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How to Write the Perfect Salon Business Plan in 6 Steps

Discover how to craft a winning salon business plan in just six steps! Boost your salon's success with expert tips, market analysis, and strategy insights.

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As a salon owner, having a well-thought-out business plan is essential to the success of your business. A salon business plan outlines your business goals, market analysis, marketing strategies, financial projections, and other key details, serving as a roadmap that guides you through the process of starting, running, and growing your salon. In this article, we’ll go over the key elements of a salon business plan and provide tips on how to write the best business plan for salons in 2023.

How Much Does It Cost to Run a Salon? 

Before you start writing a salon business plan, it’s important to get an idea of the startup and ongoing costs. As we discuss in this article , the costs of starting a salon range from $62,000 for an existing salon to $90,000 for a new operation. With some of the expenses, you’ll incur one-time costs – other expenses will be ongoing such as supplies and inventory. Here are some of the typical costs associated with starting a salon: 

Existing Salon 

When you buy an existing salon, be it a hair salon or nail salon, you save on the costs of buildout, salon equipment , and salon marketing, assuming the salon already has some of these elements in place. Here’s what you can expect to pay for the following:

• Rent deposit: $4,500
• Buyout of current salon: $10,500
• Leasehold improvements: $15,000
• Equipment: $10,000
• Initial supplies: $8,000
• Initial inventory: $4,000
• Certifications and licenses: $4,000
• Marketing: $5,000
• Legal or consulting fees: $1,000

Grand total: $62,000

The upfront costs of building out a brand-new salon, marketing it to local clients, and getting the business up and running will likely exceed those of buying an existing salon. Here are the typical expenses you can expect to incur for a new salon:

• Buyout of current salon: $0
• Leasehold improvements: $35,000
• Equipment: $25,000
• Marketing: $8,000

Grand total: $89,500

You may also want to budget for the following:

• If you need a loan or financing to cover startup costs, expect to pay interest rates of 1.25% to 10%.
• Salon insurance ranges from $50 to $1,000 per month.
• Salon booking software and a point of sale (POS) system range from free to $500 per month. GlossGenius starts at an industry-low $24 per month with low payment processing fees and includes a website, a branded card reader, and other extras.
• A salon website can cost you thousands, but with GlossGenius, it’s included free! Beautiful and customizable, your website is packed with scheduling features and is easy to navigate, helping to increase bookings and future appointments.

How Profitable Is Owning a Salon?

If you owned a salon during the pandemic, no doubt you experienced your fair share of struggles between lockdowns, closures, and reduced business hours. According to Statista , the U.S. market size of beauty salons dropped from $69 billion in 2019 to $42.3 billion in 2020. Fortunately, things are beginning to look up for hair, skin, nail, and other types of salons, with the market valued at $53.6 billion as of 2022.

You can take advantage of the comeback by approaching your salon startup with a solid plan in place, a realistic budget, and a marketing strategy. A beauty salon business plan can help you identify any questions , opportunities, and potential roadblocks so you can have the best chances of getting funding, earning a return on your investment and achieving profitability. The more you control your expenses and market your business successfully, the more profitable you will be – so be sure to take your time creating a salon business plan for your needs.

6 Steps to Writing a Hair Salon Business Plan

The business plan is the most important document for any salon owner. It’s a formal, written plan that describes the future of your business and how you intend to achieve it. A good business plan will help you stay on track, get funding if you need it, and avoid costly mistakes as you navigate through choppy waters in this industry. 

We know what you’re thinking – that a business plan is a monster of a document that will take a ton of time to create. But, it doesn’t have to be. In fact, you can pare it down to one page and still have an effective, clear document that outlines everything you (and any other interested parties) need to know about your new salon. Below are six steps to writing a salon business plan that will ensure your success.

Here are six steps to creating your salon business plan:

• Create an Executive Summary
• Map Out Your Branding Vision
• Research Your Industry
• Create a Client Acquisition Strategy
• Management and Operations
• Financial Planning

Let's dive deeper into each one.

1. Create an Executive Summary

The executive summary is the first section of your business and management plan and provides a brief overview of your salon business. This section should include your mission statement , business objectives, target market, products and beauty services, and financial projections. It should be concise, engaging, and compelling to grab the attention of potential investors, lenders, or partners. It also serves to clarify your goals so you can come back to them anytime you need a refresher or wish to update this information.

Your executive summary is just that: a summary. This means you do not have to get into every detail in this section; you’ll provide a more complete analysis in the individual sections of your business plan. Here are some key elements to include in the executive summary:

• An opening “hook.” The first sentence or two of your executive summary needs to draw in the reader; otherwise, your business plan might not get the attention it deserves. Grab your audience’s attention by sharing a compelling fact about your company, a memorable story related to your industry, or some other well-crafted description of your business that will make your business plan stand out.
• Summary of your business. Describe what your company does, what services and products you will offer, who will run the company, and other high-level details.
• Market analysis. Briefly describe the market landscape for your own salon to show there is a proven need for your services. Be sure to address who your competitors are, any advantages you have compared with others, and any research you’ve conducted to demonstrate there is a demand for your services in the area. 
• Products and services. Highlight the specific services your salon will offer, any products you will sell, and any other information showing that your salon will fill the need you’ve described in your market analysis summary – and how you’ll do it better than the competition.
• Financial information and projections. Give your reader an overview of your business financials, including any current sales and profits, the funding amount you’re looking to acquire or any funding you already have, and your projections for growth.
• Future plans. Tell your reader exactly how you plan to use any funds you acquire and how their investment could pay off. Imagine where you want your business to be in a year, five years, and so on. Make it clear how funding will help you get there.

2. Map Out Your Branding Vision

Branding isn’t just about creating a unique identity for your business; it’s also about helping people connect with that identity and remember your name anytime they need your services. Branding helps both current clients and new customers recognize who you are and why they would want to seek out your salon. In your business plan, be sure to map out your branding vision by including:

• A description of your salon business. Describe who you are and what you do.
• Your mission and vision statement. Briefly summarize why your salon should exist, its primary objective, and how you plan to achieve your goals.
• An overview of your products and services, your pricing strategy, and any unique features or benefits that differentiate your salon from others in the market. Discuss the specific services you will offer and their price points, plus any product lines you will carry, such as hair care products, makeup, or skincare.
• A description of the target audience and customer demographics. Include relevant research on your market and the people who will buy what you’re offering.

3. Research Your Industry

This section should include a market analysis that provides an in-depth look at the salon industry, including trends, customer demographics, competition, and opportunities. It should also identify your target market and describe how you plan to reach them. This section should demonstrate your knowledge of the market and your ability to capitalize on it, with details on:

• The industry and trends. Provide an overview of the salon industry with relevant statistics, especially those that pertain to your area of expertise and geographic location.
• Your competition. Conduct a competitive analysis to gain insights into your competition, their marketing strategies, and the services and products they offer. The goal is to show how you will capture market share using stronger business strategies that set you apart from your competitors.
• Market segmentation. With market segmentation , you break down a larger target market into a smaller group of customers you plan to serve. Demographics such as age and income, geographic location, lifestyles or psychographics, and behavioral factors like price sensitivity or product loyalty are just a few approaches to market segmentation that you can consider for your business plan.
• SWOT analysis. The SWOT analysis is a way to assess your strengths, weaknesses, opportunities, and threats. It's an effective method for identifying your business strengths and weaknesses as well as external factors that may affect the success of your salon business.

