce the key details outlined throughout your business plan.

Potential Appendices to Include:

• Professional Resumes/ CVs/ Bios : For all key members of the leadership and management team showcasing relevant experience.
• Licenses, Permits, and Certifications : Copies of any required operational licenses, professional certifications for staff, building permits, etc.
• Market Research Data : Any proprietary market research, consumer surveys, focus group findings, or third-party industry reports referenced.
• Product/ Service Details : Brochures, menus, sample marketing materials, or other marketing collateral detailing your offerings.
• Site Plan and Photos : Architectural renderings, layout designs, and photographs of the proposed salon location.
• Franchise Documentation : For franchised salons, include Franchise Disclosure Documents and agreements.
• Letters of Intent or Partnerships : Formal letters or documentation of any strategic partnerships.
• Leases and Contracts : Copy of property leases, equipment leases, vendor agreements, etc.

The appendices provide an opportunity to expand on information concisely summarized in the main plan, giving readers a deeper level of detail if desired. Be sure to clearly label each appended document for easy reference.

Having a comprehensive set of appendices further validates the legitimacy of your beauty salon business plan and the depth of research and preparation behind it.

How to Write Your Beauty Salon Business Plan

Here’s a suggested step-by-step approach to help you craft an effective and detailed beauty salon business plan:

• Research and Gather Information: Conduct thorough market research, analyze your competition, and collect data on your target audience, industry trends, and financial projections.
• Outline Your Plan: Create a detailed outline that covers all the key components mentioned above. This will help you organize your thoughts and ensure a logical flow.
• Write and Refine: Flesh out each section of your plan, using clear and concise language. Don’t hesitate to seek feedback from mentors, industry experts, or professionals who can provide valuable insights.
• Finalize and Implement: Once you’ve refined your plan, finalize it and use it as a living document to guide your decision-making and track your progress.

Remember, your business plan is not set in stone – it should evolve as your salon grows and adapts to changing market conditions or new opportunities.

Creating a comprehensive beauty salon business plan requires time, effort, and dedication, but it’s an investment that can pay dividends in the long run. By clearly defining your goals, strategies, and financial projections, you’ll be better equipped to navigate the challenges of running a successful salon.

With a solid business plan and the right tools in place, you’ll be well on your way to building a thriving beauty salon that stands out in a competitive market.

To write a salon business plan, start with an executive summary of your mission, services, and goals. Include a company description, market analysis, and details about your management team. Describe your services and pricing, and outline your marketing and sales strategy. If seeking funding, specify your financial needs and projections for the next 3-5 years. Conclude with an appendix for additional documents like resumes and permits. Tailor each section to reflect your salon’s unique vision and objectives.

To succeed in the beauty salon business, focus on providing excellent customer service, offering high-quality services, keeping up with industry trends, and implementing effective marketing strategies. Additionally, manage finances wisely and continuously train your staff to maintain a competitive edge.

A beauty salon can be a good investment if it’s well-managed, located in a high-demand area, and offers quality services. Success depends on factors such as effective marketing, excellent customer service, and keeping up with industry trends.

Starting a beauty business can be challenging due to factors like securing funding, finding a suitable location, and attracting clients. Success requires thorough planning, industry knowledge, effective marketing, and excellent customer service. However, with dedication and the right strategies, these challenges can be overcome.

To create a salon budget, start by estimating initial costs such as rent, equipment, licenses, and renovations. Calculate ongoing operating expenses, including utilities, salaries, inventory, marketing, and insurance. Project your revenue based on service prices and expected client volume. Plan for contingencies by setting aside funds for unexpected expenses. Regularly review and adjust your budget to stay on track and ensure financial stability.

• How to Write a Sales and Marketing Plan, BPlans, https://www.bplans.com/business-planning/how-to-write/marketing-sales/
• How To Run A Successful Salon (The Salon Owner Guide), Trafft, https://trafft.com/how-to-run-a-successful-salon/
• 6 Basic Financial Ratios and What They Reveal, Investopedia, https://www.investopedia.com/financial-edge/0910/6-basic-financial-ratios-and-what-they-tell-you.aspx
• 7 Ultimate Ways to Grow Your Salon Business in 2023, The Salon, business, https://thesalonbusiness.com/how-to-grow-your-salon-business/
• The SWOT of a beauty salon (with examples), Dojobusiness, https://dojobusiness.com/blogs/news/beauty-salon-swot
• How to Write a Market Analysis: a Comprehensive Guide, Sharp Sheets, https://sharpsheets.io/blog/how-to-write-market-analysis/

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How to Create a Business Plan for Your Salon: Your Beauty Blueprint to Success

Dive into a step-by-step guide on creating a business plan tailored for salon success. From mission clarity to financial foresight, unlock strategies to turn your beauty passion into a flourishing enterprise.

Introduction

In the world of beauty, creativity, passion, and skill often take center stage. Yet, behind every successful salon, there lies a robust and strategic plan, paving the way for its triumph. Creating a business plan is much like designing a new hairstyle or look. It involves envisioning what you want to achieve, understanding the tools and techniques required, and meticulously crafting until the final result mirrors the initial inspiration. For aspiring salon owners or those looking to elevate their existing business, a comprehensive plan isn't just a page of numbers and forecasts. It's the beauty blueprint to success, detailing every facet of the venture, from its foundational mission to the intricate details of daily operations. Dive in as we explore how to build this blueprint, ensuring your salon doesn't just survive, but thrives in the dynamic beauty industry.

Understanding Your Salon’s Mission and Vision

Every successful business venture begins with a clear sense of purpose, and for salons, this sense of purpose is captured in its mission and vision statements. Think of these statements as the guiding lights for your salon's journey, helping you stay on course during both calm and stormy seas.

1. Defining Your Salon's Purpose and Long-term Goals:

Mission Statement : This succinctly captures why your salon exists and its core purpose. It's about the present – what you do, who you serve, and what value you bring. Ask yourself: What promise are you making to your clients every time they walk through your doors?

Vision Statement : This paints a picture of your desired future. It's aspirational and gives everyone in the salon a clear idea of what success looks like in the long run. Imagine where you want your salon to be in 5, 10, or even 20 years. What impact will you have made? What legacy will you leave behind?

2. Crafting These Statements:

Creating mission and vision statements might seem daunting, but it's an introspective process. Consider your passions, what motivated you to start or run a salon, and the kind of difference you hope to make in the beauty industry.

For a deep dive into crafting compelling mission statements and to draw inspiration from successful salons, visit Noona's comprehensive guide on salon mission statements . They offer invaluable insights and examples that can guide you in molding statements that resonate with your brand's essence.

In conclusion, understanding and articulating your salon's mission and vision is paramount. They don't just serve as internal guiding posts but also communicate to clients, staff, and stakeholders what your salon truly stands for. As you proceed with your business blueprint, refer back to these statements to ensure each decision aligns with your salon's core purpose and aspirational goals.

Market Analysis

Before setting the cornerstone of your salon, understanding the market you're stepping into is pivotal. A comprehensive market analysis allows you to understand the beauty industry's landscape, your target customers, and your potential competitors. This ensures that when you open your salon doors, you're not just another business in the community but a highly anticipated addition.

1. Understanding the Beauty Industry Landscape:

Trends and Forecasts : The beauty industry is dynamic, with new trends emerging rapidly. From eco-friendly products to tech-driven beauty solutions, keeping an eye on these changes ensures your salon stays relevant and ahead of the curve.

Regulations and Licensing : Ensure you're aware of any industry-specific regulations, certification needs, and licensing that could impact your operations.

2. Identifying Your Target Market:

Demographics : Understand the age, gender, income, and other demographic factors of your ideal customer. Is your salon catering to young professionals, teenagers, or perhaps a mature audience?

Psychographics and Buying Behaviors : Dive deeper to know your audience's lifestyle, preferences, and buying habits. Do they prefer organic products? Are they looking for a luxurious experience or quick service solutions?

3. Analyzing Your Competition:

Strengths and Weaknesses : List out local salons and understand what they're doing right and where they might be falling short. This can provide insights into potential market gaps you can fill.

Market Gaps : Once you understand your competition's offerings, identify what's missing. Is there a service, product, or experience that customers desire but isn't available? That's your opportunity to shine.

4. Location, Location, Location :

While understanding your market is key, finding the perfect spot to set up shop is equally vital. The location of your salon plays a massive role in its accessibility, visibility, and overall success. Consider factors such as foot traffic, nearby businesses, ease of parking, and the demographic of the local population. For a comprehensive guide on selecting the ideal location for your salon, delve into Noona's expert advice on choosing a salon location .

To wrap up, a thorough market analysis doesn't just give you a view of the playing field but also offers the insights needed to strategize your moves. With a deep understanding of the industry, your customers, and your competitors, you're poised to make decisions that position your salon for long-term success.

Services and Pricing

In the beauty world, the range of services you offer and their associated pricing can make or break your salon's reputation and profitability. Offering the right mix of services, matched with a pricing strategy that reflects your brand's value and the market's willingness to pay, is a delicate balance to strike.

1. Choosing the Right Services to Offer:

Diverse Portfolio : Depending on your target market, your salon might benefit from offering a wide range of services from haircuts, coloring, and treatments to nails, skincare, and even massage.

Specialization : On the other hand, some salons thrive by specializing in a few niche services, becoming the go-to spot for those particular treatments.

Continuous Innovation : The beauty industry is ever-evolving. Regularly review and update your services to keep up with trends and customer demands.

2. Pricing Strategy:

Competitive Pricing : Analyze what other salons in your area charge for similar services. While you don't want to drastically undercut or overshoot these figures, understanding the market rate is crucial.

