business plan for online hair business

How to Start a Profitable Hair Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

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.

Are Hair businesses profitable?

Yes, hair businesses can be profitable. Many hair salons and barbershops are successful businesses. In addition to providing haircuts, they often offer a variety of other services such as hair coloring, styling, and hair treatments. Additionally, they often sell hair care products, which can be a profitable source of revenue.

Creating a comprehensive business plan is a critical step for success in launching your hair business. It will serve as a roadmap for your business, outlining your strategy, financial projections, and how you plan to achieve your goals. Follow these guidelines to draft a solid business plan:

• Define your business concept: Specify what type of hair business you're starting, whether it's a salon, a hair product line, or a hair extension business.
• Analyze the market: Research your target audience, study competitors, and identify your unique selling proposition (USP).
• Plan your services and products: List the services you will offer or the products you will sell, including pricing strategies and potential suppliers.
• Marketing and sales strategy: Detail how you will attract and retain customers through various marketing channels and what sales tactics you will employ.
• Operational plan: Include the logistics of how your business will operate daily, such as location, equipment, staff, and technology requirements.
• Financial projections: Provide a detailed financial plan with projected income statements, cash flow statements, and balance sheets for at least the first three years.
• Set goals and milestones: Identify short-term and long-term objectives, with specific targets and deadlines to measure progress.

How does a Hair business make money?

A hair business typically makes money by providing services such as cutting, styling, coloring, and other treatments to customers. The business may also sell hair products such as shampoo, conditioner, styling products, and other related items. The business may also offer additional services such as hair extensions, hair treatments, and other specialized services.

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?

Brainstorm a list of ideas that relate to the services you offer. Think of words that evoke the feeling you want your clients to have when they hear your name. Research similar businesses to gain an understanding of what names are already being used in your local market. Finally, test out potential names with a few trusted friends and family members to get their feedback.

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?

The specific licenses and permits required to run a hair business can vary depending on the location and type of services offered. Generally, you will need to obtain a business license, a health department permit, and a cosmetology license issued by the state board of cosmetology. You may also need additional certification for specialty services such as hair extensions and hair coloring. Additionally, your local government may require you to obtain special zoning permits or operate your business within certain guidelines.

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:

• Barber chairs
• Hair cutting scissors
• Hair clippers
• Hair care products
• Hair styling tools
• Hair accessories
• Accounting software
• Payment processing software
• Inventory management software

Starting a hair business requires not just skill and creativity, but also a solid foundation of protection. Business insurance is critical as it safeguards your enterprise from unforeseen events and liabilities. Here is how to obtain the appropriate insurance for your hair business:

• Research different types of business insurance, such as General Liability Insurance, Professional Liability Insurance, and Product Liability Insurance, to understand which coverages are most applicable to your hair business.
• Contact multiple insurance providers to compare quotes and coverage options. Ensure that the policy you choose covers the specific risks associated with hair services and products.
• Consult with a licensed insurance agent who has experience in small business and salon insurance. They can provide personalized advice and help tailor a policy to your unique needs.
• Consider the value of your equipment and inventory when determining the amount of coverage. This will help you decide on the right policy limits to protect your assets.
• Regularly review and update your insurance policy to ensure it matches the growth and changes in your business. As you expand services or increase inventory, your coverage needs may change.

Now that you've honed your hair styling skills and set up your business, it's time to attract clients and grow your brand. Marketing is crucial in creating awareness and building a loyal customer base. Here's how you can begin marketing your hair services effectively:

• Develop a strong brand identity that includes a memorable logo, color scheme, and brand voice to stand out in the hair industry.
• Create professional social media profiles on platforms like Instagram, Facebook, and Pinterest, where you can showcase your work, share customer testimonials, and connect with potential clients.
• Build a user-friendly website with a portfolio, service menu, pricing, and an easy booking system to make it convenient for clients to choose your services.
• Offer introductory discounts or bundle deals to new customers to encourage them to try your services.
• Network with other local businesses and professionals to establish referral partnerships and expand your client reach.
• Engage in community events or hair shows to demonstrate your skills and gain local recognition.
• Encourage satisfied clients to leave positive reviews online and refer friends and family for a referral discount.
• Invest in local advertising, such as flyers, posters, or ads in local publications, to target potential clients in your area.

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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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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Hair Salon Business Plan

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

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

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

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

Industry Overview

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

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

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

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Things to Consider Before Writing a Hair Salon Business Plan

Find your usp.

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

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

Build your client base

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

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

Find the ideal location

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

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

Design your salon for both form and function

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

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

Writing Your Business Plan

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

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

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

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

Hair Salon Business Plan Outline

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

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

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

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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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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Starting a Hair Care Business: A Beginner’s Handbook

So, you’re all set to weave your entrepreneurial dreams into reality and dive headfirst into the world of hair care business? Fantastic! Starting a hair care business can be an exciting journey filled with innovation, creativity, and endless opportunities to make people look and feel their best.

Here are some essential steps to kickstart your hair care business: research your market, craft a solid business plan, create a captivating brand identity, and curate a skilled team. With the right strategy, you’ll be on your way to making heads turn and hair shine.

In this guide, we’ll walk you through the essential steps, from concept to execution, to help you set up a thriving hair care business.

Table of Contents

Market Research: Lay the Groundwork

Market research serves as the critical cornerstone for laying the groundwork of your hair care business. Instead of hastily grasping your shears and leaping into action, take the essential step of conducting comprehensive market research. This phase is pivotal, as it offers a deep dive into understanding your potential customer base, their preferences, and the landscape in which you’ll be operating.

Are you inclined towards crafting natural hair products, offering upscale treatments, or catering to a specific hair type like curls? This decision acts as a compass for your business direction.

Delving into the market landscape allows you to discern gaps or unmet needs that existing market players might have overlooked. Here comes the significance of your unique selling proposition (USP). Your USP is what differentiates your business from the rest, showcasing what makes it exceptional. Think of it as your business’s distinctive trademark, something that customers can only experience through your brand.

Therefore, before you even contemplate picking up those shears and initiating business operations, ensure that you’ve diligently completed your market research. It’s not merely a ritual; rather, it’s your strategic guide in constructing a business that genuinely resonates with and serves your intended customer base.

Read more about: Salon Startup Costs: Building a Strong Financial Foundation

Create a Solid Business Plan

Developing a strong and organized business plan is akin to sketching out your path forward. This process involves outlining your business aims, articulating your mission, determining how you’ll price your offerings, and projecting your financial expectations. This plan should encompass all the elements, ranging from where you’ll acquire your products to how you’ll promote your business.

Why is this plan important? Think of it as your compass—a tool that directs your decisions. Moreover, if you’re considering financial backing from investors or loans, a comprehensive plan can work in your favor.

In simpler terms, your business plan is a blueprint that prevents you from getting lost in the forest of uncertainties. It’s your strategy document that helps you make informed choices and stay on course. By detailing your goals, mission, pricing, and financial projections, you’re setting up a roadmap that not only keeps you aligned with your vision but also demonstrates your preparedness to potential investors or lenders.

In essence, before you plunge into the intricacies of sourcing, marketing, and operational activities, ensure you’ve charted your course through a robust business plan. It’s your tool for direction and clarity as you navigate the terrain of the hair care business landscape.

Choose a Catchy Name and Brand Identity

Selecting a memorable business name and crafting a distinctive brand identity is like creating a recognizable face for your venture. This process involves choosing a name that aligns with your intended customers and mirrors the heart of your brand. Consider it as the initial handshake you offer to potential patrons.