4. Create a Client Acquisition Strategy

The client acquisition section of your salon business plan should describe how you plan to attract and retain customers as a hairstylist . It should outline your advertising and promotional strategies, such as social media marketing , SMS marketing , email marketing, and referral programs. This section should also discuss your sales strategy, including how you plan to increase sales and generate revenue.

• Description of marketing channels and tactics . Outline the different channels you will use to generate leads, such as social media, blog articles, emails, and text messages. 
• Sales forecasting and projections. Discuss how you will convert leads into clients, nurture them through the pipeline, and retain a loyal clientele. Include a realistic estimate of the quantity of goods and services you can sell within the forecast period (for example, monthly, quarterly, and annually). For a salon business, it’s helpful to determine the customer lifetime value of your typical client as well as the customer acquisition cost. You can then break down this number for the forecast period to determine the costs and sales projections.
• Customer acquisition and retention strategies. Include which strategies you will use and the associated costs, such as pay-per-click (PPC), search engine optimization (SEO), and paid ads on social media. Describe how you will retain customers – for example, through loyalty programs and responses to feedback and reviews on social media and Google. ‍
• Pricing strategy. It’s critical that you price your services and products competitively to drive revenue and profits. Detail the pricing strategy you plan to implement based on your buyer persona and competitive analysis. The strategy could be based on a variety of factors, but geographic location and local competition will likely be the biggest factors dictating your salon pricing strategy.

5. Management and Operations

The management and staffing section of your salon business plan should describe the organizational structure of your salon, including the roles and responsibilities of each staff member. It should also discuss your hiring and training practices, employee benefits , and compensation plans. This section should demonstrate your ability to attract and retain a skilled and motivated team, with information on your:

• Organizational structure. Spell out who runs the show and who reports to whom.
• Management team and staff. If you plan to hire a manager , look for someone who has experience in the industry and understands what it takes to run a salon. This person should also have good people skills and be able to work well with others.
• Business operations and processes. Consider which other support personnel you will need, such as an accountant and a dedicated marketing specialist. Don’t be a hero; you can’t do it all alone. ‍
• Legal and regulatory requirements. Include information on any legal advice you will employ to stay compliant with local, state, and federal guidelines.

Note that with GlossGenius, you can manage your team and collaborate with them to make your operations run more smoothly. Our software helps you delegate, mentor, and partner with others based on customizable permissions that let you grant as much or as little access as you wish. Easily manage your scheduling, booking, commissions, and reporting from one intuitive dashboard.

6. Financial Planning

Financial planning is a crucial section to include in any salon business plan. A cash flow forecast shows the anticipated amount of money coming into the business, as well as what you will spend on expenses. It also projects growth over time, which allows you to make predictions about future revenue and expenses so that you can better plan for them in advance.

The best way to get started with your financial projections is by creating an income statement (also called a profit and loss statement), which breaks down all income sources by category (e.g., retail sales and commissions), along with their associated costs (e.g., salaries). This will help provide insight into where your profits are coming from as well as areas where they could improve. Here are some key areas to cover in your salon business and marketing plan:

• Revenue and expense projections. Your revenue projections should consider the number of clients you expect to serve, as well as the average price per service. Your expense projections should reflect all costs associated with running your salon, such as utilities, rent, and supplies.
• Capital requirements and funding sources. Detail how much money you need to start and run your small business, including all costs associated with opening the salon. Describe the funding sources that you intend to use for starting your salon business, whether from personal funds, salon loans , or investors.
• Break-even analysis and profitability projections. A break-even analysis is a financial tool that shows how much revenue you need in order to cover your fixed costs (rent, utilities, etc.) and variable costs (such as salons supplies and staff wages). Profitability projections show how much profit you expect from your salon business for each year of operation. This is based on your estimates of revenue and expenses. You can use this information when seeking funding from investors or lenders.
• Financial ratios and metrics. A financial ratio is a measurement of the relationship between two numbers, usually expressed as a percentage or a fraction. For example, the working capital ratio compares your current assets to liabilities; this metric allows you to measure liquidity. Include the appropriate ratios and metrics in your business to demonstrate your company’s financial health.

A well-written salon business plan is essential for the success of your business. It provides a roadmap for achieving your business goals, attracting investors, and securing funding. By following the tips outlined in this article, you can write the best business plan for your salon and ensure your salon’s success!

As you’re creating your salon business plan, remember to start your free trial with GlossGenius and give yourself the best chances for success. From salon management to payment processing, we’ve got your new salon covered – making it easier to get up and running sooner rather than later.

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Hair Salon Business Plan

Cutting and styling hair is an art not many are adept with.

After all, it takes more than artistic talent to give cuts that suit different hair. And if you are someone who has this talent, then you might have thought of having your hair salon business.

Having your hair salon business is possible and just requires two things for success. That is, skills to make people’s hair look pretty and a hair salon business plan .

Here are a few facts about the hair salon industry and steps to setting up your business. But at the same time, the prospect of having a business is overwhelming to many of us. You don’t need to worry, though!

Industry Overview

The spa and salon market stood at an impressive value of $138.9 billion in 2020, and as people continue to return to salons after the pandemic, the market’s value is expected to rise at a higher rate.

The rise in personal care and beauty spending is one of the major reasons for the growth of the hair salon industry.

Apart from beauty purposes, hair salon businesses have also seen a rise due to the increasing demand for hair care services.

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Things to Consider Before Writing a Hair Salon Business Plan

Find your usp.

A hair salon gives several services including cutting, coloring, styling, and hair care. Apart from that, your customer service, prices, and a lot of other things make your services a package deal for your customers.

But out of everything that makes up your business, you have to do something that you do differently or better than your competitors. This would help you stand out and become memorable to your customers.

Build your client base

Although this is an ongoing process, getting a head start with building your client base is essential. Know what sources you can use to reach out to your clients, what makes them pick a hair salon service, what makes them come back, and so on.

Knowing these things gives you an edge over businesses that dive right in without an action plan.

Find the ideal location

The ideal business location will be both accessible and functional. A good location for a hair salon would be either located in a busy neighborhood or a place that people frequent between home and work.

A good location makes accessing your services more convenient and hence more in demand.

Design your salon for both form and function

Although, it is advisable to hire a designer to design your salon in a way that is functional and also looks appealing. But cash crunches, startup costs, and whatnot might leave lesser scope for a designer in your budget.

In such a case, you can design your salon with the help of catalogs, outside inspiration, and your creativity to make it as functional as possible and build upon and redesign it as your business grows.

