Most Helpful Salon Business Plan Template [Free Download]
All salon owners must have a good salon business plan.
There’s no getting around that.
Poor planning is the number one reason hair and beauty salons fail.
We all know this. But how come so many salon owners start their salon business without a salon business plan?
Creating a salon business plan may seem like a daunting task. Salon owners I meet procrastinate over their business plan because of the idea that a salon business plan needs to be a massive, 50 page, document with a lot of details.
But it doesn’t.
It can be one page.
In fact, a one-page salon business plan is in most cases more helpful and effective than an old school 50 page document.
And, assuming you’re clear on where you want to take your salon business, you can create it in just a few hours.
In today’s article, I’ll show you exactly how you can create a focused and powerful salon business plan. You’ll also be able to download a salon business plan PDF and Doc template at the end of the article to get you started.
Are you ready?
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What is a Salon Business Plan?
A salon business plan is a summary of how your salon business will function and clarifies why it will be successful. It provides a roadmap with goals and milestones to lead your salon to success.
Why do You Need a Salon Business Plan?
The primary reason you need a salon business plan is for you to get in control of your beauty business and to enable the right decisions upfront. A well-laid-out plan gives you a clear path to follow as you set out, while it also helps spot weaknesses in your salon business early. You also need a salon business plan to communicate with others. If you need to raise money, the bank or investor will want to see your salon business plan before issuing any funds.
Not having a business plan for your salon would be like building a house without any drawings. This is obvious when you’re thinking about a house, but for some reason, it’s often de-prioritized or forgotten by salon owners which, unfortunately, is the main reason salons go bankrupt.
But don’t worry.
Today you’ll learn how to write a salon business plan using the free template you can download at the end of this article.
You Get What You Measure
We’ll soon go over all the parts we need to define as part of your plan. But as we do this, we also need to make sure we have ways to measure the results.
If you don’t have a way to track and measure how your business performs vs. the goals and assumptions you define as part of your plan, you’ll operate blind, and you will not take the actions you need to get your business to the place we are trying to define with the plan.
This is why you should invest in powerful salon software that offers rich support for reporting and tracking the key targets you have set for your business.
The below video walks you through what reports look like in Mangomint – the software I recommend if you’re serious about your business.
Having access to this data in a simple way will be a game changer to the success of your plan. You can learn more about Mangomint and if it is right for you here .
How do I Write a Business Plan for a Salon?
There’s 10 critical components that should be included in any salon business plan:
This table will give you an overview of the components you’ll need in your plan. I’ll go through each one in detail in this article.
You can choose any format you want to write your plan in. A regular Microsoft Word document is a common document, but you could also do it in Excel or Power Point.
Keep Your First Salon Business Plan to One Page Only
I’d strongly encourage you to try and fit your business plan onto one page. At least for your first plan.
You’ll need a separate Excel spreadsheet for your financial budget and detailed milestones. But keeping the overall business plan on one page will make this the most helpful salon business plan you can create.
Complexity means distracted effort. Simplicity means focused effort. Edward de Bono
If you can keep the plan to one page, you’ll:
- Have it ready (fast): Some salon owners take months to write their salon business plan when using the traditional big document model.
- Keep it focused: A heavy document with a lot of details will distract your focus. A one-page plan on the other hand, will keep the few key things you need right in front of you. So that you can dedicate your attention to what will have the greatest impact.
- Keep it up-to-date: To be successful today, you need to be fast and agile. Having a 50 page document to update every time you make changes to your plan will make it impossible to maintain it.
- Make it easy to communicate: People are increasingly busy. In particular, investors if that’s who you’re going to share your plan with. Most of them will love it if you can convey what your business is about in just one page. I say most of them. Still, some institutions will require a multi-page plan, but you can deal with that when needed.
The Salon Business Plan Outline
We’ve arrived at the exciting part.
It’s time for you to start drafting your salon business plan. During the rest of this article I’ll walk you through each heading in your salon business plan outline. I’ll explain what each part is and also provide an example for each one that you can adapt to fit your plan.
Don’t just read through this part. Get a pen and paper out and jot down all ideas that come to mind. You’ll find these notes helpful later.
1. Salon Mission Statement
A salon mission statement is a short summary of why your salon exists, what the goal of the salon is and how this goal is achieved. It is the first thing you and other people who read your plan see and should be clearly visible at the top of your one-page salon business plan.
Everyone who work with and for you should understand and embrace your salon’s mission. It unites your salon team.
What is a Good Mission Statement of a Salon?
A good salon mission statement should capture the unique essence of why your salon exists. It sets the direction of your salon business. It should be the north star you look at when making all decisions for your salon. It’s typically one paragraph with one or two sentences.
It’s not easy to write a salon mission statement. Or, it’s easy to write it, but it’s not easy to boil down the overall essence of your salon in a couple of sentences. If you want to dive deeper into how to write a truly inspiring salon mission statement, I suggest you read my separate article about it here .
Salon Mission Statement Example
“Our mission is to provide a friendly, personalized service through a team of highly skilled and creative professionals. Teamwork is our most valuable asset which ensures our clients are always number one, and we strive to exceed your expectations”.
This is just one example to get your thinking going. To get more inspiration on how you can craft your salon mission statement, I’ve created a list of mission statements used by salons today . Not all are perfect, but you’ll find some highly inspirational ones in there.
2. Problem the Salon Solves
All successful businesses exist to address a problem that other people have. For example, I’ve written this blog post because I know there are people like you who need to get a business plan written for their salon but do not know where to start.
But what problem does your salon solve?
This is worth taking a few moments to think about. Because if you don’t have an obvious problem to solve, this is a sign of weakness in your plan. And that you need to adapt how you plan to approach your salon business.
