free business plan for hair salon

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How to Write Hair Salon Business Plan

Passionate about hair styling and cutting?

If yes, you might have thought of starting your own hair salon business.

But it takes more than just an artistic talent to give cuts that suit different hair types and styles. It also requires a solid business plan in place to make it thrive, as there are 952,909 hair salons in the US.

Need help getting your plan? Not to worry; we’ll help.

This hair salon business plan will help you get started and guide you every step of the way, from crafting your business idea to evaluating your salon’s financial success.

Ready to begin? Let’s dive right in!

Why you need a business plan for your hair salon

Hair salon business plan is a professional, living document that outlines your business ideas, goals, and strategies to achieve them.

Whether you’re starting a new salon or aiming to expand an existing one, you’ll need a business plan. It serves as a strategic roadmap for your entrepreneurial journey.

Here are several key reasons why having a hair salon business plan is essential:

Clarifies your vision & mission

Once you’ve decided to start or grow your hair salon, writing a business plan helps you think about all the details of your business. It outlines your business concept, vision, mission, and its core values. Also, it enables you and your team to understand your business’s purpose and ensures everyone is aligned.

Attracts investors to raise funding

Investors often request to see your business plan before investing in your business. At that time, a good business plan helps you demonstrate your business strategies, realistic financial forecasts, and potential for success. Also, it shows your idea is viable and convinces them to raise funding.

Helps reach your business goals

A well-thought-out business plan allows you to consider your short-term goals and long-term objectives. It also summarizes the strategies & steps to reach them, as well as how long it will take to achieve those goals. Further, with specific benchmarks and milestones, you can measure progress and keep track of your goals.

Determines your financial needs

A business plan helps you estimate the funding required for your salon. It includes detailed financial projections and clarifies how much money you’ll need to raise and how you’ll use those funds in different areas. This means you can ask for realistic funding needs to grow your business.

Reduces potential risks

While preparing a business plan, you can identify the potential risks and challenges that your salon might face. By knowing these threats earlier, you can develop effective strategies and contingency plans to mitigate them. This ensures your business is safe and improves your chances for success.

Now that you know the importance of having a business plan, let’s explore how to create a successful business plan for your salon.

How to write the perfect hair salon business plan in 8 steps

here is the simple step by step guide on how to write hair salon business plan.

1. Executive Summary

An executive summary is the first and foremost section of a business plan that provides a high-level overview of your hair salon business.

In fact, it might be the only section that potential investors or stakeholders will read and get a better idea of your business, including its concept, core values, objectives, and growth plans.

If your plan summary isn’t interesting or compelling enough, they won’t read it any further. So, ensure you keep this section simple, crisp, yet effective.

While writing an executive summary , consider including the following key elements:

• A quick overview of your salon
• Mission-vision statement

Target market

• Unique product or service offerings
• Marketing strategies
• Financial highlights

Though it is the first section of your salon plan, it’s typically written at the end once all the other sections are drafted. This is so because it summarizes all the most important aspects of your business.

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2. Business description

As you will provide a quick business overview in the executive summary, this section will expand on it and give detailed information about your salon.

So, here, explain your salon concept in detail and give readers a better understanding of your business, including what your hair salon business is all about.

For instance, you may ask yourself a few questions to plan this section:

• Where it’s located & why did you select that place?
• What’s the legal structure (e.g., sole proprietorship, LLC, corporation)?
• When and why did you start the hair salon business?
• Who are the owners or partners?
• What type of hair salon do you operate?
• What business milestones have you achieved till now (if any)?

In addition to that, you may highlight your salon’s short-term goals and long-term objectives that every potential investor or lender needs to know.

3. Market analysis

The market analysis section presents your external business environment. Generally, it involves in-depth research of the specific industry or sector in which your business intends to operate.

This means you’ll need to conduct comprehensive market research and analytical work to start a successful salon venture.

It also helps you get valuable insights into the salon industry, market size & growth potential, target customers, market demand, competitors, and opportunities.

Here are a few essential components that you may include in your market analysis:

Here, you may provide details of the target market you serve or expect to serve. This will help you identify your target customers and create a buyer’s persona, along with the psychographic and demographic details.

Competitive analysis

It’s a very important aspect of market research that helps you identify and analyze all other salon businesses nearby. It will cover direct and indirect competitors, including their strengths & weaknesses, and explain your competitive advantages .

Market trends

As a salon owner, you know that the hair salon industry is dynamic and continuously growing. So, you’ll have to explore the current and emerging trends (technological advancements, adoption of sustainable products, etc.) in the indus try and explain how your business will cope with them.

4. Organization and management

The organization and management section introduces the key personnel responsible for running the salon, including the salon owner, managers, hair stylists, and other staff members.

You may start by describing their roles and responsibilities, educational qualifications, industry experience, and expertise that help you grow your salon.

Then, consider discussing the employee benefits, compensation plans, and business operations, as well as outline the organizational structure, including reporting lines and how decisions will be made.

Furthermore, try to highlight advisory board members (if any) and explain how they can contribute to the salon’s overall success.

If your team is lacking and you’re planning to hire, mention whom you’ll hire and clarify how they will manage day-to-day operations, what type of work experience you’ll need, and how you’ll address training practices.

5. Services and products

As the name suggests, this section illustrates all the different types of services or products your salon will offer to its customers.

For instance, you may include a wide range of services, such as haircuts, styling, coloring, hair treatments, manicures, pedicures, etc. Also, describe each service in detail, along with the pricing plans, techniques used, and expected results.

For easy understanding, you may take the below as a reference to craft your offerings:

Platinum Hair’s Services

1. Haircuts: Classic Haircut

Price: [$40] per session

Description: A timeless haircut tailored to your preferences, ensuring a polished and stylish look.

Specifications: 

• Suitable for: All hair types
• Duration: 45 minutes

2. Coloring Services: Highlights

Price: [$110] per session

Description: Partial or full highlights, to add dimension and brightness to your hair, enhancing its natural beauty.

Specifications:

• Duration: 150 minutes
• Styles Available: Partial, Full, Balayage

If you’re running a hair salon that offers a great selection of products, like, hair care products, skincare items, or beauty accessories), mention them as well.

This will help investors better understand how you plan to satisfy all your customer’s needs & preferences and what value your salon brings to the market.

6. Marketing and sales strategy

Your marketing and sales strategy decides how you plan to draw new customers and retain existing ones for your hair salon.

A well-written sales and marketing plan can help you keep track of the marketing budget and maximize ROI while developing online and offline marketing or external promotional campaigns.

Consider including the below information in this section:

Unique Selling Proposition (USPs)

You may define your unique selling points to distinguish your salon business. For example, consider presenting holistic hair care services, sustainable & environmentally friendly products, and highly skilled stylists.

Online advertising

Using online channels such as social media platforms, email marketing, and professional branding can help you target certain audiences and build trust among them. You may also create visual ads and content to showcase all your offerings.

Partnerships or collaborations

You may partner with local businesses to expand your brand’s visibility and reach a wider audience. This will draw new customers and increase your growth opportunities.

Workshops and events

You may organize workshops or events at your salon and invite the local community to explore your space. Ask them to engage in live demonstrations of hairstyles and treatments. Also, don’t forget to collect their feedback and preferences.

Discounts or rewards

Giving special discounts helps you attract new clients and retain existing ones. So, try to offer discounts to the new consumers or introduce a loyalty program to reward regular clients.

7. Financial projections

A financial plan is the most crucial aspect of the hair salon business plan. It offers a comprehensive overview of your financial projections for the first 3-5 years.

However, the startup financial plan includes several critical statements and reports, such as income statements, cash flow statements, and balance sheets.

For your hair salon financial plan, consider providing detailed financial projections, including sales forecasts, revenue projections , initial startup costs, funding requirements, break-even analysis, or even sensitivity analyses for different scenarios.

This will help you demonstrate the long-term growth and profitability of your salon and allow potential investors or financial backers to make informed decisions.

8. Appendix

In the appendix, you may attach any supporting documents that might complement your business plan.

It includes market research data and surveys, licenses & permits, equipment leases, salon layouts, resumes of executive members, and many more.

In short, you can place additional information or attachments that don’t fit into specific sections, but readers might use them for reference.

Download our free hair salon business plan template

So, prepared to draft a hair salon business plan but need more assistance? Well, here you go; download our hair salon business plan template pdf now and get started.

This expertly crafted template has been designed with hair salon businesses in mind. With step-by-step guidance and examples, this template assists you in developing your own plan.

Import data into your editor and start business plan writing.

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

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

Now that you have a detailed hair salon business plan outline, it’s much easier to kickstart your plan writing process.

However, preparing a comprehensive business plan from scratch can be an intimidating and daunting task. But not to worry; Upmetrics could be a great companion here!

It’s a modern business plan software that enables new entrepreneurs and small business owners to create investment-ready plans quickly and efficiently.

From easy-to-follow guides and 400+ business plan examples to financial forecasting software, Upmetrics offers valuable resources to streamline the entire business planning process.

So, wait no longer; start preparing your plan!

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Frequently Asked Questions

What financial projections are most important for a new salon.

The following are the most important financial projections for a new salon:

• Sales and revenue forecasts
• Profit and loss statement
• Cash flow projections
• Balance sheet
• Initial funding needs
• Break-even analysis
• Loan repayment plan

How often should a hair salon business plan be updated?

It’s necessary to review and update your hair salon business plan regularly, at least once a year, or more often whenever there are significant changes in the business environment or market.

