Free Hair and Beauty Salon Sample Business Plan
Looking for a free, downloadable hair and beauty salon sample business plan Word doc or PDF to help you create a business plan of your own? Bplans has you covered.
Keep in mind that you don’t need to find a sample business plan that exactly matches your business. Whether you’re launching an upscale, full-service salon in a bustling city or a neighborhood barbershop, the details will be different, but the bones of the plan will be the same.
Are you writing a business plan for your salon because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company.
No two salons are alike. Your business model will be different if you’re renting space to independent hairstylists, rather than taking on employees, for example. So take the time to create your own financial forecasts and do enough market research so you have a solid plan for success.
What should you include in a hair and beauty salon business plan?
Your hair and beauty salon business plan doesn’t need to be hundreds of pages—keep it as short and concise as you can. You’ll probably want to include each of these sections: executive summary, company summary and funding needs, products and services, marketing plan, management team, financial plan, and appendix.
One of the things that makes a salon business plan different than some other service-based business plans is that you might decide to offer a combination of products and services.
Maybe you’ll sell shampoo, beard oil, or other cosmetics and beauty products, in addition to offering services like haircuts, manicures, or massages. If that’s the case, make sure you include your ideas for upselling products to customers to increase the value of every appointment you book.
Download this hair and beauty salon sample business plan PDF or this editable Word doc for free right now, or visit Bplans’ gallery of more than 500 sample business plans if you’re looking for more options.
There are plenty of reasons salon business owners can benefit from writing a business plan —you’ll need one if you’re seeking a loan or investment. Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.
Kateri Kosta
Kateri is a leader in innovative brand and content marketing. She’s committed to putting the best words in the right order to deliver high quality, discoverable, and useful tools and resources at scale. She enjoys exploring the intersection of tech, words, and the people to who drive small business culture.
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Hair And Beauty Salon Business Plan
Start your own hair and beauty salon business plan
Trend Setters Hair Studio
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.
There is a need for a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship.
We plan to supply services and products that enhance our clients’ physical appearance and mental relaxation.
We will be targeting male and female clients who are fashion conscious and have disposable income. Our clients are mostly women, but we will make sure to include men who fit the criteria as well
Competition
There are a number of salons like ours, but they are mainly in the very high income parts of MyTown and surrounding areas. We do not intend to compete with these so called "Day Spas." We wish to offer a middle ground for those clients who can’t quite afford those high-end luxury salons.
Trend Setters will, upon commencement of operations, sell a wide range of beauty services and products. We will provide quality hair, nail, and skin services, along with top lines of beauty products. What will set Trend Setters apart from the competition is our commitment to providing all of these services in one convenient location.
Expectations
The forecast shows small profits leveling out in the third year. We believe this is realistic, even conservative. Of course we will be watching actual results on a monthly basis, and revising the forecast as necessary.
Financial Highlights by Year
Financing needed.
We plan on needing $60K owner’s investment and getting a $50K vendor financing to purchase equipment.
Starting costs include $50K cash cushion, $9K starting expenses before launch, and $53K tangible assets at launch.
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HAIR SALON SUPPLIES BUSINESS PLAN
MISSION STATEMENT
HAIR SALON SUPPLIES is a hair extension company focused on delivering the highest quality pre-bonded and tape hair extensions to their clients using double-drawn Remy cuticle hair. The goal is to create beautiful natural-looking hair with desirable treatments and top-quality hair tools to maintain their hair at home.
KEY TO SUCCESS
To succeed in this business, HAIR SALON SUPPLIES hair salon must:
- Sell the products that are of the highest quality as well as keeping the customers happy with all of our product categories
- Provide 100% satisfaction to their customers.
- Maintaining an excellent level of
- Getting their hair salon products to reach the masses of the selected target market.
- Promote good values of beauty and fashion.
2. Business Description
The business structure of HAIR SALON SUPPLIES hair salon is based on partnership with 50% ownership each for Patsy Kavanagh and Margaret Kelly
2.1 PROMOTERS AND SHAREHOLDERS
Patsy Kavanagh and Margaret Kelly are the founders of the business. This is going to be their first business venture. They have a great passion for the beauty and fashion industry. They are keen to set up a place where people can get their required hair extensions according to their needs. By experiencing various elements of the business and by questioning and studying many surrounding businesses, Patsy Kavanagh and Margaret Kelly are better prepared to launch the hair extension business in a busy location in Kildare, Ireland. They have excellent people skills and feel uniquely qualified to find the right mix of products to make this place a visible and popular location in the area.
2.2 Legal Status
The business will be established as a company under the laws of Ireland.
2.3 Main Products and Services
HAIR SALON SUPPLIES is a hair extension business that will sell double-drawn Remy cuticle pre-bonded and tape hair extensions including keratin bonds. Their keratin bonds will be made up of 20%glue and 80% keratin. HAIR SALON SUPPLIES hair salon will design this ratio to keep the natural hair integrity while guaranteeing the sustainability of the bond. HAIR SALON SUPPLIES hair bonds will come in both standards and double drawn designed to guarantee a great fit for everyone. These bonds will have a lifespan of 3-5 months depending on the client.
HAIR SALON SUPPLIES hair salon will use customized tapes made of 3cm width and 0.5cm in height which looks invisible when applied on the scalp and also feels light in weight. Tapes will come in double drawn and standard to accommodate all clients. These tapes need to be refitted every 6-12 weeks depending on hair growth of clients and are guaranteed to be applied 3 times after initial application. Each shade has been custom-made by both co-founders and master colorists with keeping every hair type/color in their mind.
HAIR SALON SUPPLIES is a business that will use the highest quality virgin hair and ensuring that their clients get the best possible results. Their manufacturer will be Qingdao Haiyi Hair Products Co Ltd which is located in China. The owners have a trustworthy relationship with this manufacturer over the past year by making these extensions together. The owners have worked very closely with Qingdao Haiyi Ltd. building hair extensions to ensure these hair extensions are perfect and up to the top standard to compete with other top brands.
2.4 ADVISERS
HAIR SALON SUPPLIES hair salon will appoint Grand Business Plans as Accountants and financial adviser.
2.5 Key Suppliers
Qingdao Haiyi Hair is a manufacturer based in Shandong China. All production will come from China and it will be shipped over via Fastway. HAIR SALON SUPPLIES hair salon will use DPD as their delivery service to various salons as it offers fast and secure services.
3. Market Analysis
3.1 pestle analysis.
- In Ireland, Government is stable, and political stability is a significant factor affecting trade business especially if someone is exporting from China.
- Good political conditions for business, lesser corruption, economic freedom, and competitive tax rates are positive political factors for any business in general.
- Government policies regarding business, in general, are good and any economic activity which is competitive is encouraged. The company offers hair extensions that will fill the market needs of the market and will provide a better variety and options to the customer.
- Although the economic condition of Ireland is getting better yet there is Low inflation and high taxation rates, a common aftermath of the global financial crisis.
- Being a member of the EU, the exchange rate in Ireland is stable. Likewise, the interest rate is similar to that prevailing all around Europe. This represents no devaluation of local currency or appreciation, making prices stable.
- Ireland’s economy has passed through a strategic shift i.e. it is emerging as a high-tech and knowledge-based economy from an agricultural economy. This means there is a significant shift in lifestyles resulting from the increased per capita income of Irish people. This has a good resultant impact on people to have more consumable income to explore more fashion trends outside their home.
- Language is English so no major communication barrier for international clients as well
- County Kildare is a county in Ireland. It is located in the province of Leinster and is part of the Mid-East Region. There is a huge dynamic Asian and European population living among other nationalities of the world so HAIR SALON SUPPLIES hair salon will fulfill their needs.
- Co Kildare has 73,596 households and the population is about 220,000 which is a good target market for business.
- Beauty and personal care industry’s products and services demand has become increasingly over the last decade.
