Salon Business Boss

How to Start an Online Hair Business: Step Up Your Online Presence

So, you’ve got a passion for hair and a dream of turning it into a great online business? That’s fantastic! Starting an online hair business can be a fulfilling endeavor that allows you to combine your love for haircare with entrepreneurial spirit.

Here are some key steps to kickstart your online hair business: research your market, craft a solid business plan, select high-quality products, build a captivating website, and engage with your audience through social media. Triumph starts with a stylish strategy

Whether you’re a seasoned stylist or just a hair enthusiast, here’s a guide to help you navigate the exciting journey of launching your own online hair business.

Table of Contents

Market Research

How to Start an Online Hair Business: Step Up Your Online Presence

Starting your online hair business requires a solid foundation, and that’s where market research comes in. Before you dive into the digital hair market, dedicate time to understand your potential customers deeply. What do they prefer? What challenges do they face? Equally important is studying your competitors. What makes them unique, and where are the gaps in the market they haven’t covered?

By gathering these insights, you’ll shape a business strategy that resonates. Tailor your products or services to match your customers’ needs precisely. Moreover, recognizing market gaps lets you position your business uniquely. You can step in where others haven’t fully met demands.

In a nutshell, research isn’t a mere step; it’s the compass guiding your online hair business journey. Armed with knowledge, you’ll navigate the complexities, make informed decisions, and build a business that truly connects with your audience.

Read more about: How Do You Begin Your Journey to Open a Hair Salon?

Business Plan

A well-organized business plan acts as your guide on this journey. It’s like having a map that shows where you’re headed. In this plan, you’ll outline your business’s main purpose, its future direction, and what you want to achieve. You’ll also lay out what products or services you’ll offer, how you’ll price them, how you’ll let people know about them, and how you expect the money to flow in and out.

This plan isn’t just a bunch of papers; it’s a way to keep yourself on track. It helps you remember why you started this in the first place and where you want to go. Plus, having this plan is super important if you need money from investors or if you want to join forces with other businesses.

Think of it as your game plan for your business. It helps you make smart decisions, stay focused, and work towards your goals. So, while it might sound like a lot of work, remember, it’s like having a dependable map that guides you every step of the way.

Product Selection

When it comes to picking what you’ll sell, make sure you do it thoughtfully. Will you have things like hair extensions, wigs, or tools for styling? Your choices matter a lot. And one super important thing: the stuff you’re selling should be really, really good.

See, quality is key. You want people to be happy with what they buy from you. So, team up with suppliers who have a good reputation. That way, you’re making sure your customers are getting the good stuff. When they’re happy, they’re more likely to come back for more and tell their pals about you.

Think of it this way: you’re building a collection of things you believe in. Things that you’d be excited to use yourself. When you choose wisely and go for the good stuff, you’re setting the stage for happy customers and a strong, trustworthy business. So, when you’re deciding what to offer, just remember, it’s all about quality and trust.

Branding and Website Development

How to Start an Online Hair Business: Step Up Your Online Presence

Your brand identity is like your business’s unique character. Think of it as what makes you, well, you. To start, come up with a logo that people can easily remember. It’s like your business’s face that people recognize. Also, choose colors that you’ll use everywhere—your “color theme.”

Then comes the website part. Imagine your website as your online store. Make it easy for people to browse around. Show off your stuff with really clear pictures and tell people all the important details. And when they’re ready to buy, make the checkout process smooth as butter.

Remember, your website is like your online home. You want it to be welcoming, easy to use, and a great place to learn about your awesome products. When your brand and website work together nicely, it’s like creating a cozy, inviting space where people love to visit. So, think of it as your way of saying, “Hey, come on in and take a look around!”

Read more about: How Do You Get Your Own Salon Business Up and Running?

E-Commerce Platform

Choosing the right e-commerce platform is a big deal for your online hair business. It’s like picking the best foundation for your house. You’ve got options like Shopify, WooCommerce, and BigCommerce—these are like tools that help you build your online store just how you want it.

What’s important is that the platform fits your needs like a glove. You want something you can customize to match your style and your business’s vibe. And, here’s a must: make sure the platform plays nice with safe ways to pay, so your customers feel secure. It’s like locking your doors at night.

Also, think about mobile users. Lots of folks shop on their phones, so your website should look and work awesome on tiny screens too. It’s like making sure your house is cozy for everyone.

So, when you’re deciding on a platform, think about it like finding the perfect spot to build your store. You want a place that’s sturdy, comfortable, and welcoming for everyone who drops by.

Content Creation

Creating interesting content is like having a chat with your audience. You want them to feel like you’re buddies, not just someone selling stuff. So, make blog posts that teach them useful things about hair care and styling. You know, like sharing secrets.

Also, videos are great! Imagine showing them how to do a cool hairstyle step by step. It’s like being a virtual hairstylist. People love learning new things, and when you share your knowledge, they see you as someone who knows their stuff.

Here’s a cool bonus: when you share helpful content, more people find their way to your website. It’s like having a cool sign outside your shop that says, “Come on in, we’ve got something cool to show you!”

So, think about content creation as your way of connecting with people. It’s like sharing tips and tricks with your friends, and in return, they’ll want to hang out more often – which in this case, means visiting your website.

Social Media Strategy

How to Start an Online Hair Business: Step Up Your Online Presence

Harnessing social media’s strength is like inviting more friends to your party. Platforms like Instagram, Facebook, and Pinterest are like your party venues. You set up shop there and connect with lots of folks.

Think of it this way: if you’re throwing a party, you’d post invites, right? Same with social media—post cool stuff regularly. Share photos, tips, and interesting things about hair. It’s like showing everyone a sneak peek of your party fun.

And when people comment or like your posts, reply back! Imagine chatting with them at your party. It’s like saying, “Hey, I’m here, and I’m listening!”

Using hashtags is another trick. These are like signposts that lead people to your posts. So, if your post is about hair care, use hashtags like #HairCareTips. People who search for that will find you.

In a nutshell, social media is like hosting a fun online party. You’re sharing, chatting, and letting everyone know what a cool time they’ll have if they drop by.

Read more about: How Much Does It Cost to Launch Your Own Hair Salon?

Influencer Collaborations

Teaming up with beauty influencers is like having cool friends who talk about your stuff. These influencers are like trendsetters who lots of people follow. When they talk about your products, it’s like getting a thumbs-up from the cool crowd.

They can do a couple of things for you. First, they can use your products and tell everyone how awesome they are. Imagine if a famous hairstylist said your stuff is top-notch—it’s like a golden seal of approval.

Then, they can also make posts, videos, or stories about your products. It’s like inviting their followers to your party. Their followers trust their opinions, so when they say your products are great, their followers will want to check them out.

It’s like having someone popular vouch for your products. Their followers will be curious, and that curiosity can turn into visits to your online store. So, think of influencer collaborations as having someone with a megaphone tell everyone how cool your stuff is.

Customer Service

Exceptional customer service is non-negotiable. Respond promptly to customer inquiries, address concerns, and handle returns or exchanges with efficiency. Positive customer experiences lead to repeat business and referrals.

Marketing and Promotion

Crafting a solid marketing plan is like spreading the word about your awesome business. Imagine you’re telling people about a cool party you’re throwing—you want everyone to know, right?

So, your plan should have two parts: online and offline stuff. Online, you can send emails to your customers. It’s like sending party invites. You tell them about new products and cool deals. It’s your way of saying, “Hey, you’re invited to this awesome thing we’ve got going!”

Then, there’s online advertising. It’s like putting up posters around town. Pay-per-click ads are like those eye-catching signs that lead people straight to your online store. It’s like saying, “Follow this path to the party!”

And SEO is like making sure your party spot is easy to find on a map. When people search for things related to hair, you want your store to pop up. It’s like saying, “We’re right here, join the fun!”

So, think of marketing as telling everyone about your amazing business party. You’re making sure they know where to go and what to expect.

Shipping and Fulfillment

How to Start an Online Hair Business: Step Up Your Online Presence

When it comes to shipping and making sure orders reach your customers, it’s like being a gracious host at your party. Just as you’d want your guests to have a fantastic time, you want your customers to have a positive experience too.

Start by teaming up with reliable shipping partners. Think of them as trustworthy friends who help with the party setup. They ensure your products get to your customers safely and on time.

Offering various shipping options is crucial. Some customers might want their items quickly, as if they’re in a hurry to reach your party. Others might prefer a more relaxed pace. Providing choices is like letting them pick how they want to join in.

Giving out tracking details is just as important. It’s like giving them a map to your party. They know where their package is and when it’s expected to arrive. This builds anticipation and excitement.

Remember, a smooth shipping process is akin to ensuring your party guests have a seamless entry. It’s all about making them feel welcome and ensuring they have a comfortable experience.

Read more about: How to Bring Your Salon Ownership Vision to Life?

Feedback and Adaptation

Listening to your customers and making changes based on their input is like fine-tuning your party plans. You know, just to make sure everyone’s having a great time.

Collecting feedback is like asking your guests how they’re enjoying the party. It helps you figure out what’s working and what might need a little tweak. Listen closely to their suggestions—think of it as them telling you what kind of food they’d love to have at your party.

And here’s the cool part: adapting your strategies. Imagine someone suggests having a photo booth at the party. If it sounds fun, you might add it! Similarly, if your customers suggest something to improve your business, like easier navigation on your website, consider making that change.

Remember, improvement is like adding more fun activities to your party. It keeps things fresh and exciting. And by staying open to feedback and making smart adjustments, you’re making sure your business stays in sync with what your customers want.

Legal and Regulatory Considerations

Getting a handle on the legal stuff is like making sure your party follows the rules. You want everything to go smoothly, right?

Start by understanding what’s needed in your area. Just like you’d check if you need a permit to throw a big gathering, find out what’s required to start your online business. This can include things like getting the right paperwork, licenses, and permits.

Taxes are another piece of the puzzle. Think of it like setting aside money for cleaning up after the party. You’ll want to follow tax rules so you’re all squared away.

And don’t forget consumer protection laws. These are like guidelines to make sure everyone has a good time at your party. They’re in place to keep things fair and safe for everyone involved.

So, think of legal and regulatory considerations as the fine print of your business party. By following the rules, you’re making sure your business event is a hit without any hitches.

Scaling Your Business

How to Start an Online Hair Business: Step Up Your Online Presence

When your online hair business starts getting attention, it might be time to think about making it even bigger. Imagine your party getting so popular that you need more space, more games, and more hands to help.

One way to do this is by adding more stuff to what you offer. Think about having new things like different hair products or accessories. It’s like having more games and activities at your party. People will be excited to see what’s new.

You can also explore new ways to tell people about your business. It’s like inviting even more friends to your party by using different invitations. Try out social media, collaborations, or partnerships with other businesses.

And just like parties need more hands to help as they grow, your business might need more team members. Imagine having more people to set up, serve food, and play music at your party. Extra team members can help your business run smoothly as it gets bigger.

So, think of scaling your business as expanding your awesome party. You’re making it more exciting, inviting more guests, and making sure everything runs smoothly as you grow.

Read more about: How to Begin Your Hair Business Journey: Practical Tips

Persistence and Passion

Starting and growing your online hair business is like running a marathon. It’s not a sprint – it’s a long journey. And just like a marathon runner needs to keep going, you’ll need dedication and a deep love for what you’re doing.

Expect some bumps in the road. Challenges are a bit like those hills you have to climb during a marathon. They can be tough, but remember, you’re not alone. Your enthusiasm and drive are your running shoes, propelling you forward even when it gets tough.

Think of passion as the fire that keeps you warm. When you’re passionate about what you’re doing, it’s like having an endless supply of motivation. Even on the days when you’re tired, that fire inside keeps you moving.

So, persistence and passion are your secret weapons. They’re what keep you going when things are tough. Just like a marathon runner doesn’t give up, you’ll keep moving forward with determination and a heart full of love for your business.

Starting an online hair business is a thrilling adventure that demands meticulous planning, dedication, and a customer-centered mindset. By conducting comprehensive market research, establishing a robust brand identity, and employing impactful marketing tactics, you can build a thriving online hair business that connects with customers and shines in the competitive market. Remember, the pathway to achievement lies in delivering top-notch products, outstanding customer service, and remaining adaptable to the constantly evolving digital landscape. So, are you prepared to embark on this exciting journey? Get ready to make a splash in the online hair industry.

Frequently Asked Questions

How to Start an Online Hair Business: Step Up Your Online Presence

Q: What is the importance of market research before starting an online hair business?

A: Market research is crucial as it helps you understand your target audience, identify competitors, and discover gaps in the market. This insight guides your product offerings, pricing, and marketing strategies, setting a strong foundation for your business.

Q: How can I effectively promote my online hair business?

A: Effective promotion involves a combination of strategies. Utilize social media platforms to showcase your products, collaborate with influencers for wider reach, invest in pay-per-click advertising, and implement search engine optimization (SEO) techniques to improve your online visibility.

Q: How to ensure a seamless customer experience for my online hair business?

A: Ensuring a seamless customer experience involves responsive customer service, user-friendly website navigation, clear product descriptions, efficient shipping, and hassle-free returns. By prioritizing customer satisfaction at every touchpoint, you build trust and encourage repeat business.

To learn more on how to start you own salon checkout my startup documents here.

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business plan for online hair business

About the author. Entrepreneur and Salon Business Fan.

Hi! I am Shawn and I am a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online salon business resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a salon business owner, I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.

That’s why I created Salon Business Boss: I want to help salon business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.

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Wealthy Hair Guides

How to start a hair business online and thrive.

Are you completely enamored with the world of hair care and beauty? Envision yourself at the helm of your very own online hair business, navigating through a sea of endless possibilities. With social media’s boundless reach, connecting with clientele across the globe has never been more within your grasp. This moment, right here, could mark the beginning of an incredibly rewarding journey.

This guide isn’t just a mere introduction to launching your business; it’s a treasure trove waiting to be unlocked. We’re set to delve into the nitty-gritty—the branding strategies that distinguish, the tips that transform, and the closely guarded secrets that elevate. Let’s embark on this exhilarating journey together, and discover how your online hair business can not only take off but soar in the digital realm.

Laying the Foundations

Jumping into the online hair business? Get ready to turn that passion into profit! But hey, before you dive deep, let’s get the groundwork solid. Knowing who you’re selling to? That’s your golden ticket. Tailor those hair care products and services just right, and watch your business bloom.

Now, let’s talk about your secret weapon: social media. Instagram, Facebook, Pinterest – you name it. They’re not just platforms; they’re your stage. Show off those hair care wonders, connect with your tribe, and keep the conversation going. Stay active, stay seen, and keep your hair brand buzzing in everyone’s feed.

Choosing your business structure is like picking the perfect outfit. LLC or sole proprietorship? Make that choice, grab your hair business license, and sketch out a bulletproof business idea. Think customer joy, killer email marketing, and yes, those sleek business cards. It’s all in the details.

And because one size never fits all in hair care, offer a range that sings to everyone. virgin hair weave, lace closures, lace front wigs  – bring it on. Personalize that experience, and loyalty will follow.

Product Mastery

Get ready to unlock the secret sauce to rocking your successful hair extension business!  It’s all about diving deep into the world of hair extensions and really getting to know the ins and outs of what you’re selling. Imagine being the go-to guru for all hair types and styles – because when you know your stuff, tailoring your treasures to meet every unique need becomes a piece of cake.

Now, let’s talk about staying ahead in the ever-changing beauty game. Keeping your finger on the pulse of the latest trends and techniques is not just cool, it’s crucial! It’s how you draw in those eager clients and keep them coming back for more, turning them into loyal fans of your brand.

Whether you’re the queen of hair extensions, running a chic salon, or spreading love with your hair care line, knowing who you’re talking to and where to find them is your golden ticket to success.

Branding and Online Presence

Let’s dive into the magic of branding and rocking your online presence to skyrocket your hair business to stellar heights!  Your brand? It’s the heartbeat of your hair extension business, echoing the amazing values and quality you bring to the table. And your online presence? That’s your digital stage to dazzle and connect with those hair-loving souls out there, turning heads and weaving connections. 

Kicking things off, and pinpointing your target market is your golden ticket. It’s all about getting into the nitty-gritty of what makes your potential clients tick, ensuring your branding and marketing vibes resonate perfectly.

Now, stepping into the business arena, making things official with a business registration, and getting that license is key. Choose the business structure that fits like a glove, and let a well-crafted business plan be your roadmap to branding and online awesomeness. When it comes to standing out, it’s all about highlighting your unique hair solutions and the exceptional experience you deliver. Don’t forget, a snazzy business card can work wonders in leaving a memorable mark. 

But wait, there’s more! Beyond the social scene, email marketing is your secret weapon to keep the conversation going, spotlighting new products and staying engaged with your fabulous clientele. And because safeguarding your digital realm is crucial, always ensure your online presence is secure and sparkling. 

By weaving a strong brand and dynamic online presence, you’re not just reaching customers; you’re creating loyal fans and carving out your throne in the bustling hair industry. With a laser-focused understanding of your online marketplace and a strategy that’s on point, your online hair business is set to flourish and captivate the digital world. Let’s make those hair dreams a reality!

Sales and Marketing Strategies

Here’s the scoop: nailing your sales and marketing game is your golden ticket to stardom. Zero in on your vibe tribe – those glam gods and goddesses craving your hair magic. It’s all about getting cozy with the array of locks and potions they adore, so you can craft hair business marketing messages that resonate straight to their hair-loving hearts.

Now, let’s talk about turning heads on social media. Instagram, Facebook, Pinterest – your new besties. Use them to flaunt your fabulous finds and spark conversations that turn followers into fanatics. Show off your goods with eye-candy posts and rave reviews, building a brand that’s as unforgettable as a perfect hair day.

Marketing mavens, listen up: email marketing is your secret weapon. Shoot out those must-read updates and exclusive sneak peeks to keep your hair heroes hooked. 

A stellar customer experience and genuine connections are what transform one-time shoppers into loyal followers of your hair empire. 

Operations and Growth:

When starting a successful hair extension business online, it’s important to consider your operations and growth strategy. However, knowing your audience is your golden ticket to crafting killer marketing that hits the mark every time.

Now, let’s talk game plan. A rock-solid business strategy isn’t just nice to have; it’s your roadmap to mega success. Thinking of setting up an LLC? Go for it! And don’t forget, those official papers aren’t just busywork—they’re your ticket to the big leagues.

But hey, it’s not all about the paperwork. Winning over hearts? That’s where it’s at. Roll out the red carpet with top-notch hair extensions that cater to everyone. Keep the convo going with email marketing to keep your fans in the loop and craving more. 

And because first impressions count, invest in a sleek website and chic business cards. Your brand’s vibe? It’s everything. 

Bottom line: with a clear vision, a dynamic online presence, and a knack for making customers feel like royalty, you’re not just starting a business—you’re launching a hair empire online. Let’s do this!

FAQs About How To Start A Hair Business Online

What social media platforms are essential for promoting an online hair business.

Utilizing social media platforms like Instagram, Facebook, and Pinterest is crucial for reaching ideal customers. These platforms allow business owners in the beauty industry to showcase their work, engage with potential customers, and build a community of loyal customers through visually appealing content and interactive engagement.

How can new business owners in the hair industry build a solid customer base?

Building a solid customer base starts with understanding your ideal customers and engaging them on various platforms. Offering excellent service, leveraging customer feedback to improve, and maintaining a consistent tone of voice that resonates with your audience can help foster customer loyalty and attract more loyal clients.

What’s the importance of a solid business plan in starting a hair business online?

A solid business plan is crucial as it outlines your hair business ideas, business niche, target market, effective marketing strategies, and financial projections. A well-crafted hair business plan helps you navigate the competitive beauty industry and sets a clear path for success. Want to start your own hair extensions business, this guide will give you all the information you need: H ow To Start A Hair Company! 5 Key Things To Consider

Can you offer beauty services without a physical business location?

Yes, starting an online hair business or offering a mobile service allows you to operate without a fixed business location. This approach can reduce overhead costs and enable you to reach customers who prefer services at their convenience, enhancing customer satisfaction and loyalty.

How do I determine the best business type for my online hair venture?

Determining the best business type involves assessing your skills, market needs, and what you’re passionate about in the beauty industry. Whether it’s selling hair extensions offline or selling online, understanding your business niche and ideal customers will guide you in choosing the right business model.

How can I use customer feedback to grow my online hair business?

Customer feedback is invaluable for understanding customer expectations and improving your services. Actively seeking feedback through social media platforms, surveys, or direct communication allows you to address concerns, improve your offerings, and tailor your services to better meet the needs of your ideal customers.

What strategies can help maintain customer loyalty in the competitive beauty industry?

Offering personalized experiences, consistently meeting or exceeding customer expectations, and engaging with customers through social media or email marketing are effective strategies. Creating a rewards program or exclusive offers for returning customers can also enhance customer loyalty.

How should I choose a business niche for my online hair business?

Choosing a business niche requires researching the hair extensions industry, identifying gaps in the market, and considering what you’re passionate about. Specializing in a niche, like natural hair care or extensions, can help you stand out and attract potential customers looking for specific services.

Why is identifying ideal customers crucial for an online hair business?

Identifying ideal customers helps you tailor your marketing strategies, services, and content to attract the people most likely to engage with your business. Understanding their preferences, needs, and behaviors enables you to create targeted campaigns that resonate, leading to higher conversion rates.

How can I use a mobile service to expand my online hair business?

A mobile service allows you to offer hair styling and care directly to customers’ homes, providing convenience and personalized service. This can be marketed through social media platforms and your website, showcasing the flexibility and unique value proposition to potential customers.

What factors should I consider when creating a hair business plan?

Your hair business plan should cover market analysis, business niche, financial projections, marketing plan, and operational plans. It’s also important to consider customer feedback mechanisms, employee recruitment (if applicable), and how you’ll adapt to changing customer expectations and trends in the beauty industry.

Starting a hair business? Get everything you need in this hair business checklist, from product sourcing to marketing strategies:  From Idea to Reality: The Complete Hair Business Checklist for Aspiring Business Owners .

How can social media influence the success of my online hair business?