Writing Your Business Plan

If you are planning to start a new hair salon business, the first thing you will need is a business plan. Use our sample hair salon business plan created using upmetrics business plan software to start writing your business plan in no time.

Before you start writing a business plan for your new hair salon business, spend as much time as you can reading through some samples of hair and beauty salon business plans .

Reading some sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample hair salon business plan for you to get a good idea about how perfect a hair salon business plan should look and what details you will need to include in your stunning business plan.

Hair Salon Business Plan Outline

This is the standard hair salon business plan outline which will cover all important sections that you should include in your business plan.

• Business Overview
• Our Services
• Goals and Objectives
• Keys to Success
• Katarzyna Doe
• Legal Business Description
• Hiring Plan
• Products & Services
• Market Trends
• Target Market
• Market Analysis
• Customer Profile
• Competitive Summary
• Competitive Advantage
• Sales & Marketing Strategy
• Sources of Income
• Sales Forecast
• Pricing Strategy
• Publicity and Advertising Strategy
• Personnel Plan
• Startup Costs
• Important Assumptions
• Profit & Loss Projections
• Balance Sheet Projections
• Cashflow Statement
• Business Ratios

After  getting started with Upmetrics , you can copy this hair salon business plan example into your business plan and modify the required information and download your hair salon business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

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

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

Download a sample hair salon business plan

Need help writing your business plan from scratch? Here you go;  download our free hair salon business plan pdf  to start.

It’s a modern business plan template specifically designed for your hair salon business. Use the example business plan as a guide for writing your own.

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• February 27, 2024

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

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

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

1. Create your mission and vision statement

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

Mission vs. vision statements

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

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

Mission Statement

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

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

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

Vision Statement

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

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

2. Know your market

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

Recognize your target audience

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

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

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

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

Conduct a market analysis

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

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

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

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

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

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

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

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

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

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

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

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

4. Draft your salon’s executive summary

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

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

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

What to include in your executive summary

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

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

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

5. Write your salon’s unique business description

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

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

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

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

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

6. List your products, services, and prices

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

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

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

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

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

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

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

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

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

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

8. Define your marketing and outreach strategy

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

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

Build a website

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

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

Invest in social media marketing

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

Studies Show

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

Establish rapport and build customer loyalty

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

8. Get your finances in check

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

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

Income statement

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

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

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

Balance sheet

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

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

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

Cash flow statement 

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

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

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

10. Plan for the future

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

Salon business plan template

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

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

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

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

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

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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.

500+ business plans and financial models

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?

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.

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Salon Business Plan Sample

FEB.11, 2015

Beauty salon business plan for starting your own salon service

People like feeling good about themselves, and a salon business can help them to achieve that. The Professional Association estimates the salon and spa industry contributes approximately $40 billion annually to the U.S. economy Approximately half the industry is classified as salon business offering mostly hair care services. However, entrepreneurs interested in making a beauty salon business plan have many options as to the variety and level of services offered, ranging from a beauty salon business plan to a full-service spa. Salons can be setup in innumerable ways, so the purpose of the beauty salon business plan  is to pin down the details to improve the chances of long-term success. Planning should always start with identifying the customer. There may be several customer persona’s depending on your target market, people over 50 years old are a very different market to the Gen X clients.

Executive Summary

2.1 the business.

Julia’s Salon will be a licensed and registered salon located near Brookhaven College, Atlanta. The business will be based on providing hair-cutting, styling, coloring, skincare and other services in the salon as well as by going to people’s homes.

2.2 Management

Before starting a salon, it’s essential to make a beauty salon business plan  and enlist major decisions about your start up salon. In this sample business plan for a salon, we’re providing all details of Julia’s Salon ranging from startup expenses to management structure.

The main working structure of Julia’s Salon include hairdressers, makeup artists, expert cosmetologists, and general assistants. Besides them, the beauty salon business plan will hire sales executives, accountants, and web developers.

To ensure efficient working from the first day, the salon will be making all arrangements one week before the launch. Staff will also be hired a week before because the owner of Julia’s Salon wants to assess staff herself.

2.3 Customers

Our major customers will be the young and adult men and women of our society. Besides them, senior citizens and teens are also expected to avail our services.

2.4 Business Target

Our target is to become the most renowned salon in our vicinity and to establish an average repeat customer rate of 60% by the end of the first year.

Company Summary

3.1 company owner.

Julia’s Saloon will be owned by Julia Fox. Julia is a graduate in social sciences. She has taken many courses related to works. After working for three years in Sports Clips she has gained expertise in hair care and styling.

3.2 Why the salon business is being started

Julia has always remained interested in  cosmetics works. It was due to her passion and interest in the industry that she got a job in a top company. As Julia wanted to start a salon she took several courses relevant to the field while she was in her college.

A few months ago she started exploring beauty salon business plan s and finally decided to initiate her own salon to generate profit through a business that is solely her passion. She believes that an exceptional mission statement for a salon can lead her to the success, she is looking for.

3.3 How the salon business will be started

Julia decided to rent a large ground story to convert it into a salon. For writing a beauty salon business plan , she decided to hire a marketing and financial expert.

After acquiring the required licenses and registrations, Julia will purchase the required equipment such as furniture, mirrors, cosmetic tools and accessories, hair styling tools, hair treatment products, and other things.

She has also decided to hire her staff a week before the lauch so that she can assess them and they can understand the beauty salon business plan environment and aims. To facilitate their clients, Julia’s salon will be providing services by going to their homes too. Moreover, the salon will set up a web-based system so that customers can pre-order or pay online.

Services for Customers

Before formulating a beauty salon business plan outline you must finalize which services you’ll be providing your customers because this decision of yours will be affecting the business in the long run.

The services as mentioned in Julia’s Salon business plan are given in detail here.

Our major salon service will comprise of works related to hair. However, we’ll also offer some other services as described here:

Hair Cutting: Our primary service will be cutting the hairs of people of all ages and gender. We’ll hire haircut experts so that every customer will be able to get the look of their desire.

Hair Styling & Coloring: We will hire experts who will be able to make several hairstyles according to the customer’s looks and desires. Moreover, we’ll also provide services like hair coloring, highlights, color blending, hair shadowing, etc.

Makeup Services: We will provide makeup services for parties and usual events.

Hair & Skin Care Services: Our third major service will be providing hair treatments such as Fusio-Dose and protein treatment. Moreover, we’ll also be offering services in skincare and treatment like manicures, pedicures.

Salon Marketing Analysis

Before you start a salon you must know what are objectives of a salon business plan . Generally, the aim is to satisfy your customers by enhancing their looks, and that is only possible when you have studied the market and market trends thoroughly.

Before finalizing your beauty salon business plan template , you must research on what are the traditions, norms and modern fashions that are arising in your target market. Only then you will be able to recognize customers’ demands and decide what aspects to include in your beauty salon business plan to meet the expectations of your customers.

5.1 Market Trends

Hair salons are one of those businesses that are flourishing in the market for a long time. Currently, 972,000 such businesses are running in the United States. According to the IBISWorld report, the business has seen a 1.4% growth rate over the period of the last five years. The industry is responsible for employing more than 1,352k people and has generated a revenue of $47bn in only 2019. To summarize, the salon business plan has a lot of potentials and can be extremely profitable if you plan it accurately.