It for sure doesn’t mean that there’s no room for your new salon. It just means you must re-focus your salon on a specific client segment or niche.
Nailing down what your clients’ problems are upfront can guide your salon to success you wouldn’t have been able to spot otherwise.
Example of Problem a Salon Can Solve
“Women have less and less time to spend on theirselves. At the same time, the demands they place on their appearance continuously to go up. They want that healthy looking hair, perfect brows and nails that look stunning every day. But there’s just not room in their calendar to fit all these appointments in.”
If your salon is based in a business district in a city area, this could very well be a problem that a big part of your potential clients faces.
What would you say is the problem people face in the area where your salon is (or will be) located?
3. Solution the Salon Offers
Now that you know what problem your clients face, it’s time to work out how you’re going to solve the problem. The solution is what you’ll offer in your salon and how you’ll offer it.
The Salon Offer
Your salon menu is of course at the core of your offer. The services you have on your menu should be inspired by your clients’ problems that you’re trying to solve. For salon service ideas you may want to add to your salon price list you can check out my other article here .
Retail products is another part of your offer that should complement the services in a way that helps address your client’s problem.
How You Provide the Service and Products
Your solution is not only about the services and products you provide but also how you provide them. What’s the experience you offer in the salon? How are you pricing your services? Do you need to book in advance or do you offer drop-in? Do you sell retail products online?
It could be that your service menu is identical to other salons in your area. But if you’re offering a different experience, at a different price, you can still fill a gap in the market and address a problem that people have.
Example of Beauty Salon Solution
Let’s take the problem example above – where women in your area have too little time to get all the beauty services they’d like. Your salon solution could then be something like the below:
“We offer set packages of hair cut & color with waxing and nail services included. You’ll receive all services at the same time so that you get everything done in under 90 minutes.”
Being Different through Customer Experience
I just want to reinforce that how you offer your service does not necessarily need to be in a completely out-of-the-box and new way for you to stand out. It can be by simply doing things better than what your competition is doing.
For example, by placing a bigger emphasis than anyone else on the customer experience. That people feel better treated and have a higher level of customer service than they get anywhere else. In my opinion, this is probably the best way to differentiate yourself today.
The software you use can play a big role here by automating some while still keeping it personal. Like when we allow all our clients to text us at any time. This direct access is very valuable to clients but a mess if we don’t have the right technology to support it.
We run this with the two-way texting feature of Mangomint . It allows us to have client text at any time and messages can be directed within the team and you get a full overview of all client communication (like all automated reminders as well as when people in the team jumps in).
This is just one example of how you can use technology to ramp up your client service level and stand out in your area. Mangomint is quite unique here with several features designed to improve the experience you create with clients. If client experience is important to you and your business, you can learn more about how they do it here .
4. Salon Revenue Model
Your salon needs to make money..
..or it will not exist very long.
But there are many ways that a salon can make money and profit – it’s not just about service sales (even if that’s typically the bigger part of it).
How you generate income should be summarized in the salon revenue model section of your business plan.
I’ve created a separate article for you where I go through what the typical salon revenue model looks like here . In the same article, you’ll also find 6 different revenue models that you can implement to grow your business further.
Let’s go through the most common ways salons make money. I’ll then give an example of how you can outline your salon revenue model in your salon business plan.
How do Salons Make Money?
Salon’s primary income comes from service revenue. For the average US hair salon, this accounts for about 92% of the income generated. On top of that, a small portion of income is generated from retail sales (8%).
But there are several other ways a salon can make money: service revenue, retail sales, and professional education – just to name a few.
Overview of the common income streams for a hair salon
Example of a Salon Revenue Model
Let’s continue to use the salon located in the busy business district also in the example.
“The beauty salon will make money by offering full service packages to business women working in the area with high income but limited time. Retail products will be part of the pre-defined packages and make up 25% of total salon turn over. The services packages will be offered on a subscription program or sold separately at a premium price.”
Membership & Subscription Revenue Model
Subscription-based programs for salons and spas, like in the example above, are growing in popularity. It can create much more stability in your business as you know what income you’ll have in the months ahead.
If you’re already using Mangomint , it’s easy to set up multiple membership programs like this (see screenshot below). Just define what should be included and how often your client should be charged. So you cannot blame not offering this on technology anymore 🙂
5. Salon Expenses
Your salon will generate not only income but also expenses. Your bigger cost pools should be reflected in your salon business plan. Let’s look at some examples of what they could be.
Monthly Salon Expenses List
The biggest monthly expenses a salon has are:
- Rent and utility bills
- Product purchases
The exact costs will vary from salon to salon depending on location, the number of staff, and the business model you choose.
Tip: To estimate what your salon insurance cost will be you can read my salon owner’s guide to insurance costs here .
Salon Startup Cost List
Common costs when starting a salon are:
- Rent deposit
- Buying out previous salon owner
- Leasehold improvements
- Salon equipment
- Initial supplies and inventory
- Certifications and licenses
- Salon launch marketing
- Legal fees and salon insurance
For a more detailed picture of salon startup costs, you can read my article where I walk through all the costs of starting a salon here .
Given salon equipment can be high, I’vs also put together a list of hair salon equipment that you’ll need when you open a hair salon here .
Another resource you may find helpful is also my list of salon software and other tools you may need to start your business .
Example of Salon Expenses Description
“Wages will be the biggest cost element (40%) and secondly the rent (25%) in the busy business district. Salon profit margin target is 20% of total turnover.”
6. Target Salon Client and Market
Do you know how many people live or work in the area where you salon is (or will be) located? And do you know how many of those that fit in the relevant target group for your salon?
