business plan for hair cream

Starting a Hair Care Business: A Beginner’s Handbook

So, you’re all set to weave your entrepreneurial dreams into reality and dive headfirst into the world of hair care business? Fantastic! Starting a hair care business can be an exciting journey filled with innovation, creativity, and endless opportunities to make people look and feel their best.

In this guide, we’ll walk you through the essential steps, from concept to execution, to help you set up a thriving hair care business.

Table of Contents

Market Research: Lay the Groundwork

Market research serves as the critical cornerstone for laying the groundwork of your hair care business. Instead of hastily grasping your shears and leaping into action, take the essential step of conducting comprehensive market research. This phase is pivotal, as it offers a deep dive into understanding your potential customer base, their preferences, and the landscape in which you’ll be operating.

Are you inclined towards crafting natural hair products, offering upscale treatments, or catering to a specific hair type like curls? This decision acts as a compass for your business direction.

Therefore, before you even contemplate picking up those shears and initiating business operations, ensure that you’ve diligently completed your market research. It’s not merely a ritual; rather, it’s your strategic guide in constructing a business that genuinely resonates with and serves your intended customer base.

Read more about: Salon Startup Costs: Building a Strong Financial Foundation

Create a Solid Business Plan

Developing a strong and organized business plan is akin to sketching out your path forward. This process involves outlining your business aims, articulating your mission, determining how you’ll price your offerings, and projecting your financial expectations. This plan should encompass all the elements, ranging from where you’ll acquire your products to how you’ll promote your business.

Why is this plan important? Think of it as your compass—a tool that directs your decisions. Moreover, if you’re considering financial backing from investors or loans, a comprehensive plan can work in your favor.

In essence, before you plunge into the intricacies of sourcing, marketing, and operational activities, ensure you’ve charted your course through a robust business plan. It’s your tool for direction and clarity as you navigate the terrain of the hair care business landscape.

Choose a Catchy Name and Brand Identity

Selecting a memorable business name and crafting a distinctive brand identity is like creating a recognizable face for your venture. This process involves choosing a name that aligns with your intended customers and mirrors the heart of your brand. Consider it as the initial handshake you offer to potential patrons.

Imagine your business’s name as a melody that resonates with those who hear it, while your logo and colors are the visuals that leave an imprint. They work together to form a distinctive personality that people can recognize and connect with.

In a nutshell, before you dive into the realm of business interactions, give careful thought to your business name, logo, and colors. These elements compose your business’s persona and play a role in attracting customers, much like the way flowers beckon bees with their colors and fragrance.

Legal Formalities and Permits

Firstly, you’ll need to officially register your business. Think of it like getting your business a proper ID card. This makes your business a recognized entity and gives you certain legal protections.

Next, there are permits. These are like special permissions that the authorities grant you to run your hair care business. It’s a bit like having the green light to start a specific kind of business activity.

Read more about: Salon Space Planning: Maximizing Efficiency with Layout Ideas

Location Matters

Visibility matters too. Think of it as placing a big sign that says, “Come on in, we’re open!” Having your business in a spot where people can easily see it can make a big difference.

Lastly, consider what your customers prefer. If your focus is on providing relaxation and luxury, a tranquil location might be ideal. On the other hand, if you want to offer convenience, being in a spot that’s easily accessible from where your customers live or work is key.

Curate an Exceptional Team

Assemble a remarkable team; they are the pulse of your hair care enterprise. Bring on board skilled hairstylists, color experts, and professionals who mirror your love for hair care. Their expertise and dedication to customer service will play a pivotal role in nurturing a devoted customer base.

Hiring experienced stylists and colorists is akin to having accomplished artists working on a masterpiece. Their skillful hands and creative touch will transform your clients’ hair and leave them feeling confident and satisfied.

Beyond technical skills, seek individuals who embody your hair care philosophy. This way, your team will not only share your vision but also contribute to the welcoming atmosphere you wish to create.

Products and Suppliers

Think of your suppliers as the backstage crew, working to ensure you’re equipped with the best resources. Just as a chef relies on top-notch ingredients to create a delicious meal, quality products are the foundation for excellent hair care results.

It’s not just about what you provide, but where it comes from. With the right products and trustworthy suppliers, you’re building a robust foundation for your hair care venture. So, invest wisely, and let your products tell your brand’s story with every use.

Design a Memorable Space

When setting up a physical salon or spa, the way your space looks and feels holds immense importance. Imagine it like arranging a warm and cozy living room that reflects your style. This setting needs to be welcoming and comfortable, matching the essence of your brand.

Consider the lighting, which is like the sunshine that sets the mood. Opt for lighting that flatters your customers and complements your chosen aesthetic.

Ultimately, your space design is the canvas on which your hair care vision comes to life. It should feel like a warm embrace, capturing the essence of your brand and ensuring that each customer enjoys a delightful experience. So, curate your space with care, and let it tell your brand’s unique story.

Effective Marketing Strategies

Influencer partnerships are like having popular friends at the party. When they talk about your business, their followers take notice. It’s like a recommendation from someone they trust.

But don’t forget the old-school methods. Think of flyers and local ads as handwritten invitations. They catch the attention of people nearby and remind them of your presence.

So, spreading the word is all about building a friendly buzz, both online and offline. Use these strategies to make sure your hair care business gets noticed and becomes the go-to place for anyone looking to boost their hair’s charm.

Exceptional Customer Service

Imagine your business as a cozy haven where customers can relax and enjoy themselves. Just as you’d offer your friends snacks and drinks, provide your customers with a comfortable and pleasant experience.

Every interaction matters. Answering questions, offering assistance, and providing a friendly smile are like little gestures that show you care. Just like how kind words and attentiveness make a conversation enjoyable, your customers should feel heard and appreciated.

Engage and Expand

Maintaining a vibrant atmosphere involves more than just the initial launch – it’s an ongoing journey. Think of it like hosting a continuous series of enjoyable gatherings. Plan workshops, events, and special deals to keep the energy alive.

As your business gains momentum, consider growing its scope. Think of it as expanding your circle of friends. Exploring new opportunities and offerings allows you to cater to different needs and reach more people.

Adapt and Innovate

Imagine your business as a flexible dancer on a dynamic stage. Just as a dancer adjusts their moves to match the music, your business should adapt to the shifting trends and demands. Embracing innovation is like adding new dance moves to your routine – it keeps things fresh and exciting.

Remember, every thriving venture begins with a dream and evolves with determination, hard work, and a sprinkle of creativity. As you embark on this exciting journey, keep in mind that challenges will arise, but each hurdle presents an opportunity to learn and grow. So, hone those scissors, craft your dreams, and watch as your hair care business evolves into a remarkable story in the expansive landscape of beauty and entrepreneurship.

Frequently Asked Questions

Q: what are the key considerations before starting a hair care business, q: how do i choose the right location for my hair care business, q: what steps are involved in building a strong brand identity for my hair care business.

A: Crafting a memorable brand involves choosing an appealing name, designing a recognizable logo, and selecting a consistent color scheme that resonates with your target customers and reflects your business values.

Q: What are some effective marketing strategies for promoting a hair care business?

A: Leveraging social media platforms, creating engaging content, collaborating with influencers, using local advertising, and organizing events are effective ways to spread the word about your hair care business and attract a loyal customer base.

Q: How can I ensure exceptional customer service in my hair care business?

To learn more on how to start you own salon checkout my startup documents here..

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How to Start a Profitable Hair Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a hair business plan., 3. develop a hair brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for hair., 6. open a business bank account and secure funding as needed., 7. set pricing for hair services., 8. acquire hair equipment and supplies., 9. obtain business insurance for hair, if required., 10. begin marketing your hair services., 11. expand your hair business..

Before launching your hair business, it is crucial to gain a deep understanding of the market. A thorough market analysis will help you identify your target customers, understand your competition, and position your product or service effectively. Here are some key points to consider:

• Analyze the demographics of your potential customer base, considering factors such as age, gender, income level, and purchasing habits to tailor your marketing and product offerings.
• Research current trends in the hair industry, including popular styles, treatments, and products, to ensure your business stays relevant and competitive.
• Identify your main competitors, evaluate their strengths and weaknesses, and learn from their strategies to differentiate your brand and offer unique value propositions.
• Assess the pricing strategies within the market to determine a competitive yet profitable price point for your products or services.
• Understand the legal and regulatory environment of the hair industry, ensuring that your business complies with all relevant laws and standards.
• Consider the impact of technology and online retail on the hair industry and adapt your business model to leverage e-commerce platforms and social media marketing.

Are Hair businesses profitable?

Yes, hair businesses can be profitable. Many hair salons and barbershops are successful businesses. In addition to providing haircuts, they often offer a variety of other services such as hair coloring, styling, and hair treatments. Additionally, they often sell hair care products, which can be a profitable source of revenue.

Creating a comprehensive business plan is a critical step for success in launching your hair business. It will serve as a roadmap for your business, outlining your strategy, financial projections, and how you plan to achieve your goals. Follow these guidelines to draft a solid business plan:

• Define your business concept: Specify what type of hair business you're starting, whether it's a salon, a hair product line, or a hair extension business.
• Analyze the market: Research your target audience, study competitors, and identify your unique selling proposition (USP).
• Plan your services and products: List the services you will offer or the products you will sell, including pricing strategies and potential suppliers.
• Marketing and sales strategy: Detail how you will attract and retain customers through various marketing channels and what sales tactics you will employ.
• Operational plan: Include the logistics of how your business will operate daily, such as location, equipment, staff, and technology requirements.
• Financial projections: Provide a detailed financial plan with projected income statements, cash flow statements, and balance sheets for at least the first three years.
• Set goals and milestones: Identify short-term and long-term objectives, with specific targets and deadlines to measure progress.

How does a Hair business make money?

A hair business typically makes money by providing services such as cutting, styling, coloring, and other treatments to customers. The business may also sell hair products such as shampoo, conditioner, styling products, and other related items. The business may also offer additional services such as hair extensions, hair treatments, and other specialized services.

Developing a hair brand is a pivotal step in starting a hair business as it sets the tone for your company's identity, values, and the products you offer. Your brand is how customers will recognize and remember you, so it's essential to create a strong and cohesive image. Follow these guidelines to build a brand that resonates with your target audience:

• Define Your Brand Identity: Determine your brand's personality, values, and unique selling proposition. Consider what makes your hair products or services stand out from the competition.
• Choose a Memorable Name and Logo: Your brand name and logo are the first things people will notice. Ensure they are distinctive, easy to remember, and reflect the essence of your brand.
• Select a Color Scheme and Typography: Visual elements, like color and font, play a critical role in branding. Select a color palette and typography that align with your brand's personality and appeal to your target market.
• Develop a Brand Voice: Your brand voice is how you communicate with your audience. Whether it's professional, friendly, or quirky, make sure it's consistent across all marketing materials and platforms.
• Create a Brand Story: Share the story behind your brand. Stories are memorable and can create emotional connections with customers, encouraging loyalty and word-of-mouth referrals.

How to come up with a name for your Hair business?

Brainstorm a list of ideas that relate to the services you offer. Think of words that evoke the feeling you want your clients to have when they hear your name. Research similar businesses to gain an understanding of what names are already being used in your local market. Finally, test out potential names with a few trusted friends and family members to get their feedback.

Once you've laid the groundwork for your hair business, formalizing your business registration is a critical step to legitimize your operations and protect your brand. Registering your business is a process that varies depending on your location, but generally involves a few common steps. Here’s what you need to do:

• Choose a Business Structure: Decide whether your hair business will be a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each has different legal and tax implications.
• Register Your Business Name: Check for the availability of your chosen name and register it with the appropriate state agency. If you plan to operate under a different name than your legal name, file a 'Doing Business As' (DBA) registration.
• Obtain Necessary Licenses and Permits: Depending on your location and the nature of your hair business, you may need specific licenses, such as a cosmetology license or a general business license. Check with your local and state governments for requirements.
• Apply for an EIN: If you have employees or operate as a corporation or partnership, you'll need an Employer Identification Number (EIN) from the IRS for tax purposes.
• Register for State Taxes: If applicable, register with your state tax department to handle sales tax, payroll tax, and any other state taxes.
• File Necessary Documents: Submit any required formation documents, such as Articles of Incorporation or Organization, to the relevant state authorities.

Resources to help get you started:

Explore valuable resources specifically curated for hair bonnet entrepreneurs aiming to understand market trends, optimize operations, and accelerate business growth:

• Beauty Business Journals: Publications that offer insights on the latest trends, consumer behavior, and innovation within the hair care and beauty industry. These journals often have special segments on accessories like hair bonnets.
• Industry Reports: Comprehensive market analysis reports from research firms such as IBISWorld or Mintel, providing detailed data on market size, consumer demographics, and competitive landscape for the hair bonnet sector.
• Online Retailer Blogs: Blogs from platforms such as Shopify or Etsy, offering tips on running an e-commerce business, marketing strategies, and case studies of successful hair accessory businesses.
• Fashion and Beauty Trade Shows: Events where entrepreneurs can network with suppliers, discover new materials, and gain insights from industry leaders. Specific sections or booths are dedicated to hair accessories and care products.
• Email Newsletters: Regular updates from beauty and fashion industry influencers or trade groups that provide news, marketing tips, and business strategies relevant to the hair bonnet market.
• Social Media Analysis Tools: Services like BuzzSumo or Hootsuite that help entrepreneurs track trending topics, consumer preferences, and competitor performance within the hair bonnet niche on social platforms.

Starting a hair business requires not only a flair for styling but also a strict adherence to local regulations. Before you open your doors, make sure you have all the necessary licenses and permits to operate legally and safely. Here's what you need to consider:

• Check Local Business Licenses: Contact your city or county's business licensing office to find out the specific licenses required to operate a hair business in your area.
• Professional Cosmetology License: Most areas require hair stylists to have a valid cosmetology or barber license. This typically involves completing a certain number of hours of training at a recognized school and passing a state board exam.
• Salon License: If you are opening a salon, there may be a separate salon license that you need to acquire, which ensures your establishment meets health and safety regulations.
• Building Permits: If you're renovating a space for your hair business, ensure you have the necessary building permits for construction and signage.
• Health and Safety Permits: Since salons deal with chemicals and tools that can be hazardous, a health and safety inspection may be required to get a permit from the local health department.
• Specialty Services Permit: If you're offering services like hair coloring or chemical treatments, additional permits may be required for those specific services.

