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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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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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How to Open a Beauty Salon in 11 Steps: Checklist

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How to Write a Successful Salon and Spa Business Plan

• April 12, 2024

Julis Navarro

Table of contents.

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

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

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

1. Start With the Executive Summary

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

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

2. Include Your Company Description and History

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

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

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

3. Perform a Market Analysis

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

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

4. Detail Your Services and Pricing

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

5. Explain Your Marketing and Sales Strategy

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

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

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

6. Outline Your Operational Plan

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

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

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

7. Highlight Your Management Team and Organization

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

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

8. Present Your Financial Projections

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

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

9. Finish With an Appendix

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

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

Why Writing a Salon and Spa Business Plan Is Important

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

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

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

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

FAQs About Writing a Salon and Spa Business Plan

What is a salon and spa business plan.

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

Why Should I Write a Salon and Spa Business Plan?

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

What Is the Business of a Spa?

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

What Is the Business of a Salon?

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

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How to Write a Winning Beauty Salon Business Plan

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

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

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

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

What is a Beauty Salon Business Plan?

A beauty salon business plan is a strategic roadmap that outlines your vision, goals, and actionable steps for starting and growing a successful beauty salon business. This comprehensive document serves as a blueprint for executing your strategies effectively, making informed decisions, and navigating the challenges and opportunities that arise along your entrepreneurial journey.

Why You Need a Beauty Salon Business Plan

A well-crafted business plan is more than just a document; it’s a strategic tool that can guide your beauty salon toward long-term success. Having a solid plan is crucial for several reasons:

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

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

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

– Analyzes the Competition and Identifies Opportunities:

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

– Outlines Operations, Financials, and Facilitates Funding:

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

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

– Guides Growth and Expansion:

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

– Measures Progress and Enables Course Correction:

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

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

Key Components of a Beauty Salon Business Plan

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

1. Executive Summary

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

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

Key Elements of an Effective Executive Summary:

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

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

2. Company Description

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

Key Elements of a Company Description:

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

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

3. Market Analysis

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

Target Market Analysis:

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

Competitive Analysis:

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

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

Industry Analysis:

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

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

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

4. Marketing and Sales Strategy

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

Branding and Positioning:

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

Marketing Channels and Tactics:

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

Pricing Strategy:

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

Sales and Promotions:

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

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

5. Operations Plan

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

Physical Location and Facilities:

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

Equipment, Supplies, and Inventory:

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

Service Delivery Process:

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

Staffing and Training:

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

Legal and Regulatory Compliance:

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

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

6. Management and Organization

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

Ownership and Management Team:

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

Staffing Plan:

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

Corporate Culture and Values:

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

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

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

7. Financial Projections

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

Start-up Costs and Capital Requirements:

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

Operating Expense Projections:

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

Revenue and Income Projections:

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

Funding Requirements and Use of Funds:

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

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

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

8. Appendices

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

Potential Appendices to Include:

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

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

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

Writing Your Beauty Salon Business Plan

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

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

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

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

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

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

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

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

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

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

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

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How to create a salon business plan.

This is a great time to be in the salon business. With the world starting to slowly open up, demand for salon services is picking up again. But it’s also a highly competitive business. Whether you are in the beauty salon or hair salon business, to succeed you need a solid business plan that can help you address customer demands and achieve a competitive edge.

What is a Salon Business Plan?

A salon business plan is your blueprint to guide you through the process of starting and managing your establishment. It provides a roadmap to set up, structure and run your business. In the startup phase, the salon business plan helps you outline your key objectives with the business. It also helps you set a strategic direction for the salon.

Once you enter the growth phase, the plan helps you showcase the value of your business to potential investors and new partners.

A strategic document, the business plan is structured in different parts that include a cover page, executive summary, a mission statement and more.

Why Do I Need a Salon Business Plan?

Imagine making a huge investment in a new salon that goes bust in a couple of months because of its poor location. A concrete business plan can help you avoid making such strategic mistakes when you are in the process of going through how to open a hair salon . That’s because a business plan provides a realistic growth plan based on relevant parameters. Who is the target audience? How many people do you need to run a successful salon? What’s your unique selling point? Your business plan will make sure you have the answers before you take the next steps.

A good business plan is not just essential in the early stages of your business. It is relevant in the future as well. For example, if you want to expand your business and start a franchise you may need investment. Potential investors or business partners will be interested in understanding your vision and where you think your business will be in the next couple of years. This is where your business plan will be a key document to attract funds.

Getting Started

Before you put your ideas into an actionable document, you need to pause and consider a few things. First, you need to ask yourself why you’re getting into the business. What do you bring to the table? Do you have the passion and the expertise to drive a successful salon business?

A clear understanding of your personal motivations will help you create a solid plan for your salon business.

Writing a Salon Business Plan

Ready to write a business plan? Below you will find a comprehensive guide to writing a salon business plan.

First, you’re going to need a cover page that captures the basic information about your business. It should include your salon’s name, address and phone number as well your name and contact information.

The cover page is useful when you’re trying to provide key information about your business. But you may also choose to skip this since you will share the information in the salon description section.

Table of Contents

A table of contents prepares the reader for what’s to come in the business plan. It’s a great way to draw interest and follow a structure for the document.

Typically, the table of contents includes Executive Summary, Vision and Mission statement, Company overview, Market analysis, Competitor analysis, Products and Services and Marketing strategy.

Executive Summary

The Executive Summary section describes your salon and what makes it successful. In many cases, potential investors do not read beyond this section to make assumptions about a business. This makes it important for you to make your executive summary both interesting and compelling.

Brevity is key when creating an executive summary. Include high-level growth plans and financial information to hook your reader. If they find the section compelling, they will continue reading for more information.

Mission Statement

The Mission Statement articulates your business purpose. It helps you express why you have set up the salon, what you have to offer and how you deliver value to your target audience. And it captures how you intend to run your business and the core competencies that set you apart.

It also provides an insight into the values that drive your business.

For all the important information the Mission Statement conveys, it needs to be short and simple enough to be understood. Let’s take an example. Here’s how Starbucks defines its mission statement: “To inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.”

Describe Your Salon

Once you have articulated your strategic vision, you need to provide specific information about your salon. This is where you get into the details about the uniqueness of your business, the problem it solves and the way it’s differentiated from the competition.

Below you will find the specific sections you must include in this part.

Company Description

The company description provides a quick overview of your business. It describes what your company all about and its core values. This section should be brief and straightforward so the readers quickly get some background information.

Company History and Brand Story

When was the company founded? What led to its inception? These are some questions you should try and answer in the Company History and Brand Story section. When describing your Brand Story, try to make it personal. Was there a gap in the market you experienced first hand that led you to start your own salon? Do you see industry trends gaining traction in another city or country that you felt could be the next big thing in your area?

When filling out this section, consider the milestones that you’d want to highlight to your readers. Include those and avoid adding more details that may not mean much to the audience. For example, you do not need to mention the year you bought your first supplies for the salon.

In this section, include information about your salon’s location. Where is it situated? Are there any location advantages to drive people to your salon? For example, if your salon is easy to access by public transport in a town where car parking is a challenge, it may turn out to be an advantage for your business.

Salon Environment

Research shows relaxed customers are willing to pay 10-15% more than tense clients. Salon environment plays an important part in helping clients feel relaxed. And this makes it important for you to focus on creating the right ambiance.

In this section, include information about the salon environment you can offer your clientele. Do you offer a relaxing drink when customers enter your salon? Do you use essential oils or candles for a soothing experience? These are good things to mention in this section.

Convenience

Customers going to a hair or beauty salon expect a hassle-free experience. As a business owner, it pays to focus on this aspect. To start with, is it easy for clients to book an appointment? Does a team member speak another language to communicate with non-native English speaking clients? These are some of the details that will go into this section.