What are the essential elements of a salon business plan?

While writing a comprehensive business plan for your salon, consider including the following essential elements:

• Executive summary
• Business overview
• Market analysis
• Products and service offerings
• Marketing and sales strategy
• Management team
• Operations plan
• Financial projections

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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Hair salon business plan template + PDF

This article presents a model business plan for a hair salon, providing a comprehensive structure to assist you in setting up and running your salon. It is important to note that the names and figures used in this template are fictional, created for demonstration purposes. However, they can be tailored to fit the unique requirements and circumstances of your own hair salon business.

Additionally, for ease of use and customization, a Hair Salon Business Plan PDF is available for download. This article serves as an invaluable tool for entrepreneurs who are keen on developing a robust and practical strategy for launching or growing their hair salon, providing a clear roadmap and comprehensive insights into the industry.

How this hair salon business plan sample was created

Obtain your tailor-made hair salon business plan easily by clicking on 'Get your business plan' . This simple process involves answering a series of questions about your salon, giving key insights into your business. Our sophisticated AI will then craft a detailed business plan, customized to your specific objectives. It is a quick procedure, taking only 5-10 minutes, and you'll have a well-structured plan at your fingertips. This system's adaptability allows you to modify the plan to suit your unique vision. Once you're satisfied, you can save the plan directly to your computer, providing a clear and accessible path to success for your hair salon.

Hair salon business plan sample

Executive summary, business description, market research and analysis, swot analysis.

• Organizational Structure and Management Team

Products or Services

Marketing and sales strategy, operations plan, financial projections, risk analysis.

Curl Me Crazy is strategically positioned within the thriving hair salon industry. Our mission is to create the latest trendy and unique hairstyles that will appeal to young adults and professionals who are our target market.

As an up-and-coming small business with ambitions of growth over the next 3-5 years, we start with the goal of breaking even in Year 1 as we build a solid client base and offset initial investment costs. In Years 2-3, we project a steady revenue growth of 15-20% per annum, and by Years 4-5, with an established clientele and expansion plans rolling out, we foresee profit increases of 25-30%. Our long-term goal is to open a second location and further boost our profitability margins.

Despite potential risks such as market competition, economic downturns, customer retention, supply chain issues, staff turnover, and health and safety concerns, Curl Me Crazy has delineated mitigation strategies and contingency plans for each. These include differentiating with unique services and styles, offering diverse and affordable options, focusing on exceptional customer satisfaction, building trade relationships with multiple suppliers, and creating a positive work environment for team members.

Our operations plan targets a trendy, accessible location in a busy urban area. Operating six days a week, we intend to offer extended working hours on weekends. Our team, constituting a Manager, Assistant Manager, multiple Hair Stylists, and a Receptionist, will operate on a rotating shift basis to maximize productivity.

The Curl Me Crazy team, led by Alex Taylor, the owner and Manager, boasts a wealth of experience in both hairstyling and business management. Supported by Assistant Manager Jamie Lee, renowned for her customer relations expertise, and Lead Stylist Chris Morgan, a highly-acclaimed creative genius, the team is poised to deliver exceptional service to our clients.

We offer a wide range of services encompassing custom haircuts, coloring, styling, and hair care products tailored to the latest trends, client preferences, and the current vogue for personalized hair solutions.

Our sales and marketing strategy hinges on maintaining a dynamic social media presence, as well as forging partnerships with local businesses and influencers for cross-promotion. Coupled with offline efforts like local advertising, promotional offers, and the implementation of an easy-to-use online booking system, we aim to capture a dominant market share.

We acknowledge the presence of key competitors like "Stylish Strands Studio" , "Elegant Locks Salon" , and "Modern Mane Hair Boutique" . While these salons offer quality services and boast trendy clienteles, we are confident that our differentiated services, strong operational strategies, and expertise will set us apart.

Curl Me Crazy, envisaged as a leading trendy salon, is ready to make waves in the competitive hair industry. With our strategic planning and market-focused approach, we are betting not just on surviving, but thriving in the market.

Curl Me Crazy, located in the bustling downtown district of New York City, stands as a thriving venture in the beauty and personal care industry. With an emphasis on creative and trend-setting hairstyles, our business aims to become a trailblazer for young adults and professionals seeking unique, standout looks.

The salon was opened in 2020 by its visionary, Alex Taylor. Alex, having nearly a decade of experience in hairstyling and a fervor for the beauty industry, identified a gap in the market for a hair salon catering specifically to more adventurous, fashion-forward clients. His background in business management has complemented and informed the foundations of Curl Me Crazy, steering it towards its current path of success.

Our mission statement is to "inspire individuality and confidence through transformative hairstyling and exceptional service" . We believe that the sphere of hairstyle is not just about cutting and styling hair but serving as a medium for clients to express their personality and style. At Curl Me Crazy, we are committed to providing that opportunity, where each client's individual style and expression is given paramount importance.

The legal structure of Curl Me Crazy is a Sole-proprietorship, with Alex Taylor being the sole owner and operator. This structure not only equates to more straightforward business operations, but it facilitates quick decision-making and a closer relationship with our employees and clients.

Looking at the long-term potential of Curl Me Crazy, we envision ourselves to not be confined to a single salon. The objective is to become a widely recognized and revered brand in the hair salon industry. With the enriched customer experience we provide and our distinct creative edge, we plan to expand our operations to multiple locations across the nation, fostering a network of satisfied and loyal clients.

Financially, we anticipate seeing substantial growth. As we strategize to expand our client base and motivate employee performance, we expect the business to break even in its first year. Ensuing steady growth over the next 2-3 years promises a positive profit margin with an expected annual revenue increase of 15-20%. Further, by the end of the 5th year, with a more established clientele and expansion course laid out, we look forward to seeing a 25-30% growth in our profits. Thus, the longevity of Curl Me Crazy, despite the overwhelmingly competitive market, seems farsighted and plausible.

The beauty and personal care industry is a challenging and ever-evolving landscape. However, the potential it holds for businesses that are eager to innovate and adapt is astronomical. Our commitment to quality service, paired with our relentless pursuit of the trends and demands of the market, fuels our belief that Curl Me Crazy holds the promise to make a mark on this thriving industry.

Curl Me Crazy is entering the burgeoning hair salon industry, set to make waves with its unique, trendy, and creative hairstyles that target young adults and professionals. The industry is currently valued at $47 billion and is expected to grow at a compound annual growth rate (CAGR) of 1.2% over the next five years.

I. Industry Description

The hair salon industry evolves continually with fashion and pop culture trends, necessitating businesses to stay abreast of the latest styles and techniques. Technological advancements have also influenced businesses, with many establishing digital platforms to expand their reach, streamline operations, and anticipate customer preferences, reflecting the industry's adaptiveness.

II. Target Market

Our target demographic comprise age groups of 18-35, primarily reach college students, young professionals, and trend conscious individuals. As per the census data, this demographic attributes to a population size of approximately 1 million individuals in the city, suggesting a massive potential customer base for our business.

III. Market Needs and Demands

Today's customers seek more than a haircut; they desire experiences and personalized services that cater to their unique style preferences and hair health needs. Additionally, they appreciate convenience in service, evidenced by the growing preference for online booking systems, hinting at the need for innovative service delivery modules.

IV. Market Trends and Patterns

Salons embracing sustainable practices are increasingly favored, representing a shift towards environmentally-friendly products and practices. Also evident is an increasing interest in natural and organic hair care products, suggesting demand patterning around health-conscious products.

V. Competitor Analysis

Key players include "Stylish Strands Studio" , "Elegant Locks Salon" , and "Modern Mane Hair Boutique" . These salons have widespread recognition and a loyal customer base, owed to their service quality and trend-driven styles. However, their offerings have slight premium pricing and lack the personalization we offer.

VI. Potential Barriers to Entry

High setup costs, intensive competition, and the necessity for skilled professionals are significant barriers to entry. However, by leveraging competitive pricing, unique service delivery, and exceptional customer service, we aim to differentiate ourselves in the competitive landscape.

VII. Financial projections

Given our unique value proposition and the robust market potential, we expect to break even in our first year. Over the following two years, we foresee a revenue growth of 15-20% per annum. By our fifth year, leveraging an established clientele, we anticipate profits to increase by 25-30%.

VIII. Contingency Plan

In the event of unforeseen challenges, such as economic downturns or market competition, we plan to diversify services, implement affordable options, and regularly analyze market trends to stay competitive.

In conclusion, with effective segmentation, a differentiated offering, and a strong understanding of market patterns, Curl Me Crazy is poised for success in the bustling hair salon industry.

Organizational Structure and Management

As a small business aspiring to make a big impact, Curl Me Crazy is organized in a streamlined hierarchy that encourages both individual accountability and collaborative teamwork. At the top is Alex Taylor, the owner and manager, whose vision and tenacity guide all aspects of the business. With a decade of experience in hairstyling and a certification in business management, Alex is instrumental in navigating the industry trends, financial management, customer service, and the overall running of the salon. Supporting Alex is Assistant Manager, Jamie Lee. With five years of salon experience, Jamie's role involves overseeing day-to-day operations, scheduling, and client relationship management. The salon also has a lead stylist, Chris Morgan, who brings creative flair with his distinguished hair designs and eight years of industry experience.

Curl Me Crazy currently operates with a team of ten individuals, including the management. The staffing needs are slated to grow as the business expands. We envision hiring three more full-time stylists, a full-time receptionist, and two part-time assistants by the end of year two. All future hires will be local to minimize commute times and to support the local economy.