What licenses and permits are needed to run a hair business?

The specific licenses and permits required to run a hair business can vary depending on the location and type of services offered. Generally, you will need to obtain a business license, a health department permit, and a cosmetology license issued by the state board of cosmetology. You may also need additional certification for specialty services such as hair extensions and hair coloring. Additionally, your local government may require you to obtain special zoning permits or operate your business within certain guidelines.

Starting a hair business requires careful financial management, which is why opening a business bank account and securing the necessary funding are essential steps. A separate account will help you keep personal and business finances distinct, while funding will fuel your growth. Follow these guidelines to get started:

• Research banks that offer business banking services and compare their fees, services, and customer support. Choose one that best fits your business needs.
• Prepare the necessary documents to open a business bank account, such as your business license, EIN (Employer Identification Number), and ownership agreements.
• Consider applying for a business credit card to build credit history for your hair business and to keep track of expenses more efficiently.
• Explore various funding options, including business loans, lines of credit, or investors, if your initial capital isn't enough to cover startup costs.
• Look into special grants or funding opportunities for small businesses, particularly for those owned by women, minorities, or veterans, if applicable.
• Create a solid business plan to present to potential lenders or investors, showcasing your market analysis, projected financials, and growth strategy.

Setting the right pricing for your hair services is crucial to the success of your business. It requires a balance between being competitive in the market and ensuring profitability. Consider the following points to help guide you in establishing your pricing structure:

• Research local competitors to understand the going rates for similar services, ensuring your prices are neither too high nor too low.
• Calculate your costs, including rent, supplies, labor, and utilities, to determine the minimum price you need to charge to cover expenses and make a profit.
• Consider the level of experience and expertise you or your stylists bring to the table, as higher skill levels can command higher prices.
• Be transparent with your pricing by displaying it clearly in your salon and on your website to build trust with clients.
• Offer tiered pricing for different levels of stylists, if applicable, to cater to a wider range of customers.
• Introduce special promotions or discounts for new clients or off-peak times to attract business without undervaluing your services.
• Regularly review and adjust your prices as necessary to reflect changes in the market, cost of supplies, and the growing expertise of your stylists.

What does it cost to start a Hair business?

Initiating a hair business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $12500 for launching such a hairbusiness. Please note, not all of these costs may be necessary to start up your hair business.

Starting a hair business requires not just skill and creativity, but also the right tools and supplies. From basic combs and scissors to specialized styling tools, having the right equipment is essential for providing top-notch services to your clients. Below is a list of essential items you should acquire:

• Basic Tools: Scissors, combs, brushes, and hair clips.
• Electrical Appliances: Hair dryers, straighteners, curling irons, and clippers.
• Hair Care Products: Shampoo, conditioner, hair spray, gels, and serums.
• Coloring Supplies: Hair dye, bleach, gloves, and application brushes.
• Sanitation Supplies: Barbicide, disinfectant spray, towels, and aprons.
• Personal Protective Equipment (PPE): Gloves, masks, and protective eyewear for safety.
• Salon Furniture: Styling chairs, shampoo bowls, and hairdressing trolleys.
• Salon Accessories: Mirrors, hairdressing capes, and appointment books or software.

List of Software, Tools and Supplies Needed to Start a Hair Business:

• Barber chairs
• Hair cutting scissors
• Hair clippers
• Hair care products
• Hair styling tools
• Hair accessories
• Accounting software
• Payment processing software
• Inventory management software

Starting a hair business requires not just skill and creativity, but also a solid foundation of protection. Business insurance is critical as it safeguards your enterprise from unforeseen events and liabilities. Here is how to obtain the appropriate insurance for your hair business:

• Research different types of business insurance, such as General Liability Insurance, Professional Liability Insurance, and Product Liability Insurance, to understand which coverages are most applicable to your hair business.
• Contact multiple insurance providers to compare quotes and coverage options. Ensure that the policy you choose covers the specific risks associated with hair services and products.
• Consult with a licensed insurance agent who has experience in small business and salon insurance. They can provide personalized advice and help tailor a policy to your unique needs.
• Consider the value of your equipment and inventory when determining the amount of coverage. This will help you decide on the right policy limits to protect your assets.
• Regularly review and update your insurance policy to ensure it matches the growth and changes in your business. As you expand services or increase inventory, your coverage needs may change.

Now that you've honed your hair styling skills and set up your business, it's time to attract clients and grow your brand. Marketing is crucial in creating awareness and building a loyal customer base. Here's how you can begin marketing your hair services effectively:

• Develop a strong brand identity that includes a memorable logo, color scheme, and brand voice to stand out in the hair industry.
• Create professional social media profiles on platforms like Instagram, Facebook, and Pinterest, where you can showcase your work, share customer testimonials, and connect with potential clients.
• Build a user-friendly website with a portfolio, service menu, pricing, and an easy booking system to make it convenient for clients to choose your services.
• Offer introductory discounts or bundle deals to new customers to encourage them to try your services.
• Network with other local businesses and professionals to establish referral partnerships and expand your client reach.
• Engage in community events or hair shows to demonstrate your skills and gain local recognition.
• Encourage satisfied clients to leave positive reviews online and refer friends and family for a referral discount.
• Invest in local advertising, such as flyers, posters, or ads in local publications, to target potential clients in your area.

Once your hair business has established a solid foundation and loyal customer base, it's time to consider growth and expansion. Expansion can take many forms, from increasing your product line to scaling your operations. Here are a few strategies to help you expand your hair business effectively:

• Introduce new products or services, such as custom wigs, hair extensions, or specialized treatments that cater to a broader range of customer needs.
• Invest in marketing to reach a wider audience. This could involve social media advertising, collaborating with influencers, or exploring new marketing channels.
• Consider e-commerce if you haven't already. Selling your products online can significantly increase your reach and sales potential.
• Explore partnerships with other businesses or salons, which can provide referral opportunities and expand your network.
• Open new locations or franchise your business to create multiple revenue streams and increase your brand presence.
• Offer training or education programs, positioning your business as an expert in the field and creating an additional income source.
• Regularly seek feedback from customers and adapt your offerings to meet changing trends and preferences in the hair industry.

Beauty Salon Business Plan Template & PDF Example

• September 4, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful beauty salon. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your salon’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a beauty salon business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the beauty industry, this guide, complete with a business plan example, lays the groundwork for turning your beauty salon concept into reality. Let’s dive in!

Our beauty salon business plan is designed with clarity and thoroughness, addressing all crucial aspects needed for a comprehensive business plan. It details the salon’s operations, strategic approach, market environment, competitive landscape, management team, and financial projections.

• Executive Summary : Provides a snapshot of your beauty salon’s business, market environment, management, and financial overview.
• Salon & Location : Describes the beauty salon’s ambiance, equipment, and unique features.
• Treatments & Pricing : Details the types of beauty treatments and services offered, along with pricing.
• Key Stats : Includes industry size , growth rates, and significant statistics relevant to the beauty salon sector.
• Key Trends : Highlights current market trends affecting the beauty industry (customer preferences, technological advancements, etc.).
• Key Competitors : Analyzes main competitors in the area and your salon’s competitive edge.
• SWOT : Analyzes strengths, weaknesses, opportunities, and threats.
• Marketing Plan : Describes promotional strategies to draw in and keep clients.
• Timeline : Lays out key milestones and objectives from launch to expansion, covering at least the first 12 months.
• Management : Introduces the team behind the salon, detailing their roles and contributions to the salon’s success.
• Financial Plan : Projects the salon’s 5-year financial performance, including expected revenue and expenses, and outlines funding expectations.

Beauty Salon Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary serves as an introduction to your beauty salon’s business plan, providing a succinct overview of your salon and the variety of beauty services it offers. This section should outline your salon’s market positioning, the comprehensive range of beauty treatments and services provided, its location, size, and a brief on operational practices.

Additionally, this section should assess how your beauty salon positions itself within the local market. It should enumerate the number of direct competitors in the vicinity, identify these competitors, and emphasize your salon’s unique selling points that set it apart.

It’s also essential to include details about the management and co-founding team, specifying their roles and how they contribute to the salon’s operational and strategic goals. Lastly, a summary of the financial projections, highlighting expected revenue and profit margins over a 5-year period, should be incorporated to outline the financial plan of your beauty salon.

Beauty Salon Business Plan Executive Summary Example

Business Overview

A concise and informative  business overview  is pivotal. It introduces essential details like the salon’s name, location, and a snapshot of its daily operations.

These details set the stage for your salon, framing its unique characteristics. A unique selling proposition (USP) distinguishes your salon. Whether focusing on premium organic products, specialized skincare treatments, or personalized client experiences, the USP should stand out in your executive summary, encapsulating your salon’s  unique value proposition .

Example: In the US beauty salon industry valued at $57 billion, experiencing a 7.0% CAGR, “Radiance Beauty Haven,” located in the heart of Vibrant City Heights, occupies a spacious 2,500 square feet area on Oak Street. We specialize in a myriad of premium beauty services, including haircare, skincare, nail artistry, makeup, and spa therapies. Our USP lies in providing customized beauty solutions with a focus on organic, cruelty-free products, offering clients a holistic and rejuvenating experience.

Market Overview

Understanding the  market size , growth trends, and industry dynamics is crucial. This section should highlight the potential of the local beauty and wellness market, supported by relevant data such as market value and growth rates. Discussing trends, such as the rising demand for natural beauty products or holistic wellness therapies, sheds light on the evolving landscape and your salon’s positioning within it.

Equally important is outlining the  competitive  landscape. Identify  key competitors  and elucidate how your salon distinguishes itself within this framework. Whether through specialized services, exceptional customer care, or innovative beauty techniques, this section showcases how your salon stands out amidst the competition.

Example: In the local beauty and wellness market of Vibrant City Heights, valued at $8 million annually with a 10% growth rate, Radiance Beauty Haven stands out by emphasizing organic, cruelty-free beauty products and personalized wellness experiences. Amidst competition, our commitment to holistic beauty practices positions us as the preferred choice for clients seeking a revitalizing and natural approach to beauty care.

Management Team

The expertise and background of your management team are significant assets. Highlight the qualifications and experiences of key team members in your executive summary.

This could include your salon manager’s extensive experience in beauty service management or your marketing director’s specialized skills in client engagement. Demonstrating the team’s proficiency builds credibility and assures potential investors and partners of your salon’s capacity for success.

Example: At Radiance Beauty Haven, Emma Johnson, with a decade of experience in beauty service management and business development, leads the team. Supported by a roster of skilled beauty professionals and wellness experts, each dedicated to curating luxurious and personalized client experiences, the salon promises expertise and excellence in every service.

Financial Plan

A concise overview of your financial goals and projections is crucial. Summarize revenue targets, profit margins, and anticipated growth trajectories, offering a clear picture of your salon’s financial trajectory.

Example: Radiance Beauty Haven aims for a projected revenue of $700,000 within its first year, targeting a 20%  net profit  margin. Investment in premium beauty equipment and a strategic focus on personalized client experiences, complemented by a robust  marketing strategy  aimed at wellness enthusiasts, drive anticipated growth and profitability within the local market.

For a Beauty Salon, the Business Overview section is structured into 2 slides:

Salon & Location

Illustrate the ambiance and layout of your beauty salon, highlighting features that create a welcoming and luxurious experience for clients. Discuss the salon’s strategic location, emphasizing how its accessibility and the surrounding area contribute to attracting your target market . Mention the benefits of your chosen location, such as high foot traffic or nearby complementary businesses.

Treatments & Pricing

Explain the variety of beauty treatments and services your salon offers, including facials, manicures/pedicures, makeup, waxing, and more specialized services. Provide an overview of your pricing structure , showing how it aligns with the quality of services and the expectations of your clientele. Also, introduce any special offers, memberships, or loyalty programs designed to retain customers and enhance their experience at your salon.

Industry Size & Growth

In the Market Overview of your beauty salon business plan, initially address the overall size of the beauty salon industry and its prospects for growth. This provides a foundational understanding of the market’s scale and potential for expansion.

Key Market Trends

Next, explore recent trends within the industry, such as the increasing consumer preference for holistic beauty treatments, the demand for eco-friendly and natural beauty products, and the rise of personalized beauty services. For example, point out the growing popularity of bespoke skincare routines and treatments that cater to individual skin concerns, as well as the shift towards sustainable practices in beauty care.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your beauty salon in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your beauty salon’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Beauty Salon’s Competitors

The initial phase involves identifying and mapping out competitors within the vicinity of your beauty salon. Consider various establishments, such as hair salons, spas, nail studios, and wellness centers, as your primary competitors. For instance, if your salon specializes in organic skincare treatments, your direct competitors might include nearby spas known for their natural therapies, as well as upscale salons offering similar services. Additionally, explore indirect competitors such as makeup stores or mobile beauty services that might cater to overlapping clientele.

Utilize online tools like Google Maps, Yelp, or social media platforms to gain insights into competitor distribution and customer reviews. Reviews often provide valuable information about competitors’  strengths and weaknesses . For instance, if several reviews highlight the exceptional customer service and expertise at “Glow Spa & Beauty,” this signifies a key strength of your competitor, influencing customer preferences.