Value-based Pricing : Instead of just setting prices based on competition, consider the value you're offering. If you provide a luxurious experience or use high-end products, your prices should reflect that.

Discount Strategies : Occasional promotions or loyalty discounts can attract and retain customers. However, ensure they don't undermine your brand's perceived value.

3. Upselling and Cross-selling:

Maximizing Customer Value : Once a customer is in your chair, there's potential to introduce them to other services or products. Train your staff on tactful upselling techniques to enhance the customer's experience without seeming pushy.

Package Deals : Offering bundled services at a slightly reduced rate can encourage clients to indulge in more treatments, increasing your per-visit revenue.

4. Crafting Your Salon Price List :

Your price list isn't just a utility; it's a reflection of your brand. Its design, clarity, and presentation can enhance the client's perception of your salon. For innovative ideas on creating an appealing and effective price list, explore Noona's detailed guide on hair salon price list ideas .

In conclusion, the services you offer and their corresponding prices play a significant role in defining your salon's brand image and profitability. By aligning them with market demands and your salon's unique value proposition, you pave the way for both satisfied customers and a thriving business.

Marketing and Promotion Strategies

At the heart of every flourishing salon is not just talented stylists and impeccable services, but also an effective marketing strategy. In a world increasingly swayed by digital impressions and word-of-mouth, how you market and promote your salon can be the determining factor in its success. Let's dive into crafting a strategy that makes your salon the talk of the town.

1. Branding:

Establishing Your Salon’s Identity : Your brand is more than just your logo or color scheme. It's the experience you promise, the values you uphold, and the story you tell. Everything from your salon's interior design to staff uniforms should resonate with your brand's essence.

Unique Selling Proposition (USP) : Determine what sets your salon apart. Is it a unique treatment you offer? An exceptional training program for your stylists? Ensure your USP is highlighted in all marketing materials.

2. Digital Marketing:

Website : In today's digital age, a salon without a website is like a shop without a signboard. Ensure your website is visually appealing, mobile-friendly, and contains essential information like services, prices, contact details, and customer reviews.

Social Media : Platforms like Instagram, Facebook, and Pinterest are ideal for showcasing your work. Regularly post before-and-after photos, salon events, promotions, and client testimonials.

Email Marketing : Build a list of client emails to send out newsletters, promotions, or updates. This not only drives repeat business but also helps in fostering a community.

3. Offline Marketing:

Local Advertising : Consider placing ads in local newspapers, magazines, or radio stations. This type of advertising can effectively reach your local target demographic.

Partnerships : Collaborate with local businesses, such as boutiques, gyms, or cafes, for mutual promotions. This could be in the form of cross-promotions, discounts, or sponsored events.

Event Sponsorships : Participate in or sponsor local events, beauty pageants, or workshops. This boosts brand visibility and positions your salon as an active member of the community.

4. Customer Engagement and Loyalty Programs:

Referral Programs : Encourage your existing clients to refer friends and family by offering them incentives or discounts.

Loyalty Cards : Introduce a loyalty card system where frequent visits or purchases earn points, which can be redeemed for services or products.

Feedback Channels : Create channels for clients to offer feedback, whether it's through comment cards, online reviews, or suggestion boxes. This not only provides valuable insights but also makes clients feel valued and heard.

5. Seasonal Promotions and Campaigns:

Themed Packages : Offer packages or discounts during festive seasons, holidays, or even less busy months to boost sales.

Collaborative Campaigns : Partner with beauty product brands to run promotional campaigns, offering bundled products with select services.

In wrapping up, marketing is not just about visibility but also about creating connections. By building a coherent brand, engaging with your audience both online and offline, and offering value through various promotions, your salon is poised not just to attract clients but to turn them into loyal advocates.

Operational Plan

An operational plan serves as the engine room of your salon, ensuring that all parts work in harmony to produce the desired outcome: unparalleled service, satisfied customers, and a successful business. This plan encompasses everything from the location of your salon to the daily management of services and resources.

1. Choosing a Salon Location:

Strategic Location : Your salon's location can greatly influence foot traffic, brand visibility, and accessibility. A location in a bustling area or near complementary businesses (like clothing boutiques or coffee shops) might be ideal.

Demographics : It's essential to ensure that the local population matches your target clientele in terms of age, income, and beauty needs.

Facility Needs : Think about size, layout, and infrastructure. Does it allow for future expansion? Does it resonate with your brand's aesthetic? For a more in-depth guide on pinpointing the perfect location, delve into Noona's expert insights on choosing a salon location .

2. Design and Ambiance:

Interior Layout : Create a space that's both functional for staff and inviting for clients. This includes considering the placement of styling stations, waiting areas, and retail sections.

Brand Consistency : The design should echo your brand's identity, from colors to decor elements, ensuring clients get a cohesive experience.

3. Staffing:

Hiring : Recruit not just based on skills but also on alignment with your salon's culture and ethos.

Training : Regular training ensures that your team is updated with the latest industry techniques and customer service standards.

Retention Strategies : Implement measures to retain top talent, such as competitive compensation, a positive work environment, and growth opportunities.

4. Equipment and Supplies:

Sourcing Quality Products : Whether it's haircare products or skincare treatments, ensure you're using reputable and high-quality brands. This not only affects service quality but also your salon's reputation.

Inventory Management : Implement a system to track product usage, reorder stocks in time, and monitor expiration dates.

5. Daily Operations and Management:

Booking and Scheduling : Use digital tools or salon management software to handle appointments, reduce overbookings, and ensure timely services.

Hygiene and Sanitation : Especially in the post-pandemic world, maintaining impeccable hygiene standards is non-negotiable. Regularly clean and sanitize equipment, stations, and communal areas.

Customer Experience Enhancement : From a warm welcome to post-service follow-ups, ensure every client's journey in your salon is memorable.

For actionable strategies and insights on managing your salon's daily operations, refer to Noona's comprehensive guide on running a successful hair salon .

In conclusion, while vision and strategy are essential, it's the operational plan that brings them to life. Ensuring every aspect of your salon's operations runs smoothly is crucial to creating a lasting and favorable impression in the minds of clients and ensuring your venture thrives.

Financial Projections and Strategy

Your salon’s financial strategy is the backbone of your business plan. While beauty and aesthetics are at the forefront of the industry, the underlying financial projections and strategies are what keep the business thriving. Addressing the cost implications, forecasting profits, and being prepared for various financial scenarios can mean the difference between a thriving salon and one that struggles.

1. Start-Up Costs:

Location and Lease : Depending on your chosen location, the cost of leasing or buying a space can vary significantly. Factor in any modifications or renovations required to tailor the space to your salon's needs.

Equipment and Supplies : From hairdressing chairs to specialized equipment, the initial set-up costs can be substantial. For a detailed breakdown of essential equipment costs, explore Noona's guide on salon equipment essentials .

Licenses and Permits : Ensure you've budgeted for any required business licenses, permits, and certifications.

Initial Inventory : Stocking up on products for treatments and retail. For an exhaustive list and deep dive into the expenses of setting up a salon, refer to Noona's comprehensive breakdown on the cost to open a hair salon .

2. Operational Costs:

Salaries and Wages : This includes compensation for all staff, from stylists to receptionists.

Utilities : Regular expenses like electricity, water, internet, and other utilities.

Maintenance and Repairs : Regular maintenance of equipment and the facility.

Marketing and Advertising : Budget for ongoing promotional activities and campaigns.

3. Revenue Projections:

Service Revenue : Projected income from all the services offered. Consider factors like average price, number of bookings per day, seasonality, etc.

Product Sales : If you retail beauty products, estimate potential earnings from these sales.

Additional Income Streams : This could be from workshops, training sessions, or renting out space.

4. Break-Even Analysis:

Identify the point where your salon's total revenues will cover total costs. Knowing this will provide clarity on when your salon will start turning a profit.

5. Financial Safety Nets:

Contingency Fund : Always have a fund for unforeseen circumstances or emergencies.

Insurance : Invest in comprehensive insurance to protect against potential liabilities or damages.

6. Growth Investments:

Reinvestment Strategy : Determine a portion of profits to reinvest in the business, be it for expansion, training, or introducing new services.

Financial Aids and Loans : Understand the options available should you need financial support to scale or improve operations.

In conclusion, the beauty of your salon won’t just depend on the services you offer or the ambiance you create but also on the sound financial strategies you put in place. With thorough financial planning, you can ensure that your salon not only offers exceptional beauty services but also stands on solid financial ground.

Implementation Timeline

Laying out a strategic business plan is just the first step. Bringing your vision to life requires actionable steps, all tied to a realistic and coherent timeline. Here, we'll detail a typical implementation timeline for setting up a salon, ensuring you hit key milestones efficiently and systematically.

1. Research and Planning (Weeks 1-4):

Market Analysis : Understand your target clientele, study competitors, and identify market gaps.

Financial Forecasting : Detail your budget, source initial capital, and lay out your financial projections.

2. Location and Infrastructure (Weeks 5-12):

Location Scouting : Identify and finalize the right salon location. For insights, refer to the previously linked article on choosing a salon location.

Lease and Licenses : Secure the necessary permissions, licenses, and finalize your lease.

Infrastructure Planning : Layout design, interior decoration, and ambiance creation.

3. Procurement (Weeks 9-16):

Equipment and Supplies : Purchase necessary equipment and set up the salon space. Dive into Noona's guide on salon equipment essentials for detailed insights.

Initial Inventory : Stock up on products and supplies you'll need for both treatments and retail.