The company operates with a robust human resources policy that encompasses competitive compensation, clear protocols for performance reviews, open communications, and opportunities for career development. We strive to create a positive work environment that values mutual respect, diversity, and an enduring commitment to our clients' satisfaction. Our practices abide by all employment laws and regulations, ensuring an equitable work environment.

At present, Curl Me Crazy does not engage external advisors or consultants. However, we continue to reassess this as we grow. We consider the integration of an Advisory Board consisting of experienced individuals from different industry backgrounds for strategic guidance, is a long-term possibility.

In conclusion, Curl Me Crazy leverages a focused organizational structure that's calibrated for efficiency, success, and growth. Backed by a dedicated team, clear HR policies, and a commitment to hiring local talent, we are confident to meet the set business targets and emerge as a popular name in the salon industry.

Curl Me Crazy is a forward-thinking hair salon business strategically situated in the heart of New York. Our services primarily include customized haircuts, bespoke coloring services, advanced hairstyling as per the latest trends, and a variety of hair care products. We specialize in delivering personal attention to each client and working with them to create a unique hairstyle that aligns with their personal style and needs.

Our competitive edge in the market stems from the exceptional array of innovative services we offer, coupled with our high-level skills and meaningful client-stylist relationships. Unlike many of our competitors, every client at Curl Me Crazy receives a detailed consultation before any services are performed. This consultation, during which stylists understand client's lifestyle, hair texture, faces structure, and personal style, helps us create customized, flattering looks that can be easily recreated by clients at home.

Curl Me Crazy is currently in its first year of operations but has shown promising growth thus far. Backed by a solid business plan and a feasible financial model, we aim to break even by the end of the first year and gradually increase our revenue by 15-20% per year over the next three years.

Regarding intellectual property, we have registered the salon’s brand name – "Curl Me Crazy" - as a trademark to protect it from unauthorized use. We also respect copyright laws and use only licensed or custom-created music in our salon.

The production process for our hair services can be divided into four main stages: consultation, recommendation, execution, and homecare advice. Each stage is meticulously carried out by our certified and experienced stylists who strive to exceed client expectations.

At Curl Me Crazy, we recognize the importance of using high-quality professional hair care products to deliver brilliant results. We source our products from reliable suppliers who offer eco-friendly and cruelty-free products. We have established relationships with three main suppliers - L'Oréal Professionnel , Redken, and Aveda - to ensure a consistent supply of the highest quality hair care products.

In conclusion, Curl Me Crazy is a dedicated hair salon business with a focus on building a reputation as the destination for personalized and creative hair care services. With our defined path for growth and commitment to service excellence, we are geared up to make a difference in the hair salon industry.

Marketing Strategy

Riding on the back of digital advertising, Curl Me Crazy will deploy a well-strategized digital marketing campaign majorly on Instagram and Facebook due to their wide user-base and marketplace feature. These platforms will be utilized for showcasing our work, including before and after transformations, tutorials, products, and reviews.

Sales Strategy

Our sales strategy is centered on relationship marketing. We will nurture strong relationships with our customers by understanding their preferences and delivering personalized service each time they visit our center.

To guide this process, we are investing in the deployment of a Customer Relationship Management (CRM) system for managing appointments, custodial of customer records and preferences, recall mechanism, and tracking client visit frequency.

Training would be provided for all staff members to comprehend our personalized approach towards sales and ensure uniformity across the team.

Pricing Strategy

Our pricing will be positioned at a medium-high level. We will aim to deliver a premium service experience, maintaining quality at all times to match our pricing. To ensure our services are accessible to varied customers, we will also introduce various bundles and packages, which will offer cost savings to the customers.

Distribution Channels

The primary distribution channel for our service delivery will be our salon. In addition to walk-in customers, we will offer an online appointment feature on our webpage and app. We will also explore partnerships with other beauty service apps, extending our reach.

Promotion and Advertising

Initial promotional activities will be concentrated on drawing customers to our salon. We will offer a 20% discount for first-time customers and a referral program that provides a 10% discount if an existing customer refers a new one. Advertising would be carried out through local newspapers, digital platforms, and billboard promotions.

Customer Service Policies

We operate on a 'Customer First' principle. Our front desk will be trained to address customer needs proactively and promptly. For any service-related complaints, we will offer a free corrective service or a service voucher as a remedy. We will also solicit customer feedback after each appointment to understand opportunities for improvement. Our aim is to drive customer satisfaction, retention, and word-of-mouth referrals.

Curl Me Crazy is poised to disrupt the hair salon industry by seamlessly blending high-quality, personalized services with an innovative operational workflow. Our primary objective is to offer trendy, creative hairstyles for young adults and professionals in a welcoming, relaxed, and efficiently run environment.

• Operational Workflow: Our salon operates six days a week, following a dual shift system that ensures efficient and uninterrupted salon service. The staff rotation involves working in two shifts, with five stylists covering each shift. The first shift starts at 10:00 am and ends at 3:00 pm, and the second shift runs from 3:00 pm to 8:00 pm. Our peak hours, from 5:00 pm to 8:00 pm, will be catered to by all the stylists sharing the workload. This ensures continuous service without overwhelming the employees.
• Production or Service Delivery Processes: As a salon, our core service delivery process involves three steps: appointment, service, and payment. An online booking system integrated into our website and mobile app facilitates client appointments, ensuring that service timing preferences are met accurately and avoiding unnecessary waiting times for clients. Outstanding customer service is our driving force, guaranteed through highly experienced employees consistently delivering trendy and unique hairstyles.
• Quality Control Measures: We prioritize the highest standards of customer satisfaction combined with stringent quality control measures. We conduct regular training workshops where our stylists are updated on the latest trends and techniques. All our employees have met rigorous criteria for their roles, ensuring quality, creativity, and precision in the services delivered.
• Inventory Management: Our salon performs regular inventory checks, ensuring that we never run out of essential products. We also employ a professional inventory management system that triggers an alert when any product reaches its reorder level. This keeps our salon adequately stocked at all times.
• Supply Chain Management: We source hair care products from multiple reliable suppliers to prevent any potential disruption in our supply chain. In the event of delivery delays from one supplier, we always have an alternative to fall back on.
• Facilities and Equipment Needs: Ensuring our salon's neat and welcoming atmosphere demands functional facilities and up-to-date equipment. These include but aren't limited to high-quality salon chairs, professional-grade hair dryers, washing stations, state-of-the-art styling equipments, and a comfortable waiting area for clients. Regular maintenance and timely upgrades are planned to ensure the premises remain at par with current standards.

In conclusion, Curl Me Crazy's solid operations plan is designed to facilitate smooth daily operations and exceptional customer satisfaction, spelling out sure success for the salon in the challenging hair industry.

At Curl Me Crazy, financial integrity is as important as the creative hairstyles we conjure. This section will outline our financial projections, including sales forecast, profit and loss projection, cash flow forecast, balance sheet projection, break-even analysis, and key financial assumptions.

• Sales Forecast: In the first year, we aim for steady growth and recognize this as a crucial period for establishing a strong market presence. We project a monthly revenue of $10,000 that should grow to $20,000 by the end of year one. In the subsequent four years, this is expected to increase steadily, providing us a consistent annual growth rate of approximately 15%.
• Profit and Loss Projection: As investments in marketing, renting, salon setup, and labor costs (salaries and benefits) will form our initial expenditure, we predict a loss in the first quarter. However, we aim to bounce back quickly and expect to start turning a profit by the beginning of the second year with a projection of $50,000. This profit is anticipated to increase year-on-year, reaching $100,000 by the end of year five.
• Cash Flow Projection: We expect positive cash flow starting from the second year of operations. The first year may pose challenges due to an expected lull after the initial setup, but bearing minimum loan expenses and assuming a steady increase in customers, we should be able to maintain adequate cash flow.
• Balance Sheet Projection: Our balance sheet will reflect our growth, with assets increasing progressively with profits and the addition of more salon equipment. Liabilities will reduce over time as loans are paid off, leading to a steady increase in owner’s equity.
• Break-even Analysis: Our break-even point is projected to occur towards the end of the first year. This is based on initial estimations of fixed costs, variable costs, and the average customer spent per visit.
• Financial Assumptions and Considerations: Our financial projections are based on several assumptions, including stable economic conditions, steady client growth, continued relevance of our unique hairstyles, and market price stability for salon supplies. It’s important to note that financial projections can be influenced by a variety of external factors such as economic downturns and increased market competition. To mitigate these risks, we'll allocate funds for contingency and regularly assess our financial strategies to be in line with the market conditions.

In conclusion, with the projected revenue growth and controlled operational costs, Curl Me Crazy is all set to carve a space for itself in the competitive hair salon market while maintaining financial sustainability.

Curl Me Crazy anticipates several potential risks in its journey to being an accomplished hair salon business. However, we also have several mitigation strategies and contingency plans developed to navigate them successfully.

