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 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.
Starting or Growing a Business? Check out these Offerings.
Business Plan Writers
Investor-Ready Business Plans Written In No Time
100% Free Quote
One-Page Business Pitch
Write A Winning Business Pitch In Just 60 Minutes
Start for $20/mo
All the Insights You Need to Help Your Business Succeed
Works with QBO & XERO
Full Business Plan in Half the Time— and Double the Impact
Save 25% Annually
Plan, fund, and grow.
Easily write a business plan, secure funding, and gain insights.
Achieve your business funding goals with a proven plan format.
- Start Free Trial
- Write for Us
How To Write the Perfect Salon Business Plan for Your Salon in Just 7 Simple Steps
The US salon industry includes more than 80,000 establishments with a combined annual revenue of about $532 billion. So opening a salon, and owning a salon business is a pretty safe bet; it’s steady and profitable . But lack of proper planning makes it difficult to juggle all the aspects of your business, starting from marketing and sales, to accounting, and whatnot.
Here’s a quick tip! Searched all over the internet for concrete information on how to open your own salon? Confused? Don’t worry, we’ve got you covered! Check out this blog on opening your own salon business that gives you a comprehensive 10 step guide to help you get started now.
Writing a properly structured salon business plan is crucial to guarantee your salon’s success in this highly competitive market. Whether you’re wanting to secure a business loan for your salon or trying to expand or reinvent your salon business, a business plan for your salon will help you get there.
So how exactly would a business plan help you?
- A business plan will help you to figure out what you want your salon to offer, where you aim to take your salon’s growth, what kind of people you want to cater to, and who you’re competing against .
- If you are looking for investment from private investors, banks, or any other lending institutions or public grants, structuring a business plan is crucial.
- A business plan will help boost your salon business’s productivity through improved oversight and direction, and help you make informed decisions.
- As your salon business starts to grow and gain clientele, a well-developed business plan can help you acquire the capital needed to expand to new locations.
How to make the perfect business plan for your salon business?
Whipping up a perfect business plan can be pretty daunting because it needs to be immaculate. No worries! Here we’ve broken down the entire process into 7 easy-to-follow , foolproof steps, along with their templates, to help you create a successful salon business plan.
- Write a mission and vision statement
- Create an executive summary
- Analyze and identify your target market
- Perform a competitor analysis
- Write your salon’s business description
- Make strategies for advertising and outreach marketing
- Figure out your financial plan
Whether it’s a hairdressing salon business plan, a general beauty salon business plan, or even a small salon business plan for opening a salon on your own from scratch, we’ve got you covered. This is a complete, comprehensive guide to help you in the process of making a business plan for a salon. It’ll give you a basic understanding of how to write a salon business plan in the easiest possible way.
1. Write a mission and vision statement
I) mission statement .
It articulates the immediate purpose of your salon business. Under this, you can state all the short-term goals that you plan on achieving with your salon within 6 months , stretching up to a year.
Here’s how you can nail a perfect mission statement
- Value – What is the value of your salon in the market? How can it help your clients?
- Inspiration – Why should people want to come to your salon?
- Remember to make your mission statement sound plausible and reasonable . Also, make it specific and concise – clarify all your short-term goals and the timeframe within which you’re planning on achieving them.
ii) Vision statement
Now, where do you aim to take the salon’s growth in the next 5 years ? Well, if you’re dreaming, dream big! And you can be as ambitious as you want, the sky’s the limit.
Setting strategies for a longer-term makes sure that you don’t stumble on the road to success. It makes the overall structure of your business stronger. It prepares you for anything that the fickle market demands from you and throws at you.
Here’s how you can write a perfect vision statement :
- Review your long-term goals in a way that you can analyze how achieving your long-term goals could impact your business and the salon industry in general.
- Derive how your clients could benefit from the visions that you would be implementing.
- Your business’ end goals can drive your vision statement, For instance, if you’re planning to branch out to different locations after, say, 5 years, you can frame your vision statement in a way that states to make your salon a household name, popular in the neighboring areas and so on.
2. Create an executive summary
After you write the mission and vision statements, you can summarize everything that you’re aiming to achieve with your salon under an Executive Summary. Whether you’re writing a business plan for a hair salon or a business plan for a beauty salon, you should be properly aware of what your intentions are with the salon. This section is the most important part of your business plan as it dictates the tone of your salon, and makes an impression.
Remember to keep this section very brief and concise to give an overview, as you’ll be elaborating on these points in the later sections of your business plan.
If you’re having trouble writing your salon’s executive summary, you can always write it after you’re done with all the other sections in the business plan . This will give you a better understanding of your salon business and help you succinctly put your points together to describe it.
What can you do to write the most fitting executive summary for your salon?