5.2 Marketing Segmentation

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Young & Adults: Our first target group will be young adults between 18 and 35 years of age. The people of this age run after the latest fashions and styles. That’s why we’ll be coming up with hairstyles, coloring and makeup techniques that are popular in people of this age group.

5.2.2 Senior Citizens: Our second target group comprises of citizens above 35 years of age. Since such people are interested in acquiring decent looks while following their norms and traditions thus we’ll be carrying out research to provide services of their interest.

5.2.3 Teens & Kids: Our third target group is expected to be accompanied by other target groups. For this group, we’ll be providing hairstyles and services that are liked by children and teens.

5.3 Business Target

• To balance startup expenses by earned profits by the end of the first fifteen months
• To achieve the net profit margin of $10k per month by the end of the first year
• To maintain customer repeat rate of 60% by the end of the first year
• To maintain an average rating of 4.6 by the end of the first year

5.4 Product Pricing

Our prices will be in the same ranges as that of our competitors, however, to get introduced to a wide group of people we’ll be offering several discounts in the first three months.

Marketing Strategy

Excellent preparation of business plan ….

Excellent preparation of business plan reporting and timing of all deadlines. I am extremely satisfied with the services. Thank Alex for all your excellent work.

This section should describe how you are going to find your ideal client and make sure they become aware of your products and services. Once you have found your clients, how will you attract and retain them? If you have a bricks-and-mortar business, is the location good for your type of clients? Does your ideal client read traditional printed advertising or are they more focussed on digital marketing? If online is important, describe the process your clients go through to make a purchase. Is it quick and easy? Starting a beauty salon business plan  will help you to focus on these points.

In this salon marketing business plan for a salon  sample we are providing the competitive aspects of Julia’s Salon as well as the advertising schemes, the salon will be employing to attract more and more customers.

6.1 Competitive Analysis

Our biggest competitive advantage is our top-class service. We’ll use high-quality material with extreme care to serve our customers. Secondly, our staff is expert in their respective domains. Besides, we’re highly customer-care oriented and we’ll always be ready to do unlimited modifications to satisfy our customers. Lastly, we’re providing home services because senior citizens usually want to have such tasks done at their own homes.

6.2 Sales Strategy

• We’ll ensure a strong web presence
• We’ll advertise us through Facebook and Instagram
• We’ll get featured in magazines and local newspapers
• We’ll offer a 20% discount on hair treatment services for the first month

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

To get an idea of how much you’ll need to spend on your business plan for a salon , you must first create a list of salon equipment with price and a list showing your employees, their job responsibilities and salaries.

7.1 Company Staff

Julia will manage the salon herself and hire the following people

• 1 Accountant to take financial records
• 1 Sales Executive to carry out the company’s sales business strategy plan
• 5 Hairdressers/Hairstylists/ Hair Coloring Experts to do clients hair
• 2 Makeup Artists to do client’s makeover
• 1 Cosmetologist to do with hair and skin treatments
• 2 Manicure/Pedicure Specialist
• 4 General Assistants to carry out general tasks
• 2 Drivers to provide transport
• 1 Web Developer to manage company’s sites
• 1 Customer Representative to receive customers

Financial Plan

The last step before starting your salon is to craft a detailed map showing and analyzing the investment group business plan for salon, costs of equipment, payrolls, taxes, and other expenses. A financial plan for a salon business plan must contain all the financial statements, details of projected profit and loss and measures to achieve estimated profits.

We’re providing a sample of Julia’s financial plan for anyone who wants to benefit. However, it is highly recommended to seek help from a financial advisor to have an accurate financial plan according to your figures.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Download Beauty Salon Business Plan Sample in pdf

OGS capital professional writers specialized also in themes such as eyelash extension business plan , business plan for a nail salon , nail polish business plan , tanning salons business plan , tattoo shop business plan , laser hair removal business plan and many others.

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It's Your Business has Pam Buoy and Ben Hart

Pam Buoy has joined the staff at i.h.s. salon also known as Indian Hills Styling Salon, 5642 SW 29th St. in Barrington Village Shopping Center. She is a graduate of the former Trousdale Barber College in Shawnee, Oklahoma, with 34 years of experience and was previously employed at Super Cuts. Buoy specializes in straight razor shaves, scalp massages, conditioning treatments, facial waxing and haircutting for men, women and children. She has attended additional training and specializes in razor cutting techniques. Buoy also offers perming, coloring and highlighting services.

The city of Topeka announced the appointment of Ben Hart as its interim chief financial officer, effective April 16. With over 25 years of experience in the public sector, Hart brings extensive expertise to the role. As a Certified Public Accountant and Chartered Global Management Accountant, he serves as a director with Baker Tilly and previously held key positions in resource management for large municipalities in the Kansas City metropolitan area. Hart’s dedication to public service is evident through his active involvement in the Kansas and Missouri Society of CPAs, where he contributes to the governmental accounting committee and the Government Financial Officers Association at both national and local levels. Interim city manager Richard U. Nienstedt said, “Mr. Hart’s experience and dedication to public service will serve Topeka well as the city transitions into new leadership with the next city manager.” Hart’s tenure will continue until a permanent replacement is found.

Topeka-area hirings, promotions, retirements and other announcements can be emailed to [email protected].

How to Start a Salon Business

Starting your own salon business is a great way to make money and control your destiny. This article covers how to start a salon step by step, including what you need to do before opening your doors for business so that when the day comes, you’ll be able to jump right into making money.

This article covers how to start a salon step by step, including what you need to do before opening your doors for business so that when the day comes, you’ll be able to jump right into making money.

Importantly, a critical step in starting a salon is to complete your business plan. To help you out, you should download Growthink’s Ultimate Salon Business Plan Template here .

Download our Ultimate Salon Business Plan Template here

15 Steps To Start a Salon Business:

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

1. Choose the Name for Your Salon Business

The first step to starting a salon is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your salon:

• Make sure the name is available: Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple: The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing: Come up with a name that reflects the desired brand and/or focus of your salon business.

2. Determine the Type of Salon Business You Will Launch

The next step is to determine the type of salon business you will launch. The four main types of salon businesses are:

• Hair Salon: : A hair salon primarily focuses on providing a range of hair-related services such as haircuts, hairstyling, hair coloring, hair extensions, and treatments. Hair salons cater to both men and women and may offer additional services like scalp treatments, blowouts, and specialized haircare products.
• Nail Salon: A nail salon specializes in nail care services, including manicures, pedicures, nail art, acrylic or gel nail enhancements, and nail treatments. These salons often offer a variety of nail polish colors, designs, and techniques to enhance the appearance and health of clients’ nails.
• Spa Salon: A spa salon offers a broader range of services, including skincare treatments, massages, body treatments, facials, and relaxation therapies. These salons aim to provide a holistic experience focused on relaxation, rejuvenation, and overall well-being.
• Beauty Salon: A beauty salon is a comprehensive establishment that offers a combination of various beauty services. In addition to hair and nail care, a beauty salon may provide services such as makeup application, waxing, eyebrow and eyelash treatments, and skincare. Beauty salons aim to provide clients with a complete range of beauty enhancement options.