• Market Competition: The salon industry is highly competitive, with new businesses surfacing at many junctures. To rise above the competition, Curl Me Crazy will endeavor to provide unique services bolstered by a diverse range of skillsets our team possesses. Regular market analyses will help us stay tuned with the latest trends and techniques, enabling us in staying ahead of the competition curve.
• Economic Downturns: A sluggish economy could affect our business due to potential reductions in disposable incomes of customers potentially undermining demand. We will counter this by diversifying our services to include low to medium budget options, ensuring we retain clients across various spending capacities.
• Client Retention: Clients are spoilt for choice in our industry, thereby potentially obstructing client retention. We plan to invest in exceptional customer service and satisfaction as our key strategy, supplemented by loyalty programs that secure repeat business and promote referrals.
• Supply Chain Issues: Any disruption in the supply chain can hamper operations, which could be due to various reasons such as logistics issues, stock unavailability, or supplier discounts. As a precautionary measure, we'll establish relationships with multiple suppliers ensuring uninterrupted supply and always maintaining a buffer stock.
• Staff Turnover: Given the creative nature of stylists, one of the challenges we could face is employee retention. Keeping our staff challenged, acknowledged, and satisfied will be vital. We plan to foster a positive work environment with opportunities for personal and professional growth, and regular training to keep them updated with the latest industry trends.
• Health and Safety Concerns: Stringent health and safety regulations govern our industry given its direct relationship with clients' physical well-being. We will adhere to all local and national regulations, keeping staff trained on safety protocols to eliminate any chance of dereliction.

Understanding that risks are inevitable, Curl Me Crazy has in place a robust contingency plan covering all facets of our business. We will establish an emergency fund to cushion against unexpected fiscal challenges, stay connected with the up-to-the-minute industry trends and pivots to keep our business relevant, and most importantly, keep our business model flexible and adaptable based on evolving circumstances.

Our insurance forecast includes extensive coverages that include liability insurance, covering bodily injuries or property damage, workers' compensation insurance to cover medical treatment and disability in case of an employee injury, and property insurance to cover any damage to our business property, lastly, business interruption insurance to cover lost income and continue operating expenses in the event of a disaster causing business disruption.

In the legal area, we will engage with a law firm to guide on all legal compliances required for our salon business. Legal considerations include complying with health and safety laws, employment laws, licensing laws, and applicable tax laws.

In conclusion, while risks are an integral part and parcel of any business, Curl Me Crazy is committed to effectively managing and mitigating any potential pitfalls that may arise along our path. Our comprehensive risk analysis, best practice mitigation strategies, contingency plans, and an all-embracing insurance cover ensure that we stand resilient in the face of any challenge.

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How to write a business plan for your hair salon.

Starting a hair salon is a great way to be your own boss and make a living doing something you love.

It also offers potential for growth and diversification, allowing you to add additional services or products to your business.

But, before launching anything, make sure you have a business plan in place.

A business plan is an essential tool for any new project, and a hair salon is no exception. Writing a business plan will help to ensure that the project is well-thought-out and has a clear roadmap for success.

In short, a thorough business plan will help make sure your hair salon is profitable .

What should you consider when writing a business plan for a hair salon? What should be the main focus areas? What are the important financial ratios to consider? How can I speed up the process of developing an efficient business plan?

Please, find comprehensive answers to all these questions below.

Additionally, it's worth noting that you have the option to avoid starting your business plan from scratch.

Instead, you can download our business plan for a hair salon and adapt it to your project.

Creating a business plan for a hair salon

Will a business plan be beneficial for your hair salon.

Yes, you should create a business plan to ensure the success of your hair salon.

Developing a robust business plan will enable you to:

• learn about the hair salon market
• be aware of new consumertrends and apply them to your project
• identify factors for viability in a hair salon
• understand the latest hair trends, styling preferences, and customer expectations in salon services
• find a great unique value proposition for your hairstyling salon
• investigate competitor customer retention strategies
• find competitive advantages for your hair salon
• find a business model that delivers consistent positive financial outcomes
• establish and execute a solid and strategic action plan for long-term success
• evaluate potential risks specific to a hair salon, including customer satisfaction, employee training, and product safety

Our team has drafted a business plan for a hair salon that is designed to make it easier for you to achieve all the elements listed.

How to outline a business plan for a hair salon?

Your business plan will include a wide range of numbers and valuable information. It must be presented in a structured format, to make easy to read and digest.

When we built our business plan for a hair salon , we took care to arrange it appropriately.

There are 5 parts within the business plan.

1. Market Opportunity

The introductory section has been named "Market Opportunity".

Our team has gathered essential information and metrics about the hair salon, providing valuable insights for entrepreneurs in this industry.

The data here is always kept current; we update it biannually.

2. Project Presentation

The "Project" section provides an opportunity to describe your hair salon, specifying the range of hair services you offer (cut, color, styling), specialized treatments, talented stylists, haircare products, salon ambiance, and the unique value proposition that guarantees exceptional hairstyling and customer satisfaction.

Remember to introduce yourself at the end of this section.

Discuss your passion for hairstyling, your expertise in hair trends and techniques, and how you plan to create a personalized and transformative hair salon experience for clients. Highlight your range of services, your skilled stylists, and your dedication to providing individualized consultations and exceptional customer service that leaves clients feeling confident, stylish, and satisfied at your hair salon.

We prepared text in our business plan. Customize it to suit your idea.

3. Market Research

Moving on, there's the "Market Research" section.

In this section, you will find a market segmentation analysis for your hair salon.

It includes a study of other hair salons in the area that will be competing with you. Your salon's unique hair services and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

The "Strategy" section outlines a comprehensive 3-year action plan, detailing the initiatives and steps needed to transform your hair salon into a highly profitable endeavor.

Furthermore, this section encompasses a comprehensive marketing plan, a strategy to mitigate risks, and a completed Business Model Canvas.

5. Finances

In the end, the section titled "Finances" is where you can present the financial plan and breakdown for your project.

How to write the Executive Summary for a hair salon?

The Executive Summary gives a summarized glimpse into the business plan of your hair salon.

Keep it brief, not going over 2 pages. Highlight the essential points.

When you share your business plan with an investor, this is the part they will read at the beginning. It should grab their interest and make them want to read the rest of the plan.

In the Executive Summary of your hair salon, address the following queries: what services does your hair salon offer? who is your target audience? are there other hair salons in the area? what makes your salon unique? what funding do you need?

How to do the market analysis for a hair salon?

Analyzing the market for your hair salon allows you to gain insights into factors such as customer preferences for hairstyling and haircare services, competition from other salons, and emerging trends in hair fashion.

By conducting a comprehensive market study, a hair salon can identify customer preferences, offer a range of hair services, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased appointments, and a prominent position in the local hair care industry.

Here's what we've incorporated into the "Market Research" section of our business plan for a hair salon :

• fresh and updated data and statistics about the hair salon industry, including popular hairstyles, hair care trends, and customer preferences
• a list of potential market segments for a hair salon
• the competitor analysis
• the competitive advantages to target for a hair salon

The key points of the business plan for a hair salon

What's the business model of a hair salon, business model of a hair salon.

A hair salon's model revolves around providing various hair care services, including haircuts, styling, coloring, or treatments. Revenue is generated through service fees, potentially offering retail hair products or additional beauty services.

The business model focuses on employing skilled hair stylists, providing personalized consultations, using quality hair products, creating a welcoming and trendy salon environment, and building strong client relationships through exceptional service and hairstyling expertise.

Success depends on stylists' talent and creativity, effective marketing to target individuals seeking hair services, maintaining industry trends and techniques, fostering positive client reviews and referrals, and providing a satisfying and rejuvenating salon experience.

Business model ≠ Business plan

Be clear on the distinction between "business plan" and "business model."

A business model is a blueprint for how a company operates and makes money.

In a business plan, you use the Business Model Canvas as a visual aid to explain the inner workings of your business.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a hair salon .

How do you identify the market segments of a hair salon?

Market segmentation for your hair salon involves dividing your potential customers into different groups based on their haircare needs, preferences, and demographics.

These categories may include factors such as haircuts and styling, coloring and highlights, extensions, or customers seeking specific hair treatments (e.g., keratin treatments, scalp treatments).

By segmenting your market, you can offer a range of hair services and solutions that cater to each segment's specific requirements. For example, you might provide a variety of haircut and styling options for customers seeking trendy or classic looks, offer professional hair coloring and highlighting services for customers looking to enhance their hair color, specialize in hair extensions and volumizing treatments, or provide specialized treatments for customers with specific hair concerns such as damaged hair, dry scalp, or frizz control.

Market segmentation allows you to effectively target your marketing efforts, showcase your hairstyling expertise, and deliver personalized and satisfying hair services that meet the unique needs and preferences of each customer segment.

In the business plan for a hair salon , you will get a detailed market segmentation, helping you understand your target audiences and their needs.

How to conduct a competitor analysis for a hair salon?

Without surprise, you won't be the only hair salon in your city. There will be other establishments offering hair styling, cutting, and coloring services to customers.

Your business plan must incorporate a thorough examination of your competitors, including their characteristics, strengths, and weaknesses.

Pay attention to their weaknesses (such as inexperienced stylists, lack of trending hairstyles, or poor customer satisfaction).

Why is it crucial to notice these aspects? Because these weaknesses can impact the client experience at hair salons. By addressing these elements, you can provide a wide range of hair services and treatments, offer skilled and creative stylists, and create a welcoming and stylish salon environment, establishing your hair salon as a preferred choice for hair care and styling needs.

It's what we call competitive advantages—work on developing them for a distinct business identity.

Here are some examples of competitive advantages for a beauty salon: skilled and experienced stylists, wide range of beauty services, relaxing and luxurious ambiance.

How to draft a SWOT analysis for a beauty salon?