4. Hiring and Training (Weeks 13-20):

Job Listings and Interviews : Post job vacancies, conduct interviews, and finalize your core team. For best hiring practices and insights, consult Noona's salon hiring guide .

Training and Orientation : Ensure your team is aligned with the salon's mission and vision. Conduct training sessions to standardize services and customer interactions.

5. Marketing and Launch Preparation (Weeks 17-24):

Branding and Website Development : Create your salon's visual identity, and establish an online presence.

Promotions and Advertisements : Announce your salon's upcoming launch. Consider offering early-bird specials or opening discounts to attract initial clientele.

Final Touches : Ensure the salon space is set up, all equipment is tested, and inventory is organized.

6. Grand Opening (Week 25):

Launch Event : Consider hosting an event or open house. Invite potential clients, local businesses, and media.

Service Trials : Offer complimentary or discounted services on the launch day to give potential clients a taste of your expertise.

7. Review and Iterate (Weeks 26-52):

Feedback Collection : Actively collect feedback from your initial customers.

Performance Analysis : Review financial and operational performance. Identify areas of improvement and growth opportunities.

Continuous Marketing Efforts : Keep the momentum going with regular marketing campaigns, partnerships, and promotions.

To sum up, a clear, structured timeline not only ensures that you stay on track but also aids in visualizing the trajectory of your salon's setup and growth. By breaking down the process into actionable steps, you increase the likelihood of launching successfully and building a thriving beauty haven.

Potential Challenges and Solutions

Every business venture, including a salon, is bound to face challenges. Anticipating these obstacles and preparing solutions in advance can provide a smoother path to success. Below are some common challenges salon owners may encounter and suggested solutions for each.

1. Challenge: Intense Competition

Solution : Carve out a niche for your salon. Offer specialized services, unique experiences, or target a specific demographic that is underserved in your area. This will help differentiate your salon from competitors.

2. Challenge: Fluctuating Client Volume

Solution : Implement a loyalty program, offer off-peak discounts, or create package deals to incentivize repeat business and even out demand. Seasonal promotions can also help attract customers during quieter times.

3. Challenge: Retaining Skilled Staff

Solution : Create a positive work environment, offer competitive compensation, provide opportunities for professional growth, and maintain open communication channels. Recognition and rewards for exceptional performance can also boost morale and loyalty.

4. Challenge: Staying Updated with Industry Trends

Solution : Regularly attend industry seminars, workshops, and trade shows. Also, invest in continuous training for your staff to ensure they stay updated with the latest techniques and trends.

5. Challenge: Managing Operational Costs

Solution : Adopt efficient inventory management systems, reduce waste, and regularly review and renegotiate contracts with suppliers. Utilizing energy-efficient equipment and fixtures can also help cut down on utility costs.

6. Challenge: Negative Reviews or Feedback

Solution : Address any negative feedback promptly and professionally. Use it as an opportunity to learn, improve, and showcase your commitment to customer satisfaction. Encourage satisfied customers to leave positive reviews to balance the narrative.

7. Challenge: Regulatory and Licensing Changes

Solution : Stay informed about local and state regulations pertaining to the beauty industry. Join industry associations and subscribe to relevant newsletters to stay updated on any regulatory changes.

8. Challenge: Technology Integration and Upgrades

Solution : Allocate a budget for periodic technology updates, whether it's salon management software, booking systems, or digital marketing tools. Seek feedback from staff and customers to identify areas needing technological enhancement.

9. Challenge: Economic Downturns

Solution : Build a financial safety net or contingency fund. Diversify your service offerings to cater to different price points, ensuring you can attract a broader clientele during economic slowdowns.

10. Challenge: Health and Safety Concerns (e.g., Pandemic-related shutdowns)

Solution : Implement strict hygiene and sanitation protocols. Offer services that can be adapted to health guidelines, like at-home beauty kits or virtual beauty consultations. Stay informed on health advisories and adjust business operations accordingly.

In conclusion, while challenges are inevitable in the journey of building and running a salon, they can also serve as catalysts for growth and innovation. By anticipating potential hurdles and having strategies in place, you can navigate through them effectively, ensuring your salon's resilience and long-term success.

FAQ (Frequently Asked Questions)

1. Why is a business plan essential for my salon? A business plan serves as a roadmap, guiding you through the various stages of establishing and running your salon. It not only helps secure funding but also aids in identifying potential challenges, streamlining operations, and setting clear goals.

2. How often should I update my salon business plan? A business plan is a living document. While the foundational elements might remain consistent, it's advisable to review and update it annually. Regular updates can also be made whenever there's a significant change in the market or your business.

3. Can I start my salon without a formal business plan? While it's technically possible to start without a formal plan, it's not recommended. A business plan provides clarity, sets objectives, and helps in making informed decisions. Skipping this step can lead to unforeseen challenges and missed opportunities.

4. How can I differentiate my salon from competitors? Focus on creating a unique selling proposition (USP). Whether it's a specialized service, exceptional customer experience, or niche market focus, your USP will help you stand out. Regular market analysis and customer feedback can guide you in refining your offerings.

5. What if my financial projections aren't met? It's not uncommon for businesses to face discrepancies between projections and actuals. Regularly monitor your financials, adapt your strategies, and consider seeking advice from financial experts. It's essential to remain flexible and proactive in your approach.

6. How do I handle negative feedback or reviews? Always address negative feedback professionally and constructively. It provides an opportunity for growth and showcases your commitment to customer satisfaction. Encourage satisfied clients to share their positive experiences to balance out any negative narratives.

7. How can I ensure the health and safety of my clients, especially during uncertain times like pandemics? Stay updated with health guidelines from local and global health organizations. Implement strict sanitation protocols, train your staff, and communicate these measures clearly to your clients to ensure trust and safety.

By delving into this FAQ section, we hope to have addressed some of your burning queries. Embarking on the salon business journey is undoubtedly challenging but equally rewarding. With the right information, guidance, and determination, success is not just a possibility but a surety.

Setting up and running a successful salon is a dream that many aspire to but only a few achieve with flying colors. The journey involves not just passion for beauty and aesthetics but also a deep understanding of the business landscape, keen foresight, and meticulous planning. From conceptualizing a unique value proposition to managing the intricate financials, each step in the salon business journey is crucial.

This comprehensive guide aimed to shed light on key aspects of creating a business plan for your salon, providing insights and strategies to navigate the multifaceted world of the beauty business. By focusing on your salon's mission and vision, understanding the market, pricing your services right, crafting effective marketing strategies, managing operations smoothly, making sound financial decisions, and preparing for challenges, you're not just creating a business — you're building a legacy.

In the ever-evolving beauty industry, staying agile, being receptive to feedback, and continuously learning and adapting are the hallmarks of lasting success. With your dedication, passion, and the right strategies, your salon can not only enhance beauty but also become a beautiful success story in its own right.

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How to Write a Successful Salon and Spa Business Plan

• April 12, 2024

Julis Navarro

Table of contents.

You’ve dreamt of opening your own salon and spa , and now you’re ready to make it a reality. Congrats! You’re in for a rewarding journey ahead. Now is the time to prepare your new venture for long-term success with a comprehensive business plan.

Why should you write a business plan? A spa and salon business plan is your playbook—it’s your vision for your company and the steps you’ll take to bring it to life. Developing a business plan will help you outline your goals, strategize, and make informed decisions. It involves thorough research of your target market and competitors, as well as creating effective marketing strategies and assessing finances.

This blog will guide you through nine essential steps to develop a successful salon and spa business plan—whether you’re a hairstylist, an esthetician, a massage therapist, or a cosmetologist. Follow along with our free downloadable template and create your very own road map toward a flourishing business.

1. Start With the Executive Summary

The executive summary is the first section of your business plan. Think of it as a high-level overview of your salon and spa business. It should include a brief description of your business, its unique selling proposition, goals, mission statement, and keys to success.

The executive summary sets the tone for the rest of your spa and beauty salon business plan, so write it concisely and compellingly to grab the attention of potential investors and lenders.

2. Include Your Company Description and History

Why should a potential lender or investor care? This second section dives deeper into what makes your salon and spa unique—such as its services, target clientele, and competitive advantage.

If you’re already in business, you should also highlight your growth and success by including a brief business history. This will enable potential partners or investors to feel confident that you’re a worthwhile venture.

A well-crafted company description and history will help your salon or spa business plan stand out in the industry and give interested parties a clear idea of what your company offers.

3. Perform a Market Analysis

Performing market research provides the context of where your business will fit in. This requires thoroughly examining the current state of the salon and spa industry, identifying your target market, assessing the demand for your services in your area, and doing a competitive analysis to develop unique selling points.

Once you understand your desired clients’ needs, you can identify reasons why they might choose you over your competitors. As you write your spa’s or salon’s business plan, position your business with the insights from your market research, so that your company can rise above a crowded market.

4. Detail Your Services and Pricing

This section enables potential lenders and investors to understand the scope of your provided services and your pricing strategy. It also helps you establish your business in the marketplace and communicate clearly with your customers. Highlight your value by outlining your services and prices—this, in turn, will illustrate how you will make money for your salon and spa business.

5. Explain Your Marketing and Sales Strategy

How will you attract customers and keep them happy? In a salon or spa business plan, this section outlines your methods for getting customers interested and generating sales. It should provide details on the target market’s psychographics and demographics, as well as your marketing strategies for engaging with them.

This can include initiatives, such as collaborations, social media marketing, partnerships, advertising, and promotional activities —all the ways you plan to raise awareness and acquire customers.

The sales plan should also detail pricing strategies, like bundles or discounts, and establish referral or loyalty programs to encourage repeat business. Ultimately, a salon or spa business must leverage thoughtful marketing and sales strategies for continued success.