3. Develop Your Salon Business Plan

One of the most important steps in starting a salon business is to write a salon business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

To enhance your planning process, incorporating insights from a  sample salon business plan  can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your business plan should include the following sections:

• Executive Summary: This section should summarize your entire business plan so readers can quickly understand the key details of your salon business.
• Company Overview: This section provides the reader with information about the background of your salon business and the specific type of salon services you offer. For instance, do you specialize in hair salon services, nail salon services, spa and relaxation treatments, or a comprehensive range of beauty services.
• Industry Analysis: Here you will document key information about the salon industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis: In this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing the services like the ones you will offer?
• Competitive Analysis: Here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan: Your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your salon business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan: Here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team: This section details the background of your company’s management team.
• Financial Plan: Finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your salon business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

4. Choose the Legal Structure for Your Salon Business

Next you need to choose a legal structure for your salon business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the salon business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a salon business together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a salon business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a salon business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your salon business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

5. Secure Startup Funding for Your Salon Business (If Needed)

In developing your salon business plan, you might have determined that you need to raise funding to launch your business.

If so, the main sources of funding for a salon business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a salon business that they believe has high potential for growth.

6. Secure a Location for Your Business

Having an appropriate space holds significant importance for your salon business.

To discover the perfect location, consider the following steps:

• Exploring various neighborhoods while keeping an eye out for “for lease” indicators.
• Getting in touch with a commercial real estate agent specialized in retail spaces.
• Conducting online searches focused on commercial real estate options.
• Sharing your requirements with your contacts and checking if anyone within your network has valuable connections to assist you in securing the ideal salon space.

7. Register Your Salon Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

8. Open a Business Bank Account

It is important to establish a bank account in your salon’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

9. Get a Business Credit Card

You should get a business credit card for your salon business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

10. Get the Required Business Licenses and Permits

To establish a salon business, you typically need several licenses and permits to ensure legal compliance and operation. The exact requirements can vary based on your location and the services you intend to offer. However, here is a general list of licenses and permits you may need:

• Business license – You need to register your business with your state and local municipality. Requirements vary but generally you’ll need to provide your business name, address, owner’s name, etc.
• Salon license – Most states require a special license to operate a salon. This involves submitting an application, paying a fee, and passing an exam on salon practices and regulations.
• Cosmetology licenses – Stylists need to be licensed cosmetologists in the state where the salon is located. This requires completing a certain number of training hours (often 1,500+ hours) and passing written and practical exams.
• Building permits – If you’re constructing or renovating your salon space, you’ll need permits for the construction work being done. Requirements depend on where you’re located.
• Sales tax permit – You need to register with your state department of revenue to collect and remit sales tax. You may also need a local business tax license.
• Insurance – Salon business insurance is highly recommended to cover liability, property damage, etc. Make sure your policy meets your state’s minimum requirements.
• Health department license – Most states require salons to have a health/sanitation license demonstrating you meet safety and cleanliness standards. An inspection is usually required.

So in summary – business license, salon license, individual stylists’ cosmetology licenses, building permits if renovating, sales tax permit, business insurance, and health department license are typical requirements to operate a hair salon legally. Check with your state and local government for specifics.

11. Get Business Insurance for Your Salon Business

Operating a salon business comes with potential risks, and having the right insurance coverage is crucial to protect your business, assets, and clients. Here are some types of insurance you may need for your salon business:

• General liability insurance – This covers any injuries to customers or damage to property that occurs in your salon. It protects you in case of slip-and-fall accidents, injuries from services, equipment damages, etc. Liability limits of $1 million per occurrence are common.
• Professional liability insurance – Also called errors and omissions insurance, this covers negligence claims if a stylist damages a client’s hair or scalp during a service. Limits of $1 million are typical.
• Workers’ compensation insurance – Required in most states, this covers medical bills and lost wages if an employee gets injured on the job. Rates vary based on salon size and location.
• Property insurance – Protects against loss due to damage/theft of your salon equipment, furnishings, inventory, etc. Make sure to get adequate coverage for high value items.
• Business owner’s policy – A BOP bundles general liability, property coverage, and business interruption insurance into one policy. This can be more convenient than separate policies.
• Cyber liability insurance – Provides protection if your salon experiences a data breach, network outage, or if clients’ personal info is compromised.

Check your state’s specific insurance requirements for salons. An insurance broker can also advise on appropriate coverage types and limits based on your operations and risks.

12. Buy or Lease the Right Salon Business Equipment

Here is an overview of some of the basic equipment needed to operate a salon business:

• Salon chairs – Sturdy, adjustable chairs so clients can sit comfortably during services. Often hydraulic or electric.
• Shampoo stations – Specialized sinks and chairs for washing/conditioning hair. Reclining backrests are common.
• Hairstyling stations – Includes mirror, countertop space for tools and products, drawer storage, and chair for client.
• Barbershop stations – Similar to styling stations but may include barber chairs and additional storage for shaving tools.
• Hood dryers – For drying and setting hair. Positioned at individual stations.
• Facial beds – Cushioned tables so clients can lie down for facials, waxing, etc.
• Towel warmers – Heated units keep towels warm for clients throughout the day.
• Salon sinks – Convenient sink areas for stylists to wash tools and hands between clients.
• Point of sale system – Computerized system to accept payments, schedule appointments, and track inventory.
• Disinfection tools – UV sanitizers, barbicide, autoclaves to properly clean and disinfect all implements.
• Hair washing tools – Spray bottles, pitchers, hoses for comfortably washing client’s hair in the sink.
• Storage – Rolling carts, cabinets, shelves to organize products, tools, and supplies.

The specific equipment needs will vary based on services offered, but this covers some of the essentials for operating stations in a professional salon environment.

13. Develop Your Salon Business Marketing Materials

Marketing materials will be required to attract and retain customers to your salon business.

The key marketing materials you will need are as follows:

• Logo: Spend some time developing a good logo for your salon business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website: Likewise, a professional salon business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts: Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your salon business.

14. Purchase and Setup the Software Needed to Run Your Salon Business

Here are some of the key software solutions that are useful for managing and running a salon business:

• Appointment booking software – Allows clients to book appointments online and lets you manage your staff’s schedules. Popular options include Square Appointments, Booker, SalonRunner.
• Point of Sale (POS) system – Ring up sales, take payments, manage inventory. Some popular salon POS systems are Salon Iris, Rosy, Phorest.
• Accounting software – Track income, expenses, taxes. QuickBooks is a common accounting platform for small businesses like salons.
• Payroll software – Pay employees and handle payroll taxes. Examples include Gusto, Patriot Payroll, SurePayroll.
• CRM software – Manage client contacts, appointment history, marketing. Options like Insightly and SlickPie have salon-focused features.
• Inventory management – Track product usage and reorder supplies. Can integrate with POS system. Examples: BeautyTracks, Simplifi.
• Email marketing – Send promotions, announcements, birthday specials to clients. MailChimp is a popular email platform.
• Social media management – Schedule posts and engage with followers on Instagram, Facebook, etc. Hootsuite, Buffer are useful tools.
• Analytics – Measure website traffic, online bookings, sales data. Google Analytics provides good insight.