A SWOT analysis can help identify potential strengths, weaknesses, opportunities, and threats that may affect the success of a hair salon.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a hair salon

The strengths for a hair salon

The letter "S" in SWOT signifies Strengths, highlighting the project's internal advantages or positive features.

For a hair salon, potential strengths include excellent customer service, a wide range of services, experienced staff, and attractive pricing.

The weaknesses for a hair salon

The "W" stands for Weaknesses, referring to the areas or aspects of the project that need to be addressed.

For a hair salon, potential weaknesses could include lack of repeat customers, limited marketing budget, lack of online presence, and lack of staff training.

The opportunities for a hair salon

O represents Opportunities in SWOT, referring to the external factors or conditions that can create opportunities for the project's advancement.

In the case of a hair salon, potential opportunities may include offering online booking services, expanding into new markets, providing additional services such as cosmetics and nail care, and advertising on social media.

The threats for a hair salon

The "T" in SWOT stands for Threats, which are external factors that may pose risks or challenges to the project's success.

How to outline a marketing strategy for a beauty salon?

A marketing strategy is a vital element of a business plan as it details how a business will attract customers and generate business.

A hair salon can attract clients in need of professional and trendy hairstyling services by implementing a targeted marketing plan that highlights the salon's skilled stylists and personalized approach.

Clients won't choose your beauty salon without effective marketing; showcasing your range of services, talented stylists, and relaxing atmosphere is crucial.

Are you implementing effective marketing strategies for your hair salon? Consider offering first-time client discounts or referral programs, showcasing trendy hairstyles or transformations on social media, and partnering with local fashion influencers for endorsements.

Don't fret if you lack ideas for your project's marketing strategy.

How to build a solid financial plan for a beauty salon?

A successful business plan must include detailed financial information, such as income and expense projections, cash flow statements, and a break-even analysis.

As you outline your business plan, you should include revenue projections for your hair salon.

The inclusion of a relevant and credible revenue forecast in your business plan adds credibility and enhances appeal to banks or investors.

Our financial plan for a hair salon is straightforward and equipped with automated checks, enabling you to validate and adjust your assumptions easily. This way, we make sure you're building solid financial projections.

Without a doubt, you'll need to come up with a basic budget for starting your hair salon. Make certain to include all expenses without exception - you can find them all listed in our financial plan!

The break-even analysis is a crucial tool in your financial plan, providing insight into whether your hair salon will become a profitable company or not.

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Expert business plan and financial models

Hair Salon Business Plan Template & PDF Example

• September 4, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful hair salon. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your salon’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a hair salon business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the beauty industry, this guide, complete with a business plan example, lays the groundwork for turning your hair salon concept into reality. Let’s dive in!

Our hair salon business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the salon’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your hair salon’s business concept, market analysis , management, and financial strategy.
• Salon & Location : Describes the salon’s design, amenities, and why its location is appealing to potential clients.
• Treatments & Pricing : Lists the services provided by your hair salon, including treatments and pricing structure.
• Key Stats : Shares industry size , growth trends, and relevant statistics for the hair salon market.
• Key Trends : Highlights recent trends affecting the hair and beauty sector.
• Key Competitors : Analyzes main competitors nearby and how your salon differs from them.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management : Information on who manages the hair salon and their roles.
• Financial Plan : Projects the salon’s 5-year financial performance, including revenue, profits, and expected expenses.

Hair Salon Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your hair salon’s business plan, offering a concise overview of your salon and its services. It should detail your market positioning, the range of hair care and styling services you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your hair salon will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your salon’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the salon’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your salon’s financial plan.

Hair Salon Business Plan Executive Summary Example

Business Overview

A concise overview is pivotal, introducing essential details like the salon’s name, location, and a snapshot of its core services.

These details set the stage for your hair salon, framing its unique characteristics. A unique selling proposition (USP) distinguishes your salon. Whether it’s specialized expertise in hair coloring techniques, a focus on trendsetting styles, or exceptional client service, highlight this USP in your executive summary to showcase your salon’s distinctive value proposition.

Example: “GlamStrands Hair Studio,” strategically positioned in the heart of Trendy City Center, occupies a spacious 2,500 square feet area on Style Avenue. We specialize in a wide spectrum of hair services, including precision haircuts, coloring, styling, extensions, and bespoke event updos. Our USP lies in expertly curated trends and a focus on personalized consultations, ensuring tailor-made hair experiences for every client.

Market Overview

Understanding market dynamics and your position within them is crucial. This section should underscore the potential of the local haircare and styling market, supported by relevant data such as market value and growth rates. Discussing trends, such as the growing demand for innovative coloring techniques or customizable styling services, illuminates your salon’s positioning within the evolving landscape.

Additionally, it highlights the competitive landscape. Identify key competitors and elucidate how your salon stands out amidst the competition. Whether through specialized skills, cutting-edge styling equipment, or exceptional client satisfaction, emphasize how your salon differentiates itself.

Example: In the local haircare and styling market of Trendy City Center, valued at $4 million annually with an 8% growth rate, GlamStrands Hair Studio leads with an emphasis on bespoke styling and a comprehensive range of services. Amidst competition, our commitment to personalized client experiences positions us as the preferred choice for clients seeking expert haircare and trendsetting styles.

Management Team

Highlight the expertise and background of your management team, showcasing their capabilities in driving salon success.

This could include your salon director’s extensive experience in salon management or your marketing lead’s proficiency in brand promotion. Demonstrating the team’s competency builds credibility and assures potential investors and partners of your salon’s potential for success.

Example: At GlamStrands Hair Studio, Nathan Smith, with over a decade of expertise in haircare and salon management, leads operations. Supported by a team of skilled hairstylists and a marketing director well-versed in client relationship management, the salon maintains a focus on delivering superior client care and innovative styling experiences.

Financial Plan

Provide an overview of your financial goals and projections, offering insights into revenue targets, profit margins, and anticipated growth trajectories.

Example: GlamStrands Hair Studio aims for a projected revenue of $1.5 million annually by 2027, targeting a 17% EBITDA profit margin. Investment in cutting-edge hairstyling equipment and a strong focus on superior client care, complemented by innovative marketing strategies, drive anticipated growth and profitability within the local market.

For a Hair Salon, the Business Overview section can be concisely divided into 2 main slides:

Salon & Location

Briefly describe the salon’s physical environment, emphasizing its design, comfort, and the overall atmosphere that welcomes clients. Mention the salon’s location, highlighting its accessibility and the convenience it offers to clients, such as proximity to shopping centers or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Treatments & Pricing

Detail the range of hair treatments and services offered, from basic cuts and styling to specialized treatments like coloring, extensions, or keratin smoothing. Outline your pricing strategy , ensuring it reflects the quality of services provided and matches the market you’re targeting. Highlight any packages, membership deals, or loyalty programs that provide added value to your clients, encouraging repeat business and customer loyalty.

Industry Size & Growth

In the Market Overview of your hair salon business plan, start by examining the size of the hair care industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in personalized hair care services, organic and sustainable products, and innovative styling techniques. For example, highlight the demand for services that cater to specific hair types and concerns, alongside the rising popularity of eco-friendly salons.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your hair salon in the market and its key competitors; it’s also a fundamental component of your business plan. This analysis helps in identifying your salon’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying your competitors in the Hair Salon Industry

Begin by mapping out local hair salons, stylists, and beauty centers in your vicinity. Different types of competitors exist in the hair care industry, ranging from traditional salons to specialized boutiques and freelance stylists. Explore salons offering similar services, including haircutting, coloring, styling, and specialized treatments.

Utilize digital platforms such as Google Maps and business directories to gain a geographical perspective of competitor locations. Additionally, customer review platforms like Yelp or specialized salon booking apps can provide invaluable insights into competitors’  strengths and weaknesses  based on customer feedback.

Hair Salon Competitors’ Strategies

To conduct a thorough analysis, consider the following key aspects:

• Service Offerings:  Assess the range of services offered by competitors. Some salons may focus on specific services like keratin treatments, extensions, or eco-friendly hair care, catering to niche markets and customer preferences.
• Stylist Expertise:  Evaluate the expertise and specialization of hairstylists. A salon renowned for its experienced colorists might appeal to a different clientele compared to a salon with stylists known for avant-garde cuts and styles.
• Pricing Structure:  Compare pricing models with competitors. Analyze whether your salon’s pricing aligns with budget-friendly options, mid-range competitors, or premium salons offering luxury services.
• Marketing Strategies :  Investigate how competitors market their services. Some salons might leverage social media influencers or run targeted digital advertising, while others rely on referral programs or partnerships with local businesses for promotion.
• Client Experience:  Consider the overall customer experience. For instance, a salon might differentiate itself by offering personalized consultations, a luxurious ambiance, or additional complimentary services like scalp massages or beverage offerings.
• Technological Integration:  Observe if competitors utilize technology for convenience. Some salons might excel in online booking systems, virtual consultations, or implementing cutting-edge hair care technology.

What’s Your Salon’s Unique Value Proposition?

Reflect on what sets your salon apart. It could be specialized services like organic hair treatments, a focus on sustainable practices, or a signature line of hair care products exclusively available at your salon.

Identify gaps in the market through client feedback and industry trends. For instance, rising demand for inclusive services for diverse hair textures or the integration of wellness elements like meditation or aromatherapy into salon experiences could represent untapped opportunities.

Consider your salon’s location and its impact on services and ambiance. A salon situated in a bustling urban area might emphasize efficiency and modernity, while a salon in a suburban locale might prioritize a relaxed, family-friendly atmosphere.