- Start by stating all the short-term goals that you plan on achieving within, say, 6 months or a year. Remember to keep your goals realistic and feasible.
- Summarize your approach towards your business, to give an overview of how you will run things in your business.
- Clearly and briefly express the value proposition of your salon, and how it would potentially position your business in your target market.
How to write your salon’s executive summary: A simple template
Divide your business summary into sections of opportunities and expectations, and put brief points in those subsections in the most convincing way. The following template can help you with this :
- How are you trying to achieve recognition in your target market?
- What is your salon’s tagline/motto?
- What is your salon’s growth plan for the first 6 months after its launch?
- Which demographic is your salon meant for?
- How are your services aligned with your target market?
- How many salons are there in the area of establishment of your salon?
- What products and services do they offer?
- What is the range of variation of their clientele?
- What products and services is your salon offering?
- What is the unique selling point of your business? For eg: If your salon is the only one in the area that offers holistic services with spiritual healing, then put it down as your differentiating point.
- How are you different from your competitors? For eg: Is it the lower cost of services of your salon, or the vast range of services that make your salon stand out?
Make sure you catch the eye of potential investors in the above section. Don’t forget to state how you can attract potential customers.
- What is the salon costing you? List down the projected expenses and costs that come from daily operations, rent, staff hiring, cosmetics, appliance expenditures, etc. for the first 6 months.
- What is the cash flow and how much profits are you bringing in for the initial 6 months? This is completely variable and the reaction of your target market to your salon decides this. So aligning your services with them is of utmost importance.
- Why does your salon need financing? For eg: you can convey that you’re trying to meet the anticipated growth of your salon in the market.
3. Analyze and identify your target market
Analyzing and defining a target market for your salon is very important as it goes hand in hand with your salon’s growth and outreach .
A beauty salon can service all genders and age groups. Your target audience can include working professionals, college students and teenagers, homemakers, to-be-Brides, and even children. And each group will require different types of services. So make sure you list down each individual section of your target market and what services they would require.
Here’s a checklist to make sure you’re going the right way about it.
Steps to analyze and identify your target market
- Find out what kind of people you think would resonate with your salon’s services the most. For example, if your salon offers low commitment (temporary) coloring services, you can get a lot of customer traffic from the millennials.
- As an extension to that, find out if your services are more inclined to serve a particular demographic better, or if you’re good with people of every demographic.
- Keep up with the trends in the salon industry to know what’s hot and what’s passé.
- Peek inside the brains of your target clients to know exactly what they want or like and tune your salon accordingly.
An easy-to-follow template to proceed with your target market analysis
- Segregate the people in the market pool into different categories.
Do not forget these bases:
- Personal income/occupation
- List out the services that your salon would offer that would fit one or more of the stated categories above.
For eg: If your salon offers Diamond Facial at $200.00, then you can list this service out as follows :
- Use social media to get an understanding of the trends in the market at present. Join salon and beauty communities on Twitter, Facebook, and Reddit, and follow beauty bloggers on Youtube and Instagram.
- Look up the people who subscribe to or follow these beauty pages and beauty bloggers to identify which trends appeal to a certain demographic. You can tell a lot about your target market’s behavior from the posts they like and the thoughts they share in the comment section of these posts and videos.
4. Perform a competitor analysis
With a great market demand, several strong competitors emerge. And we don’t want your salon to get lost in the sea of other salons now, do we? As it goes, keep your clients close but your competitors closer.
Figuring your competitors out gives you a necessary nudge in the right direction to take your business plan forward. It gives you an idea of what the other salons are practicing with their clients, and what gaps they’re leaving that you can fill up as you step into the salon business yourself.
How do you analyze your competition?
- Find out what the other salons in the area are doing successfully or poorly.
- Get a rough idea of the cost of services that the competitor salons are offering. This helps you price the services for your salon.
- Identify how many salons provide services that focus on a specific niche and do not serve a wide group of customers.
- Find out the industry-specific challenges they are facing that you may also face while running your own salon.
- Analyze what they can do differently to improve their situation, and implement it in your business mission plan to avoid facing such challenges yourself.
- Have your salon address these deficiencies in the market.
Follow these easy steps to perform your salon’s competitor analysis
- Visit your competitor salons’ websites.
- Follow them on social media platforms (Facebook, Instagram, Linkedin) to get an idea of how much influence and reach they have. Check out who follows their social media page to get an idea of the target market as well.
- Sign up for any interactive sessions that these salons might conduct and check how other people respond to these sessions, to understand their grip and dominance on the market.
- Visit the other salons in the market as customers, to get an idea of their quality of services.
5. Write your salon’s business description
So now that you have your market and your competitors figured out, it’s time to work on your salon business . A beauty salon or a hair salon is fine, but what kind of salon do you want yours to be like? Setting a proper description for your business gives your salon a custom style and personality.