Beyond the name, it’s valuable to create a logo that sticks in people’s minds and opt for a consistent color palette that captures your brand’s character. Visual appeal matters here, as it’s what catches the eye and lingers in memory.

Imagine your business’s name as a melody that resonates with those who hear it, while your logo and colors are the visuals that leave an imprint. They work together to form a distinctive personality that people can recognize and connect with.

In a nutshell, before you dive into the realm of business interactions, give careful thought to your business name, logo, and colors. These elements compose your business’s persona and play a role in attracting customers, much like the way flowers beckon bees with their colors and fragrance.

Legal Formalities and Permits

Time to talk about the legal stuff, but don’t worry, it’s not as dull as it might sound. This phase involves a few important steps to ensure your business is on the right side of the law.

Firstly, you’ll need to officially register your business. Think of it like getting your business a proper ID card. This makes your business a recognized entity and gives you certain legal protections.

Next, there are permits. These are like special permissions that the authorities grant you to run your hair care business. It’s a bit like having the green light to start a specific kind of business activity.

Then, there are health and safety rules. These rules are there to make sure that both you and your customers are safe. It’s like having a set of guidelines to follow so that everyone’s experience is a positive one.

So, by handling these legal matters, you’re making sure your business is set up strong and stable. It’s like building a solid foundation for a house. This way, you’re ready to face any challenges that might pop up while you’re doing what you love – taking care of hair and making people feel great.

Read more about: Salon Space Planning: Maximizing Efficiency with Layout Ideas

Location Matters

Choosing the right location for your hair care business is a critical decision that can significantly impact its outcome. Are you picturing a warm and welcoming salon, a high-end spa experience, or perhaps an online store to reach a wider audience? The place you settle on can have a significant impact on how many customers you attract and how easy it is for them to access your services.

Imagine your business location as the heart of your operation, where you welcome and serve your customers. Just like finding a home that’s close to work or school makes life easier, placing your business where it’s convenient for your target customers can do wonders for your foot traffic.

Visibility matters too. Think of it as placing a big sign that says, “Come on in, we’re open!” Having your business in a spot where people can easily see it can make a big difference.

Lastly, consider what your customers prefer. If your focus is on providing relaxation and luxury, a tranquil location might be ideal. On the other hand, if you want to offer convenience, being in a spot that’s easily accessible from where your customers live or work is key.

Your business’s location is like finding the perfect stage for your show. By choosing wisely and keeping customer convenience in mind, you’re setting the scene for a thriving hair care venture.

Curate an Exceptional Team

Assemble a remarkable team; they are the pulse of your hair care enterprise. Bring on board skilled hairstylists, color experts, and professionals who mirror your love for hair care. Their expertise and dedication to customer service will play a pivotal role in nurturing a devoted customer base.

Think of your team as the engine that powers your business forward. Just like a well-coordinated orchestra creates beautiful music, a skilled and passionate team generates remarkable experiences for your clients.

Hiring experienced stylists and colorists is akin to having accomplished artists working on a masterpiece. Their skillful hands and creative touch will transform your clients’ hair and leave them feeling confident and satisfied.

Beyond technical skills, seek individuals who embody your hair care philosophy. This way, your team will not only share your vision but also contribute to the welcoming atmosphere you wish to create.

Remember, the individuals you bring on board aren’t just employees; they are the faces of your business. Their dedication, expertise, and ability to connect with customers will determine the resonance your hair care business achieves in the market. In essence, your team is your business’s personality, and curating an outstanding one will set the tone for a hair care journey that leaves a lasting impression.

Products and Suppliers

The products you offer hold the key to your hair care business’s impact. The choice between triumph and disappointment hinges on the quality of what you provide. Partner with trusted suppliers to secure premium shampoos, conditioners, styling items, and tools.

Think of your suppliers as the backstage crew, working to ensure you’re equipped with the best resources. Just as a chef relies on top-notch ingredients to create a delicious meal, quality products are the foundation for excellent hair care results.

Consider what you stand for. If you’re all about natural or cruelty-free options, choose suppliers who share your values. Just like friends who share common interests, aligning with suppliers who understand and support your brand philosophy is vital.

Whether it’s eco-friendly, nourishing, or tailored to specific needs, the products you offer should be a reflection of your brand’s identity. Imagine them as your business’s ambassadors, speaking to customers even when you’re not there.

It’s not just about what you provide, but where it comes from. With the right products and trustworthy suppliers, you’re building a robust foundation for your hair care venture. So, invest wisely, and let your products tell your brand’s story with every use.

Read more about: Salon Savvy: Marketing Strategies for Hair Salons

Design a Memorable Space

When setting up a physical salon or spa, the way your space looks and feels holds immense importance. Imagine it like arranging a warm and cozy living room that reflects your style. This setting needs to be welcoming and comfortable, matching the essence of your brand.

Think of your interior design as the backdrop to your hair care story. Just as the right backdrop enhances a photograph, a well-designed space enhances your customers’ experience.

Consider the lighting, which is like the sunshine that sets the mood. Opt for lighting that flatters your customers and complements your chosen aesthetic.

Décor is your artistic touch. It’s like picking out the colors and patterns for your living room cushions. Make sure it aligns with your brand identity and resonates with your customers.

Arrange the seating in a way that encourages relaxation and connection. Think of it as arranging chairs for a friendly gathering. Comfortable seating ensures that your customers feel at ease while getting pampered.

Ultimately, your space design is the canvas on which your hair care vision comes to life. It should feel like a warm embrace, capturing the essence of your brand and ensuring that each customer enjoys a delightful experience. So, curate your space with care, and let it tell your brand’s unique story.

Effective Marketing Strategies

Time for the exciting phase – letting everyone know about your hair care venture! This is like telling friends about a cool new place to hang out. To start, use social media sites – they’re like virtual billboards where you can showcase your skills.

Imagine social media as a big community party. You share interesting stories and pictures to get people talking and interested in what you offer. Engaging content is your icebreaker – it sparks conversations and creates connections.

Influencer partnerships are like having popular friends at the party. When they talk about your business, their followers take notice. It’s like a recommendation from someone they trust.

But don’t forget the old-school methods. Think of flyers and local ads as handwritten invitations. They catch the attention of people nearby and remind them of your presence.

Collaborating with neighboring businesses is like joining forces with your neighbors for a street fair. You both benefit from the increased foot traffic, just like customers exploring your hair care services might discover other nearby shops.

So, spreading the word is all about building a friendly buzz, both online and offline. Use these strategies to make sure your hair care business gets noticed and becomes the go-to place for anyone looking to boost their hair’s charm.

Exceptional Customer Service

Delivering remarkable customer service is like welcoming guests into your home. From the very first greeting to their departure, make sure your customers feel special and well taken care of. Think of it as treating them like close friends who’ve come to visit.

Imagine your business as a cozy haven where customers can relax and enjoy themselves. Just as you’d offer your friends snacks and drinks, provide your customers with a comfortable and pleasant experience.

Every interaction matters. Answering questions, offering assistance, and providing a friendly smile are like little gestures that show you care. Just like how kind words and attentiveness make a conversation enjoyable, your customers should feel heard and appreciated.

Think of customer service as building connections. When you treat your customers with respect and kindness, you’re building a relationship that goes beyond a single visit. A happy customer is like a loyal companion who not only comes back but also tells others about the great time they had.

Exceptional customer service is the heart of your business. It’s about creating a warm and welcoming atmosphere, much like hosting a gathering where everyone leaves with a smile. By making your customers feel valued and pampered, you’re laying the foundation for a loyal and satisfied clientele.