First, conduct a SWOT analysis for the hair salon, highlighting Strengths (such as expert stylists and a wide array of services), Weaknesses (including high operational costs or strong competition), Opportunities (for example, an increasing trend in personal grooming and beauty care), and Threats (such as economic downturns that may decrease consumer spending on luxury services).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional discounts, engaging social media presence, and community involvement.

Marketing Channels

Choosing suitable marketing channels is crucial to engaging and attracting potential clients effectively.

Digital Marketing

In today’s digital era, a robust online presence is indispensable for salon success.

• Social Media Presence:  Utilize platforms such as Instagram, Facebook, and TikTok to showcase an array of stunning hairstyles created at your salon. 
• Email Marketing:  Develop an email marketing strategy to maintain regular communication with your clients. 
• Website and SEO:  Invest in a professional website that serves as a digital storefront for your salon. Ensure that it includes a gallery showcasing your salon’s portfolio, client testimonials, stylist profiles, a blog section featuring hairstyling tips and advice, and an easy-to-use appointment booking system. 

Local Advertising

• Print Media and Flyers:  Design eye-catching flyers and brochures that highlight your salon’s services, promotions, and contact information. Distribute these materials in high-traffic areas such as local cafes, gyms, shopping malls, and community centers.
• Community Engagement:  Establish a strong presence in your local community by participating in various events and initiatives. Sponsor or participate in local festivals, fairs, or charity events, offering hairstyling demonstrations, free consultations, or vouchers for discounted salon services. 
• Influencer Collaborations:  Partner with local influencers or beauty bloggers whose style aligns with your salon’s brand ethos. Invite them for a salon visit to experience your services firsthand and share their positive experiences with their followers on social media platforms.
• Cross-Promotions:  Forge strategic alliances with complementary businesses such as beauty product retailers, fashion boutiques, or makeup artists. 

Promotional Activities

Engage potential clients through compelling offers and loyalty programs.

• Seasonal Offers : Create seasonal promotions tailored to specific times of the year, such as ‘Holiday Hairstyle Makeover’ or ‘Summer Hair Color Refresh’. 
• Loyalty Rewards:  Launch a tiered loyalty program that rewards frequent visitors with exclusive perks, discounts, or special treatment. 
• Referral Incentives:  Encourage your satisfied clients to refer friends, family, or colleagues to your salon by offering them incentives. 

Sales Channels

Implementing effective sales strategies is vital for revenue growth and client satisfaction.

In-Salon Upselling

• Maximize Revenue:  Train your stylists to provide personalized recommendations for additional services or hair treatments to enhance each client’s salon experience. 
• Retail Products:  Display a curated selection of high-quality haircare products, styling tools, and accessories prominently within your salon. 
• Package Deals:  Offer bundled services or package deals to incentivize clients to try multiple services or treatments at a reduced rate. For instance, create packages like ‘Cut & Color Combo’ or ‘Bridal Hairstyling Package’ that combine various services into one attractive offer.

Online Booking and Sales

• Seamless Booking Experience:  Enhance convenience for your clients by providing an intuitive and user-friendly online booking system integrated into your salon’s website and social media platforms.
• E-commerce Integration:  Extend your salon’s offerings beyond the physical space by retailing haircare products, accessories, or gift cards through your website.
• Virtual Consultations:  Introduce virtual consultations where clients can receive personalized hairstyling advice, recommendations, or tips from their stylists via video calls. 

Membership and Loyalty Programs

Encourage repeat business and foster long-term relationships with your clients.

Membership Options

• Subscription-Based Plans : Design subscription-based membership programs that offer clients regular services at a discounted rate. For instance, offer a monthly membership including services like haircuts, styling, or treatments at a reduced price to encourage recurring visits.
• Exclusive Benefits:  Provide members with exclusive privileges such as priority booking, access to premium services, or special events. 
• Personalized Rewards:  Analyze client spending patterns and preferences to offer personalized rewards or incentives that align with their interests or previous purchases. 

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the hair salon’s opening, marketing efforts, client base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

The Management section focuses on the hair salon’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the salon towards its financial and operational goals.

For your hair salon business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your hair salon’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your hair salon business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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• February 27th, 2024
• Business Tips

How to Write a Hair Salon Business Plan

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

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

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

Let’s get started. 

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

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

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

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

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

Let’s go back to our road trip metaphor.  

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

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

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

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

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

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

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

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

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

RELATED ARTICLE:  

Owning a Hair Salon: Your Launch Guide  

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

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

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

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

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

Executive Summary  

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

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

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

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

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

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

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

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

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

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

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

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

Company Description  

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

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

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

For example: 

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

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

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

Market Analysis  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hair Salon Industry Trends for Growing Your Salon Business  

Marketing Strategy  

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

Some common salon marketing methods include: 

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

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

How do you improve a website’s SEO? 

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

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

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

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

How to Design and Roll Out a Beauty Salon Rewards Program  

Management and Organization  

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

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

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

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

Services and Pricing  

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

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

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

Financial Projections  

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

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

Answer these questions first: 

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

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

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

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

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

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

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

Learn How to Manage a Hair Salon Business with SalonBiz  

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Sample Salon Business Plan

Writing a business plan is a crucial step in starting a salon. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring salon owners, having access to a sample salon business plan can be especially helpful in providing direction and gaining insight into how to draft their own salon business plan.

Download our Ultimate Salon Business Plan Template

Having a thorough business plan in place is critical for any successful salon venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A beauty salon business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The salon business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your salon as Growthink’s Ultimate Salon Business Plan Template , but it can help you write a salon business plan of your own.

Salon Business Plan Example – ShearElegance Studio

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

ShearElegance Studio is a premier hair and beauty salon located in the vibrant city of Honolulu, HI. With a commitment to providing top-notch services in hair care, styling, and beauty treatments, we cater to a diverse clientele including local residents, tourists, and professionals in the area. Our salon is designed to offer a luxurious experience, combining the latest industry trends with traditional methods to meet the unique needs of each client. Situated in a prime location, ShearElegance Studio aims to become the go-to destination for anyone looking to enhance their natural beauty and enjoy a moment of pampering in a welcoming and stylish environment.

Our success at ShearElegance Studio is driven by our dedication to customer satisfaction, the expertise of our team, and our strategic location in Honolulu. We have established a strong foundation by securing a loyal customer base among local residents, while our tailored services for tourists and professionals help to ensure a steady flow of clients throughout the year. Our accomplishments to date include building a talented team of beauty professionals, creating a welcoming and luxurious salon atmosphere, and developing a comprehensive service menu that addresses the diverse needs of our clientele. Together, these factors position us for continued success and growth in the competitive beauty industry.

The beauty salon industry in Honolulu, HI, is characterized by intense competition and a dynamic customer base that includes both locals and tourists. Trends indicate a growing demand for specialized beauty services that cater to individual needs, including treatments that address the local climate’s impact on hair and skin. Moreover, there is an increasing preference for salons that offer a holistic beauty experience, combining traditional services with innovative techniques and products. The industry’s growth is further fueled by the rise of social media, which influences beauty trends and customer expectations. ShearElegance Studio is well-positioned to capitalize on these trends by offering a diverse range of services in a luxurious setting, making us a strong competitor in the local market.

ShearElegance Studio targets a diverse clientele in Honolulu, focusing on local residents, tourists, and professionals. Local residents provide a consistent customer base year-round, looking for quality hair care and beauty treatments that reflect the local culture and climate. Tourists offer seasonal opportunities for increased business, seeking luxury pampering or quick beauty services during their stay. Professionals in the vicinity value convenience and efficiency, demanding high-quality service that fits their busy schedules. Our approach is to cater to these varying needs through flexible scheduling, express services, and membership packages, ensuring a personalized and satisfying experience for every client.

Top competitors in our market include established salons known for their quality services and strong customer loyalty. However, ShearElegance Studio sets itself apart through our exceptional customer service, innovative use of technology for booking and service customization, and our commitment to staying abreast of industry trends. Our competitive advantages lie in our ability to offer a unique and personalized beauty experience, leveraging our team’s expertise and the latest trends to meet and exceed customer expectations.

ShearElegance Studio’s marketing strategy is centered on a mix of online and community-based efforts to engage our target audience. We will utilize social media platforms to showcase our services, share styling tips, and promote special offers, leveraging the visual nature of our industry to attract attention. Our SEO-optimized website and email marketing campaigns will further support our online presence, offering easy booking and exclusive deals. Community engagement through local events and partnerships will enhance our visibility and draw in customers looking for a salon that values local connections. Introductory discounts, referral programs, and a loyalty scheme will encourage trial and foster a community of loyal clients. Our commitment to exceptional service will serve as a natural promotional tool, ensuring customer satisfaction and word-of-mouth referrals.

At ShearElegance Studio, our operational focus is on delivering unparalleled beauty services while ensuring smooth day-to-day operations. Key processes include rigorous staff training, inventory management, and the implementation of a streamlined booking system. Our milestones include the launch of our salon with a full suite of services, achieving a set number of bookings within the first six months, and the establishment of partnerships with local businesses within the first year. These steps are crucial for laying the groundwork for our salon’s success and setting the stage for future expansion.

Our management team comprises seasoned professionals with extensive experience in the beauty industry and business management. From our salon manager to our lead stylists and beauty technicians, each team member brings a wealth of knowledge and a passion for excellence to ShearElegance Studio. Their expertise not only ensures the highest quality of service but also positions our salon for strategic growth and innovation in the competitive Honolulu market.