Your business description should include an overview of the products and services that your salon would offer, and how your salon would stand out in the market. Setting a trademark vibe to your salon also helps with its brand image.
To get started, you can answer the following questions :
- Would you specialize in any particular service like nail art or bridal makeup?
- Would you want your services segmented for various types of clients?
- What services would you want to offer in packages?
- Would you serve complimentary refreshments to the clients?
- What theme are you going for with respect to interiors and ambiance (Japanese zen, tropical beach day, etc, etc)?
- What would be your salon’s “it” factor that distinguishes it from the other salons in the area?
Once you’re done with the salon’s description and personality, set a brand logo and a tagline to go with it. To get a professionally designed custom logo, you can always reach out to freelancers or companies that can do it for you, like 99designs .
You can also use an online designing software like Canva to design your salon’s logo on your own.
And that should complete the branding.
Creating a business brand will prepare you to answer someone asking you “Why should I come to your Salon?”
Remember to make your salon stand out, noticeable, and interesting.
6. Make strategies for advertising and outreach marketing
Now you have to position your salon in the market in a way that makes people take an avid interest in “the new salon”. Your target audience will guide you towards the perfect approach to spread the word around about your salon.
A simple guide to writing the marketing plan for your salon business :
- Your salon should be Google-able. To show up in digital searches, make sure your business is listed in online directories.
- Create a website or a mobile application for a better customer experience.
- It’s always better to spread out to all social media platforms to promote your business so that your customers (and other potential clients) can get to know you on a more personal level. Connect with your business community by following other small businesses in the area. Actively engage with your target market and share behind-the-scenes content (like before and after photos of clients’ haircuts) to build your credibility and cultivate brand awareness.
- Partner up with other businesses that may share the same clientele as a salon would (like spa retreats) to offer coupons and vouchers, for outreach marketing.
- Offer “first-service” discounts to your customers.
- Keep service rates lower than the other salons in the area to attract clients.
- Once the rapport is established, and your clients trust you with the service quality, you can cut out the discounts. It is also very important that you optimize the discounts in a way that you don’t run into a complete loss, but we’ll get to that in a minute.
- It is crucial to maintain the service quality to the highest degree after you start getting clients. Remember that your clients wear the marketing after they come out of your salon. This will definitely help you secure referrals from existing clients.
Marketing Tip! Want to pull off a great marketing campaign for your salon business but don’t know where to start? Do you feel like the marketing section in your business plan is incomplete? For more detailed marketing ideas for your salon, check out our blog on 7 hand-picked salon marketing ideas to boost your business .
7. Figure out your financial plan
It’s time to play the number game. This is probably the trickiest part of writing a salon business plan because you have to be extremely careful while juggling your revenue and expenditure budget optimally.
You don’t want to scare or throw off your customers by charging exorbitant prices for the services, but at the same time, you don’t want to crash and drown in debt yourself. Not to forget, cutting costs on cosmetics may affect the service quality. Cut hair, not costs!
Ergo, you need to have a proper financial plan for your salon.
Writing a detailed financial plan will help you get a rough idea of how your salon would be progressing on a monthly/ yearly basis. Moreover, if you’re applying for a loan, your financial plan will determine your eligibility .
What can you do to create a solid financial plan for your salon?
- It helps to bifurcate all the expenses into Fixed costs, and Variable costs. Then you can analyze your fixed costs and variable costs to set an optimal budget.
Fixed Costs: This section includes all the costs associated with your salon business that must be paid regardless of the customer traffic in your salon.
- Rent or mortgage for the salon space.
- Payroll for the employees you hire.
- Equipment maintenance costs for hair spa and other services that are heavily equipment dependent.
Variable Costs : This section includes all the costs in your salon business that are directly associated with the customer traffic in your salon.
- Expenses of purchasing cosmetics and other salon supplies.
- Electricity consumption by salon equipment. For eg: If you’re writing a hair salon business plan, make sure you include the electricity consumption by blow dryers, hair straighteners.
- Have a clear idea of how much discount you plan on putting on your services during the first few months of opening your salon, and for what duration you will be offering these discounts. Note that during the first few months of opening your salon, your sales are likely to be lower than your projections, and that’s completely okay.
- Make a list of pros and cons for renting out space for your salon versus buying a place.
- If you’re renting and wish to own the salon space, spot out a tentative date of when you’ll become capable of buying the place.
- Figure out how many people you are going to hire in your staff, and how much salary you would be able to offer them. Note that you’ll have to improvise this according to how the customers respond to your salon.
- Reach out to your local chamber of commerce to get more insights on funding and loans.
- Tentatively figure out the time it will take you to break even, and start earning chunky profits.