Beauty Salon Competitors’ Strategies

Analyzing competitors’ strategies encompasses various dimensions:

• Service Offerings:  Evaluate the array of services offered by competitors. If “Natural Hair & Wellness” is gaining traction with its emphasis on sustainable beauty practices and holistic treatments, this signals a market inclination towards eco-friendly beauty solutions.
• Technological Advancements:  Consider the technological aspects incorporated by competitors. A salon like “Innovate Beauty Lab,” focusing on cutting-edge beauty tech such as laser treatments or AI-driven skincare analysis, might attract a different clientele compared to a traditional salon offering classic beauty services.
• Pricing Structure:  Compare your salon’s pricing with that of competitors. Are your services priced similarly to mid-range salons or more in line with premium offerings at “Luxury Beauty Haven”?
• Marketing Approaches:  Study how competitors market their services. Do they heavily rely on social media campaigns, influencer collaborations, or do they prioritize loyalty programs and referrals to attract customers?
• Customer Experience:  Assess the in-salon experience. For example, “Serenity Spa & Salon” might be recognized for its tranquil ambiance and personalized attention, contributing to an exceptional customer experience.
• Operational Innovations:  Observe if competitors employ innovative techniques for efficiency and convenience, such as “Effortless Beauty Bar” utilizing appointment apps or self-check-in kiosks.

What’s Your Salon’s Value Proposition?

Define your beauty salon’s  unique value proposition . It could be specializing in bespoke bridal makeovers, offering exclusive organic hair treatments, or providing niche services like permanent makeup artistry that distinguish your salon.

Identify gaps in the market through client feedback and industry trends. For instance, an increasing demand for sustainable beauty products might present an opportunity if competitors are yet to cater extensively to eco-conscious consumers.

Tailor your salon’s offerings and ambiance according to your location. A salon situated in a cosmopolitan area might focus on avant-garde trends and express services. At the same time, one in a suburban locale might emphasize a relaxing, family-friendly environment to cater to a different demographic.

First, undertake a SWOT analysis for the beauty salon, identifying Strengths (such as a diverse range of beauty treatments and experienced beauticians), Weaknesses (like substantial ongoing costs or intense local competition), Opportunities (for instance, an increasing interest in self-care and beauty services), and Threats (such as economic downturns impacting discretionary spending).

Marketing Plan

Next, craft a marketing strategy that describes ways to attract and retain customers through targeted advertising, special introductory offers, active engagement on social media platforms, and participation in community events.

Marketing Channels

These channels are vital for building brand awareness and engaging potential clients.

Digital Marketing

• Leverage Social Media:  Showcase your expertise and salon ambiance on platforms like Instagram, Facebook, and Pinterest. Engage your audience through captivating content and live sessions.
• Email Marketing:  Regular newsletters featuring beauty tips, exclusive offers, and updates can keep your audience engaged and informed.
• Website and SEO : Develop a professional website optimized for local SEO to rank high in search results.

Local Engagement

• Print Media and Flyers : Design eye-catching flyers distributed in local hotspots. Collaborate with local businesses or influencers for joint promotions.
• Community Events : Participate in or host local events to showcase your salon’s services and connect with potential clients.
• Partnerships:  Collaborate with complementary local businesses like hair salons, spas, or bridal shops for joint promotions or package deals, amplifying brand visibility.

Promotional Activities

• Membership Drives : Introduce loyalty clubs offering exclusive benefits to loyal clients, such as early access to new services or VIP appointments. Offer referral bonuses not only to clients but also to staff to encourage team participation.
• Holiday Specials:  Apart from holiday-themed packages, consider extending your holiday promotions beyond discounts. Organize charity events or initiatives, aligning your salon with a social cause to resonate with socially conscious customers.
• Referral Bonuses:  Incentivize existing clients by offering discounts or freebies for referring new customers to your salon.

Sales Channels

In addition to marketing, various sales strategies can enhance customer satisfaction and maximize revenue for a beauty salon.

Upselling and Cross-Selling

• Enhanced Services : Offer add-on treatments or specialized beauty packages for special occasions.
• Retail Products:  Retail beauty products within your salon and educate customers about the benefits of at-home beauty care products.
• Package Deals:  Provide bundled services at reduced prices.

Online Booking and Sales

• Efficient Booking System:  Implement a user-friendly online booking system on your website and social media platforms. Offer incentives for online bookings.
• E-Commerce Integration : Sell beauty products, gift cards, or exclusive salon merchandise through your website.
• Virtual Consultations : Offer online consultations for personalized beauty advice.

Membership and Loyalty Programs

• Membership Options:  Create membership plans offering a range of benefits, such as discounted monthly services or exclusive access to new treatments, encouraging clients to commit to regular visits.
• Loyalty Rewards:  Develop a digital loyalty program rewarding clients for every purchase and encouraging repeat business.

Strategy Timeline

Finally, map out a comprehensive timeline that highlights essential milestones for the beauty salon’s launch, promotional campaigns, customer growth, and plans for scaling the business, ensuring that the salon advances with strategic intent and defined objectives.

The Management section focuses on the beauty salon’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the salon towards its financial and operational goals.

For your beauty salon business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your beauty salon’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your beauty salon business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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How To Write a Salon Business Plan

By Homebase Team

So you’re thinking of opening a salon business—congrats! Gearing up to owning your own business is a huge step.

But if you’ve never owned a salon before or are simply looking to give your existing business a refresh, you’re probably thinking, “Where do I even start?”  Well, the first step is to write a salon business plan.

What is a business plan for a salon?

A salon business plan is a written document that covers your business goals and how you’re going to reach them.

Every business plan looks different. But for a salon, your business plan will likely include details like who your target customer is, where your salon is going to be located , what salon services you’ll offer, and more. 

Why you need a business plan for your salon

As a salon owner, the thought of writing a detailed business plan might immediately put your stomach in knots. But we promise that the time and effort you take to put a business plan together for your salon will pay off in spades.

Here are some reasons why you should have a business plan for your salon.

To prove your salon business is a good—and profitable—idea

As entrepreneurs, we often have a million great ideas.  But a new business is a big commitment and investment.

Your decision to launch a salon is most likely a great one. But a business plan doubles as a gut check to make sure that you have a solid plan in place. This way, you can open your salon doors with confidence knowing that you’re almost guaranteed to be a success.

To help you reach your short and long-term salon goals

What are your business goals? What steps do you need to take to reach them? How long will it take to reach those goals?

A well-written business plan answers these questions and more. It’s essentially a roadmap that answers all and helps outline how you’ll reach your business goals. Then as you open and grow your business, you can look back and make sure you’re on track!

To help you get funding (and other loans)

Banks and investors often want to see a business plan before they provide you with funding. Having a business plan shows that you’ve done your research, have a plan in place, and that you’re less likely to be a risk.

Even if you don’t need a loan or an investment, financial products like credit cards can be hard to come by if you don’t have a business plan.

To determine your revenue and labor costs

Salons often need multiple stylists and administrative staff. Depending on your goals and the size of your salon business, a business plan can help you determine how many employees you need to hire and train to serve your customers.

Without forecasting your labor costs, you can find yourself with too many customers and not enough workers—or vice versa.

Things to consider before you start writing a business plan for your salon

Before you can start writing your business plan, it’s time to do a bit of brainstorming and research. There are some key questions you’ll want to ask yourself before you start putting pen to paper.

• Where will your salon be located?
• What experience do you have that will help you grow your business?
• Are there similar salons in your area?
• Is there something that will make your business stand out from other salons?

Once you’ve spent some time thinking about these factors, it’s time to get writing.

How to write a salon business plan in 7 steps

Here’s a simple step-by-step breakdown of how to write a business plan and the important tidbits you need to know as you get started.

1. Executive summary

The first thing anyone will read in your business plan is the executive summary. Think of it like an elevator pitch. It’s a brief summary that covers all the most important details so the reader wants to learn more about your business.

As a general rule, your executive summary should cover:

• A short overview of your business venture
• Your salon mission or vision
• Your short and long-term business goals
• Highlights around why \ your salon will be successful

2. Company overview and description

This section should be an overview of your company and what makes it unique. Who are you? What do you do? Why do you do it?

Don’t be afraid to dive into your background and the circumstances that led to you wanting to start your salon business. This is your opportunity to tell your story and share what makes you and your business special as an entrepreneur.                                                                                                                     

3. Market analysis

There are almost a million salons in the US—and that only covers hair salons. The thing about salons is that they can be similar and still be successful. But it’s important to understand how your particular salon will stack up. A market analysis looks at all the competing salons in your region—and beyond—to help you understand your positioning in the market. This then influences everything from your pricing strategy, your service offering, or even your location. 

For example, in your market analysis, you might find that you fall into the category of a premium salon, which means you’ll need to target a more affluent market. Or you might find yourself looking in an oversaturated area, so you’ll want to choose a location with less competition.

4. Salon business offerings

Not all salons are alike. For example, your salon may specialize in blowouts. Or you may have a full-service nail salon. 

Before you open, you should have a clear understanding of the services and products that your salon business might offer. Think of this section of your business plan as a menu of services that your potential customers can choose from.

5. Salon operations and management

This is where you’ll talk about the operational side of your business. Some things to think about around salon management might include:

• Will you rent out chairs to stylists or will you hire them as employees? 
• What will your business hours look like?
• How will you schedule salon appointments ?
• What overhead costs will you have?
• What salon management software will you use?

6. Marketing and public relations (PR) strategies

As much as we wish customers would appear out of thin air, for the most part, you need to drum up excitement for your business. That’s marketing. 

In the marketing section of your business plan, you’ll want to Include details such as your brand messaging, how you’ll reach potential customers, and what marketing and PR investments you plan to make.

7. Financial projections

Calculating your financials isn’t the most glamorous part of owning a salon business, but it’s one of the most important.

When writing a business plan, you need to review your short- and long-term financial projections. This is essentially an estimate of how much money you expect to spend and make over the course of the next few years. 

The goal is to show that you’ll have a profitable business. And if not, it allows you to tweak your business strategy so you can create a financial plan that you feel comfortable with.

Free salon business plan template

Need some help getting started? 

We’ve put together a free template that covers all the basics. Use this as a starting point, so you know that your business plan is comprehensive and includes everything you need ahead of opening day.

Download your free salon business plan template here.

Business tools as sharp as your shearing scissors

Once you have a salon business plan, it’s time to make a plan for hiring and managing your employees. Homebase is the all-in-one employee management tool loved by 100,000 + salons and small businesses. 

With Homebase, you can:

• Schedule employees for your salon in just a few clicks.
• Track employee hours and run payroll from one app.
• Stay on top of employee compliance and labor laws with expert HR guidance.

Salon business plan FAQs

Why should you create a business plan for your salon even if you aren’t looking for financing.

A business plan is more than just a document to help you secure financing for your salon business. It can help you organize your business strategy and outline the steps needed to reach your business goals.

What is the best way to create your salon business plan?

The best way to create your salon business plan is by following these steps:

• Write an effective executive summary.
• Create a company overview and description.
• Conduct a thorough market analysis.
• Outline your services and business offerings.
• Decide how you want to manage your salon business.
• Make a plan for marketing your business.
• Put together your financial projections.

You can also use our free salon business plan template to get started.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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BUSINESS STRATEGIES

How to create a hair salon business plan

• Nirit Braun
• Sep 12, 2023

When setting up your own hair salon, one of the most important initial steps is crafting a well-thought-out and detailed business plan. Consider it your styling guide for success in the hair and beauty industry. This document isn't just about the right cut and color it's your roadmap to achieving your salon's objectives, whether you specialize in trendy haircuts, stunning makeovers or relaxing spa treatments.

Your hair salon business plan will help you navigate the ever-evolving world of starting a beauty business , helping you start a business with confidence.

Ready to kick things off? Begin making a website with Wix .

Benefits of a hair salon business plan

A well-structured business plan is vital for a number of reasons. Below is a breakdown of the top benefits for you to bear in mind.

Getting investors interested: Your well-thought-out business plan isn't just for show; it's what can help you woo investors and raise money for your business . It shows them you've got a plan, clear goals and a vision for profitability. In other words, it makes them more likely to open their wallets and invest in your salon dream.

Figuring out what you need: Writing a business plan forces you to think about everything you'll need to run your salon smoothly—from supplies and equipment to staff. By the end, you'll have a good handle on your startup and operating costs. Don't forget to factor into this the cost of opening a business, starting an LLC for example.

Drawing up your game plan : Think of your business plan as your playbook for success. It lays out the steps to make your salon thrive, helps you set achievable goals and gives you a roadmap for reaching them. Plus, it's got your back when it comes to handling challenges, with strategies to tackle whatever comes your way.

Outshining the competition : While creating your plan, you'll dive deep into your salon's market and competitors. That research helps you understand your customers, spot industry trends and figure out how to stand out from the competition.

Running a smooth ship : Your business plan isn't just about the big picture—it's also about the nitty-gritty details. It helps you plan things like where your salon should be located, how it should look, what equipment to get and how to manage your staff effectively.

Playing it safe: In the financial part of your plan, you'll lay out your salon's expected income, expenses, and profits. This not only helps you see if your business will make money but also prepares you to make smart financial decisions. Plus, it's your insurance against unexpected bumps in the road.

Read more about how to start a service business .

6 steps to creating a hair salon business plan

Let's dissect the key components of a hair salon business plan:

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

The executive summary is a concise overview of your entire hair salon business plan. It provides a snapshot of your business concept, strategies, financial projections and objectives. While it appears at the beginning of the plan, it's often written after the rest of the plan is complete to ensure all crucial details are included.

To write a clear executive summary for a hair salon business be sure to introduce your hair salon, detailing the services you offer and the unique value proposition that sets you apart in the industry. Then clearly state your short-term and long-term business goals. These should be specific, measurable, achievable, relevant and time-bound (SMART).

Remember to highlight what differentiates your hair salon from competitors, whether it's your exceptional stylists, innovative services or a specific niche you cater to. Als, provide a brief overview of the target market you're aiming to serve and the market demand for your services.

Offer a glimpse of your projected financials, including expected revenue, expenses and profitability within a specified timeframe. Additionally, include how much investment you're seeking or have secured to launch and grow your hair salon business.

Example of an executive summary for a hair salon business

"EleganceTresses Salon is poised to transform the hair care experience in the city. With a mission to blend style and artistry, we offer a range of premium hairstyling and beauty services that cater to a diverse clientele. Our SMART objectives include becoming the go-to destination for modern hair transformations, increasing customer retention by 20% in the first year and expanding our salon footprint to two additional locations within three years. What sets us apart is our team of master stylists, led by industry veterans with over 15 years of combined experience. We're seeking an initial investment of $250,000 to support salon setup, staff training and salon marketing initiatives . Our projected revenue of $500,000 in the first year, coupled with strategic partnerships, positions EleganceTresses Salon for rapid growth and profitability."