When it comes to the service industry, a positive word of mouth can do wonders for the business. Including information about the reputation of your salon can help you showcase its future potential. How do you communicate your salon’s good reputation? You may include information about highly positive reviews and awards you may have received in the past.

Services and Product Lines

The services and products you offer to your clientele play a huge part in differentiating your salon from competition. That’s why, it’s important to describe the benefits your products and services provide to customers.

In this section, highlight the different services customers can expect at your salon. Mention any new product lines you have on offer. You can also mention if there is any exclusive product line you’re currently developing, along with a timeline.

Hair Salon Services

If you own a hair salon, you can use this section to describe the various services you offer your customers.

Here are some examples of services you can include:

• Haircuts and styling
• Hair coloring
• Hair extensions
• Perms and relaxers

Beauty Salon Services

If you own a beauty salon, you can use this section to describe the various services you offer your customers.

What Problem Does the Salon Solve?

As a salon business owner, providing great service to customers at all times is your key business priority. But it cannot be the only goal to differentiate your business. By finding a problem that your salon can solve for your clientele, you can build a truly customer-centric business.

Let’s take an example. A growing number of eco-conscious customers are looking for natural beauty products and services. But they cannot find a salon that can meet their expectations. Is this a problem you can solve for them? This information is useful to showcase how your salon is truly differentiated.

How Does Your Salon Provide a Solution to the Problem?

Identifying a problem to be solved is just the first step. Once you have found the problem, you must figure out how your salon will help solve it for your customers. Otherwise, you will not be able to take advantage of a customer need to offer products and services your clients truly value.

Let’s take the same example and see how your business can provide the right solutions. Eco-conscious customers looking for all-natural products will choose your salon if you can provide an organic product range not tested on animals. You can even go further and offer them a truly organic experience by offering 100% organic snacks as they wait for their appointment.

The information you provide in this section shows you have considered all the steps you need to take to leverage an unmet customer need.

The Salon Business

If you have a salon business that includes both hair and beauty, it’s important to include that information in your business plan. Describe how you manage and operate the two businesses and how they come together to form a business as a whole.

The Hair Salon Business

In this specific section, you can describe the hair salon business in detail. How long have you been running this business? How many people do you employ? What’s the unique selling point? These are just some of the questions you must attempt to answer to provide a clear description of your business.

The Beauty Salon Business

For the beauty salon business section, you can follow the same format as that of the hair salon business. This section needs to be detailed as well to clearly demonstrate how you run this business.

Separate sections for the hair and beauty salon businesses will help you flesh out a comprehensive business plan and explain how the two operate.

Business Organization and Management Model

Your salon business is only as good as the people who help you run it. That’s why it’s important to create a solid organization and management model that highlights all the people who are responsible for your business growth.

The business organization and management model should include the number of employees, their roles, salon partnerships and management structure. It should be transparent in explaining how each employee, partner and vendor play a part in providing customer service and retaining clients for the salon.

Hair Salon Organization Example

In many cases, a hair salon owner has prior experience in the business as a former stylist. And in other cases, the owner may have had experience in a more supervisory role, overseeing the operational side of things. In such a case, the owner may choose to take up additional responsibilities as the salon manager. Other than the owner and the manager, hairstylists play a key role in running the salon.

Other employees may include receptionists, maintenance workers and assistants.

Beauty Salon Organization Example

A beauty salon may have a structure similar to that of a hair salon. The owner may have prior experience as a stylist or as a salon manager. In case of the latter, the owner may continue managing the salon and supervising the staff.

Many beauty salons use a booth rental system to hire employees. According to this system, the stylists are responsible for bringing customers, paying their own taxes, maintaining an inventory and managing insurance, among others. The salon is only responsible for providing a facility where the staff can work.

Multiple Income Stream Revenue Model

The COVID-19 pandemic has been especially hard on service-based businesses such as salons. Many salon owners suffered huge losses leading to an eventual shutdown of their business. The crisis has highlighted the need for multiple income sources to stay afloat. That’s why many salon owners are adding multiple income streams to their business.

But what is a multiple income stream revenue model? And what does it mean for your salon business?

Revenue streams are sources from which businesses earn money. These could be from the sale of goods or through service offerings. For a salon business, the primary source of revenue is service. But there are other sources of income that can prove helpful. For example, if you have a good website and social media presence you can sell ad space to beauty and haircare brands and add an additional income stream. Another example is expanding your services to offer training to other stylists that can bring in extra capital for your business.

By making a revenue plan, you equip your business for the future. You identify opportunities to innovate and create a solid business that aligns with your goals.

Hair Salon Income Streams

As discussed, adding more income streams is a great idea for your business. If you own a hair salon, here are some income streams you can explore:

• Subscription model: You charge a fee for a certain period rather than per transaction.
• Advertising model: You promote brands both in-store and online.
• Freemium model: You offer some services for free and a fee for the “premium” services.
• Third-party licensing model: You allow third parties to use your patented product.
• Renting/Leasing model: You rent out your assets (products or real estate) for a fee.

Beauty Salon Income Streams

Lets now look at some income streams for your beauty salon business.

• Markup revenue model: You buy products from a seller, add your markup and sell them to consumers.
• Free-for-service model: You provide services to an audience beyond your traditional clientele.
• Affiliate model: You promote products on your social media pages and make a commission based on clicks and sales.
• Production revenue model: You build and launch your own line of products.
• E-commerce revenue model: You leverage ecommerce to provide an online purchase experience.

Funding for Hair and Beauty Salons

Running a successful salon, of course, comes for a price. And as a small business owner, you may not always have the means to execute your growth plans. This is where funding can support your business goals.

Before seeking funds, it’s important for you to make a financing plan. Start by considering all major expenses. These may include payroll, rent, equipment, inventory and insurance. How much is each component costing you today? Is there a possibility to reduce these expenses without compromising quality? What are your near and long-term business goals? How much do you need to achieve your targets? These are all important questions to ask yourself before you start thinking about securing funds.

Once you have done the math, you can explore these funding sources:

• SBA loans: These have low-interest rates and quick payback periods, but require a strong credit score to qualify.
• Small business and microloans: These can be up to $50,000, but you’re going to need a concrete business plan.
• Alternative lenders: These offer quick access to capital injections. Some options to consider are asset-based loans, term loans and business line of credit.
• Equipment funding: These are best suited when you cannot afford to pay for all your equipment in one go.

You can find more funding options here in this article .

Target Market and Customer Analysis

A salon can be a highly profitable business if you provide the right products and services to your customers. But what is the right service for your customers? What do they want to spend their money on? A clear target market and customer analysis will help you understand this better and create a business plan based on real customer needs.

The first step is to gain an insight into who your target audience is. Deep dive into the profiles you can target with your business. What are the market demographics, what do they do, and what type of services do they have in mind? For example, if you are planning to open a hair salon in an area with an African-American population, could you provide expert braiding and weaving services that they will value?

The next step is to understand the market dynamics that will impact your business. Here, you need to do your research well. For example, what are the local area laws and regulations that you must comply with while running your beauty salon? Are there any special permits that you must procure before you open the shop? A comprehensive market analysis will help you find answers and avoid hassles later.

Competition Analysis

A key component of any business plan is thorough competition analysis. This is especially important when you enter the highly competitive salon industry. The first thing you must do is identify all the salons in the area where you want to set up your business.

The next step is to zoom in on each salon and figure out what they have on offer. The more thorough you are in this step, the easier it is for you to zero in on your competitive differentiation. Is there a service none of the salons offer customers today that you can provide? Is there a challenge clients face when choosing the salons that you can solve?