Read more about: Salon Layout Design: Space of Elegance

Engage and Expand

Maintaining a vibrant atmosphere involves more than just the initial launch – it’s an ongoing journey. Think of it like hosting a continuous series of enjoyable gatherings. Plan workshops, events, and special deals to keep the energy alive.

Imagine your hair care business as a place where the party never stops. Hosting workshops and events is like inviting friends over to learn something new or have a good time. It keeps the buzz going and makes your customers excited to be a part of what you offer.

Online engagement is like chatting with your friends on social media. Respond to your customers’ comments and feedback just like you would in a conversation. This interaction makes them feel valued and heard, fostering a sense of connection.

As your business gains momentum, consider growing its scope. Think of it as expanding your circle of friends. Exploring new opportunities and offerings allows you to cater to different needs and reach more people.

Remember, it’s about keeping the fire burning. Just as a series of enjoyable get-togethers keeps friendships strong, a steady stream of workshops, events, and online interaction keeps your customers engaged and excited. This ongoing effort sets the stage for your hair care business to evolve and thrive.

Adapt and Innovate

In the realm of hair care, change is a constant companion, and your business needs to dance along. Think of it as learning new steps to keep up with the beat. Stay tuned to the latest trends, techniques, and products to remain in sync with what’s happening.

Imagine your business as a flexible dancer on a dynamic stage. Just as a dancer adjusts their moves to match the music, your business should adapt to the shifting trends and demands. Embracing innovation is like adding new dance moves to your routine – it keeps things fresh and exciting.

Being open to adaptation is like adjusting your sails to changing winds. If customers want new things, think of it as being ready to offer them. Flexibility ensures you’re catering to their evolving needs, just like a dancer tailors their performance to the audience’s preferences.

Staying relevant is the name of the game. Just as a skilled dancer learns new styles, your business should be willing to evolve. By embracing change and embracing innovative approaches, you’re setting the stage for a business that not only keeps up with the times but also sets new trends in the world of hair care.

Remember, every thriving venture begins with a dream and evolves with determination, hard work, and a sprinkle of creativity. As you embark on this exciting journey, keep in mind that challenges will arise, but each hurdle presents an opportunity to learn and grow. So, hone those scissors, craft your dreams, and watch as your hair care business evolves into a remarkable story in the expansive landscape of beauty and entrepreneurship.

Frequently Asked Questions

Q: What are the key considerations before starting a hair care business?

A: Prior to launching a hair care business, it’s crucial to conduct thorough market research, create a comprehensive business plan, establish a unique brand identity, source quality products, and build a skilled team.

Q: How do I choose the right location for my hair care business?

A: When selecting a location, factors like customer convenience, visibility, and alignment with your target audience’s preferences play a significant role. Carefully evaluate potential spaces to maximize foot traffic and accessibility.

Q: What steps are involved in building a strong brand identity for my hair care business?

A: Crafting a memorable brand involves choosing an appealing name, designing a recognizable logo, and selecting a consistent color scheme that resonates with your target customers and reflects your business values.

Q: What are some effective marketing strategies for promoting a hair care business?

A: Leveraging social media platforms, creating engaging content, collaborating with influencers, using local advertising, and organizing events are effective ways to spread the word about your hair care business and attract a loyal customer base.

Q: How can I ensure exceptional customer service in my hair care business?

A: Providing exceptional customer service entails hiring skilled and friendly staff, creating a comfortable and welcoming ambiance, addressing customer feedback promptly, and consistently going above and beyond to exceed customer expectations.

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

The information provided by SalonBusinessBoss.com (“The Site”) is for general informational purposes only. All information on the Site is provided in good faith, however, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site. Under no circumstance shall we have any liability to you for any loss or damage of any kind incurred as a result of the use of the Site or Reliance on any information provided on the Site. Your use of the Site and your reliance on any information on the Site is solely at your own risk. This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs. Terms and Conditions. ( https://salonbusinessboss.com/terms-conditions/ )

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.

BUSINESS STRATEGIES

How to create a hair salon business plan

• Nirit Braun
• Sep 12, 2023

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

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

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

Benefits of a hair salon business plan

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

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

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

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

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

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

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

Read more about how to start a service business .

6 steps to creating a hair salon business plan

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

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

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

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

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

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

Example of an executive summary for a hair salon business

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

02. Business and domain names

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

For more inspiration:

Nail business names

Beauty business name ideas

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

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

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

03. Market analysis and research

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

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

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

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

04. Operations plan

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

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

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

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

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

Operation plans example:

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

05. Marketing and advertising plan

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

Example of a marketing plan

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

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

06. Financial plan

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

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

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

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

Example of a financial plan

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

Got another business idea in mind?

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

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How to Write the Perfect Salon Business Plan in 6 Steps

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

No credit card required.

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

How Much Does It Cost to Run a Salon? 

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

Existing Salon 

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

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

Grand total: $62,000

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

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

Grand total: $89,500

You may also want to budget for the following:

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

How Profitable Is Owning a Salon?

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

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

6 Steps to Writing a Hair Salon Business Plan

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

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

Here are six steps to creating your salon business plan:

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

Let's dive deeper into each one.

1. Create an Executive Summary

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

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

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

2. Map Out Your Branding Vision

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

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

3. Research Your Industry

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

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

4. Create a Client Acquisition Strategy

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

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

5. Management and Operations

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

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

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

6. Financial Planning

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

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

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

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

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

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03.07.2024 8 min read time

Starting a Hair Braiding Business: Step-by-Step Guide for Entrepreneurs

• Businesses/Owners

Welcome to the ultimate guide for entrepreneurial hair enthusiasts looking to turn their passion into profit! Here at Booksy, we understand that starting a hair braiding business can be a daunting task, but with the right knowledge and support, it can be a rewarding and fulfilling journey. In this blog post, we'll walk you through the essential steps to launch your hair braiding empire. We'll cover everything from licensing requirements to crafting a solid business plan and even share some unique marketing strategies to help you attract clients.

As you start on this exciting entrepreneur journey, it's crucial to know the ins and outs of the industry, including the legalities of obtaining a braiding license. Ever wondered, "Do I need a license to open a braiding salon?" or "How do I get a braider's license?" Don't worry, we've got you covered! We'll delve into the specifics

With our guidance, you'll be well-equipped to navigate the world of hair braiding entrepreneurship. So, buckle up and get ready to braid your way to success! 

Understanding the Hair Braiding Industry

The hair braiding industry is thriving, making it a fantastic opportunity for entrepreneurs and industry professionals to jump in and make their mark. As natural hair care and diverse hairstyles gain popularity, hair braiding has emerged as a go-to choice for individuals seeking to express themselves and try out versatile looks. To make a splash in this burgeoning market, it's essential to get a feel for the industry's key elements. Think of it like mastering a new dance routine: you must learn the steps, practice until you're confident, and then show off your moves to an enthusiastic audience. In the hair braiding world, your skills, knowledge, and connections are your dance moves, and your clients are the eager audience ready to be wowed. By understanding the ins and outs of the hair braiding industry, you can help make this vision a reality while carving out a successful career path for yourself. It's all about learning the ropes, honing your skills, and connecting with the right people to create a thriving business.

Crafting a Hair Braiding Business Plan

A well-structured business plan is the cornerstone of your hair braiding venture, serving as a roadmap that guides you through the exciting journey of entrepreneurship. Crafting a solid plan is crucial for several reasons. Firstly, it provides clarity of vision, helping you visualize your hair braiding services, target audience, and financial aspects. This clarity enables you to make informed decisions and stay focused on your goals.