02. Business and domain names

Naming your business is crucial, as it will become an integral part of your brand identity. A memorable and relevant name enhances brand recognition and establishes trust with your customers. A business name generator can provide inspiration for a beauty business name that resonates with your salon's concept and values.

For more inspiration:

Nail business names

Beauty business name ideas

Selecting and registering a suitable domain name is equally important. Ensure your domain name aligns with your salon's name or services as this consistency makes it easier for customers to find you online.

Opt for a domain name that is simple to spell and remember and avoid using complex words or excessive characters. As part of this, if feasible, incorporate relevant keywords in your domain name to improve search engine visibility. Finally, check domain registration platforms to confirm your chosen domain name's availability.

Learn more about registering your business , which you’ll want to do once you’ve landed on a business name and a legal structure.

03. Market analysis and research

The market analysis and research section of a business plan is essential for understanding the competitive landscape and consumer preferences in the hair salon industry. This information forms the foundation of your business strategy.

Define your target audience based on demographics, lifestyles and hair care preferences.

Evaluate competing salons' offerings, pricing, location and customer reviews to identify gaps and opportunities.

Research industry trends, emerging styles and customer demands to align your beauty business ideas and services with current market expectations.

04. Operations plan

The operations plan details the practical aspects of running your hair salon. It covers location selection, salon design, equipment procurement and staffing.

Location: Describe how you'll choose a high-traffic, accessible location that caters to your target audience.

Interior design: Highlight your salon's ambiance, decor and layout to create a welcoming and appealing environment.

Equipment: Specify the types of equipment and products you'll use to provide top-notch services.

Staffing: Detail your staffing needs, including hairstylists, receptionists and other support roles and outline their qualifications.

Operation plans example:

"Our salon will be strategically situated in a bustling shopping district, attracting both locals and tourists. The interior design will exude contemporary elegance, featuring comfortable seating, modern decor and ample natural light. We'll invest in premium hairstyling equipment and a range of high-quality products to ensure exceptional services. Our staff will consist of experienced stylists specializing in diverse hair types and styles."

05. Marketing and advertising plan

The marketing and advertising plan outlines how you'll promote your hair salon, attract customers and build brand recognition. This can include marketing campaigns tailored to different customer segments, such as bridal packages, seasonal promotions or loyalty programs. Be sure to highlight how you'll use social media, a business website (be inspired by these salon web design examples ) and online advertising to engage with customers and showcase your services.

Example of a marketing plan

"Our marketing strategy entails a mix of social media engagement and influencer partnerships. We'll leverage platforms like Instagram and Pinterest to showcase before-and-after transformations, share hairstyling tips and engage with our audience. Collaborating with local boutiques for joint promotions will enhance our visibility while offering special packages for bridal parties will establish us as a bridal hair expert."

Need some help building up your brand? Get inspiration from these beauty logo ideas and use Wix’s free logo maker to create your own, plus check out this guide on how to make a barber logo .

06. Financial plan

The financial plan section of your business plan provides insights into the financial aspects of your hair salon business. It will need to include a rundown of your initial expenses such as salon setup, equipment purchase, interior decor and initial marketing efforts.

After this, you'll need to estimate projected revenue based on services offered, pricing and anticipated customer volume. At the same time, document ongoing costs, including rent, utilities, staffing salaries, product replenishment and marketing expenditures.

Then lay out the initial investment you'll need and potential sources of funding, such as personal savings, loans or investors.

It’s also important to project when your hair salon is expected to become profitable based on revenue growth and expense management.

Example of a financial plan

"Startup costs are estimated at $120,000, covering salon setup, equipment and marketing campaigns. We project an annual revenue of $300,000 within the first year, with a steady increase of 15% in subsequent years. Operating expenses, including rent, staff salaries and product inventory, are projected at $180,000 annually. We anticipate becoming profitable by the end of Year 2."

Got another business idea in mind?

Still trying to decide on the best type of business to pursue? Check out the guides below and read about more service business ideas .

How to start a nail business

How to start an online business

How to start a consulting business

How to start a fitness business

How to start a fitness clothing line

How to start a makeup line

How to start a candle business

How to start a clothing business

How to start an online boutique

How to start a T-shirt business

How to start a jewelry business

How to start a subscription box business

How to start a beauty business

How to start a trucking business

How to start a construction business

How to start a landscaping business

How to start a food business

How to start a food prep business

How to start a vending machine business

How to start a contractor business

How to start a virtual assistant business

How to start a homecare business

How to start a coaching business

How to start a handyman business

Check out more service business examples

Want to create another type of business plan?

How to create a tutoring business plan

How to create a party planning business plan

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JD enjoys teaching people how to use ZoomShift to save time spent on scheduling. He’s curious, likes learning new things everyday and playing the guitar (although it’s a work in progress).

• Jan 09, 2024

How To Create A Hair Salon Business Plan in 2024 (with Template)

Starting any kind of business comes with inherent risks.

Many fail in the first year due to mismanagement of finances, lack of brand awareness, or for shifts in the market.

If you’re going to pick a business to get into, it’s never a bad time to open a hair salon . In 2018, hair salons brought in over 46 billion dollars in revenue in the United States. That’s a little less than the entire GDP of the country of Costa Rica.

Needless to say, there’s a lot of opportunity in the hair salon industry. If you’re ready to grab your piece of that 46 billion dollar pie, then you’re going to need a business plan.

Here’s a complete guide to creating a business plan for your new hair salon:

Step-By-Step Instructions to Writing Your Hair Salon Business Plan

A business plan is a crucial step to starting any business. Creating one is an opportunity to put your thoughts, ideas, and goals down on paper and mold them into something more tangible.

Creating a business plan might feel like a daunting task, but it doesn’t have to be if you break it down into smaller steps like these:

1. Write your executive summary

The executive summary is the first page of your business plan and acts as a first impression. Get it right, and people will dig in with enthusiasm. Get it wrong, and you may not get a fighting chance.

At its core, the executive summary elaborates on the focus of your business. It tries to sum everything in a page or less. At a minimum, it’ll include:

• Mission statement
• Ownership structure
• Product and service descriptions
• Business plan summary

In plain terms, it says what you hope to achieve, who’s involved, what makes your salon unique, and what value you’ll bring to your customers.

2. Company description

It may feel like you’re repeating yourself from here on out, and you will be to a degree, but it’ll be to bring context to all the details that will follow. You’ll be reiterating the points from your executive summary, but further elaborate to give the reader the juicy details.

With the company description, you’re wanting to provide a snapshot of what people would see if they walked into your salon. You’ll offer up some crucial details like the registered name of the business, history of the company, name of key employees, and your location. In addition, you’ll answer some important questions such as:

• Are you explicitly cutting hair? Or are you offering hairstyling services as well?
• How about conditioning treatments, blowouts, and hair extensions?
• Will you stop at head hair, or will you offer waxing, eyelash, and eyebrow treatments as well?
• How about products? Will you sell your styling creams, sprays, and shampoo?

Again, the more detail here, the better because you’re trying to sell an image of the salon at its best.

3. Business goals

Every company, big or small, should have goals. Ideally, they should be specific goals. SMART goals even. SMART stands for specific, measurable, attainable, relevant, and time-bound. A SMART goal for opening and running a hair salon might be:

“ Host a grand opening event over the July 4th weekend that adds 150 people to our email newsletter.”

That’s a short-term goal that’s specific and measurable because you’re measuring email captures. It’s time-bound because of the July 4th date, and it’s relevant and attainable because it helps with marketing efforts and isn’t a farfetched number like 10,000 sign-ups on an open weekend.

In the business goals section, you’ll want to spell out what you’d like to accomplish in the near term and in the long term as well. If you’re seeking investor capital or outside funding, you’ll also explain what exactly you need the money for and how and when you’ll plan to recuperate those funds. This could include expanding locations or service offerings, for example.

4. Business management structure

This one is a bit more straightforward because it’s black and white. Your business management structure is something you’ll likely set and forget since it won’t change much. Here, you’ll add a breakdown of who the owners are, what experience they have in the industry, and what legal structure you’ve adopted (LLC, S Corp, etc.).

You’ll also want to outline how many employees you’ll have to start, ownership percentages, and the duties and responsibilities of each role. Getting this sorted out is not only good for investors, but for you as well since it’s possible you’ll have disputes over these decisions later.

5. Product and service offering

In the previous steps, you’ve alluded to what makes you unique and what services you’ll offer, but now it’s time to get even more detailed. It’s not enough to say you’ll offer blowouts, hair coloring, and sell hair products. Tons of salons do that. You want to impress people with how you’ll differentiate yourself.

To illustrate the point, here are some ways a salon could differentiate itself:

• Using all homemade organic products that you can’t find anywhere else
• Bringing in wine from a local vineyard to offer for free to salon patrons
• Offering same-day in-home appointments
• Providing free headshots with all appointments

The possibilities are truly endless. Here’s also where you’ll get into pricing, profit margins, and how you’ll receive and possibly distribute the products you’ll use at your salon.

6. Marketing plan

With a new salon, you’ve got to get the word out as soon as possible to bring customers in. Your marketing plan will explain exactly how you’ll build brand awareness. It may even talk about your grand opening.

You’ll need a section on how you’ll develop customer loyalty as well. Will you leverage mailing lists? How about frequent buyer incentives? The more concrete your marketing plan, the more confidence you’ll gain from investors, banks, and employees.

7. Business financials

A good hair salon business plan will provide all the numbers you need to ensure you have the runway to launch and sustain operations while bringing in new customers. It’ll show investors the starting financial health of your business and how you plan to reinvest funds back into the business and repay debts.

Here, you’ll include net profit margins, current liquidity, and accounts receivable turnover ratios . Those specifically tell investors how much profit you’ll keep, how easily you’ll be able to repay debts, and how often you’ll collect on your own debts.

8. Future financial projections

Your goals would ideally be aggressive, but realistic. While you may not create more business plans for your salon, you’ll want to keep up with creating monthly and quarterly financial reports.

They’ll outline expenses, revenue, profit, and provide confidence to your leaders and your investors that things are on track.

9. Appendix

Last, but not least, you’ll include an appendix section for the stuff that doesn’t fit elsewhere. For a salon, this could mean licenses, permit history, contracts, leases, resumes for key employees, credit history, and anything else that comes to mind.

Starting a salon is an exciting adventure that’ll be filled with both ups and downs. The ups will come and go, but being prepared for the down moments is important. That’s where a business plan comes in handy.

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Related articles.

Hair salon business plan: a complete guide

Learn how to build a hair salon business plan, from budgeting to deciding upon your ideal client, logo, and more.

Table of contents

If you landed on this page, you are likely about to start your journey as a new hair salon owner. We welcome you, dear beauty entrepreneur, to the world of cash flow statement, market analysis, business management, and marketing strategy.

Having your own salon is a wild ride, and we at Appointible want to help you start on the right foot (aka, beauty salon business plan).

In today’s article, we will present a hair salon business plan outline, from defining your services to growing a healthy business.

We also support the idea that a beauty salon business plan should be rich but straightforward enough that salon owners can see clear, actionable steps; thus, we include things like tools and resources and leave others out, such as an executive summary.

Step 1: Define your hair salon services

The first step in building a business plan for your salon starts with defining your services. You may already have an idea of the hairstyles and services you want to offer, but it’s essential to consider some critical factors before finalizing your offerings.

Some of these factors are easy to understand, while others may require more attention, so in this section of the article, we will go through each of them.

List what you know how to do (and what you don’t)

Start by creating a list of all the hair styling services you can provide. List what hair-cutting styles and hair-care services you can perform. Consider all your certifications, work experience, and others to build your list.

Then, list the hair and beauty services that you lack the knowledge to perform. It can be that you miss the required qualifications or is just out of practice; either way, list them as things you can’t offer at your new salon.

If there are gaps in your knowledge that you want to cover, mark them distinctively, as we will come back to courses, training, and certifications later in this article.

Decide if you will hire employees.

Deciding whether you will hire employees – and how many – depends on your budget as much as on your business goals. We already discussed in Appointible  how to assess if you need to hire employees  for your salon business, so be sure to check that one out.

Nonetheless, a more minor salon may only require a couple of employees, such as a stylist or assistant. In contrast, a larger hair salon business may need a bigger team to manage multiple services, as well as tasks such as cleaning, reception, and marketing.

Take a peak at competitor salons.

When it comes to listing your hair salon services, your local competition is a great place to start. Start by analyzing what different hair cutting, hair care, and beauty services the competition offers, as it will give you an idea of what the local market expects from a hair salon.

This step of your beauty salon business plan should start from your immediate competition – neighborhood or city – but not leave out important salons from other parts of the state or country.

Keep up with industry trends.

It’s crucial to stay up-to-date with the latest trends in the hair industry to give your salon a competitive advantage. Following trends not only ensure that your business remains relevant but it also helps attract and retain clients.

Consider subscribing to trade magazines and blogs that cover the latest news and developments in the hair industry. This comprehensive list of beauty blogs ( https://bloggingtips.com/best-beauty-blogs/ ) from Blogging Tips gives an idea of where to start. Attending conferences, trade shows, and workshops is also an excellent way to learn from other professionals and get insights into the newest techniques, products, and services.

This knowledge can help you tailor your offerings to meet the changing demands and preferences of your clientele.

Why Appointible?

• Simple booking website
• Unlimited appointments and storage
• Run a multi-location business
• Available in English, Spanish and French
• SMS & email reminders
• Access from any device

Step 2: Create a detailed financial plan

Now that you have a clear idea of your target market, what services you will provide, and a general idea of at what price point, it is time to start building a financial plan for your hair salon.

Needless to say, you will need much more than a business bank account and card to call it a day and claim you have a financial plan in place. Let’s see in this step of the article how to effectively create a solid financial plan for your hair salon business.

A: Calculate your beauty salon budget

As we discussed previously in the article  top 10 habits of successful businesses , a budget is telling your money where to go instead of wondering where it went. This mentality of always being equipped with a proper budget will go a long way on your road to success.