The right software can help salon owners maximize efficiency, organization, and productivity in day-to-day operations.

15. Open for Business

You are now ready to open your salon business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How Big is the Salon Industry?

The business of beauty and wellness is a fast-growing and dynamic sector in the United States, with over 1.2 million total salon businesses and sales of more than $62 billion annually.

What are the Key Segments of the Salon Industry?

Salons are businesses that specialize in the application of cosmetics to both women and men. Hair salons, nail salons, and skincare treatments. Many salons promote themselves as full-service establishments that provide a wide range of services including haircuts, manicures, waxing, skincare, and tanning.

Hair and Nail Salons

Salons that specialize in hair and nail treatments are perhaps the most common type of salon. Many salons now offer a range of different beauty treatments such as waxing, skincare, manicures, pedicures, tanning, facials, and haircuts to name a few.

Skincare Treatments

There has been a growing interest in skin treatments such as Yon-Ka Oxygene and Oxygen facials, chemical peels, and microdermabrasion. These types of salon treatments can revitalize and rejuvenate your skin, leaving it looking fresh and young.

Facials provide an opportunity to relax while receiving pampering treatments.

Tanning Salons

Salon tanning beds are popular with clients who want to lose or maintain their summer tans. The Tan Co’s Salon Tanning Bed is becoming increasingly common throughout salons today.

Waxing and Skincare Treatments

These services are perfect for women who don’t have the time to do their own waxing and skin care treatments.

Salons provide a wide range of beauty treatments that vary from one salon to another. In addition, services can change rapidly due to new products, changing styles, and increasing demand for certain treatments.

Finish Your Business Plan Today!

What external factors affect the salon market.

There are a number of factors that affect the salon market. Some of these include:

• New Beauty Technology and Products – Beauty salons need to keep up with new technologies such as the Beauty Light Pro-face and body machine which uses lasers to reduce acne scars, wrinkles, and stretch marks.
• Changing Styles – New hairstyles are constantly being created, and skin care trends change frequently.
• Competitive Pressures – Salon owners need to know how much competition they’re up against when setting salon prices, choosing suppliers, and marketing their salon services.
• Changing Demographics – demographics play an important role in who will use your salon’s beauty treatments. Consider the effect of an aging population on demand for skincare treatments, for example.
• Economics – The state of the economy has a major effect on the industry. When the economy is struggling, people tend to cut back on discretionary spending which includes beauty treatments such as haircuts and manicures; however, when the economy is thriving, business tends to thrive as well.

Who are the Key Competitors in the Salon Industry?

Direct competitors in the salon industry are other beauty salons and spas within your geographical area.

In order to attract clients, you’ll need to offer competitive pricing and a range of services that will help differentiate you from the competition. Some ways that you can do this include being open earlier, staying open later, have longer operating hours, having faster service times, providing gift certificates or coupons for future services, being more flexible on price, and providing a more luxurious experience with better seating arrangements and customer bathrooms.

Key competitors of the industry also include manufacturers who produce chemicals, equipment, and other supplies required to run a salon business. In addition, home-based 1:1 beauty service providers such as skincare experts, make-up artists, and waxers should also be considered as competitors to your salon.

There are also a number of indirect competitors that you need to be aware of as well including:

Traditional hair salon services such as those offered by Sports Clips, barbershops, ethnic hair salons, Supercuts, and more. Barber Shops tend to offer more traditional men’s haircuts, but they also offer services that women are looking for such as straight razor shaves.

Traditional beauty salon services such as those offered by nail spas, meditation salons, karate dojos, and more. Meditation or wellness salons provide a wide range of treatments including skincare treatments, reflexology massage, reiki sessions, and more.

These establishments can be a challenge because they are often not considered a “serious” competitor by the typical owner who focuses only on competing against other salons. However, it is important to recognize the threat that these competitors can pose because they may attract customers who would typically come to your salon.

What are the Key Customer Segments in the Salon Market?

Your salon’s key customer segments are women who want to improve their appearance. However, it’s important not to forget men as well. In fact, some salons target men with specific haircuts and grooming treatments.

Beauty salons typically attract two main customer segments:

• Customers who regularly visit salons (e.g., weekly or monthly) for beauty treatments such as haircuts, manicures, pedicures, facials, and skincare treatments. These customers regularly purchase products to maintain their beauty treatments at home.
• Customers who only visit the salon occasionally – usually for specific events such as weddings or proms. These customers purchase a few beauty products a year to maintain their salon-purchased treatments such as those who buy shampoo from the grocery store but regularly go to the salon for haircuts.

Having a clear understanding of your salon’s key customer segments will help you create an ideal customer persona that can be used in the following sections when developing your marketing strategy.

What are the Typical Startup Costs for a New Salon Business?

The typical salon startup costs include the following:

• Physical location – You will need to initiate a lease agreement or purchase your salon’s physical location. The cost for monthly rent may vary greatly depending on the type of salon, its size, and location. For example, if you are planning to open your own hair salon in Los Angeles, California, expect the monthly rent to be $4,000 or more while the average monthly rent for a hair salon in Salt Lake City, Utah is around $700.
• Physical buildout – Most salons require renovation work to make the space look appealing and functional. You will need to update the lighting, floors, paint, wall coverings (e.g., wallpaper or large prints), counters, furniture (e.g., hair salon chairs, manicure tables), and salon equipment (e.g., hairdryers, shampoo sinks).
• Salon Equipment – These include the physical tools you will need to perform beauty treatments such as hairdryers, curling irons, straighteners, combs, brushes, rollers, styling products (e.g., hair spray), makeup, skincare products (e.g., facial creams or oils). You may also need to purchase beauty supplies such as cotton balls, napkins, tissues, disposable cups for beverages.
• Salon Operating Supplies – These are the items you will use on a daily basis in your beauty business while others are used less frequently such as cleaning supplies (e.g., disinfectants, bleach), paper towels, and plastic bags for rubbish.
• Salon Furniture – You will need salon furniture to seat your customers while they receive their beauty treatments. Consider purchasing salon-specific furniture rather than using generic furniture you already own such as dining or office tables and chairs.
• Cash Register – You will need a cash register to keep track of your salon’s revenue.
• Salon Supplies & Inventory – This category includes items that are paid for when they are purchased e.g., beauty supplies, inventory-items you pay only after selling them-and stored in the salon. Examples include shampoo, hair color, ties, headbands, cotton balls, facial washcloths.
• Business Insurance – You will need to purchase at least two types of insurance: salon insurance and general liability insurance (also called business owner’s policy). Ensure you contact an experienced independent insurance agent who can guide you through the process.
• Salon Accounting Software – There are many good salon accounting software options available on the market, but many salon owners use less expensive software such as QuickBooks instead of purchasing salon-specific accounting software.
• Marketing and Promotional Campaigns – Besides advertising, there are many ways you can promote your business including flyers, postcards, social media campaigns (e.g., Facebook ads or Twitter promotions), business cards, coupons, direct mailings.
• Legal and Licenses – You will need to purchase legal documents (e.g., business contracts) and licenses (e.g., tax registration certificate).