Secondly, a business plan allows you to delve into your local hair braiding industry and understand your target audience, providing valuable insights into your competition and potential customers. This understanding enables you to tailor your services and marketing strategies effectively. Additionally, a business plan helps you estimate startup costs, ongoing expenses, and revenue projections. By conducting a break-even analysis, you'll gain a clearer understanding of the number of clients needed to cover costs and turn a profit. If you plan on seeking financial assistance, a well-crafted business plan demonstrates your professionalism and commitment to potential investors or lenders, increasing your chances of securing the necessary funding.

Lastly, a business plan allows you to track your progress against your initial projections and make adjustments as needed, ensuring your hair braiding venture remains on a healthy growth trajectory. In summary, a comprehensive business plan sets you up for success and prepares you for the challenges of the ever-evolving world of entrepreneurship.  

Determining Your Hair Braiding Services

• Identify your niche: Decide which hair braiding services you'll offer. Focus on techniques you excel at and enjoy doing. Click here to learn how to define your target audience with our curated guide .   
• Research the competition : Understand what other hair braiding businesses in your area are offering and identify gaps in the market.  
• Pricing strategy : Set competitive prices for your services based on your location, skill level, and the going market rates. We've crafted the perfect Hair Salon Pricing strategy with free templates, click here to discover ! 

Financial Planning for Your Hair Braiding Business

• Startup costs: Calculate the initial investment required for equipment, supplies, and marketing materials. 
• Ongoing expenses: Estimate monthly costs such as rent, utilities, and inventory replenishment.
• Revenue projections: Forecast your earnings based on the number of clients you expect to serve and your pricing strategy.
• Break-even analysis: Determine how many clients you need to serve to cover your costs and start making a profit.

If you're looking to finance your salon, we have the secret sauce made by Booksy pro's with all the ins and outs to make it as easy as possible for you. Click here to learn more

Legal and Regulatory Considerations for Hair Braiding Businesses

Compliance with legal standards is essential for the uninterrupted operation of your hair-braiding business. Familiarize yourself with the various legal and regulatory aspects to ensure your venture runs smoothly. Here are some resources to help you navigate these complexities:

• Business Registration and Hair Braiding Business Structure U.S. Small Business Administration (SBA) : The SBA offers guidance on choosing the appropriate business structure for your hair braiding business. Visit their website (https://www.sba.gov/business-guide/launch-your-business/choose-business-structure) for more information.  
• LegalZoom: LegalZoom provides an interactive tool to help you determine the best business structure for your needs. Visit their website (https://www.legalzoom.com/business/business-formation/compare.html) to explore your options.  
• Local Small Business Administration (SBDA) : SBDA offers counseling and resources to help you establish your hair braiding business. Find your local Small Business Development Center at https://www.sba.gov/local-assistance/resource-partners/small-business-development-centers-sbdc.

Licenses, Permits, and Insurance for Hair Braiding Businesses 

To operate your hair braiding business legally and safely, obtaining the necessary licenses, permits, and insurance is crucial. These requirements vary by location and can be complex, but securing the right documentation ensures your business is compliant and protected. To simplify this process, consider the following resources:

• Professional Beauty Association (PBA): PBA provides state-specific information on licensing requirements and cosmetology valuable information Visit their website, specifically blogs they are constantly updating with information (https://www.probeauty.org/summer-legislative-update/) for more details.   
• Insurance for Hair Businesses: Obtaining comprehensive insurance coverage is crucial. Companies like HISCOX (https://www.hiscox.com/small-business-insurance/industries/salon-insurance) and Allstate (https://www.allstate.com/business-insurance/industries/salon-insurance.aspx) offer tailored insurance options for hair braiding businesses.

Curating a Comfortable Client Experience

Now that you've laid the groundwork for your hair braiding business, it's time for the fun part: creating an unforgettable experience for your clients! A comfortable and clean environment not only keeps your customers happy but also sets the stage for a thriving business. After all, a happy client means a happy braider!  

Creating an Inviting Atmosphere 

Your hair braiding studio should be a sanctuary where clients feel relaxed and at ease from the moment they step in. From the waiting area to the braiding stations, every corner should exude warmth and reflect your commitment to client comfort. 

By cultivating an inviting atmosphere, you encourage clients to return time and again, fostering loyalty and positive word-of-mouth. Remember, a delightful client experience is the foundation of a flourishing hair braiding business. Get to know more strategies with our curated blog for improving your client's experience. Click here to learn more

Marketing Your Hair Braiding Business

A well-executed marketing strategy is essential for introducing your hair braiding business to the world and attracting a steady stream of clients. By employing smart marketing tactics, you lay the foundation for a thriving venture that stands out in a competitive industry.

Building a Strong Brand Identity

Your brand is the heart and soul of your hair-braiding business. It should reflect the exceptional quality and cultural richness of your services. To help you achieve this, Booksy is an indispensable ally. As a leading booking and business management platform, Booksy enables you to create a cohesive and professional brand image. With a user-friendly interface and a suite of marketing tools, Booksy simplifies the process of building a brand that clients will recognize and remember.

Leveraging Digital Marketing and Social Media

In today's digital age, leveraging social media is crucial for showcasing your work, engaging with your community, and attracting new clients. To effectively manage your online presence:

• Connect with popular social media platforms like Instagram and Facebook to engage with potential clients and showcase your work. Ever heard about social proof? Click here to learn how to implement it correctly in your hair-braiding salon   
• Implement an online booking system , enabling clients to schedule appointments at their convenience. Ready to start your Booksy Free Trial? 14-days for free, on us. (no credit card required) Click here to get started!   
• Utilize marketing tools that help create , schedule, and publish content, saving you time and effort. Learn the top 5 online marketing tools to attract and engage clients.   
• Maintain open lines of communication with clients, fostering strong relationships and loyalty.

By implementing these strategies, you'll amplify your hair braiding business's visibility and drive growth. Tools like Booksy can assist in streamlining these processes, offering seamless integration with social media platforms, 24/7 online booking, time-saving automation, and enhanced client engagement features. By combining a solid marketing approach with the right tools, you'll set your hair braiding business up for success.

As you start this journey it's good to remember that building a successful salon takes patience, resilience, and a positive attitude. With Booksy as your partner, you'll have the tools and support you need to make your business thrive. Our guide has given you valuable tips to help you build a strong brand, schedule appointments easily, and market your business effectively. With Booksy, you can focus on creating a welcoming space that celebrates culture and artistry. Embrace the challenges ahead, knowing that Booksy is here to help you along the way. Your skills, determination, and the power of Booksy will make your hair-braiding business a success. We're excited to be part of your journey and can't wait to see what you'll achieve!

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

• January 23, 2024
• For Salon Owners

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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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

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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

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.

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 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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Wig Business Plan Template

Written by Dave Lavinsky

Wig Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their wig companies.

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

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

Download our Ultimate Business Plan Template here >

What is a Wig Business Plan?

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

Why You Need a Business Plan for a Wig Business

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

Sources of Funding for Wig Businesses

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

Finish Your Business Plan Today!

How to write a business plan for a wig business.

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

Executive Summary

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

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

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

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

Company Overview

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

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

• Brick and mortar : this type of wig store is located in a brick and mortar retail location and sells a variety of wigs.
• Online: this type of wig store is found online and does not have a physical retail presence.
• Custom: this type of wig store makes custom wigs for a customer’s specific need.
• Show wigs : this type of wig store specializes in providing eccentric, bright, and show stopping wigs to be worn for performances and shows.

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

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of customers with positive reviews, reaching X number of customers served, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

The following are examples of customer segments: individuals of all ages, performers, cancer patients, and the elderly.

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

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

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

Finish Your Wig Business Plan in 1 Day!