Marketing Analysis and Activities Plan

Because it’s a highly competitive industry, you need a strategy to get the word out and draw customers to your salon. Your marketing analysis will help you design a plan that aligns with your business goals. Built on the elements of market, customer and competition analyses, the marketing plan will help you set realistic goals and metrics to measure success.

The products you offer and the prices of your services are important elements of your marketing analysis. You could have the most exciting products that still won’t sell because their prices are exponentially higher than what your competitors offer. Or you could be selling products that customers don’t want to buy. Your marketing plan will help you find the sweet spot where your products and price points make the most sense for your business — and your customers.

Next, you need to figure out how you can get the word out so you’re able to reach more customers. Here are some potential marketing activities for you to explore:

• Offer referral discounts
• Tie up with social media influencers
• Manage online reviews
• Boost social media presence
• Sell products online
• Partner with local schools, clubs and other business owners
• Offer flash sales online
• Produce video content on YouTube

Major Targets, Expectations and Milestones to Achieve

The objective of a business plan is to help you realize your goals. And that’s difficult to achieve without a clear outline of your targets, expectations and milestones.

When setting targets, expectations and milestones, it’s important to be realistic. Otherwise, you risk failing to meet your goals. For example, setting a target of adding 5,000 new customers in the first quarter of starting your salon is both ambitious and unrealistic.

If you have additional documents to share more information about your products, services or marketing plan, you may choose to include an appendix. This is an optional section that you may also choose to skip if you feel you have covered everything in the salon business plan.

Tips for Creating a Salon Business Plan

As you can probably tell, creating a business plan takes time, effort and homework. And this applies whether you are looking at how to open a nail salon or other segments in the same industry. Some elements may feel straightforward while others will require you to do research and ask yourself some serious questions about your goals. Below you can find some useful tips to create a business plan for your salon.

Don’t Delay

Before you hit the ground running, take some time to develop your business plan. Do this first because it will save you time and energy later.

Keep the Plan Up to Date

Your business plan needs to be updated from time to time to reflect changing market dynamics and the changes you must make to achieve your goals.

Make Sure Your Business Plan is Focused

You may have ten brilliant ideas to take your business to the next level, but it’s easy to get distracted. Make sure your salon business plan is focused so you know where your priorities lie.

What is the difference between a hair salon and a beauty salon?

Hair salons provide hair care and hairstyling services. Beauty salons provide hair care and additional services related to skin health, foot care, aromatherapy, and facial aesthetics among others.

How do I start a salon business plan?

To get started, make sure you know why you’re getting into the salon business and what are your goals. Figure out how you can add value and what your salon will offer to clients. Once you have the answers, create a salon business plan that should include some sections such as an Executive Summary, Mission Statement, Company Description and Products and Services you can offer.

How much does it cost to start a salon business?

While the costs differ based on location, you should set aside approximately $65,000 to start your salon business. This will cover key expenses such as licenses ($500-$12,000), legal fees ($1,00-$5,000) and equipment ($5,000-$30,000). With a comprehensive business plan, you’ll be able to figure out how much each component will cost you.

How much does it cost to run a salon monthly?

While the costs differ based on the area, you should set aside approximately $6,000 a month to run your salon. Some of your monthly expenses would include insurance ($50-$1,000 a month), marketing expenses ($100-$500 a month), products ($100-$600 a month) and cleaning ($50-$200 a month) among others. With a business plan, you will have a clearer idea about how much you need to spend every month.

Is owning a salon profitable?

The profitability of a salon depends on a number of factors that can be covered in a business plan. If the location and services are right, owning a salon can be profitable in the long run.

What is the best business structure for a hair salon?

For a hair salon, the ideal business structure would include an owner who has prior experience as a stylist or salon manager. Employees may include hairstylists, receptionists, assistants and maintenance workers.

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BUSINESS STRATEGIES

How to create a hair salon business plan

• Nirit Braun
• Sep 12, 2023

When setting up your own hair salon, one of the most important initial steps is crafting a well-thought-out and detailed business plan. Consider it your styling guide for success in the hair and beauty industry. This document isn't just about the right cut and color it's your roadmap to achieving your salon's objectives, whether you specialize in trendy haircuts, stunning makeovers or relaxing spa treatments.

Your hair salon business plan will help you navigate the ever-evolving world of starting a beauty business , helping you start a business with confidence.

Ready to kick things off? Begin making a website with Wix .

Benefits of a hair salon business plan

A well-structured business plan is vital for a number of reasons. Below is a breakdown of the top benefits for you to bear in mind.

Getting investors interested: Your well-thought-out business plan isn't just for show; it's what can help you woo investors and raise money for your business . It shows them you've got a plan, clear goals and a vision for profitability. In other words, it makes them more likely to open their wallets and invest in your salon dream.

Figuring out what you need: Writing a business plan forces you to think about everything you'll need to run your salon smoothly—from supplies and equipment to staff. By the end, you'll have a good handle on your startup and operating costs. Don't forget to factor into this the cost of opening a business, starting an LLC for example.

Drawing up your game plan : Think of your business plan as your playbook for success. It lays out the steps to make your salon thrive, helps you set achievable goals and gives you a roadmap for reaching them. Plus, it's got your back when it comes to handling challenges, with strategies to tackle whatever comes your way.

Outshining the competition : While creating your plan, you'll dive deep into your salon's market and competitors. That research helps you understand your customers, spot industry trends and figure out how to stand out from the competition.

Running a smooth ship : Your business plan isn't just about the big picture—it's also about the nitty-gritty details. It helps you plan things like where your salon should be located, how it should look, what equipment to get and how to manage your staff effectively.

Playing it safe: In the financial part of your plan, you'll lay out your salon's expected income, expenses, and profits. This not only helps you see if your business will make money but also prepares you to make smart financial decisions. Plus, it's your insurance against unexpected bumps in the road.

Read more about how to start a service business .

6 steps to creating a hair salon business plan

Let's dissect the key components of a hair salon business plan:

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

The executive summary is a concise overview of your entire hair salon business plan. It provides a snapshot of your business concept, strategies, financial projections and objectives. While it appears at the beginning of the plan, it's often written after the rest of the plan is complete to ensure all crucial details are included.

To write a clear executive summary for a hair salon business be sure to introduce your hair salon, detailing the services you offer and the unique value proposition that sets you apart in the industry. Then clearly state your short-term and long-term business goals. These should be specific, measurable, achievable, relevant and time-bound (SMART).

Remember to highlight what differentiates your hair salon from competitors, whether it's your exceptional stylists, innovative services or a specific niche you cater to. Als, provide a brief overview of the target market you're aiming to serve and the market demand for your services.

Offer a glimpse of your projected financials, including expected revenue, expenses and profitability within a specified timeframe. Additionally, include how much investment you're seeking or have secured to launch and grow your hair salon business.

Example of an executive summary for a hair salon business

"EleganceTresses Salon is poised to transform the hair care experience in the city. With a mission to blend style and artistry, we offer a range of premium hairstyling and beauty services that cater to a diverse clientele. Our SMART objectives include becoming the go-to destination for modern hair transformations, increasing customer retention by 20% in the first year and expanding our salon footprint to two additional locations within three years. What sets us apart is our team of master stylists, led by industry veterans with over 15 years of combined experience. We're seeking an initial investment of $250,000 to support salon setup, staff training and salon marketing initiatives . Our projected revenue of $500,000 in the first year, coupled with strategic partnerships, positions EleganceTresses Salon for rapid growth and profitability."

02. Business and domain names

Naming your business is crucial, as it will become an integral part of your brand identity. A memorable and relevant name enhances brand recognition and establishes trust with your customers. A business name generator can provide inspiration for a beauty business name that resonates with your salon's concept and values.