When you are trying to figure out how much money you want to start a salon, your main costs will be related to the physical buildout of your salon.

Your rent is one of the biggest expenses for new salons, especially if you are located in an expensive city such as New York City or Las Vegas.

Location is everything in the industry so it’s important to choose your salon location wisely. You don’t want to be in a bad location that scares people away or makes it difficult for them to get to your salon.

Getting salon fixtures is a must if you are building the space from scratch. You will need to get shampoo stations, stylist workstations, reception areas, waiting spaces, etc.

Music and entertainment systems are also necessary parts of your buildout.

Things like nail bars can be added later but it’s easier to get those installed on day one.

You will need to get a general business license and apply for your salon license as well as any other state or city-level licenses that you think you might need.

Salon insurance is also essential to protecting yourself and your assets from business liability.

Your budget will look very different depending on the scale of your salon type and design. It’s important that you do not underestimate the costs when planning for your salon space, but also don’t kill your budget either.

Is Owning a Salon Profitable?

Yes, salon businesses are profitable. Some salons have a list of clients who visit frequently and return for the same services over time, while others need to constantly acquire new clients. To remain profitable, you must ensure that your business meets three criteria:

• Your salon is within an accessible location
• You have a good handle on salon finances
• You purchase salon supplies and equipment at the best price possible.

What are the Keys to Launching a New Salon Business?

If you’ve made it to the decision of opening a salon business, chances are that you have been planning for a long time already. It’s essential to be as prepared as possible before opening your doors.

Below is a list of essentials that every salon owner should look into:

• Salon management software – You need to keep track and organize all data related to the salon.
• Concierge services – These can help you with getting clients in the door. If you have an excellent service that people want, then they will be willing to pay for it.
• Salon website – Your salon website is one of your biggest marketing tools. It should look professional and convey a sense of your own salon brand.
• Business banking – Get a business account and debit card as soon as possible. While you’re at it, set up an automatic payment option like direct deposit and online bill pay to make your life easier.
• Salon insurance – From the salon’s property to employee compensation, you need good coverage for everything.
• Marketing plan – Create a salon marketing plan that will work best for you.
• Quality hair and beauty products – Invest in the best salon products. If your products are top quality, then all you have to do is get them out there and let results speak for themselves.

Be efficient with your time and resources so that you can focus on growing your business.

If you start building strong business relationships with your clients and getting their word of mouth, then new clientele will come to your salon without even needing a marketing plan. Everything comes full circle so make sure to spend effort on each part of the process.

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How to Start a Salon FAQs

How do i turn my salon into a thriving business.

It's time to take your dream of opening your own salon and make it become a reality. Follow these simple guidelines to turn your startup into a thriving salon business:

Build Trust

Before people will trust any service or product being sold by you, they need to know who it is that they are trusting. This means that before starting any kind of advertisement campaign about the launch of your new salon you should work on building relationships with potential customers first. 

You might do this by hosting demonstrations for how hairstyling works at an event near them which could also act as an advertisement for how qualified staff members are. If people are happy to buy your services then they are more likely to spread word of mouth about how great your salon is.

Promote What You are Selling

Once you have people's attention with the product or service that you are offering, it is time to use this opportunity to sell yourself. 

Try promoting yourself through targeted online adverts which will let people who would most often visit a salon know that there is something new in town with your advertisement appearing on websites including social media accounts and others where people who might be interested in visiting a beauty salon might spend their free time. 

This kind of press can go a long way especially if your stylists already have experience working at other successful salons which could potentially give an incentive for more customers to come to try out your salon.

Take on Contract Work

Some local businesses in your industry might only be interested in working with the most successful salons, but there is no reason why you can't prove that you are just as reputable. Try taking on contract work for major hair care brands at the launch of your new business, offering them a deal where they give you their business and in return, you promote their products to your customers. This could be extremely beneficial when trying to recruit new stylists especially if they have experience working under the same brands already. People trust familiar names so having these kinds of big-name companies involved with the wonders of your own work for credibility.

Keep Up Quality

Keeping high-quality standards across all aspects of running a salon is important to keep your loyal customers happy and could also potentially attract larger salons to work with you. After all, the more successful you are at running a high-quality salon the more people will want to come to you for their hair care needs. Make sure that everything from the salon equipment used to how well trained every member of staff is working is like clockwork if you want even bigger companies interested in having contracts with you.

Be Consistent

Your salon brand should be recognized before long as one which always keeps up its promises; this kind of reputation can help generate word-of-mouth advertising rapidly. The name 'Salon X' might not mean much now, but after three years of offering high-quality services, it might be known throughout your city as being a salon that consistently delivers the highest quality services. This kind of brand awareness can be a great help when trying to get more contracts from big-name brands.

How Much Does it Cost to Start a Salon?

It is subjective how much money you need to open a salon but most salons will spend around $300,000 for their buildout. If you want to make sure that your salon is successful, you should be prepared to invest at least 6 months’ worth of your salary as well as the cost of your buildout.

What are the Financial Requirements to Open a Salon?

The financial requirements for opening a salon will depend on how much you can personally invest in your business. Salons generally start with developers that want to get into the salon industry, but then there are also models where salons are franchised or managed by existing salon owners.

Small Business Administration loans - These are available for small business owners that meet certain requirements, but it does require a decent credit score and a history of on-time payments. Read more about how to get an SBA loan here.

Equity financing - This generally requires setting up some sort of contractual arrangement between yourself and investors. The more capital you can provide yourself with, the better.

Business loans - There are a handful of bank options available for small business owners that meet certain requirements to get a loan from a bank. Read more about how to get a business loan here.

Partnerships and collaborations - Depending on your experience in the salon industry it might be possible to find a partner that will invest in your salon/salon business.

The more capital you can bring yourself, the better off you'll be long-term. Make sure to budget accordingly before opening your doors.

How Can I Get Clients in My Salon?

It's one thing to have a new salon and a solid business plan, but you need to make sure that people actually come in and try out your services.

You'll want to think about:

• How will you get the word out there? Social media campaigns, flyers on community boards, direct mailers, etc. Try not to use too much advertising or you'll burn through your budget quickly.
• What's in it for the client? Obviously, you want to have happy, satisfied clients who want to come back. This will be easier if you offer excellent customer service and quality products.
• How much are you charging? If your services are affordable, then people won't think twice to book an appointment. If you offer higher-end services, then make sure to have a clientele base that is willing and able to pay for them.
• Will you offer specials? Offering a special for a limited time is a great way to attract new clients and let them feel how much they can save by booking an appointment with you.
• What will your salon environment be like? Make sure that it's clean, peaceful, and relaxing to help clients feel at home.