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

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

Competitive Analysis

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

Direct competitors are other wig businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes big box retailers, hair stylists, or theater production companies. You need to mention such competition as well.

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

• What types of customers do they serve?
• What type of wig business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

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

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

• Will you provide custom made wigs?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

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

Marketing Plan

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

Product : In the product section, you should reiterate the type of wig company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide tupets, weaves, or hair extensions?

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

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

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

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

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

Everyday short-term processes include all of the tasks involved in running your wig business, including taking inventory, customer orders and fulfillment, billing customers and/or vendors, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your Xth wig, or when you hope to reach $X in revenue. It could also be when you expect to expand your wig business to a new city.  

Management Team

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

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

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

Financial Plan

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

Income Statement

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

In developing your income statement, you need to devise assumptions. For example, will you sell 5 wigs per day, and/or offer discounts for buying more than one wig? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.  

Balance Sheets

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

Cash Flow Statement

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

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

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

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your retail store location lease or a list of wigs you plan to offer.  

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

Wig Business Plan FAQs

What is the easiest way to complete my wig business plan.

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

How Do You Start a Wig Business?

Starting a wig business is easy with these 14 steps:

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

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

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan advisors can give you a winning business plan.

Other Helpful Business Plan Articles & Templates

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.

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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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.

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.

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.

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.

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.

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.

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.

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.

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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Hair Salon Business Plan

Start your own hair salon business plan

Cranium Filament Reductions

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

First impressions are everything. A really good haircut is key to making a good impression. Not everyone can afford to spend a few hundred dollars and a few hours to get a good haircut. A lot of families have budget constraints. They need a place to go to get this stuff done. 

Cranium Filament Reductions will stand out by providing superior customer attention. This is particularly important in the "quick salon" space that Cranium operates in because margins are a bit lower and the goal of a quick salon is to crank through customers.

The hair styling industry is highly fragmented with national chains such as Regis Corporation, which operates diverse franchises catering to all the market segments, and also including thousands of "mom and pop" salons that are very restricted in scope and services. This makes for a highly competitive market that has low barriers to entry and exit. In addition, the clients of hair styling have significant leverage due to the low switching costs they have. However, most companies have tried to pursue only one general strategy in gaining market share. Cranium believes that it is possible to offer a differentiated service through improved customer service at no greater significant cost if the right employee incentives are provided.

Competition

The buying patterns of men and women are quite different. Typically men are more price or convenience sensitive. Men typically care less about the task of getting their hair cut. For them whatever is easiest works best. Women on the other hand are more caught up in hair styling and tend to bond more with their stylists. Because they bond more, they are much more loyal to their stylist. Once a stylist has earned their trust they are more willing to blindly put their hair in the stylists hands.

Cranium Filament Reductions’ mission is to provide reasonably priced, convenient hair styling. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. 

Expectations

This is a service business so it doesn’t generate high profitability. It does generate a good way for its people to make a living. 

Financial Highlights by Year

Financing needed.

The financing needed is $105,000. That includes a $45,000 loan, and owner investment (Susan) of $60,000. 

Problem & Solution

Problem worth solving, our solution.

Cranium Filament Reductions is a hair salon that allows the entire family to have their hair needs satisfied in one convenient visit. 

There are many "quick salons" like Cranium, however, many of these salons, such as Cost Cutters, only provide the minimum services, whereas the upscale salons can be inconvenient due to scheduling requirements and cost. The owner of Cranium perceives an unfulfilled customer need for a low-cost salon that provides maximum flexibility and strong customer attention. Using this strategy, Cranium will gain significant market share and create critical long-term relationships with its clients.

Target Market

Market size & segments.

Cranium Filament Reductions will target each of the three groups separately. The males will be targeted by offering a quick, convenient, service. Because men tend to have shorter hair, they usually require haircuts more often. If they are getting a cut every four weeks and work normal business hours, most barbers are closed when the male customers have free time. Cranium Filament Reductions will cater to males with evening hours, no appointments necessary, and quick turn around times.

Generally females prefer the allure of upscale salons, however, not everyone can afford this luxury. For this reason Cranium Filament Reductions will provide the same quality hair styling, without the expensive price. Cranium will target these customers by emphasizing the sophisticated, ultra-hip styling that Cranium can offer.

Cranium Filament Reductions will also target mothers with children by offering the kids toys to play with while they wait and child-friendly hair stylists. Additionally, children receive a special rate reflecting the fact that children’s hair grows so fast that it can be expensive to keep up with regular cuts, as well as the recognition that it generally takes a lot less time to cut a child’s hair so it should be inherently less expensive.

Current Alternatives

Cranium Filament Reductions’ competitors include:

• Traditional barbers . They rarely serve appointments, it is generally a walk-in service. While barbers are usually willing to provide whatever cut you are interested, they are generally providing straight forward haircuts, typically on the conservative side. The advantages of a barber is they are inexpensive and easy to use. Their disadvantages is often conservative styling capacities, sometimes a long wait as the barber may be an old timer who enjoys to chit chat.
• Franchised "quick salons."   An example of this would be Supercuts or Best Cuts. In essence this is a franchised version of Cranium Filament Reductions. The advantage of this style is the store will be the same from location to location and some people like this predictability. 
• Independent salons . These shops typically focus on a specific niche and do not serve a wide group of customers. The advantages to these could be an independent salon that fulfills all of your needs. The disadvantage is that because they tend to be more focused, more often than not this type of salon will not offer exactly what customers are looking for.

Our Advantages

Cranium Filament Reductions’ competitive edge is based on faultless customer service. Cranium Filament Reductions recognizes that the hair cutting/styling market is crowded so it is difficult to stand out. Cranium Filament Reductions will stand out by providing superior customer attention. This is particularly important in the "quick salon" space that Cranium operates in because margins are a bit lower and the goal of a quick salon is to crank through customers.

Cranium will invest time and money into training to ensure that clients receive the best experience possible making it easier to turn them into long-term customers. By providing superior customer service, Cranium will be able to effectively compete against and outlast larger chains and independent stores.

Keys to Success

Our keys to success are: 

• To create a service-based company whose goal is to exceed customer’s expectations.
• To increase the number of clients served by at least 20% per year through superior performance and word-of-mouth referrals.
• To develop a sustainable start-up business, contributing to increased employment of community residents.

Marketing & Sales

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Cranium Filament Reductions will market themselves as a hair salon that serves everyone, men, women, and children. This will be done through flyers to be sent out with the local newspaper. Cranium will also have an in-store promotion for the first few months to lure new people in. Lastly, Cranium will offer a discount for a few months to people that refer new customers.  

We intend to be active in social media, with consistent presence, offering tips on style plus information on local events and issues, occasionally humor, social media presence that helps people get to know us, like us, and trust us. 

Cranium Filament Reductions’ sales strategy will be based on extremely professional interactions with the customer. Typically the "quick salons" concentrate on being quick and inexpensive, often at the expense of customer service. Anytime that a prospective customer is speaking with someone at Cranium’s the employee will have an opportunity to impress the customer. Employee training will emphasize seizing these opportunities.

Cranium Filament Reductions will also have the opportunity to increase sales of their retail hair care products every time they have a customer in the chair. Cranium offers deep discounts on the hair care products for employees to encourage usage so they can explain to the customer about their personal experiences. Additionally, Cranium offers a product-based commission structure for the hair care products where they give away the product to the employee for commissions for selling the items to their customers. These personal testimonials and commission structure will allow Cranium to generate good sales from the retail hair care products.