6. Outline Your Operational Plan

Mapping out your daily operations, including opening hours, staffing, and service processes, allows potential lenders to envision your spa and salon business functioning at its best. It also ensures you have thought through the small details that can make or break your business.

In this section, you can also include information about your suppliers and a description of your facility to round out your operational plan. You’ll also need to think through operational needs, like:

• What client scheduling software to use
• Which types of salon insurance you’ll need
• The payment processing tools that will best fit your needs—and more.

7. Highlight Your Management Team and Organization

Your management team plays a vital role in the day-to-day operations of your business, and investors want to know that you have a skilled and experienced team in place. In this section of your spa and beauty salon business plan, you must provide details about each management team member, including their responsibilities, credentials, areas of expertise, and previous work in the salon and spa industry.

You should also touch on your current and future staffing needs in this section. By showcasing your management team’s skill level and by forecasting employee organization, you will show investors that you have the necessary leadership to manage and grow your salon and spa business effectively.

8. Present Your Financial Projections

Now it’s time to talk numbers. Your salon and spa business plan must include financial projections, which examine the financial health and anticipated profitability of the company. It outlines startup costs, a timeline for estimated income, expenses like salon and spa equipment and insurance, and a cash flow forecast.

Lenders and investors can determine your company’s viability based on these forecasts. It also helps you establish realistic financial objectives and create plans for success. Financial predictions are essential in proving the company’s financial viability and potential for growth in a spa and beauty salon business plan.

9. Finish With an Appendix

The final piece in a business plan for salons is the appendix, which provides additional details and supporting documentation. It includes market research data, financial forecasts, résumés of key employees, and other pertinent details that give your plan more substance and credibility.

By including an appendix, potential investors or lenders can learn more about the intricacies of your salon and spa business, increasing the professionalism of the plan and the likelihood of receiving backing for the endeavor.

Why Writing a Salon and Spa Business Plan Is Important

Writing a salon and spa business plan is crucial for several reasons. It helps you define your business goals and objectives, outlining the direction of your salon or spa. It creates a clear road map for success and guides your decision-making process.

A well-written spa or beauty salon business plan can also secure funding from investors or lenders, showcasing your professionalism, salon marketing plan and market knowledge, and potential for profitability.

Moreover, it is a valuable tool for monitoring progress and making necessary adjustments to ensure long-term success. Even if you’re not seeking funding, thoroughly thinking through every aspect of your business ensures nothing critical is overlooked as you grow.

Now that you know how to write a successful spa and salon business plan and why it’s important, it’s time to get started on yours. Use our free downloadable template below and lay the groundwork for the business you envision!

FAQs About Writing a Salon and Spa Business Plan

What is a salon and spa business plan.

A salon and spa business plan outlines goals, strategies, and financial projections. This plan serves as a road map for entrepreneurs and stakeholders, providing direction for growth and success. It includes sections on market analysis, target customers, competition, marketing strategies, services, operations, and finances. It addresses factors like location, staff, pricing, and revenue.

Why Should I Write a Salon and Spa Business Plan?

A salon and spa business plan is crucial for success in the beauty and wellness industry. A well-developed business plan is essential for funding, attracting investors, and guiding operations. Even if you’re not seeking funding, it ensures no critical aspects of your business are overlooked.

What Is the Business of a Spa?

A spa is a business that offers relaxation and rejuvenation services to consumers – massage therapy , facials, body treatments, and other health services like yoga or meditation sessions. The goal of a spa is to create a calm and pleasant atmosphere where clients can relax and take care of themselves, away from the stress of daily life.

What Is the Business of a Salon?

Salons provide beauty services to clients – manicures, pedicures, facials, waxing, haircuts, styling, coloring, and treatments. Salons often offer additional services like body treatments, massages, and cosmetics applications. The main goal of a salon is to enhance customers’ appearance and overall well-being, helping them to look and feel their best. Some salons also sell beauty supplies that customers can purchase and bring home.

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Beauty Salon Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Beauty Care Industry » Beauty Salon

Are you about starting a beauty salon ? If YES, here’s a complete sample beauty salon business plan template & feasibility report you can use for FREE to raise money .

If you are conversant with the aphorism that says; ‘ looking good is good business’ , then you will agree that those who are at the helms of affair in the beauty trade knows how great and relevant it is to continue to be relevant in the industry.

As a matter of fact, the art of looking good is one activity nearly all women love to partake in. This is because of the point that they do not like to be seen as shabby looking. It is for this reason that some women do not mind to go to any length to look and feel good.

One of the ways through which these women try to look their best is by making sure they get all their beauty fantasies and desires adequately met. They see to it that they have the hair done, nails done; they get the best makeup and spa treatments amongst others. This is why the beauty salon business has come to stay for a very long time to come.

If you think that starting a beauty salon is what you want to do, then care must be taken to do the adequate and needful research that will help you operate and launch out at the optimum. Below is a sample beauty Salon business plan template.

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, amongst many others.

It is important to note that most beauty salons also offer spa services. This is so that they can give their clients an all-round beauty experience. There are around 400,000 beauty salons in the united states of America. Those who are employed to offer the services of the nails are known as the hair stylists.

Beauty salons are also known to offer some skin beauty services. Some of these services include; waxing, skin polishing, microderm abrasion and what have you.

Research has shown that those who work in the United States of America make good money from it because of the teeming population of people who seek the services of these beauty salons. The population of people who work at the salons include; immigrants, Africans, Spanish people, and a whole lot more.

The training required for the beauty salon work is small and inexpensive; the work does not require high level of qualification so far as you are able to communicate with your clients without difficulty. In the same vein, the amount of capital is not much compared with if you had to open some other businesses that needed a huge capital base.

2. Executive Summary

Simply Cute Beauty salon is a classy beauty salon that will be opened in Manhattan, New York, America. We have chosen New York because we think that it would be an amazing opportunity to have the crème de la crème in the society and in showbiz visit our nail hub.

The business will be run as a very standard beauty salon coy, and we shall see it that all clients from old to young are given the very best of services. Our services will cover areas such as; hair perming, relaxing of hair, manicure, pedicure, nail painting, nail fixing, nail trainings, fixing of weaves, braiding, and the sales of other beauty related stuff.

We are aware that businesses these days require diverse and sophisticated approaches. This is why we will be sure to be abreast with the creativity and trend which the trade is exposed to.

We shall also be involved in the training of budding entrepreneurs who may want to venture into this industry. Even though starting a nail salon might look really pretty easy to start,   we intend to bring in strict professionalism that will make up stand out.

Simply- Cute Beauty salon is primarily focused to help its clients look their very best at all times. We would try as much as lies within our power to surpass the expectations of people. Our prices would also be very affordable; we do not want to scare our new clients away with our pricing.

As a matter of fact, we plan to lower our pricing so that we can gain good grounds within our startup period. We plan to hire the best hands in the city of New York to help us drive our biasness.

This is one of the reasons why     who do not mind to pay our employees well because we know that we are striving for a goal and that is the goal of gaining loads of clients. In addition, much more than just satisfying our clients, we also want to see new entrepreneurs empowered by us, as they emerge to start their own nail salon business.

We shall also be involved in the sponsoring of various programs that are hosted in the locality which we are located. Shows like fashion shows, hair exhibitions, entertainment shows, amongst many others. This is o that we are able to give a good account of ourselves as we launch out.

3. Our Products and Services

We shall be known to offer strict professional beauty related services at all times. This is so that we do not deviate from our core. Here below are some of our business offerings that we are to be known for in Manhattan New York;

• Fixing of artificial nails
• Braiding of hair
• Fixing of weaves
• Skin waxing
• Skin polishing
• Perming of hair
• Training of budding entrepreneurs
• Sale of nail accessories
• Sale of women accessories
• Sale of makeup stuff

4. Our Mission and Vision Statement

• Our vision is to provide our teeming clients with the best of beauty services, such that is hard to experience in Manhattan, New York.
• We strive to achieve this with our overly trained stylists and attendants and the ambience which our beauty salon has to offer.
• Our mission is to provide professional and creative service to our clients- thereby meeting their beauty needs at all times.

Our Business Structure

At Simply- Cute beauty salon, we know that having a solid structure will make us drive our beauty business really smoothly.

Therefore, we will build a firm business structure that can support the growth of our business. We will ensure that we hire competent hands to help us build the business of our dream. Below is the business structure that we will build simply- cute beauty Salon

• Chief Executive Officer

Salon Manager

• Accountant/Cashier
• Front desk officer
• Hair stylist 1
• Hair stylist 2
• Hair stylist 3
• Sales attendant

5. Job Roles and Responsibilities

Chief Executive Office

• Responsible for providing direction for the beauty salon.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall salon strategy.
• Responsible for building a strong customer care system.
• Responsible for fixing prices and signing business deals
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the business.
• Reports to the board about the salon.
• Coordinates training programs for budding entrepreneurs.
• Handle all paper documents for the coy.
• Identifies training and development needs for the employees through job analysis, appraisals and consultation
• Designs job descriptions
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Facilitates and coordinate strategic sessions.
• Works directly with the chief executive officer
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Front Desk Officer

• Receives Visitors / clients on behalf of the organization
• Receives parcels / documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distribute mails in the organization
• Handles any other duties as assigned my the line manager

Hair Stylist 1, 2 and 3

• Sees to it that the   client gets exactly what they wanted.
• Creates styles that are creative
• Gives clients a lifetime experience for patronizing

6. SWOT Analysis

Simply- cute beauty salon has engaged the services of a core professional in the area of business consulting and beauty to assist the firm in building a solid beauty one stop shop that can favorably compete in the highly competitive beauty industry.