There is no magic wand or quick fix for getting new clients in the door of your salon business. It takes hard work and patience but if you can provide quality products and services, then your clients will come running.

How Do I Improve Salon Business Operations?

You want to make sure that every part of your salon's operations runs smoothly from massive production to everyday tasks. Things should run as seamlessly as possible between making appointments, scheduling employees, tracking inventory, and receiving payments. That way life is simple for the owner and managers so they can focus on improving important things such as revenue or cost-efficiency. In order to keep your business up and running, you should also follow these steps.

Make sure that everyone is on the same page when it comes to salon documentation. For example, what information goes into the client record? How are appointments scheduled? What are different appointment types? Make sure that all employees know this information so that there aren't discrepancies in how tasks are carried out or who is responsible for them.

Be flexible with scheduling time off for employees. It makes sense to have set times off, but make sure to be accommodating if they need to reschedule their appointments due to an emergency or personal reasons.

What will your salon's payroll look like? Will you hire freelancers or permanent employees? Keep track of each person's hours worked and time off.

Lastly, you should always be trying to improve your salon business operations so that your salon can run as efficiently as possible. This will leave the owner more time for important tasks such as growing their clientele or expanding services offered.

How Do I Grow My Salon Business?

Growing a salon business is hard work but there are some things you can do to help boost your success rate. If you want to grow a salon business, make sure to:

• Focus on branding . Make sure that people recognize your name and what it stands for. This way they will know exactly what they're paying for every single time they walk through the doors of your salon.
• Promote your salon business through social media platforms . This is a great way to promote new products or services and let people know what's going on at your salon.
• Attend industry events . Make sure that you attend as many beauty conventions, expos, and salon expos as possible. These events are a great place for networking with other professionals in the industry which can be very beneficial to promote your brand name.
• Make as many connections as you can . The more people that know your name, the more likely they are to return for future services.
• Be consistent with your pricing and products . If clients feel like they can rely on you then there is a higher chance that they will return to your salon business time and time again.

Where Can I Download a Salon Business Plan PDF?

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

Additional Resources

American Salon

Beauty Cast Network

Beauty Launchpad

BeautyMark Marketing  

Other Helpful Business Plan Articles & Templates

Woman who plotted to destroy rival nail salon with incendiary device sentenced

The owner of a West Chester nail salon who concocted a plan to destroy a rival salon with a homemade incendiary device told a federal judge Wednesday that she is ashamed and sorry for what she did.

Kim Vu, 46, told U.S District Judge Matthew McFarland that she taught her three children − one works for the FBI, another is in the Army Reserve − to be good people. Vu, herself, also worked as a registered nurse.

"I still don't understand … why it happened," Vu said at her sentencing in federal court in Cincinnati. "I feel guilt. I feel so, so bad."

Assistant U.S. Attorney Timothy Mangan said the plot, which was thwarted when an employee at the rival salon noticed the device and moved it outside, was driven by Vu's animosity toward the salon's owners.

She "acted on hateful feelings," Mangan said. He added that even though the plan didn't ultimately succeed, Vu's crime wasn't any less severe.

McFarland sentenced her to three years and 10 months in prison. Because Vu has health issues and scheduled medical appointments, she will be allowed to self-surrender to prison in mid-July. She pleaded guilty last year to a conspiracy charge.

Plan involved remote device

The plan was being discussed in January 2023 by Vu and 30-year-old Cierra Bishop, a woman she enlisted to construct the device, which was intended to ignite remotely late at night.

In court Wednesday, McFarland read from text messages between the two.

After Bishop texted that it was taking a long time to build because it was wireless, Vu responded: "Dang. You are so talented."

Bishop then texted that the device would be "filled with acetone."

Vu "liked" that text and wrote: "Girl! Trust and wait for me through this yr. I'll help you to own your own business."

Bishop responded: "Making bombs for a living lol."

"Ha ha," Vu said.

McFarland noted that Vu's plan was developed over months and that the device could have killed or seriously injured someone.

"Your conduct lacked empathy and concern for others," he said.

'We are constantly on edge'

The owners of the other salon did not attend the hearing, but submitted a letter, which Mangan read in court. They said they were friends with Vu and couldn't believe she would try to destroy their business.

In the year after the incident, the rival salon saw a more than 30% decrease in business, the letter said.

And, according to the letter, "we are constantly on edge."

On Feb. 5, 2023, Bishop and another woman, Makahla Rennick, drove to the salon and walked in together. Rennick received a pedicure, according to the documents. As she walked out, she placed a bag behind a desk, the documents say. She and Bishop drove away.

An employee found the device, which "smelled like gasoline." The employee moved it outside and placed it near some large trash containers, according to the documents.

The employee later went back, the documents say, noticed it was burning and called 911.

Bishop and Rennick have both pleaded guilty in the case, court records show.

Ohio nail salon owner sentenced to prison for plan to set competing business on fire

by SHANNON STOWERS

An Ohio nail salon owner was sentenced to prison this week in a plan to set a competing nail salon on fire near Cincinnati. (WKRC)

MONROE, Ohio (WCHS) — An Ohio nail salon owner was sentenced to prison this week in a plan to set a competing nail salon on fire near Cincinnati.

Kim Lien Vu, 46, of Liberty Township, Ohio, was sentenced to 46 months in prison in the case after pleading guilty in September 2023, according to a news release from the U.S. Attorney’s Office for the Southern District of Ohio.

Prosecutors said Vu, who owns her own nail salon, developed an animosity toward individuals at a competing business and, beginning in December 2022, approached her employee about a plot to exact revenge.

Vu and her employee and co-defendant Cierra Marie Bishop, 30, of Hamilton, Ohio, eventually discussed the idea of setting the competing salon on fire, the news release said.

Prosecutors said Bishop eventually began working to design a remote-controlled incendiary device that could start a fire. The two women admitted to frequently texting about the plan, which they referred to as “Job 1.”

On Feb. 5, surveillance camera footage shows Bishop and a friend, co-defendant Makahla Ann Rennick, 19, of Hamilton, Ohio, entering the competitor salon, the news release said. During Rennick’s appointment, Bishop entered and exited the salon, looking for a place to plant the device. Eventually, prosecutors said Bishop walked to the restroom area in the rear of the salon and tucked the device under a salon desk before leaving.

A salon employee then found the suspected device, which smelled like gasoline. The employee opened the package, seeing that it looked like an explosive device, and took it outside near the salon’s dumpsters, the news release said. The employee later went back outside to check on the device and noticed that the box had begun to catch on fire.

Officers and firefighters responded to the call of a dumpster fire near the salon.

Prosecutors said Vu traveled or was at her property in Virginia to allegedly have an alibi when the incident occurred and remained in contact with Bishop during the process.

The three women were indicted by a federal grand jury in February 2023. Bishop has pleaded guilty and is currently awaiting sentencing.

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