People like feeling good about themselves, and a salon business can help them to achieve that. 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. There may be several customer persona’s depending on your target market, people over 50 years old are a very different market to the Gen X clients.
Frequently asked questions of hair salon business plan
While preparing a beauty salon business plan for a dynamic and successful enterprise, consider points like the following;
- What market is targeted, giving specifics about demographics such as gender, age, income level, location, and so on? • Is this a unique start-up 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 decor and the ambiance of the establishment. When people walk in the door will they find bright lights and modem 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? Flow 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? WU 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?
It’s normal to write this section after the detailed sections have been completed. At that stage, the information to be included in the summary is already written and easy to summarise quickly.
Use this section to explain what your company does and how it will be successful in the salon business area. You need to show your enthusiasm for the industry and explain to the reader what you need.
The rest of the business plan of a beauty salon should give the detailed information once your summary has got the readers interest.
Opening a business means bringing a complex set of resources and events together in order to present your ideal customer with the perfect products for them. There is a lot of planning before you open the doors and part of this process is writing a business plan for a beauty salon.
Who is going to run the business on a day to day basis? What staff does your business need? How will your recruit qualified and trained staff, or will you train people at your salon?
Where will the business be located and why is it a good location? What products and services will sell and what is your niche? Are you aiming for a particular market, such as successful business men and women?
Identifying your ideal client persona is crucial. You need to identify your customers needs, where they are and how you can reach them. Once you have this information, describe how you will get your product or service to the client.
Don’t forget about your competitors. What are they offering and why is your business different or better? Is the niche you want to work in growing and how has it changed over time?
Your business plan for a salon should clearly state where your particular company offering sits in the market place. Will be at the luxury end of the market where the price is high, with exceptional service or a more basic offering. How are your competitors in these markets doing and what can you do better?
This section should describe how you are going to find your ideal client and make sure they become aware of your products and services.
Once you have found your clients, how will you attract and retain them? If you have a bricks and mortar business, is the location good for your type of clients? Does your ideal client read traditional printed advertising or are they more focussed on digital marketing.
If online is important, describe the process your clients go through to make a purchase. Is it quick and easy? Starting a beauty salon business plan will help you to focus on these points.
Managing your business is vital to its success and is often overlooked. You should describe the type of legal structure for your business, such as sole proprietor, partnership or limited company.
Using a business plan template for a salon, you should identify what roles exist in the business and who is responsible for them. For each of the important management roles, describing the persons experience and unique skills for that role could be useful.
Do you intend to use any external management resources, such as advisors or consultants to help guide the company? Don’t forget also professional services, such as accountants, lawyers and IT specialists.
The financial planning section is an essential part of how to make a business plan for a beauty salon stand out to potential investors. If you need start-up funding, make sure this section grabs the readers interest, but also realistic.
You will have to make assumptions here and estimate how the business will grow over the next 12 months. This growth should be based on other businesses in your market. A number of standard reports should be included here, such as balance sheet, profit and loss analysis and a break-even analysis.
Showing realistic, sustainable business growth will prove to potential backers that you know your market. They will be reassured that you business is a good investment for them.
How to order writing business plan salon
OGS Capital business plans are always high quality and always thorough. Complete the short online contact form to discuss the process for making a salon business plan.
When talking to investors, it’s recommended to always produce your business plan for a beauty salon in pdf format.
Illustrative business plan samples
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