For more inspiration:

Nail business names

Beauty business name ideas

Selecting and registering a suitable domain name is equally important. Ensure your domain name aligns with your salon's name or services as this consistency makes it easier for customers to find you online.

Opt for a domain name that is simple to spell and remember and avoid using complex words or excessive characters. As part of this, if feasible, incorporate relevant keywords in your domain name to improve search engine visibility. Finally, check domain registration platforms to confirm your chosen domain name's availability.

Learn more about registering your business , which you’ll want to do once you’ve landed on a business name and a legal structure.

03. Market analysis and research

The market analysis and research section of a business plan is essential for understanding the competitive landscape and consumer preferences in the hair salon industry. This information forms the foundation of your business strategy.

Define your target audience based on demographics, lifestyles and hair care preferences.

Evaluate competing salons' offerings, pricing, location and customer reviews to identify gaps and opportunities.

Research industry trends, emerging styles and customer demands to align your beauty business ideas and services with current market expectations.

04. Operations plan

The operations plan details the practical aspects of running your hair salon. It covers location selection, salon design, equipment procurement and staffing.

Location: Describe how you'll choose a high-traffic, accessible location that caters to your target audience.

Interior design: Highlight your salon's ambiance, decor and layout to create a welcoming and appealing environment.

Equipment: Specify the types of equipment and products you'll use to provide top-notch services.

Staffing: Detail your staffing needs, including hairstylists, receptionists and other support roles and outline their qualifications.

Operation plans example:

"Our salon will be strategically situated in a bustling shopping district, attracting both locals and tourists. The interior design will exude contemporary elegance, featuring comfortable seating, modern decor and ample natural light. We'll invest in premium hairstyling equipment and a range of high-quality products to ensure exceptional services. Our staff will consist of experienced stylists specializing in diverse hair types and styles."

05. Marketing and advertising plan

The marketing and advertising plan outlines how you'll promote your hair salon, attract customers and build brand recognition. This can include marketing campaigns tailored to different customer segments, such as bridal packages, seasonal promotions or loyalty programs. Be sure to highlight how you'll utilize social media, a business website and online advertising to engage with customers and showcase your services.

Example of a marketing plan

"Our marketing strategy entails a mix of social media engagement and influencer partnerships. We'll leverage platforms like Instagram and Pinterest to showcase before-and-after transformations, share hairstyling tips and engage with our audience. Collaborating with local boutiques for joint promotions will enhance our visibility while offering special packages for bridal parties will establish us as a bridal hair expert."

Need some help building up your brand? Get inspiration from these beauty logo ideas and use Wix’s free logo maker to create your own, plus check out this guide on how to make a barber logo .

06. Financial plan

The financial plan section of your business plan provides insights into the financial aspects of your hair salon business. It will need to include a rundown of your initial expenses such as salon setup, equipment purchase, interior decor and initial marketing efforts.

After this, you'll need to estimate projected revenue based on services offered, pricing and anticipated customer volume. At the same time, document ongoing costs, including rent, utilities, staffing salaries, product replenishment and marketing expenditures.

Then lay out the initial investment you'll need and potential sources of funding, such as personal savings, loans or investors.

It’s also important to project when your hair salon is expected to become profitable based on revenue growth and expense management.

Example of a financial plan

"Startup costs are estimated at $120,000, covering salon setup, equipment and marketing campaigns. We project an annual revenue of $300,000 within the first year, with a steady increase of 15% in subsequent years. Operating expenses, including rent, staff salaries and product inventory, are projected at $180,000 annually. We anticipate becoming profitable by the end of Year 2."

Got another business idea in mind?

Still trying to decide on the best type of business to pursue? Check out the guides below and read about more service business ideas .

How to start a nail business

How to start an online business

How to start a consulting business

How to start a fitness business

How to start a fitness clothing line

How to start a makeup line

How to start a candle business

How to start a clothing business

How to start an online boutique

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How to start a trucking business

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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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How to Write a Business Plan for Your Salon

Apr 17, 2023 By SALONORY

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What do the aspiring salon owner and the seasoned salon owner have in common? They both need a business plan! Even we share this common ground as an established salon supply store !

This is because, while owning a salon business is exciting, a lack of proper planning will make it difficult to have fun, motivate your team, juggle all of the aspects of your business and try to expand it. A business plan is a living document that outlines your business goals and strategies for achieving them. If updated annually and followed enthusiastically, it will help you to fully formulate ideas and set goals, make difficult decisions, have a clear financial understanding of your operation, raise funding and, ultimately, help you avoid getting overwhelmed by your business and improve your chances of success. Although each business plan will vary depending on their industry and operation specifics, a solid salon business plan should include the following elements:

1.     Cover Page

Your cover page will be your first impression to potential business partners, investors or lenders that it’s shared with, so it’s crucial to have a clean and professional one. If you have a logo to add for aesthetic appeal, we suggest this as well! Aside from this, be sure to include your salon name, salon address, salon owners’ names and salon owners’ contact information. If your business plan is super comprehensive, you may even want to consider including a table of contents.

2.     Executive Summary

Your executive summary should be the first section of your business plan, but because it will highlight what you intend to expand on in the rest of the plan, we actually suggest writing this section last!

Ultimately, this section should summarize what your business hopes to accomplish. Along with briefly highlighting important aspects of your business plan (like products or services you’ll offer and why they have the potential to be profitable), you’ll want to talk a little bit about why you’re starting this company and what experience you have in the industry. One of the most essential aspects of your executive summary, though, will be your company’s mission statement, so put some serious thought into crafting it!

A strong salon mission statement will summarize your approach to business in only a few sentences. Once you get them down on paper, though, these few sentences will guide your business in everything it does.

3.     Company Description

Your company description is the section to showcase why your company stands out from the competitors. It’s here that you should break down your salon’s strengths and advantages that will give it an edge to succeed. If you’ve chosen this location for a beneficial reason, if you’ve partnered with a certain supplier for a beneficial reason or if you’re working with the community in any way, this is the section to display it.

4.     Market Analysis

Your market analysis is an opportunity to display how well you understand the industry and specific market you’re in or hoping to enter. This will mean identifying your target market, understanding your community’s wants and needs, analyzing local competitors and acknowledging current trends taking over the industry. Once you’ve put in the legwork for this section and have your market analysis, you can compare the strengths and advantages highlighted in your company description against this and hit home how your salon will stand above the rest.

5.     Marketing Strategy

Your market analysis will lead the way to your marketing strategy. With your analysis complete, you should be able to confidently and concisely identify the type of clientele you’re aiming to attract (with specifics like their age, gender, income, lifestyle, desires and needs). From here, the goal is to outline the position you hope to play in their life. Describe how your salon will attract those clients and how it will achieve its desired position.

6.     Breakdown of Management and Company Organization

Even if there’s not a whole lot going on here, it’s still important to introduce anyone involved with the business and indicate whether your business will operate as a sole proprietorship, a partnership or otherwise. For the aspiring salon owner, this might look like a brief description of your skills with a write-up about how your salon will operate as a sole proprietorship and insight as to how your salon’s organization will adapt to growth. For the seasoned salon owner, this might look like your collection of managers, with a brief description for each that outlines their skills and primary job responsibilities. If you’re a seasoned salon owner operating on a big scale, we suggest creating some sort of visual to display your company organization!