TECHNOLOGICAL
- Advance methods of manufacturing hair extensions
- Rapid advancement in the beauty and hair industry
3.2 SWOT Analysis
3.3 COMPETITOR Analysis
There are many hair salons in County Kildare which gives HAIR SALON SUPPLIES hair salons the platform to sell their products to as many hair salons as they can. Competitors such as hair extension suppliers are currently working in Ireland but they get these supplies from the manufacturers which are already manufacturing inside Ireland and hence costs are expensive to sell. There are a lot of choices for hair salons to order from hair extension suppliers so it is always a very healthy competition
3.4 COMPETITIVE Advantage
This business believes that its services will have significant competitive advantages against potential competitors. The main difference between HAIR SALON SUPPLIES hair salon and their competitors is that HAIR SALON SUPPLIES hair salon offers affordable prices in hair extensions. Products that will be offered by them are going to be very specific which will help the business to create brand awareness and leadership among the potential customers as they will provide quality and affordable hair extensions
The main significant competitive advantages of the HAIR SALON SUPPLIES Hair Salon products will be:
- Affordable prices
- In demand extensions
- Lower cost of supplies
- Long-lasting and premium quality hair extensions
3.5 Target Market
HAIR SALON SUPPLIES hair extension’s main customers will be young people around age 20-40 who are generally more conscious about their looks and keeping them up with current fashion trends. HAIR SALON SUPPLIES hair extensions can solve many problems related to female hair like thinning hair or any sort of insecurities related to their hair. The reason for selecting one of the busiest locations of the city is the fact that the target market extends from hair salons to students, job holders, and an increasing number of tourists that come to visit this area. HAIR SALON SUPPLIES hair salon’s potential target market will be also the people which like to attend different parties and meetings.
3.6 Total Market Valuation
Kildare is a county in Ireland. It is located in the province of Leinster and is part of the Mid East Region. It is named after the town of Kildare. Kildare County Council is the local authority for the county. It is the 24th largest of Ireland’s 32 counties in area and seventh largest in terms of population. It has a population of more than 222,504 so there is a huge demand for hair salons in Ireland which will enable to make more customers for HAIR SALON SUPPLIES hair extensions.
3.7 Market Growth
The beauty industry in Ireland is growing as it contributes more than 540 million annually to the Irish economy, according to research carried out by Phorest Salon Software which provides software to 3000 salons in UK, Ireland, Finland, Germany, and the USA. It is estimated that there are about 4000 salons and spas across Ireland, which is impressive when comparing it to the population of the country which is approx. 4.7 million.
3.8 Market Trend
Buying habits.
The global hair extension market is expected to grow at a CAGR of over 8% during the period 2018-2024. This analysis of the hair extensions market provides market sizing and growth opportunities for the forecast period 2019-2024. The urge to improve the physical appearance is another major factor driving the hair extensions market worldwide. The rise in income levels has pushed people to increase spend on personal grooming and beauty products, which in turn is boosting the end-user confidence to invest in personal grooming including hair extensions. The hair care segment accounted for 18% of the total revenue of the global beauty market in 2017 and was the second-largest segment after skincare.
There is a visible shift in middle-class spending patterns, which is likely to affect the global hair extensions market. In China and Ireland, the middle-class population accounts for a major share of the hair extensions market and is growing faster in the European and North American regions, where the population of the middle class has stagnated but their median income has increased significantly. Therefore, with the rise in the disposable income in the middle-class population, their standard of living and shopping modes are rapidly changing which is affecting the grooming market in a positive way.
The following factors are likely to contribute to the growth of the hair extension market during the forecast period :
- Growing Demand from Consumers of African Descent
- Middle-Class population to lead market demand
- Rising demand for Beauty and lifestyle accessories
- Increased demand on social media
4. Marketing and Sales
4.1 marketing strategy.
HAIR SALON SUPPLIES hair salon understands the importance of marketing and will pursue an integrated marketing effort that will encompass both traditional media such as local newspaper and contemporary media such as website and social media. The main thing which will differentiate HAIR SALON SUPPLIES hair salon with their competitors is that they are providing all their quality products on affordable prices. HAIR SALON SUPPLIES hair salon will use different strategies to promote themselves on Facebook, Instagram. The business will use Fastway for shipment. And it will use DPD as their delivery service to various salons as it offers fast and secure services. Using integrated marketing communication business will align its image in the mind of the target customer without creating any confusion. All the tools of marketing will be utilized in an appropriate proportion sending out a similar and well-defined message regarding the services.
4.2 SALES STRATEGY
HAIR SALON SUPPLIES Hair Extension will adopt certain strategies to attract customers. For example, it will invite the owner of hair salons to visit our place.
Businesses will also distribute brochures and leaflets to local businesses.
4.3 PRICING
Providing affordable prices to customers will be one of the key objectives of HAIR SALON SUPPLIES Hair Salon. Initially, the business will adopt market penetration strategy pricing in order to penetrate the market. Price will be the key factor that creates the difference in the products of HAIR SALON SUPPLIES hair salon. Most of the companies are focusing on market-based pricing and break-even pricing strategies. However, others are using market penetration and value-based pricing strategies. Some market leaders are also using market skimming. The price will be designed to value the effort being put in to produce the required quality. Price is actually the psychological factor that either convinces the consumer to purchase the product or it enforces doubts that this is not the right type of product that the customer requires. The price of the product should not be too high to let the consumer shy away or not too low that the consumer perceives it as the low-quality product.
4.4 INCOME SOURCES
All the income will be generated by selling hair extensions. For one fitting of HAIR SALON SUPPLIES hair extensions, it can cost between €350-€850 depending on whether the client chooses pre-bonded tips or tapes. The pre-bonded tips work anywhere from 3-5 months but it depends on the customer’s hair and tapes can be reused 3 times after the initial application and it will cost anywhere from 95-150 for a re-tape application depending on the number of tapes that are being replaced.
5. R&D, BUSINESS ASSETS
5.1 business assets.
HAIR SALON SUPPLIES Hair Salon will operate from home as the business grows, they will rent new property to maintain their stock. It is located in County Kildare.
6. Financial
A) financial information.
FUNDING REQUIREMENTS
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- Business Plans Handbook
- Business Plans - Volume 06
- Hair Salon Business Plan Business Plan
Hair Salon BUSINESS PLAN
EPIPHANY SALON
9504 Winding Row Ave. Green Bay, WI 54303
This business plan for a hair salon supports its commitment to a dynamic, cutting-edge, hair care establishment by using an energetic and lively format. The aggressive scheme of expansion and watertight description of all aspects of the business contribute to the innovative and elite image being conveyed by the business. This plan is testament to the value of extensive forethought, as it outlines the business direction for the next 15 years.
VISION/MISSION
Company overview, product strategy, market analysis, present situation.
This business plan is written to end in the year 2015 for the purpose of retirement for myself, Rhonda Walters. Said shares from the business will be sold at an assessed market value. In that year, it is the responsibility of the acting president to write a continued plan for the good of the cosmetology industry and community.
The name of the corporation is Epiphany Salon. The theme is urban, industrial, techno, chic. The first question that rises for most is, "What does it mean?" If you asked that question, know that you probably are a baby boomer and haven't been watching MTV or ESPN, where mass symbols and visualization play an important part in marketing. We refer to it as being, "hip and cool" and that is what Epiphany is, "a hip and cool service and product center for cosmetology including an educational center for Green Bay's urban youth committed to excellence. Green Bay's population is doubling by the year 2000, putting the target market of Generation X at 61,282. The educational center will be an elite school of cosmetology, servicing to a class of 10 every 6 months. This will serve 2 purposes:
- Basic training for the industry focusing on feeding Epiphany the Salon and Epiphany Male Room.
- Service the price conscious economy in the Green Bay Area.
Epiphany Male Room is the only salon to have professional salon services for men in a male environment. Epiphany the Salon offers a full line of Bettiva products noted for their commitment to the environment. As a concept salon for Bettiva, Epiphany is allowed to carry products other Bettiva salons do not. The front of the salon is committed to being a strong retail center, inviting shoppers to interact. The target is 35% retail sales to service dollar sales. Epiphany is the only area salon to be online and fully automated. Epiphany will have the most aggressive marketing campaign of any other area salon.
Epiphany is in its infant stage, however, it carries goodwill from a previous business in respect of retail sales. Both Barbara, the president of Ephiphany Salon, and I have strong backgrounds in business and retail management. A school will complete the 4 major areas of business in 1998. To summarize, the areas of business will include a full service women's salon, a men's salon, a retail center, and an educational center. The target market will be the young professional and the area tourist. The school will be marketed to the price conscious in the clinic and will be an elite school for basic training in cosmetology.
The challenges for the industry are the same challenges for Epiphany. These are recruitment, retention, and productivity. Being a native of the Green Bay Area, where I received my cosmetology license in 1977, I know the area businesses and the people who work at them. As a teacher, I have aided in licensing over 120 cosmetologists at the Vocational Training Center. Presently, there is a mixture of veteran and new talent.