Here are some of the budget lines you might consider when you write a business plan.

For courses and certifications

Earlier in this article, we had you write all the hair services you feel confident (or have the certification for) providing, as well as identify the gaps in your knowledge and what courses and learning paths you should take.

This is the moment of your salon business plan where your list of services and connect them to what courses and certifications you will need to invest in – whether for you or for employees.

Pro tip: plan ahead and save some recurring budget for learning for you, your stylists, and even your management team – some courses can be related to marketing, productivity, or other admin-related fields.

For a Hair salon business license

All legal business entities must have their respective licenses. Business licenses need to be paid and applied for, so the best way to deal with it is to contact a professional specialized in the beauty salon industry or approach the competent local chamber and institutions.

As licenses vary depending on location and specific services you offer, we can’t provide an exact figure. Prepare a budget line for an expense of around $500.

For Utilities and rent

Another important budget line for a hair salon business plan is the cost of utilities and rent. Rent will likely be your largest recurring expense, so it’s important to budget accordingly. You should research the average rent costs in your area and factor that into your budget, but you can expect to pay around $1000 to $2000 on rent alone.

Additionally, you’ll need to consider the cost of utilities such as electricity, water, and gas. To save on utility costs, consider investing in energy-efficient appliances and lighting and making sure your space is well-insulated. You wouldn’t believe how much these savings slowly add up in your finances.

For Hair salon equipment and supplies

You’ll need to purchase equipment such as chairs, styling stations, hair dryers, and shampoo bowls, as well as supplies such as hair products, towels, and cleaning items. Create a list of all the salon equipment and supplies you will need, and then run market research.

Ideally, run a search on wholesale beauty e-commerce, such as www.salonwholesale.com . Alternatively, network with a local community of hair stylists and salons to get an idea of there are local suppliers that offer more competitive prices.

For marketing efforts

Marketing is a crucial aspect of any successful business, including a hair salon. It’s important to allocate a budget for marketing efforts to reach prospective customers as well as retain existing clients. Think of social media, website development, ads in local outlets, etc.

To save on marketing costs, consider using free marketing channels such as social media and email marketing. You can also create your own marketing materials using free online design tools such as Canva.com or Visme.co .

For Hiring hair stylists

If you plan to hire hair stylists for your salon, you’ll need to factor in the cost of hiring and onboarding new employees. This can include expenses such as job postings, recruiting fees, and training costs.

When budgeting for hiring, consider the average salary and benefits for hair stylists in your area. You may also want to factor in the cost of providing employee benefits such as health insurance and paid time off.

To save on hiring costs, consider using free job posting websites or social media to advertise open positions. You can also offer referral bonuses to current employees to incentivize them to refer qualified candidates.

It’s important to have a clear understanding of your staffing needs and to create a hiring plan that aligns with your business goals. This will help you avoid overstaffing or understaffing your salon and ensure that you have the right team in place to provide high-quality services to your clients.

B: Calculate your rates and prices

Once you have a clear understanding of your salon’s expenses, it’s important to calculate your rates and prices in order to generate revenue and make a profit.

When setting your rates and prices, consider factors such as your expenses, your target audience, and your competitors’ pricing. You should also consider the value of your services and the quality of your customer experience.

Here are some steps you can take to calculate your rates and prices:

Run a break-even analysis: This is the point at which your salon’s revenue covers your expenses. To calculate your break-even point, divide your total expenses by the number of services you expect to provide each month.

Research your competitors’ pricing: Research the pricing of other salons in your area that offer similar services. This will give you a sense of the market rate for your services.

Set your prices: Once you’ve determined your break-even point and researched your competitors’ pricing, you can set your prices. Consider pricing your services slightly above the market rate to reflect the quality of your salon and the value of your services.

Review and adjust your pricing: It’s important to regularly review your pricing to ensure that it aligns with your expenses and your business goals. You may need to adjust your pricing over time as your expenses or market conditions change.

Step 3: Build your brand and target market

Building a strong brand is essential for any successful hair salon business. A strong brand helps to create a loyal customer base and can differentiate your salon from competitors. Here are some steps you can take to build your brand and target market.

Define a good mission statement.

A mission statement is a clear and concise statement that defines the purpose and values of your salon. It should communicate the core values of your salon and what makes it unique.

To create a good mission statement, ask yourself the following questions:

What do you want to achieve with your salon?

What values do you want to communicate to your customers?

What makes your salon unique?

Once you have answered these questions, you can use them to create a clear and concise mission statement that reflects your salon’s values and purpose.

Define your hair salon’s ideal clients.

Defining your ideal clients is an important step in building your brand and targeting your marketing efforts. Knowing your ideal clients helps you to tailor your services and marketing messages to their needs and preferences.

To define your ideal clients, consider factors such as age, gender, income level, and lifestyle. You can also consider the types of services and products that your ideal clients are likely to be interested in.

With a defined ideal client, you can create marketing messages and promotions that resonate with them and attract them to your salon.

Define your hair salon’s name.

Choosing a name for your hair salon is a vital part of brand-building – so much so that we wrote an entire article on  picking a name for your hair salon . In short, your salon name should be memorable and reflect your salon’s values and purpose.

When choosing a name, consider factors such as: What do you want your salon name to communicate to your customers? Is the name easy to remember and pronounce? Is the name available as a domain name and social media handles?

We highly advise you to read through the article above, as you will surely come out with a name fit for successful businesses.

Step 4: Pick your salon location

Location is the most important aspect of any real estate deal, whether you are renting a place for your new business or buying a house.

Choosing the right location for your hair salon is crucial to the success of your business. Here are some steps to help you pick the perfect location:

Understand the local market and competition.

Researching the local market and competition will help you understand the demand for beauty services in the area and identify potential competitors.

Consider factors such as population demographics, income levels, and the proximity of other hair salons. Look for gaps in the market that your salon can fill or areas where you can differentiate yourself from the competition.

Pick a location with your target clients in mind.

Time to refer to the part of your beauty salon business plan where you defined your ideal client. Look for a location that is easily accessible and convenient for your target clients. For example, if your target clients are busy professionals, you may want to choose a location near office buildings or shopping centers.

Align with your brand.

Your salon location should align with your brand and communicate the values and personality of your salon. For example, if your salon is focused on eco-friendly and sustainable practices, you may want to choose a location that is environmentally friendly or close to parks and nature reserves.

Choose the right salon size.

Choosing the venue size is another make-or-break point when it comes to location. Consider factors such as the number of chairs you need, the size of your waiting area, and the size of your backroom for storage and supplies. A larger salon may allow you to accommodate more clients, but it may also come with higher overhead costs, as well as potentially looking “empty.”

Ultimately, choosing the right location for your salon requires careful research and consideration. Take the time to evaluate your options and choose a location that will help your salon thrive.

Step 5: Craft a marketing plan for your hair salon

A well-crafted marketing plan is essential to help you promote your hair salon, increase service sales, and keep existing customers coming back. Here are some tips to help you create an effective marketing plan.

Share your work online.

We could name this section “create a social media presence.” However, if there is one thing you should be working on systematically in social media is sharing your work. Yes, indeed, you would also benefit from a website, but social media is hands down the best place to show actual clients hair cuts and their feedback.

Share before and after photos, and short videos of the end result of a client’s hairstyle, ask for 5-star reviews, and more. Aim to share your work at least every second day on social media.

Continuously launch new promos.

Offering promotions and discounts is a great way to attract new customers and encourage existing ones to come back. Consider launching different types of promotions, such as referral discounts, seasonal discounts, or loyalty programs.

Keep your promotions fresh and exciting to encourage repeat business. For example, offer a discount on new services or products you introduce or host a giveaway for a free hair care package.

Build a text message marketing routine.

Text message marketing is an effective way to communicate with your customers and keep them informed about promotions, new services, and other updates. Collect your customers’ phone numbers and build a text message list to reach out to them.

Send regular updates to your text message list, but be sure not to overdo it. Limit the frequency of your messages and offer valuable content such as special promotions or early access to new services.

Step 6: Pick a dedicated booking system

Choosing the right booking system is essential for running a successful hair salon. So much so that we dedicated an entire step in your salon business plan to it; a reliable booking system can streamline your operations, help you manage appointments, and keep your clients happy.

Pen and paper can only do so much for your salon business, and free services, such as Google Calendar, are simply not fit for the job. Here are some of the things you will get to do once you pick an online appointment scheduling software for your hair salon:

You will receive appointments 24/7

With appointment scheduling software, you can get clients any time of the day, any day of the week. Working hours will become a thing of the past when it comes to selling your services.

You will boost your marketing strategy.

An appointment scheduling software can help you integrate your marketing efforts seamlessly. With automated emails and SMS reminders, you can promote your services, offer discounts, and send personalized messages to your clients. This way, you can stay top-of-mind with your customers and ensure that they keep coming back to your salon.

You will reduce the admin workload

Gone are the days of answering endless phone calls, jotting down appointments, and dealing with booking conflicts. With an online booking system, you can automate your scheduling process, send automatic appointment reminders, ask for confirmations, and more, freeing up time to focus on growing your business.

You will seamlessly manage your staff.

With a booking system, you can assign staff members to specific services, manage their work hours, and monitor their performance. You can also give your stylists access to their own calendars, which will allow them to see their schedules and manage their bookings.

An appointment scheduling software for salons looking to grow in 2023

Appointible is a powerful appointment scheduling software that is specifically designed for the hair and beauty industry. With Appointible, you can manage your salon’s bookings, staff schedules, and customer data all in one place. Appointible offers a range of features, including online booking, automated reminders, staff management tools, and an analytics dashboard, to help you streamline your salon’s operations and grow your business.

Create a free account with Appointible  and elevate your salon business plan.

Step 7: Your salon’s growth

If you followed the previous steps correctly, your hair salon is now up and running smoothly. However, you may wonder how to keep your salon growing and thriving in the competitive market. That’s why we dedicated this section to showing you the different paths for salon growth.

Horizontal salon growth

One way to grow your salon business is through horizontal growth. This means expanding your services, hiring more stylists, opening new locations, and so on. If you plan to expand horizontally, it’s important to reflect that in your branding and salon size from the outset.

For example, if you plan to have a bigger salon and offer more services, invest in the necessary equipment and create a marketing plan to attract new customers. This way, you can make sure your salon is ready for growth when the time comes.

Vertical salon growth

Another way to grow your salon is through vertical growth. This means specializing in a select number of services and aiming to become the best in the industry. By focusing on quality over quantity, you can charge higher prices and keep payroll, supplies, and overhead costs to a minimum.

To achieve vertical growth, you need to build a strong reputation and brand identity around your specialty services. This might include targeted marketing campaigns, creating a niche social media presence, and offering exceptional customer service.

No matter which growth path you choose, it’s important to research your options, plan carefully and stay up-to-date with the regulations in your area. Continuously review your efforts and tweak your strategies as needed to ensure your salon continues to grow and succeed.

We hope this article has been helpful in guiding you through the steps of opening and growing a successful hair salon business. Remember to stay dedicated, maintain a strong brand, and always put your customers first. Good luck in your journey to success!

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How to write a business plan for your hair salon.

Starting a hair salon is a great way to be your own boss and make a living doing something you love.

It also offers potential for growth and diversification, allowing you to add additional services or products to your business.

But, before launching anything, make sure you have a business plan in place.

A business plan is an essential tool for any new project, and a hair salon is no exception. Writing a business plan will help to ensure that the project is well-thought-out and has a clear roadmap for success.

In short, a thorough business plan will help make sure your hair salon is profitable .

What should you consider when writing a business plan for a hair salon? What should be the main focus areas? What are the important financial ratios to consider? How can I speed up the process of developing an efficient business plan?

Please, find comprehensive answers to all these questions below.

Additionally, it's worth noting that you have the option to avoid starting your business plan from scratch.

Instead, you can download our business plan for a hair salon and adapt it to your project.

Creating a business plan for a hair salon

Will a business plan be beneficial for your hair salon.

Yes, you should create a business plan to ensure the success of your hair salon.

Developing a robust business plan will enable you to:

• learn about the hair salon market
• be aware of new consumertrends and apply them to your project
• identify factors for viability in a hair salon
• understand the latest hair trends, styling preferences, and customer expectations in salon services
• find a great unique value proposition for your hairstyling salon
• investigate competitor customer retention strategies
• find competitive advantages for your hair salon
• find a business model that delivers consistent positive financial outcomes
• establish and execute a solid and strategic action plan for long-term success
• evaluate potential risks specific to a hair salon, including customer satisfaction, employee training, and product safety

Our team has drafted a business plan for a hair salon that is designed to make it easier for you to achieve all the elements listed.

How to outline a business plan for a hair salon?

Your business plan will include a wide range of numbers and valuable information. It must be presented in a structured format, to make easy to read and digest.

When we built our business plan for a hair salon , we took care to arrange it appropriately.

There are 5 parts within the business plan.

1. Market Opportunity

The introductory section has been named "Market Opportunity".

Our team has gathered essential information and metrics about the hair salon, providing valuable insights for entrepreneurs in this industry.

The data here is always kept current; we update it biannually.

2. Project Presentation

The "Project" section provides an opportunity to describe your hair salon, specifying the range of hair services you offer (cut, color, styling), specialized treatments, talented stylists, haircare products, salon ambiance, and the unique value proposition that guarantees exceptional hairstyling and customer satisfaction.

Remember to introduce yourself at the end of this section.

Discuss your passion for hairstyling, your expertise in hair trends and techniques, and how you plan to create a personalized and transformative hair salon experience for clients. Highlight your range of services, your skilled stylists, and your dedication to providing individualized consultations and exceptional customer service that leaves clients feeling confident, stylish, and satisfied at your hair salon.

We prepared text in our business plan. Customize it to suit your idea.

3. Market Research

Moving on, there's the "Market Research" section.

In this section, you will find a market segmentation analysis for your hair salon.

It includes a study of other hair salons in the area that will be competing with you. Your salon's unique hair services and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

The "Strategy" section outlines a comprehensive 3-year action plan, detailing the initiatives and steps needed to transform your hair salon into a highly profitable endeavor.

