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Hair Salon Business Plan

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There are many elements to starting a hair salon business. It is a creative, service-oriented enterprise, and the owner or cosmetologist must consistently display competence, and knowledge of industry trends and the most current products and services. The hair salon business plan begins with an Executive Summary that identifies what is unique about the proposed business or business expansions and the business owner’s qualifications and creative achievements. Throughout the business plan there is this unique blending of creativity with hard business facts, reflecting the nature of the hair salon business.

The hair salon industry is quite varied, and because of this the salon owner has to clearly define the market needs and the type of clientele that will be served. For example, salons may cater to high-end clients, children, teens and young adults, families, or men and women. The type of client served will drive the selection of ideal advertising media and prices. The hair salon business plan also discusses the following:

  • Competitive analysis demonstrating the hair salon business owner made the right selection of location and target market

  • Description of all services offered, such as hair styling and coloring, manicures and pedicures, non-invasive hair removal, facials, and so on

  • Description of the management team’s education and experience, and each person’s job duties and      specialization

  • Description of a typical day in the salon, including the roles of people like the salon manager and      receptionist

  • Description of the stylists’ employment arrangements, i.e. employees working for the hair salon or contracted professionals renting booths or space

  • Explanation of financial arrangements with contracted stylists, i.e. commissions, workstation or booth rental fees, responsibilities for product purchases, etc.

  • Description of products sold in the hair salon and initial suppliers

  • Preparation of financial projections, being sure to include all income from services and product sales, commissions paid to stylists, and fees for mandatory licenses, skills updating, and state and local occupational permits


Hair Salon Business Plan for the Investor

The completed hair salon business plan gives investors a detailed picture of a thriving business that has clearly identified the targeted market and developed strategies for driving customers to the business. Business owners or cosmetologists can secure funding for startup expenses, including purchase and installation of equipment and workstations. Established hair salons can seek funding for expansion in a current location, addition of new services, or development of additional locations. There are also hair salon businesses that plan to sell franchises within a five-year period. In that case, the business plan should discuss factors like targeted franchisee locations and financial arrangements.

OGS Capital professionals understand the unique factors impacting a hair salon business. The consultants work closely with stylists to ensure the hair salon business plan accurately portrays the types of services and financial arrangements, and can be instrumental in helping business owners find lenders. The process is easily started by completing the contact form.
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