Part of what our team of business consultant did was to work with the management of our beauty salon in conducting a SWOT analysis for our salon.

Simply- cute beauty salon is very dear and promising to us. We believe that what they have come up with is in our own best interest and that is why we aren’t in any way going to joke with their findings. Here is a summary from the result of the SWOT analysis that was conducted on behalf of simply- cute beauty salon.

Our core strength lies in the power of our team; our workforce. We have a team – made up of the Vietnamese women and other immigrants that can go all the way to give our clients value for their money. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new beauty salon in the area we have decided to operate from, it might take some time for our organization to break into the market; that is perhaps our major weakness.

• Opportunities:

The opportunities in the beauty salon industry can be said to be very promising despite the high level of competition that abounds. One of the opportunities is the fact that there are loads of people that engage the services of manicurists, and we will strive to be the leading ones.

Some of the threats that we are likely going to face as a beauty salon operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and new trends in trade that often affect patronage.

There is hardly anything we could do regarding this threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

Quite a number of distinct trends have emerged in recent times in the beauty industry which is why beauty salons are positioning their organizations to attract all and sundry. As a matter of fact, this is one of the things that makes most nail studios to spruce up their creativity level so that they

In this type of business, one of the things that could possibly make one stand out from the competitive crowd is having a top notch customer service. If possible there is the need to place a follow up calls to all clients from time to time. Those who are known to engage in such exercises have come to know that they attract more and more clients as the days go by.

In addition, no matter how bad the economy may be, people still fund or rather still deem it very important to have their nails done. This simply means that there would be more money coming into the coffers of those who operate the business, even though the economy bites hard at the people.

8. Our Target Market

The target market which we are all out to serve are primary the female folks. This is because of the fact that they are the ones who will leave no stone unturned in seeing that they look their best. Whilst some may do this to continue to be attractive to their partners, yet others cannot just do without looking good.

As such, our target market cuts across all sectors.  Also our beauty salon will have a variety of practice areas to help budding nail manicurists grow. Our target market cuts across women of different class and people from all walks of life, local and international organizations as well.

We are coming into the industry with a business concept that will enable us work with the highly placed people and celebrities in the country and at the same with the lowly placed people and smaller businesses.  In other words, our target market is the whole of the United States of America and subsequently other parts of the world. Below is a list of the people and organizations that we have specifically designed our services for;

• Females in the Banks, Insurance Companies and other related Financial Institutions
• Females in Businesses and Entrepreneurs
• College students

Our competitive advantage

A close study of the beauty industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact it is becoming really tough to break even in this market because of the number of people who are in it.

However, we are also aware that this hasn’t deterred people from braking even and smiling to the bank. This is one of the reasons why we have added other services that are beauty related, this is so that we do not miss out in any way.

Beauty salon may be a new entrant into the business beauty industry in the United States of America, but the management staffs and board members are considered gurus. They are people who are core professionals and licensed and highly qualified beauticians in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning ;that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

It is the wish of every business to generate income at all times and our beauty salon is one of such businesses. Simply – Cute beauty Salon is established with the aim of maximizing profits in the beauty industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign retainer – ship with most of our clients.

Hence, there are several ways through which we plan to make this money at all times. Simply- Cute beauty salon will generate income by offering the following services;

• Fixing of hair weaves
• Skin treatment
• Spa treatments
• Fixing of acrylic nails
• Fixing of French nails
• Sale of other female accessories
• Training people of the art of nail care and fixing
• Home services in all the aspects listed above

10. Sales Forecast

There will always be a need to do some business and sales forecasting as a business. This is because of the drive it gives one to achieve it. In the same vein, simply- Cute beauty salon has several sale projections that we will be all out to achieve.

For as long as there are female folks in New York, we know that we will be able to reach our sales goals in no distant time.

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City, New York to other states in the U.S. and even the global market.

We have been able to critically examine the beauty market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in New York.

Below is the sales projection for simply- Cute beauty Salon. It is based on the location of our nail salon and the wide range of other addendum services we will be offering;

• First Year-: $100,000
• Second Year -: $250,000
• Third Year-: $700,000

N.B : This projection is done based on what is obtainable in the industry.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition amongst nail salons in United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing. Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent job deliveries speak for us in the marketplace; we want to build a standard beauty business that will leverage on word of mouth advertisement from satisfied clients (both individuals and organizations).

Our goal is to grow our beauty salon to become one of the top 20 salons in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.

Simply – Cute beauty salon is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to organizations and key stake holders in New York and other parts of the U.S.
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients.
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our in house consultants and other brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the consulting industry by storm which is why we have made provisions for effective publicity and advertisement of our beauty based business. Below are the platforms we intend to leverage on to promote and advertise simply- Cute beauty salon business;

• Place adverts our consulting firm on both print and electronic media platforms
• Sponsor relevant TV shows and radio programs
• Maximize our firm’s website to promote our business
• Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ and other platforms (real estate online forums) to promote our business.
• Offer Pro Bono services as part of our community social responsibility via fashion shows, beauty exhibitions and what have you.
• Brand all our official cars.

12. Our Pricing Strategy

One of the ways through which we know that we will be able to get more clients within a short period of time is when our pricing is on the moderate level. Being on the moderate level means that we are able to maximize profit in a ways that doesn’t put holes in the pocket of pour clients.

As such, we are looking at lowering our price a bit below that of our competitors, so that we can gain good grounds in the market and become a household name and a force to reckon with. This is very important because when our pricing becomes too high, the clients may have the options of switching over to our competitors and we do not want that to happen in any way.

So, we are poised to keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to newbies and clients who have some special occasions like Birthdays.

This means that for clients whose special days we remember, we will invite them over to the salon on that special day and then offer our services for free to them. We will also make sure that we do not lower our quality in any way because we are offering these services for free.

We are also aware that there are some clients that would need regular home services, as well as need some consultancy and advisory services and assistance on how they can launch their own beauty salon business, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.

• Payment Options

We know too well that we will be dealing with different types of clients, and that is one of the reason why we shall have different payment options to cater to all and sundry. At Simply- Cute Salon, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

Starting a beauty salon trade can be cost effective; this is so because on the average, you are not expected to procure any expensive machines and equipment.

Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications. Basically, this is the area we are looking towards spending our start – up capital on;

• The Total Fee for incorporating the Business in New York – $750.
• The budget for Liability insurance, permits and license – $2,500
• The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, fittings, safety gadgets and electronics, hair equipment et al) – $2,000
• The Cost of Launching your official Website – $600
• Budget for paying at least two employees for 3 months and utility bills – $30,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous – $1,000

Going by the report from the research and feasibility studies, we will need about $150,000 to set up a small scale but standard consulting firm in the United States of America.

Generating Funding / Startup Capital for Simply- Cute Beauty Salon

Simply- Cute beauty salon is going to start as a private business that will be solely owned by Mrs. Andrews. She will be the sole financial of the firm, but may likely welcome partners later which is why he has decided to restrict the sourcing of her start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals / customers patronizing their products and services. We are aware of this which is why we have decided to offer a wide range of nail beauty services to both big and small clients.

We know that if we continue to deliver excellent hair services and general beauty services, there will be steady flow of income for the organization. Our key sustainability and expansion strategy is to ensure that we only hire competent employees- like the very experienced Vietnamese ladies.

We will create a conducive working environment that will add to the wealth of experience that our team has. In the nearest future, we will explore the options of either merging with other beauty related businesses in the industry, in order for us to increase our market share.

We know that if we implement our business strategies, we will grow our nail salon business beyond New York City, New York to other states in the U.S in record time.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry: In Progress

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How do I write a business plan for a hair salon?

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How do I write a financial plan for a salon?

When writing a financial plan for a salon, it's probably easiest to think about what your expenses might be. List out these expenses. Expenses you might consider are things like licenses and permits, equipment and maintenance, products, salaries and wages, utilities, etc.

Then think about how you'll make money. Create a list of these revenue streams. This could be things like hair care products, skin care products, makeup, rental income from station leasing, etc.

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• February 27th, 2024
• Business Tips

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 beauty salon.

Have you been envisioning opening your own beauty 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 beauty salon.

As you might be aware, a meticulously formulated business plan is crucial for any aspiring entrepreneur. It serves as a roadmap, guiding you through establishing your mission, objectives, and tactical approach for your beauty salon.

To craft a compelling plan with ease and precision, you are welcome to utilize our beauty salon business plan template. Additionally, our specialists are available to review and refine your plan at no extra cost.

How to draft a great business plan for your beauty salon venture?

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 .

Your business plan should articulate your vision clearly. Define your target clientele (e.g., neighborhood residents, professionals, students), and establish your salon's unique selling propositions (USPs) such as specialized services, luxury experience, eco-friendly products, etc.

The market analysis section is vital. It should offer an in-depth look at local competitors, industry trends, and customer demands and expectations.

For a beauty salon, it's crucial to detail the services you'll provide. List your offerings - hair care, nail services, skincare, makeup, and other beauty treatments - and describe how they cater to the preferences and needs of your target market.

The operational plan is key. It should outline the location of your salon, the design of the service areas, supplier relationships for beauty products, and the customer service process.

In a beauty salon business plan, it's essential to highlight the expertise of your staff, the quality of your products, and adherence to health and safety regulations.

Then, delve into your marketing and sales strategies. How do you plan to attract new clients and keep them coming back? Discuss promotional tactics, customer loyalty programs, and potential additional services (like bridal packages or wellness events).