Furthermore, this section encompasses a comprehensive marketing plan, a strategy to mitigate risks, and a completed Business Model Canvas.

5. Finances

In the end, the section titled "Finances" is where you can present the financial plan and breakdown for your project.

How to write the Executive Summary for a hair salon?

The Executive Summary gives a summarized glimpse into the business plan of your hair salon.

Keep it brief, not going over 2 pages. Highlight the essential points.

When you share your business plan with an investor, this is the part they will read at the beginning. It should grab their interest and make them want to read the rest of the plan.

In the Executive Summary of your hair salon, address the following queries: what services does your hair salon offer? who is your target audience? are there other hair salons in the area? what makes your salon unique? what funding do you need?

How to do the market analysis for a hair salon?

Analyzing the market for your hair salon allows you to gain insights into factors such as customer preferences for hairstyling and haircare services, competition from other salons, and emerging trends in hair fashion.

By conducting a comprehensive market study, a hair salon can identify customer preferences, offer a range of hair services, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased appointments, and a prominent position in the local hair care industry.

Here's what we've incorporated into the "Market Research" section of our business plan for a hair salon :

• fresh and updated data and statistics about the hair salon industry, including popular hairstyles, hair care trends, and customer preferences
• a list of potential market segments for a hair salon
• the competitor analysis
• the competitive advantages to target for a hair salon

The key points of the business plan for a hair salon

What's the business model of a hair salon, business model of a hair salon.

A hair salon's model revolves around providing various hair care services, including haircuts, styling, coloring, or treatments. Revenue is generated through service fees, potentially offering retail hair products or additional beauty services.

The business model focuses on employing skilled hair stylists, providing personalized consultations, using quality hair products, creating a welcoming and trendy salon environment, and building strong client relationships through exceptional service and hairstyling expertise.

Success depends on stylists' talent and creativity, effective marketing to target individuals seeking hair services, maintaining industry trends and techniques, fostering positive client reviews and referrals, and providing a satisfying and rejuvenating salon experience.

Business model ≠ Business plan

Be clear on the distinction between "business plan" and "business model."

A business model is a blueprint for how a company operates and makes money.

In a business plan, you use the Business Model Canvas as a visual aid to explain the inner workings of your business.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a hair salon .

How do you identify the market segments of a hair salon?

Market segmentation for your hair salon involves dividing your potential customers into different groups based on their haircare needs, preferences, and demographics.

These categories may include factors such as haircuts and styling, coloring and highlights, extensions, or customers seeking specific hair treatments (e.g., keratin treatments, scalp treatments).

By segmenting your market, you can offer a range of hair services and solutions that cater to each segment's specific requirements. For example, you might provide a variety of haircut and styling options for customers seeking trendy or classic looks, offer professional hair coloring and highlighting services for customers looking to enhance their hair color, specialize in hair extensions and volumizing treatments, or provide specialized treatments for customers with specific hair concerns such as damaged hair, dry scalp, or frizz control.

Market segmentation allows you to effectively target your marketing efforts, showcase your hairstyling expertise, and deliver personalized and satisfying hair services that meet the unique needs and preferences of each customer segment.

In the business plan for a hair salon , you will get a detailed market segmentation, helping you understand your target audiences and their needs.

How to conduct a competitor analysis for a hair salon?

Without surprise, you won't be the only hair salon in your city. There will be other establishments offering hair styling, cutting, and coloring services to customers.

Your business plan must incorporate a thorough examination of your competitors, including their characteristics, strengths, and weaknesses.

Pay attention to their weaknesses (such as inexperienced stylists, lack of trending hairstyles, or poor customer satisfaction).

Why is it crucial to notice these aspects? Because these weaknesses can impact the client experience at hair salons. By addressing these elements, you can provide a wide range of hair services and treatments, offer skilled and creative stylists, and create a welcoming and stylish salon environment, establishing your hair salon as a preferred choice for hair care and styling needs.

It's what we call competitive advantages—work on developing them for a distinct business identity.

Here are some examples of competitive advantages for a beauty salon: skilled and experienced stylists, wide range of beauty services, relaxing and luxurious ambiance.

How to draft a SWOT analysis for a beauty salon?

A SWOT analysis can help identify potential strengths, weaknesses, opportunities, and threats that may affect the success of a hair salon.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a hair salon

The strengths for a hair salon

The letter "S" in SWOT signifies Strengths, highlighting the project's internal advantages or positive features.

For a hair salon, potential strengths include excellent customer service, a wide range of services, experienced staff, and attractive pricing.

The weaknesses for a hair salon

The "W" stands for Weaknesses, referring to the areas or aspects of the project that need to be addressed.

For a hair salon, potential weaknesses could include lack of repeat customers, limited marketing budget, lack of online presence, and lack of staff training.

The opportunities for a hair salon

O represents Opportunities in SWOT, referring to the external factors or conditions that can create opportunities for the project's advancement.

In the case of a hair salon, potential opportunities may include offering online booking services, expanding into new markets, providing additional services such as cosmetics and nail care, and advertising on social media.

The threats for a hair salon

The "T" in SWOT stands for Threats, which are external factors that may pose risks or challenges to the project's success.

How to outline a marketing strategy for a beauty salon?

A marketing strategy is a vital element of a business plan as it details how a business will attract customers and generate business.

A hair salon can attract clients in need of professional and trendy hairstyling services by implementing a targeted marketing plan that highlights the salon's skilled stylists and personalized approach.

Clients won't choose your beauty salon without effective marketing; showcasing your range of services, talented stylists, and relaxing atmosphere is crucial.

Are you implementing effective marketing strategies for your hair salon? Consider offering first-time client discounts or referral programs, showcasing trendy hairstyles or transformations on social media, and partnering with local fashion influencers for endorsements.

Don't fret if you lack ideas for your project's marketing strategy.

How to build a solid financial plan for a beauty salon?

A successful business plan must include detailed financial information, such as income and expense projections, cash flow statements, and a break-even analysis.

As you outline your business plan, you should include revenue projections for your hair salon.

The inclusion of a relevant and credible revenue forecast in your business plan adds credibility and enhances appeal to banks or investors.

Our financial plan for a hair salon is straightforward and equipped with automated checks, enabling you to validate and adjust your assumptions easily. This way, we make sure you're building solid financial projections.

Without a doubt, you'll need to come up with a basic budget for starting your hair salon. Make certain to include all expenses without exception - you can find them all listed in our financial plan!

The break-even analysis is a crucial tool in your financial plan, providing insight into whether your hair salon will become a profitable company or not.

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How to Write the Perfect Salon Business Plan in 6 Steps

Discover how to craft a winning salon business plan in just six steps! Boost your salon's success with expert tips, market analysis, and strategy insights.

No credit card required.

As a salon owner, having a well-thought-out business plan is essential to the success of your business. A salon business plan outlines your business goals, market analysis, marketing strategies, financial projections, and other key details, serving as a roadmap that guides you through the process of starting, running, and growing your salon. In this article, we’ll go over the key elements of a salon business plan and provide tips on how to write the best business plan for salons in 2023.

Try GlossGenius free for 14 days!

How much does it cost to run a salon .

Before you start writing a salon business plan, it’s important to get an idea of the startup and ongoing costs. As we discuss in this article , the costs of starting a salon range from $62,000 for an existing salon to $90,000 for a new operation. With some of the expenses, you’ll incur one-time costs – other expenses will be ongoing such as supplies and inventory. Here are some of the typical costs associated with starting a salon: 

Existing Salon 

When you buy an existing salon, be it a hair salon or nail salon, you save on the costs of buildout, salon equipment , and salon marketing, assuming the salon already has some of these elements in place. Here’s what you can expect to pay for the following:

• Rent deposit: $4,500
• Buyout of current salon: $10,500
• Leasehold improvements: $15,000
• Equipment: $10,000
• Initial supplies: $8,000
• Initial inventory: $4,000
• Certifications and licenses: $4,000
• Marketing: $5,000
• Legal or consulting fees: $1,000

Grand total: $62,000

The upfront costs of building out a brand-new salon, marketing it to local clients, and getting the business up and running will likely exceed those of buying an existing salon. Here are the typical expenses you can expect to incur for a new salon:

• Buyout of current salon: $0
• Leasehold improvements: $35,000
• Equipment: $25,000
• Marketing: $8,000

Grand total: $89,500

You may also want to budget for the following:

• If you need a loan or financing to cover startup costs, expect to pay interest rates of 1.25% to 10%.
• Salon insurance ranges from $50 to $1,000 per month.
• Salon booking software and a point of sale (POS) system range from free to $500 per month. GlossGenius starts at an industry-low $24 per month with low payment processing fees and includes a website, a branded card reader, and other extras.
• A salon website can cost you thousands, but with GlossGenius, it’s included free! Beautiful and customizable, your website is packed with scheduling features and is easy to navigate, helping to increase bookings and future appointments.

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How Profitable Is Owning a Salon?

If you owned a salon during the pandemic, no doubt you experienced your fair share of struggles between lockdowns, closures, and reduced business hours. According to Statista , the U.S. market size of beauty salons dropped from $69 billion in 2019 to $42.3 billion in 2020. Fortunately, things are beginning to look up for hair, skin, nail, and other types of salons, with the market valued at $53.6 billion as of 2022.

You can take advantage of the comeback by approaching your salon startup with a solid plan in place, a realistic budget, and a marketing strategy. A beauty salon business plan can help you identify any questions , opportunities, and potential roadblocks so you can have the best chances of getting funding, earning a return on your investment and achieving profitability. The more you control your expenses and market your business successfully, the more profitable you will be – so be sure to take your time creating a salon business plan for your needs.

6 Steps to Writing a Hair Salon Business Plan

The business plan is the most important document for any salon owner. It’s a formal, written plan that describes the future of your business and how you intend to achieve it. A good business plan will help you stay on track, get funding if you need it, and avoid costly mistakes as you navigate through choppy waters in this industry. 

We know what you’re thinking – that a business plan is a monster of a document that will take a ton of time to create. But, it doesn’t have to be. In fact, you can pare it down to one page and still have an effective, clear document that outlines everything you (and any other interested parties) need to know about your new salon. Below are six steps to writing a salon business plan that will ensure your success.

Here are six steps to creating your salon business plan:

• Create an Executive Summary
• Map Out Your Branding Vision
• Research Your Industry
• Create a Client Acquisition Strategy
• Management and Operations
• Financial Planning

Let's dive deeper into each one.

1. Create an Executive Summary

The executive summary is the first section of your business and management plan and provides a brief overview of your salon business. This section should include your mission statement , business objectives, target market, products and beauty services, and financial projections. It should be concise, engaging, and compelling to grab the attention of potential investors, lenders, or partners. It also serves to clarify your goals so you can come back to them anytime you need a refresher or wish to update this information.

Your executive summary is just that: a summary. This means you do not have to get into every detail in this section; you’ll provide a more complete analysis in the individual sections of your business plan. Here are some key elements to include in the executive summary:

• An opening “hook.” The first sentence or two of your executive summary needs to draw in the reader; otherwise, your business plan might not get the attention it deserves. Grab your audience’s attention by sharing a compelling fact about your company, a memorable story related to your industry, or some other well-crafted description of your business that will make your business plan stand out.
• Summary of your business. Describe what your company does, what services and products you will offer, who will run the company, and other high-level details.
• Market analysis. Briefly describe the market landscape for your own salon to show there is a proven need for your services. Be sure to address who your competitors are, any advantages you have compared with others, and any research you’ve conducted to demonstrate there is a demand for your services in the area. 
• Products and services. Highlight the specific services your salon will offer, any products you will sell, and any other information showing that your salon will fill the need you’ve described in your market analysis summary – and how you’ll do it better than the competition.
• Financial information and projections. Give your reader an overview of your business financials, including any current sales and profits, the funding amount you’re looking to acquire or any funding you already have, and your projections for growth.
• Future plans. Tell your reader exactly how you plan to use any funds you acquire and how their investment could pay off. Imagine where you want your business to be in a year, five years, and so on. Make it clear how funding will help you get there.

2. Map Out Your Branding Vision

Branding isn’t just about creating a unique identity for your business; it’s also about helping people connect with that identity and remember your name anytime they need your services. Branding helps both current clients and new customers recognize who you are and why they would want to seek out your salon. In your business plan, be sure to map out your branding vision by including:

• A description of your salon business. Describe who you are and what you do.
• Your mission and vision statement. Briefly summarize why your salon should exist, its primary objective, and how you plan to achieve your goals.
• An overview of your products and services, your pricing strategy, and any unique features or benefits that differentiate your salon from others in the market. Discuss the specific services you will offer and their price points, plus any product lines you will carry, such as hair care products, makeup, or skincare.
• A description of the target audience and customer demographics. Include relevant research on your market and the people who will buy what you’re offering.

3. Research Your Industry

This section should include a market analysis that provides an in-depth look at the salon industry, including trends, customer demographics, competition, and opportunities. It should also identify your target market and describe how you plan to reach them. This section should demonstrate your knowledge of the market and your ability to capitalize on it, with details on:

• The industry and trends. Provide an overview of the salon industry with relevant statistics, especially those that pertain to your area of expertise and geographic location.
• Your competition. Conduct a competitive analysis to gain insights into your competition, their marketing strategies, and the services and products they offer. The goal is to show how you will capture market share using stronger business strategies that set you apart from your competitors.
• Market segmentation. With market segmentation , you break down a larger target market into a smaller group of customers you plan to serve. Demographics such as age and income, geographic location, lifestyles or psychographics, and behavioral factors like price sensitivity or product loyalty are just a few approaches to market segmentation that you can consider for your business plan.
• SWOT analysis. The SWOT analysis is a way to assess your strengths, weaknesses, opportunities, and threats. It's an effective method for identifying your business strengths and weaknesses as well as external factors that may affect the success of your salon business.

4. Create a Client Acquisition Strategy

The client acquisition section of your salon business plan should describe how you plan to attract and retain customers as a hairstylist . It should outline your advertising and promotional strategies, such as social media marketing , SMS marketing , email marketing, and referral programs. This section should also discuss your sales strategy, including how you plan to increase sales and generate revenue.