Social media influences success by providing a platform to showcase your work, engage with potential clients, and build your brand’s presence. Effective use of social media can enhance brand visibility, attract ideal customers, and drive sales by showcasing your expertise and the quality of your services.

What are the different hair products I can buy from a wholesale hair vendor?

When buying from a wholesale hair vendor, you can find a variety of hair products including virgin hair, which is high-quality, unprocessed hair. Lace frontals and lace front wigs are also popular choices. These provide a natural hairline and allow for versatile styling, making them a favorite among consumers seeking a seamless look.

Ready to dive into the world of selling hair bundles? This ultimate guide will take you step by step through the process, from sourcing quality hair to marketing techniques: The Ultimate Guide To Selling Hair Bundles: Learn Everything You Need To Know!

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How to Start an Online Hair Business: Research, Plan & Launch Your Store

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By Happy Sharer

business plan for online hair business

Introduction

Starting an online hair business can be a great way to make money while doing something you love. An online hair business sells hair care products and services to customers over the internet. It can include anything from selling shampoos, conditioners, and styling products to offering virtual consultations or tutorials on how to do hair styles. Regardless of what you choose to offer, it’s important to understand the steps involved in starting an online hair business so that you can be successful.

Research the Hair Care Market

Before you start any business, it’s important to do your research. You need to have a strong understanding of the hair care market in order to identify gaps and create a business plan that will be successful. Analyzing the market involves researching current trends in hair care products and services, as well as customer needs and preferences. This will help you determine which products you should offer and how to target potential customers.

You should also identify any gaps in the market that you can fill with your business. For example, if there is a lack of natural hair care products, you could focus on creating an online store that specializes in natural products. Understanding customer needs and preferences will also be beneficial when it comes to creating a successful business plan.

Develop a Business Plan

Creating a business plan is essential for any business. A business plan is a detailed outline of how you will run your business and includes information such as products, pricing, marketing strategies, financial projections, and operational procedures. Having a clear business plan will help you stay organized and focused on your goals.

Choose a Business Model

When starting an online hair business, you will need to decide on a business model. You can operate as a retailer, wholesaler, or both. As a retailer, you would purchase products from suppliers and then sell them directly to customers. As a wholesaler, you would purchase products from suppliers and then sell them to other businesses who would then sell them to customers. Operating as both a retailer and wholesaler can be beneficial if you want to offer a variety of products and services.

Secure Financing

In order to get your business up and running, you will need to secure financing. There are several options available, such as bank loans, crowdfunding, and venture capital. Each option has its own advantages and disadvantages, so it’s important to do your research and find the right one for your business.

Source Suppliers

Once you have secured financing, you will need to source suppliers for your business. Identifying reliable suppliers is essential for the success of your business. You want to make sure that they are providing quality hair care products at competitive prices. Additionally, you should ensure that they have a good reputation in the industry and that they can meet your delivery deadlines.

Launch an Online Store

Once you have sourced your suppliers, you will need to launch an online store. There are many e-commerce platforms available, such as Shopify and WooCommerce, that can help you build an online store. These platforms provide product listings, shopping carts, secure payment processing, and shipping integrations. Additionally, they allow you to customize the look and feel of your store to fit your brand.

Market Your Business

Once your store is up and running, you will need to promote it in order to reach potential customers. Digital marketing and social media are great ways to spread the word about your business. Additionally, email campaigns and other tactics, such as influencer marketing, can help you reach new audiences.

Starting an online hair business can be a great way to make money while doing something you love. It involves doing market research, creating a business plan, securing financing, sourcing suppliers, launching an online store, and marketing your business. With the right strategy and dedication, you can be successful in this venture.

(Note: Is this article not meeting your expectations? Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)

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How to Start a Hair Extension Business in 14 Steps (In-Depth Guide)

Updated:   January 18, 2024

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The hair extension industry is booming. The market reached $4.06 billion in 2022 and is projected to reach $7.9 billion by 2030, according to Fortune Business Insights . More people are turning to clip-ins, tapes, and sew-ins to avoid drastic permanent hair changes.

business plan for online hair business

This comprehensive guide will walk you through how to start a hair extension business. From researching your market and developing a business plan to obtaining a business license and location, establishing supplier relationships, hiring staff, marketing your salon, and managing day-to-day operations.

1. Conduct Hair Extension Market Research

Market research is integral to building a successful hair extensions business. There are two types of market research, primary and secondary. The primary is research you conduct yourself. Secondary is research conducted by a third party.

business plan for online hair business

Market research is important for insight into the hair salon, hair extension, and wig business market. It tells you about potential customers, your local target market, the best places to buy hair extensions, and even the top social media accounts for marketing.

As you develop a business model for your hair extension company, here are some details to recognize:

  • Increasing demand for fashionable hairstyles and the flexibility to change styles quickly and easily.
  • The rise of celebrity culture and social media influences people’s beauty ideals and desire to emulate celebrity hairstyles.
  • More focus on overall appearance and spending on beauty services.
  • Advances in extension technology, like hand-tied wefts, tape-ins, and clip-ins that look and feel natural.
  • Growing consumer budgets for non-essential beauty services and willingness to pay premium prices for high-quality extensions.

The best opportunities in the hair extension industry include:

  • Brick-and-mortar salon businesses that sell and install extensions.
  • Specialist extension stylists who offer services independent of the salon.
  • Freelance extension application is in demand for events like weddings.
  • Selling branded hair extension products through wholesale and e-commerce channels.
  • Offering custom extension design services for television, film, theater productions, and cosplay events.

To capitalize on this growing industry, extension salon owners must focus on:

  • Stylist education and training
  • Competitive Pricing
  • Diverse extension options
  • Strong customer service
  • Consistent marketing

Overall, the hair extension market provides exciting entrepreneurial opportunities for those passionate about the beauty industry. You could even potentially improve the overall appeal of your hair extension business by providing hair braiding services or even wigs since these are also part of the hair industry.

2. Analyze the Competition

Thoroughly analyzing your competition is crucial when starting a hair extension business. This helps you identify how opponents are storing hair extensions, where to buy the best quality hair extensions, whether competitors are using fake or natural hair, and more.

business plan for online hair business

Some ways to check out the local human hair extension businesses include:

  • Research existing salons in your geographic area.
  • Drive around town and take notes on locations, signage, customer volume, and marketing.
  • Search online directories and review sites to see services offered, pricing, ratings, and reviews.
  • Visit competitor salons as a secret shopper and evaluate customer service, quality of extensions, and the overall experience.
  • Search relevant keywords related to your location and service offerings to see what salons rank highly in local search results.
  • Study their websites closely – how optimized are they for SEO? Do they facilitate easy online booking?
  • Compare their social media followings and online reviews.
  • Sign up for email lists to analyze promotions and offers.
  • Examine their overall branding and digital marketing strategy.

By comprehensively analyzing both in-person and online competitors, you gain an accurate picture of strengths, weaknesses, and competitive gaps. You can then refine your business plan and competitive positioning to stand apart. Continuously monitoring competitors even after opening will help you stay ahead.

3. Costs to Start a Hair Extension Business

When starting a hair extension business, carefully estimating costs is essential for securing financing and setting up an effective budget.

Start-up Costs

Start-up costs are the expenses encountered as you start a new business in the hair industry. For a successful hair extension business, you’ll need to spend money on:

  • Business licensing – $50-$500 depending on location
  • Liability insurance – $500-$2000 annually
  • Hair styling equipment like salon chairs ($300-$1000 each), shampoo basins ($200-$500 each), dryer chairs ($200-$600 each), carts, mirrors, etc. Equipping stations for 2-4 stylists could cost $4000-$10,000.
  • Hair extension inventory – Budget $2000-$5000 minimum for initial extension stock including tapes, keratin bonds, clip-ins, ponytails, and other styles. Factor in a variety of textures and colors.
  • Salon lease deposit – Typically 1-2 months rent; $2000-$5000 for a small shop.
  • Salon buildout/renovations like flooring, lighting, and plumbing – $5000-$25,000+ depending on space.
  • POS system for appointment booking and retail sales – $50-$150/month
  • Website design and development – $1500-$5000 for pro site.
  • Marketing materials – $500-$2000 for signage, business cards, flyers.
  • Grand opening event – $500-$2000 for refreshments, entertainment, giveaways.
  • Professional services like bookkeeping, and payroll admin – $200-$500 monthly.
  • Initial product/supply inventory – $1000-$2000 for backbar, salon retail.

Ongoing Costs

Ongoing costs include any expenses encountered throughout the life of your hair business. Some common expenses when you operate your own business include:

  • Rent – $1500-$4000 for small leased space. More for purchased property including mortgage payments, property tax, etc.
  • Staffing – Hairstylists may be booth renters or employees. Booth rent averages $400-$1000 per station. Employing 2-5 assistants at $15-$20/hour would be $5000-$10,000 monthly.
  • Insurance – $150-$600 depending on policy
  • Utilities – $300-$800
  • Office Supplies/hair products – $500-$1500
  • Extension inventory restocking – $500-$2000 to replace sold product
  • Marketing expenses like social media advertising or SEO – $300-$1500+
  • Credit card processing fees – ~2-4% of revenue
  • Accounting fees – $200-$500
  • Shop maintenance – $500 miscellaneous repairs/upkeep

Annual expenses:

  • Liability insurance renewal
  • Licensure renewals – $50-$500
  • Continuing education – $100-$500 per stylist
  • POS system – $600-$1800
  • Accounting software – $300-$1500

Overall, total start-up costs for a small hair extension salon can range from $20,000 to $100,000 based on inventory, location, renovations, and equipment needs. Ongoing monthly expenses will typically cost between $10,000 to $25,000. Carefully estimating expenses and creating a detailed budget is key to success.

4. Form a Legal Business Entity

When starting a hair extension business, one key legal decision is choosing your business structure. The right entity can limit liability and provide tax advantages. Here are the main options:

Sole Proprietorship

A sole proprietorship is the simplest structure. You operate as an individual with pass-through taxation. However, you have unlimited personal liability for debts or lawsuits against the business. This poses risks for a salon as customers could file injury claims related to extension applications.

Partnership

A general partnership lets multiple hair stylists jointly run an extension salon and share profits. Like sole proprietors, partners have unlimited personal liability. Partnerships can also cause issues if a partner wants to exit the business. Overall, sole proprietorships and partnerships provide little liability protection.

Limited Liability Company (LLC)

A better option is forming an LLC (limited liability company). LLCs shield your assets from business liabilities, so extension clients cannot easily sue you personally. LLC profits pass through to members’ taxes, avoiding double taxation. LLCs allow flexible management and ownership structures suitable for a small salon with multiple stylists. Startup costs are low.

S-Corporation

S-corporations also provide liability protection and pass-through taxes. But S-corps have stricter ownership rules requiring shareholders to be U.S. citizens. The formal structure involves more paperwork than an LLC. Overall, an S-corp offers minimal benefits over an LLC for a hair extension business.

C-Corporation

C-corporations let you sell stock and have unlimited fundraising potential. However, C-corps come with double taxation where profits are taxed at the corporate level and shareholder level. More record-keeping and formalities are required. For a small hair extension salon, double taxation and startup costs make a C-corp disadvantageous.

5. Register Your Business For Taxes

An EIN, or Employer Identification Number, is crucial for hair extension businesses to obtain. This unique ID number is used for key purposes:

  • Opening a business bank account
  • Registering your LLC or corporation
  • Filing taxes
  • Hiring employees

Essentially it serves as your business’s social security number for interacting with state/federal agencies.

The good news is applying for an EIN is quick and free through the IRS website. Simply go to the EIN Assistant page and select “View Additional Types, Including Tax-Exempt and Governmental Organizations.” Choose “Sole Proprietorship/Individual” or “Partnership” for a simple extension salon.

Follow the steps to enter your personal information, business name and address, reason for applying, and ownership details. Submitting online takes just minutes. You’ll receive an EIN immediately in the form of a 9-digit number.

Registration for state sales tax collection, often called a Seller’s Permit, is also crucial for hair salons selling retail products. Check your state’s website for the proper forms and low registration fees, usually around $10 to $50.

6. Setup Your Accounting

Maintaining accurate financial records is critical for hair extension salon owners. Here are some ways to maintain finances when selling hair extensions as part of your hair business.

Accounting Software

With sales transactions and inventory purchases daily, using accounting software like QuickBooks streamlines tracking income and expenses. QuickBooks connects to your business bank accounts and credit cards, automatically importing and categorizing transactions.

Hire an Accountant

A bookkeeper can handle accounts receivable/payable, bank reconciliations, and produce financial statements for only $300-$500 monthly. Come tax season, an accountant will know industry specifics to maximize hair extension salon write-offs and deductions. They ensure proper sales tax collection and remittance as well.

Open a Business Bank Account

Open a business bank account to keep all personal and professional spending separate. When you own your own hair extension business, you don’t want the IRS to assume any personal spending is happening with company money. It also helps you stay organized come tax season.

Apply for a Business Credit Card

A business credit card is also advised over personal cards. Business cards require your company’s information and do factor in your credit score. Higher limits cater to your operating expenses. Charge all inventory purchases, advertising, software subscriptions, and other costs to this card.

7. Obtain Licenses and Permits

Opening a hair extension salon legally requires obtaining specific licenses and permits. Check with the U.S. Small Business Administration for federal requirements. The SBA also has a local search tool for state and city permit requirements.

At the state level, a cosmetology facility license allows you to operate a beauty salon. States mandate facilities meet certain health codes, provide licensed services, and safely store chemicals. Application fees are typically $50 to $500 depending on location.

A local business license or occupational tax certificate is mandated to legally operate in the jurisdiction. City or county clerks issue fees starting around $30. Some cities have additional industry-specific licenses for salons that regulate sanitation and bonding.

You may also need a fire inspection and health department inspection to get occupancy approval. Any signage for your salon requires a permit as well.

If hiring employees right away, be sure to register for a Federal Employer Identification Number to handle payroll taxes, unemployment insurance, and workers comp.

8. Get Business Insurance

Carrying proper insurance is crucial to protect your hair extension investment from unpredictable events. The right policies can save your company from financial ruin if you encounter mishaps.

Some common scenarios where a lack of insurance could devastate an extension salon:

  • A stylist improperly secures a client’s extensions, causing hair loss and scalp irritation. The client sues for injury and emotional damages totaling $50,000. Without liability insurance, you’d pay these hefty expenses out of pocket.
  • A plumbing leak overnight floods your salon and ruins $10,000 worth of inventory and equipment. No coverage means eating these replacement costs.
  • A burglar smashes your front window and steals $5,000 of product. Insurance helps recoup theft losses.

To avoid such disasters, partner with an insurance broker to purchase recommended policies:

  • General liability insurance covers 3rd party injury and property damage claims. Up to $2 million in coverage is recommended.
  • Property insurance replaces stolen, damaged inventory and equipment. Get detailed replacement cost coverage.
  • Commercial auto insurance protects company vehicles.
  • Workers comp insurance covers employee injuries. Most states mandate this coverage.

For comprehensive protection, expect to budget $1,000 to $5,000 annually depending on your policies, limits, deductibles, and provider. Insurance gives peace of mind that accidents and unforeseen events won’t dismantle your salon.

9. Create an Office Space

While your salon will be the main hub, securing office space can benefit your hair extension operation in key ways:

  • A private area for bookkeeping, QuickBooks entries, and other admin work. Salon noise and distractions make this challenging.
  • Storage room for excess inventory and supplies, removing clutter from the salon floor.
  • Meeting space for consultations, hiring interviews, and other appointments. This maintains a professional image.

Here are ideal options to consider:

Home Office

A home office allows you to work from the convenience of home. Expect costs of $100 to $500 to set up a basic desk and supplies in a spare bedroom or basement. While affordable, the home environment poses productivity and separation challenges.

Coworking Office

Coworking spaces like WeWork provide an affordable, professional office environment starting around $300/month. Open work areas, private offices, meeting rooms, and networking events are included. However, coming and going can reduce time at your salon.

Retail Office

If opening a retail salon, secure space with a back office/breakroom. This allows for storage and meetings without a separate lease. However, space within salons is often limited. Expect to pay 10% to 30% more in rent.

Commercial Office

Leasing a private commercial office space offers the most professional setting for meetings and solo work. A basic one-room setup rents for approximately $600 to $1500 monthly. The expense may not make sense for new extension salons.

10. Source Your Equipment

A hair extension salon needs quality styling tools and stations to deliver exceptional service. Not to mention several styles of hair extensions and application products.

business plan for online hair business

From dryers to shampoo chairs, here are the top ways to acquire the necessary equipment:

Buying brand new gives you modern tools in pristine condition. Look to beauty suppliers like Sally Beauty, CosmoProf, and Beauty Systems Group for professional discounts of up to 30% off retail. Online specialty shops like Bangn Beauty also sell salon essentials. Expect to invest $4000-$10,000 in outfitting stations for 2 to 4 stylists.

Gently used equipment through resale saves substantially on costs. Facebook Marketplace and Craigslist frequently list salon chairs, carts, and dryers from stylists upgrading their tools. Expect 50% to 75% off original prices. eBay and OfferUp also connect you to sellers. Inspect secondhand items carefully before purchasing.

Renting equipment avoids major upfront costs while testing different options long-term. Check local classifieds or national rental marketplaces for short-term rentals around $100 to $200 monthly per piece. This helps limit spending as you build your clientele. Just confirm policies for damages.

Leasing through your beauty distributor bundles equipment costs into monthly payments over 3 to 5 years. Zero-down leases start around $150 monthly per styling station. You own the equipment after the term.

11. Establish Your Brand Assets

Creating a strong brand identity is crucial for hair extension salons to stand out. A polished brand conveys quality services and helps attract loyal clients.

Get a Business Phone Line

Start with securing a professional business phone number through a provider like RingCentral . Choose a local area code and dedicated line with call routing features to ensure no missed appointment calls. Expect to invest $25 to $50 monthly.

Design a Logo

Designing a logo and brand assets builds recognition. A creative, meaningful logo like an abstract hair graphic or stylized name reinforces your style and specialty. Use a logo maker like Looka to explore affordable options starting at $20.

Ensure brand colors, fonts, and graphic elements align across assets like business cards, email signatures, and signage. This consistency cements your identity.

Print Business Cards

Business cards from Vistaprint make in-person networking easy. Custom cards with your logo, tagline, and contact info cost roughly $20 for 500. Share these during outreach to gain new extension clients. Signage also announces your presence.

Buy a Domain Name

Buy your custom domain name through a registrar like Namecheap for maximum brand potential. A domain like “LuxeLocksExtensions.com” resonates. Expect annual registration fees of around $15. Choose a domain relating to your name or services.

Build a Website

Building a website establishes an online presence and hub for bookings. Using a user-friendly website builder like Wix , you can create a professional site yourself. Select a template, add hair images, service menus, and online booking, and publish for approximately $20 monthly.

Design a Website

Alternatively, hire a freelancer on Fiverr to custom-design a site for around $500. They handle technical aspects while you provide content. This yields a more strategic, optimized website.

12. Join Associations and Groups

Joining relevant associations and online groups can provide invaluable connections and growth for hair extension salons. Surrounding yourself with others in your industry yields mentorship, referrals, and inside knowledge you won’t find elsewhere.

Local Associations

Search for a local beauty or cosmetology association to join, such as the American Association of Cosmetology Salons or the Professional Beauty Association . Memberships start around $50 annually for access to training, discounts, and networking mixers to meet stylists in your area.

Local Meetups

Regularly attending local trade shows and meetups is also advised. Use Meetup to find fellow beauty professionals in your region. Swap business strategies in person at low or no-cost events. Exchanging cards and social followers drives future referrals.

Facebook Group

Facebook groups connect you with stylish communities, both locally and beyond. Join industry-specific groups like Hair Extension Business Secrets – Marketing & Technique Support Group and Hair Extension Business Owners to access thousands of global peers. Get feedback, share experiences, and more at your fingertips.

13. How to Market a Hair Extension Business

Marketing is crucial for any new hair extension salon to create awareness, attract clients, and grow revenue. With the right promotion, you can establish your salon as a top destination for extensions in your area.

business plan for online hair business

Start by tapping your network. Reach out to friends, family, and colleagues and ask them to try your services and provide referrals. Offer 10% off or other perks for word-of-mouth marketing. Satisfied clients are powerful brand advocates.

Digital Marketing

For digital marketing, focus on strategies like:

  • Google/Facebook Ads targeted locally to drive website traffic and bookings
  • Search Engine Optimization to rank higher in local salon searches
  • Customer review generation and management on Google, Facebook, Yelp
  • Email marketing with promotions to build your client list
  • Instagram feed showcasing extension styles, specials, before/afters
  • TikTok videos on extension techniques, behind-the-scenes, transitions
  • YouTube tutorials on extension care, styling tips, and client testimonials

Traditional Marketing

Traditional tactics like direct mail, radio, print ads in local magazines, and billboards can also work but may provide a lower return on investment. Consider:

  • Grand opening flyers mailed to households in a 10-mile radius
  • Local radio spot ads on popular stations
  • Ad in city magazine beauty section
  • Eye-catching roadside billboard near your location

While digital marketing tends to be more affordable and measurable, explore your options. Geo-targeted Facebook Ads to nearby followers of hair pages generate conversions under $5 per booking. Match tactics to your goals and continuously test new approaches.

14. Focus on the Customer

Providing exceptional customer service is crucial for hair extension salons to gain loyal, happy clients who refer others. How you treat clients directly impacts your reputation and bottom line. Some ways to enhance customer service when you sell hair extensions include:

  • For example, carefully listening to desired outcomes during consultations and delivering that experience leaves clients satisfied.
  • Sending follow-ups after appointments asking how the extensions are wearing ensures excellent long-term results.
  • Resolving any issues quickly, like adjusting an application that didn’t take properly or replacing damaged extensions, preserves your reputation.
  • Going above and beyond also delights clients.
  • Throwing in free deep conditioning treatments or hair products for regulars shows you value their business.
  • Remembering personal details and preferences tailors the experience.
  • Consistently delivering 5-star service earns rave recommendations across Google, Facebook, Instagram, and more.

The referral business and return visits generated by stellar customer service provide crucial recurring revenue. This steady stream of clients is any salon’s dream. So never neglect the care you provide customers. Your attention and personal touches create a memorable experience that fosters loyalty and growth.