Retention is a problem for salons that lack structure and management. Both Barbara and I have owned and operated successful businesses. Productivity is assessed through employee evaluation by way of salon management software. Client retention, retail dollar to service dollar sales, and goals are all part of the productivity picture. Veteran stylists and technicians are attracted to employers who offer flexible hours and adding to their education by becoming instructors. The Epiphany Male Room will supply a guaranteed hourly rate for new talent, thus keeping payroll predictable for management purposes.
Productivity will be monitored through automation. It is realistic to believe that each department can operate at 80% productivity for top-end projections.
Financing is 20% personal investment from the president and vice president of the corporation, 50% from financial institute, and 30% from investors. A total of $163,880 is needed to safely grow the business, keeping interests secure and the business healthy. Ten percent or $20,100 will be put into savings for security.
Vision and Mission
Epiphany Salon's vision is to create a harmonious, productive, and profitable salon environment, supplying the community with a retail center, a Bettiva share-school of cosmetology, and separate men's and women's salons.
The mission statement is very clean in the approach: Having fun doing business by sharing the passion of cosmetology combining technology, art, and science.
Future planning includes, expansion of retail department with virtual shopping which will be an online shopping center. The school will conduct advanced evening classes, maximizing productivity. Ownership of the present building is planned, expanding an additional 3,000 square feet for school and salon. Presently there are apartments in the upper level. These would add to revenue.
Epiphany Salon, Inc. was founded in 1997 and is presently in its start-up stage. Epiphany Salon can best be described as currently being in the business of cosmetology, education, and wellness. In recent times our key strengths have been customer service, retailing, and education, teaching the most recent technological aspects of cosmetology and business management. The corporation brings together talent with a retail manager and an educator in cosmetology and business who each have more than 20 years experience in the industry. Refer to resumes for background and references.
To profile the issues of the president and vice president, it is the responsibility of management to increase profitability, improve productivity, motivate and inspire associates, create promotional calendars, increase client retention by way of maintaining the policies and procedures, conducting evaluations, and controlling the numbers. Annual board meetings will set the fiscal year with goals, review of policies, and share worth. An advisory board will enhance objectivity and provide guidelines to corporate directors.
Corporate directors will also be employees of the corporation. Barbara will head the skin department, including cosmetic and retail sales. I will be the acting manager of the hair department and work as a technician. After the school opens I will transfer my clientele to other technicians managing the operations of the school.
Growing professional cosmetologists is the focus of the mission. Cosmetology holds a poor professional image. It is an industry that Hollywood loves to exploit, portraying it as an industry that requires little training. Entry-level cosmetology positions require strong technical skills, strong communication skills, and strong sales. In addition to these skills, cosmetologists need to be trained in personal financial management and estate planning. Maslow's hierarchy theory states that after survival, when basic needs are being met, one can go on to higher levels. Our commitment is to have fun doing what we love and be profitable at the same time, while growing the business long term and committing to the personal development of our people. This will help improve the image of the industry. This will attract the best cosmetologists in our area. It is our vision of harmony for the community.
The mission statement also states that this is achieved by combining technology, art, and science. Epiphany Salon will use automation to retain clients. It takes 3 times the amount of effort to attract a new client versus the effort required to retain a happy client. Professional Salon software makes direct marketing a breeze. Presently, 10% of all salons are automated. Locally, 3 salons are automated and none use the technology to market and track clients. Automation is key to growing and maintaining our target market.
Goals and Objectives
It is the goal of Epiphany Salon to provide the community with an institution of cosmetology that targets all socioeconomic standings and is a model for the industry nationally. This models the Bettiva Institute's objective, placing an emphasis on personal as well as environmental wellness. It is this objective that ties together the school, the retail center, and salons.
The Ten Commitments of Excellence
- Commitment to well-being. We believe well-being is the cornerstone of personal and professional growth. Without personal and professional well-being our mission cannot be achieved.
- Commitment to the team objective. We believe in total commitment to the team. The team objective is a guide for us to follow in our service to our clients, support of each other, and team growth.
- Commitment to goal attainment. We believe every individual should have personal and economic goals. Students and staff work within a framework of daily evaluation in order to identify and achieve their long-term objectives.
- Commitment to our time management system. We believe our time management system should be utilized in all clinic activities to provide maximum efficiency and effectiveness for our clients. We commit to managing our time and setting specific goals within that time.
- Commitment to excellence in all we do. With our philosophy we become team members, working for ourselves and each other. We have high expectations in terms of conduct, and know that each of us is a reflection of the team.
- Commitment to incredible, outstanding, unbelievable client service. We believe in extending such incredible service to all clients that they feel like honored guests in our establishment. We constantly anticipate, meet, and exceed our clients' expectations.
- Commitment to retailing through client experience. We believe that each team member is also a salesperson. Retailing is a vital prerequisite to client experience and ultimately leads to professional success.
- Commitment to value-added service. Value-added means doing and giving more than is expected. We believe each of us needs to go above and beyond the call of duty. The school and salon will benefit in direct proportion to the value-added service provided by each team member.
- Commitment to innovation. We believe our strength lies in our passion to implement new ideas and embrace change. We realize that innovation involves risking failure, but we choose to risk failure in our pursuit of success rather than fail passively.
- Commitment to personal property. Commitment to respecting all equipment and belongings of others (as well as to Epiphany Salon). Stealing from others is stealing from oneself.
Through strong commitment, strong marketing, and a solid financial plan, Epiphany will service the community and be recognized as a business leader. We feel very confident that the goals can be reached.
Legal Business Description
The legal name of the company is Epiphany Salon Inc. However, there are departments within the corporation: Epiphany the Salon, Epiphany Male Room, and Epiphany Educational Center. The legal form of the business is Subchapter S Corporation. Refer to article papers submitted to the state, June 26, 1997. The business location is in downtown Green Bay, Wisconsin.
Management Team
Our management team consists of people that have mastered their technical skills and have a desire to share that knowledge with new talent enetering the industry. Career experience expands over three decades. Refer to resumes of myself and Barbara. Portfolio also available for viewing.
Flowchart for team members is available for in-house management. Other charts will explain roles and responsibilities along with compensation of each position available at Epiphany. This includes the roles and responsibilities of Barbara, the president, and me, the vice president. This does not presently include the school staff and its management team.
The outside management team consists of Wally Smart, accountant and Jim Johnson, corporate lawyer. Our outside management advisors provide tremendous support for management decisions and creativity.
By January 1998 an advisory board, including two highly qualified business and industry professionals, will assist our management team in making appropiate decisions and taking the most effective action; however, they will not be responsible for management decisions.
Epiphany team recognizes that additional staff is required to properly support our growth. Presently, there are thirteen people on staff. We are currently interviewing for new staff. As a teacher of cosmetology, I have seven years of former students that hold cosmetology positions in the community. Growth opportunities improve employee retention within our industry. Epiphany recognizes the need for growth of the individual.
President and Vice President
As executive officers of Epiphany Salon, it is our responsibility to improve the image of our industry through solid business management. This is achieved through increasing profitability for the business, its officers, and staff. It means improving productivity for each department. Motivating and inspiring management, technicians, and associate staff with leadership will improve the image, as well as having fun sharing the passion for cosmetology combining technology, art, and science.
To grow a healthy business is to continually assess the needs of the people who hold the same vision. This vision creates a harmonious, productive, and profitable salon environment. It is our responsibility to be committed to this process.
Responsibilities:
Barbara, president.
- Retail center. Oversee the operations of the retail area. This includes inventory, stocking, and displays.
- Oversee receptionist duties and scheduling.
- Oversee the Male Room operations.
- Participate with salon managers. Managers should report to Barbara for needs.
- Handle payroll operations.
- Participate with interviewing.
- Act as salon manager until department can support a head.
- Develop color specialization.
Rhonda, Vice President
- Educational director for Epiphany Salon Education Center.
- Marketing planner.
- Staff meetings.
- Oversee goals and evaluations.
- Co-associate program. Participate with Artistic Director.
- Develop Epiphany fashion newsletter.
- Develop epiphany.com web page and future shopping center.
- Salon technology and training.
- Number cruncher.
Education and Experience:
Refer to resumes and portfolios.
Compensation:
It is the responsibility of the officers to provide themselves with a comfortable wage. However, these wages will not take away from the business. The business then, is paid first with a formulation of 15% from the gross. This ensures a healthy business growth. Also in this formulation is reward for long-term employment with shares given and retirement plans for its staff members. A financial advisor will help with the education needed for benefit of all. Growth is a process. We are committed to this process.