7.     Financial Plan

Creating a detailed financial plan can be one of the most challenging parts of creating a business plan, but can also be one of the biggest reasons for your success. This section will open your eyes to less-obvious obstacles, hidden expenses and potential pitfalls if you’re an aspiring salon owner — and not only get an idea of, but improve your monthly and yearly progress if you’re a seasoned salon owner. Along with this, your financial plan will be the first thing that’s looked at when it comes to determining your eligibility for a loan. While it will depend on the current state of your salon, your financial plan could include:

• A sales forecast , which is a detailed projection of your sales over the next three years.
• An expense budget , which is an outline of what you’ll spend on expenses like rent, supplies and marketing to meet your sales forecast.
• A cash-flow statement , which is a detailed breakdown of how cash will flow in and out of your business over a 12-month period. This includes revenue, costs, expenses, loans and loan payments, personal funds used for business and any other money associated with the operation of your salon.
• A break-even analysis , which is a prediction of your break-even point when your expenses (including interest!) are equal to or lower than your sales.

Bring Your Business to Life

Don’t forget that your business plan should always be your guide in this pursuit of passion! Reference it often, update it regularly and remember why you wrote it in the first place!

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• February 27th, 2024
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How to Write a Hair Salon Business Plan

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

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

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

Let’s get started. 

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

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

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

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

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

Let’s go back to our road trip metaphor.  

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

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

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

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

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

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

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

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

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

RELATED ARTICLE:  

Owning a Hair Salon: Your Launch Guide  

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

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

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

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

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

Executive Summary  

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

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

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

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

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

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

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

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

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

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

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

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

Company Description  

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

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

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

For example: 

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

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

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

Market Analysis  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hair Salon Industry Trends for Growing Your Salon Business  

Marketing Strategy  

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

Some common salon marketing methods include: 

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

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

How do you improve a website’s SEO? 

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

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

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

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

How to Design and Roll Out a Beauty Salon Rewards Program  

Management and Organization  

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

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

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

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

Services and Pricing  

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

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

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

Financial Projections  

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

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

Answer these questions first: 

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

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

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

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

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

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

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

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Salon amenities show that your business is willing to go above and beyond to treat your clients. It provides them with experience outside of the services they’re paying for.

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Aug 10, 2023

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

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

Introduction

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

Understanding Your Salon’s Mission and Vision

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

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

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

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

2. Crafting These Statements:

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

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

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

Market Analysis

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

1. Understanding the Beauty Industry Landscape:

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

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

2. Identifying Your Target Market:

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

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

3. Analyzing Your Competition:

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

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

4. Location, Location, Location :

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

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

Services and Pricing

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

1. Choosing the Right Services to Offer:

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

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

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

2. Pricing Strategy:

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

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

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

3. Upselling and Cross-selling:

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

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

4. Crafting Your Salon Price List :

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

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

Marketing and Promotion Strategies

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

1. Branding:

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

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

2. Digital Marketing:

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

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

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

3. Offline Marketing:

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

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

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

4. Customer Engagement and Loyalty Programs:

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

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

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

5. Seasonal Promotions and Campaigns:

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

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

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

Operational Plan

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

1. Choosing a Salon Location:

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

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

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

2. Design and Ambiance:

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

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

3. Staffing:

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

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

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

4. Equipment and Supplies:

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

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

5. Daily Operations and Management:

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

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

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

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

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

Financial Projections and Strategy

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

1. Start-Up Costs:

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

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

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

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

2. Operational Costs:

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

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

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

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

3. Revenue Projections:

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

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

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

4. Break-Even Analysis:

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

5. Financial Safety Nets:

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

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

6. Growth Investments:

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

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

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

Implementation Timeline

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

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

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

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

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

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

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

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

3. Procurement (Weeks 9-16):

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

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

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

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

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

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

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

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

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

6. Grand Opening (Week 25):

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

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

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

Feedback Collection : Actively collect feedback from your initial customers.

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

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

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

Potential Challenges and Solutions

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

1. Challenge: Intense Competition

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

2. Challenge: Fluctuating Client Volume

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

3. Challenge: Retaining Skilled Staff

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

4. Challenge: Staying Updated with Industry Trends

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

5. Challenge: Managing Operational Costs

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

6. Challenge: Negative Reviews or Feedback

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

7. Challenge: Regulatory and Licensing Changes

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

8. Challenge: Technology Integration and Upgrades

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

9. Challenge: Economic Downturns

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

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

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

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

FAQ (Frequently Asked Questions)

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

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

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

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

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

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

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

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

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

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

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

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How To Write a Salon Business Plan

By Shannon Mulligan

So you’re thinking of opening a salon business—congrats! Gearing up to owning your own business is a huge step.

But if you’ve never owned a salon before or are simply looking to give your existing business a refresh, you’re probably thinking, “Where do I even start?”  Well, the first step is to write a salon business plan.

What is a business plan for a salon?

A salon business plan is a written document that covers your business goals and how you’re going to reach them.

Every business plan looks different. But for a salon, your business plan will likely include details like who your target customer is, where your salon is going to be located , what salon services you’ll offer, and more. 

Why you need a business plan for your salon

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

Here are some reasons why you should have a business plan for your salon.

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

As entrepreneurs, we often have a million great ideas.  But a new business is a big commitment and investment.

Your decision to launch a salon is most likely a great one. But a business plan doubles as a gut check to make sure that you have a solid plan in place. This way, you can open your salon doors with confidence knowing that you’re almost guaranteed to be a success.

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

What are your business goals? What steps do you need to take to reach them? How long will it take to reach those goals?

A well-written business plan answers these questions and more. It’s essentially a roadmap that answers all and helps outline how you’ll reach your business goals. Then as you open and grow your business, you can look back and make sure you’re on track!

To help you get funding (and other loans)

Banks and investors often want to see a business plan before they provide you with funding. Having a business plan shows that you’ve done your research, have a plan in place, and that you’re less likely to be a risk.

Even if you don’t need a loan or an investment, financial products like credit cards can be hard to come by if you don’t have a business plan.

To determine your revenue and labor costs

Salons often need multiple stylists and administrative staff. Depending on your goals and the size of your salon business, a business plan can help you determine how many employees you need to hire and train to serve your customers.

Without forecasting your labor costs, you can find yourself with too many customers and not enough workers—or vice versa.

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

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

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

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

How to write a salon business plan in 7 steps

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

1. Executive summary

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

As a general rule, your executive summary should cover:

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

2. Company overview and description

This section should be an overview of your company and what makes it unique. Who are you? What do you do? Why do you do it?

Don’t be afraid to dive into your background and the circumstances that led to you wanting to start your salon business. This is your opportunity to tell your story and share what makes you and your business special as an entrepreneur.                                                                                                                     

3. Market analysis

There are almost a million salons in the US—and that only covers hair salons. The thing about salons is that they can be similar and still be successful. But it’s important to understand how your particular salon will stack up. A market analysis looks at all the competing salons in your region—and beyond—to help you understand your positioning in the market. This then influences everything from your pricing strategy, your service offering, or even your location. 

For example, in your market analysis, you might find that you fall into the category of a premium salon, which means you’ll need to target a more affluent market. Or you might find yourself looking in an oversaturated area, so you’ll want to choose a location with less competition.

4. Salon business offerings

Not all salons are alike. For example, your salon may specialize in blowouts. Or you may have a full-service nail salon. 

Before you open, you should have a clear understanding of the services and products that your salon business might offer. Think of this section of your business plan as a menu of services that your potential customers can choose from.

5. Salon operations and management

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

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

6. Marketing and public relations (PR) strategies

As much as we wish customers would appear out of thin air, for the most part, you need to drum up excitement for your business. That’s marketing. 

In the marketing section of your business plan, you’ll want to Include details such as your brand messaging, how you’ll reach potential customers, and what marketing and PR investments you plan to make.

7. Financial projections

Calculating your financials isn’t the most glamorous part of owning a salon business, but it’s one of the most important.

When writing a business plan, you need to review your short- and long-term financial projections. This is essentially an estimate of how much money you expect to spend and make over the course of the next few years. 