These will be important numbers to know as you’re choosing the location of your salon and crafting your plan and salon concept.
It’s impossible to please everyone. If you try to make your salon relevant for everyone you’ll end up not being relevant for anyone. So define who your ideal salon client is and estimate what the size is of that market.
That is, how many people fall in to your client category and how much are they ready to spend on beauty services. This will make up your target market.
When you speak to everyone, you speak to no one Meredith Hill
Example of Target Market for a Salon
I’ll continue to use the same example salon as before.
“The salon offers express beauty package services to business women, aged 24-55, working in the financial district. There are 5’000 women in the target group that are working on walking distance of the salon. The women spend on average $100 per month on beauty services. The total relevant market is estimated to $6 million per year. “
7. Salon Competition
Do you know how many other salons there are in the area where you have your salon (or are planning to open a salon in)?
The more salons there are in the area compared to the people living or working there, the tougher competition will be.
But fierce competition doesn’t necessarily mean it’s impossible for you to be successful.
You’ll, however, need to study your competition closely. What services do they offer? How are their salons positioned?
When you’re clear on what your competitors are doing, you can define what should be your unique points of difference. Armed with that, you can take your piece of the pay. Or even make the pie of customers bigger if you’re bringing something that no one else is offering in the area that will attract new clients who were not previously going to salons.
Example of Salon Competition Study in Your Plan
“There are 5 other beauty salon in the area. Two hairdressers, one barbershop, one nail salon, and a spa. However, no one offers the complete services packages that we will offer. Given the search for convenience and fast services is high, we expect we can take one third of the market over the coming two year. As total market is $6 million, this would mean $2 million market for us.”
8. Salon Marketing Activities
It doesn’t matter how good you are at your craft if people don’t know your salon exists.
But marketing is much more than activities that attract new clients to your salon . It can influence all the 7 ways you can grow your salon business .
But where do you start? There are so many salon marketing activities you could put in place.
The choice of salon marketing activities to implement depends on the challenges your salon face. If you need to build salon clientele fast , you should focus on that. If you need to get your existing clients to come more often, you should focus on that.
In this section of your business plan, you need to make those choices and decide on the activities you need to do to set your salon up for success.
Let’s go through what you should consider and an example of what this could look like in your salon business plan.
Picking the Salon Marketing Activities to Focus on
Now that you know who your ideal client is and how many there are in your area. It’s time to lay out the marketing activities that you’ll focus on.
There are A LOT of things you can do regarding marketing. I have curated a list of the most effective salon marketing activities you can implement here .
But you cannot do all of the salon marketing ideas in this list.
Instead, pick 5 now.
And make sure you can do them well.
You can always come back later to try out more things. I would however be surprised if your salon marketing plan doesn’t include creating your salon brand , building a salon website , and a social media strategy for your salon
But hey, you decide 🙂
Example of a Hair Salon Marketing Plan
“Our salon will not be located on the high street with a lot of people walking by and noticing us. This is why are marketing effort will be focused on running targeted Facebook advertizing to women working in the area with an attractive intro offer. We’ll also focus on local PR in the area as well as our salon Instagram where we will promote the salon in partnership with local activities.
9. Salon Employees & Partnerships and their Roles
Are you starting your salon alone or together with a partner?
Do you need to hire key people to help you launch your salon business?
Is your salon part of a franchise?
It’s quite likely that your salon will depend on other people and organizations in some way or form. This is what you should reflect in this section of your salon business plan. Remember to specify what the role is of each person involved in your business.
Example of Salon Employees & Partnership Section
“The salon will be owned by John & Lisa and will operated with four employees from start: two hair stylists, one nail technician, and one aesthetician specialized on skin care services. The salon will also allow for booth rentals and allow two stylists to rent a chair when the salon has opened. A highly skilled and motivated salon team will be at the core of the business which is why we will invest over 4% of net sales in team capability.”
10. Major Milestones and Salon Business Goals
Setting up a salon business is not a small project. A lot of things need to be done.
You need to obtain the required salon licenses , get salon business insurance , find a salon location , buy salon equipment , market yourself to new salon clients , etc., etc.
It’s frankly overwhelming to think about all the things you need to do next. It’s like a big dark cloud of things that needs to get done. But where do you start?
You need to break down this dark cloud into achievable milestones and goals. Then tackle them one by one.
If you don’t break down these massive projects into smaller tasks, you’ll either get stressed out or start to procrastinate and not get anything done instead.
This is why you need to outline your major milestones and goals.
It’s an exercise that will take a bit of time, but it’s also the most important one. It will help you significantly as you get started, and it will give confidence to investors or other people looking at your salon business plan that what you’re setting out to do is realistic.
Your milestones can be a mix of financial goals and specific activities you must complete by a certain time. Try to include all the bigger things that need to be done from now until your salon is up and running and is meeting your break-even target.
You can make this as sophisticated as you want. I would encourage you to get quite detailed here with specific and concrete steps outlined in an excel file. However, for the sake of the business plan, you can keep it to a bullet-point list of the major achievements and goals.
Salon Milestones Example
Obtain all required salon licenses by May 1st Secure startup funding by May 15th Identify a salon location by June 1st Register the LLC by June 15th Complete salon renovation work by July 15th Get first paying customer by July 15th Hire first employee by August 1st Make first $3,000 in sales by September 1st Reach break even target by January 1st
You can keep your plan at a high level in your plan but, again, you’ll need to break it down even more thoroughly in a separate document with exact financial targets to meet by a certain point in time.
Download Your Free Salon Business Plan Template
You now have all the theory you need to create the most helpful salon business plan for your business. I know it’s been quite a long read, but you must get this right. I hope you feel that this was the best investment of your time today.