Role: Artistic Director
As the artistic director you hold a strong leadership position within the company as well as within the community. By carrying out the company's vision and mission on a daily basis, you will ensure a harmonious, productive, creative, and profitable salon environment. You will instill the importance of our mission of having fun doing business by sharing the passion of cosmetology combining technology, art, and science with the technicians and co-associates who in turn will share this with their clientele.
- Co-associates program. Be able to determine at what point a stylist should work with a co-associate based on 75% productivity over a three-month period. This program must be rewarding to each party. It must be financially beneficial to the stylist and it must be educationally rewarding to the co-associate. The educational process for the co-associate must be measurable with a competency based closure.
- Monitor the orientation of the co-associate program and evaluate the progress.
- Self-direction and education will be a must, keeping up with the latest trends. The staff will look to you as the fashion leader.
- There will be a Spring/Summer Collection and a Fall/Winter Collection. It will be your expertise to communicate these collections to the staff and community.
- Active involvement in recruiting and interviewing potential staff.
- Coordinate training and development between departments.
- Attend department head meetings on a quarterly basis.
- Participate in staff meetings on a quarterly basis.
An endorsed high school diploma. Five years experience in the field of cosmetology. Attendance at an advanced academy of education committing to updates on a national level annually. Minimum overall service sales of 25% in chemical services. Public speaking skills are needed to communicate trends to the community, department managers, technicians, and co-associates.
This is an optioned position, whichever produces the most revenue for the director. Once this option is made, it holds in place for one year before review.
- Salary based at $9.25 hourly for this full-time position. This is also a stipend position paid bi-annually based on 80 hours per year with staff and co-associate training and development. The pay for the stipend is derived from average weekly pay over a 6-month period.
- Bonus program. Productivity bonus of 2% for each department hitting 100% of service goal or 1% bonus for 80% reach of goal.
- Individual retail sales commissioned at 10%.
- Paid vacation. One week paid after 2 years service. Two weeks paid after 5 years service.
- Health insurance, 50/50 pay after 90 days.
- 45% commission with benefit package and stipend. 10% retail commission.
- Self-employed at 62% commission. No benefits. Stipend for 80 hours education. 10% retail commission. Productivity bonus.
Role: Receptionist
A salon receptionist is a viable position to a successful and harmonious salon. You, as the receptionist, give the first impression and the last impression to everyone who passed through the front door. All clients and customers come first and it is your responsibility to create a balance of all daily duties. It is also your role to facilitate the vision of having fun doing business by sharing the passion of cosmetology combining technology, art, and science and to communicate that vision to the clientele.
Educational Requirements: Endorsed high school diploma with a background in basic computer skills. Related customer service experience is also necessary.
Compensation Base: An annual salary of $12,000 is a base for this full-time position. Performance is to be rewarded. Meeting retail sales goals by 100% results in a 2% bonus. Meeting retail sales goals by 80% results in an 1% bonus. Payment of bonuses will be given through quarterly evaluations. Paid vacations are given with years of service. One week paid after two years and two weeks paid after five years of service.
Health insurance is to be self-funded. Group rates are available.
Part-time employees are given a flat rate hourly plan at $6.00 per hour.
- Customer service. Greet all clients and customers within the first 10 seconds with a smile. Make them feel welcomed and comfortable. Offer a beverage, reading material, and take their coat. Direct them to a dressing area if appropriate.
- All new clients are given a menu and tour of the facilities. If you are unable to do so, find an associate who is available, introducing them to the client by name.
- Handle all phone calls politely and professionally using your name when answering the call.
- Booking appointments. Taking client's name, phone number, and type of service. Repeat the time, day, and date of appointment to client. Resource information for available times to book appointments of each technician.
- Confirming appointments. Appointments for the following day are to be confirmed by the end of the shift.
- Communicate product knowledge to clients with confidence. Have knowledge of all services offered and their prices.
- Check in clients. Clients are to be checked in after being greeted. Check-in includes gathering data for client file. All data for that day is to be entered before the end of your shift.
- As a receptionist, you will be responsible for handling all financial transactions of clients. You will have a complete understanding of the POS terminal as well as the credit card terminal and their functions.
- Gift certificates will be issued, monitored, and filed by the receptionist on duty.
- Proper maintenance of change in the cash drawer is expected.
- New inventory shipments will be promptly checked into stock.
- The answering machine is to be attended to every morning and the calls returned immediately.
- It is the receptionist's duty to close out the POS terminal and credit card terminal at the end of the day or shift.
- Maintenance of the reception area, waiting area, and display units are also responsibilities.
- Inform technicians when their clients have arrived or canceled.
- Dayrunners will be given with data cards each morning.
Role: The Male Room Manager
The main responsibility of the Male Room Manager is to encourage, inspire, motivate, and retain staff and clientele. This is achieved through relaying the vision and mission of Epiphany, creating a salon environment that is harmonious, productive, and profitable. Having fun doing business by sharing the passion of cosmetology combining technology, art, and science is the mission of Epiphany. The manager who models this vision and provides support in its mission will be a strong leader. It will be your responsibility to be this leader.
The manager will help guide and find solutions for the staff if problems should arise. Being a leader in the company, you will ensure customer service to its fullest potential, thereby maintaining client retention and achieving retail goals.
- Orientation of new staff, job description, policy, and procedures of Epiphany Salon.
- Making sure that clients are getting the best customer service.
- Ensure all staff is supplied with business cards.
- Handle customer complaints and suggestions in a pleasant, efficient, and professional manner.
- Participate in presenting staff meetings on a quarterly basis.
- Evaluate Male Room staff quarterly. This includes reviewing client retention and productivity in service and sales.
- Coordinate training and development of Male Room staff with Artistic Director.
Manager will be responsible for receptionist duties, until the Male Room is productive enough to support the investment of a receptionist. This includes nightly drawer closings.
Education and Experience: An endorsed high school diploma with a minimum of 5 years experience in the field of cosmetology. Advanced education in communication and technical skills are required and reviewed on an individual basis.
Compensation: This is a optioned position to be chosen at time of employment. It is to be most financially beneficial to the manager.
- Hourly base of $9.00. Annually bringing the position to $17,280.00. This is based on full-time employment. Also included is a bonus for productivity. Paid quarterly a 2% bonus for 100% service goal or a 1% bonus based on an 80% service goal.
- Retail commission of 10%.
- Paid vacation. One week after 2 years service and two weeks after 5 years service.
- Health insurance. 50/50 pay after 90 days.
- 50% commission with the above incentives. Whichever is the greater revenue producer for the manager.
Role: Technician
As a technician it is your role to communicate and listen to the clients you service and ensure complete satisfaction by focusing on their needs. In turn, you will be implementing the vision of Epiphany Salon. Your clientele will feel the harmonious, productive, and creative environment of the salon.
The mission to build this environment must be one which is having fun doing business by sharing the passion for cosmetology combining technology, art, and science. Placing the clients' needs first, to be creative, productive, and profitable is a balancing act. An act that creates harmony and a sense of well being. It is your personal responsibility to commit to this process.
- Focusing on clients' needs first. This cannot be stressed enough. Listening to verbal and nonverbal cues is imperative to client retention.
- Continually furthering your education. It will be expected that you attend one seminar annually. Within 3 years of employment, you will attend an advanced academy. Education is key to profitability.
- Be involved within the community. Participate with one local event each year. Also be a part of one charity event.
- Communicate product knowledge and service knowledge to the clients you service.
- Incorporate stress-relieving treatments and finishing touches with each client.
- Encourage and educate clients on new trends focusing on the total look.
- Encourage client referrals. Develop strong business building skills and do DTA's (downtime activities).
- Identify professional goals annually.
- Participate with daily cleaning following the golden rules.
- Enhance the image of the industry maintaining a professional relationship with the clientele.
- Actively participate with the team.
Hold a current cosmetology license. Be a high school graduate. Have a background with servicing people.
Option 1: Full-time. Guaranteed $7.50 per hour. Above $701.00 weekly, 45% commission. Sliding scale wage. Above $850 weekly results in 50% commission. 10% commission on retail. Paid vacation one week after 2 years of service and two weeks after 5 years of service. Health insurance, self funded. After 2 years of service, 20% paid by company. After 5 years of service, 50/50.
Option 2: Full-time. Subcontractor starting at 55% up to $699, weekly. 60% after $700, weekly. Retail 10% commission.
Option 3: Part-time. 50% commission.