Today, a digital presence is non-negotiable. Include plans for a website, online booking systems, and social media engagement.

The financial section is another cornerstone. It should cover the initial investment, projected revenue, ongoing expenses, and the point at which the business will become profitable.

In the beauty industry, service margins can vary widely, so precise financial planning and a solid understanding of your cost structure are imperative. For assistance, consider using our financial forecast for a beauty salon .

Compared to other business plans, a beauty salon's plan must pay closer attention to customer experience, staff expertise, and the constantly evolving beauty trends.

A well-crafted business plan not only helps you clarify your strategy and vision but also plays a crucial role in attracting investors or securing loans.

Lenders and investors are looking for thorough market research, realistic financial projections, and a clear plan for day-to-day operations.

By presenting a comprehensive and convincing business plan, you show your dedication and readiness to make your beauty salon a success.

To achieve these goals while saving time, you can fill out our beauty salon business plan template .

A free example of business plan for a beauty salon

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 beauty salon .

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

Market Opportunity

Market data and figures.

The beauty salon industry is a robust and dynamic sector with significant growth potential.

Recent estimates value the global beauty salon market at over 190 billion dollars, with projections indicating continued expansion in the years ahead, driven by an increasing emphasis on personal appearance and wellness.

In the United States alone, there are over 80,000 beauty salons, generating a combined annual revenue of approximately 20 billion dollars. This underscores the critical role beauty salons play in the personal care industry and their substantial contribution to the economy.

The beauty industry is witnessing a surge in trends that cater to a more informed and health-conscious consumer base.

Organic and natural beauty products are becoming increasingly popular as customers seek out healthier, chemical-free options for their skin and hair care routines. The demand for cruelty-free and vegan cosmetics is also on the rise, reflecting a broader societal shift towards ethical consumerism.

Technological advancements are revolutionizing beauty treatments, with innovations such as AI-driven skin analysis and personalized product recommendations enhancing the customer experience.

Additionally, the rise of social media influencers has transformed marketing strategies within the beauty sector, with salons now partnering with these influencers to reach a wider audience.

Convenience services, such as mobile beauty salons and on-demand beauty apps, are gaining traction, offering services at the comfort of the customer's home or preferred location.

Transparency in product ingredients and sourcing is becoming increasingly important to consumers, prompting salons to be more open about the products they use and sell.

Success Factors

Several key elements contribute to the success of a beauty salon.

High-quality service is paramount. Salons that provide exceptional treatments and results can build a strong, loyal clientele.

Innovation in service offerings, such as introducing the latest beauty treatments or technology, can help a salon stand out in a crowded market.

The location of the salon is crucial, as a prime spot can significantly increase foot traffic and visibility.

Customer service excellence is essential for fostering a welcoming environment and ensuring client satisfaction.

Lastly, effective cost management, a commitment to sustainability, and the ability to adapt to the latest beauty trends are vital for the long-term prosperity of a beauty salon.

The Project

Project presentation.

Our beauty salon project is designed to cater to the diverse beauty needs of a modern clientele. Strategically located in a bustling urban area or within a shopping district, this salon will offer a comprehensive range of beauty services, including hair styling, coloring, makeup, skincare treatments, and nail services. We will use high-quality, eco-friendly, and skin-friendly products to ensure the best results and customer satisfaction.

The salon will focus on providing a luxurious and relaxing experience, with an emphasis on personalized services and attention to detail.

Our beauty salon aims to become a go-to destination for those seeking professional beauty services, offering a sanctuary where clients can rejuvenate and enhance their natural beauty.

Value Proposition

The value proposition of our beauty salon project is centered around delivering exceptional beauty services with a personal touch. We understand the importance of feeling confident and looking one's best.

Our commitment to using high-quality products and providing a wide range of services under one roof offers convenience and a bespoke beauty experience. We are dedicated to creating a welcoming atmosphere where every client feels valued and pampered.

We strive to empower our clients by providing expert beauty advice and services that cater to their individual needs, helping them to look and feel their best every day.

Our beauty salon is set to become a cornerstone in the community, offering a space for self-care and beauty enhancement, while also fostering a culture of wellness and confidence among our clientele.

Project Owner

The project owner is a seasoned beauty industry professional with a passion for helping people look and feel their best.

With a background in cosmetology and a keen eye for the latest beauty trends, the owner brings a wealth of experience in salon management and customer service excellence. They are committed to creating a beauty salon that stands out for its dedication to quality, innovation, and a personalized client experience.

With a vision of fostering self-confidence and well-being, the owner is determined to offer top-tier beauty services while nurturing a warm and inviting salon atmosphere.

Their commitment to the craft and to the clients is the driving force behind this project, aiming to establish a beauty salon that becomes a beloved part of the local community's daily life.

The Market Study

Market segments.

The market segments for this beauty salon are diverse and cater to a wide range of clients.

Firstly, there are individuals seeking regular hair care services, such as haircuts, coloring, and styling, who prioritize maintaining their appearance.

Additionally, there are clients interested in specialized treatments, such as keratin treatments, hair extensions, or scalp therapies, who may be dealing with specific hair concerns or looking for a transformation.

The market also includes those looking for a full pampering experience, including skincare services, manicures, pedicures, and massage services.

Lastly, beauty professionals such as makeup artists and stylists can be a key segment by partnering with the salon for events and referrals.

SWOT Analysis

A SWOT analysis of this beauty salon project highlights several key factors.

Strengths include a skilled team of beauty professionals, a luxurious and welcoming salon environment, and a strong reputation for quality services.

Weaknesses might encompass the high operational costs of maintaining a premium salon and the challenge of staying current with beauty trends and techniques.

Opportunities can be found in expanding the salon's service offerings, leveraging social media for marketing, and building a loyal customer base through membership or loyalty programs.

Threats could involve the competitive nature of the beauty industry, economic downturns affecting discretionary spending, and the rapid pace of change in beauty trends.

Competitor Analysis

Competitor analysis in the beauty salon industry indicates a highly competitive landscape.

Direct competitors include other local salons, spas, and chains that offer similar beauty and wellness services.

These competitors vie for clients who are looking for convenience, quality, and a range of services.

Potential competitive advantages include a unique salon experience, superior customer service, expertise in cutting-edge beauty treatments, and a strong brand identity.

Understanding the strengths and weaknesses of these competitors is crucial for carving out a niche and ensuring customer loyalty.

Competitive Advantages

Our beauty salon's competitive edge lies in our dedication to providing a holistic beauty experience.

We offer a wide array of services, from hair care to beauty treatments, all under one roof, ensuring convenience for our clients.

Our team's expertise in the latest beauty techniques and trends allows us to offer personalized services that cater to individual client needs.

We also emphasize building a serene and luxurious atmosphere, making each visit a rejuvenating experience.

Our commitment to using high-quality products and equipment ensures that clients receive the best possible care, enhancing their overall satisfaction and trust in our brand.

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

The Strategy

Development plan.

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

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

The second year will focus on expanding our services and possibly opening additional locations in high-demand areas to increase our market reach.

By the third year, we aim to introduce our own line of beauty products and collaborate with influencers and beauty experts to solidify our reputation in the industry.

Throughout this period, we will prioritize customer satisfaction, innovation in beauty treatments, and staying ahead of industry trends to ensure we meet the evolving desires of our clients.

Business Model Canvas

The Business Model Canvas for our beauty salon targets individuals seeking quality beauty services, including hair, nails, skincare, and makeup.

Our value proposition is centered around providing a luxurious and therapeutic experience with a range of high-quality beauty treatments and personalized care.

We offer our services through our physical salon location and potentially through a mobile app or website for booking and consultations, utilizing our skilled professionals and state-of-the-art salon environment as key resources.

Key activities include service delivery, customer relationship management, and maintaining a strong online presence.

Our revenue streams will be generated from the sale of beauty services and products, while our costs will be associated with staff, 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 image and customer loyalty.

We plan to engage our target audience through social media marketing, partnerships with local businesses, and hosting beauty and wellness events.

We will also leverage influencer partnerships to showcase our services and reach a wider audience.

Additionally, we will offer membership packages and referral discounts to encourage repeat business and word-of-mouth recommendations.

Risk Policy

The risk policy for our beauty salon includes measures to mitigate risks associated with service quality, customer satisfaction, and health and safety.

We will ensure compliance with all health and safety regulations, provide ongoing training for our staff, and use high-quality, hypoallergenic beauty products.

Regular customer feedback will be sought to improve our services, and we will manage costs effectively to maintain financial stability.

We will also carry comprehensive liability insurance to protect against any potential claims related to our services.

Our focus is on delivering safe, high-quality beauty treatments that exceed our clients' expectations.

Why Our Project is Viable

We are committed to launching a beauty salon that stands out for its quality services, luxurious atmosphere, and innovative approach to beauty and wellness.

With a growing demand for premium beauty experiences, we believe our salon will attract a discerning clientele looking for top-tier treatments and products.

We are prepared to adapt to the dynamic beauty industry and are excited about the opportunity to enhance the well-being and confidence of our customers while building a successful business.

We are optimistic about the future and the positive impact our beauty salon will have on the community.

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

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 beauty salon and our financial plan for a beauty salon .

Initial expenses for our beauty salon include the cost of leasing a suitable location, renovating the space to create a relaxing and aesthetically pleasing environment, purchasing salon equipment such as styling chairs, wash stations, and beauty supplies, as well as investing in a robust booking system. Additional costs involve obtaining the necessary licenses, insurance, and training for staff to provide a wide range of beauty services, alongside expenses for branding and executing targeted marketing strategies to attract our desired clientele.