Location and Equipment

This will be a store front with 1500 square feet. There will be: a waiting area with magazines and a display with hair products, a reception desk, 3 hair dressing chairs, 3 washing stations towards the back of the store, one computer and one cash machine. This will be a small space but will have everything that one expects when going into a hair cutting space. 

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are:

• The # of customers in a day 
• The # of customers in a month 
• Walk-ins vs clients who called to make a appointment ahead 
• The # of products that are sold to clients or walk-ins every month 
• The money brought in on the most popular stylist vs the least popular stylist 

Ownership & Structure

Cranium Filament Reductions is an Oregon corporation owned entirely by Susan Sever and is located in Shaker Hts., Oregon.

Ms. Sever will be handling all hiring and training, purchasing, and retail sales. She will also hire a receptionist to manage all of the appointments as well as the people who walk in and be responsible for the point of sale transactions. Cranium will also be hiring six part-time hair stylists who will operate on a hourly/commission basis. 

Ms. Sever will be using a partial commission basis to create incentives for superior customer attention. The more her stylists attend to the customer’s needs, the more money they will make off commissions. Cranium will invest time and money into training to ensure that clients receive the best experience possible making it easier to turn them into long-term customers. 

Management Team

Susan Sever received her bachelor’s degree from Miami University in Oxford, OH. While pursuing her degree Susan worked in the restaurant industry. For the four years during school she was a server in an upscale restaurant. While this provided very good income, particularly on the weekends, she longed for management experience.

After graduation she sat down with the owner of the restaurant and presented him with a well reasoned case as to why she should be manager of the establishment. Her main points were her intimate knowledge of the industry and the restaurant, her superior communication skills with the customers and her colleagues, and her ambition to succeed. The owner was surprised by the well-reasoned arguments, enthusiasm, and ambition to take on more work that he promoted her to manager on the spot.

Susan worked as manager for three years, learning all the intricacies of operating a business. These were three rewarding, but long, years. Toward the end, the long hours and work at night took its toll on Susan and she was burned out. When contemplating new opportunities she was brainstorming a  way in which she could combine something she loved with something that she would be the owner of. She loved hair and had the experience of operating a business so after a lot of market research she undertook the task of writing a business plan.  

Personnel Table

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

Our Key Assumptions: 

– Men would like to have great haircuts and do not mind paying for them 

– Men and women need hair products 

– Our cost for men’s haircuts will be industry standard of 43% and our cost for women’s haircuts, children’s haircuts and products are 27%

– Our friends  and family see the merit of our business and would be happy to give us the cash to run the business. 

Revenue by Month

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

Cranium Filament Reductions will incur the following start-up costs:

• Computer with point of sale terminal.
• Computer with printer for back office.
• Five cutting stations, each station requires a barber chair, cabinet, large mirror, blow dryer, curling iron, electric razor, several pairs of scissors, spray bottle, two sided mirror, and assorted combs and brushes.
• Desk for reception area.
• Three couches for the reception area.
• Display shelf for sale of retail products.
• Assorted plants.
• Assorted toys for the children.
• Legal fees for business formation and generation/review of contracts.

Please note that the following items that are assets to be used for more than a year will be considered a long-term assets and will be depreciated using the straight-line method accepted by G.A.A.P.

Sources of Funds

Susan will be contributing $60,000. The additional $45,000 will come from a business loan. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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More From Forbes

How to sell a business quickly.

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Business owners underestimate the time it takes to prepare, market, and sell their business.

Do you ever have those days when, regardless of how much you love your business, you feel like you want to sell it - like NOW? Selling a business isn't easy and how to sell a business quickly is a bigger challenge.

The number one mistake business owners make -and I’ve been there too- is believing that they can sell their businesses quickly. They underestimate the time it takes to prepare, market, and close a sale.

How long does it take to sell a business?

If you think that selling your business will be done and dusted in just a few months, you might need to adjust your expectations. Optimally, even with a well-prepared business, expect the sales process to take between 6 to 12 months from preparation to closing.

If your business isn't immediately appealing to buyers, exit-ready, or not valuable enough for you to want to sell it, which is true for about 80% of businesses, the timeline could extend to several years, rather than months.

“Due diligence was supposed to take 90 days instead it took 6+ months. Even with clean financials and great process documentation. It was not anyone's fault but once you get the lawyers involved things slow down.” Nathan Hirsch founded and sold Freeup.net and now runs Outsourceschool.com

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Understanding how to prepare for your exit is crucial. Without the right strategies, implemented early, you risk making the sales process longer or having to compromise on price.

If you're unsure about the right approach, don't worry. This article will guide you on the appropriate time and method to plan your exit.

Proven Tactics to Sell a Business Quickly

Before taking the bold step of selling your business, it's crucial to have a well-thought-out plan. This will not only ensure a smooth transition but also help you maximize your profits.

“I’d love to say I started my business with an exit plan in mind. But truly, it didn’t occur to me till about year 12! Now that I started another business, it has a radically different business model as I’m in a different stage of life. Owners need to plan for that too.” Leona Watson, exited founder of Cheeky Food Events.

Here are 5 steps to sell a business fast:

• Step 1: Start planning from the start of your business (or now)
• Step 2: Streamline your business operations
• Step 3: Determine the ideal timing for your exit
• Step 4: Organize your legal and financial documents
• Step 5: Develop a robust transition plan

These steps, if followed diligently, will put you in a favorable position when the time comes to sell your business.

5 steps to sell your business quickly

Step 1: the best time to plan your exit was when you started your business, the second best time is now.

The journey towards preparing and selling your business for maximum value begins the moment you draft your business plan. Businesses that are built to sell choose different growth strategies and set up the business in such a way that the selling process is much easier in the future.

“We build all our businesses to be sellable from day one. Even if we don’t want to sell them. That means clean financials, great team and processes, and a backbone of SEO.” Nathan Hirsch founder of Ecombalance.com , accountsbalance.com , nathanhirsch.com and trioseo.com

Step 2: Improve Your Business Operations

A business that operates smoothly and effectively is always appealing to prospective buyers. Strive to ensure your business is efficient and all processes are well-documented. Your team can triple your exit price , so have a team that runs the operations and a second-tier management to rely on.

“Three things we’ve never cut corners on for our startups: lawyer, accountant, and foundational software. When selling your company, you need to be able to move quickly. These three things are the backbone of your operations.” Melissa Kwan, exited entrepreneur and current Cofounder of ewebinar.com , profitled.fm, and melissakwan.com

Step 3: Choose the Right Time to Exit

Timing your million-dollar business exit is an art and it significantly impacts the outcome of the sale. Ideally, you should sell when your business is thriving and market conditions are favorable. Avoid selling during a market downturn or when your business performance is subpar.

With 2,400 businesses for sale every day, we are currently in a buyer’s market, which will likely last for at least another decade. There are more businesses for sale than there are buyers looking to acquire. When they have the luxury of choice, you as the seller need to build an irresistible business for acquirers.

Advice: Do not wait until you're burned out or the market is in a slump. Stay informed about industry trends and seek professional advice to determine the best time to sell. By planning ahead, you will sell your business on your terms.

Exited business owner and current CEO of Create & Grow Georgi Todorov testifies that exiting fast is possible when you are ready and the market time is perfect:

“I sold my online business within one month. But that’s because I had prepared all details in advance. Also, I was proactively looking for a potential buyer.”

Step 4: Get Your Legal, Financial and Operations Documents Ready

Having all your legal, financial and operations documents organized and readily available instills confidence in potential buyers and it will make your life less stressful once you start the selling process. Having your documents in order also increases your business's value.