Role: Nail Technician
A nail technician is a vital link to the operations of all departments. It is your part as a team to communicate the company's vision and mission to the clients you service, taking a holistic approach to nail care. It is your responsibility to educate the clientele you serve. Harmony created by being productive, profitable, and creative is the vision of Epiphany. It is your mission to have fun doing business by sharing the passion for cosmetology combining technology, art, and science. Communication is key. Education is key. Self-marketing is key. It is your responsibility to be committed to the process.
- Placing the clients' needs first. This cannot be stressed enough. Listening to verbal and nonverbal cues is imperative to client retention.
- Continually furthering your education. It will be expected that you attend one seminar annually. Education is key to profitability.
- Be involved with the community. Participate with one local event each year. Also play a part as a team to one charity event a year.
- Communicate product knowledge and service knowledge to the clients you serve.
- Maintain a sanitary and organized work area. Follow the golden rules with other team members.
- Participate with the team.
- Follow up with the clients you service.
- Pre-book return visits with clients.
A current nail technician's license in the state of Wisconsin. A high school diploma. A background in servicing people.
Option 1: Employee based. Hourly at $7.50. Paid vacation 1 week after 2 years of service. 2 weeks after 5 years of service. Health insurance. Self-funded first two years. 20% paid after two years. 30% after five years.
Option 2: Subcontractor. 65% commission. No benefits. Own supplies.
Current Product
Proprietary information is available to investors upon signature of a Non-Disclosure Agreement.
What sets Epiphany Salon, Inc. apart from the competition is the separation of the Male Room and Epiphany the Salon. The separation allows for direct target markets in service and product. The school feeds the two departments. Epiphany Education Center also is the only private school in the Green Bay Area. Epiphany Salon, Inc. is to be the most technologically advanced cosmetology establishment in Wisconsin. I believe with the funding changes with vocational education, you will see more advanced academies forming. Locally, our vocational school has facilitated two such trade academies. Epiphany could be their third. These are industry-driven.
Bettiva is a product well-known in Wisconsin. It is used by many salons. This is not a threat, however, it is support for the school and for retail. We have the largest inventory of any salon. Our goal is to produce 35% in retail. This is a conservative number. Offering a singular note to product lines provides manageable inventory control. Bettiva also compliments our technological position, having a website that provides advertising and referrals. Presently, we are having a web site designed for Epiphany Salon, Inc. Here retailing will expand along with consultation services.
For their education center, Bettiva offers 40% discounts on all professional sizes. This complements clinic pricing, keeping overhead down. At the Vocational Training Center, I used Bettiva and the clinic retailed an average of 32%. The average salon retails 25%. Automation is key for inventory control.
The services offered include:
- The Male Room—Hair cuts, color, hand, and nail treatments and American Crew products. This is a product line designed for men. The price point is average. $16 haircuts.
- Epiphany the Salon—Hair design, colorization, chemical reconstruction, scalp massage and reconstruction, natural and alternative nail treatments, makeup (lessons and application, facials, waxing), and full body massage. Stress-relieving treatments completed the wellness services.
- Epiphany Education Center—1500-hour cosmetology course, a 300-hour nail technician course, a 500-hour skin care course, an instructors' course. The future will expand into full body/massage day spa course. Of course, there will be a clinic of cosmetology offered to the public. These are discounted services performed by senior students. Retail will also enhance the operation.
High end salons are addressing the consumer that is spending less and still wanting quality service. Epiphany Salon, Inc. has designed the business to meet this current trend. Today's consumers want money, time, and stress levels under control. We provide this.
Market Definition
According to the Occupational Outlook Quarterly , published by the U.S. Department of Labor, it shows cosmetology as a steadily growing occupation in the U.S. through 2005. However, the Department of Labor also shows Nail Technicians as one of the 11 fastest growing occupations in the U.S. and cosmetologists as number 37 in the top 100 occupations. This is because Baby Boomers are youth oriented and will be the driving force for our industry for the next 20 years. Generation X is the target we are going after but the Baby Boomers will be paying the way. Wellness, relaxation, and nurturing the soul will supersede "beauty services."
Cosmetology is as large an industry as the tobacco industry. Big businesses are recognizing the billions of dollars consumers spend each year in our industry and they are buying up the major manufacturers. Redken was bought by Cosimar, Matrix by Proctor and Gamble to use as two examples.
Locally, consumers demand pampering treatments while on vacation. Today's stress-relieving treatments replace the 1980s party scene and corporate rewards are given with "Day of Beauty" packages.
The overall market demands quality service at a fair price.
Future Opportunities
As our client base builds in the local market, targeting marketing to the tourism trade will bring new opportunities. Bettiva already offers products on airlines. This could be carried through with lodging businesses. Still another opportunity involves providing custom packages for special groups. "Sweet Sixteen" parties, stress-relieving treatments that travel to corporations or participate with the American Cancer Society program "Look Good, Feel Good," teaching cancer victims how to address hair loss.
Customer Profile
I believe I have already covered this. It depends on how the target is and how Epiphany Salon, Inc. is able to hit each segment of the market. This is unique. Automation plays an important role in tracking clients, finding out which marketing areas are returning an investment, who the client is, and what their spending habits are. This is a continuous process.
Competition
The three top salons in Green Bay are Wonders, the Green Bay Spa & Salon, and Minerva's. They all target only Baby Boomers and are high end quality salons all competing for the same clients. None target male clients. One has layered pricing for new talent and only one has a strong management system in place that allow their staff to grow. That one is Wonders and they do a terrific job for the industry. They are a Redken Salon.
The Vocational Training Center markets to high school students. We will be marketing to adult students.
Barbara or I could die before the business has established its systems.
Planned financing may not be met in the timeframe we would like. This would postpone the school.
Addressing risks is part of our regular planning. The better the plan, the less the risk, but they need to be addressed continually.
Marketing Plan
The marketing plans are presently in the development stages. Bettiva is playing an important role in this area of business. Strategy can be defined as the science of planning and directing large-scale operations, specifically of maneuvering forces into the most advantageous position prior to taking action. It is this area of business I enjoy the most. It is creative and easily measured. More time is needed for proper planning. We have already budgeted this area to 3% of total revenue.
On July 16, 1997, Bettiva will be mapping out a 12-month promotional grid. In the next two weeks the logo should be complete and ready for copy. The storefront design will soon be finalized. Press releases will be sent out August 1. Direct marketing will introduce the new service and product menus. Recruitment for the school will be done quarterly. Employees will involve themselves in the community.
All of this will be developed, mapped out, and evaluated.
Measurable results include:
- increased sales
- increased marketshare
- improved image
- increased knowledge of business
- identified competitive advantage
- created improved climate for future sales
When completed, it will be the best for the industry in this area and it will safely grow the business 10% annually. Although in the past, I have experienced up to 30% in a year. 10% is conservative and steady.
Market Environment
"With high-tech there must be high touch," says John Nesbitt, Mega Trends 2000. Our society is stressed out and salons are convenient retreats. A relaxing environment, with customer service providing preventative services and products at a good price is key to salon success in the new century. Many women enjoy a relaxing facial for skin maintenance benefits, however, with an average household income of $26,949.00, it is a luxury. Now market the same service, networking a facial with a purchase of $50.00 in cosmetics, and you have an affordable value-added service. Marketing is key. Know the clients, their habits, likes, and dislikes. To do this, the salon must be automated.
The educational center will provide the community with the only private school in the Green Bay Area. Vocational Training Center caters to high school students. They have enrolled adult students in the past, however, they have publicly agreed to discontinue this in the event a private school would provide such services. These services of education include: 1500-hour basic cosmetology license, 300-hour nail technician license, 500-hour skin care license, and 500-hour instructor license.
Start-Up Costs
How this will be paid back
Refer to amortization for loan repayment. 5-year return on investment.
Refer to financial statements following.
Refer to projected income based on salon productivity. In reality, a salon should base maximum productivity at 80%. This is realistic in theory and application. It should be noted that rent is a fixed number annually based at $40,200.00 or $3,350.00 monthly. These projections do not include the nail department or the skin department. This sheet is the male room, the salon and the retail center.
The Salon, the Male Room, and the Retail Center, Operating at 80% Productivity
This means running the company at an 80% productivity rate.
The questions that need to be answered are
- What would the salon look like at a 70% productivity rate within its departments?
- What does the salon look like at a 50% productivity rate within its department?
Figures for the school need to be separate, however, for the business plan they need to be totaled for financing proposes.