But it’s time to move to action now.
It’s time for you to create your salon business plan.
You can download the lean salon business plan template I’ve created for you using the link below. This give’s you a straightforward and simple one-page business plan format that you can edit in Word.
If you prefer to use your Word text editor to create the plan, I’ve created a template you can use.
Salon Business Plan PDF
Download my simple one-page salon business plan template in PDF version.
Salon Business Plan Doc
Download an editable Microsoft Word document version of the salon business plan.
I’m so excited.
You’re embarking on an adventurous journey now.
And your new salon business plan will be your best companion on it.
Congratulations on taking the time to go through this salon business plan guide – it was long, I know. But maybe the most important thing you did today.
Salon owners that plan ahead are significantly more likely to see success, so this was well-invested time on your side. I’ve tried to make this guide the best possible resource for you that are about to create a salon business plan, and I hope you’ve found it helpful.
If you did, you would make my day if you wanted to share it with your friends using the social media buttons on this page.
Any questions, just let me know in the comments box below.
All the best with your new salon business plan!
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Free Hair and Beauty Salon Sample Business Plan
Looking for a free, downloadable hair and beauty salon sample business plan Word doc or PDF to help you create a business plan of your own? Bplans has you covered.
Keep in mind that you don’t need to find a sample business plan that exactly matches your business. Whether you’re launching an upscale, full-service salon in a bustling city or a neighborhood barbershop, the details will be different, but the bones of the plan will be the same.
Are you writing a business plan for your salon because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company.
No two salons are alike. Your business model will be different if you’re renting space to independent hairstylists, rather than taking on employees, for example. So take the time to create your own financial forecasts and do enough market research so you have a solid plan for success.
What should you include in a hair and beauty salon business plan?
Your hair and beauty salon business plan doesn’t need to be hundreds of pages—keep it as short and concise as you can. You’ll probably want to include each of these sections: executive summary, company summary and funding needs, products and services, marketing plan, management team, financial plan, and appendix.
One of the things that makes a salon business plan different than some other service-based business plans is that you might decide to offer a combination of products and services.
Maybe you’ll sell shampoo, beard oil, or other cosmetics and beauty products, in addition to offering services like haircuts, manicures, or massages. If that’s the case, make sure you include your ideas for upselling products to customers to increase the value of every appointment you book.
Download this hair and beauty salon sample business plan PDF or this editable Word doc for free right now, or visit Bplans’ gallery of more than 500 sample business plans if you’re looking for more options.
There are plenty of reasons salon business owners can benefit from writing a business plan —you’ll need one if you’re seeking a loan or investment. Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.
Kateri is a leader in innovative brand and content marketing. She’s committed to putting the best words in the right order to deliver high quality, discoverable, and useful tools and resources at scale. She enjoys exploring the intersection of tech, words, and the people to who drive small business culture.
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Salon Business Plan Template
Salon business plan.
If you want to start a salon business, including a hair salon or beauty salon, or expand your current salon, you need a business plan.
The following salon business plan template gives you the key elements to include in a winning hair, beauty, or other salon business plan.
You can download our Salon business plan template (including a full, customizable financial model) to your computer here.
Sample Salon Business Plan
The sample business plan template below will help you write a business plan for your own beauty or hair salon business.
I. Executive Summary
[Company Name], located at [insert location here] is a brand-new, upscale hair salon focusing on providing high-quality, full-service hair care to the surrounding community. Our product and service lines fit nicely with the prevailing tastes and preferences of the local area – middle class suburbanites want quality hair care, but don’t want to pay luxury prices for it.
Products and Services
[Company Name]will provide relationship-oriented haircutting services for all ages and both genders. Haircutters will focus on building long-term rapport with their clients and strive to deliver personalized beauty results for each individual.
All manner of special treatments will be available—including perms, extensions, coloring, and styling for special occasions (weddings, proms, etc.)
In addition to providing these services, [Company name] will also be a retailer of exclusive hair care products. Customers will find products at [Company name] that they won’t find in grocery stores.
[Company Name] will primarily serve the residents within a 5 mile radius of our location. The demographics of these customers are as follows:
- 27,827 residents
- Average income of $74,700
- 58.9% married
- 49.6% in Mgt./Professional occupations
- Median age: 38 years
In addition to this prime adult demographic for an upscale hair salon, there are two large high schools and four middle schools in the area. Students, particularly girls, from these schools will be sure to patronize [Company Name] for special occasions.
[Company Name]is led by [Founder’s Name] who has been in the hair care business for 20 years. While [Founder] has never run a hair salon himself, he has been cutting hair since age 15 and spent most of his adult life working as a stylist at several major salons.As such [Founder] has an in-depth knowledge of the salon business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The Company will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
- Our location is in a high-volume area with easy access from multiple residential and commercial district zones.
- The management team has a track record of success in the salon business.
- The upscale salon business is a proven business and has succeeded in communities throughout the United States.
- Local competitors leave a large gap in the haircut market—there are low-cost providers ($10-$20), and an ultra-luxury salon ($120+), but nothing in between.
[Company Name] is currently seeking $260,000 to launch.Specifically, these funds will be used as follows:
- Store design/build: $140,000
- Working capital: $120,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
II. Company Overview
Who is [company name].
[Company Name], located at [insert location here] is a new, upscale hair salon focusing on providing professional hair cut styles and services in an enjoyable environment. It will showcase a well-designed interior as well as a full-featured waiting area equipped with television screens and at-request refreshments. [The Company] also sells a variety of premium hair styling and hair care products which will be on display in the waiting room.