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

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

The projected income statement outlines expected revenues from our beauty services, including hair styling, skincare treatments, and other aesthetic services, as well as the costs of goods sold (beauty products, supplies), labor, and operating expenses (rent, marketing, salaries, utilities, etc.).

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

The projected balance sheet will display assets such as salon equipment, product inventory, and any improvements made to the leased space, while also accounting for liabilities like loans and accounts payable.

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

Our projected cash flow statement will detail the inflows from service sales and outflows for expenses and purchases, enabling us to predict our financial needs. This is crucial for maintaining a healthy cash balance and ensuring smooth salon operations.

The projected financing plan will identify the sources of funding we intend to utilize to cover our initial costs, which may include personal savings, bank loans, or investor capital.

We will closely monitor the working capital requirement to ensure we have sufficient funds to cover day-to-day operations, such as restocking beauty products, managing inventory, and paying staff wages.

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

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

Key performance indicators we will track include the profit margin on our beauty services, the current ratio to evaluate our ability to meet short-term obligations, and the return on investment to gauge the efficiency of the capital we have invested in the salon.

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

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Salon Business Plan Template

Used 5,700 times

You're finally ready to open your own salon. This salon business plan template and tips will help guide you how to present your salon as a sound investment.

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Prepared by: ​ [Sender.FirstName] [Sender.LastName] ​ [Sender.Company] ​

Prepared for: ​ [Client.FirstName] [Client.LastName] ​ [Client.Company] ​

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Executive summary

In order to fulfill the vision in this salon business plan, we will require (amount) in capital which will be allocated roughly according to the following table:

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.).

Marketing plan

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).

Competition

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.).

Specific marketing plan

​ [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).

Products and services

​ [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).

Operations plan

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.

Expense projection

We expect our monthly outlay of expenses to approximate to the following:

Management team

​ [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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Writing a business plan for a beauty salon

Booksy Team

minutes read

A well-written business plan can be a great roadmap for your salon – thoughtful planning and analysis help you make sure that you are building your business on solid foundations. Whether you’re just launching or have been running for quite some time – it’s never too late to create this kind of guide. And even if you’re flying solo in your business, creating a business plan for a small or mobile beauty salon is most definitely a thing!

Tip: Do you want to prepare your own solid business plan? Use our template to cover all the important points!

A business plan is basically a collection of your principles, goals and methods. It’s an outline of your company that allows you to prevent (or at the very least – minimise the effects of) disruptions taking place whenever you want to implement a new idea. We’ve prepared a template that covers all the most important elements – by using it, you’ll be able to prepare a business plan fit for your beauty salon in no time.

Overview of your business

Begin by describing the most essential elements. State your salon’s purpose, objective and the approach it takes to reach its goals. Describe where you operate and if you have more than one location (or in case your business is mobile – what is your reach). If you succeeded to reach one (or multiple) of your goals so far include this piece of information as well, along with a detailed description of the steps it took to get there.

In this part, include:

• The company purpose, mission and vision
• Company formation information
• Location and geographical markets served or where you have a presence
• Current status and stage of business
• Any notable achievements so far

Management and organisation of your business

This part is dedicated to all people involved in creating your business. State clearly who is the founder, owner and shareholder of the salon. If you have multiple employees, it’s a good idea to include a section dedicated to key team members – including managers, team leaders (if you have them) and employees with unique skill sets.

• Founders and executive team members
• Any owners and shareholders
• Team leaders and key team members

Definition of your beauty services

Now it’s time to describe what you do in detail. What services do you provide and what products do you use and sell? You can also set your pricing and include plans for the future expansion of your service range.

• Definition of the core services
• Product lines used
• Current pricing
• Anticipated future products and services you hope to develop

Marketing plan

In this part, you think more about your target audience and competitors. It’s best to begin with doing a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats and is a way of recognising your internal and external issues. Strengths and Weaknesses are internal and you can develop or change them through hard work, while Opportunities and Threats you can smartly take advantage of or protect yourself from, but cannot change. It’s important to distinguish and name them so that you can create a conscious, smart marketing strategy.

• SWOT analysis
• Target market research
• Competition and market research
• Marketing channels to be used
• Marketing budget

Operational plan

This part of the business plan is dedicated to your expansion plans. Do you want to get a bigger space? Are you planning to become more tech-savvy? Does it seem like you are going to require new equipment? Include your plans and predictions in this part.

• Facilities and space needed
• Technology needs
• Equipment needs
• Legal and accounting needs

Financial plan

Arguably the hardest part of creating the business plan is finding a moment to gather all your financial data . It will be much easier to do if you use Booksy, as the system delivers Statistics and Reports features that provide (but are not limited to) details on your business performance, staff commission and product inventory.

• Current balance sheet
• Financial projections for the next year
• Cash flow projections
• Income and expenses

Writing a business plan when you are a beautician is based on the same principles as those for creating a business plan for a big company – you just adjust the respective points to your model of operation. Making a clear description of each of these elements will be a great help whenever you will be faced with the challenge of making important decisions. Your business plan, if written properly, will be your guidebook. You gain a much-needed sense of control over your business. And if you are keen on gaining even more of it, try Booksy – the best salon management software dedicated to all beauty business owners, even those who prefer to play solo.

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Beauty Business Plan (Why You Need One & How to Write It)

Starting a beauty business may sound like an easy thing to do. However, it's not the case since starting such a business involves a lot of things to settle. In general, there's so much more to starting a beauty business that you need to have a business plan to be successful. Otherwise, you will end up being overwhelmed with so many things.

Now, if you're wondering about a business plan and how it's essential as you start your beauty business, you've come to the right place!

A business plan for a beauty business generally illustrates your goals, financial strategies, research, and everything else involved with your business. It contains the strategy for guiding and helping you start and run your business.

In this article, we'll talk more about the business plan for a beauty business and every concern you may ask about, mainly how to write one.

Without further ado, let's get into it!

What is a beauty business plan?

A beauty business plan is a document that defines (in detail) a beauty business' objectives and how it plans to achieve its goals.

For instance, a beauty business typically needs an initial investment. As such, you need to include the said amount in your plan and how you can acquire such, either from your pocket or through a business loan or any other financing option (learn more about a beauty business financing .

Profit and goal are other examples. It is also included in your business plan as a goal to achieve within a set period, usually within months.

Overall, the business plan is the document that lays out a written road map for the beauty business from a marketing, financial, and operational standpoint. You should also have a basic idea about a beauty business profitability .

Business plans are essential for startups and established businesses, and the beauty business is no exception. Every business, regardless of the type, should have one.

Further, business plans are critical documents for internal and external audiences. For instance, you may use these plans to attract investors before establishing a track record. It can also help you secure loans from financial institutions.

Business plans can also help keep your beauty business' leadership team on track for meeting established goals and on track with strategic action items.

Overall, business plans are particularly helpful for new businesses, including the beauty business. Ideally, goals should be reviewed and updated periodically to reflect achievements or changes. When an established business changes direction, a new business plan is created.

Why do you need a beauty business plan?

You need a beauty business plan for several reasons. However, the main reasons are to help you establish your company, set the goals you want to achieve, and evaluate your beauty business’ status after a specific timeframe.

As a general rule, your business plan serves as a guide. Revising and adjusting this plan may also be necessary as circumstances change throughout your actions.

You should know that if you plan to apply for a business loan (which any knowledgeable entrepreneur should do), lenders want to see a business plan.

For your beauty business to succeed and meet your goals, you need a precise and robust business plan.

Learn more about starting a beauty business :

Where to start?

-> How to finance a beauty business? -> How much does it cost to start a beauty business? -> Pros and cons of a beauty business

Need inspiration?

-> Other beauty business success stories -> Beauty business Instagram bios -> Beauty business Instagram captions

Other resources

-> Profitability of a beauty business -> Beauty business tips -> Blog post ideas for a beauty business

How to write a beauty business plan?

When creating a business plan, you need to include more than just the steps on how you start. It also includes how you will sustain it and how you can develop it even further as you move forward. Simply put, it should include everything related to your beauty business.

If you’re wondering how to write a business plan for your beauty business, here are the things you need to include:

1. Executive summary

The executive summary in a business plan includes a gist of your entire beauty business. Further, it includes the general reason why it will turn out successful.

2. Company description

The company description details every information about your beauty business. As such, it includes your advantages over your potential competitors and the things that make your business stand out above other similar companies.

3. Organization and management

The organization and management are the part of your business plan that states the structure of your beauty business.

It includes the entire staff, especially the ones who will run your beauty business, whether you’re solo, with a partner, or with a group of people. Simply put, it shows what type of business you run and who is responsible for it.

4. Market analysis

The market analysis is the part of your business plan that shows your perspective on the industry where your beauty business belongs.

Since it’s about marketing, it includes your target market or customers. Further, it includes your potential competitors since they can take away your potential customers.

5. Financial plan

The financial plan is the part that concerns everything related to your beauty business finances. This document consists of a detailed financial statement and an analysis of your finances and the required funds .

6. Marketing strategy

The marketing strategy outlines the concerns about reaching out to potential customers . Moreover, it demonstrates how to expose the products and services your beauty business offers.

Besides attracting customers, it also includes strategies for gaining new customers and keeping the regular ones from leaving. Finally, it outlines strategies for increasing sales for your beauty business to grow.

What makes a good beauty business plan?

A good beauty business plan serves as a roadmap that outlines the strategies and actions required to achieve the goals and objectives of a business. It typically includes information about the business's products or services, target market, competition, marketing and sales strategies, operations, financial projections, and management team.