The Nail Salon Operating at 80% Productivity
Balance Sheet May 31, 1997
Balance Sheet Subsidiary Schedule May 31, 1997
Statement of Cash Flows for the Five Months Ended May 31, 1997
This page left intentionally blank to accommodate tabular matter following.
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Hair Salon Business Plan Template
If you want to start a hair salon business or expand your current one, you need a business plan.
Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their hair salons.
How to Write a Business Plan for a Salon
Below are links to each section of your hair salon business plan template:
Next Section: Executive Summary >
Hair Salon Business Plan FAQs
What is the easiest way to complete my hair salon business plan.
Growthink's Ultimate Salon Business Plan Template allows you to quickly and easily complete your salon business plan.
Where Can I Download a Hair Salon Business Plan PDF?
You can download our sample business plan for salon owners here . This is a business plan template you can use in PDF format.
What Is a Hair Salon Business Plan?
A business plan provides a snapshot of your salon as it stands today, and lays out your growth plan for the next five years. It explains your business’ goals and your strategy for reaching them. It also includes market research to support your plans. Your business plan is the roadmap to your salon’s success and growth.
Why Do You Need a Business Plan?
If you’re looking to start a salon or grow your existing salon you need a business plan. A business plan will help you raise funding, if needed, and plan out the salon’s growth in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.
What Are the Sources of Funding for a Hair Salon?
The second most common form of funding for a salon is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Venture capitalists will not fund a salon . They might consider funding a chain of hair salons, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.
What are the Components of a Hair Salon Business Plan?
- Executive Summary - This is the key section of your salon business plan. It’s typically one or two pages long, but accomplishes three goals: it introduces you to the reader, explains why your salon will succeed and shows how you’ll accomplish this goal.
- Company Description - As the salon owner, you’ll need to describe your company in one to two pages max. This section should tell the reader what makes your company unique, different, and worth investing time into.
- Market Analysis - A market analysis is a key component of every salon business plan because it gives you an idea of industry trends, who your customer is and where you can find them. Your market analysis should include your customer’s spending habits, what they value in a salon, and why you are different. There is no need to conduct consumer research; rather it can be done using publicly available data.
- Customer Analysis - This section should be dedicated to your prospective customers, including their market demographics and psychographics. Depending on the location of your new salon, your target audience may include working professionals, middle-class families, etc.
- Competitive Analysis - Your competitive analysis shows how you plan to take over the market. It should include a full description of your direct and indirect local competition including other salons and other options for individuals to receive a haircut. You will break down their strengths and weaknesses, customer perceptions of them, and determine the competitive advantage of your own salon to better attract and retain customers.
- Marketing Plan - Marketing is what gets your customers into the door at your salon. It’s how you will get noticed amidst all of your competition. You should include a marketing plan detailing how you plan to cultivate brand awareness, which channels you intend to use, who will be responsible for executing this salon marketing strategy, and how it ties in with your company’s mission statement.
- Operations Plan - Detail every aspect of running your salon business. Who will be responsible for what duties? How will you manage inventory? What systems need to be put in place in order to ensure that your customers receive a positive experience when they come into the salon and that they return after their visit?
- Management Plan - Your company needs to be run by a management team that knows what they are doing and cares about your salon. This section of the salon business plan should cover their experience, qualifications for running a salon, how they will work together as a team, etc.
- Financial Plan - A detailed financial plan includes details about service sales and marketing budgets, startup costs including salon equipment, projections, and three-year forecasts. Be sure to include the following financial statements: income statement, balance sheet, and cash flow statement.
- Appendix - Finally, your business plan needs to include an appendix. This is where you put any supporting documents that back up your claims and projections stated in the financial plan. For example, if you claim that 3 percent of all Americans get their hair cut every two months, this will be backed up by a public data source.
We offer more details and prompting questions in the article above to help you write a business plan for your own salon.
Is My Hair Salon in a Good Business Location?
When looking at a neighborhood in which to open a salon, you should look for a local market where there is a high population density. You want people who are walking by the front of your store every day, and this will create an easy flow of foot traffic.
Be sure to also research the competitor salons in the local community. Identify how you can stand out from the competition to gain more market share to grow your business.
How Much Does It Cost To Open a Hair Salon?
How to Start a Salon Business
Starting a salon can be very exciting, but it's likely that you are using personal funds to get you off the ground. Here are some other steps to take when starting a hair salon business:
- Write a business plan to help you identify risks, project expenses, and sales forecasts, and determine if your hair salon will be profitable in your target market.
- Decide if you will lease or buy a space for your hair salon. Scout out available options in your desired area and reach out to a real estate or property management agent to make arrangements to secure your location.
- Assess how much it will cost to make necessary changes and/or additions to your salon location. This can include construction, furniture, utilities, permits, fixtures, and salon equipment installation.
- Determine how much additional funding you will require for startup expenses including licenses, permits, marketing, inventory, equipment, salon products, and brands, etc. Seek additional funding through business loans and/or angel investors as needed.
- Once funding is secured, begin developing the space for your salon, determine the inventory you have to work with, and purchase any additional supplies and products that you need to prepare for opening.
- Hire the right people, including salon stylists, front desk staff, and assistants as needed to maintain positive cash flow from day one. Consider hiring a general manager to oversee the day-to-day operations of your salon. This will free up time for you to focus on marketing efforts, product purchases, hiring staff members, and other important tasks as they arise.
- Keep up to date with local and state regulations surrounding hairdressers, salon managers, and cosmetologists. This will help you determine the licenses, permits and insurance your hairdressing business needs to operate successfully.
- Review tips from salon entrepreneurs who have been in your shoes before, that can help you avoid common pitfalls as well as increase success rates for new small businesses.
- Open your doors for business! Make sure you have a steady flow of clients after opening by promoting your hairdresser business through local directories, free classifieds sites like Craigslist, or other business marketing strategies.
Read More: How to Start a Hair Salon Business
What are Some Specific Salon Business Tips?
While every salon owner has their own unique ways of running their company, there are many similarities that you will want to cover in your business plan.
- While every salon is different, they all provide some level of customer service. Make sure you understand how your business compares to other salons and what you plan to do better.
- Make sure that the packages for each of your beauty services are clearly stated and easy to understand. It should be very clear what your salon offers and what’s included in the listed price.
- Allocate a percentage of your salon expenses budget to marketing in order to attract new customers. While you may have existing clients, if you want to grow, you’ll need more.
- Keep your salon clean and modern. How you care for your salon is a reflection of how you will care for your clients’ beauty needs.
- Highlight the designer names of all products that you currently use in order to display quality beauty services.
HAIR SALON BUSINESS PLAN OUTLINE
- Hair Salon Business Plan Home
- 1. Executive Summary
- 2. Company Overview
- 3. Industry Analysis
- 4. Customer Analysis
- 5. Competitive Analysis
- 6. Marketing Plan
- 7. Operations Plan
- 8. Management Team
- 9. Financial Plan
- 10. Appendix
- Hair Salon Business Plan Summary
Other Helpful Business Plan Articles & Templates
Beauty Supply Business Plan Template
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We all love to look great, and it's one of the reasons why the beauty industry exists. We take care of our skin and our hair, and there are a lot of products to choose from. Suppliers of such products have a lot of competition, but you can come out on top. Yes, because you have a solid business plan! You'll also need a good slideshow to convince others that your choice is the best choice. Here's the template you need. One of the most elegant we have ever designed, with illustrations, a beautiful font, dark and gold tones and useful (and editable) resources to show all the data you need.
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Most Helpful Salon Business Plan Template [Free Download]
All salon owners must have a good salon business plan.
There’s no getting around that.
Poor planning is the number one reason hair and beauty salons fail.
We all know this. But how come so many salon owners start their salon business without a salon business plan?
Creating a salon business plan may seem like a daunting task. Salon owners I meet procrastinate over their business plan because of the idea that a salon business plan needs to be a massive, 50 page, document with a lot of details.
But it doesn’t.
It can be one page.
In fact, a one-page salon business plan is in most cases more helpful and effective than an old school 50 page document.
And, assuming you’re clear on where you want to take your salon business, you can create it in just a few hours.
In today’s article, I’ll show you exactly how you can create a focused and powerful salon business plan. You’ll also be able to download a salon business plan PDF and Doc template at the end of the article to get you started.
Are you ready?
Pin it for Later
What is a Salon Business Plan?
A salon business plan is a summary of how your salon business will function and clarifies why it will be successful. It provides a roadmap with goals and milestones to lead your salon to success.