[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the hair styling business for some time, it was in [month, year] that he decided to launch [Company Name]. Specifically, during this time, [Founder] took a trip to Fort Lauderdale, FL. During his trip, [Founder’s Name] frequented a hair salon that enjoyed tremendous success. After discussing the business at length with the owner of the salon, [Founder’s Name] clearly understood that a similar business would enjoy significant success in his hometown.
Specifically, the customer demographics and competitive situations in the Fort Lauderdale location and in his hometown were so similar that he knew the business would work. After surveying the local population, [Founder’s name] went ahead and founded [company name].
[Company Name]’s History
Upon returning from Fort Lauderdale, surveying the local customer base, and finding a potential retail location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
The business is currently being run out of [Founder’s Name] home office, but once the lease on [Company Name]’s retail location is finalized, all operations will be run from there.
Since incorporation, the Company has achieved the following milestones:
- Found office space and signed Letter of Intent to lease it
- Developed the company’s name, logo and website located at [website]
- Hired an interior designer for the decor and furniture layout
- Determined equipment and fixture requirements
- Begun recruiting key employees with previous hair styling experience
[Company Name]’s Products & Services
Below are [Company Name]’sinitial service offerings and in-store products sold.
Hairstylists will be asked to perform the following services for both men and women:
- Hair washes
- Special event hair styling (such as for a wedding, prom etc.)
- Hair coloring
- Hair extensions
Each appointment will include an initial hair assessment and suggestion phase where the stylist will discuss the customer’s hair and preferred hair style. There will then be a pre-cut hair wash with our in-store products, a haircut or coloring as appropriate, and finally a post-cut styling to our customer’s preferences.
[Company Name] will feature premium hair products in-store from these well established brands. It will continue to update its offering in order to provide the newest hair products to its customers.
Some of its featured brands will include:
- Sexy hair concepts
- Paul Mitchell Systems
Furthermore, the waiting area will have television screens and popular publications to make the wait for service more pleasurable. Toys and board games will also be on hand for children, as well as at-request refreshments which we will provide for free during the waiting period.
[Company Name] will develop a 2,500 square foot store whose key elements will include the following:
- Stylist Booths
- Reception Desk
- Self-service coffee area
- Sinks to wash hair
- A waiting area with TV screens
Below please find a rough sketch of the floor plan:
The retail location has 10 dedicated parking spots which should suffice even in peak hours.
[Company Name] plans to be open 6 days a week, from 10AM to 6PM. As demand dictates, we may extend or reduce our hours.
III. Industry Analysis
[Company Name] competes against small, individually owned hair salons and barber shops, and against major regional or national chains. There are over 450,000 registered salons in the United States, a figure that reflects the hair cutting needs of 300 million people.
The hair salon industry is a fragmented one, as the 50 largest companies only hold 15% of the market, which is estimated to grow to more than $35 billion in three years. This bodes well for [Company Name]; since there are no truly dominant competitors, barriers to entry are not as high as many other industries, and a start-up can expect to have success in this growing market. There is plenty of room in the industry particularly for well-placed local salons that cater to specific geographic and demographic customer niches. Smaller hair salons can easily develop loyal clienteles that enable them to compete and succeed against industry giants; in this industry, size does not necessarily mean an advantage, which bodes well for [Company name].
The largest competitor in the hair salon industry is Regis Corporation, which is affiliated with more than 8,000 locations across the continent. Their business model uses a combination of franchising and corporate ownership, along with several different brand names at different market positions. Regis tends to maintain central control of its higher-end locations, and franchise its discount haircutters.
The industry in which [Company Name] will compete is experiencing a number of different trends.
- Slow but steady growth. This market is expected to grow consistently at around 2% annually.
- Success drivers. Customer satisfaction is what ultimately makes one salon triumph while another fails. The experience a salon’s client has determines whether or not they return and whether or not they refer others to the same salon.
- Seasonal change. The hair salon industry tends to thrive in the spring and fall, but slow down during the winter and summer. [Company Name] will launch haircutting operations during [Fall/spring], when the industry is experiencing higher sales. Catching a seasonal upswing in the first quarter of business should help provide a buffer of cash for [Company name].
- Price sensitivity at the bottom. The low-cost segment of the market, which primarily serves men and children, often competes on the basis of price. This reflects the different preferences of these particular consumers, who are often more interested in an affordable haircut than in seeing the same hair cutter on a regular basis.
- Size at the bottom. Larger hair salon chains tend to gravitate toward the bottom of the market. Brand loyalty is not strong here. Many companies in this segment use a franchise model.
- Economies of scale. Larger salons are finding opportunities to succeed, by making effective use of support personnel. Receptionists, hair washers, and assistants at larger establishments can take care of many of the menial tasks that skilled haircutters have to handle in small salons. This permits a skilled hair cutter to spend a higher proportion of their time actually cutting hair and generating revenues.
- Premium independent salons. Independent salons also compete in the premium segment of the market. These firms develop loyal customer bases and select their location on the basis of population demographics.
- Specialty salons. Presently, a niche is being carved out for salons that cater to very specific customer segments, most notably adult males from higher income brackets. High-end, men-only hair clubs draw this crowd with upscale amenities such as cigars, pool tables, and drink bars.
- Intense customer loyalty. Many salons develop repeat customers who become a regular client base and represent a significant portion of their revenues. Salons whose employees are able to develop strong relationships with customers can expect to see more long-term success.
- Changing gender patterns. Traditionally, women bring in the lion’s share of revenues for hair salons, using beauty services more often and spending more at each appointment. In recent years, however, the male consumer’s attitude has begun to shift. Men now make up approximately 25% of salon clientele.