Here’s an easy-to-follow template to proceed with your ‘financial plan’ section
The following simple template can help you make the financial plan for your salon:
i) Sales and revenue projections for the first five years :
Figure out how much you’ll charge for your services, and estimate how many services you may perform in a week. A periodic analysis of this over the next five years will give you the necessary projections. Put the details down in a spreadsheet to keep it organized. It also helps to collate all this information and analyze using bar graphs.
ii) Expenses’ budget :
Break down the expenditure of your salon for a given term, by referring to the “fixed and variable costs” list that you made. You can pick the term to be a month, a quarter, or a year long .
It’s a safer practice to stick to a month-long or a quarter-long term. You don’t want the budget analysis task to loom over you and become a burden. Not to forget, it keeps you in touch with the financial status of your salon business.
iii) Estimated profit margins:
Accumulate the sales projections and budget report analysis to find out the profit for that term. Display the margins in pie charts or bar graphs for easy comprehension.
Note all the losses that your salon business can possibly incur in the time period that you have defined as a term. For example, your blow dryers may stop functioning and need to be replaced.
Also include the factors that may stunt your business from growing. For example, you may be short on staff, or your nail salon is lacking an appointment scheduling and business management tool.
v) Cash flow statement:
Make a projected plan of cash flow-in and flow-out for your defined term, where you include cash flow from sources that are not directly related to your salon services or your salon business-related expenses.
Include the cash flow from loans, loan payments, taxes, and personal funds that you used for your salon.
vi) Break-even analysis:
Predict the break-even point for the first five years of your business. Break-even is achieved when your salon business has covered all the expenses, and your sales surpass the expenditure costs. From that point on, your salon will start earning profits.
Other ways to create your financial plan :
Dealing with numbers can be tedious and scary, especially when you already have a lot of other things on your mind as a salon business owner. Moreover, documenting the financial projections yourself can be a pretty daunting task, especially because there’s no room for mistakes.
Instead of making the document yourself, you can choose to consult professionals to help you write the perfect financial plan for your salon.
- Hire freelancers : You can collaborate with business plan consultants to make your financial plan. All you need to do is give them your salon’s budgetary estimates and inputs.
- Use Financial planning tools : It asks you to enter all your financial information. They use built-in formulas to give you the most accurate financial statements that include all the charts and projections that an investor would expect to see in a business plan.
Some important things to keep in mind :
- Keep reviewing the target market, competitor analysis, and marketing and advertising strategies once every while, however frequently necessary.
- Set realistic long-term goals that would be in sync with your current business performance. For example, you can think about branching out to two different locations after a few years. This will allow you to expand your local salon to an enterprise salon.
Go ahead with the pretty business plan
Executing a well-structured salon business should reap good-looking numbers. And the first step towards that is making a killer business plan for your salon.
It gives you the courage to place your faith in your business, and we don’t want you to doubt something you’re passionate about. Remember that you can convince the people in the market about all the great things your salon has to offer, only when you truly believe it yourself.
So go on ahead, start creating your salon business plan today, and give your dreams a much-needed flight. Good luck :))
About Appointy We at Appointy, help business owners grow and run their businesses with our online scheduling software. This blog was a part of our ‘Manage your Business’ category, where we provide expert tips, and resources, or simply talk about the challenges that small and medium businesses face every day. If you have any thoughts on this blog or would like to chat about your business struggles and achievements, let us know in the comments below. We love a good talk!
Am really satisfied thank you
The blogs are really appreciable and one can trust the knowledge and information provided in the writing.
This blog was so helpful.. I really appreciate they way it was broken down and easy to understand.
Thanks Brittany 🙂
Very nice article .Thanks for sharing this great post.
Thanks a lot 🙂
Thanks this blog really helped me now I know where to start
Happy to help! 🙂
Great information. It’s really useful. Please shares these kinds of information in the future.
Thanks! Please subscribe to https://blog.appointy.com/ for more such information.
Very Informative thank you so much for this wonderful article
Interesting & informative to read, thank you for sharing this article with us. it’s really helpful to me. Can you suggest something on started a homemade business plan?
Very nice content about salon buisiness,Its very informative.
Leave a Reply Cancel reply
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Notify me of follow-up comments by email.
Notify me of new posts by email.
Learn how to grow and manage your salon business like a pro!
Subscribe now and get valuable insights from credible sources - delivered straight to your inbox!
We promise to never spam you :)
You have Successfully Subscribed!
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
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)?
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
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!
My Most Essential Blog Posts when Growing a Salon Business
The 5 Best Salon Software in 2023
41 Most Effective Salon Marketing Ideas in 2023
Did you find this post helpful? Share it with your friends!
- 5 Best Salon Software 2023: The Ultimate Guide
- 3 Important Maternity Leave Tips for Salon Owners & Stylists
- How to Keep Salon Staff Motivated and Loyal