• Description of marketing channels and tactics . Outline the different channels you will use to generate leads, such as social media, blog articles, emails, and text messages. 
• Sales forecasting and projections. Discuss how you will convert leads into clients, nurture them through the pipeline, and retain a loyal clientele. Include a realistic estimate of the quantity of goods and services you can sell within the forecast period (for example, monthly, quarterly, and annually). For a salon business, it’s helpful to determine the customer lifetime value of your typical client as well as the customer acquisition cost. You can then break down this number for the forecast period to determine the costs and sales projections.
• Customer acquisition and retention strategies. Include which strategies you will use and the associated costs, such as pay-per-click (PPC), search engine optimization (SEO), and paid ads on social media. Describe how you will retain customers – for example, through loyalty programs and responses to feedback and reviews on social media and Google. ‍
• Pricing strategy. It’s critical that you price your services and products competitively to drive revenue and profits. Detail the pricing strategy you plan to implement based on your buyer persona and competitive analysis. The strategy could be based on a variety of factors, but geographic location and local competition will likely be the biggest factors dictating your salon pricing strategy.

5. Management and Operations

The management and staffing section of your salon business plan should describe the organizational structure of your salon, including the roles and responsibilities of each staff member. It should also discuss your hiring and training practices, employee benefits , and compensation plans. This section should demonstrate your ability to attract and retain a skilled and motivated team, with information on your:

• Organizational structure. Spell out who runs the show and who reports to whom.
• Management team and staff. If you plan to hire a manager , look for someone who has experience in the industry and understands what it takes to run a salon. This person should also have good people skills and be able to work well with others.
• Business operations and processes. Consider which other support personnel you will need, such as an accountant and a dedicated marketing specialist. Don’t be a hero; you can’t do it all alone. ‍
• Legal and regulatory requirements. Include information on any legal advice you will employ to stay compliant with local, state, and federal guidelines.

Note that with GlossGenius, you can manage your team and collaborate with them to make your operations run more smoothly. Our software helps you delegate, mentor, and partner with others based on customizable permissions that let you grant as much or as little access as you wish. Easily manage your scheduling, booking, commissions, and reporting from one intuitive dashboard.

6. Financial Planning

Financial planning is a crucial section to include in any salon business plan. A cash flow forecast shows the anticipated amount of money coming into the business, as well as what you will spend on expenses. It also projects growth over time, which allows you to make predictions about future revenue and expenses so that you can better plan for them in advance.

The best way to get started with your financial projections is by creating an income statement (also called a profit and loss statement), which breaks down all income sources by category (e.g., retail sales and commissions), along with their associated costs (e.g., salaries). This will help provide insight into where your profits are coming from as well as areas where they could improve. Here are some key areas to cover in your salon business and marketing plan:

• Revenue and expense projections. Your revenue projections should consider the number of clients you expect to serve, as well as the average price per service. Your expense projections should reflect all costs associated with running your salon, such as utilities, rent, and supplies.
• Capital requirements and funding sources. Detail how much money you need to start and run your small business, including all costs associated with opening the salon. Describe the funding sources that you intend to use for starting your salon business, whether from personal funds, salon loans , or investors.
• Break-even analysis and profitability projections. A break-even analysis is a financial tool that shows how much revenue you need in order to cover your fixed costs (rent, utilities, etc.) and variable costs (such as salons supplies and staff wages). Profitability projections show how much profit you expect from your salon business for each year of operation. This is based on your estimates of revenue and expenses. You can use this information when seeking funding from investors or lenders.
• Financial ratios and metrics. A financial ratio is a measurement of the relationship between two numbers, usually expressed as a percentage or a fraction. For example, the working capital ratio compares your current assets to liabilities; this metric allows you to measure liquidity. Include the appropriate ratios and metrics in your business to demonstrate your company’s financial health.

A well-written salon business plan is essential for the success of your business. It provides a roadmap for achieving your business goals, attracting investors, and securing funding. By following the tips outlined in this article, you can write the best business plan for your salon and ensure your salon’s success!

As you’re creating your salon business plan, remember to start your free trial with GlossGenius and give yourself the best chances for success. From salon management to payment processing, we’ve got your new salon covered – making it easier to get up and running sooner rather than later.

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• February 27th, 2024
• Business Tips

How to Write a Hair Salon Business Plan

Are you thinking about opening your own hair salon? Or maybe you already have a salon and are thinking about opening another location?  

Well, when it comes to opening a new salon business, knowing how to write a hair salon business plan can make or break your success. The good news is—we’re here to help. 

In this article, we’ll go over the ins and outs of creating a hair salon business plan. This includes everything from market analysis and financial projections to your goals for the future. Having a plan will help you obtain funding and stay on track as you grow. 

Let’s get started. 

Do I Really Need to Write a Business Plan for a Hair Salon?  

You wouldn’t drive from San Francisco to Boston without either a GPS or a map, right? So, you shouldn’t run a business without a plan either. 

A hair salon business plan is a roadmap for your beauty business. Whether you have two chairs or 200, it’s essential for your ongoing success. 

In fact, opening or expanding a business has a lot more at stake than a drive across the country. You may have saved or taken out a loan to start your salon. And you likely have employees or contractors who are dependent on your business sense, too. 

A business plan gets you organized when you’re first starting out or opening a new location. Plus, it keeps you on track as you grow. You can reach or exceed your goals, but you must know what they are first. And you need to have a detailed set of strategies to use along the way. 

Let’s go back to our road trip metaphor.  

Suppose you want to get from California to Massachusetts. First, you figure out how many miles or hours the journey will take. Then, you divide that by how many miles or hours you can comfortably drive in a day. That’s how many days it will take. Finally, you plan overnight stops along the way for each of those days to make the drive doable. 

A salon business plan isn’t much different. You probably have goals for things like: 

• How much gross income you want to bring in 
• How much profit you want after overhead and labor 
• Ideal business model structure (e.g., booth rent vs. commission) 
• Services you would like to offer clients 
• Places where you’d like to open additional salons 

Without a specific business plan for how to make them happen, those are just pie-in-the-sky dreams. You need a more granular approach to turn them into a reality. 

For instance, how much money do you need to make each month to reach your desired net profits? If that’s how much you need to make each month, what do you need to make daily, assuming you’re open five days per week? How many chairs do you need to have? At what capacity do you need to operate? 

Not to mention, you’ll almost certainly need a formal business plan if you want to get financing for your salon. Salon equipment and real estate can be quite expensive. A bank may loan you money to get set up, but only if they see you have done your homework first. 

Lenders don’t want to back a business that is more likely to fail than to succeed. And new hair salons have an average success rate of 50% in the first three years of operation. 

That means half of those businesses will fail. Most fail not because of a lack of talent or ambition but because the owner doesn’t know how to properly run a business. You can be the best hairstylist in the world. But if you consider things like business accounting and marketing, you will likely lose more money than you are bringing in every month. 

Do you want to be in the 50% of new salons that thrive? Keep reading to learn the step-by-step method of developing a business plan for your salon. 

RELATED ARTICLE:  

Owning a Hair Salon: Your Launch Guide  

How to Write a Hair Salon Business Plan: Step by Step  

Below you’ll find information on each section commonly included in a business plan. But first, here’s a tip to help you make the most of these categories. 

Use the SMART method for setting goals. What are SMART goals ? They are: 

• Specific – highly detailed, not vague 
• Measurable – able to be quantified with hard numbers and actionable items mapped out to achieve the goal you’ve set 
• Achievable – doable within the framework of your business model 
• Relevant – related to your salon today, not somewhere else or too far in the future 
• Time-bound – tied to specific dates for end goals and milestones 

Any time you set a long-term or short-term goal, ask, “Is it SMART?” If not, dig deeper to get the details you need to make it work. 

Executive Summary  

Think of the executive summary as the introduction to your salon business plan. It gives brief information about: 

• The purpose of your salon and who it will serve 
• Your business objectives (offer something novel, expansion, etc.) 
• How your salon will be different from your competitors 
• Why you think the business will perform well 

For instance, you could talk about how you plan to open a salon in a busy urban area to cater to downtown employees. Your client demographic is primarily white-collar workers aged 25 to 45. 

Your unique selling proposition , or USP, is what makes the salon special. Say it’s that it will offer 20 and 50-minute appointments to fit into standard lunch breaks. Additionally, you’ll have 10-minute appointments for fast services during coffee breaks. 

Customers can get a quick trim on their fringe or ends. Beard and mustache trims are another rapid service you will offer. Everything can be booked and paid for online to streamline the process and get customers in and out in a jiffy. 

Maybe after work hours, your salon will be open for more traditional appointments. And you’ll have more quickie services available for businesspeople going out at night. They can get an updo, blowout, or style refresh before a date. On Fridays, you’ll offer manicure services too. 

In your business plan, you’d want to outline howyour USP will help your salon be successful. For our example, you might say you believe the salon will do well financially because of three factors: 

• The area is currently underserved by hair salons. 
• You are catering to the needs of businesspeople in your locale. 
• You hired an experienced stylist who’s bringing their clients with them. 

You don’t have to get into a ton of detail yet. This is a proverbial bird’s eye view of your business proposition. You could, however, outline a rough roadmap of how you envision your business will start and where you see it going in one year and five years. 

For instance, perhaps you plan to start with one location and 10 chairs. Five years from now, you want to open two additional locations. At that time, you will add new services like brow waxing and makeup consultations. 

You can mention market analysis in this section, too. Market analysis looks at competition and consumer needs in your niche. However, there will be a place later in your business plan to address this in more detail. 

Remember, your executive summary is an investor or lender’s first impression of your salon business. Therefore, you want to make it shine. 

Company Description  

This section goes into detail about the structure of your company. How long have you been in business? Who are the owners and managers? 

You’ll also want to review how many employees or contractors you plan to have. Will they be employed under W2 status, or will they contract as 1099 workers? 

Will hair stylists pay you a fee for the use of a chair? Will your salon take a cut of their fees? How will tipping be structured? 

For example: 

• Our salon is a startup organization that is not yet in business. 
• It is co-owned by two stylists who participate 50-50 in leadership. 
• There will be 10 chairs in total in the salon. 
• Eight contract stylists will be working as 1099 independent contractors. 
• Contract stylists will pay a monthly chair rental fee and a percentage of their billables to the owners. 
• All tips will go to the employed stylists, with a percentage going to a shampoo assistant. 
• Contract stylists make a commission on products sold in the salon. 
• You will also have two paid receptionists who will be W2 employees. 

You will go into more detail about financials in the Services and Pricing section. But this section should give readers an understanding of the basics of your planned salon operations. 

You can also include funding or investing requests in this section. Again, you will have further opportunity to dive into financials later. But touching on what you need to open or expand gets readers primed as they go through the next four sections. 

Market Analysis  

The market analysis section of your business plan is another area where you can wow readers and make your salon stand out. It answers the question, “Why you, and why now?” 

Remember, you don’t want to fit in with all the other salons in the area. Instead, you want yours to be unique . 

Your hair salon might be unique because of its business model, like the hypothetical one described in the executive summary. Or it could be you have a string of well-known stylists. 

Perhaps you offer extra luxury services and product lines. Maybe you offer great prices. It could be the whole vibe of your salon that’s one of a kind. Maybe it’s a retro nod to the ‘70s or a high-tech glimpse into the future. 

You don’t want to pitch your salon with a kitchen sink-style of features. After all, when you appeal to everyone, you really appeal to no one. But you can list several unique attributes that will give you a competitive market edge. 

In this section, you’ll show what the current market is like in your location. How many other salons are within a mile or two? Who do they cater to? Is there a gap you can fill to capture more market share? 

Be realistic. If everyone who comes through your door is on a tight budget, you can’t offer $300 color jobs. You need to match your services to your demographics. 

If you’ve ever sold a real estate property, you’ve done something similar to a business market analysis. You or your agent prepare “comps” or comparables. The comps show how your property is special, while reviewing what the rest of the area has to offer. 

Whether your salon is brand new or you’re opening a new location for your existing salon business, you may need to conduct market research. You can do this on your own or hire a consultant to do it for you. 

The more populated the area in which you operate, the more complicated market research is likely to be. If you’re in a suburb or rural community, there may only be a few hair salons to compete with. 

Don’t forget to include how your USP and ability to fill a need relates to industry trends. Let’s use the example above. There is a current national trend towards more online conveniences for salon customers. So, offering online payments and booking is going to help you stay at the front of the curve. 

Also, employees are feeling busier than ever these days. They struggle with work-life balance. And many are returning to the office after working remotely for several years. 

Your salon leverages this trend as well by providing stress-free quick appointments that fit into work breaks. Workers can get their hair done over their lunch hour and make better use of their personal time after work. 

If you have an existing business that you’re expanding, you can survey your clientele. Maybe you’re going to a second location because it’s underserved. Or perhaps you’re adding more services because that’s what clients want.  

It’s great to be able to give objective data that says there’s a need for your services. 

Hair Salon Industry Trends for Growing Your Salon Business  

Marketing Strategy  

How do you plan to promote your new salon or additional location? That’s the focus of this section of the plan. 

Some common salon marketing methods include: 

• SEO website 
• Social media accounts 
• Paid advertising 
• Loyalty programs 
• Cross-promotion with other businesses 
• Flyers in area office buildings 
• Bulk mailings with coupons 
• Free makeovers 
• Local news editorial coverage 
• Online review platforms 

An SEO (search engine optimized) website is a great place to start promoting your business. You can add other components later. An optimized website is set up to rank higher on search engines like Google and Bing. 

How do you improve a website’s SEO? 

• Use keywords related to your exact services that clients would search for when looking for a hair salon. 
• Be sure to mention your location multiple times on the website, including your state and local landmarks. 
• Add a blog for value-added content with links to authoritative sources. 
• Get your salon mentioned on other websites and in social media mentions. 

This section overlaps with your market analysis. You’ll be using your unique selling proposition to focus marketing campaigns. Every marketing effort is an opportunity to promote what makes your salon stand out. 