“I think the smartest thing I did was implement a reward system for documenting processes and made it a competition with staff, with random prizes given out. Every week for 6 months a new process was documented across all areas (Sales, Ops, Finance, Tech). The team owned the creation, the implementation and the updating. When I went to sell years later, the operational documents were all ready. It made us look professional, organized and best of all…valuable.” Leona Watson, ex Founder and CEO of Cheeky Food Events.

Step 5: Make a Plan for the Transition

A comprehensive transition plan, made upfront, makes your business attractive to potential buyers. It demonstrates your commitment to ensuring a seamless change of ownership.

Tip: Draft a detailed plan outlining how the new owner will assume control of the business.

Your Exit Strategy Challenge

• Reflect on the steps provided in this article and start creating your exit strategy.
• Consider the exit-readiness of your business.
• Share your plan with trusted mentors and business owners to get valuable feedback.

So, when that feeling pops up again of wanting to sell your business now, be ready for it.

Prepare your business now to sell it for maximum value later.

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Apple, Google and Venmo fight new U.S. plan to monitor payment apps

Their lobbying campaign targets a federal push to subject some tech companies to the same rigorous oversight as banks. One company — Block, which owns Cash App — is also under investigation.

The U.S. government is weighing whether to treat Apple, Google and PayPal-owned Venmo more like banks — and regularly inspect some of their operations — in a move meant to protect millions of Americans who now use their smartphones to pay at the register and send money to family and friends.

But the prospect of heightened federal oversight has sparked deep and wide-ranging unease throughout the tech industry, triggering a lobbying offensive that aims to limit the government’s power to monitor mobile wallets, accounts or other digital payment services.

The spats have occurred with little fanfare on Capitol Hill and at the Consumer Financial Protection Bureau (CFPB), which unveiled its proposal for new tech scrutiny in November. The agency seeks to subject the largest payment apps and services — from money-transferring tools like Cash App, for example, to the smartphone wallets offered by Apple and Google — to the same rigorous checkups as their bricks-and-mortar predecessors.

In practice, the CFPB would gain the ability to conduct on-site reviews at these companies and examine their private documents and communications, a form of monitoring — known as supervision — meant to ensure the stewards of Americans’ money have sound financial practices. Major banks, such as Bank of America, Chase and Wells Fargo, are already subject to such federal inspections.

The CFPB has portrayed its proposal as a response to rising complaints from smartphone users, who say they struggle to resolve fraudulent charges, restore missing balances and address myriad other troubles with many popular digital payment services. While the agency’s rules are not final, regulators have also explored ways to invoke their existing authorities so that they can inspect select tech companies on a case-by-case basis, according to two people familiar with the matter, who spoke on the condition of anonymity to discuss the confidential rule-writing process.

But the tech industry has been unsparing in its opposition, arguing there is no proof that their products harm consumers. An executive at the lobbying group TechNet, which represents Apple, Google and PayPal, told lawmakers at a congressional hearing in March that the government’s proposal is legally “defective.” Other tech lobbyists have expressed fears that the CFPB stands to gain unprecedented access to their businesses, potentially enabling the government to open probes and levy punishments if it finds misconduct even outside of payment apps.

The fierce resistance suggests the tech industry would sooner sue the CFPB than submit to greater federal oversight of digital payments, foreshadowing yet another rift between government regulators and the tech and financial heavyweights under their watch.

“These are not services that a few people are using. These are products that are becoming almost a standard part of how people transact, so it’s pretty urgent,” said Adam Rust, director of financial services at the Consumer Federation of America, which has encouraged the CFPB to act. “There’s widespread use and systematic inconsistency in [oversight].”

Apple, Google and PayPal each declined to comment. Carl Holshouser, executive vice president at TechNet, said the organization does not oppose federal oversight. But he said the CFPB wrote its rules so broadly that small and medium-size businesses could face unnecessary inspections, too.

“I think the CFPB’s intent is to have a much wider regulatory purview, which will give them the ability to regulate all of the tech industry,” he said.

Rohit Chopra, the director of the CFPB, said in a statement that the agency’s proposed rules would ensure “large payment companies of all types get the appropriate oversight,” adding: “Families should get the same consumer protections regardless of whether their payments are handled by a Wall Street bank or a Silicon Valley tech giant.”

The new scrutiny in Washington reflects the rapid sea change in the way Americans spend cash. Mobile wallets, like Apple Pay, are now commonplace, and peer-to-peer money transfer apps, including Venmo, have experienced a meteoric rise over the past decade. An estimated 159 million Americans made such transactions in 2023, according to data from eMarketer , which projects that just under 75 percent of all smartphone owners will use such tools by 2027.

Spanning a vast array of services, payment apps and platforms are regulated by a patchwork of laws, from state money-transfer licenses to federal rules that govern deposits, data and consumer disputes. While some states already supervise tech companies, the extent of their reviews — and the nature of their enforcement efforts — can vary dramatically across the country, according to Christopher Odinet, a law professor at the University of Iowa who specializes in consumer finance.

“These regulators, they come in many different shapes and sizes,” he said, noting some have “really thin staffs and really lean budgets.”

But the tech companies that offer these products are not banks, so they may not receive the same federal scrutiny as other financial institutions even when their offerings are indistinguishable to the average consumer. If a user were to store money in their account on PayPal, for example, that cash isn’t always federally insured — whereas a traditional bank deposit would be guaranteed by the government and regulated accordingly.

Citing these disparities, the CFPB issued rules in November meant to subject tech giants to tougher oversight. The agency proposed supervising the largest digital consumer payment companies — those with more than 5 million transactions annually — to ensure they follow federal laws, including those that prohibit deceptive practices and protect consumers’ data.

With more aggressive monitoring, the CFPB said, it could more easily spot and address violations because the supervision process empowers the government to seek changes to companies’ practices — or take legal action. The agency’s plan arrived roughly two years after Chopra ordered some of the same companies to turn over data related to their payment apps.

“The traditional lines we drew within the financial sector have become fuzzy over the past several decades,” Chopra said in a speech before the proposed rules were released. “Big Tech companies are now taking advantage of that blurring as they move into finance, threatening the fundamental separation between banking, money and payments on one side and our real economy on the other.”

While the agency did not identify companies it would target, officials estimated that about 17 digital payment services would be subject to enhanced oversight. But the tech industry fiercely rebuked the idea, saying the CFPB would saddle a much wider array of products and services with costly, unnecessary scrutiny.

In January, lobbyists for Block, which owns Cash App, and for other services including Venmo, told the government its proposal is “without justification” and conflates many types of apps and services. Some criticisms echoed the complaints that companies tend to levy at the CFPB before suing, though the leader of the group said it was too soon to comment on next steps.

“Knowing the atmosphere, I wouldn’t be surprised if someone doesn’t legally challenge this rule,” said Penny Lee, the president of the Financial Technology Association.

Many financial technology companies faulted the CFPB for rules that could ultimately cover many more companies than portrayed — as many as 180, according to TechNet’s Holshouser, who blasted it as a “power grab to regulate.” Lobbyists for some of the most popular cryptocurrencies , crypto wallet services and their investors, meanwhile, told the CFPB it had no authority over their industry.

Some of the largest tech companies, including Apple, Amazon and Google, also flagged the “significant costs” they would face under greater federal oversight. Speaking through one of their top Washington voices — the Computer and Communications Industry Association — they fretted that the CFPB could gain unprecedented visibility into their inner workings. The tech giants said that the rules would “allow the agency to supervise and examine other activities,” even outside of payment apps, potentially opening the door for other federal investigations and punishments.