The goal is to show that you’ll have a profitable business. And if not, it allows you to tweak your business strategy so you can create a financial plan that you feel comfortable with.

Free salon business plan template

Need some help getting started? 

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

Download your free salon business plan template here.

Business tools as sharp as your shearing scissors

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

With Homebase, you can:

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

Salon business plan FAQs

Why should you create a business plan for your salon even if you aren’t looking for financing.

A business plan is more than just a document to help you secure financing for your salon business. It can help you organize your business strategy and outline the steps needed to reach your business goals.

What is the best way to create your salon business plan?

The best way to create your salon business plan is by following these steps:

• Write an effective executive summary.
• Create a company overview and description.
• Conduct a thorough market analysis.
• Outline your services and business offerings.
• Decide how you want to manage your salon business.
• Make a plan for marketing your business.
• Put together your financial projections.

You can also use our free salon business plan template to get started.

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

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A Comprehensive Guide to Writing a Hair Salon Business Plan

• July 31, 2023
• For Salon Owners

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

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

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

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

The Ultimate Checklist You Need to Open Your Salon

Get Trafft’s FREE & PRINTABLE step-by-step opening a beauty salon checklist every salon owner needs.

Bonus: Discover 5 essential steps to building a successful beauty salon

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

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

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

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

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

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

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

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

Business space: Renting vs. buying?

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

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

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

The client connection: Building and nurturing a loyal customer base

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

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

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

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

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

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

How to Write a Hair Salon Business Plan?

Every hair salon business plan should always include:

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

Operation strategy

• Marketing plan

Staffing and management structure

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

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

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

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

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

Painting a compelling hair salon description

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

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

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

Market analysis, target market, and industry trends

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

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

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

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

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

Analyze your competition and how you can excel

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

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

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

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

Staffing and Training:

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

Appointment Management:

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

Inventory and Supplies:

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

Salon Maintenance:

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

Client Management:

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

Workflow Optimization:

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

Maintaining a competitive pricing

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

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

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

Marketing and advertising plan

To create a winning hair salon marketing plan :

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

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

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

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

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

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

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

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

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

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

Why Trafft?

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

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

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

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

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

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

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

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

FAQ on Hair Salon Business Plan

What is a hair salon business plan.

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

How important is a business plan for a hair salon?

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

What should a hair salon business plan include?

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

How detailed should the hair salon business plan be?

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

How to do market research for a hair salon?

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

How to calculate the financial projections for a hair salon?

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

What are the funding options for starting a hair salon?

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

How to develop a marketing strategy for a hair salon?

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

How to tackle competition in the hair salon business?

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

How to update a hair salon business plan?

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

Final Thoughts on Creating an Effective Hair Salon Business Plan

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

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

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

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

• Jovana Smoljanovic Tucakov

Jovana Smoljanovic Tucakov is a Content Marketing and SEO Specialist who uses both words and data to communicate a message and deliver value. With more than 5 years of experience in digital marketing and content production in the IT industry, she loves identifying and solving the readers’ pain points and creating targeted content.

Curious about the human mind and emotions, especially those that drive consumer behavior. Likes fitness, food preparation, board games, reading (both for pleasure and learning), and binge-watching Netflix.

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Hair And Beauty Salon Business Plan

Start your own hair and beauty salon business plan

Trend Setters Hair Studio

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

There is a need for a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship.

We plan to supply services and products that enhance our clients’ physical appearance and mental relaxation.

We will be targeting male and female clients who are fashion conscious and have disposable income.  Our clients are mostly women, but we will make sure to include men who fit the criteria as well

Competition

There are a number of salons like ours, but they are mainly in the very high income parts of MyTown and surrounding areas. We do not intend to compete with these so called “Day Spas.” We wish to offer a middle ground for those clients who can’t quite afford those high-end luxury salons.

Trend Setters will, upon commencement of operations, sell a wide range of beauty services and products. We will provide quality hair, nail, and skin services, along with top lines of beauty products. What will set Trend Setters apart from the competition is our commitment to providing all of these services in one convenient location.

Expectations

The forecast shows small profits leveling out in the third year. We believe this is realistic, even conservative. Of course we will be watching actual results on a monthly basis, and revising the forecast as necessary.

Financial Highlights by Year

Financing needed.

We plan on needing $60K owner’s investment and getting a $50K vendor financing to purchase equipment.

Starting costs include $50K cash cushion, $9K starting expenses before launch, and $53K tangible assets at launch.

Problem & Solution

Problem worth solving.

There is a demand for high fashion haircuts, manicures, and pedicures at reasonable prices. Men and women should not need to sacrifice their essentials to get a treatment that makes them feel good about themselves. 

Our Solution

Trend Setters is a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at a reasonable price/value relationship. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work.

Target Market

Market size & segments.

The market is our town, middle class, mostly women, so largely moms, working moms, and singles. 

We’re not doing formal market research because we know this market pretty well and we’re comfortable with market prospects in our town. We’ve been in this business for decades now. If we execute right, our customers will come in as we bring in our beauticians and barbers.

Current Alternatives

We’re well aware of a lot of competition, existing salons, all over town. We are not going to try to compete with the expensive spa salons around, with visibly fancy locations; and we are going to look nicer and price above the less fashionable strip mall and in-home options. 

We’re not pretending to be unique. We intend to bring in loyal customers because we are good people, easy to work with, good at what we do, friendly, and helpful. 

Our Advantages

Trend Setters wants to set itself apart from other beauty salons that may offer only one or two types of services. Having come from such a salon, Curley has realized, from talking with her clients, that they desire all of the services that we are proposing, but they remain frustrated because they must get their hair done at one place, and nails done at another. Although the focus of Trend Setters is hair services, we do wish to offer our clients the convenience of these other services in one location.

There are a number of salons like ours, but they are mainly in the very high-income parts of MyTown and surrounding areas. We do not intend to compete with these so-called "Day Spas." We wish to offer a middle ground for those clients who can’t quite afford those high-end luxury salons.

Our business atmosphere will be a relaxing one where clients can kick back and be pampered. Soft drinks will be offered to clients as they enter for service. Televisions will be located in the waiting and hair-drying area.

Keys to Success

The keys to success in our business are:

• Location: providing an easily accessible location for customers.
• Environment: providing an environment conducive to giving relaxing and professional service.
• Convenience: offering clients a wide range of services in one setting, and extended business hours.
• Reputation: reputation of the owner and other "beauticians" as providing superior personal service.

Marketing & Sales

Marketing plan.

We anticipate regular steady social media presence, in Facebook and Twitter. Our experience has shown that social media is the best advertising for this type of business. We will, however, run specials occasionally. We will also ask clients for social media referrals, and reward them with discounted or free services depending on the number of clients they bring. We will also offer discounts to the new clients who have been referred. 

We expect income to increase steadily over the next three years, as the reputation of the salon, its stylists and services become apparent to the general public. Second year revenues also anticipate the addition of one new stylist.

Locations & Facilities

The salon will be located in a retail strip mall at 1234 Stylish Road, MyTown. The salon will utilize 1,540 square feet. The location is strategically situated on one of the busiest streets in MyTown. It is a high profile area, with easy access from all parts of town.

Milestones & Metrics

Milestones table, key metrics.

The key metrics that will make this business a success is: 

• Average revenue per client per month.
• Average breakdown revenue from previous clients vs. revenue from new clients. We’ll develop specific standards as we go, so first we track. This will show us repeat business and new leads from word of mouth. 
• New clients from word of mouth. We’re going to have the discipline to ask new clients how they heard about us. As we develop the business we’ll track this metric and see how the different people compare. 
• Facebook likes and Twitter follows. We’ll develop standards as we develop the business. We need experience to see how this works. 