Why do You Need a Salon Business Plan?
The primary reason you need a salon business plan is for you to get in control of your beauty business and to enable the right decisions upfront. A well-laid-out plan gives you a clear path to follow as you set out, while it also helps spot weaknesses in your salon business early. You also need a salon business plan to communicate with others. If you need to raise money, the bank or investor will want to see your salon business plan before issuing any funds.
Not having a business plan for your salon would be like building a house without any drawings. This is obvious when you’re thinking about a house, but for some reason, it’s often de-prioritized or forgotten by salon owners which, unfortunately, is the main reason salons go bankrupt.
But don’t worry.
Today you’ll learn how to write a salon business plan using the free template you can download at the end of this article.
You Get What You Measure
We’ll soon go over all the parts we need to define as part of your plan. But as we do this, we also need to make sure we have ways to measure the results.
If you don’t have a way to track and measure how your business performs vs. the goals and assumptions you define as part of your plan, you’ll operate blind, and you will not take the actions you need to get your business to the place we are trying to define with the plan.
This is why you should invest in powerful salon software that offers rich support for reporting and tracking the key targets you have set for your business.
The below video walks you through what reports look like in Mangomint – the software I recommend if you’re serious about your business.
Having access to this data in a simple way will be a game changer to the success of your plan. You can learn more about Mangomint and if it is right for you here .
How do I Write a Business Plan for a Salon?
There’s 10 critical components that should be included in any salon business plan:
This table will give you an overview of the components you’ll need in your plan. I’ll go through each one in detail in this article.
You can choose any format you want to write your plan in. A regular Microsoft Word document is a common document, but you could also do it in Excel or Power Point.
Keep Your First Salon Business Plan to One Page Only
I’d strongly encourage you to try and fit your business plan onto one page. At least for your first plan.
You’ll need a separate Excel spreadsheet for your financial budget and detailed milestones. But keeping the overall business plan on one page will make this the most helpful salon business plan you can create.
Complexity means distracted effort. Simplicity means focused effort. Edward de Bono
If you can keep the plan to one page, you’ll:
- Have it ready (fast): Some salon owners take months to write their salon business plan when using the traditional big document model.
- Keep it focused: A heavy document with a lot of details will distract your focus. A one-page plan on the other hand, will keep the few key things you need right in front of you. So that you can dedicate your attention to what will have the greatest impact.
- Keep it up-to-date: To be successful today, you need to be fast and agile. Having a 50 page document to update every time you make changes to your plan will make it impossible to maintain it.
- Make it easy to communicate: People are increasingly busy. In particular, investors if that’s who you’re going to share your plan with. Most of them will love it if you can convey what your business is about in just one page. I say most of them. Still, some institutions will require a multi-page plan, but you can deal with that when needed.
The Salon Business Plan Outline
We’ve arrived at the exciting part.
It’s time for you to start drafting your salon business plan. During the rest of this article I’ll walk you through each heading in your salon business plan outline. I’ll explain what each part is and also provide an example for each one that you can adapt to fit your plan.
Don’t just read through this part. Get a pen and paper out and jot down all ideas that come to mind. You’ll find these notes helpful later.
1. Salon Mission Statement
A salon mission statement is a short summary of why your salon exists, what the goal of the salon is and how this goal is achieved. It is the first thing you and other people who read your plan see and should be clearly visible at the top of your one-page salon business plan.
Everyone who work with and for you should understand and embrace your salon’s mission. It unites your salon team.
What is a Good Mission Statement of a Salon?
A good salon mission statement should capture the unique essence of why your salon exists. It sets the direction of your salon business. It should be the north star you look at when making all decisions for your salon. It’s typically one paragraph with one or two sentences.
It’s not easy to write a salon mission statement. Or, it’s easy to write it, but it’s not easy to boil down the overall essence of your salon in a couple of sentences. If you want to dive deeper into how to write a truly inspiring salon mission statement, I suggest you read my separate article about it here .
Salon Mission Statement Example
“Our mission is to provide a friendly, personalized service through a team of highly skilled and creative professionals. Teamwork is our most valuable asset which ensures our clients are always number one, and we strive to exceed your expectations”.
This is just one example to get your thinking going. To get more inspiration on how you can craft your salon mission statement, I’ve created a list of mission statements used by salons today . Not all are perfect, but you’ll find some highly inspirational ones in there.
2. Problem the Salon Solves
All successful businesses exist to address a problem that other people have. For example, I’ve written this blog post because I know there are people like you who need to get a business plan written for their salon but do not know where to start.
But what problem does your salon solve?
This is worth taking a few moments to think about. Because if you don’t have an obvious problem to solve, this is a sign of weakness in your plan. And that you need to adapt how you plan to approach your salon business.
It for sure doesn’t mean that there’s no room for your new salon. It just means you must re-focus your salon on a specific client segment or niche.
Nailing down what your clients’ problems are upfront can guide your salon to success you wouldn’t have been able to spot otherwise.
Example of Problem a Salon Can Solve
“Women have less and less time to spend on theirselves. At the same time, the demands they place on their appearance continuously to go up. They want that healthy looking hair, perfect brows and nails that look stunning every day. But there’s just not room in their calendar to fit all these appointments in.”
If your salon is based in a business district in a city area, this could very well be a problem that a big part of your potential clients faces.
What would you say is the problem people face in the area where your salon is (or will be) located?
3. Solution the Salon Offers
Now that you know what problem your clients face, it’s time to work out how you’re going to solve the problem. The solution is what you’ll offer in your salon and how you’ll offer it.
The Salon Offer
Your salon menu is of course at the core of your offer. The services you have on your menu should be inspired by your clients’ problems that you’re trying to solve. For salon service ideas you may want to add to your salon price list you can check out my other article here .
Retail products is another part of your offer that should complement the services in a way that helps address your client’s problem.
How You Provide the Service and Products
Your solution is not only about the services and products you provide but also how you provide them. What’s the experience you offer in the salon? How are you pricing your services? Do you need to book in advance or do you offer drop-in? Do you sell retail products online?
It could be that your service menu is identical to other salons in your area. But if you’re offering a different experience, at a different price, you can still fill a gap in the market and address a problem that people have.
Example of Beauty Salon Solution
Let’s take the problem example above – where women in your area have too little time to get all the beauty services they’d like. Your salon solution could then be something like the below:
“We offer set packages of hair cut & color with waxing and nail services included. You’ll receive all services at the same time so that you get everything done in under 90 minutes.”
Being Different through Customer Experience
I just want to reinforce that how you offer your service does not necessarily need to be in a completely out-of-the-box and new way for you to stand out. It can be by simply doing things better than what your competition is doing.
For example, by placing a bigger emphasis than anyone else on the customer experience. That people feel better treated and have a higher level of customer service than they get anywhere else. In my opinion, this is probably the best way to differentiate yourself today.
The software you use can play a big role here by automating some while still keeping it personal. Like when we allow all our clients to text us at any time. This direct access is very valuable to clients but a mess if we don’t have the right technology to support it.
We run this with the two-way texting feature of Mangomint . It allows us to have client text at any time and messages can be directed within the team and you get a full overview of all client communication (like all automated reminders as well as when people in the team jumps in).
This is just one example of how you can use technology to ramp up your client service level and stand out in your area. Mangomint is quite unique here with several features designed to improve the experience you create with clients. If client experience is important to you and your business, you can learn more about how they do it here .
4. Salon Revenue Model
Your salon needs to make money..
..or it will not exist very long.
But there are many ways that a salon can make money and profit – it’s not just about service sales (even if that’s typically the bigger part of it).
How you generate income should be summarized in the salon revenue model section of your business plan.
I’ve created a separate article for you where I go through what the typical salon revenue model looks like here . In the same article, you’ll also find 6 different revenue models that you can implement to grow your business further.
Let’s go through the most common ways salons make money. I’ll then give an example of how you can outline your salon revenue model in your salon business plan.
How do Salons Make Money?
Salon’s primary income comes from service revenue. For the average US hair salon, this accounts for about 92% of the income generated. On top of that, a small portion of income is generated from retail sales (8%).
But there are several other ways a salon can make money: service revenue, retail sales, and professional education – just to name a few.
Overview of the common income streams for a hair salon
Example of a Salon Revenue Model
Let’s continue to use the salon located in the busy business district also in the example.
“The beauty salon will make money by offering full service packages to business women working in the area with high income but limited time. Retail products will be part of the pre-defined packages and make up 25% of total salon turn over. The services packages will be offered on a subscription program or sold separately at a premium price.”