- Gender preferences. Women are the most lucrative customers for hair salons, visiting more often and purchasing more special treatments such as coloring.
- Ideal demographics. The baby boom generation generates a very large portion of hair salon revenues. This large segment of the market has reached the peak of its earning power, and they are beginning to need special treatments such as coloring.
IV. Customer Analysis
Demographic profile of target market.
[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].
The area we serve is populated mostly by the middle class; as a result, they have the means to pay for higher quality service, and are looking for a hair and beauty services somewhere between the deep discounters and the top-end luxury brands.
The precise demographics of the town in which our retail location resides is as follows:
The Company will primarily target the following three customer segments:
- Soccer/stay-at-home moms: The town has a large population of stay-at-home moms who are active in the school and community. These moms seek beauty services on a regular basis. Winning the loyalty of a mother often includes winning the business of her children and husband as well. These women are well connected to each other and as such are a prime source of referral business. [Company name] expects to regularly acquire new customers from referrals.
- Professionals: [Company name] is located along a well-traveled commute route. By offering convenient location and exceptional service to the customer, [Company name] will draw in working men and women who need to look professional for work.
- Students: There are multiple high schools and middle schools located in the surrounding area. These students still live on their parents’ income and can therefore afford to pay for higher-quality services than discounters provide. In particular, [Company name] can expect to generate significant seasonal business based on the beauty needs of the local youth culture.
Direct & indirect competitors.
The following retailers are located within a 5 mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Joe’s Beauty Salon
Joe’s Beauty Salon is the town’s most popular beauty salon and has been in business for 32 years. Joe’s offers a wide array of services that you would expect from a beauty salon.
Besides offering hair cuts, Joe’s also offers nail services such as manicures and pedicures. In fact, over 60% of Joe’s revenue comes from services targeted at women outside of hair services. In addition, Joe’s does not offer its customers premium salon products.
For example, they only offer 2 types of regular hair gels and 4 types of shampoos. This puts Joe’s in direct competition with the local pharmacy and grocery stores that also carry these mainstream products. [Company Name], on the other hand, offers numerous options for exclusive products that are not yet available in [Town’s Name].
LUX CUTS has been in business for 5 years. LUX CUTSoffers an extremely high-end hair service, with introductory prices of $120 per hair cut.
However, LUX CUTS will primarily be targeting a different customer segment from [Company Name], focusing on the households with an income in the top 10% of the city.
Furthermore, [Company Name] offers many of the services and products that LUX CUTS offers, but at a fraction of the price, such as:
- Hair style suggestions & hair care consultation
- Hair extensions & coloring
- Premium hair products from industry leaders
Freddie’s Fast Hair Salon
Freddie’s Fast Hair Salonis located four stores down the road from [Company Name]. Freddy’s has been in business for the past 3 years and enjoys great success, primarily due to its prime location.
Freddy’s business offers inexpensive hair cuts and focuses on volume over quality. It also has a large customer base comprised of children between the ages of 5 to 13.
[Company Name] has several advantages over Freddy’s Fast Hair Salon including:
- An entertainment focused waiting room, with TV’s and board games to make the wait for service more pleasurable. Especially great for parents that bring their children.
- A focus on service quality rather than speed alone to ensure repeat visits. [Company Name] will spend on average 20 more minutes with its clients than Freddy’s.
While we expect that Freddy’s Fast Hair Salon will continue to thrive based on its location and customer relationships, we expect that more and more customers will frequent [Company Name] based on the high-quality service it provides.
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location is near the center of town, giving us access to commuters going to and leaving the train station, local office workers, and passersby shopping in the city. We also offer adequate parking making it easy for customers to patronize us.
- Great service at an affordable price: The complete array of hair services offered by [Company Name] nearly equals the most premium positioned competitor, LUX CUTS. However, [Company Name] will offer these services at a much more affordable price.
- Management: Our management team has years of business and marketing experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all of the local leaders, newspapers and other influences. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the hair salon market. Customers can expect to receive professional hair care from familiar haircutters for a price somewhere between discount chains and luxury establishments.
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Convenient location
- Familiar, regular hairstylist
- Significant personal attention
- Moderate price point
- Comfortable, customer-focused environment
[Company Name] expects its target market to be individuals working and/or living within a 5-mile radius of its location. [The Company’s] promotions strategy to reach these individuals includes:
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.
We will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz and we can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost effectiveness. These ads will include discount coupons so that response to the ads can be tracked.
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events. Since mothers are often heavily involved in such things, we will not only reach the lucrative audience of adult women but also potentially their families by extension.
We will drive attention toward [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Customer Loyalty Programs
[Company name] will create a winning customer loyalty program to keep its best clients coming back again and again. When not actively providing services to customers in the store, our professionals and other employees will make periodic, regular phone calls to customers. These phone calls will (a) ensure that customers are satisfied with their hair treatment, and (b) remind customers after a certain period of time has passed that they might want a new haircut. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to visit the salon.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products and more.
Before opening the store, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.
[Company Name]’s pricing will be moderate so customers feel they receive great value when patronizing the salon. The anticipated price point for a standard hair treatment is $35, in exchange for which a customer can expect to receive personalized attention during and after their visit. The customer can expect to receive quality hair care from a familiar haircutter, for a more affordable price than what they pay at an ultra-premium salon.
[Company name] will carry out its day-to-day operations primarily on an appointment basis. Walk-in clients will be served by the earliest available hairstylist, but priority will be given to clients who called ahead. In the meantime, waiting customers can divert themselves in the lounge, which features television and current popular magazines. The Company intends to employ [X] hairstylists and [A] assistants during peak hours and [Y] hairstylists and [B] assistants during off-peak hours. [Company name] anticipates having [Z] customers on a weekly basis.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. As a hair salon, the majority of employees will assist in up selling customers in addition to the primary functions as hair cutters and specialists (coloring, perms, etc). [Company name] anticipates using the services of X employees, divided into the following roles.
