There are many elements to starting a hair salon business. It is a creative,…
Salon Business Plan to Attract the Investors
People like feeling good about themselves, and that is ultimately the main purpose of the salon business. The Professional Beauty Association estimates the salon and spa industry contributes approximately $40 billion annually to the U.S. economy. Approximately half the industry is classified as beauty salons offering mostly hair care services. However, entrepreneurs interested in making a salon business plan have many options as to the variety and level of services offered, ranging from a hair salon to full-service spa.
Salons can be setup in innumerable ways, so the purpose of business planning is to pin down the details to improve the chances of long-term success. Planning should always start with identifying the customer and customer needs. That drives services and products offered, the décor, and the location. One geared towards the Gen Y market will be quite different than one setup to attract Baby Boomers over 50 years old.
Planning for Business Dynamics
While making a salon business plan for a dynamic and successful enterprise, consider points like the following:
• What market is targeted, giving specifics about demographics like gender, age, income level, location, and so on?
• Is this a unique startup or a franchise?
• What theme is chosen? Will the salon be “hip and cool” to appeal to younger women and men or will it be “trendy but sedate” to attract an older clientele? The theme determines the décor and the ambiance of the establishment. When people walk in the door will they find bright lights and modern art on the wall or soothing music and subdued colors? The business plan should give potential investors a clear picture of the salon.
• What services and products are offered to customers? Some salons offer services like hair cutting, nails, and facial waxing, and related products. Full service cosmetology businesses also offer services like massage therapy, full body waxing, skin treatments, and so on.
• What location was chosen and why? Is the space rented? How much money is needed for renovation and salon equipment? How will the target market discover the new business? What is the marketing and advertising plan? Can clients make appointments online? Will the business accept walk-ins?
• Staffing is always an issue in beauty salons. Recruiting and retaining experienced cosmetologists is a key success factor. What are the plans for ensuring the salon has qualified staff to offer all advertised services? Will the salon hire staff on payroll or rent space to beauticians, massage therapists, and manicurists?
Thorough and High Quality
The salon’s owner and management team can use the salon business plan as an operating guide and a document for attracting investors. It includes information financial statements, legal structure, staffing plans, description of management qualifications, compensation plans, market analysis, plans for long-term growth, competitive analysis, and so on.
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