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business plan for online hair business

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.

business plan for online hair business

No credit card required.

business plan for online hair business

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 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.

Start your 14-day free trial with GlossGenius today!

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

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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.

Image covers differences between mission statement and vision statement.

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.

Image defines strengths, weaknesses, opportunities, and threats (SWOT) for 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.

business plan for online hair business

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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Free Hair and Beauty Salon Sample Business Plan PDF

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Elon Glucklich

6 min. read

Updated February 7, 2024

Looking for a free,  downloadable hair and beauty salon sample business plan Word doc  or  PDF  to help you create a business plan of your own? Bplans has you covered.

Keep in mind that you don’t need to find a sample business plan that exactly matches your business. Whether you’re launching an upscale, full-service salon in a bustling city or a neighborhood barbershop, the details will be different, but the bones of the plan will be the same.

Are you writing a business plan for your salon because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company.

No two salons are alike. Your business model will be different if you’re renting space to independent hairstylists, rather than taking on employees, for example. So take the time to create your own financial forecasts and do enough market research so you have a solid plan for success.

  • What should you include in a hair and beauty salon business plan?

Your hair and beauty salon business plan doesn’t need to be hundreds of pages—keep it as short and concise as you can. You’ll probably want to include each of these sections:

  • Executive summary
  • Company summary and funding needs
  • Products and services
  • Marketing plan
  • Management team
  • Financial plan

One of the things that makes a salon business plan different from some service-based business plans is that you might decide to offer a combination of products and services.

Maybe you’ll sell shampoo, beard oil, or other cosmetics and beauty products, in addition to offering services like haircuts, manicures, or massages. If that’s the case, make sure you include your ideas for upselling products to customers to increase the value of every appointment you book.

Here’s an example of a salon business plan outline.

Hair and beauty salon sample business plan outline.

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  • The 7 elements of an effective hair and beauty salon business plan

1. Executive Summary

The  executive summary  provides a high-level overview of your business plan. It should outline the objectives of your hair and beauty salon, such as to offer high-quality services, to expand the client base, or to break into a new market.

Your salon’s mission statement should describe its purpose and what sets it apart from competitors. For example, you may aim to offer a personalized experience for each customer or provide eco-friendly hair and beauty services.

The keys to success are the factors that will help your salon thrive. These may include a prime location, hiring experienced staff, excellent customer service, or a unique product and service range.

2. Company Summary and Funding Needs

The company summary offers a detailed overview of your salon, including its legal structure , location, and history. Also, it highlights your salon’s funding needs if you are seeking financial support.

Clearly state how much funding you need, what you will use it for, and how it will benefit the salon. For instance, you may need funds to renovate the premises, purchase equipment, or boost marketing efforts.

3. Salon Products and Services

This section should detail the products and services your hair or beauty salon will offer. These may include haircuts, hair treatments, manicures, pedicures, massages, and beauty treatments.

If you plan to retail beauty products such as shampoos, conditioners, or skin care items, include this information too. Highlight any unique services or products that differentiate your salon from competitors.

4. Salon Marketing Plan and Analysis

Your marketing plan should outline the strategies you will use to attract and retain customers. These strategies might include social media advertising, loyalty programs, partnerships with local businesses, and special promotions.

Additionally, you should conduct a thorough market analysis. Understand your target customers, their preferences, and their spending habits. Identify your competitors, their strengths and weaknesses, and how you can differentiate your salon.

5. Salon Management Team

The management team section provides information about the salon’s key personnel. This could include the salon owner, managers, stylists, beauticians, and other staff members. Highlight their roles, responsibilities, qualifications, and experience.

If you plan to rent chairs to independent stylists rather than hiring employees, describe how this arrangement will work and the advantages it offers for your business.

6. Financial Plan and Forecasts

Your financial plan should present detailed financial projections, including revenue, costs, and profitability. Include a cash flow statement, income statement, and balance sheet. This section should clearly demonstrate the salon’s potential profitability and financial viability.

Also, outline your pricing strategy. How have you priced your services and products, and how do these prices compare with competitors? What are your wage costs, and how will they affect your profitability?

7. Appendix

The appendix includes any additional supporting documents that complement your business plan. This might be market research data, lease agreements, employee contracts, or licensing and permit documents.

While not always necessary, the appendix can provide valuable context and proof to support your business plan’s content.

  • Crafting a Successful Salon Business Plan: Key Considerations

Understanding your target clientele’s needs is crucial to writing a hair or beauty salon business plan that you can put into action. To ensure your business plan is the foundation of a growing operation rather than just checking boxes, ask yourself whether you’re taking these considerations into account.

1. Comprehensive Services Offering

In the beauty industry, customer preferences vary significantly, and staying versatile in your offerings can help cater to a broader clientele. Include a wide range of services that cater to different demographics. You may also consider offering unique or specialized services that distinguish your salon from others.

2. Pricing Strategy

Pricing can make or break your salon. Competitive pricing attracts customers, but your pricing should also cover your costs and ensure profitability. Effective market research can help you understand the average cost of services in your area, which you can use to set your prices competitively.

3. Salon Atmosphere

The ambiance of a salon plays a significant role in attracting and retaining customers. Consider factors like décor, cleanliness, and customer service when planning your salon.

4. Staff Training and Expertise

Quality service is crucial in the hair and beauty industry since word-of-mouth exposure from existing clients is a major driver of new business. Investing in ongoing staff training ensures that your team stays updated with the latest trends, techniques, and customer service skills.

5. Digital Presence

Although word of mouth is one business driver, many of today’s customers research online before visiting a salon. Having a strong online presence, including a well-designed website, effective search engine optimization and active social media accounts, can significantly boost your business.

  • Download your free hair and beauty salon sample business plan PDF

Download this  hair and beauty salon sample business plan PDF  for free right now, or visit Bplans’ gallery of more than  550 sample business plans  if you’re looking for more options.

There are  plenty of reasons  salon business owners can benefit from  writing a business plan —you’ll need one if you’re seeking a loan or investment.

Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Elon Glucklich

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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Do you dream of owning your own salon someday?

Despite the growing competition, becoming successful as a hair business owner is very much possible. If you have a vision for your salon, the passion, and the necessary skill set, attaining your dreams is a sure thing–if you know what you’re doing.

We want to help you on your journey, so keep reading if you want to learn about starting a hair business.

The Business Plan

Before starting a hair business, it is important to have a thorough business plan. A good business plan will include the goals and objectives of the business, the target market, the budget, the business model, and the strategy.

It is important to have a comprehensive understanding of the hair business, including the competition, trends, products, services, and the local hair climate. Understanding the target market will help in crafting the right pricing strategy as well as gaining an understanding of customer preferences.

A successful hair business plan should also include a timeline for implementation and milestones. Having a plan in place will ensure that the business is organized and successful. It’s also important to consider the legal aspects of starting a hair business.

Understanding the legal requirements will make the process smoother and help you avoid any potential legal issues. Finally, it’s essential to define the roles and responsibilities of all the people involved in the business and the relationships between them. Following these steps will help ensure that your hair business is successful.

Finance and Budgeting

It is also important to consider finance and budgeting should be a top consideration. Having a clear budget and understanding of the financials is essential for success.

One should account for start-up costs, ongoing costs such as rent and utilities, payroll, taxes, and any other costs associated with a hair business. Knowing the costs associated with running a hair business and planning for them in the budget is vital in order to have a profitable business.

Additionally, one should look into the different financing options that could be available. This would include traditional bank loans, crowdsourcing, and any government resources that may be available. Having a clear and comprehensive understanding of the financials surrounding ones business is an important first step in having a successful business.

Legal Structure

Before starting a hair business, it is essential to consider certain legal structures . First, it is important to know if the business will be operated as a sole proprietorship, a partnership, or some form of corporation.

Each has its own set of legal requirements and offers different levels of liability protection. Additionally, the structure of the business should take into account any relevant zoning and licensing requirements that may be necessary, such as barber licenses and salon permits.

Furthermore, it is important to establish strong contracts with clients and employees in order to protect the business and its assets. Lastly, tax implications should be taken into consideration in order to ensure compliance with state and federal laws. Ultimately, it is essential to research the various laws governing the business in order to avoid any potential pitfalls.

Choosing Staff

When starting a hair business, it is important to consider the type of staff you will need and how they can contribute to the success of the business. Being able to secure the right personnel who are passionate and knowledgeable about the craft is essential to running a successful business.

It is important to find individuals who have a strong work ethic and are professional in their demeanor. Moreover, as with any other job, staffing for a hair business should be based on the individual’s qualifications and aptitude.

Not only should staff possess the necessary qualifications and skills to execute the work, but they should also be able to work well with customers and represent the business in an ethical manner. The right staff can contribute to a business’s success and thus, the recruitment process should not be taken lightly.

Insurance is an essential part of the business and is essential to cover any losses should there be any unfortunate events or accidents that occur.

Insurance will also help protect against damage or theft of equipment, as well as cover any liabilities you may face as a result of a customer’s injury. A reputable insurer should be selected and all insurance policies reviewed in detail to ensure that you are covered for all eventualities.

In addition, it is important to set aside any potential costs so that the necessary insurance premiums can be paid. With the right insurance in place, you can be certain that your business will be safe from any unexpected expenses and are covered financially should the worst happen.

Choosing a Business Name

Choosing a business name is an important first step when starting a hair business. Many things should be considered when coming up with a name for your business, such as what it will reflect about the type of services you provide, its availability and if it can remain relevant for the long term.

When selecting a business name, think of a name that is descriptive, witty, memorable and representative of the services you provide. Ideally, the business name should be easy to pronounce and spell so that customers and potential customers can easily remember and search for it when necessary.

It is also important to make sure that the name chosen isn’t already being used by another business within the same geographical area. Additionally, be sure to do a background check to ensure that the name is able to be used as a trademark for your business.

Lastly, be sure to check with your local municipal office or regional government to make sure that the name you have chosen is properly registered as a business.

Services and Products

Before starting a hair business, it is important to consider the services and products that you will offer. Decide which services you will provide, such as cuts, color, styling, and extensions.

Research the best products for these services and decide whether you want to offer professional products or not. Consider the cost of products versus the likelihood of customer satisfaction. Conduct market research on customers in your area to assess the demand and pricing for hair services and products.

Additionally, decide if you want to offer additional services, such as makeup application or wig styling. Determine what your target customer is and develop marketing strategies to reach them.

Finally, decide on a pricing structure for your services and products and create a budget. Consider all these factors before starting a hair business to make the process smooth and successful.

Suppliers and Manufacturers

Before starting a hair business, it is important to consider your suppliers and manufacturers. It is important to research and find reliable and high-quality suppliers who can provide your business with the products you need.

You will also want to make sure that all of the suppliers and manufacturers you choose meet all legal and safety requirements to ensure safety for your customers. Prices and shipping costs are also an important factor to consider when choosing  hair extensions wholesale suppliers and manufacturers for your business.

It is important to have a good working relationship with the suppliers and manufacturers in order to ensure the quality of their products and services. Additionally, you must research the competition in order to understand the costs associated with each supplier and what services they provide.

Before starting a hair business, there are several pieces of equipment that you need to consider. You will need to have a comb, a brush, scissors, and a blow dryer to style the clients’ hair. For cuts and color services, you should invest in a quality pair of shears and color tubs, clips, and foiling supplies.

You may also want to look into investing in professional curling irons, flat irons, and other styling tools. Other items such as salon stations, barber chairs, and salon furniture should also be taken into consideration.

Additionally, make sure the area is properly organized for the safety and convenience of clients and stylists alike. When selecting products, be sure to consider factors such as quality, price, and availability.

Lastly, you should carefully consider the space of your salon and think about any additional accessories you might need such as a shampoo bowl or a nail dryer. Taking these factors into account will help you when setting up a successful hair business.

Pricing 

When considering pricing for a hair business, it’s important to consider the services you will be providing, the cost of materials, and the current market rates for similar services. Start by researching the industry and determine what rates competitors in the area are charging.

Then, take into account your overhead costs, like rent, supplies, and equipment. Consider breaking down the services into categories and setting different rates for each category, to account for the skill and experience level of the stylist.

If you are offering hair extensions or coloring services, factor in any additional costs you will incur due to the additional supplies and time investment. With the right pricing, you can generate enough profit to ensure your business’s success.

Dealing With the Competition

When starting a hair business, it is important to consider the competition. Understand who your competitors are in the hair industry both locally and nationally, and what services and products they offer and the prices they charge.

Researching how the competition is marketing their services and products can help you develop a unique competitive edge. Make sure your products and services are unique and of a higher quality than those offered by the competition to attract customers.

It is also important to find a way to stand out from the competition. Think about unique incentives, such as discounts for loyal customers, exclusive access to certain services or products, and unique loyalty programs. Lastly, make sure your pricing is competitive and appropriate for the type of services and products you offer.

Marketing and PR

Before starting a hair business marketing and PR, there are many important things to consider. The most important aspect of any successful hair business is brand awareness. If people don’t know about your business, it won’t survive.

As such, it’s important to think about how you will bring your brand to market and bring it to potential customers . You need to develop a marketing plan that will help you target the right people, and public relations efforts that will help spread the word about your business.

Additionally, you should consider what type of media you will be using to market your business and create publications and content to promote it. Finally, consider what types of promotions and discounts you can offer to entice customers and build relationships with them. All of these items need to be addressed to ensure the success of your hair business marketing and PR efforts.

Getting Support

When starting a hair business, it is important to consider the support available to ensure success. A good place to start is by researching the local community and possible funding opportunities or grants.

Networking is also important, in order to connect with other business owners in the industry and acquire valuable information and advice. Seeking out mentors, either in or outside the business industry, can also prove to be beneficial.

Incorporating feedback from customers is important too, as it can act as an assessment of the business’s direction and how to improve it. Finally, large networks of customer support and a reliable online presence are key.

This can be achieved through marketing and advertising in order to create awareness of the business. With the right support from the local community, customers, and mentors, success can be achieved with a hair business.

Starting a Hair Business the Right Way

Overall, hairpreneurship is an innovative and effective way to establish success when starting a hair business.

For those looking to dive into the world of hairpreneurship, understanding the fundamentals, developing a plan, and staying the course are essential for long-term success. Make the most of your hairpreneurship journey and start your road to success today!

Visit our main blog for more informative articles!

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How to Start a Profitable Hair Business [11 Steps]

Nick

By Nick Cotter Updated Feb 02, 2024

image of a hair business

Business Steps:

1. perform market analysis., 2. draft a hair business plan., 3. develop a hair brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for hair., 6. open a business bank account and secure funding as needed., 7. set pricing for hair services., 8. acquire hair equipment and supplies., 9. obtain business insurance for hair, if required., 10. begin marketing your hair services., 11. expand your hair business..

Before launching your hair business, it is crucial to gain a deep understanding of the market. A thorough market analysis will help you identify your target customers, understand your competition, and position your product or service effectively. Here are some key points to consider:

  • Analyze the demographics of your potential customer base, considering factors such as age, gender, income level, and purchasing habits to tailor your marketing and product offerings.
  • Research current trends in the hair industry, including popular styles, treatments, and products, to ensure your business stays relevant and competitive.
  • Identify your main competitors, evaluate their strengths and weaknesses, and learn from their strategies to differentiate your brand and offer unique value propositions.
  • Assess the pricing strategies within the market to determine a competitive yet profitable price point for your products or services.
  • Understand the legal and regulatory environment of the hair industry, ensuring that your business complies with all relevant laws and standards.
  • Consider the impact of technology and online retail on the hair industry and adapt your business model to leverage e-commerce platforms and social media marketing.

image of a hair business

Are hair businesses profitable?

Hair businesses can be highly profitable if managed properly. Many hair businesses have strong customer loyalty, and repeat business helps to keep overhead costs down and profit margins high. Additionally, hair businesses often offer additional services such as styling, coloring and products that add to their revenue potential.

Creating a comprehensive business plan is a crucial step when starting your hair business. This document will serve as your roadmap, setting the foundation for your venture's success. Below are key elements to include in your hair business plan:

  • Executive Summary: Briefly describe your business, the products or services you will offer, your target market, and your goals.
  • Market Analysis: Research the hair industry, identify your target demographic, and analyze your competitors to find a niche or competitive edge.
  • Organization and Management: Outline your business structure, detail the management team, and describe your staffing needs.
  • Services and Products: Provide a detailed list of hair services and products that you plan to offer, including any unique selling propositions.
  • Marketing and Sales Strategy: Explain how you plan to attract and retain customers, your pricing strategy, and your sales process.
  • Funding Request: If applicable, specify the amount of funding needed to start or expand your business, and how the funds will be used.
  • Financial Projections: Offer an overview of projected revenues, expenses, and profitability over the next 3-5 years to illustrate financial viability.

How does a hair business make money?

A hair business can make money by providing services to its customers, such as haircuts, styling, and coloring. They can also sell products related to hair care and styling. To target a specific audience, the business might specifically advertise to women with shoulder-length or longer hair. Additionally, they could target those who are looking to get a formal updo for a special occasion, such as a wedding or prom. Finally, they can create promotional offers to entice new customers who are looking for a good deal.

Developing a hair brand is a pivotal step in starting a hair business as it sets the tone for your company's identity, values, and the products you offer. Your brand is how customers will recognize and remember you, so it's essential to create a strong and cohesive image. Follow these guidelines to build a brand that resonates with your target audience:

  • Define Your Brand Identity: Determine your brand's personality, values, and unique selling proposition. Consider what makes your hair products or services stand out from the competition.
  • Choose a Memorable Name and Logo: Your brand name and logo are the first things people will notice. Ensure they are distinctive, easy to remember, and reflect the essence of your brand.
  • Select a Color Scheme and Typography: Visual elements, like color and font, play a critical role in branding. Select a color palette and typography that align with your brand's personality and appeal to your target market.
  • Develop a Brand Voice: Your brand voice is how you communicate with your audience. Whether it's professional, friendly, or quirky, make sure it's consistent across all marketing materials and platforms.
  • Create a Brand Story: Share the story behind your brand. Stories are memorable and can create emotional connections with customers, encouraging loyalty and word-of-mouth referrals.

How to come up with a name for your hair business?

The process of coming up with a name for a hair business can be quite difficult. Start by understanding what makes your hair business unique and figure out the best approach to capture that in the name. Brainstorm ideas that reflect your brand’s identity, values, and messages. After you have several ideas written down, ask people you trust for their opinion on which ones they like best. Finally, search to make sure no one else is using the name before you make it official. Taking these steps will help you to come up with the perfect name for your hair business.

image of ZenBusiness logo

Once you've laid the groundwork for your hair business, formalizing your business registration is a critical step to legitimize your operations and protect your brand. Registering your business is a process that varies depending on your location, but generally involves a few common steps. Here’s what you need to do:

  • Choose a Business Structure: Decide whether your hair business will be a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each has different legal and tax implications.
  • Register Your Business Name: Check for the availability of your chosen name and register it with the appropriate state agency. If you plan to operate under a different name than your legal name, file a 'Doing Business As' (DBA) registration.
  • Obtain Necessary Licenses and Permits: Depending on your location and the nature of your hair business, you may need specific licenses, such as a cosmetology license or a general business license. Check with your local and state governments for requirements.
  • Apply for an EIN: If you have employees or operate as a corporation or partnership, you'll need an Employer Identification Number (EIN) from the IRS for tax purposes.
  • Register for State Taxes: If applicable, register with your state tax department to handle sales tax, payroll tax, and any other state taxes.
  • File Necessary Documents: Submit any required formation documents, such as Articles of Incorporation or Organization, to the relevant state authorities.

Resources to help get you started:

Explore valuable resources specifically curated for hair bonnet entrepreneurs aiming to understand market trends, optimize operations, and accelerate business growth:

  • Beauty Business Journals: Publications that offer insights on the latest trends, consumer behavior, and innovation within the hair care and beauty industry. These journals often have special segments on accessories like hair bonnets.
  • Industry Reports: Comprehensive market analysis reports from research firms such as IBISWorld or Mintel, providing detailed data on market size, consumer demographics, and competitive landscape for the hair bonnet sector.
  • Online Retailer Blogs: Blogs from platforms such as Shopify or Etsy, offering tips on running an e-commerce business, marketing strategies, and case studies of successful hair accessory businesses.
  • Fashion and Beauty Trade Shows: Events where entrepreneurs can network with suppliers, discover new materials, and gain insights from industry leaders. Specific sections or booths are dedicated to hair accessories and care products.
  • Email Newsletters: Regular updates from beauty and fashion industry influencers or trade groups that provide news, marketing tips, and business strategies relevant to the hair bonnet market.
  • Social Media Analysis Tools: Services like BuzzSumo or Hootsuite that help entrepreneurs track trending topics, consumer preferences, and competitor performance within the hair bonnet niche on social platforms.

Starting a hair business requires not only a flair for styling but also a strict adherence to local regulations. Before you open your doors, make sure you have all the necessary licenses and permits to operate legally and safely. Here's what you need to consider:

  • Check Local Business Licenses: Contact your city or county's business licensing office to find out the specific licenses required to operate a hair business in your area.
  • Professional Cosmetology License: Most areas require hair stylists to have a valid cosmetology or barber license. This typically involves completing a certain number of hours of training at a recognized school and passing a state board exam.
  • Salon License: If you are opening a salon, there may be a separate salon license that you need to acquire, which ensures your establishment meets health and safety regulations.
  • Building Permits: If you're renovating a space for your hair business, ensure you have the necessary building permits for construction and signage.
  • Health and Safety Permits: Since salons deal with chemicals and tools that can be hazardous, a health and safety inspection may be required to get a permit from the local health department.
  • Specialty Services Permit: If you're offering services like hair coloring or chemical treatments, additional permits may be required for those specific services.

What licenses and permits are needed to run a hair business?

Depending on where you are located and what services you plan to offer in your hair business, you may need any combination of permits, licenses, and certification. Some common requirements for running a hair business include a business license, cosmetology/manicurist license from your state's board of cosmetology, and additional permits issued by your local municipality. Depending on your location, you may also need to obtain an environmental health permit from your county health department.