- Hair cutting
- Hair washing
- Product sales
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Sourcing and storing products
- Hiring and training staff
- Appointment making
- Customer service/cash register functions
- Maintenance personnel
[Company name]’s long term goal is to become the dominant provider of hair care and related services and products in the [city] area. We seek to the standard by which other providers are judged.
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
VIII. Management Team
Management team members.
[Company Name]is led by [Founder’s Name] who has been in the hair salon business for 20 years.
While [Founder] has never run a hair salon himself, he has extensive experience cutting, treating, and styling hair at major salons for the past 20 years. He began his career in [19xx] when he received a certification from [Hair Cutting School] and began work at [major chain], where he worked for X years.
[Founder] graduated from the University of ABC where he majored in Communications.
[Other person’s name] will serve as the customer service manager. He/she has extensive experience the hospitality industry.
[Founder] will serve as the store manager. In order to launch our salon, we need to hire the following personnel:
- Hair Stylists [Number]
As dictated by demand and operational maturity, [Founder] will consider hiring the following personnel:
- Hair Treatment Specialist [Number]
- Receptionist [Number]
- Store Manager
IX. Financial Plan
Revenue and cost drivers.
[Company Name]’s revenues will come primarily from the services rendered and secondarily from the sale of hair care products.
As with most services, labor expenses are the key cost drivers for hair salons. Hair stylists are paid through a combination of salaries and commission, rewarding them for performance and making hair stylists an active part in business retention and development.
The major cost drivers for the company’s operation will consist of:
- Commission paid to hair stylists on a per service basis
Moreover, ongoing marketing expenditures and cost of good sold expenses are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking total funding of $260,000 of debt capital to launch its store. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive
Key Assumptions & Forecasts
The following table reflects the key revenue and cost assumptions made in the financial model.
5 Year Annual Balance Sheet
5 Year Annual Cash Flow Statement
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Salon Business Plan Template
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Prepared by: [Sender.FirstName] [Sender.LastName] [Sender.Company]
Prepared for: [Client.FirstName] [Client.LastName] [Client.Company]
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.).
Our clientele is made up largely of (families, working professionals, high-income households, etc.) and we intend to cater to this market by (write down the specific strategies geared towards this target market).
Our competition is made up of minimal/many salon businesses with the most significant competitors including (names of main competitors) . We plan to win customers from our competitors by offering (describe differentiating factors you plan to use to outshine your competition i.e. more services, better prices, nicer salon facilities, etc.).
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).
Beauty salons require a consistent supply of materials to operate effectively, and these supplies include (describe supplies). We have established relationships with various suppliers and have negotiated rates for these necessary items giving us pricing assurances for the foreseeable future.
[Sender.Company] intends to hire (number) of staff and have (number) chairs operating. Our hours of operations will be from (describe days and hours the salon will be open).
All of our staff will be fully licensed and compliant with local and regional regulations. In (area) salon staff are required to have (describe specific licensing required) , and this will be a hiring requirement for our personnel.
We expect our monthly outlay of expenses to approximate to the following:
[Sender.Company] will be run primarily by [Sender.FirstName] [Sender.LastName] who has extensive industry experience and is fully equipped to run a salon business. (Go into additional detail here).
(Add more biographies for other business owners or key management personnel here)
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FREE 18+ Salon Business Plan Templates in PDF | MS Word
Planning to start a business is a task that a lot of people fail to do and this is actually where their business fails. In other words, without a business plan, a new business is already aiming for failure even before it has started. Writing a business plan is one of the primary things that a business must prepare when starting a business, especially when it wants to achieve success.
Salon Business Plan Template Pdf Word
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Salon Business Plan Template
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Hair Salon Sample Business Plan
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Regardless of what type of business you are planning to start, you will still need a business plan. So if you want o to start a salon business, then you will need a salon business plan. This is our featured topic in this article. We will get to know what a salon business plan is, what its uses are and how to successfully open a salon business. Sample business plan templates are provided below for your reference.
Beauty Salon Business Plan Sample
Mobile Hair Salon Business Plan
Size: 182 KB
Spa and Salon Business Plan Template
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What Is a Salon Business Plan?
A salon business plan is a document where all the details about a salon business plan are written, which includes what the business is all about, what are its goals and objectives and how it plans to operate. A salon business requires a business plan regardless if it is a small business or a big business.
With the use of a business plan, a salon business can easily prepare and plan for the necessary tasks needed in starting a business. The business plan is where business owners write down their ideas on the marketing strategies they will be used together with the different methods of implementing the determined strategies plan .
Nail Spa Business Plan
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Size: 62 KB
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Size: 30 KB
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Size: 25 KB
One’s knowledge about the business and their expertise in the market can be shown on how well the business plan is laid out and written. A well-written business plan helps the business prepare and plan for any identified problem that the business may come across in the future. You may also see Simple Business Plan
A business plan is also considered as a road map which determines the direction the business must take. You may also check out other related articles, like Farm Business Plan Template , Boutique Business Plan Template , and Coffee Shop Business Plan Template .
Editable Spa Salon Business Plan
Size: 198 KB
Blank Business Plan Template
Size: 226 KB
Simple Business Plan Template
Size: 33 KB
How to Successfully Open a Salon Business Plan?
It’s not just about opening a salon business or any other business, but it’s about successfully opening and managing the business that matters. Now if you are one of those individuals who want to start a salon business of their own, here are some simple steps that will definitely help you. You may also see Professional Business Plan
Step #1: Do research.