Here are some key elements that make up a good business plan:

• Executive summary : This is a brief overview of the entire business plan, summarizing the key points and objectives of the company.
• Company description : This section provides detailed information about beauty business, including its history, mission statement, and legal structure.
• Market analysis : This section should describe the industry and market that beauty business operates in, including target customers, competitors, and market trends.
• Products or services : This section should describe the products or services beauty business offers, highlighting their unique features and benefits.
• Marketing and sales strategies : This section should detail the strategies that beauty business will use to promote and sell its products or services, including pricing, distribution, and advertising.
• Operations : This section should outline the day-to-day operations of beauty business, including manufacturing, production, and distribution.
• Financial projections : This section should provide detailed financial projections, including income statements, balance sheets, and cash flow statements.
• Management team : This section should introduce the key members of beauty business's management team, highlighting their qualifications and experience.

Overall, a good beauty business plan should be well-researched, realistic, and focused on achieving specific goals and objectives. It should also be adaptable and able to evolve as the business grows and changes over time.

Frequently Asked Questions

Can i write a beauty business plan myself.

Yes, you can write a beauty business plan yourself. It requires a clear understanding of your goals, target audience, competition, financial projections, and marketing strategy. Research successful plans and use templates. Ensure it's comprehensive, realistic and seek help if needed. Ultimately, a good business plan sets you up for success.

How long should a beauty business plan be?

There is no standard length for a beauty business plan. It can range from a one-page summary to a comprehensive document of 50+ pages. The length depends on the complexity of the business, audience, and purpose. A concise plan that covers key elements is often more effective than a lengthy one.

In a nutshell, creating a business plan for a beauty business is a bit complicated, but you still need to do it.

Overall, a business plan will help you make the right calls, obtain the funding you need, and strongly start your new beauty business. As such, you must make a robust and precise one.

The six parts we included above should be handy throughout this process. With this information, you can begin writing your business plan and see what it takes to become a professional entrepreneur.

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• How Much Does It Cost To Start A Beauty Business? (In 2024) 10 of 10

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6 Mobile Salon Ideas To Start Your Business

Discover six innovative mobile salon ideas to kickstart your beauty or wellness business on the go – perfect for pros looking to offer convenient services.

No credit card required.

A mobile salon turns any location into a beauty hotspot.

These businesses on wheels let you bring clients convenient beauty and wellness services – and become your own boss while you’re at it. Whether you're just starting out or want to add on-the-go services to your brick-and-mortar shop, going mobile is an exciting way to put your brand on the map. 

Get rolling with these six mobile salon ideas for your services, decor, and marketing.

What Is a Mobile Salon?

A mobile salon brings beauty services directly to clients. You can either outfit a truck or van with salon equipment or use it simply as transportation for home visits. This lets you offer a full range of salon services right at clients’ doorsteps – anything from hairdressing to makeup to nail services.

For example, you can travel to a bride's wedding venue as a mobile hairdresser to do the bridal party's hair and makeup. You could also visit clients at their workplaces for quick haircuts, manicures, or skin treatments over lunch breaks. 

This flexibility lets you meet people where they're at. Because they don’t have to come to you, you cater to customers with busy schedules or who find traditional salon settings challenging for reasons like mobility and privacy. And this setup is perfect for business owners who love a little day-to-day variety.

If you don’t also have a brick-and-mortar location, starting a mobile salon saves you money on rent and utilities. While you still have to pay for things like styling products, bleach, and hair color, you can invest funds into equipping the perfect converted van or saving for high-end supplies. 

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6 Mobile Salon Ideas

Take your beauty business on the road with these six ideas for mobile salons. Get off the ground and set yourself apart from the competition.

1. Offer a Limited Menu of Fast Services 

People go to mobile salons because they love speed and convenience – so give it to them. Offer a curated selection of services to busy clients who need quick hair solutions without the time commitment of a complete salon visit. Focus on fast, efficient services, like express blowouts, bang trims, and simple styles like twists and ponytails. 

Keeping it simple attracts many clients, from professionals preparing for meetings to guests getting ready for special events. It also streamlines operations so you only need basic supplies, like a powerful blow dryer and scissors. You save time and money at the same time. 

2. Focus on Eco-Conscious Beauty Practices

Stand out from the competition with eco-conscious beauty practices. Use cruelty-free, vegan products to appeal to environmentally conscious clients and position your brand as ethical and responsible. You can even outfit the mobile salon with earthy decor to match.

For example, offering hair treatments with organic products can highlight your company's commitment to the environment and attract clients who share your values. 

3. Serve Group Events With a Mobile Spa  

Take a mobile spa to events like bachelorette parties, birthdays, or corporate retreats. This is an exciting way to cater to a niche market – group events – with services like facials, manicures, and massages. It's an excellent way to increase revenue because serving groups means booking several clients simultaneously. 

4. Save Space With Portable Mobile Salon Furniture 

If hair is your business, mobile hair salon interior space is limited. To make the most of it, choose furniture and equipment designed for small spaces, like portable styling chairs and simple stools. Prices vary for this type of furniture, with stools as low as $28 and premium barber chairs at $700 or more. The best choice for you depends on your budget and space.

Investing in compact, versatile equipment helps you provide high-quality services without making clients feel like they’re walking into a closet. It’s key to everyone’s comfort.

5. Market Your Mobile Salon Effectively 

A mobile hair salon or spa isn’t an ice cream truck. You can’t drive around expecting people to come to you. You need to make your business easy to find in other ways – and that means marketing your business .

Start with a website. You can showcase your services, testimonials, and booking options for potential and current clients so people find you and make appointments. GlossGenius's Custom Website Builder makes creating a professional mobile beauty, wellness, or hair salon website easy. With pre-built templates, all you have to do is plug in your info.

Don’t stop there. GlossGenius's Marketing features let you send unlimited email campaigns (with no extra fees) and mass text messages to clients based on visit history, appointments, and product purchases. Emails and text messages are a great way to engage with your customer base, let them know about upcoming discounts or events, or wish them a happy birthday . 

6. Manage Booking With Salon Software 

Booking for brick-and-mortar salons is already tricky. It gets harder when you have to manage appointments on the go, plus travel details and information about what products you need and when. 

GlossGenius' has a mobile app so you can manage appointments without a computer. Our Online Booking lets your clients easily schedule appointments for your mobile beauty salon and add details about where they are and what they need. They don’t have to sign up or download an app, making the process even more seamless.Plus, custom cancellation policies and automated appointment reminders help you grow your business by preventing no-shows and cancellations – roadblocks that hit even harder when you’re mobile. 

Sign up for a 14-day free trial with GlossGenius!

5 Mobile Salon Requirements  

Starting any business has legal implications, but there are a few more when you also have to register a vehicle. Here’s what to know:

1. Business Registration 

Register your mobile salon with your state . Requirements and fees vary according to where you live, but in most cases, you can fill out an online form with your business name, contact information, and other necessary details. This step is critical because it legally establishes your small business so you can operate without a hitch. 

Costs for registration vary according to your state and what business structure you choose, but you can expect to pay somewhere between $100 and $300 for a small business. 

If you run your mobile salon or barbershop out of a vehicle, choose a used van or pre-built option – doing it yourself takes more time and money than it seems. Prices for pre-built mobile salons and barber vans can range from $13,000 to over $100,000, depending on the build and what’s inside.

Make a list of all of your must-haves and start searching. For example, if you’re styling hair, you might need a working sink or two. Or, if you’re doing nails, you might choose a van with lots of windows and ventilation to let those pesky polish fumes escape.

3. Transportation License

You don’t need a special license to drive a van. But if you decide on a bigger vehicle, like a Class A RV (which is around 25–45 feet long), you may need to take an RV safety course or get a commercial driver's license (CDL). 

To obtain a CDL, research your state's requirements. These typically include the following: 

• Online or in-person application
• Medical forms
• Vehicle inspection 
• Fee ($30–75+) 

4. Cosmetologist License

If you don’t already have one, get a license to conduct the services you plan on providing. A cosmetology license lets you legally offer hair and skincare services, and regulations vary depending on where you live. 

In most states, you must have your high school degree or GED, complete a training program at an accredited training school, pass an exam, and be of the minimum age. Expect to pay $5,000–20,000 in tuition, and licensing costs vary. 

5. Insurance 

Professional and general liability salon insurance protects your business from risks like client injuries, loss of personal information, and property damage. For example, if a client slips and falls in your mobile salon or if you accidentally compromise a client's financial details, having insurance covers any legal fees or damages that occur. 

Costs vary according to where you live, which company you choose, and which plan you select. 

How Much Do Mobile Salons Make on Average?

Running a mobile salon offers more flexibility and lower overhead costs than traditional salons – which puts more money in your pocket. 

According to ZipRecruiter, mobile hair stylists earn $21 per hour on average. This wage can go as high as $33 depending on your skill level and experience. But keep in mind that this average is based on individual hair stylists, not salon owners or people giving other treatments. When you have control over what you do and what you charge, you can earn more.

Empower Your Mobile Salon Services With GlossGenius 

As the mobile beauty salon industry thrives, there's never been a better time to embrace this business model. Mobile salons are flexible and convenient – a hit with clients who prefer unrestricted beauty and wellness services that work with their busy lifestyles.  

With a mobile salon, you need a software that can be as flexible as possible while you’re on the go. GlossGenius is here to help. GlossGenius is a salon app with everything you need to manage and scale your company. Our all-in-one platform includes features to help you rock Client Management , including Client Notifications so they never forget an appointment. Plus, our Point-of-Sale (POS) systems work from anywhere so you can accept payments straight from the mobile salon chair.

Start your free 14-day trial with GlossGenius today and get on the road.

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