Membership & Subscription Revenue Model
Subscription-based programs for salons and spas, like in the example above, are growing in popularity. It can create much more stability in your business as you know what income you’ll have in the months ahead.
If you’re already using Mangomint , it’s easy to set up multiple membership programs like this (see screenshot below). Just define what should be included and how often your client should be charged. So you cannot blame not offering this on technology anymore 🙂
5. Salon Expenses
Your salon will generate not only income but also expenses. Your bigger cost pools should be reflected in your salon business plan. Let’s look at some examples of what they could be.
Monthly Salon Expenses List
The biggest monthly expenses a salon has are:
- Rent and utility bills
- Product purchases
- Education
The exact costs will vary from salon to salon depending on location, the number of staff, and the business model you choose.
Tip: To estimate what your salon insurance cost will be you can read my salon owner’s guide to insurance costs here .
Salon Startup Cost List
Common costs when starting a salon are:
- Rent deposit
- Buying out previous salon owner
- Leasehold improvements
- Salon equipment
- Initial supplies and inventory
- Certifications and licenses
- Salon launch marketing
- Legal fees and salon insurance
For a more detailed picture of salon startup costs, you can read my article where I walk through all the costs of starting a salon here .
Given salon equipment can be high, I’vs also put together a list of hair salon equipment that you’ll need when you open a hair salon here .
Another resource you may find helpful is also my list of salon software and other tools you may need to start your business .
Example of Salon Expenses Description
“Wages will be the biggest cost element (40%) and secondly the rent (25%) in the busy business district. Salon profit margin target is 20% of total turnover.”
6. Target Salon Client and Market
Do you know how many people live or work in the area where you salon is (or will be) located? And do you know how many of those that fit in the relevant target group for your salon?
These will be important numbers to know as you’re choosing the location of your salon and crafting your plan and salon concept.
It’s impossible to please everyone. If you try to make your salon relevant for everyone you’ll end up not being relevant for anyone. So define who your ideal salon client is and estimate what the size is of that market.
That is, how many people fall in to your client category and how much are they ready to spend on beauty services. This will make up your target market.
When you speak to everyone, you speak to no one Meredith Hill
Example of Target Market for a Salon
I’ll continue to use the same example salon as before.
“The salon offers express beauty package services to business women, aged 24-55, working in the financial district. There are 5’000 women in the target group that are working on walking distance of the salon. The women spend on average $100 per month on beauty services. The total relevant market is estimated to $6 million per year. “
7. Salon Competition
Do you know how many other salons there are in the area where you have your salon (or are planning to open a salon in)?
It’s obvious.
The more salons there are in the area compared to the people living or working there, the tougher competition will be.
But fierce competition doesn’t necessarily mean it’s impossible for you to be successful.
You’ll, however, need to study your competition closely. What services do they offer? How are their salons positioned?
When you’re clear on what your competitors are doing, you can define what should be your unique points of difference. Armed with that, you can take your piece of the pay. Or even make the pie of customers bigger if you’re bringing something that no one else is offering in the area that will attract new clients who were not previously going to salons.
Example of Salon Competition Study in Your Plan
“There are 5 other beauty salon in the area. Two hairdressers, one barbershop, one nail salon, and a spa. However, no one offers the complete services packages that we will offer. Given the search for convenience and fast services is high, we expect we can take one third of the market over the coming two year. As total market is $6 million, this would mean $2 million market for us.”
8. Salon Marketing Activities
It doesn’t matter how good you are at your craft if people don’t know your salon exists.
But marketing is much more than activities that attract new clients to your salon . It can influence all the 7 ways you can grow your salon business .
But where do you start? There are so many salon marketing activities you could put in place.
The choice of salon marketing activities to implement depends on the challenges your salon face. If you need to build salon clientele fast , you should focus on that. If you need to get your existing clients to come more often, you should focus on that.
In this section of your business plan, you need to make those choices and decide on the activities you need to do to set your salon up for success.
Let’s go through what you should consider and an example of what this could look like in your salon business plan.
Picking the Salon Marketing Activities to Focus on
Now that you know who your ideal client is and how many there are in your area. It’s time to lay out the marketing activities that you’ll focus on.
There are A LOT of things you can do regarding marketing. I have curated a list of the most effective salon marketing activities you can implement here .
But you cannot do all of the salon marketing ideas in this list.
Instead, pick 5 now.
And make sure you can do them well.
You can always come back later to try out more things. I would however be surprised if your salon marketing plan doesn’t include creating your salon brand , building a salon website , and a social media strategy for your salon
But hey, you decide 🙂
Example of a Hair Salon Marketing Plan
“Our salon will not be located on the high street with a lot of people walking by and noticing us. This is why are marketing effort will be focused on running targeted Facebook advertizing to women working in the area with an attractive intro offer. We’ll also focus on local PR in the area as well as our salon Instagram where we will promote the salon in partnership with local activities.
9. Salon Employees & Partnerships and their Roles
Are you starting your salon alone or together with a partner?
Do you need to hire key people to help you launch your salon business?
Is your salon part of a franchise?
It’s quite likely that your salon will depend on other people and organizations in some way or form. This is what you should reflect in this section of your salon business plan. Remember to specify what the role is of each person involved in your business.
Example of Salon Employees & Partnership Section
“The salon will be owned by John & Lisa and will operated with four employees from start: two hair stylists, one nail technician, and one aesthetician specialized on skin care services. The salon will also allow for booth rentals and allow two stylists to rent a chair when the salon has opened. A highly skilled and motivated salon team will be at the core of the business which is why we will invest over 4% of net sales in team capability.”
10. Major Milestones and Salon Business Goals
Setting up a salon business is not a small project. A lot of things need to be done.
You need to obtain the required salon licenses , get salon business insurance , find a salon location , buy salon equipment , market yourself to new salon clients , etc., etc.
It’s frankly overwhelming to think about all the things you need to do next. It’s like a big dark cloud of things that needs to get done. But where do you start?
You need to break down this dark cloud into achievable milestones and goals. Then tackle them one by one.
If you don’t break down these massive projects into smaller tasks, you’ll either get stressed out or start to procrastinate and not get anything done instead.
This is why you need to outline your major milestones and goals.
It’s an exercise that will take a bit of time, but it’s also the most important one. It will help you significantly as you get started, and it will give confidence to investors or other people looking at your salon business plan that what you’re setting out to do is realistic.
Your milestones can be a mix of financial goals and specific activities you must complete by a certain time. Try to include all the bigger things that need to be done from now until your salon is up and running and is meeting your break-even target.
You can make this as sophisticated as you want. I would encourage you to get quite detailed here with specific and concrete steps outlined in an excel file. However, for the sake of the business plan, you can keep it to a bullet-point list of the major achievements and goals.
Salon Milestones Example
Obtain all required salon licenses by May 1st Secure startup funding by May 15th Identify a salon location by June 1st Register the LLC by June 15th Complete salon renovation work by July 15th Get first paying customer by July 15th Hire first employee by August 1st Make first $3,000 in sales by September 1st Reach break even target by January 1st
You can keep your plan at a high level in your plan but, again, you’ll need to break it down even more thoroughly in a separate document with exact financial targets to meet by a certain point in time.
Download Your Free Salon Business Plan Template
Congratulations!
You now have all the theory you need to create the most helpful salon business plan for your business. I know it’s been quite a long read, but you must get this right. I hope you feel that this was the best investment of your time today.
But it’s time to move to action now.
It’s time for you to create your salon business plan.
You can download the lean salon business plan template I’ve created for you using the link below. This give’s you a straightforward and simple one-page business plan format that you can edit in Word.
If you prefer to use your Word text editor to create the plan, I’ve created a template you can use.
Salon Business Plan PDF
Download my simple one-page salon business plan template in PDF version.
Salon Business Plan Doc
Download an editable Microsoft Word document version of the salon business plan.
I’m so excited.
You’re embarking on an adventurous journey now.
And your new salon business plan will be your best companion on it.
Congratulations on taking the time to go through this salon business plan guide – it was long, I know. But maybe the most important thing you did today.
Salon owners that plan ahead are significantly more likely to see success, so this was well-invested time on your side. I’ve tried to make this guide the best possible resource for you that are about to create a salon business plan, and I hope you’ve found it helpful.
If you did, you would make my day if you wanted to share it with your friends using the social media buttons on this page.
Any questions, just let me know in the comments box below.
All the best with your new salon business plan!
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