Salon Business Plan | PDF | Word
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Before you can start styling and cutting hair in your new salon, you need to carefully consider a range of business issues. By writing a business plan, you can organize and improve the business model for your salon and perhaps attract investment as well.
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Research and Marketing
As with other types of business plans, your first step is to research the area where you want to open your salon. You need to understand how other salons operate so you can develop ideas about how yours should. What services do other salons offer? What demographics do they cater to? For example, local salons may not offer inclusive packages that feature cutting, coloring/permanent, and deep conditioning, and you could provide packages like this to compete with these salons. You could also choose to focus on personalized services and consultations, rather than catering to walk-in customers.
This information will also help you determine your prices or even a theme for your salon. These are two important factors if you wish to cater to a higher or lower income bracket. All of this research will also help you develop your marketing plan. If you want to draw high-income clientele, for example, you will have to promote your business toward them. This could involve advertising in a particular business district or in fashion publications.
Thinking about your main goals or business philosophy can also inform services you offer and your marketing. Do you really care about offering quality salon services at low rates, or do you love to address beauty issues in depth on a personal level?
Business Operation
Now you have to jump into the actual operation and financing of the salon. This will involve figuring out how many employees you need to hire, their duties, education, and experience, what equipment you need to buy, and any marketing materials you need. Equipment will obviously include implements and products you need to style hair and so forth, but your business may also call for flat screen TVs, a high-end sound system, or a particular type of reading material depending on the clientele you seek. Again, your goals and research will inform these decisions.
Next, it’s time to do some math. Calculate how much revenue you believe the salon can realistically generate each month over the course of the year. Be detailed here and base your figures on solid research. Then you will contrast these figures with your expenses: startup equipment and construction costs, rent, utilities, payroll, insurance, and marketing costs. Create detailed tables showing precisely how much each of these factors will amount to each month, and then total your expected monthly profit for the entire year, so that you can show investors that you have a viable business.
How to Write a Salon Business Plan
Now you’re ready to write the actual business plan for your salon. Open with an executive summary that will state your goals and the business’s details (name, location, etc.). Then you will elaborate on your model with the following sections:
- Products and Services
- Business Operation
- Marketing Strategy
- Financing
- Professional Biography
- Appendix with licenses or permits
Download (PDF, 166KB)
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