Ownership & Structure

Curley Comb, co-owner with Roller Comb, Jr., co founded and co own this llc 

Management Team

Curley Comb, co-owner with Roller Comb, Jr., her husband, has worked in a prestigious, upscale salon in MyTown, Texas for the past two years. Curley has created a large client following through hard work and dedication. Curley, and her talented team of beauticians, has what it takes to make this venture an extremely successful one. We expect our growing reputation to lead to new clients and beauticians to support our anticipated growth.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

• We’ll be using a full commission model with stylists and barber getting 60% commission on revenue. Industry average runs 45-65%. We’re on the high end because we are not offering a guaranteed base. This is what we’re used to. The owner will take a straight salary plus dividends on profits. 
• We’ve looked at the booth rental model but we’re used to commission and that creates a more orderly process for payments too, with all stylists able to use our credit card account.
• There can occasionally be issues with commission base related to reporting revenue, but we are a small salon with the owner mostly present.  
• We project revenues lower than average over the first few months, and then stable. We anticipate annual increase to stay steady throughout the following year to account for the normal flow of new clients coming into the salon. Estimates for sales revenue and growth are intentionally low, while anticipated expenses are exaggerated to the high side to illustrate a worst-case scenario.
• Our direct costs are mainly stylist and barber commissions plus direct costs of the products we intend to sell, plus an estimate for the ongoing cost of products, supplies, etc. 
• Product sales are a minimal part of our market. We are not quite sure how much revenue will be derived from products, so we took a low-ball approach and estimated sales of $800 a month.  Also in the sales projections table are services such as nails and massages. We are not quite sure how much revenue these two services will generate. We are certain that in time these services will be a large part of our revenue, but to err on the conservative side, we estimate revenues from these services to be only $1,500 a month for the first year.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

We estimate initial purchase of $50,000 in equipment plus $1,000 for starting inventory and $2,000 for other current assets (supplies mostly) and $9,000 in initial loss for expenses incurred before launch. These include legal, location fix-up, early marketing expenses, branding, logo, and social media. 

We also estimate needing $50,000 cash cushion when we start. 

Total starting costs, therefore, are $9K in expenses plus $103,000 in assets including $53,000 tangible assets and $50,000 cash in the bank. 

Sources of Funds

We anticipate $60,000 in owner investment from owner savings, which shows up as paid-in capital in the initial balance; plus a 5-year $50,000 vendor/manufacturer loan to finance initial equipment. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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How to create a business plan for a hair salon

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Crops, cuts, dyes, and highlights—hair salons are bustling microcosms of personal change and amusing exchanges. If you’re thinking about starting a salon of your own, the best place to start is with a solid business plan.

The question is: what goes into a business plan for a hair salon?

The short answer: A mission statement, a financial plan, and all the details about how the actual business will run. Of course, if you’re looking to write a hair salon business plan, you need more than the short answer. That’s why we’ve outlined every aspect of building a successful salon business plan, so read on for all the hair-splitting details.

Why build a business plan

Before you write a business plan , you might be wondering what the point of creating it is in the first place. After all, if the business is your personal passion that you’re willing to stake your time and effort into, is it really necessary to put so much of it in writing?

Actually, a business plan has two distinct values to anyone starting a salon (or any other spa business). 

Value for investors

A salon costs money. Even if your staff is providing their own supplies, you have plenty of overhead and start-off costs, from signing a lease to keeping the lights on.

If you’re lucky enough to have access to all the funds necessary to start your salon—whether from your savings or your friends and family—that’s great, but for most small businesses the only way to secure the capital to get a business off the ground is through taking out a loan.

You can secure funds from:

• Small business loans – Federally subsidized small business loans guaranteed by the Small Business Administrations (SBA) are an option for your burgeoning salon business.
• Individual investors  – Often high-income individuals are looking to invest directly into business opportunities including salons. You can meet with investors to get their ideas about how they can contribute financially to your small business.

To convince anyone to lend you the necessary capital to begin your salon, you’ll need a thoughtful business plan. As the business owner, you’ll present your plan directly to lenders and answer any questions they have about your proposal.

Ultimately, your hair styling business plan is your ticket to the financing you need to achieve your dreams of great ‘dos.

Value for the business

The flip side of your business plan is recognizing all the details, and planning is necessary to assure your business finds success. Committing to laying the groundwork on your business in print means a smoother opening, and a clearer picture of what needs to happen to get the doors open and the customers flowing in.

Your salon can use the business plan to:

• Analyze potential risks
• Develop a thorough layout
• Outline your target market
• Explore the possibilities of daily operations

You may think you’ve already got it all figured out, but throughout the process of building your business plan, it’s quite likely you’ll stumble across something that will make you rethink your original vision. Embrace the change—it’s time to jump into the plan.

Part 1: The cover page

Name, number, address, email—any and every way to contact you. The worst possible scenario is having an investor fall in love with your proposal only for them to have no clue how to get in contact with you.

While it may seem obvious, your cover page is the first thing any potential investor will see, so make sure everything looks pristine, professional, and eye-catching. Why not add a table of contents on the reverse side to give your audience an idea of what to expect as well? The extra polish might go a long way.

Part 2: Executive summary

Think of the executive summary as the simple synopsis, or the trailer for the big movie that is your new salon or spa. It needs to be short, touching on your goals and visions without getting too bogged down in the details. For your salon summary include information like:

• Your five-year plan – Do you see yourself expanding your business, offering more services, or opening up a second location? Share what your plans are for the future and where you see your salon going.
• How your salon will impact the community - Consider detailing how your salon will function as part of a larger community. Think about reaching out to neighbors and other local businesses through Nextdoor to get a better idea of the landscape you’ll become a part of.

Part 3: General description and company history

It’s time to talk about what sets your salon apart from the others. The general description and history pages are there to establish why your community needs your new small business. That means elaborating on specific things:

• Atmosphere - What feeling(s) does your salon evoke? Describe the feeling every customer will have upon viewing the facade and arriving inside. For Cedar Park salon owner Leslie Reeves , “It’s all about making kids feel amazing in their own skin.” She runs Sit Still, a kids salon committed to keeping its guests comfortable.
• Location – You’ve picked the perfect spot to begin your new salon business. Now let potential investors know why the location you’ve chosen is more than just practical—it’s purposeful. Whether you’ve studied the foot traffic of the neighborhood or noticed a dearth of other salons nearby, give them a reason why you’re putting down roots where you are.
• Services – Are you the first salon in your neighborhood to offer a service combination never seen before? If you’re styling hair like no one else, be sure to talk about it in your summary.
• Personal history – What about your past has come to inform you about starting a salon? If you’ve spent a decade in the beauty industry, worked in a variety of salons, and studied the ins and outs of the business, it’s worthwhile to include all of that.

Part 4: Mission statement and management plan

How are you going to do what you do? Keep your mission statement focused on things such as:

• Hiring and training practices
• Retail plans
• Customer service expectations
• Inventory management
• Business software 

Tackle each aspect of how your salon will operate day-to-day before moving on to the management plan, which will essentially detail who is responsible for each task. These sections are interrelated and should complement each other. For each aspect of your mission statement, there should be a correlated part of your management plan.

Think about the role of each employee—from the front desk to the manager—and outline their expected compensation as well. Include yourself, as the owner, too. You have some big responsibilities, after all.

Part 5: Marketing analysis and plan

If you’re looking to open up a salon, you should spend time researching precisely what’s happening in the beauty industry, both locally and nationally. This in-depth research will go a long way in presenting your business plan as thorough, objective, and well thought-out.

You can also position your salon filling a hole in the market as Allyson Davoll, CEO of Inspired to Enhance Roanoke did, stating, “I always knew when I had my salon, I wanted to diversify and make sure everybody knew how to do everything.”