Welcome to ShearElegance Studio, a fresh and vibrant salon located in the heart of Honolulu, HI. As a local salon, we are proud to serve our community by offering unparalleled beauty services. We noticed a gap in the market for high-quality, local salons, and we are here to fill that void with our exceptional services and unique approach to beauty and wellness.

At ShearElegance Studio, our offerings are designed to cater to a wide array of beauty needs. Our services include professional haircuts and styling, hair coloring, manicures and pedicures, skincare treatments, as well as waxing and hair removal. Each service is tailored to meet the individual preferences and requirements of our clients, ensuring a personalized and satisfying experience every time.

Our studio is strategically located in Honolulu, HI, making it accessible to customers from all over the city. This prime location allows us to serve a diverse clientele and become a go-to destination for those seeking top-notch beauty services in the area.

We are confident in our ability to thrive and make a significant impact in the local beauty industry for several reasons. Firstly, our founder brings invaluable experience from successfully running a previous salon, ensuring that ShearElegance Studio is built on a foundation of proven success strategies. Furthermore, our extensive range of services sets us apart from the competition, offering our clients a one-stop solution for all their beauty needs.

Since our founding on January 6, 2024, as a Sole Proprietorship, we have made considerable progress in establishing ShearElegance Studio as a premier salon in Honolulu. Our accomplishments include the creation of our unique logo, the development of our distinctive company name, and securing an ideal location for our salon. These milestones are just the beginning of our journey to becoming a leading beauty destination in Honolulu.

The Salon industry in the United States is currently estimated to be worth over $46 billion, with an expected annual growth rate of 3.2%. This growth can be attributed to an increasing demand for beauty services, as well as a rise in disposable income among consumers. As more people prioritize self-care and grooming, the Salon industry continues to expand and thrive.

One of the key trends in the Salon industry is the growing popularity of personalized and specialized services. Customers are increasingly seeking unique and customized experiences when it comes to their beauty treatments. This trend bodes well for ShearElegance Studio, as it positions itself as a new Salon that offers tailored services to meet the individual needs and preferences of its customers. By staying ahead of industry trends and providing exceptional customer service, ShearElegance Studio is well-positioned to capture a share of the growing market.

Another trend in the Salon industry is the rising demand for eco-friendly and sustainable beauty products. Consumers are becoming more conscious of the environmental impact of their beauty choices and are seeking out Salons that prioritize sustainability. ShearElegance Studio can capitalize on this trend by sourcing environmentally-friendly products and incorporating eco-friendly practices into its operations. By aligning with the values of environmentally-conscious consumers, ShearElegance Studio can attract a loyal customer base and differentiate itself in the competitive Salon industry.

Below is a description of our target customers and their core needs.

Target Customers

At the core of ShearElegance Studio’s target market will be local residents of Honolulu. This demographic is crucial as they provide a steady base of clientele year-round. The salon will tailor its services to meet the diverse needs of this group, ranging from traditional hair care to more specialized treatments that reflect the local culture and climate.

ShearElegance Studio will also focus on tourists visiting Honolulu. This segment presents a unique opportunity for seasonal boosts in clientele. The salon will offer services that are appealing to vacationers looking for luxury pampering experiences or those in need of quick beauty services before heading to the beach or a special event. This strategy is expected to complement the regular patronage from local residents by filling in the seasonal demand gaps.

Additionally, ShearElegance Studio will target professionals working in the vicinity. This segment values convenience and efficiency, alongside high-quality service. By offering flexible scheduling, express services, and membership packages, the salon will cater to the needs of busy professionals looking for a reliable beauty solution within their hectic schedules.

Customer Needs

ShearElegance Studio fulfills the essential need for high-quality personal grooming services, including haircut, styling, manicure, pedicure, and skincare treatments. Residents seeking these services can expect to receive unparalleled attention to detail and craftsmanship. The salon prioritizes the use of premium products and cutting-edge techniques to ensure every client feels pampered and rejuvenated.

In addition to the core services, ShearElegance Studio recognizes the importance of a holistic beauty experience. Customers can enjoy a serene and luxurious atmosphere that promotes relaxation and well-being. This environment, coupled with exceptional customer service, ensures that every visit meets the highest standards of satisfaction and indulgence.

Understanding the diverse needs of its clientele, ShearElegance Studio offers customizable services that cater to individual preferences and styles. Whether clients are looking for a bold new haircut, meticulous nail art, or soothing skincare treatments, they can find tailored solutions that reflect their personal taste and lifestyle. The salon’s commitment to versatility and creativity makes it a trusted destination for all beauty and grooming needs.

ShearElegance Studio’s competitors include the following companies:

Salon Blanc offers a wide range of hair services focusing on high-end treatments such as balayage, hair coloring, and precision cuts. Their price points are in the premium segment, reflecting the upscale services they provide. Salon Blanc generates significant revenue by targeting affluent clients who prioritize exclusive hair care experiences. The salon is located in a fashionable district of Honolulu, attracting a clientele that values trend-setting hairstyles and personalized services. Salon Blanc serves customers primarily in the Honolulu area but also attracts visitors looking for luxury hair care while on vacation. The key strength of Salon Blanc lies in its reputation for innovative styling and use of premium products. However, its weakness could be its premium pricing, which may not appeal to budget-conscious consumers.

Salon 808 offers a comprehensive range of hair and beauty services, including haircuts, coloring, and styling, as well as makeup and bridal services. Their price points are designed to cater to a broad spectrum of customers, from budget to mid-range, making them accessible to a wider audience. Salon 808 has a strong revenue stream, supported by its diverse service offerings and competitive pricing. With multiple locations across Honolulu, Salon 808 serves a diverse customer base, from locals to tourists. The salon’s key strengths include its versatility in service offerings and its accessibility in terms of location and price. However, its broad focus might dilute its brand identity, potentially making it less attractive to clients seeking highly specialized services.

Salon Allure specializes in hair care and beauty services, with a focus on innovative treatments such as keratin treatments and extensions, in addition to traditional services like haircuts and coloring. Their pricing strategy balances between mid-range and high-end, aiming to attract a middle to upper-middle-class clientele. Salon Allure has a strong presence in Honolulu, with a single, well-located salon that emphasizes a personalized customer experience. Salon Allure targets a wide geographic area within Honolulu, catering to both residents and visitors who seek high-quality hair and beauty services. The salon’s key strength is its commitment to using advanced hair care technologies and techniques. A potential weakness for Salon Allure is the challenge of maintaining a high level of personalized service as it grows and potentially expands its customer base.

Competitive Advantages

At ShearElegance Studio, we pride ourselves on offering a more extensive variety of haircut, styling, coloring, and other beauty services than our competition. This expansive menu not only allows us to cater to a wider audience but also enables our clients to enjoy a one-stop beauty experience. Our skilled team is trained in the latest trends and techniques, ensuring that every service we provide is of the highest quality. By continuously updating our offerings and staying ahead of beauty trends, we can meet and exceed the expectations of even the most discerning clients, setting us apart in the vibrant Honolulu beauty scene.

Moreover, our commitment to customer satisfaction extends beyond the variety of services we offer. We create a welcoming and comfortable atmosphere that makes every client feel pampered and valued from the moment they step into our salon. Our use of high-quality products and tools further reinforces our dedication to excellence, ensuring that clients not only look their best but also feel their best. Additionally, our strategic location offers convenience to both local residents and visitors, enhancing our accessibility and appeal. These competitive advantages, combined with our passion for beauty and excellence, make ShearElegance Studio a premier destination for anyone seeking top-notch beauty services in Honolulu.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

At ShearElegance Studio, clients can expect a wide array of premium beauty and grooming services tailored to meet the unique needs of each individual. This salon prides itself on delivering quality, style, and comfort across all its offerings. From transformative haircuts to rejuvenating skincare treatments, ShearElegance Studio provides a full spectrum of services to ensure clients leave feeling and looking their very best.

One of the cornerstone services is Haircut and Styling. The salon offers bespoke haircuts tailored to fit each client’s personal style and preferences. Whether you’re seeking a dramatic change or a simple trim, the experienced stylists work with precision and care. Prices for haircuts and styling start at $50, ensuring that clients can access top-tier service at competitive rates.

Hair Coloring is another specialty of ShearElegance Studio, where the aim is to achieve the perfect shade and tone for every client. From full color transformations to subtle highlights, the salon uses high-quality products to ensure lasting results and hair health. Prices for hair coloring services begin at $70, varying based on the complexity and length of the hair.

For those looking to pamper their hands and feet, Manicures and Pedicures are available. The salon offers a range of treatments from basic grooming to luxurious spa pedicures, ensuring that every client’s needs are met. With meticulous attention to detail, the beauty specialists provide a relaxing and satisfying experience. The starting price for manicures is $25 and pedicures begin at $45.

Skincare Treatments at ShearElegance Studio stand out for their personalized approach. Each treatment begins with a thorough skin analysis to tailor the service to the client’s specific skin needs. From facials to more targeted treatments, the salon uses only the finest products to promote healthy, glowing skin. Clients can expect to invest starting from $60 for a skincare treatment, depending on the type and duration of the service.

Last but not least, Waxing and Hair Removal services are available for those seeking smooth, hair-free skin. The salon provides a comfortable and discreet environment for all waxing services, ensuring the highest standards of hygiene and care. Prices for waxing and hair removal services start at $15, varying according to the area being treated.