Starting a hair business requires careful financial management, which is why opening a business bank account and securing the necessary funding are essential steps. A separate account will help you keep personal and business finances distinct, while funding will fuel your growth. Follow these guidelines to get started:

  • Research banks that offer business banking services and compare their fees, services, and customer support. Choose one that best fits your business needs.
  • Prepare the necessary documents to open a business bank account, such as your business license, EIN (Employer Identification Number), and ownership agreements.
  • Consider applying for a business credit card to build credit history for your hair business and to keep track of expenses more efficiently.
  • Explore various funding options, including business loans, lines of credit, or investors, if your initial capital isn't enough to cover startup costs.
  • Look into special grants or funding opportunities for small businesses, particularly for those owned by women, minorities, or veterans, if applicable.
  • Create a solid business plan to present to potential lenders or investors, showcasing your market analysis, projected financials, and growth strategy.

Setting the right pricing for your hair services is crucial to the success of your business. It requires a balance between being competitive in the market and ensuring profitability. Consider the following points to help guide you in establishing your pricing structure:

  • Research local competitors to understand the going rates for similar services, ensuring your prices are neither too high nor too low.
  • Calculate your costs, including rent, supplies, labor, and utilities, to determine the minimum price you need to charge to cover expenses and make a profit.
  • Consider the level of experience and expertise you or your stylists bring to the table, as higher skill levels can command higher prices.
  • Be transparent with your pricing by displaying it clearly in your salon and on your website to build trust with clients.
  • Offer tiered pricing for different levels of stylists, if applicable, to cater to a wider range of customers.
  • Introduce special promotions or discounts for new clients or off-peak times to attract business without undervaluing your services.
  • Regularly review and adjust your prices as necessary to reflect changes in the market, cost of supplies, and the growing expertise of your stylists.

What does it cost to start a hair business?

Initiating a hair business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $12500 for launching such a hairbusiness. Please note, not all of these costs may be necessary to start up your hair business.

Starting a hair business requires not just skill and creativity, but also the right tools and supplies. From basic combs and scissors to specialized styling tools, having the right equipment is essential for providing top-notch services to your clients. Below is a list of essential items you should acquire:

  • Basic Tools: Scissors, combs, brushes, and hair clips.
  • Electrical Appliances: Hair dryers, straighteners, curling irons, and clippers.
  • Hair Care Products: Shampoo, conditioner, hair spray, gels, and serums.
  • Coloring Supplies: Hair dye, bleach, gloves, and application brushes.
  • Sanitation Supplies: Barbicide, disinfectant spray, towels, and aprons.
  • Personal Protective Equipment (PPE): Gloves, masks, and protective eyewear for safety.
  • Salon Furniture: Styling chairs, shampoo bowls, and hairdressing trolleys.
  • Salon Accessories: Mirrors, hairdressing capes, and appointment books or software.

List of software, tools and supplies needed to start a hair business:

<ul><li>Styling chairs (approximately $200-$500 each)</li><li>Towels and cloths (approximately $50-$100) </li><li>Hair cutting scissors (approximately $30-$60) </li><li>Hairstyling tools (approximately $15 each) </li><li>High-end products (approximately $10-$50) </li><li>Hair color products (approximately $20-$150 depending on brand) </li><li>A computer (approxiamtely $400 - $1,000) </li><li>"Point of Sale" software and salon management software (from around $0 to around $600 depending on the provider and features) <,uL <,uL Hair dryers and straighteners, curlers, brushes and combs ( approximately 5-25 each depending on the brand and type of product) <,uL Washing basins ($100 - $200 each)

Securing the right business insurance is crucial for protecting your hair business against unforeseen events and liabilities. It provides a safety net for your investment, your employees, and your clients. Here's a simplified guide to help you obtain the necessary insurance:

  • Research Insurance Requirements: Find out if your state or local government mandates specific insurance for hair businesses. This may include general liability insurance, professional liability insurance, or workers' compensation insurance.
  • Assess Your Risks: Consider the potential risks associated with your hair business, such as property damage, lawsuits from unhappy clients, or employee injuries, to determine the types and levels of coverage you need.
  • Shop Around: Contact multiple insurance providers to compare coverage options and rates. Consider working with an insurance agent who has experience in the beauty industry.
  • Understand Policy Details: Carefully read the terms and conditions of each policy, paying close attention to coverage limits, deductibles, and exclusions.
  • Stay Compliant: Once you've selected a policy, keep your insurance up to date and in compliance with any regulatory changes to ensure continuous coverage.

Now that you've perfected your hair services, it's time to attract clients and grow your business. Effective marketing is key to standing out in the hair industry. Here are some strategies to help you begin marketing your hair services:

  • Build a Strong Brand Identity: Create a memorable logo, choose a color scheme, and develop a brand voice that reflects the unique personality of your business. Consistently use these elements across all marketing materials.
  • Develop a Professional Website: Launch a user-friendly website that showcases your services, prices, and portfolio. Include a booking system for client convenience.
  • Leverage Social Media: Utilize platforms like Instagram, Facebook, and Pinterest to showcase your work, share customer testimonials, and engage with your audience. Regularly post before-and-after photos to highlight your skills.
  • Network Locally: Attend local events, join community groups, and partner with other local businesses to gain exposure. Offer your services at community events or charitable functions to build goodwill.
  • Encourage Word-of-Mouth: Ask satisfied customers to refer friends and family. Consider offering a referral discount to incentivize word-of-mouth marketing.
  • Utilize Online Advertising: Invest in targeted ads on social media and search engines to reach potential customers in your area who are searching for hair services.

Once your hair business has established a solid foundation and loyal customer base, it's time to consider growth and expansion. Expansion can take many forms, from increasing your product line to scaling your operations. Here are a few strategies to help you expand your hair business effectively:

  • Introduce new products or services, such as custom wigs, hair extensions, or specialized treatments that cater to a broader range of customer needs.
  • Invest in marketing to reach a wider audience. This could involve social media advertising, collaborating with influencers, or exploring new marketing channels.
  • Consider e-commerce if you haven't already. Selling your products online can significantly increase your reach and sales potential.
  • Explore partnerships with other businesses or salons, which can provide referral opportunities and expand your network.
  • Open new locations or franchise your business to create multiple revenue streams and increase your brand presence.
  • Offer training or education programs, positioning your business as an expert in the field and creating an additional income source.
  • Regularly seek feedback from customers and adapt your offerings to meet changing trends and preferences in the hair industry.

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Hair Extensions Business Plan Template

Written by Dave Lavinsky

Hair Extensions Business Plan

You’ve come to the right place to create your Hair Extensions business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Hair Extensions businesses.

Below is a template to help you create each section of your Hair Extensions business plan.

Executive Summary

Business overview.

Hairapy Extensions is a new hair extensions shop located in the heart of Los Angeles, California. Our mission is to make every customer feel empowered and beautiful by providing them with the perfect hair extensions and hair care products. We do this by offering every style and color imaginable so that every customer can find exactly what they want to feel and look their best. With our amazing customer service and enormous selection, we hope to be the most popular hair extensions store in the city in the next few years.

Hairapy Extensions is founded by Angelina Matthews, who has been a hairstylist for five years. Throughout her career, he has sold and inserted hair extensions for hundreds of customers and has found it to be the most enjoyable part of her job. As such, she has extensive knowledge of hair extensions and how to insert and care for them. Her experience and expertise will be the company’s most valuable asset.

Product Offering

Hairapy Extensions will showcase a wide variety of hair extensions throughout our store. Our hair extensions will come in all colors, from natural hair colors to fun dyed colors like pink or blue. We guarantee that every customer will find the perfect hair extensions that fit their style and budget. We also sell hair care supplies and accessories to ensure that our customers’ new hair extensions last as long as possible.

Customer Focus

Hairapy Extensions will serve the community residents of Los Angeles, California, and its surrounding areas. We will primarily target female and female-identifying people, as this group is traditionally the most likely to buy hair extensions and hair care products. We also expect most of our clientele to be in the age range of 20-40, as young women are much more likely to get hair extensions than women in other age ranges.

Management Team

Hairapy Extensions is led by Angelina Matthews, an experienced hairstylist and salon manager with over five years of experience. Throughout her career, she found inserting hair extensions to be the most enjoyable aspect of her job and wanted to build a company that solely focuses on hair extensions. After years of planning, she is finally ready to start her business. Her extensive knowledge of hair extensions and the industry will be the company’s most valuable asset.

Success Factors

Hairapy Extensions is primed for success by offering the following competitive advantages:

  • Friendly and attentive staff who will go out of their way to find the perfect hair extensions for each customer.
  • Comprehensive supply of hair extensions that includes every color and texture imaginable.
  • Cost-effective pricing that rivals the competition without sacrificing service or quality.

Financial Highlights

Hairapy Extensions is currently seeking $280,000 to launch. The funding will be dedicated to the store design and buildout, working capital, overhead, supplies, and marketing costs. The breakout of the funding is below:

  • Store design/build: $150,000
  • Initial inventory, supplies, and technology: $50,000
  • Payroll, rent, and overhead costs (3 months): $30,000
  • Working capital: $25,000
  • Marketing expenses: $25,000

The following graph below outlines the pro forma financial projections for Hairapy Extensions.

Hairapy Extensions Pro Forma Financial Projections

Company Overview

Who is hairapy extensions.

Hairapy Extensions is a new hair extensions shop located in the heart of Los Angeles, California. We provide an enormous selection of hair extensions to choose from, with every style and color imaginable. Customers can get natural colors to match their natural hair, such as blond, brunette, or red. They can also get dyed hair extensions if they want to add some color to their hair, such as blue, purple, pink, or green. Customers can expect to find the perfect hair extensions that fit their style and budget when shopping with Hairapy Extensions.

  Our store will be located in downtown Los Angeles, nearby fashion stores, hair salons, and other hair care stores. We will also have an online shop for those who don’t live in Los Angeles or can’t make it to our location to make a purchase in person.

Hairapy Extensions’ History

Angelina Matthews incorporated Hairapy Extensions as an S-Corporation on August 1st, 2023. Angelina has identified a potential retail location and is in the process of negotiating a lease. The company is currently being run out of her home but will move to the retail space once the lease is finalized.

Since its incorporation, Hairapy Extensions has achieved the following milestones:

  • Found a retail space and signed a Letter of Intent to purchase it
  • Developed the company’s name, logo, and website
  • Determined equipment and inventory requirements
  • Begun recruiting key employees with previous experience in the beauty/hair care industries

Hairapy Extensions’ Services

Hairapy Extensions will sell a wide variety of hair extensions online and in our store. We will offer several styles and every color imaginable, including numerous shades of blond, brown, red, pink, purple, and blue. Whether a customer wants longer hair, a style change, or a little bit of color without dye, we can find the perfect extension to fit their needs and budget. We also sell hair care products that ensure the extensions last as long as possible.

Industry Analysis

Hair extensions have been a part of style and fashion for centuries. In the past, hair extensions exemplified power and position and created lasting fashion trends. They were used to thicken and lengthen hair as well as to maintain a youthful appearance. It is believed that many powerful figures used hair extensions, including Cleopatra and Queen Elizabeth I.

The current hair extension industry is a thriving industry that helps many people show off their unique style and feel more comfortable in their bodies. Many people purchase hair extensions when they want to try a certain hairstyle but can’t pull it off naturally. Hair extensions are also popular amongst people who want to color their hair without destroying it with dye and bleach. Finally, hair extensions help many people suffering from thinning hair due to age or illness.

According to Future Market Insights, the current hair extensions industry was valued at $2.38 billion last year and is expected to grow at a compound annual growth rate (CAGR) of 5.3% from now until 2032. The industry is positively affected by the rise in disposable income as well as beauty trends created and spread by social media. These trends are expected to continue, and the hair extensions industry is expected to thrive for the foreseeable future.

Customer Analysis

Demographic profile of target market, customer segmentation.

Hairapy Extensions will primarily target the following customer profiles:

  • Women/female-identifying people
  • Young adults
  • People with conditions that affect their hair

Competitive Analysis

Direct and indirect competitors.

Hairapy Extensions will face competition from other businesses with a similar company profile. A summary of the competitor companies is below.

Hair Heaven

Hair Heaven is a major online warehouse that sells wigs and hair extensions. They have every color and style imaginable, which makes them an incredibly popular hair extensions supplier nationwide. They are particularly popular with beauty supply stores as they can sell their products wholesale. Though Hair Heaven is a popular source of hair extensions, it is a completely online store. Customers who want to talk with a professional and purchase hair extensions in person will be more inclined to come to Hairapy.

Lanie’s Wig & Hair Supply

Lanie’s Wig & Hair Supply is a small, locally-owned supplier of all things hair care. This includes organic shampoos, hair extensions, wigs, and accessories. They offer many colors and styles of wigs and hair extensions to choose from, and many customers report being satisfied with their products. The store also has a few hair stylists on standby who can help them clean and style their hair extensions and wigs as needed. Though Lanie’s will continue to thrive, their selection is much smaller than ours. Our inventory will be far more enticing, and we will be able to find hair extensions for far more customers than Lanie’s can.

Sally’s Salon

Sally’s Salon is a popular and hip hair salon business located in downtown Los Angeles, California. People all over the city come here to get their hair cut and styled to keep up with current fashion and trends. In addition to providing hair styling services, Sally’s sells a large assortment of wigs, hair extensions, and hair care accessories. Customers can choose some hair extensions and have a stylist insert and style them all in the same appointment. Since Sally’s is such a popular salon, we expect them to be our biggest direct competitor.

Competitive Advantage

Hairapy Extensions will be able to offer the following competitive advantages over their competition:

  • Management : Our management team has years of experience in the hair care industry, which allows us to sell to and serve customers in a much more sophisticated manner than our competitors.
  • Friendly Staff : Our staff understands that buying hair extensions can be a stressful and difficult process, especially for those who need them to hide their thin or damaged hair. Hairapy Extensions only hires the friendliest staff who can work with these customers in a compassionate manner.
  • Inventory : Hairapy Extensions aims to own the largest and most diverse collection of hair extensions that can be found anywhere in Los Angeles, California.

Marketing Plan

Brand & value proposition.

Hairapy Extensions will offer a unique value proposition to its clientele:

  • Friendly and helpful staff
  • Affordable pricing on all products
  • A large inventory of unique and stylish hair extensions that include every color and style imaginable

Promotions Strategy

The promotions strategy for Hairapy Extensions is as follows:

Influencer Marketing

Hairapy Extensions will partner with local beauty influencers to spread the word about the company. The company will offer discount codes to the influencers’ audiences to entice them to shop our products.

Angelina Matthews will invest in appealing billboards and marketing techniques for the company. The billboards will be located in highly trafficked areas of Los Angeles where the visibility is highest.

Social Media

Hairapy Extensions will have Instagram and Facebook business profiles where Angelina will post professional and appealing pictures that will draw in anyone looking for hair extensions. The posts will be able to show the beautifully designed store as well as satisfied customers with their new hair extensions. Angelina will also post upcoming specials and special offerings.

Website & SEO Marketing

The marketing assistant will design and manage a comprehensive and attractive website for Hairapy Extensions. The website will be easy to navigate and include pictures of our products, pricing, contact information, and location. The SEO will also be managed to ensure that anyone searching “hair extensions near me” or “hair extensions Los Angeles” will see Hairapy Extensions listed at the top of the Bing or Google search engine.

The pricing of Hairapy Extensions will be moderate and on par with competitors so customers feel they receive value when buying our hair extensions.

Operations Plan

The following will be the operations plan of Hairapy Extensions. Operation Functions:

  • Angelina Matthews will be the Owner and President of the company. She will oversee the general operations of the store as well as provide customer services and sales. Angelina will spend the next several months hiring the following staff:
  • Several associates who will provide customer service, sell products, and help insert hair extensions for customers.
  • An Accountant who will manage all client invoicing, billing, and payables.
  • A Marketing Assistant who will run all the marketing and promotions campaigns.

Milestones:

Hairapy Extensions will have the following milestones completed in the next six months.

  • 9/1/202X – Finalize lease agreement
  • 9/15/202X – Begin build out and design
  • 10/1/202X – Begin hiring essential staff
  • 10/15/202X – Finish build out and design; final walk-through of store
  • 11/1/202X – Begin marketing campaign
  • 11/15/202X – Grand opening of Hairapy Extensions

Though Angelina has never run a business herself, she has been in the industry long enough to have an in-depth knowledge of the operations and marketing sides of the business. She will also hire other professionals who can help with the other aspects of the business she is unfamiliar with.

Financial Plan

Key revenue & costs.

The revenue drivers for Hairapy Extensions will be the sales of our hair extensions and other hair products.

The major costs for the company will include the costs of inventory, payroll, and overhead. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.

Funding Requirements and Use of Funds

Key assumptions.

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

  • Average number of daily customers: 50
  • Average product price: $250
  • Annual Lease: $50,000

Financial Projections

Income statement, balance sheet, cash flow statement, hair extensions business plan faqs, what is a hair extensions business plan.

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

You can easily complete your Hair Extensions business plan using our Hair Extensions Business Plan Template here .

What are the Main Types of Hair Extensions Businesses? 

There are a number of different kinds of hair extensions businesses , some examples include: Hair extension services, Hair extension stores, and Online hair extension sales.

How Do You Get Funding for Your Hair Extensions Business Plan?

Hair Extensions businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Hair Extensions Business?

Starting a hair extensions business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Hair Extensions Business Plan - The first step in starting a business is to create a detailed hair extensions business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your hair extensions business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hair extensions business is in compliance with local laws.

3. Register Your Hair Extensions Business - Once you have chosen a legal structure, the next step is to register your hair extensions business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your hair extensions business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Hair Extensions Equipment & Supplies - In order to start your hair extensions business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your hair extensions business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

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Creating a Successful Salon Business Plan: A Step-by-Step Guide

Jovana Smoljanovic Tucakov

  • January 23, 2024
  • For Salon Owners

illustration of a salon business plan

If you plan to open a salon, besides setting the objectives, you’ll need to know how you’re going to achieve them. Or, in other words, you need a sound salon business plan.

Creating a salon business plan can help you identify specific goals and strategies, as well as provide guidance on how you can reach them and see your business thrive. Knowing how to craft your plan is vital, as it can easily make or break your salon business.

This article will walk you through how to create a salon business plan step-by-step.

Why is a Salon Business Plan so Important?

What is a salon business plan.

A salon business plan is a formal, written statement of the goals you want to set for your business. It explains why you want to set those goals and what your plan is for reaching them. A salon business plan might also include information about the individuals or teams working toward those goals with you.

A good salon business plan gives an overview of where your business is at now and explains where you want to be in the future. It also includes marketing information and research that impact your business plan in general. In fact, think of your salon business plan as a road map where you show where you are now and explain where you’re headed and what it will take to get there.

As you build your salon business plan, it’s important to include information about the process of opening your salon. This information is important because, right from the get-go, you lay the groundwork for success. This groundwork then helps you run and grow your salon business .

Why is a business plan essential for the success of your salon?

A salon business plan is an essential tool for the growth and success of any salon. It is important as it helps you to jot down your ideas and thoughts, arrange them in an organized manner, and develop an overall plan to implement them.

Writing a salon business plan also enables you to identify potential difficulties and challenges that may arise in the future. Once you’ve identified them, you can create a strategy to address them.

Having a business plan is just one of the essential steps to opening your very own salon – to see what other boxes need to be checked, download our Opening a Salon checklist PDF :

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business plan for online hair business

If you have a salon that is already established and doing well, it might seem like a lot of work and trouble to sit down and make a business plan. But if you want your salon to keep thriving and growing, having clearly defined goals and plans is really important.

Benefits of having a sound salon business plan

A well-crafted salon business plan comes with many benefits:

  • A Greater Success Rate : A good business plan allows you to mitigate risks, make better-informed decisions, and improve your chances of running a successful salon.
  • Better Financial Management : A well-written salon business plan includes your budget, financial projections, and expense management. This helps you keep tabs on your salon’s financial health, which leads to financially sound decisions.
  • Improved Marketing Strategies : A sound business plan requires you to conduct market research and develop marketing strategies. Then you can identify your target market, predict customer preferences, and adjust your marketing efforts to be more effective.
  • Increased Operational Efficiency : A salon business plan ensures that you implement efficient operational processes. This allows your salon to keep running smoothly and leads to increased customer satisfaction.

How to Write a Salon Business Plan in Just 12 Steps

  • Write an executive summary
  • Create effective mission and vision statements
  • Include a salon business description
  • Analyze the market and identify your target audience
  • Check what your competitors are up to
  • Identify products and services you wish to offer
  • Craft a sound financial plan
  • Tackle management and organization
  • Plan your everyday operations
  • Think about your marketing strategy
  • Think about sales
  • Don’t forget to include risks

1. Write an Executive Summary

An executive summary explains what your salon is like and why it is successful. In most cases, a potential investor would go straight to this section to get an idea of what the business is like. If the executive summary isn’t interesting or compelling, they won’t read any further. That makes it an essential section and the first step when writing your salon business plan.

The executive summary should include information that is relevant to stockholders or investors. Include details about your target market, business objectives, and financial projections. Don’t forget to add information about your products and service menu, as well as your vision and mission. The main idea is to let the reader know what’s up, grab their attention, and make them want to keep reading.

Key components

An executive summary of every salon business plan should include the following information:

Business overview : Introduce the reader to your salon. Include information like the name and location, and a brief description of your core values, vision, and mission.

Market analysis : Provide a summary of your research on your target market. Include details about the target market’s trends and demographics. Then highlight gaps or opportunities in the market that you plan to capitalize on.

Your business objectives : Clearly identify your business goals and state what you want your salon to achieve. This might include details like expansion plans, revenue targets, or customer acquisition goals. In this section, you can include any goals that will affect your salon’s growth and success .

Products and Service menu : Give a brief overview of what your salon offers. Make sure your unique features and competitive advantages stand out. Explain what your salon is doing to meet the needs of the target market.

Marketing strategies : Explain your marketing strategy. This includes information about advertising, branding, social media, and so on. If you have any original ideas for how to make your salon stand out from the competition, make sure to highlight them.