Present your marketing analysis and then explicate your plan to capture your customer base. That includes things like:

• Your market position – Do you specialize in classic cuts for young professionals or are you catering to an older crowd looking to keep up with current trends? Explain exactly who your target demographic is and why you’re in the position to cater directly to them.
• Create marketing goals -  Create realistic goals for the immediate future when it comes to your small business marketing plans . Who and how many are the key takeaways from these goals, and don’t forget to imagine how you might expand your target demographics in the future.
• Identify branding – Slogans, images, and potential advertising materials can all be detailed in your marketing strategy. Show your potential investors exactly how you plan to appeal to your target demographic and explain why you’ve made the choices you have.

Part 6: Financial plan

If you’re looking for someone to invest in your salon or spa business, you’re going to need to prove that the investment can be lucrative with a shrewd financial plan. This section can be the most complex, especially for those with a specific financial background, which is why many small business owners turn to a professional.

A certified public accountant (CPA) is an individual with the knowledge and accreditation to guide you through any financial questions you might stumble upon while preparing your financial plan. Seek out any resources and help you might find necessary to build a proper business plan for your hair salon.

Your financial section should include the following information, though it’s important to note that much of it will be projected data based on research unless your beauty salon is already up and running.

• Profit and loss statement – Exactly what it sounds like, this statement will account for your income generating costs (products, commissions, retail sales), as well as your monthly operational costs (rent, utilities, insurance).
• Break-even analysis – Where costs intersect with profits. You can create a graph detailing exactly how much time it will take for the initial investment to be made back in full by the business.
• Cash flow statement – This section will account for all of the money that flows in and out of the business. Whether to pay for services or pay off loans, every penny should be accounted for.
• Business ratio – The projected sales and growth over one year can be identified in the business ratio. It’s a good way of asserting how and why your business will succeed and expand.

Part 7: Appendix

This final and optional section is where you can place items that you think are important but might not have their own proper section. These miscellaneous items could include:

• City permits
• Building leases
• Your resume

If you believe you have an item that could help you secure financing for your new beauty salon be sure to include it.

Business plans are typically under 12 pages, so as always, keep things as concise as possible and exercise restraint whenever possible. As well, note that you can (and likely should) revise and change your business plan as you encounter new information and develop new ideas. It’s a living document with the flexibility to change when necessary.

Nextdoor: The best plan for your business

Now that we’ve outlined the nitty-gritty of getting your salon’s business plan off the ground, you’re likely posed over your keyboard ready to get started bringing this essential document to life.

Hang on for just a second and click on over to Nextdoor . Nextdoor is the place to turn for getting the word out about your new beauty salon business, gathering recommendations, connecting with potential customers who are also your neighbors. 

At Nextdoor we know it takes a village, so why not get in touch today.

Sources: 

Impact Newspaper. Sit Still Kids Salon aims to create calm space for haircuts. https://communityimpact.com/austin/cedar-park-leander/business/2021/09/13/sit-still-kids-salon-aims-to-create-calm-space-for-haircuts/  

Roanoke Times. Business Intel: Salon offers inclusive hair care services at Valley View. https://roanoke.com/business/local/business-intel-salon-offers-inclusive-hair-care-services-at-valley-view/article_96c21ddc-ffa1-11eb-9097-df80c4c4542b.html

SBA. Small business funding programs. https://www.sba.gov/funding-programs  

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Salon Suites Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their salon suites companies.

If you’re unfamiliar with creating a salon suites business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a salon suites business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Salon Suites Business Plan?

A business plan provides a snapshot of your salon suites business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Salon Suite

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

Sources of Funding for Salon Suites Businesses

With regard to funding, the main sources of funding for a salon suites business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for salon suites companies.

Finish Your Business Plan Today!

How to write a business plan for a salon suites business.

If you want to start a salon suites business or expand your current salon suites business, you need a business plan. The guide below details the necessary information for how to write each essential component of your salon suites business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of salon suites business you are running and the status. For example, are you a startup, do you have a salon suites business that you would like to grow, or are you operating a chain of salon suites locations?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the salon suites industry.
• Discuss the type of salon suites business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of salon suites business you are operating.

For example, you might specialize in one of the following types of salon suites businesses:

• Individual Salon Suites: In this type of salon suites business, each operator is located in a site that caters to only one individual. Salon suite amenities include a salon chair, mirrors, salon products, sink, along with facial products and hair styling supplies.
• Boutique Salon Suites: If you are opening a boutique salon suites shop, you will want to offer distinctive salon suites in personalized styles to brand your salon suites business and stand out from others. Offering personalized services, such as facial massages and facial treatments, luxury foot care, and other special treatment packages created the sense of luxury and personalized care, which appeals to customers.
• Nail Care Salon Suites: This type of salon suites business is focused on customers who favor superior treatment for their fingernails and toenails. Nail professionals treat clients in individual suites that offer a wide variety of nail treatments and nail enhancements.
• Mobile Salon Suites: Offering select salon suites from a mobile reconfigured mobile home, this type of business captures the busy professionals in large cities. Appointments are made by phone and the mobile unit parks near the business site to fulfill salon services for each clients. These mobile salon suites offer the ultimate in convenience and service.

In addition to explaining the type of salon suites business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the amount of revenue during the past six months, opening a second salon suites location, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the salon suites industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the salon suites industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your salon suites business plan:

• How big is the salon suites industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your salon suites business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your salon suites business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, mother-daughter or teen party groups, and busy professionals.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of salon suites business you operate. Clearly, individuals would respond to different marketing promotions than professionals, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regard to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other salon suites businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes hairdressing chain shops, private businesses operating in residences, and community classes on self-care. You need to mention such competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of salon suites business are they?
• What is their pricing (premium, low, etc.)?
• What sets their business apart from others?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And, don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for on-call 24/7 service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer value-based pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a salon suites business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of salon suites company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide a luxury facial treatment using luxurious Egyptian mud elements? Will you offer packages that include two different services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your salon suites company. Document where your company is situated and mention how the site will impact your success. For example, is your salon suites business located in a busy retail district, a business district, a standalone building, or in a suburban strip mall? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your salon suites marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute direct mail pieces to your target audience
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) with target keywords on your website

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your salon suites business, including answering calls, planning and stocking salon suites items, paying invoices, contacting customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 100th customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your salon suites business to a second or third location.

Management Team

To demonstrate your salon suites business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing salon suites businesses. If so, highlight this experience and expertise. But, also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a salon suites business or successfully running a salon in a retail department store.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 25 customers per day, and/or offer special salon suites packages online? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your salon suites business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a salon suites business:

• Cost of inventory and related packaging
• Cost of furnishings or accessories
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, office supplies and equipment

Attach your full financial projections in the appendix of your plan, along with any supporting documents that make your plan more compelling. For example, you might include your salon suites location lease or a list of friends and associates who are already lined up to buy products and services from your business.

Writing a business plan for your salon suites business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the salon suites industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful salon suites business.

Salon Suites Business Plan FAQs

What is the easiest way to complete my salon suites business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your salon suites business plan.

How Do You Start a Salon Suites Business?

Starting a Salon Suites business is easy with these 14 steps:

• Choose the Name for Your Salon Suites Business
• Create Your Salon Suites Business Plan
• Choose the Legal Structure for Your Salon Suites Business
• Secure Startup Funding for Your Salon Suites Business (If Needed)
• Secure a Location for Your Business
• Register Your Salon Suites 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 Suites Business
• Buy or Lease the Right Salon Suites Business Equipment
• Develop Your Salon Suites Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Salon Suites Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Salon Suites business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business planning advisor can create your business plan for you.