Before you actually go into battle, you first need to equip yourself with knowledge and a lot of information about the business industry you are trying to get into. This is how you will be able to prepare for what is ahead of you once you start to make your actual move. Thorough research and a lot of data gathering is necessary in order to help you prepare. You may aslo see Massage Therapy Business Plan
Step #2: Make a business plan.
After getting the needed equipment, the next step would be to arrange the information that you have gathered and put your ideas into writing. So the next step would be all about making your business plan . Business plans need to be detailed and must describe everything about the business. You may also see Marketing Business Plan.
Step #3: Gather funds or look for investors.
One of the known uses of a business plan is to attract the attention of the readers so that they would want to know more about the business. That is why it is important that you write a persuasive business plan. This way you can easily look for investors and gather the funds needed for your business.You may aslo see Product Launch Plan
Step #4: Create an accounting and inventory program.
For this step, you will need a professional accountant to help you take care of and manage the accounting side of our business. If you are earning money and you are serious about your business, the most practical thing to do is hire an accountant. You don’t want to manage your business and do the accounting tasks at the same time. You may also like Weekly Planner Samples
For keeping track of your business stocks and needs, you will need an effective inventory program. Aside from keeping track of what you have and what you need an inventory program will help you determine how much your business is spending and how much it is earning. You may also like Retail Business Plan
Step #5: Find your business location.
Finding a business location is another difficult task for business owners. You can’t just randomly open a business because the location is available or somebody sold a property at a very cheap price. They may be one of the reasons for starting a business in that place but they are never best reason. Study the location first and see to it that it is fit for doing your salon business. You may also see Professional Business Plan
Step #6: Hire people.
Determine how many people you need to hire for your business. For a salon business, you will need people who knows how to do hair and make up, nails, haircut, etc. Remember to hire just the right number of people. Hiring too many people may lead you to pay more than you are earning, while hiring too little people may also decrease your income. Also, hiring too little people may be interpreted as providing poor customer service by your customers. You may also see Photography Business Plans
Step #7: Monitor regularly.
Lastly, regularly monitor your business. This way you will be able to know what is happening and find out what things you need to improve on as a business. Making continued improvements in your business will help you succeed.
Other related articles you find useful are Travel Business Plan Template , Business Plan Profit and Loss Template , and Lean Business Plan Templates .
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Free Download: Salon & Spa Business Plan Template
Mission Statement Immediate purpose of your salon & spa business and goals within the next year.
Executive Statement Include goals, value proposition and divide your statement into sections of opportunity, financial expectations, and intentions. Customer Analysis Identify the target audience in your market and what services to best suit.
Competitor Analysis Identify competitors and what their strengths and weaknesses are
Business Description Detail of type of Salon and/or Spa (services, products)
Advertising Plan Ensure your salon & spa is listed in online directories, create a website or a mobile application, and social media.
Financial Plan 5-year Financial Statement broken out monthly, quarterly, and yearly profit and loss statement, Balance Sheets, Cash Flow Statement
Complete Guide: How To Open a Salon & Spa
How to Create a Business Plan for Your Salon & Spa Registering Your Salon & Spa, Applying for Permits, and More How Much Does it Cost to Open a Salon & Spa What Software Do You Need for Your Salon & Spa
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23+ SPA & Salon Business Plan Templates – Google Docs, MS Word, Apple Pages
A Spa can be defined as a place that deals with the overall well being of a human being by stimulating the working of muscles through the process of massages. As a real image of the firm venture, the spa plan and salon business plans are the right tool you can use, as it gives an overview of the worthiness of the venture.
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Create a Spa Business Plan in 5 Steps:
Step 1: goals and objectives, step 2: target audience, step 3: budget, step 4: marketing strategies, step 5: miscellaneous additions, beauty salon marketing plan template.
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General faqs, 1. what is a business plan, 2. define the main purpose of a business plan, 3. what are the types of business plan.
- A startup business plan
- An internal business plan
- A strategic business plan
- A feasibility business plan
- Operations plan
- Growth business plans.
4. Give the elements of a Business Plan?
- the executive summary
- and objectives
- the competitive analysis
- description of your product and service
- the marketing and sales strategy
- the budget, etc.
5. What is the fare estimate for a Spa and Salon Business?
More in plan templates.
11+ FREE & Premium Salon Business Plan - Download NOW
Beautifully Designed, Easily Editable Templates to Get your Work Done Faster & Smarter.
Are you planning to open a hair salon, beauty salon, nail salon, or spa? Then you'll need a salon business plan. Download a free helpful template here and
Your hair and beauty salon business plan doesn't need to be hundreds of pages—keep it as short and concise as you can. You'll probably want to include each of
Sample from Growthink's Ultimate Hair Salon Business Plan Template: [Company Name] competes against small, individually owned hair salons and barber shops, and.
[Company Name] competes against small, individually owned hair salons and barber shops, and against major regional or national chains. There are
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.
How to Successfully Open a Salon Business Plan? · Step #1: Do research. · Step #2: Make a business plan. · Step #3: Gather funds or look for investors. · Step #4:
Jan 9, 2020 - Hair Salon Business Plan Pdf Unique 21 Spa & Salon Business from salon business plan template free, image source: pinterest.com.
Mission Statement Immediate purpose of your salon & spa business and goals within the next year. Executive Statement Include goals
Put Your Cosmetology and Barbing Expertise to Good Use by Starting a Hair Salon, Nail Salon, or Beauty Salon! Start Planning for It Using Our Free Salon
Give a top-notch service in your beauty salon with the help of this expertly designed salon business plan template that is mentioned above. It's convenient