Your financial projections : Provide a detailed financial plan overview. Include any information about profit targets, expenses budget, and revenue forecasts. Highlight any achievements or milestones you have reached that prove the financial viability of your salon.

Any funding requirements : Clearly explain the funding requirements for your salon. Explain how much funding you need, how you will use the funds and any other potential sources of funds you have.

2. Create Effective Mission and Vision Statements

Girl standing on growing arrows and looking through binoculars. Woman searching for opportunity or job flat vector illustration. Business strategy, goal, pathway, career concept

Image by pch.vector on Freepik

A mission statement is a short explanation of why you created your salon, what your goal is, and how you want to achieve it. Your mission statement is an important part of your salon business plan, so it should be the first thing you see on the page. It’s a good idea to put it at the top of the page where you and others can see it and be reminded of your purpose.

The mission statement gives you the chance to express your purpose and intention. It not only explains why you started the salon, but it also explains what you have to offer. It shows what sets you apart from the competitor salons and captures the spirit with which you run your salon.

In just a few words, your mission statement can determine what drives your business.

Defining your purpose and aspirations

Part of the purpose of a mission statement is to define your purpose and what you offer. Your purpose is the reason you exist and what you have to offer potential customers. To get an idea of what your mission statement should include, ask yourself “Why does my salon exist?”

A vision statement serves a similar purpose. It explains where you want to take your business and what you hope to achieve. It defines your goals and the future impact you want to have. To identify the key points that will go into your vision statement, ask yourself “Where do I see my salon in the future?”

Putting your purpose and your long-term goals in writing plays an important role in having a successful business plan.

How to craft mission and vision statements

Here are a few examples of things you can consider when you are writing your mission statement and your vision statement. This will help you come up with ideas that reflect your identity and direction as a salon.

  • Have a brainstorming session with your team. Ask them “What do you think makes this salon unique? What do you love about working here? What do you personally want to achieve?”
  • Identify core values. What specific values do you want to uphold in everything you do? Some examples of core values are: creativity, integrity, excellence, diversity, and
  • Put your mission statement in writing. Use your core values as a starting point. Then write a short, simple sentence that sums up your salon’s purpose and what you offer to clients.
  • Write your vision statement. Write a short, inspiring sentence that describes your long-term goals for the salon and what you want to achieve.
  • Review and refine. Once you have your mission and vision statements written down, take some time to review them. Make sure your statements are both clear and concise, as well as compelling.

In case you need a bit of help, take a look at some brilliant salon mission statement examples sure to inspire you.

Also, writing an effective slogan will only underline the message you wish to send, so make sure you have one ready.

3. Include a Salon Business Description

Company description.

A company description is a quick overview of your business that explains the core values of your company. This part of your salon business plan is all about giving a quick and simple rundown to the readers. It’s meant to give them a general idea of what your business is all about.

Outlining the details

Your salon business description provides all the basic details about your salon. You should include the name of your salon, the location, and your contact information. Also, include the details about the legal structure of your salon. This information is the foundation of the rest of your business description. Thus, it’s important that the information is accurate and up to date.

Company history and brand story

In this section, you should provide some information about the background and history of your salon. When was your business founded? What led to you starting your business? Whatever your story is, this section is your chance to tell it.

Describe what you offer and your USP

This section details what your clients can expect to find at your salon. You can use this section to provide details about new beauty products or services you are offering. If you are working on your own line of products, this is also a good place to mention it and provide an estimated timeline for when it will be available.

Your salon’s USP (unique selling proposition) is what makes your salon stand out from the rest of the market. It is very important to highlight your USP in your business description.

4. Analyze the Market and Identify Your Target Audience

The market analysis shows that you’ve put some serious thought into your target audience. You’ve also done some research to find out what the competitors are missing out on. What’s more, it shows that you really know your area and have made some changes to your approach to fit in.

When you identify and analyze your potential clients, you are better able to adjust your marketing strategy to catch their eye.

Conducting market research

Market research means collecting data about the needs, preferences, and behavior of potential clients. Then you analyze this data. Market research helps you identify who your target market is and what their expectations and needs are. Based on these findings, you can create a marketing strategy that is appealing to that audience in particular.

Conducting market research also helps you identify who your competition is. Knowing this helps you get a good idea of reasonable pricing and ideal locations. Factoring this information in helps you gain and retain clients.

Here are some ideas on how you can make the entire process more interactive and fun (both for you and the participants):

Salon pop-up surveys

Set up a pop-up booth or station near popular local spots and events. Engage with passersby, offering quick surveys with a fun incentive like discount coupons for your salon. This allows you to gather diverse opinions and attract potential customers .

Instagram polls and stories

Leverage the interactive features of social media. Use Instagram polls and stories to ask your followers about their favorite salon experiences, desired services, or beauty trends. Encourage them to share their thoughts and tag friends for a chance to win a free service.

Salon open house events

Host an open house event at your salon. Invite the local community to explore your space, meet your staff, and participate in live demonstrations or mini-makeovers. Use the opportunity to collect feedback and preferences directly from attendees.

Collaborative mood boards

Create collaborative mood boards or Pinterest boards where clients and potential clients can contribute their favorite hairstyles, colors, and beauty inspirations. This not only gathers valuable insights but also fosters a sense of community and involvement.

Beauty trend workshops

Organize workshops on the latest beauty trends. Invite participants to share their thoughts on emerging styles and treatments. This not only serves as a research platform but also positions your salon as a trendsetter in the community.

Community surveys with prizes

Distribute physical or digital surveys within the local community, emphasizing the importance of their opinions. Include a prize draw or a special discount for survey participants, encouraging more people to contribute.

Interactive social media challenges

Create engaging challenges on social media platforms, encouraging followers to share their favorite salon experiences or dream makeover ideas. Use a unique hashtag to track responses and offer prizes for the most creative entries.

Beauty polls and quizzes

Develop entertaining online polls or quizzes related to beauty and salon preferences. Share these on your website and social media to capture audience insights while providing a fun and interactive experience.

By infusing creativity and engagement into your market research efforts, you not only gather valuable information but also strengthen the connection between your salon and the community. The more interactive and enjoyable the process, the more likely you are to receive enthusiastic and authentic responses from your audience.

Identifying behaviors, demographics, and preferences

Once you have information on your target market you can use it to better understand them. Here are a few things to look at:

The behavior of your target market. This refers to the way clients make purchasing decisions, their brand loyalties, and other similar behaviors. In general, behaviors can include anything that affects a client’s decision-making process.

Demographics refer to the characteristics of your potential clients.

Geographic location, educational background, and income can all impact the way clients respond to your marketing strategy.

Even the age and gender of the people you want to draw in can affect which strategies you use. Understanding this will help you create a marketing plan that resonates with the clientele you want to attract.

Then you have to factor in the preferences of your target market. What do they like and dislike? What kinds of ambiance are they drawn to? Which salon services are most popular with this group? What are their thoughts on pricing? What do they look for in customer service? All these factors play their part in whether or not a potential customer chooses your salon.

Client analysis

This part of your salon business plan is all about who your potential clients are. Depending on where your salon is, you might get certain types of people coming in. Or, it might be a mix of different types. You need to include details about who your market is made up of and what they’re like.

Here are a few things involved in conducting a client analysis for your salon:

  • Define the scope and the objective of the analysis. Include information about the services and products, the time frame, and the area your customers are coming from.
  • Collect data from a variety of sources and analyze. You can use surveys, online reviews, industry reports, interviews, and social media, as well as other sources.
  • Identify specific customer groups. This includes demographics, needs, and behaviors.
  • Create a profile for each customer group. Include descriptions of preferences, characteristics, expectations, and motivations.
  • Evaluate the salon’s current performance. How are you doing with customer retention, satisfaction, and loyalty? How much is your salon profiting?
  • Identify specific areas where you can improve customer relationships.

5. Check What Your Competitors Are Up To

A competitive analysis explains your plan for your salon to dominate the market. It is important for your competitive analysis to give a brief explanation of the existing competitors. This can include direct competition, like another salon, or indirect competition. The indirect competition includes any other option for clients to receive the products or services you offer. In this section of your salon business plan, you can bring out the strengths and weaknesses of your competition and explain how your target market views them.

Knowing your competition will help you determine what your own advantages are. Then you can capitalize on those advantages to attract and keep more customers. Once you can pinpoint your unique strengths, you are better equipped to carve out your own place in the market. It will give you a starting point to work from to identify a new way to attract customers. It may also help you find something unique to offer that no one else in the area is offering.

Conducting a SWOT analysis

To be able to succeed and stand out from the competition, it is helpful to carry out a SWOT analysis . SWOT is an acronym for strengths, weaknesses, opportunities, and threats. This analysis will help you diagnose the factors that play a role in the potential and performance of your competition.

What are the strengths of your competitors? Maybe a competing salon has a good reputation and a strong brand. Perhaps they offer a wide range of services or have a skillful team. They might have a good relationship with their suppliers, offer a clean and welcoming atmosphere, or have an optimal location.

What are their weaknesses? Perhaps they offer a limited number of services or have staff that lacks experience. They might be struggling with high overhead costs or have a difficult location. Or they may be on the losing end of high competition and/or struggle to maintain customer loyalty.

Opportunities for a salon include expansion opportunities or new services and products. Other opportunities include increased online presence, partnering opportunities, or new technology and trends.

What is a threat to a salon? Economic recessions, loss of customers to the competition, and negative reviews all threaten the success of a salon. Other threats include supply chain disruptions, legal problems, and environmental and health risks.

6. Identify Products and Services You Wish to Offer

This part of your salon business plan lays out all the different services that your salon will offer its customers. You can expect a wide range of services, from haircuts, styling, coloring, treatments, manicures, pedicures, facials, and many more. Each service is described in detail, including the techniques used, expected results, and pricing structure. We’ve also got a great selection of salon products that you can buy, like hair care items, skincare products, and beauty accessories.

By providing a comprehensive overview of the salon’s products and services, we’re showing that we’re committed to meeting all our customers’ needs and preferences. We want to make sure everyone feels welcome and satisfied with their experience at our salon. This sets the stage for a successful and thriving salon business.

7. Craft a Sound Financial Plan

financial section, as an integral part of a salon business plan

Image by vectorjuice on Freepik

Here is where you provide details about the financial history, budget, and projections for your salon. Any potential investors or lenders will be especially interested in this section of your salon business plan.

When writing this section, you should include your financial plan for your salon for the next 3-5 years, as well as your financial history going back 3-5 years. If the salon has income, include financial statements. You should also include potential funding sources and your plan for keeping your salon running.

A good budget is the foundation for any effective financial plan. A budget allows you to distribute resources like time and funds effectively. A good budget also allows you to make better decisions about saving and spending and set goals for your finances.

Start by identifying all the sources of income for your salon. This includes product sales, service fees, and so on. Then identify all the expenses your salon has, like rent, salaries, supplies, and other operational costs. You could make a category for expenses that are always the same, like rent, and another for expenses that vary from month to month, like supplies. This might help you to see patterns and identify areas where you could cut back on some costs.

Once you have identified all your income and expenses, then you can set goals. From time to time, check your progress against your budget to see how you are doing and if you can make any further adjustments.

Income streams

Adding income streams is a good way to increase revenue. The following are a few options you could explore:

  • Subscriptions : Charge fees for a set period of time instead of per transaction.
  • Advertising : Promote certain brands in-store and online.
  • Freemium plans : Certain services are free and “premium” services cost extra.
  • Third-party licensing : Give third parties the right to use or sell your patented products.
  • Renting or Leasing : Rent out assets (for example, real estate or products) for a price.

As you create your financial projections, factor in the demand in the market and the volume of customers. You should also include your pricing strategy for the products and services you offer. It would be helpful to go back and review your sales history. Then you can isolate specific trends. This will help you make more sound financial decisions moving forward. It would also be helpful to you to do some research on the current market.

Alternative funding options

There are a variety of options when it comes to alternative funding sources for your salon. Each option has pros and cons. Some options include loans, grants, crowdfunding, or partnerships.

Loans may offer somewhat low interest rates. However, it’s important to find out what they require for collateral or how strict the repayment terms are.

Grants can offer funds that you don’t have to repay, but they might have strict eligibility requirements and limits on how you can use the funds.

Crowdfunding can get you funds from a pool of investors, but it might mean sharing control or ownership of your salon.

Partnerships can get you access to extra capital and more expertise. On the downside, partnerships can mean profit-sharing. You may also have to consult with your partners before you make decisions.

Expense management

If you want your salon business plan to have success, it is vital that you manage your expenses carefully. To maximize your earnings, you have to optimize your expenses and control the costs your salon faces. This is the only way to make sure that your salon remains financially stable.

Regularly review your expenses and identify ways to cut costs without sacrificing quality. Be on the lookout for chances to negotiate better deals on supplies and cut out unnecessary expenses. For example, could you choose equipment that is more energy efficient? Is there a way you could maximize the lifespan of the products you use and cut back on supply costs?

Hiring freelancers or contractors

Hiring a contractor or freelancer can have a lot of benefits. These independent professionals can provide you with the expertise you need to do a specific project or task. Some of the benefits they offer include:

  • Saving on Costs: Hiring contractors and freelancers can save you money on payroll taxes, training, benefits, and more. You pay for the work they do and depending on your needs you can adjust your budget.
  • Greater flexibility: You hire contractors and freelancers only as you need them and for as long as you need. You can adjust the scale of your team depending on the demand of the project and their availability.
  • Expertise: Freelancers and contractors bring in fresh ideas and perspectives. Their knowledge of the industry is also an asset to your salon business. They can also carry out tasks that are beyond your skill set or that require special equipment and tools.

8. Tackle Management and Organization

The management and organization plan is the backbone of your salon business plan. It shows how your salon will operate and reach its goals. This section gives an in-depth look at the salon’s management team, including their qualifications, experience, and roles inside the salon. It also explains how the salon will be structured, how decisions will be made, and how different teams will work together.

By sharing a clear management and organization plan, your business plan shows that the salon has capable people and a well-structured system to make it in the competitive beauty industry.

9. Plan Your Everyday Operations

The salon’s operational plan outlines the day-to-day procedures and practices that drive the smooth functioning of the salon. It covers all the essential operational aspects, from staff scheduling and client management to inventory control and quality assurance.

The plan sets out who’s responsible for what, so everyone works together like a team to give customers the best service. It includes strategies for optimizing appointment bookings , managing walk-ins , and handling peak hours efficiently .

Moreover, the operational plan addresses health and safety protocols, emphasizing the importance of maintaining a clean and hygienic environment for both clients and staff. By adhering to the operational plan, the salon can enhance productivity, elevate the overall customer experience, and create a thriving and well-organized salon environment.

Implementing booking software into your salon’s everyday operations

As a forward-thinking salon owner, integrating booking software into your daily operations isn’t just a tech-savvy move – it’s a strategic investment that brings a myriad of benefits to your business.

Booking software simplifies the appointment process, allowing clients to schedule services seamlessly. With real-time updates, your staff can manage and optimize appointments, reducing the risk of scheduling conficts and ensuring a smooth workflow.

Also, booking software enables you to create and manage staff schedules effortlessly. With automated notifications and reminders, your team stays informed, reducing scheduling conflicts and enhancing overall productivity.

Not to mention that clients appreciate the convenience of booking online, as it allows them to be in charge of everything – they can choose services, select preferred staff members, and book appointments at their convenience.

Revolutionize Your Salon Management with Trafft: A Solution Tailored for Salon Owners

As a salon owner, you’re no stranger to the challenges that come with managing a bustling beauty business.

Managing appointments, handling last-minute rescheduling, dealing with overbooking, creating and managing staff schedules, and struggling to be there for your clients in the middle of the night – these are just some of the common pain points you face as a salon owner.

Enter Trafft ! Tailored with your specific challenges in mind, Trafft is designed to transform your daily chaos into an efficient salon experience.

trafft booking software and app

What do you get from Trafft?

  • Say Goodbye to Daily Organizational Chaos : Bring order to the chaos with real-time updates and efficient scheduling. Trafft makes organizing your calendar, keeping track of appointments, and managing staff schedules a breeze.
  • Minimize No-Shows : With Trafft’s automated reminders, you can reduce no-shows and make sure that each appointment slot is valuable. You’ll receive timely notifications via email or SMS which will help you cultivate a reliable and engaged customer base.
  • Reschedule with Ease : When your clients choose a new time, Trafft will send notifications to both of you. Plus, it’ll confirm the booking and update all your calendars. No need to worry about canceling an appointment – Trafft will do it for you!
  • Be Available 24/7: Allow clients to schedule appointments at their convenience. Transform your salon into a 24/7 beauty oasis, breaking free from traditional booking hour constraints.

So, are you ready for a salon management revolution? Embrace Trafft and start your transformation now!

10. Think about your marketing strategy

This is your game plan for your salon to bring in new clients and promote your services. A thorough marketing plan , with plenty of marketing ideas and marketing tools you plan to use, is essential. It allows you to stand out from the competition and reach your target market. It also allows you to create connections with your customers and achieve your marketing goals.

This is the most flexible section of your salon business plan . As your business grows and the market changes, your marketing plan will adapt to it.

Marketing strategies that attract and retain clients

It’s important for salon owners and managers to create strategies for advertising and marketing. This helps to attract new customers and retain existing clients , as well as improve the reputation and visibility of the salon. Here are a few strategies you might try:

  • Create a salon website or social media account . There customers can get information about your prices, services, location, and hours. Websites and social media accounts are great ways to showcase your work or advertise special events and promotions.
  • Try offering discounts, coupons, referrals, loyalty programs, or gift cards . This will encourage customers to visit the salon more frequently and make them more likely to spread the word to friends and family.
  • Participate in local events . Are there any festivals, fairs, charity drives, or fashion shows coming up? These events are a great opportunity for the salon to showcase its skills and services. It also gives you the chance to network with potential customers and partners and generate publicity.
  • Look for opportunities to partner with other local businesses like spas, hotels, gyms, or restaurants. You can cross-promote services and offer deals or packages to shared customers.
  • Send emails or newsletters to customers about your latest news, tips, beauty trends, and offers.
  • Ask for feedback from customers . Then use their responses to improve customer satisfaction and quality of service.

11. Think About Sales

In this section of your salon business plan, you should outline the strategies and tactics that will be employed to drive revenue and achieve your salon’s financial objectives.

This section delves into the target market and defines the salon’s unique selling proposition, emphasizing what sets it apart from competitors. It details the pricing strategy for various services and products, taking into consideration factors such as market demand, competition, and the perceived value of offerings.

The sales plan also identifies promotional activities and marketing campaigns that will be executed to attract new clients and retain existing ones. It includes a timeline for these initiatives, along with a budget allocation for marketing expenses. Furthermore, the section discusses techniques for upselling and cross-selling to maximize the average transaction value per customer.

By laying out a comprehensive sales plan, the business plan showcases the salon’s dedication to achieving financial success and growth through a well-structured and effective sales approach.

12. Don’t Forget to Include Risks

The risk management section of the salon business plan addresses the potential challenges and uncertainties that the salon may encounter during its operations.

This section identifies and assesses various risks, including financial, operational, legal, and industry-specific risks. It outlines the proactive measures that will be implemented to mitigate these risks and ensure business continuity.

Strategies such as obtaining insurance coverage, adhering to strict health and safety protocols, implementing sound financial practices, and conducting regular staff training are discussed to minimize potential liabilities. Additionally, contingency plans are detailed to handle unexpected situations, such as economic downturns or natural disasters.

By carefully analyzing and addressing potential risks, the risk management section demonstrates the salon’s commitment to safeguarding its interests and building resilience, providing potential investors and stakeholders with confidence in the salon’s ability to navigate challenges and succeed in the long run.

So, What’s the Secret to Creating a Successful Salon Business Plan?

Running a successful salon requires more than just a flair for aesthetics; a robust salon business plan is equally essential. This plan is not a one-time document but a dynamic tool that evolves alongside your business. It serves as a roadmap, guiding your financial decisions, attracting funding, and steering your salon toward lasting success.

When writing your salon business plan, don’t forget to include a detailed market analysis, your financial projections, operational plan, services and pricing strategy, marketing, and branding.

Be sure to check in on your plan regularly and see how you’re doing compared to your goals.

Remember, a well-thought-out salon business plan is not just a formality; it’s a dynamic tool that empowers you to make informed decisions, navigate challenges, and seize opportunities for growth. Invest time and effort in crafting a plan that aligns with your vision, and watch your salon flourish.

Looking for More Salon-Related Resources?

If you enjoyed this article about creating a successful salon business plan, you should check out these as well:

  • The Best Salon Appointment Booking App On the Market
  • How To Manage A Salon Successfully (Salon Manager Tips)
  • How To Run A Successful Salon (The Salon Owner Guide)
  • How To Get More Clients In A Salon (The Ultimate Guide)
  • How Much Do Salon Owners Make? Tips for You to Earn More
  • Salon Cancellation Policy Examples and Templates To Use
  • The Best Salon Slogans and Mottos to Use for Your Own
  • Salon Mission Statement Examples and Tips To Create One
  • The Types of Salon Insurance You’ll Need for Your Business
  • Salon Social Media Marketing 101
  • How to Make a Salon Price Increase Notice without Losing Clients
  • The Most Efficient Salon Marketing Ideas You Need To Try
  • The Best Salon POS System to Pick From
  • Salon Booth Rental Tips and Best Practices to Know

FAQ on Salon Business Plan Essentials

Why do i need a salon business plan.

A salon business plan is essential because it serves as a roadmap, guiding you through the process of starting and growing your business.

It outlines your goals, target market, services, pricing, and marketing strategies, helping you stay on track and make informed decisions.

A well-prepared business plan can also be valuable when seeking financing, as it demonstrates your commitment and expertise to potential investors or lenders.

What should I include in the company description?

In the company description, provide an overview of your salon, including the name, location, and ownership structure.

Explain your salon’s mission, vision, and core values, as well as the unique selling points that set you apart from competitors. This section should also highlight the salon’s atmosphere, target clientele, and the specific services you plan to offer.

What is an example of a salon mission statement?