Already, Apple, Amazon and Google are facing separate federal lawsuits that accuse them of violating antitrust laws, and all three companies have been sanctioned or faced complaints related to their handling of consumers’ data. In its own filing, Amazon told the CFPB it shouldn’t be covered by the new rules at all, arguing there are no “consumer risks” with tools like its Amazon Pay service, which helps users pay for goods on other merchants’ websites and doesn’t store customers’ cash. (Amazon founder and former chief executive Jeff Bezos owns The Washington Post.)

The lobbying campaign stands in stark contrast to the thousands of complaints filed in recent years by aggrieved consumers, who have consistently told the CFPB that tech companies mishandle their money. Some have sought federal help after they struggled to resolve unauthorized charges on Venmo, for example; others have asked the bureau for aid when they couldn’t get the attention of Cash App about fraud or other issues affecting their balances.

Some of the accusations have sparked CFPB probes: The agency opened an investigation in 2022 into Block over its “handling of customer complaints and disputes,” the company later told investors. In February, the parent company of Cash App said regulators are now “considering recommending that the CFPB take legal action.” A spokesperson declined to comment for this article.

“We’ve seen a lot of problems,” said Lauren Saunders, an associate director at the National Consumer Law Center, which has advocated for agency action. “We’ve seen [consumers facing] a lot of fraud in payments, a lot of trouble reaching customer service, a lot of trouble getting their accounts unfrozen.”

Consumer groups largely have heralded the CFPB’s approach, as have state officials, who encouraged the agency this year to adopt rules that might aid their own investigations. Matthew Platkin, the attorney general of New Jersey, said in an interview that he led a coalition of 19 states in asking the CFPB to intervene, after seeing “a significant increase in risk our residents face when using a whole host of apps, especially when it comes to mobile transactions.”

Even before the CFPB finalizes its rules, however, the agency can begin supervising the most high-risk companies under its founding law. Chopra first announced that the CFPB would revise this “dormant authority” in 2022, citing the “rapid growth of consumer offerings by nonbanks” and the need to ensure they are held to the “same standards” as their financial counterparts.

Much of this work tends to occur in secret, unless companies reveal they are under supervision or the CFPB places an uncooperative firm under a legal order. It has implemented such reviews for at least one fintech company, Affirm, which offers a “buy now, pay later” service that helps people obtain short-term loans for large purchases. The company disclosed the scrutiny last year in filings with investors.

“We have always viewed the CFPB as one of our regulators, which is why we have continuously engaged with them as well as all of our other regulatory stakeholders,” Affirm spokesman Matt Gross said in a statement.

Other technology companies have been more averse to greater federal oversight, choosing to take their complaints to Congress, where Republicans have long sided with industry in seeking to rein in — or eliminate entirely — the CFPB. The political dynamic was on display last month, as House GOP leaders convened a hearing to explore the agency’s “latest action to restrict competition in payments,” primarily calling tech lobbyists, lawyers and allies to testify.

Republicans thrashed the CFPB for pursuing what they called unnecessary regulation: Rep. French Hill (R-Ark.), the top lawmaker on the House’s leading fintech-focused committee, said the CFPB’s rules would give it “carte blanche to knock down the door of companies large and small with their fleet of examiners.”

“The CFPB is trying to cast as wide of a net as possible and become a technology regulator,” he said.

Many of the GOP attacks mimicked complaints levied by technology companies, which have donated to Hill and other panel lawmakers, according to federal records reviewed by OpenSecrets, a money-in-politics watchdog.

“We have to protect consumers and safeguard them,” TechNet’s Holshouser told lawmakers during the hearing, “but onerous regulations like this will have a chilling effect on innovation.”

President Biden's Racine County visit to highlight huge expansion of Microsoft data center

President Joe Biden's visit to Racine County on Wednesday will highlight a massive increase in the scale of Microsoft's data center development in Mount Pleasant.

Microsoft has begun construction of its first data center building in the village's Wisconsin Innovation Park and has pledged a minimum value of $1 billion on the first phase of the development .

That investment is "just the tip of the iceberg" for Microsoft's involvement in Racine County, a source said Friday.

Wednesday's announcement is expected to be an expansion that's multiple times larger and create far more jobs than what has to date been made public about Microsoft's data center plan.

No details about the focus or location of Biden's visit have been made public. But it will give Biden an opportunity to contrast the rapidly expanding Microsoft project with the failed Foxconn project at the same site that was touted by former President Donald Trump — Biden's Republican opponent in November — as the "eighth wonder of the world."

Key Microsoft executive Brad Smith lays groundwork

Biden is coming a week after Microsoft President Brad Smith spent several days in southeast Wisconsin meeting behind closed doors with business leaders, educators and other local officials.

Microsoft inked its first deal to develop a data center in Mount Pleasant in 2022, when it paid $50 million for 315 acres at 90th Street and County KR. Construction of the first data center building is underway and a second is planned on that site. One of the buildings will include an attached two-story office building, according to conceptual drawings submitted to the village.

Last month, the company received the village board's approval to begin grading the southern portion of a parcel to the west in preparation for additional construction. Microsoft acquired that land in December as part of a massive 1,030-acre purchase of industrial park land that had formerly been under option to Foxconn Technology Group.

More: How Microsoft's purchase of 1,000 acres in Mount Pleasant could lead to a decade of construction

At the time, AJ Steinbrecher, Microsoft's director of North America land acquisition for cloud infrastructure, told the village board the company's plan in Mount Pleasant was "to invest billions in the development of our cloud infrastructure."

Village officials were unavailable for comment Friday regarding any additional changes to Microsoft's plans.

A global push to meet AI demand

The Mount Pleasant data center project is part of a global push by Microsoft and its tech-industry competitors to build out a global network of data centers to meet the growing demand for cloud computing and AI technology and services. Microsoft alone operates more than 300 data centers around the globe .

The industrial park was developed as part of a multibillion package of incentives to lure Foxconn, the Taiwanese tech company, to Wisconsin. As the deal was negotiated, Foxconn said it intended to build a high-tech LCD screen manufacturing plant in the park that would create 13,000 jobs. That plan did not materialize; the company now employs about 1,000 people who make computer data servers and power converters for rooftop solar installations.

Foxconn's agreement to give up its options to allow the sale of the land north and east of its campus amounted to its first public acknowledgment that its Wisconsin plans had been dramatically scaled back.

Data centers typically employ only a couple hundred people, but village officials have focused on the economic impact of Microsoft's multibillion investment in terms of tax revenue and raising the profile of the region as a technology hub.

As part of the December land sale and developer agreement, Microsoft boosted the guaranteed minimum taxable value of its future buildings to $1.4 billion , the amount needed to generate enough tax revenue to pay off the debt the village accrued as it developed the business park.

Foxconn has a similar obligation and this year for the first time owed special payments equal to the $1.4 billion value even though the value of its property is only about $500 million.

Combined, those valuations would allow the village to retire the tax incremental financing district before its scheduled end in 2047.

Microsoft last fall also signed a partnership with Gateway Technical College to jointly develop a  Microsoft Datacenter Academy , a training and certification program for cloud computing and information technology careers. The agreement follows several other Microsoft-funded workforce and education initiatives including the Techspark, STEM program it started in northeast Wisconsin in 2017 and a  $1.25 million  gift in 2019 to UW-Milwaukee's  Connected Systems Institute , which brings engineering and business students together to explore new uses for smart technology in manufacturing industries.

Microsoft CEO Satya Nadella , a UWM alumnus, and his wife, Anu Nadella, gave $2 million to UWM to establish the Fund for Diversity in Tech Education, which supports pre-college tech-education programming for K-12 students, scholarships, and mentoring and tutoring for UWM students.