In summary, ShearElegance Studio offers a comprehensive suite of beauty services designed to cater to a wide range of preferences and needs. With a focus on quality, comfort, and style, clients can expect nothing but the best from their experience at the salon.

Promotions Plan

ShearElegance Studio embraces a comprehensive approach to attract customers and establish its brand in the competitive market of Honolulu, HI. With a keen understanding that the right promotional methods play a crucial role in business growth, the studio will leverage both traditional and digital channels to reach its target audience effectively.

Online Marketing stands at the forefront of ShearElegance Studio’s promotional strategy. The studio will utilize social media platforms such as Instagram, Facebook, and Pinterest, given their high visual appeal, which is perfect for showcasing the studio’s hair and beauty services. Regular posts featuring before-and-after photos, styling tips, and promotional offers will engage the community and drive traffic to the salon. Additionally, the salon will maintain an SEO-optimized website that provides a seamless booking experience, introduces the team of professionals, and highlights services and special promotions. Email marketing campaigns will also be an integral part of the strategy, offering exclusive deals to subscribers and keeping them informed about the latest trends and services available at ShearElegance Studio.

Beyond online marketing, ShearElegance Studio will engage in local community events and partnerships to build brand awareness and attract customers. Participating in or sponsoring local fashion shows, beauty contests, and community events will position the salon as a key player in Honolulu’s beauty scene. Collaborations with local businesses, such as gyms, spas, and boutiques, will provide cross-promotional opportunities, introducing the salon to potential customers who value wellness and style.

To further entice new clients, ShearElegance Studio will offer introductory discounts and referral programs. These incentives not only encourage first-time visits but also turn satisfied customers into brand ambassadors who share their positive experiences with friends and family. Additionally, the salon will implement a loyalty program to reward regular clients, ensuring they feel valued and incentivized to return.

Lastly, ShearElegance Studio will not overlook the power of exceptional customer service as a promotional tool. By creating a welcoming atmosphere, offering personalized consultations, and ensuring each client leaves feeling beautiful and satisfied, word-of-mouth recommendations will become a powerful asset for the salon.

Through a mix of online marketing, community engagement, incentive programs, and unparalleled service, ShearElegance Studio will attract and retain a diverse clientele, securing its place as a go-to destination for beauty services in Honolulu, HI.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of ShearElegance Studio, there are several key day-to-day operational processes that we will perform.

• Appointment Scheduling and Management : We will utilize a digital scheduling system to book, confirm, and reschedule appointments efficiently. This system will also send reminders to clients to reduce no-shows.
• Client Check-in and Check-out Procedures : Upon arrival, clients are promptly checked in. After services are rendered, we will ensure a smooth check-out process, including handling payments and booking future appointments.
• Inventory Management : Regularly monitor and reorder salon supplies, beauty products, and equipment to ensure we always have necessary items in stock to provide our services.
• Staff Scheduling : Ensure adequate staffing levels to meet client demand while optimizing staff productivity and satisfaction. Adjust schedules as needed based on peak hours and staff availability.
• Quality Control of Services : Implement a system for assessing and ensuring the quality of services provided. This includes continuous training for stylists and staff on the latest techniques and trends.
• Sanitation and Cleanliness : Maintain a clean and sanitary environment in line with health and safety regulations. This includes regular cleaning of workstations, tools, and common areas.
• Customer Service and Feedback : Prioritize exceptional customer service at all points of interaction. Encourage and review client feedback to identify areas for improvement and celebrate successes.
• Marketing and Promotion : Execute ongoing marketing efforts to attract new clients and retain existing ones. This includes managing social media accounts, email marketing, and special promotions.
• Financial Management : Monitor daily revenues and expenses. Conduct regular financial reviews to ensure the salon is profitable and identify opportunities for cost savings.
• Compliance and Legal : Ensure the salon complies with all local, state, and federal regulations, including business licenses, health and safety standards, and employee labor laws.

ShearElegance Studio expects to complete the following milestones in the coming months in order to ensure its success:

• Securing a Prime Location : Find and secure a salon premise in a high-traffic area of Honolulu, HI, that is easily accessible to the target demographic. This location should also comply with local zoning laws and have the potential for attractive signage to draw in walk-in customers.
• Obtaining Licenses and Permits : Ensure all necessary local and state licenses and permits are obtained. This includes cosmetology licenses for staff, a business license, health and safety permits, and any other regulatory requirements specific to operating a salon in Honolulu.
• Building Out and Decorating the Salon : Complete the interior design and build-out of ShearElegance Studio. This includes purchasing salon equipment, chairs, styling stations, and creating a welcoming and stylish environment that aligns with the brand image.
• Hiring and Training Staff : Hire skilled and licensed hairstylists, colorists, and support staff. Implement a training program to ensure all staff are familiar with the salon’s operating procedures, customer service standards, and health and safety protocols.
• Launch Our Salon : Officially open ShearElegance Studio with a grand opening event to generate buzz in the community. Implement an initial marketing campaign to attract customers, utilizing social media, local advertising, and promotional offers.
• Establishing a Strong Online Presence : Develop a professional website and establish active social media profiles. Utilize these platforms for marketing purposes, showcasing services, sharing customer testimonials, and providing an online booking system.
• Building a Loyal Customer Base : Implement a customer loyalty program and gather customer feedback to improve services. Focus on word-of-mouth marketing by providing exceptional service that encourages customers to refer friends and family.
• Get to $15,000/Month in Revenue : Implement strategies to steadily increase monthly revenue, such as expanding service offerings, optimizing pricing strategies, hosting special events, and increasing repeat business through effective customer relationship management.
• Monitoring Financial Health : Regularly review financial statements to monitor profitability, manage expenses, and adjust business strategies as necessary. This includes setting up a robust accounting system from the start.
• Ongoing Professional Development : Provide ongoing education and professional development opportunities for staff to stay current with the latest salon trends, techniques, and health and safety standards. This will help in maintaining a competitive edge and ensuring high-quality service. By successfully completing these milestones, ShearElegance Studio will be well-positioned for success in the competitive salon industry in Honolulu, HI.

ShearElegance Studio management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Owen Perry, President

Owen Perry, President of ShearElegance Studio, brings a robust portfolio of experience to the table, having previously managed a successful salon. His entrepreneurial journey is marked by a keen understanding of the beauty industry’s nuances and the ability to foster a culture of excellence and innovation. Owen’s leadership style is characterized by his commitment to setting high standards in customer service and operational efficiency. His prior success in running a salon not only demonstrates his competence in managing day-to-day operations but also his skill in navigating the competitive landscape of the beauty industry. Owen’s insight into market trends and his ability to adapt and evolve business strategies make him a pivotal asset in steering ShearElegance Studio towards lasting success.

ShearElegance Studio requires significant investment to achieve our growth objectives. This funding will be allocated towards salon setup, marketing initiatives, inventory procurement, and operational expenses. Our financial strategy is designed to ensure that we have the resources needed to establish a strong market presence, attract a diverse clientele, and deliver exceptional beauty services, setting the stage for long-term profitability and success.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Salon Business Plan Example PDF

Download our Salon Business Plan PDF here. This is a free salon business plan example to help you get started on your own salon plan.  

How to Finish Your Salon Business Plan in 1 Day!

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

Other Helpful Free Business Plan Resources

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.

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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.

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How Profitable Is Owning a Salon?

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

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

6 Steps to Writing a Hair Salon Business Plan

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

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

Here are six steps to creating your salon business plan:

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

Let's dive deeper into each one.

1. Create an Executive Summary

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

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

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

2. Map Out Your Branding Vision

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

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

3. Research Your Industry

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

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

4. Create a Client Acquisition Strategy

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

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

5. Management and Operations

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

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

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

6. Financial Planning

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

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

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

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

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

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How To Write a Salon Business Plan

By Homebase Team

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

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

What is a business plan for a salon?

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

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

Why you need a business plan for your salon

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

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

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

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

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

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

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

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

To help you get funding (and other loans)

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

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

To determine your revenue and labor costs

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

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

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

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

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

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

How to write a salon business plan in 7 steps

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

1. Executive summary

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

As a general rule, your executive summary should cover:

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

2. Company overview and description

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

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

3. Market analysis

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

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

4. Salon business offerings

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

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

5. Salon operations and management

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

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

6. Marketing and public relations (PR) strategies

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

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

7. Financial projections

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

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

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

Free salon business plan template

Need some help getting started? 

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

Download your free salon business plan template here.

Business tools as sharp as your shearing scissors

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

With Homebase, you can:

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

Salon business plan FAQs

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

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

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

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

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

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

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

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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

Marketing plan.

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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Canopy Salon

Canopy salon is an AVEDA Concept Salon, serving the Palouse for nearly a decade, with an emphasis on customer experience, exceptional products made in the USA using 100% wind turbine generated electricity, and advanced, ongoing AVEDA education from world class educators. We are a LGBTQ proud company that endeavors to serve our community in the spirit of diversity, acceptance, and kindness to all who walk in our doors, or live in our surrounding communities. All of our skincare, haircare and body care as well as our color and lightening products are 97% natural derived, and use only renewable and sustainable ingredients that are safe for us and the earth. Our mission at Canopy an Aveda Salon, is to care for the world we live in, from the products we make to the ways in which we give back to society. At Aveda, we strive to set an example for environmental leadership and responsibility, not just in the world of beauty, but around the world.

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