An example of a salon mission statement could be: “At [Your Salon Name], we are dedicated to delivering exceptional beauty experiences that empower our clients to look and feel their best. Our mission is to create an inviting, inclusive environment where creativity thrives, and our team is committed to providing personalized, high-quality services that enhance natural beauty and boost confidence.”

What is the best business structure for a salon?

The most common business structures for salons are Sole Proprietorship, LLC (Limited Liability Company), or Corporation. Each has its own advantages. Sole Proprietorship is simpler but offers less liability protection. LLC combines liability protection with flexibility. A Corporation provides strong liability protection but involves more complex formalities. Consult with a business advisor to determine the best fit for your salon.

How do I choose the right services for my salon?

Choosing the right services for your salon starts with understanding your target market and their needs.

Research your local area and identify gaps in the market or underserved segments. Consider your own skills and expertise, as well as those of your team, and focus on services that align with your strengths.

Offering a mix of essential and specialized services, such as haircuts, coloring, and unique treatments, can help you stand out and attract a loyal clientele.

How do I set salon pricing?

Setting salon pricing requires balancing the cost of providing services with what customers are willing to pay.

Research competitor pricing in your area and consider factors such as your target market, the quality of your services, and your salon’s atmosphere. You can opt for tiered pricing based on the experience of the stylist or offer service bundles to encourage customers to try additional services.

Be prepared to adjust your pricing as your business grows and evolves.

What’s the best way to market my salon?

Marketing your salon requires a combination of traditional and digital strategies.

Word-of-mouth referrals from satisfied clients can be powerful, so encourage customers to share their experiences with friends and family. Utilize social media to showcase your work, engage with potential clients, and share promotions.

Collaborate with local businesses or participate in community events to raise brand awareness. Don’t forget about email marketing, loyalty programs, marketing tools , and targeted advertising to attract new customers and retain existing ones.

How can I ensure a top-notch customer experience?

Providing an exceptional customer experience is crucial for salon success. Start by hiring skilled, friendly staff who share your vision and commitment to customer satisfaction. Offer ongoing training to ensure your team stays up-to-date on industry trends and techniques.

Also, handle bookings professionally, with the help of salon scheduling software and booking apps .

Create a welcoming, clean, and comfortable salon environment, and be responsive to customer feedback. Consistently delivering high-quality services and personalized attention will help you build a loyal client base.

How do I manage salon inventory and supplies?

Effective inventory management is essential for a successful salon. Implement a system to track product usage and sales, ensuring that you always have adequate supplies on hand without overstocking. Regularly review your inventory levels and adjust your ordering frequency or quantities as needed.

Negotiate with suppliers for the best prices and consider implementing inventory management software to streamline the process.

What legal requirements should I be aware of?

Before opening your salon, familiarize yourself with any legal requirements, such as licenses, permits, and zoning regulations.

You may need a cosmetology license, business license, or specific permits for your location. Additionally, ensure your salon meets local health and safety guidelines and complies with employment laws. Consult with a legal professional if you’re unsure of your obligations.

How do I create financial projections for my salon?

Creating financial projections for your salon involves estimating future revenue, expenses, and cash flow. Start by estimating your income from services and product sales, taking into account factors like pricing, target market, and more.

Outline your anticipated expenses, such as rent, utilities, salaries, marketing, and inventory costs. Create a cash flow statement to ensure you have enough working capital to cover your expenses and support your salon’s growth.

Use your financial projections to set realistic goals and adjust your business plan as needed. Regularly review your financial performance and compare it to your projections, making necessary changes to stay on track and achieve your objectives.

How do I measure the success of my salon business?

Measuring the success of your salon business involves tracking key performance indicators (KPIs) that align with your goals.

Common KPIs for salons include revenue growth, client retention, client acquisition, average ticket value, and employee productivity.

Track these metrics regularly to assess your salon’s performance and identify areas for improvement. Additionally, use customer feedback, online reviews , and testimonials to gauge the overall satisfaction of your clients and the quality of your services.

This information can help you refine your business strategies and ensure your salon’s ongoing success.

Jovana Smoljanovic Tucakov

  • 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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How to Start a Hair Product Line

start a hair product line

Starting a hair product line can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful hair product line.

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

Download our Ultimate Business Plan Template here

14 Steps To Start a Hair Product Line :

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

1. Choose the Name for Your Hair Product Line

The first step to starting a hair product line is to choose your business’ name.  

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

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

2. Develop Your Hair Product Line Business Plan

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

Your business plan should include the following sections:

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

Finish Your Business Plan Today!

3. choose the legal structure for your hair product line.

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

Below are the five most common legal structures:

1) Sole proprietorship

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

2) Partnerships

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

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

3) Limited Liability Company (LLC)

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

4) C Corporation

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

5) S Corporation

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

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

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4. Secure Startup Funding for Your Hair Product Line (If Needed)

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

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

5. Secure a Location for Your Business

When looking for a location for your hair product line, it’s important to consider all of your requirements. You’ll need to find a space that is large enough to house your manufacturing and storage facilities, as well as an office for you and your team. It’s also important to find a space that is accessible and has good transportation links.

Another important factor to consider is the cost of renting or leasing the space. Make sure you have a realistic budget in mind and be prepared to negotiate with potential landlords.

6. Register Your Hair Product Line with the IRS

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

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

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

7. Open a Business Bank Account

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

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

8. Get a Business Credit Card

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

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

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

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

9. Get the Required Business Licenses and Permits

The requirements can vary depending on your state, but typically you will need a business license, a manufacturing license and/or a distributor’s license. You may also need to obtain permits for the production of your products, as well as for the storage and sale of those products. Contact your state’s department of revenue or department of licensing and regulations for more information on the specific licenses and permits you will need to start your hair product line.

10. Get Business Insurance for Your Hair Product Line

The type of insurance you need to operate a hair product line may vary depending on the scope of your operations. 

Some business insurance policies you should consider for your hair product line include:

  • General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
  • Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
  • Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
  • Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
  • Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Hair Product Line Equipment

To start your hair product line, you will need some essential equipment. This includes a scale to weigh your ingredients, a mixer to blend them, and containers to store your finished products. You may also want to invest in labeling equipment to create professional-looking labels for your products.

12. Develop Your Hair Product Line Marketing Materials

Marketing materials will be required to attract and retain customers to your hair product line.

The key marketing materials you will need are as follows:

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

13. Purchase and Setup the Software Needed to Run Your Hair Product Line

To start a hair product line, you will need to purchase some software. Hair product lines typically require software that can help with inventory tracking, order management, and customer relationship management (CRM). There are a number of different software options available, so be sure to do your research to find the one that is best suited for your needs.

14. Open for Business

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

How to Finish Your Ultimate Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your hair product line business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How to Start a Hair Product Line FAQs

Is it hard to start a hair product line.

No, it's not hard to start a hair product line. All you need is a good idea for a product and the willingness to put in the work to make your vision a reality. It can be quite successful if you have a good product and a well-thought-out marketing plan.

How can I start a hair product line with no experience?

There are a few different ways to go about starting a hair product line with no experience. You can start by reading books about the topic. There are also several online courses available that can teach you the basics of starting a hair product line. You can also reach out to professionals in the industry for advice and mentorship. Additionally, you can attend industry events and trade shows to learn more about the market. 

What type of hair product line is most profitable?

The most profitable hair product line is a professional hair care line. These products are typically sold in salons and other professional hair care outlets. They are more expensive than over-the-counter products, but they are in demand because they offer users a wider range of options for taking care of their hair. Professional hair care lines often include shampoos, conditioners, styling products, and hair treatments. Many also come with instructional guides that help users get the most out of the products.

How much does it cost to start a hair product line?

To start a hair product line, it will cost you between $10,000 and $50,000. This includes the cost of product development, manufacturing, marketing, and distribution.

What are the ongoing expenses for a hair product line?

The ongoing expenses for a hair product line can include the cost of goods, shipping, labor, and marketing. The cost of goods can include the ingredients in the products, packaging, and shipping costs. Labor costs can include the wages of those who design, manufacture, and package the products. Marketing expenses can include advertising, promotional materials, and website design and maintenance.

How does a hair product line make money?

There are a few ways a hair product line can make money. The most common is to sell the products directly to consumers. The company can also make money by selling the products to retailers. Another way that the company can make money is by licensing the products to other companies.

Is owning a hair product line profitable?

Yes, owning a hair product line can be profitable. The hair care industry is a multibillion-dollar market. It is projected to grow even more in the years to come. This is because many people are becoming interested in finding new or better products for taking care of their hair.

Why do hair product lines fail?

One of the main reasons hair product lines fail is that they do not keep up with changing trends. Suppose a company does not update its products to reflect the latest trends. In that case, its line will quickly become outdated and lose market share. Another reason hair product lines fail is that they do not target the right market. If a line aims for an older demographic, for example, it may fail to capture the interest of younger consumers. Finally, hair product lines often fail because they do not have a diverse marketing campaign. Suppose a line only uses traditional advertising methods, such as TV commercials and magazine ads. In that case, it will not reach as many consumers as it could if it uses social media and online ads.

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Hair Salon Business Plan

business plan for online hair business

Things to Consider Before Writing a Hair Salon Business Plan

Find your usp.

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

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

Build your client base

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

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

Find the ideal location

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

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

Design your salon for both form and function

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

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

Writing Your Business Plan

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

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

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

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

Hair Salon Business Plan Outline

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

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

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

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

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Download a sample hair salon business plan

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

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

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Hair extension business plan: blueprint for success, how to write a hair extension business plan.

Want to create a hair extension business plan but don't know where to start?

If you are really serious about selling hair extensions it should be something to consider. If you need an eyelash extension business plan this should help too!

You might think creating a well-crafted business plan can be time-consuming and a little daunting without some guidance. This can be true!

No worries, we are here to help!

Below is a step-by-step guide to what you will need to create a hair extension business plan for your new business or your current.

First, let's go over exactly what a business plan is and why you should have one.

Chapter #1: What is a Business Plan?

A business plan is a written document that highlights in detail how business, usually a new one is going to achieve its goals. It usually lays out a written plan from a financial, operational, and most importantly marketing point of view.

Sometimes a business plan is prepared for the companies which are working on reaching new horizons with their business.

It is important to have the ideas in written form so that they are executed with precision.

You may find it is also useful to demonstrate the feasibility of the prospective new business and to provide a map for its years of operation in the future.

Once the business is up and running, it will be a document you will consider looking at when you are struggling or have any doubts. This consultation can foresee whether you are on track or not; perhaps you have strayed from your initials and need to revert to the original ideas.

hair-extensions-business-plan

Why is a business plan important?

A business plan is necessary because of a number of reasons.

1. Clarify Directions

The primary purpose of a business plan is to explain what the business is or what it intends to achieve in the future. Clarifying the purpose of your business allows you to understand the direction of the forward movement. It may include a simple idea about your business, the product services, and the detailed description of what you expect from the customers as well.

2. To Obtain Financing

A business plan is always necessary if you wish to secure funding, whether you are operating a new plan or want to seek a bank loan or venture capital. But why do investors want to see your business plan? For understanding this, you have to look it through a different perspective.

Let’s suppose you are going to loan someone $1,000 or more for their business. With the hope of getting the money back and seeing a return on your investment, you would want to know exactly how the money would be used, who is going to be in charge, what makes them qualified to succeed, what are their valuable assets, liabilities, and profits look like? Of course, you would want to know the details.

3. To Maintain Your Organization

A business plan ensures that the organizational structure of your business is well developed.

It includes the entitlement of your directors, officers, and specific duties. Thus is can act as a management tool that can regularly be consulted to ensure the organization is on track and the goals are being pursued efficiently.

4. Vision for the Future

For most of the companies, business evolves over time, and factoring future growth into your business plan can prove very crucial to coping with the changes in the markets.

Thus it helps you to envision your future and things you can to safeguard it.

Planning for your Hair Extension Business Model

Congratulations if you have decided to write a hair extension business plan, and you are ready to get started.

The chances of success of your business venture have significantly increased, and before drafting your plan, you need to plan on how to do it. Whenever you are presenting your business model, the only factors that will determine its value shall be the projections and proposals. That’s even more relevant when you are seeking for finances for your company.

Learning how to sell hair extensions is going to be vital, and your hair extension business plan will be your lifeline.

However, you need to understand that the business plans are very complicated documents. As you are drafting your plan, you are making decisions on very crucial matters e.g. the strategy you will pursue. Considering these things in advance can save you a lot of time in the future.

The following are the strategies you should explore before starting a hair extension venture.

business-plan-quote

Determine Your Goals and Objectives

  • Where do you want your hair business to go?
  • Will your hair business be staying stagnant at that time?
  • Are you focused on a rapidly growing hair extension empire?

Answering these questions is imperative for building a successful hair extension business plan. Now is a good time to explore every avenue you’d like your business to go down. The best approach is to write an essay on your goals.

business-plan-checklist

Create a Checklist

  • How determined are you to see your hair venture succeed?
  • Are you willing to sacrifice your personal benefits for the future of your hair company?
  • What is going to be your approach if the venture fails?
  • How many dedicated people do you need for your hair business?
  • What is your goal in terms of revenues for the future?
  • What will the hair company's market share be in five years?
  • What are your plans for expansion? Are you going to keep your venture local, online, or would you go global?
  • Which department would you specifically work on in your venture?
  • If selling online, what type of hair extension website will you use?

Setting up your Financial Goals

Your business plan for hair extensions must have some financial goals. For running a business, you don’t need a lot of money to make a lot of money.

An optimistic approach to this is to leave everything on your sales. However, this may also create a problem for you because a business has some constraints.

You have to pay the suppliers first before you get paid by your customers. If this is an issue, you might want to consider Dropshipping Hair Extensions . This cash flow conundrum is the reason that companies have to resort to bank loans, borrowing money from family, or getting a small investor. Start by asking yourself these questions:

1. You must think about having a partner to help you with your hair business. An equal partner, naturally, shall demand higher power and control. Venture capitalists often require management decisions, just like having their say in your important decisions.

For most hair companies that are just starting out, you will not need to go the Venture Capital route unless you have a massive plan.

You don’t want any of these to happen. So the best partner for you is a bank. Banks will not bother you much until you make payments of principal and interest on time.

2. You should keep account of the money you wish to spend on your venture.

3. Anticipating the size of your needs, your spending, and financing, you should consider the running cost as well. If you are going to keep a lot of bundles in stock then what will be your holding inventory cost? These are things that are important to plan.

hair-business-plan

How Will You Use Your Hair Extension Business Plan?

It might sound a bit ambiguous to you, but a part of planning your business plan is to determine what you would do with it. Your plan of activities can reference to in many ways.

From monitoring your company’s road towards the success to alluring top employees, celebrities, or social influencers to join your venture. On the other hand, you can use a hair business plan as a marketing tool for consumers. This program will help you to create a test ensuring that your company stays credible in the hair extension market.

Marketing is Important for Your Hair Extension Business Plan

If you want to escape the cubicles and want to pursue your passion in the hair extension business, after a business plan you need to draft the key elements of your marketing strategy.

Hair extension marketing is critical to your success and separating you apart from the others in the industry.

The biggest problem with entrepreneurs is that most of them don’t have marketing experience.

No matter how great your hair extensions, no one is going to know if you don’t pitch it the right way. The Business plan for hair extension will be successful if you think about these agendas before writing it.

Who Is Your Target Audience?

Understanding your audience is vital. For a Hair Extensions venture, the target audience should be women, and you need to think about marketing your product in the right way so that more and more women are attracted to your company.

Are you going to be selling retail or wholesale? Is your price point going to be $150 a bundle and only market to the higher end crowd? There are many different aspects of your products and pricing to consider.

Most hair entrepreneurs will focus on the popular hair extensions that they know will sell in the market. This could include glueless wigs , seamless clip-ins, tape-ins, or raw hair bundles.

Knowing your target market will not only maximize profit but will also help you to cope up with the changing market.

What Marketing Strategy Do You Wish to Follow to Reach Your Audience?

Social media is a perfect place to market your products. Many hair companies just focus on growing their Instagram account. Focusing on just one platform that is not even your own can be dangerous if a platform like Instagram starts to lose popularity in the future.

Having a balanced but focused marketing strategy will set you up for hair sales success in the future.

Advertising your products in a newspaper might not just be an excellent idea because most of the people who read newspapers are above 55. Figure out what women usually watch more and customize your message using that medium.

Google Adwords can yield great results if done properly. Spending ad dollars on social media is proving to be one of the best ways to advertise to clients. Make sure to have this part of your plan and either become an expert or hire one.

marketing-strategy

Allotting a Separate Budget for Your Marketing

When you have given a thought to all these questions, you need to write down the magnitude of marketing for your product.

You might need professional help for marketing your product thus creating a budget beforehand is important.

How Long Should Your Business Plan Be?

For a real hair extensions business plan, you need to make it short and concise. You have to understand that it is not a doctoral thesis. It should have the easy to read format.

One should focus mostly on the fundamentals, robust analysis, and good projections. The following are the specifics you should work one.

  • Keep the wording straight and straightforward and avoid using fancy words.
  • Use short sentences as they are easy to read.
  • Bullet points are crucial as they help the readers to have the information quite quickly.
  • Keep the length of the plan very short. If your hair extension business plan is 40 pages, then you haven’t summarized it well.
  • Business charts are imperative as they can be used to display predicted growth, sales, margin, and net worth by the year.
  • Double-check the paper for any grammatical or spelling errors.

white-board-plan

Chapter #2: How to Write a Hair Extension Business Plan?

Now that you have spent enough time understanding the business plan and done your homework in collecting the necessary information, it’s time to roll up your sleeves and start writing your business plan for Hair Extensions.

Following are the components of a business plan:

Executive Summary

The executive summary is considered the most significant segment of your business plan.

This section briefly explains to the reader that where your company is at the moment, what are your aims and ambitions, where you want to take your hair company, and why your business idea is going to be successful.

This can help you on two levels. If you are seeking for finances, the executive summary is the main highlight of your plan and can grab you a potential investor’s interest. On the other hand, it is the first step you lay down when you are starting a company and will determine the success of your hair business in the future.

The executive summary must highlight the strengths of your ideas. Preferably, it is the last section one should write, but it appears first in your hair extension business plan model.

What to include in your executive summary?

The following should be the highlights of your executive summary.

The Mission Statement

This statement explains what your business is about. It describes your business categorically and will give a prospect about your business to the readers.

It should point out straight about your products, the market you wish to enter, your target audience, and your company is or will be better than the others.

Are you going to carry sew-in extensions , closures , edge con t rol , and mink lashes ? Start coming up with a plan of what products you would like to offer at launch and others that you can provide as your hair extension business grows.

Company’s Information

This section will give the readers a closer look at when your business was formed, the name of their founders, their roles, your number of employees, and your location.

Financial Features

This section will highlight the economic points of your business. This section will also cover your financial needs and how do you want to spend the capital.

Significant Achievements

Points of interest are advancements inside the organization that is fundamental to the accomplishment of the business.

Real accomplishments incorporate things like licenses, models, area of an office, any essential get that should be set up for item advancement, or results from any test advertising that has been directed.

If you are just starting a business, you won't have as much data as a built-up organization. Rather, concentrate on your experience and foundation and the choices that drove you to begin this specific endeavor.

Have you been a hairstylist for ten years and have clients always asking you for hair? You practically already have a market built. All you need to do now is set up your hair extension business to start getting sales.

Show that you have done a careful market investigation. Incorporate data about a need or service in your objective market, and how your specific arrangements can fill it.

Persuade the reader that you can prevail in your real market, then address your plans.

Business Description

The business description starts with a short depiction of the business.

While depicting the business, talk about the present standpoint, and also future conceivable outcomes.

You ought to likewise give data on all the different markets inside the business, including any new items or improvements that will profit or antagonistically influence your business. Construct the majority of your perceptions on reliable information and make certain to commentary wellsprings of data as proper.

This is critical in case you're looking for financing; the reader will need to know exactly how tried and true your data is, and won't hazard cash on suspicions or guess.

Following are the things you need to include in your description:

  • Describe the nature of your business and enlist the commercial center needs that you are attempting to satisfy.
  • Clarify how your items and administrations address these needs.
  • List the particular customers and organizations that your business serves or will serve in the future.
  • Clarify the competitive advantages that you accept will make your business a win, for example, your area, workforce, efficient operations, or capacity to convey an incentive to your clients.

business-plan-marketing-analysis

Market Analysis

This section of the hair extension business plan must give a categorical analysis of your knowledge of the industry and the market as well as your research findings.

What to include in your Market Analysis?

  • Industrial Outlook – Describe the hair extensions industry, including its current size, the trends, as well as other trends and characteristics that you foresee in the future.
  • Information about your target market – In this particular case, your target market is 99% women. You need to research the specific age group that would be interested in buying your hair extensions and will need to devise a strategy to target this particular group.
  • Distinguishing characters - What is the need of your potential customers? How can you fulfill these requirements?
  • Market Share – This section shall include the market share and profit you can gain in a particular geographical area.

Organization and Management

Organization and Management follow market Analysis.

This section of your business plan for hair extensions ought to include: your organization's authoritative structure, insights about the responsibility for the organization, profiles of your administration group, and the capabilities of your governing body.

Who does what in your business?

What is their experience and why are you bringing them into the business as board individuals or representatives?

What are they in charge of?

These may appear like additional inquiries to reply in an individual association; however, the general population reading your marketing strategy needs to know who's in control, and so let them know.

Give a point by point portrayal of every division or office and its capacity.

This area ought to incorporate who's on the board and how you expect to keep them there. What sort of pay and incentives do you have for your workers? What about the advancements? Promise your reader that the general population you have on staff are something beyond names on a letterhead.

Service or Product Line

For a successful business model for hair extensions, this part shall incorporate data about the particular advantages of your products – from your client's point of view.

You ought to likewise discuss your item or organization’s capacity to address customer issues, any favorable circumstances your item has over that of the opposition, and the modern advancement organize your item is in.

Sales and Marketing

Once you have studied the target market thoroughly, it should be additionally characterized to decide the total feasible market.

Finding this financial number should be possible in a few ways; however, most expert organizers will portray the available market by focusing on product segmentation factors that may deliver gaps inside the market.

It's imperative to comprehend that the total possible market is the part of the market that you can reach given each condition inside the environment is favorable and there is next to no opposition. In many companies, this is not the situation.

Different components will influence the share of the available market a business can sensibly acquire. These variables are frequently fixing to the structure of the business, the effect of rivalry, techniques for market infiltration, and proceeded with development, and the measure of capital the company will spend so as to increase the market share.

For a successful business plan for hair extension, you need to focus on the following strategies.

  • A viable market penetration strategy
  • A growth strategy that will include an internal strategy that shall primarily focus on things such as increasing your human resources, an acquisition strategy for buying another business, and a franchise strategy to colonize the world.
  • A communication strategy on how you plan to reach your customers, the public platforms you’ll use to advertise, and your influence on social media.

Funding Requests

Consider that your hair extensions business ventures become exceedingly successful.

Now you want to expand your horizons. From a small business setup, you need to make an entry in the big market. For that, you need some finances. You need some people to invest in your venture.

So, what would be your marketing strategy, you need to explain thoroughly in this. You have to outline the requirements of your enterprise, any future funding needs, and how do you plan on using these funds?

This section shall also analyze your strategic financial situation plans in the future. After you have done explaining all these parameters, you need to outline the amount you need right now and the amount you need in the future.

It is the most crucial part of your business plan for hair extension.

Provide the appendix to your reader on demand.

Your hair extension business plan shall also have some relevant documents. This section should not be included in the main body as it contains confidential information about your company.

The Appendix will include:

  • Credit history (personal & business)
  • Product pictures
  • Letters of reference
  • Details of market studies
  • Relevant magazine articles or book references
  • Legal documents

How to Make Your Hair Extension Business Plan Stand Out?

Your business plan will eventually stand out if you determine your target market and research the audience quite well.

For instance, is the market you serve the best one for your item or administration? Are the advantages of managing your business transparent and would they say they are lined up with client needs? In case you're uncertain about the responses to any of these inquiries, make a stride back and return to the establishment of your strategy for success.

The accompanying tips can help you elucidate what your hair extension business brings to the table, distinguish the real target showcase for it, and fabricate a specialty for yourself.

Be clear about what you have to offer

Beyond essential items or administrations, what are you truly offering?

Consider this simple case that will help you to understand the situation: Your town presumably has a few restaurants all offering one essential item—food. Each of these restaurants is focused on the needs of the customers.

One may be a drive-through fast-food restaurant, maybe another offers pizza in an original Italian kitchen, and possibly there's an excellent restaurant that serves fish that and has practical experience in wood-flame broiled admission.

Every one of these eateries offers food. However, they pitch them to focused demographic searching for the one of a kind qualities each brings to the table. What they are truly offering is a combination of product, esteem, atmosphere, and brand experience.

When starting a hair extension business, make sure to comprehend what makes your hair extensions one of a kind. What needs does your item or administration satisfy? Document the advantages and differentiators that will help your business emerge from the group? Your hair extension business plan must show all of these attributes.

Avoid being the jack of all trades

It's imperative to characterize what you're offering unmistakably. You would prefer to become a jack of all trades and master of none since this can negatively affect the business development. As a smaller businessman, it's regularly a superior strategy to divide your items or business into sensible market specialties.

Little operations can then offer particular products and ventures that are alluring to a private gathering of planned purchasers. Thus focus mostly on hair extensions when you are starting your business model of hair extensions.

Identify your niche

Making a specialty for your business is basic to achievement. Frequently, entrepreneurs can distinguish a specialty given their market learning. However, it can likewise be useful to lead a market study with potential clients to reveal undiscovered necessities.

hair-extensions-business

Enhancing Your Hair Extension Business Plan

Once you have successfully created a business plan for hair extensions, you cannot stop right there. You have to devise strategies to enhance your plan from time to time so that it may not die eventually. These enhancements are a critical thing to do because the market is always changing.

Say for the sake of an argument, that the hair extensions your company is offering were outshined by another company that is stronger and has a greater reach to the potential customers. Your business plan might have the solution to this problem, but you wrote it a while ago. The dynamics of the market, the balance, and the need for the product at that particular time were different.

So, with the evolution of the marketplace, enhancing your business plan is an excellent idea. At the end of the day, with the corrections and amendment to your working model, you will be able to create an ideal hair extension business plan. The benefits of which are already mentioned in the start of this article.

Business Plan Software

Let the software do the calculations.

With this software, your financial numbers and estimates will calculate when you plug in your numbers. The business Plan software gives you instant access to business planning calculations and an explanation of every financial term.

Planning Expert

This software comes with video courses from experts that can help you to draft a perfect hair extension business plan.

These courses are specifically generated for small business ventures and have all the tips and tricks to help you draft the business plan that can help you in achieving your goals.

Final Thoughts!

By following all these guidelines, we can ensure you that you can draft an ideal hair extension business plan. A program of activities provides that the organizational structure of your business is well developed.

It is always necessary if you wish to obtain financing, whether you are operating a new plan or want to seek a bank loan or venture capital.

You might need much investment in a hair extension venture, thus working hard on this plan can help you make a marketable draft which will bring you investments and profits. The chances of success of your business venture will significantly increase.

Don't hesitate to ask for help. Organizations like the Small Business Administration are available to help.

With your goals written on paper, you will have a clear idea of how well you are doing with this hair extension business and how far are you from achieving your goals. You will also have a detailed document on your organization's authoritative structure, insights about the responsibility for the organization, profiles of your administration group, and the capabilities of your governing body.

Thus in the future, you might not have to face any problems in distributing the workload and tasks to the people and they will have an idea of how things are done.

Private Label Extensions has helped launch hundreds of hair extension businesses. Always feel free to reach out to us for advice on getting started.

Lastly, even if it takes you days or weeks, you must focus on building a business plan for your hair extension. Once it is done, and the business is running, you’ll understand how well things are working.

Hair Extension Business Plan FAQ's

1. what market research is necessary for a hair extension business plan.

Answer: Comprehensive market research is crucial.

You should analyze the current demand for hair extensions, identify your target market (age, gender, preferences, spending habits), and understand the competitive landscape. Look into industry trends, such as the growing demand for ethical sourcing and high-quality, natural hair extensions.

Research should also cover potential hair extension suppliers , pricing strategies, and the best platforms for marketing and sales (online, salons, specialty stores).

2. How should I price my hair extensions?

Answer: Pricing should consider the cost of procurement, packaging, marketing, and distribution, plus a margin for profit.

Quick Tip: Check out Private Label Branding for all your hair extension branding needs!

Conduct a competitor analysis to understand the price range in the market. Consider adopting a tiered pricing strategy to cater to different customer segments—offering budget, mid-range, and premium products.

Don't forget to factor in promotions, discounts for bulk purchases, and loyalty rewards when calculating your pricing strategy.

3. What is the best marketing strategy for a hair extension company?

Answer: A multi-channel marketing strategy is often most effective.

This could include an engaging online presence (social media, an e-commerce website, SEO), influencer partnerships to leverage their following, and content marketing (blogs, tutorials, testimonials). Highlighting unique selling propositions such as high-quality materials, ethical sourcing, or a wide range of options can set your brand apart.

Additionally, consider offline strategies like participating in beauty expos , partnerships with salons, and local advertising.

4. How important is the supplier selection process, and what should I consider?

Answer: Selecting the right hair extension suppliers is key for maintaining product quality and ethical standards.

Consider factors such as the supplier's reputation, the quality of their products, their production and delivery capabilities, and their sustainability practices. It's also important to evaluate the cost-effectiveness of their offerings and their willingness to work under contracts that protect your company's interests.

Building a good relationship with reliable suppliers can contribute significantly to your business's success.

5. What financial projections are needed in a hair extension business plan?

Answer: Your business plan should include detailed financial projections for at least the first three to five years.

This includes sales forecasts, profit and loss statements, cash flow projections, and a break-even analysis. Consider the initial setup costs, ongoing operational expenses, marketing and sales costs, and any other expenses related to running your business.

Financial projections should be realistic, based on thorough market research and clear assumptions, and they should also include best-case and worst-case scenarios to prepare for various market conditions.

Thank you so much the plan has really been of help to me

Thanks so much, I’m about to start a hair business and this has been so helpful on setting up a plan, I’m a novice but I know I can do it.

Business plans strategys are very necessary.

I would like your help to create my hair extensions business plan

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How To Write the Perfect Salon Business Plan for Your Salon in Just 7 Simple Steps

How to write the perfect salon business plan for a salon

The US salon industry includes more than 80,000 establishments with a combined annual revenue of about $532 billion. So opening a salon, and owning a salon business is a pretty safe bet; it’s steady and profitable . But lack of proper planning makes it difficult to juggle all the aspects of your business, starting from marketing and sales, to accounting, and whatnot. 

Here’s a quick tip! Searched all over the internet for concrete information on how to open your own salon? Confused? Don’t worry, we’ve got you covered! Check out this blog on opening your own salon business that gives you a comprehensive 10 step guide to help you get started now.

Writing a properly structured salon business plan is crucial to guarantee your salon’s success in this highly competitive market. Whether you’re wanting to secure a business loan for your salon or trying to expand or reinvent your salon business, a business plan for your salon will help you get there.

So how exactly would a business plan help you?

  • A business plan will help you to figure out what you want your salon to offer, where you aim to take your salon’s growth, what kind of people you want to cater to, and who you’re competing against . 
  • If you are looking for investment from private investors, banks, or any other lending institutions or public grants, structuring a business plan is crucial. 
  • A business plan will help boost your salon business’s productivity through improved oversight and direction, and help you make informed decisions.
  • As your salon business starts to grow and gain clientele, a well-developed business plan can help you acquire the capital needed to expand to new locations.

How to make the perfect business plan for your salon business?

Whipping up a perfect business plan can be pretty daunting because it needs to be immaculate. No worries! Here we’ve broken down the entire process into 7 easy-to-follow , foolproof steps, along with their templates, to help you create a successful salon business plan. 

  • Write a mission and vision statement
  • Create an executive summary
  • Analyze and identify your target market
  • Perform a competitor analysis
  • Write your salon’s business description
  • Make strategies for advertising and outreach marketing
  • Figure out your financial plan

Whether it’s a hairdressing salon business plan, a general beauty salon business plan, or even a  small salon business plan for opening a salon on your own from scratch, we’ve got you covered. This is a complete, comprehensive guide to help you in the process of making a business plan for a salon. It’ll give you a basic understanding of how to write a salon business plan in the easiest possible way. 

1. Write a mission and vision statement

I) mission statement .

It articulates the immediate purpose of your salon business. Under this, you can state all the short-term goals that you plan on achieving with your salon within 6 months , stretching up to a year.

Here’s how you can nail a perfect mission statement

  • Value – What is the value of your salon in the market? How can it help your clients? 
  • Inspiration – Why should people want to come to your salon?
  • Remember to make your mission statement sound plausible and reasonable . Also, make it specific and concise – clarify all your short-term goals and the timeframe within which you’re planning on achieving them. 

ii) Vision statement

 Now, where do you aim to take the salon’s growth in the next 5 years ? Well, if you’re dreaming, dream big! And you can be as ambitious as you want, the sky’s the limit. 

Setting strategies for a longer-term makes sure that you don’t stumble on the road to success. It makes the overall structure of your business stronger. It prepares you for anything that the fickle market demands from you and throws at you.

Here’s how you can write a perfect vision statement :

  • Review your long-term goals in a way that you can analyze how achieving your long-term goals could impact your business and the salon industry in general.
  • Derive how your clients could benefit from the visions that you would be implementing.
  • Your business’ end goals can drive your vision statement, For instance, if you’re planning to branch out to different locations after, say, 5 years, you can frame your vision statement in a way that states to make your salon a household name, popular in the neighboring areas and so on. 

2. Create an executive summary

After you write the mission and vision statements, you can summarize everything that you’re aiming to achieve with your salon under an Executive Summary. Whether you’re writing a business plan for a hair salon or a business plan for a beauty salon, you should be properly aware of what your intentions are with the salon. This section is the most important part of your business plan as it dictates the tone of your salon, and makes an impression. 

Remember to keep this section very brief and concise to give an overview, as you’ll be elaborating on these points in the later sections of your business plan. 

If you’re having trouble writing your salon’s executive summary, you can always write it after you’re done with all the other sections in the business plan . This will give you a better understanding of your salon business and help you succinctly put your points together to describe it. 

What can you do to write the most fitting executive summary for your salon?

  • Start by stating all the short-term goals that you plan on achieving within, say, 6 months or a year.  Remember to keep your goals realistic and feasible. 
  • Summarize your approach towards your business, to give an overview of how you will run things in your business.
  • Clearly and briefly express the value proposition of your salon, and how it would potentially position your business in your target market.

How to write your salon’s executive summary: A simple template

Divide your business summary into sections of opportunities and expectations, and put brief points in those subsections in the most convincing way. The following template can help you with this :

  • How are you trying to achieve recognition in your target market?
  • What is your salon’s tagline/motto?
  • What is your salon’s growth plan for the first 6 months after its launch?
  • Which demographic is your salon meant for?
  • How are your services aligned with your target market?
  • How many salons are there in the area of establishment of your salon?
  • What products and services do they offer?
  • What is the range of variation of their clientele?
  • What products and services is your salon offering?
  • What is the unique selling point of your business? For eg: If your salon is the only one in the area that offers holistic services with spiritual healing, then put it down as your differentiating point.
  • How are you different from your competitors? For eg: Is it the lower cost of services of your salon, or the vast range of services that make your salon stand out? 

Make sure you catch the eye of potential investors in the above section. Don’t forget to state how you can attract potential customers. 

  • What is the salon costing you? List down the projected expenses and costs that come from daily operations, rent, staff hiring, cosmetics, appliance expenditures, etc. for the first 6 months. 
  • What is the cash flow and how much profits are you bringing in for the initial 6 months? This is completely variable and the reaction of your target market to your salon decides this. So aligning your services with them is of utmost importance. 
  • Why does your salon need financing? For eg: you can convey that you’re trying to meet the anticipated growth of your salon in the market.

3. Analyze and identify your target market

Analyzing and defining a target market for your salon is very important as it goes hand in hand with your salon’s growth and outreach . 

A beauty salon can service all genders and age groups. Your target audience can include working professionals, college students and teenagers, homemakers, to-be-Brides, and even children. And each group will require different types of services.  So make sure you list down each individual section of your target market and what services they would require. 

Here’s a checklist to make sure you’re going the right way about it. 

Steps to analyze and identify your target market 

  • Find out what kind of people you think would resonate with your salon’s services the most. For example, if your salon offers low commitment (temporary) coloring services, you can get a lot of customer traffic from the millennials. 
  • As an extension to that, find out if your services are more inclined to serve a particular demographic better, or if you’re good with people of every demographic.
  • Keep up with the trends in the salon industry to know what’s hot and what’s passé.
  • Peek inside the brains of your target clients to know exactly what they want or like and tune your salon accordingly.

An easy-to-follow template to proceed with your target market analysis

  • Segregate the people in the market pool into different categories.

Do not forget these bases:

  • Personal income/occupation
  • List out the services that your salon would offer that would fit one or more of the stated categories above. 

For eg: If your salon offers Diamond Facial at $200.00, then you can list this service out as follows :

Target market checklist with service, age, gender, and income range

  • Use social media to get an understanding of the trends in the market at present. Join salon and beauty communities on Twitter, Facebook, and Reddit, and follow beauty bloggers on Youtube and Instagram. 
  • Look up the people who subscribe to or follow these beauty pages and beauty bloggers to identify which trends appeal to a certain demographic. You can tell a lot about your target market’s behavior from the posts they like and the thoughts they share in the comment section of these posts and videos.

4. Perform a competitor analysis 

With a great market demand, several strong competitors emerge. And we don’t want your salon to get lost in the sea of other salons now, do we? As it goes, keep your clients close but your competitors closer.

Figuring your competitors out gives you a necessary nudge in the right direction to take your business plan forward. It gives you an idea of what the other salons are practicing with their clients, and what gaps they’re leaving that you can fill up as you step into the salon business yourself. 

How do you analyze your competition?

  • Find out what the other salons in the area are doing successfully or poorly.
  • Get a rough idea of the cost of services that the competitor salons are offering. This helps you price the services for your salon.
  • Identify how many salons provide services that focus on a specific niche and do not serve a wide group of customers.
  • Find out the industry-specific challenges they are facing that you may also face while running your own salon.
  • Analyze what they can do differently to improve their situation, and implement it in your business mission plan to avoid facing such challenges yourself. 
  • Have your salon address these deficiencies in the market.

Follow these easy steps to perform your salon’s competitor analysis 

  • Visit your competitor salons’ websites.
  • Follow them on social media platforms (Facebook, Instagram, Linkedin) to get an idea of how much influence and reach they have. Check out who follows their social media page to get an idea of the target market as well.  
  • Sign up for any interactive sessions that these salons might conduct and check how other people respond to these sessions, to understand their grip and dominance on the market.  
  • Visit the other salons in the market as customers, to get an idea of their quality of services.

5. Write your salon’s business description

So now that you have your market and your competitors figured out, it’s time to work on your salon business . A beauty salon or a hair salon is fine, but what kind of salon do you want yours to be like? Setting a proper description for your business gives your salon a custom style and personality. 

Your business description should include an overview of the products and services that your salon would offer, and how your salon would stand out in the market. Setting a trademark vibe to your salon also helps with its brand image. 

To get started, you can answer the following questions :

  • Would you specialize in any particular service like nail art or bridal makeup? 
  • Would you want your services segmented for various types of clients?
  • What services would you want to offer in packages? 
  • Would you serve complimentary refreshments to the clients?
  • What theme are you going for with respect to interiors and ambiance (Japanese zen, tropical beach day, etc, etc)?
  • What would be your salon’s “it” factor that distinguishes it from the other salons in the area? 

Once you’re done with the salon’s description and personality, set a brand logo and a tagline to go with it. To get a professionally designed custom logo, you can always reach out to freelancers or companies that can do it for you, like 99designs . 

You can also use an online designing software like Canva to design your salon’s logo on your own. 

And that should complete the branding. 

Creating a business brand will prepare you to answer someone asking you “Why should I come to your Salon?” 

Remember to make your salon stand out, noticeable, and interesting.

6. Make strategies for advertising and outreach marketing 

Now you have to position your salon in the market in a way that makes people take an avid interest in “the new salon”. Your target audience will guide you towards the perfect approach to spread the word around about your salon. 

A simple guide to writing the marketing plan for your salon business :

  • Your salon should be Google-able. To show up in digital searches, make sure your business is listed in online directories.
  • Create a website or a mobile application for a better customer experience. 
  • It’s always better to spread out to all social media platforms to promote your business so that your customers (and other potential clients) can get to know you on a more personal level. Connect with your business community by following other small businesses in the area. Actively engage with your target market and share behind-the-scenes content (like before and after photos of clients’ haircuts) to build your credibility and cultivate brand awareness.
  • Partner up with other businesses that may share the same clientele as a salon would (like spa retreats) to offer coupons and vouchers, for outreach marketing.
  • Offer “first-service” discounts to your customers.
  • Keep service rates lower than the other salons in the area to attract clients. 
  • Once the rapport is established, and your clients trust you with the service quality, you can cut out the discounts. It is also very important that you optimize the discounts in a way that you don’t run into a complete loss, but we’ll get to that in a minute.
  • It is crucial to maintain the service quality to the highest degree after you start getting clients. Remember that your clients wear the marketing after they come out of your salon. This will definitely help you secure referrals from existing clients.

Marketing Tip! Want to pull off a great marketing campaign for your salon business but don’t know where to start? Do you feel like the marketing section in your business plan is incomplete? For more detailed marketing ideas for your salon, check out our blog on 7 hand-picked salon marketing ideas to boost your business .

7. Figure out your financial plan 

It’s time to play the number game. This is probably the trickiest part of writing a salon business plan because you have to be extremely careful while juggling your revenue and expenditure budget optimally. 

You don’t want to scare or throw off your customers by charging exorbitant prices for the services, but at the same time, you don’t want to crash and drown in debt yourself. Not to forget, cutting costs on cosmetics may affect the service quality. Cut hair, not costs!

Ergo, you need to have a proper financial plan for your salon. 

Writing a detailed financial plan will help you get a rough idea of how your salon would be progressing on a monthly/ yearly basis. Moreover, if you’re applying for a loan, your financial plan will determine your eligibility .

What can you do to create a solid financial plan for your salon?

Financial analysis of a salon business plan

  • It helps to bifurcate all the expenses into Fixed costs, and Variable costs. Then you can analyze your fixed costs and variable costs to set an optimal budget.

Fixed Costs: This section includes all the costs associated with your salon business that must be paid regardless of the customer traffic in your salon.

  • Rent or mortgage for the salon space.
  • Payroll for the employees you hire.
  • Equipment maintenance costs for hair spa and other services that are heavily equipment dependent.

Variable Costs : This section includes all the costs in your salon business that are directly associated with the customer traffic in your salon. 

  • Expenses of purchasing cosmetics and other salon supplies.
  • Electricity consumption by salon equipment. For eg: If you’re writing a hair salon business plan, make sure you include the electricity consumption by blow dryers, hair straighteners. 
  • Have a clear idea of how much discount you plan on putting on your services during the first few months of opening your salon, and for what duration you will be offering these discounts. Note that during the first few months of opening your salon, your sales are likely to be lower than your projections, and that’s completely okay.
  • Make a list of pros and cons for renting out space for your salon versus buying a place.
  • If you’re renting and wish to own the salon space, spot out a tentative date of when you’ll become capable of buying the place.
  • Figure out how many people you are going to hire in your staff, and how much salary you would be able to offer them. Note that you’ll have to improvise this according to how the customers respond to your salon.
  • Reach out to your local chamber of commerce to get more insights on funding and loans.
  • Tentatively figure out the time it will take you to break even, and start earning chunky profits.

Here’s an easy-to-follow template to proceed with your ‘financial plan’ section 

The following simple template can help you make the financial plan for your salon: 

i) Sales and revenue projections for the first five years :

Figure out how much you’ll charge for your services, and estimate how many services you may perform in a week. A periodic analysis of this over the next five years will give you the necessary projections. Put the details down in a spreadsheet to keep it organized. It also helps to collate all this information and analyze using bar graphs.

ii) Expenses’ budget :

Break down the expenditure of your salon for a given term, by referring to the “fixed and variable costs” list that you made. You can pick the term to be a month, a quarter, or a year long .

It’s a safer practice to stick to a month-long or a quarter-long term. You don’t want the budget analysis task to loom over you and become a burden. Not to forget, it keeps you in touch with the financial status of your salon business. 

iii) Estimated profit margins:

Accumulate the sales projections and budget report analysis to find out the profit for that term. Display the margins in pie charts or bar graphs for easy comprehension. 

iv) Liabilities:

Note all the losses that your salon business can possibly incur in the time period that you have defined as a term. For example, your blow dryers may stop functioning and need to be replaced.

Also include the factors that may stunt your business from growing. For example, you may be short on staff, or your nail salon is lacking an appointment scheduling and business management tool.

Various salon businesses that Appointy caters to

v) Cash flow statement:

Make a projected plan of cash flow-in and flow-out for your defined term, where you include cash flow from sources that are not directly related to your salon services or your salon business-related expenses. 

Include the cash flow from loans, loan payments, taxes, and personal funds that you used for your salon.

vi) Break-even analysis:

Predict the break-even point for the first five years of your business. Break-even is achieved when your salon business has covered all the expenses, and your sales surpass the expenditure costs. From that point on, your salon will start earning profits.

Other ways to create your financial plan :

Dealing with numbers can be tedious and scary, especially when you already have a lot of other things on your mind as a salon business owner. Moreover, documenting the financial projections yourself can be a pretty daunting task, especially because there’s no room for mistakes. 

Instead of making the document yourself, you can choose to consult professionals to help you write the perfect financial plan for your salon. 

  • Hire freelancers : You can collaborate with business plan consultants to make your financial plan. All you need to do is give them your salon’s budgetary estimates and inputs. 
  • Use Financial planning tools :  It asks you to enter all your financial information. They use built-in formulas to give you the most accurate financial statements that include all the charts and projections that an investor would expect to see in a business plan. 

Some important things to keep in mind :

  • Keep reviewing the target market, competitor analysis, and marketing and advertising strategies once every while, however frequently necessary.
  • Set realistic long-term goals that would be in sync with your current business performance. For example, you can think about branching out to two different locations after a few years. This will allow you to expand your local salon to an enterprise salon.

Go ahead with the pretty business plan 

An open sign

Executing a well-structured salon business should reap good-looking numbers. And the first step towards that is making a killer business plan for your salon.

It gives you the courage to place your faith in your business, and we don’t want you to doubt something you’re passionate about. Remember that you can convince the people in the market about all the great things your salon has to offer, only when you truly believe it yourself. 

So go on ahead, start creating your salon business plan today, and give your dreams a much-needed flight. Good luck :))

About Appointy We at Appointy, help business owners grow and run their businesses with our online scheduling software. This blog was a part of our ‘Manage your Business’ category, where we provide expert tips, and resources, or simply talk about the challenges that small and medium businesses face every day.  If you have any thoughts on this blog or would like to chat about your business struggles and achievements, let us know in the comments below.  We love a good talk!

25 comments

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How to write a business plan for your hair salon.

business plan for a hair salon

Starting a hair salon is a great way to be your own boss and make a living doing something you love.

It also offers potential for growth and diversification, allowing you to add additional services or products to your business.

But, before launching anything, make sure you have a business plan in place.

A business plan is an essential tool for any new project, and a hair salon is no exception. Writing a business plan will help to ensure that the project is well-thought-out and has a clear roadmap for success.

In short, a thorough business plan will help make sure your hair salon is profitable .

What should you consider when writing a business plan for a hair salon? What should be the main focus areas? What are the important financial ratios to consider? How can I speed up the process of developing an efficient business plan?

Please, find comprehensive answers to all these questions below.

Additionally, it's worth noting that you have the option to avoid starting your business plan from scratch.

Instead, you can download our business plan for a hair salon and adapt it to your project.

business plan beauty salon

Creating a business plan for a hair salon

Will a business plan be beneficial for your hair salon.

Yes, you should create a business plan to ensure the success of your hair salon.

Developing a robust business plan will enable you to:

  • learn about the hair salon market
  • be aware of new consumertrends and apply them to your project
  • identify factors for viability in a hair salon
  • understand the latest hair trends, styling preferences, and customer expectations in salon services
  • find a great unique value proposition for your hairstyling salon
  • investigate competitor customer retention strategies
  • find competitive advantages for your hair salon
  • find a business model that delivers consistent positive financial outcomes
  • establish and execute a solid and strategic action plan for long-term success
  • evaluate potential risks specific to a hair salon, including customer satisfaction, employee training, and product safety

Our team has drafted a business plan for a hair salon that is designed to make it easier for you to achieve all the elements listed.

How to outline a business plan for a hair salon?

Your business plan will include a wide range of numbers and valuable information. It must be presented in a structured format, to make easy to read and digest.

When we built our business plan for a hair salon , we took care to arrange it appropriately.

There are 5 parts within the business plan.

1. Market Opportunity

The introductory section has been named "Market Opportunity".

Our team has gathered essential information and metrics about the hair salon, providing valuable insights for entrepreneurs in this industry.

The data here is always kept current; we update it biannually.

2. Project Presentation

The "Project" section provides an opportunity to describe your hair salon, specifying the range of hair services you offer (cut, color, styling), specialized treatments, talented stylists, haircare products, salon ambiance, and the unique value proposition that guarantees exceptional hairstyling and customer satisfaction.

Remember to introduce yourself at the end of this section.

Discuss your passion for hairstyling, your expertise in hair trends and techniques, and how you plan to create a personalized and transformative hair salon experience for clients. Highlight your range of services, your skilled stylists, and your dedication to providing individualized consultations and exceptional customer service that leaves clients feeling confident, stylish, and satisfied at your hair salon.

We prepared text in our business plan. Customize it to suit your idea.

3. Market Research

Moving on, there's the "Market Research" section.

In this section, you will find a market segmentation analysis for your hair salon.

It includes a study of other hair salons in the area that will be competing with you. Your salon's unique hair services and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

The "Strategy" section outlines a comprehensive 3-year action plan, detailing the initiatives and steps needed to transform your hair salon into a highly profitable endeavor.

Furthermore, this section encompasses a comprehensive marketing plan, a strategy to mitigate risks, and a completed Business Model Canvas.

5. Finances

In the end, the section titled "Finances" is where you can present the financial plan and breakdown for your project.

business plan hair salon

How to write the Executive Summary for a hair salon?

The Executive Summary gives a summarized glimpse into the business plan of your hair salon.

Keep it brief, not going over 2 pages. Highlight the essential points.

When you share your business plan with an investor, this is the part they will read at the beginning. It should grab their interest and make them want to read the rest of the plan.

In the Executive Summary of your hair salon, address the following queries: what services does your hair salon offer? who is your target audience? are there other hair salons in the area? what makes your salon unique? what funding do you need?

How to do the market analysis for a hair salon?

Analyzing the market for your hair salon allows you to gain insights into factors such as customer preferences for hairstyling and haircare services, competition from other salons, and emerging trends in hair fashion.

By conducting a comprehensive market study, a hair salon can identify customer preferences, offer a range of hair services, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased appointments, and a prominent position in the local hair care industry.

Here's what we've incorporated into the "Market Research" section of our business plan for a hair salon :

  • fresh and updated data and statistics about the hair salon industry, including popular hairstyles, hair care trends, and customer preferences
  • a list of potential market segments for a hair salon
  • the competitor analysis
  • the competitive advantages to target for a hair salon

business plan hair salon

The key points of the business plan for a hair salon

What's the business model of a hair salon, business model of a hair salon.

A hair salon's model revolves around providing various hair care services, including haircuts, styling, coloring, or treatments. Revenue is generated through service fees, potentially offering retail hair products or additional beauty services.

The business model focuses on employing skilled hair stylists, providing personalized consultations, using quality hair products, creating a welcoming and trendy salon environment, and building strong client relationships through exceptional service and hairstyling expertise.

Success depends on stylists' talent and creativity, effective marketing to target individuals seeking hair services, maintaining industry trends and techniques, fostering positive client reviews and referrals, and providing a satisfying and rejuvenating salon experience.

Business model ≠ Business plan

Be clear on the distinction between "business plan" and "business model."

A business model is a blueprint for how a company operates and makes money.

In a business plan, you use the Business Model Canvas as a visual aid to explain the inner workings of your business.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a hair salon .

How do you identify the market segments of a hair salon?

Market segmentation for your hair salon involves dividing your potential customers into different groups based on their haircare needs, preferences, and demographics.

These categories may include factors such as haircuts and styling, coloring and highlights, extensions, or customers seeking specific hair treatments (e.g., keratin treatments, scalp treatments).

By segmenting your market, you can offer a range of hair services and solutions that cater to each segment's specific requirements. For example, you might provide a variety of haircut and styling options for customers seeking trendy or classic looks, offer professional hair coloring and highlighting services for customers looking to enhance their hair color, specialize in hair extensions and volumizing treatments, or provide specialized treatments for customers with specific hair concerns such as damaged hair, dry scalp, or frizz control.

Market segmentation allows you to effectively target your marketing efforts, showcase your hairstyling expertise, and deliver personalized and satisfying hair services that meet the unique needs and preferences of each customer segment.

In the business plan for a hair salon , you will get a detailed market segmentation, helping you understand your target audiences and their needs.

How to conduct a competitor analysis for a hair salon?

Without surprise, you won't be the only hair salon in your city. There will be other establishments offering hair styling, cutting, and coloring services to customers.

Your business plan must incorporate a thorough examination of your competitors, including their characteristics, strengths, and weaknesses.

Pay attention to their weaknesses (such as inexperienced stylists, lack of trending hairstyles, or poor customer satisfaction).

Why is it crucial to notice these aspects? Because these weaknesses can impact the client experience at hair salons. By addressing these elements, you can provide a wide range of hair services and treatments, offer skilled and creative stylists, and create a welcoming and stylish salon environment, establishing your hair salon as a preferred choice for hair care and styling needs.

It's what we call competitive advantages—work on developing them for a distinct business identity.

Here are some examples of competitive advantages for a beauty salon: skilled and experienced stylists, wide range of beauty services, relaxing and luxurious ambiance.

How to draft a SWOT analysis for a beauty salon?

A SWOT analysis can help identify potential strengths, weaknesses, opportunities, and threats that may affect the success of a hair salon.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a hair salon

The strengths for a hair salon

The letter "S" in SWOT signifies Strengths, highlighting the project's internal advantages or positive features.

For a hair salon, potential strengths include excellent customer service, a wide range of services, experienced staff, and attractive pricing.

The weaknesses for a hair salon

The "W" stands for Weaknesses, referring to the areas or aspects of the project that need to be addressed.

For a hair salon, potential weaknesses could include lack of repeat customers, limited marketing budget, lack of online presence, and lack of staff training.

The opportunities for a hair salon

O represents Opportunities in SWOT, referring to the external factors or conditions that can create opportunities for the project's advancement.

In the case of a hair salon, potential opportunities may include offering online booking services, expanding into new markets, providing additional services such as cosmetics and nail care, and advertising on social media.

The threats for a hair salon

The "T" in SWOT stands for Threats, which are external factors that may pose risks or challenges to the project's success.

How to outline a marketing strategy for a beauty salon?

A marketing strategy is a vital element of a business plan as it details how a business will attract customers and generate business.

A hair salon can attract clients in need of professional and trendy hairstyling services by implementing a targeted marketing plan that highlights the salon's skilled stylists and personalized approach.

Clients won't choose your beauty salon without effective marketing; showcasing your range of services, talented stylists, and relaxing atmosphere is crucial.

Are you implementing effective marketing strategies for your hair salon? Consider offering first-time client discounts or referral programs, showcasing trendy hairstyles or transformations on social media, and partnering with local fashion influencers for endorsements.

Don't fret if you lack ideas for your project's marketing strategy.

How to build a solid financial plan for a beauty salon?

A successful business plan must include detailed financial information, such as income and expense projections, cash flow statements, and a break-even analysis.

As you outline your business plan, you should include revenue projections for your hair salon.

The inclusion of a relevant and credible revenue forecast in your business plan adds credibility and enhances appeal to banks or investors.

Our financial plan for a hair salon is straightforward and equipped with automated checks, enabling you to validate and adjust your assumptions easily. This way, we make sure you're building solid financial projections.

Without a doubt, you'll need to come up with a basic budget for starting your hair salon. Make certain to include all expenses without exception - you can find them all listed in our financial plan!

The break-even analysis is a crucial tool in your financial plan, providing insight into whether your hair salon will become a profitable company or not.

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Trend & Triumphs: The 2024 Hair Professional's Roadmap Hair Biz Radio: How To Start And Run a Hair Extension Business

Hair Business Gurus Zakiyrah and Mikey discuss their trends through the hair business, personal triumphs, and industry insights. In this massively packed episode, we dive deep into the exciting new projects Mikey has been working on, share some heartwarming personal testimonies, and look forward to what 2024 holds for the hair industry. This podcast was recorded in the Private Label Studio for Hair Biz Radio. --- Send in a voice message: https://podcasters.spotify.com/pod/show/hair-biz-radio/message

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  • Hair Biz Radio: How To Start And Run a Hair Extension Business

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Risky business: 6 steps to assessing cyber risk for the enterprise

Risk is an unavoidable consequence of doing business in the digital age. These six steps for creating a risk assessment plan can help anticipate the danger.

risk bridge into fog

With the explosive rise of digital information, the continued success of modern enterprises has become inextricably bound to the effective use and management of data. However new efficiency-driving technologies, global interconnectivity, and remote work have also introduced several significant and high-profile information risks.

The specter of risk is leaving organizations with no choice but to improve the overall management of various cyber risks. What follows is a step-by-step process (based on the Information Security Forum’s IRAM2 methodology) that cybersecurity and risk practitioners can leverage to assess and manage information risk.

Step 1: Scoping exercises

The objective of a scoping exercise is to provide a business-centric view of an identified risk. This involves achieving alignment and agreement between stakeholders on the business scope (intellectual property, brand or reputation, organizational performance) and the technological scope of the assessment (information architecture, user profiling, assessment of a technology or a service).

This exercise can help determine which party will be responsible for assessing the various risk domains and the mandate behind a particular risk assessment. For example, choosing who will handle the introduction of a new business service or technology or address management concerns about a particular area of the business.

Step 2: Business impact assessment (BIA)

A BIA is used to determine the potential business impact should any information asset or system have its confidentiality, availability, or integrity compromised. The first step in a BIA is to identify all relevant information assets, such as customer and financial data, and information used for the operation of services and systems, across all environments and across the entire information lifecycle (input, processing, transmission, storage).

Once assets are identified, a value (rank or priority) can be assigned to them. Then the extent of any potential security incident can be determined by comparing realistic scenarios comprising the most reasonable impact with worst-case scenarios for each asset.

Step 3: Threat profiling

This phase helps to identify and prioritize threats and understand how they can manifest. Threat profiling starts with the identification of potentially relevant threats through discussion with key stakeholders and analyzing available sources of threat intelligence (e.g., an internal threat intelligence team or external commercial feeds).

Once the threat landscape is built, each threat it contains should be profiled. Threats can be profiled based on two key risk factors: likelihood of initiation — the likelihood that a particular threat will initiate one or more threat events — and threat strength, or how effectively a particular threat can initiate or execute threat events.

Threats can also be further profiled by separating them into an overarching group: adversarial, accidental, or environmental.

Step 4: Vulnerability Assessment

Once threat profiling is completed, the next phase is to identify the degree to which information assets are vulnerable against each identified threat. A vulnerability assessment is used to examine the extent of the relevance of each key control as well as the performance and quality of its implementation.

Each vulnerability must be assessed and expressed in terms of its relative strength of controls. The strength of controls can be calculated based on the stakeholder rating for that control, along with supporting information such as control characteristics, performance, deficiencies, and documentation.

At the end of the assessment, the practitioner will have gained a solid understanding of which information assets are vulnerable against which threat event.

Step 5: Risk evaluation

By evaluating risks, organizations can map how likely threats are to succeed, what the worst-case business impact would be, and how these can fit into their overall risk management plan.

The first step is to choose the most relevant impact scenario for each risk. This means deciding between a realistic outcome, considering the threat’s strength, or a worst-case scenario.

Secondly, it’s crucial to identify existing or planned controls that might lessen the threat’s impact. Like other control assessments, judging how much these controls reduce the inherent impact is subjective. Here, the experience of the risk practitioner and key stakeholders plays a vital role.

Step 6: Risk treatment

This step explores various approaches to managing information risk:

Mitigation: To build stronger defenses, improve existing controls and implement new ones to lessen the impact of a potential attack.

Avoidance: Avoid or eliminate any activities that could trigger or lead to potential risk.

Transfer: Allow another party to shoulder some level of risk, for example, obtaining cyber insurance.

Acceptance: Acknowledge the possibility of the risk happening and its potential fallout, but take no further action based on the organization’s risk tolerance.

Risk treatment should be guided by an organization’s risk appetite. Evaluate each risk individually to determine whether it exceeds the organization’s risk tolerance. When all risk treatment options are clear, create a risk treatment plan. Follow through with executing the plan and monitoring the results to ensure that risk management efforts are successful.

Using the six steps of risk assessment

At the end of the sixth step, the risk assessment process is effectively complete. The practitioner has gained a better understanding of the assessed environment. This includes a clear picture of the relevant threats, the associated vulnerabilities, and the prioritized risks. A risk treatment plan has been developed and implemented to reduce risks to an acceptable level.

It’s important to remember that the world of information security is dynamic; threat events, vulnerabilities and their impacts on the business are fluid and evolving. Practitioners and stakeholders should consistently evaluate risks especially when the organization or the environment undergoes major changes or mitigation efforts.

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steve_durbin

Steve Durbin is chief executive of the Information Security Forum, an independent, not-for-profit association dedicated to investigating, clarifying, and resolving key issues in information security and risk management by developing best practice methodologies, processes, and solutions that meet the business needs of its members. ISF membership comprises the Fortune 500 and Forbes 2000. Find out more at www.securityforum.org.

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A Bill Gates company is about to start building a nuclear power plant in Wyoming

  • TerraPower, which Bill Gates founded, plans to build its first nuclear power plant in the US.
  • CEO Chris Levesque told the Financial Times it wants to start work on a site in Wyoming in June.
  • TerraPower says its reactor design is cheaper because they're cooled by liquid sodium, not water.

Insider Today

A company cofounded by Bill Gates is about to start building next-generation nuclear power plants in the US.

Chris Levesque, CEO of TerraPower, told the Financial Times that his firm will start building at a site near a coal plant in Kemmerer, Wyoming in June, even if it hasn't received a construction permit from regulators by then.

The company plans to bring the nuclear plant online in 2030, he added.

TerraPower, which has raised $1 billion from backers, will use liquid sodium rather than water to cool its Natrium reactors, making them cheaper to run.

Most of the initial work at the Kemmerer site won't be related to nuclear activity, Levesque said.

Related stories

"When you use liquid sodium as a coolant instead of water it's a game changer," he told the FT.

"Natrium plants will cost half of what light water reactor plants cost … and we are moving our project along pretty aggressively."

Gates helped found TerraPower in 2006 and has been its chairman since then. The company has said its aim is to provide the world with a more affordable, secure, and environmentally friendly form of nuclear energy.

Its Natrium reactor is expected to cost $4 billion, with about half the cost being met by the Department of Energy. CRV and Khosla Ventures are among the company's VC backers, Reuters reported .

While Russian and Chinese state-controlled companies have already managed to launch smaller nuclear reactors, progress in developing similar tech in the US has stalled in recent years.

High interest rates have made it tougher for startups to draw in funding, while Russia's invasion of Ukraine and subsequent exclusion from financial markets has made it tougher for companies to get the uranium needed for their reactors.

In December 2022, TerraPower pushed back the launch of its flagship project by at least two years, which Levesque attributed to the war in Ukraine hitting supplies of high-assay, low-enriched uranium .

In October last year TerraPower missed out on making the shortlisted for the next round of the UK government's competition for small nuclear plants. Rolls-Royce is one of the leading contenders with its small modular reactor (SMR) designs and has already secured more than £200m of government funding in Britain.

Watch: Microsoft CEO unravels ChatGPT, ethical AI, and going bust

business plan for online hair business

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  1. How to Start a Profitable Hair Business [11 Steps]

    Create a solid business plan to present to potential lenders or investors, showcasing your market analysis, projected financials, and growth strategy. 7. Set pricing for hair services. Setting the right pricing for your hair services is crucial to the success of your business.

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    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.

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    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.

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    The 7 elements of an effective hair and beauty salon business plan. 1. Executive Summary. The executive summary provides a high-level overview of your business plan. It should outline the objectives of your hair and beauty salon, such as to offer high-quality services, to expand the client base, or to break into a new market.

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  15. How to Start a Profitable Hair Business [11 Steps]

    Create a solid business plan to present to potential lenders or investors, showcasing your market analysis, projected financials, and growth strategy. 7. Set pricing for hair services. Setting the right pricing for your hair services is crucial to the success of your business.

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    6. Identify Products and Services You Wish to Offer. This part of your salon business plan lays out all the different services that your salon will offer its customers. You can expect a wide range of services, from haircuts, styling, coloring, treatments, manicures, pedicures, facials, and many more.

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    1. Choose the Name for Your Hair Product Line. The first step to starting a hair product line is to choose your business' name. This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable.

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    Industry Overview. The spa and salon market stood at an impressive value of $138.9 billion in 2020, and as people continue to return to salons after the pandemic, the market's value is expected to rise at a higher rate. The rise in personal care and beauty spending is one of the major reasons for the growth of the hair salon industry.

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  21. How To Write the Perfect Salon Business Plan in 7 Simple Steps

    Here we've broken down the entire process into 7 easy-to-follow, foolproof steps, along with their templates, to help you create a successful salon business plan. Write a mission and vision statement. Create an executive summary. Analyze and identify your target market. Perform a competitor analysis.

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