Talk about how you plan to cement the two cornerstones of a healthy salon business: 

• Repeat customers who book appointments regularly 
• New customers who keep things fresh and balance natural attrition 

How to Design and Roll Out a Beauty Salon Rewards Program  

Management and Organization  

Here’s where you can go into more detail about your salon’s company structure and staff payment plan. You can include elements like credentials here, particularly if you or a manager have a business background or education. 

Don’t simply list how you plan to pay workers. Explain why this is best for your salon business’s long-term financial health. 

Are you and any other owners taking a salary? What corporate structure are you using (LLC, S corp, etc.)? Your state may determine how you want to set this up.  

Speaking with an accountant can clarify questions for you, especially about taxes. 

Services and Pricing  

This section of your hair salon business plan outlines the meat and potatoes of what your salon will offer. It is essentially a menu of all the services and treatments you provide. It also includes prices for each. 

You can mention why you chose the pricing model you did. For example, if you’re serving affluent clients in a resort area, you can justify charging a little more. Or you might do group pricing because you serve a lot of bridal parties. 

Don’t forget to add any products you plan to sell. Why is carrying these items beneficial to your business? 

Financial Projections  

Financial projections are the nuts and bolts that lenders want to see. They’ll also keep you on the right path as you grow your salon. 

You’ve already outlined your services and pricing. Now, it’s time to do the math and calculate what that means in terms of income. 

Answer these questions first: 

• What do you expect your salon to gross (total income) in a year? 
• What are your overhead expenses (rent/mortgage, staff, utilities, wholesale supplies, etc.)? 
• What portion of your expenses are due to payroll? 
• Do you have to make capital purchases for equipment? Will these be paid with a lump sum, financing, or rental payments? 
• What is the net profit you expect (gross income minus overhead and expenses)? 
• Where do you predict expenses or income will change over the next few years? 

You want to make your business plan financial projections look truly professional. So, break them down into these categories: 

• Sales forecast – total sales expected over the next several years 
• Expenses budget – all the costs you need to operate 
• Profit and loss (P&L) statement – a 12-month summary of revenue versus expenses 
• Cash flow statement – how cash moves in and out of your business, including monthly payments 
• Projected balance sheet – items that aren’t in your P&L, like interest debt, equity, and other factors that affect the net worth of your business 
• Break-even analysis – what you need to earn (at least) to make your expenses and start turning a profit 

A certified public accountant (CPA) can help you put together this part of your business plan for a reasonable fee. It’s well worth it if it helps you obtain investors or bank funding. 

How You Can Start Writing a Hair Salon Business Plan Right Now  

Ready to get started on your hair salon business plan today? Use these tips right away to make it both convincing to lenders and helpful as an internal roadmap: 

• Write a mission statement. To write a solid executive summary, it’s helpful to first compose a mission statement. This delves into why you want to open your business in the first place. Some people include this in their executive summary. Others keep it private and use it as an inspirational jumping-off point. 
• Include milestones in your financial projections. These are points where you will examine progress and see if you’re on target. Be ready to course correct if you’re not hitting your goals. 
• Compile an appendix. It’s a good idea to include an appendix in your business plan with copies of extra materials. This is an ideal place to include photos of your salon, certifications, licenses, and financial documents. It will keep everything organized for you and make you look more professional to lenders. 
• Enlist help. If you have questions about certain sections of your salon business plan, consider consulting with the appropriate professionals. Paying a one-time fee to an attorney or CPA can save you money and headaches down the line. You could even consider hiring a business manager to deal with office and financial issues. 
• Research your competition. If you’re not sure what services to offer or how you stand out, do some in-person recon. Visit competitor salons and check out influencers on social media. How can you align with service gaps and trends to make the most of your business? 
• Explore salon management software. Salon management software can save you a lot of time and make your job a lot easier. For instance, you can use it to quickly and easily generate reports to keep a pulse on your performance. It’ll also help you with other tasks related to your financial success. The best salon management software can automate appointments, keep track of inventory, and assist with marketing. 

Learn How to Manage a Hair Salon Business with SalonBiz  

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Starting A Hair & Beauty Salon Business Plan (PDF)

The hair beauty salon business is one of the most lucrative businesses you can start. A hair & beauty salon is a business that offers cosmetic services for men and women. Almost any person on earth normally regularly requires such services. This means the pool of prospects for the hair beauty salon business is huge. The services that an individual hair & beauty salon business can offer are broad and diverse. There definitely is a piece for everyone interested in starting a hair beauty salon. Operating a hair & beauty salon business is a profitable business venture. However, above everything else, the hair & beauty salon business calls for exceptional relationships and the highest standards of service. This is one of the most lucrative businesses that have undergone significant transformation over the past two decades. This industry has continued to thrive and rebound even during the recessions. This article will outline how to set up a hair and beauty salon, and the hair & beauty salon business plan – PDF, Word and Excel.

Hair and beauty salons provide income for many entrepreneurs but to set up a such a business there are some important factors you need to consider. You must determine on the size of your salon, where you will locate your business and the kind of products and services you intend to offer to your customers. All these and other various factors are affected by who your target market is and the amount of capital you want to invest in the business. As such, you must conduct proper market research and have a well thought out hair & beauty salon business plan.

Business Model

Traditionally there are several hair & beauty salon services you can offer. They are typically packaged in such a way that there are service charges. The service charge can vary depending on the certain circumstances. For instance, a customer might want their hair done but having already bought the necessary supplies themselves. That will mean they will only get to pay for the service of getting the hair done. If not, they will pay for everything in-house. Times are changing and hair beauty salons are also moving into retail. Thus money-making methods for the hair beauty salon business are evolving.

Location And Premises

The location and premises of your hair and beauty salon are important to consider when setting up your business. This is because your chosen location has a direct effect on how successful your business will be. Thus, when choosing a location for your hair and beauty salon consider where your target market is, whether there is road and foot traffic, as well as how accessible your salon will be. Think about setting up your hair and beauty salon at a popular shopping centre, a mall, or somewhere close to the CBD. It is also important to consider how the surrounding area will affect your business. You do not want to set up your hair and beauty salon in a saturated place where there are a lot of salons because that will not be good for your business. Also consider the size of your premises and make sure that your premises are large enough for your equipment and can accommodate a reasonable number of people. Parking space is also essential when considering your premises. Your customers should not have hard time when it comes to parking space if they are to come to your hair and beauty salon. Your beauty and hair salon business plan should include the costs of renting or purchasing the premises.

Permits/Licenses, Insurance & Business Bank Account

You can be operating a solo hair & beauty salon, as many do or start off as. That does not mean you should operate informally. There are doors you will open for your hair beauty salon business if you formally register it. Follow up on that by applying for a business operating license. Approach your respective municipality offices to seek guidance. When that is in order the next step should be to get insurance for your hair beauty salon business. Insurance providers will offer guidance on the specific types of insurance covers you will need. Garnish all these steps by opening a business bank account for your hair beauty salon. The principle is to separate your hair beauty salon entity from your personal finances.

Competitive Analysis

By nature, the hair & beauty salon business is quite competitive. There is typically always a high number of hair & beauty salons in any central business district. That is why it is vital that you do some research into your competitor dynamics. The best approach is to identify your top 3 notable competitors. Look into the composition of their hair beauty salon businesses. What type of services do they offer? Do they sell any products, if so, which ones? What are their service prices? What are their customers experiences like? What is their customer segmentation dynamics like? Where are they located?

These are some of the questions to guide you in researching your competitors. Go as far as researching into indirect competitors too. These can be hair & beauty salons in other locations with customers you could lure away. You are looking into all these aspects to find ways you can use to make your hair beauty salon outstanding. Always remember that there are too many options for consumers when it comes to hair beauty salons. Any slight shortcoming on your part and consumers will gladly explore other options.

Furniture & Equipment 

When it comes to a hair and beauty salon you need the right tools and equipment to be successful in the business. You must invest in good quality hair dryers, styling kits, curlers, combs, and furniture. The chairs that you may need include hair styling chairs, shampoo chairs, dryer chairs & all purpose chairs. The furniture which you purchase for your hair & beauty salon should be c omfortable, durable, and easy to use. The size of your business together with the services you intend to offer will determine the kind of furniture and equipment that you will need for your business. Your hair & beauty salon business plan should include the costs of purchasing the furniture & equipment.

Products And Services

When it comes to the products and services of your hair and beauty salon you need to first understand who your customer is. Researching your target customer will help you understand what their needs are when it comes to hair care. The hair & beauty salon business lends itself to variety in terms of the services that are on offer. For example, you can offer cutting, color, braiding, styling, pedicure, manicure, massages and skin treatments. The individual services and products will vary greatly depending on the tastes and preferences of your client at any given moment in time. There will be lots of troubleshooting along the way because you may be required to respond to requests that were not originally part of your program. The hair salon business is unique in this respect because it varies so greatly depending on the fashion trends and the responses of the clients at that particular time. It is always best to have a variety of products and services in order to increase your business’ earning potential. If you decide to sell hair or other complimentary products it is important to make sure that you source your products from the right supplier. Always purchase your products from suppliers who have good quality products. Any other additional services such as facials, make up application and skincare will help you generate more income and serve a wider customer base.  Your hair and beauty business plan should outline the products and services you will offer.

Staff & Management

If you are going to be a customer centric business, you need to have a good team. Service businesses such as a hair and beauty salon need people that know how to work with clients from all walks of life. It is best to hire experienced workers who are passionate about their jobs. Your hairdressers for example, should know how to braid, cut, apply chemical treatments, and communicate well with  customers. If you hire people with no experience, it is best to train them first before giving them to intricate tasks. It is important for your beauty & hair salon business plan to include the number of people you need to employ together with their salaries.

Some of the day to day activities of a hair and beauty salon include;

• Shampooing, styling, colouring, hair cuts, braiding
• Manicures and pedicures,
• Skincare treatments, facials and make up application,
• Advertising and marketing,

Other important issues to consider when running a hair and beauty salon are health and safety regulations. Some of the health and safety regulations include cleanliness, the products you use and the general safety of your workers and your customers. It is necessary to conduct proper research and understand the regulations that govern your industry.

Marketing Strategies

Be cognizant of the many customer segments.

In your marketing efforts you must be cognizant of the many customer segments that exist. Borne out of market research, it is prudent to appeal to the biggest segments. Customers in search of hair & beauty salon services are so diverse. There are those who are seeking to keep up with the latest trends. There are those who aim to subscribe to a certain societal class or status. There are also customers who are mostly conservative in their preferences. Do not forget there are kids on the one end and senior citizens on the other end. This is to just show you that your market targeting must be cognizant of the many available customer segments.

Build An Online Profile For Your Hair Beauty Salon

Establishing your hair beauty salon online is highly effective in pushing brand awareness. Sure enough some hair beauty salons do set up digital footprints, but not all. Just being online opens up your hair beauty salon to a limitless audience. Actively and regularly post content and buttress that with running online contests. Offering giveaways for engagement-centred online contests quickly builds your hair beauty salon’s online audience. Get involved with strategic online platforms or activities. For instance, you can offer your services for free to podcasts hosts or social media influencers. These are some the ways you can build your hair beauty salon’s online profile. This will all contribute in making your hair beauty salon business easily discoverable online.

Encourage And Reward Referrals

The hair beauty salon thrives on referrals. It is often the case that someone tries out a hair beauty salon only after someone they trust recommended it. To tap into this dynamic you have to encourage and reward referrals by your customers. You can even put together a customer loyalty programme for your hair beauty salon business. To spice up the referrals element you can offer specials such as discounts. You can also run promotions; basically anything that causes others to refer customers to your hair beauty salon business.

The demand for hair & beauty salon services is very huge and ever increasing. The increase is due to the increased urbanization and population growth. You can offer your services to both male & females, young & old. The kind of services that you provide will determine the kind of customers that you will get. So you should offer services that suit your target market. If you offer good quality services, you will get many repeat customers, as people require hair & beauty services regularly. If you are in need of a retirement plan, or you are a professional simply looking for a side business setting up a hair and beauty salon is something worth considering. You can either set up your own company and create your own brand or go the less risky route and become a franchise. This way you can benefit from a proven successful business model although it may be limiting. Whatever you decide, setting up a hair and beauty salon is a business venture worth considering. To succeed in any business make sure that you understand your target market, and that you research the industry thoroughly.

Keys To Profitability

Diversification into retail and complementary services.

Most hair beauty salons focus on just offering the applicable services. That is limited in as far as revenue and profitability is concerned. You have to diversify into product retail as well. You can do this retail in-store or via an online shop. There is a wide range of products you can sell in a hair beauty salon. The idea is to make it possible for every client to spend as much as possible. Complementary services you can add include a wide range of body treatments or therapy e.g. massages. This all aims at making your hair beauty salon a one stop shop.

Going To Digital

This refers to more than just being active online. This specifically refers to availing digital services such as online booking and online payments. This will differentiate your hair beauty salon; most hair beauty salons do not offer digital services. Streamline these services by using new age technologies such as chatbots and artificial intelligence assistants. Already the common social media platforms you use can be integrated with such innovations. The basic thrust is to offer convenience and efficiency for your clients.Once you have internalized all this information you are ready to start your hair beauty salon. Your biggest sources of valid information are already existing hair beauty salons. Closely studying them will open your eyes to tricks of the trade.

Before setting up any business you need to develop a well thought out hair & beauty salon business plan. A business plan will help you think through your financial, operational, and marketing plan as well as develop a functional strategy. With a hair and beauty business plan you can also figure out if your business will be profitable or not. You can also determine the risks associated with your business and find ways to minimise them. A beauty and hair salon business plan is a useful tool both in the short run and long run.

Pre-Written Hair & Beauty Salon Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the hair & beauty salon business, we encourage you to purchase our well-researched and comprehensive hair & beauty salon business plan. We introduced the business plans after discovering that many were venturing into the hair & beauty salon business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global hair & beauty salon business plan will make it easier for you to launch and run your hair & beauty salon business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a hair & beauty salon. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the hair & beauty salon business.

Uses of the Hair & Beauty Salon Business Plan (PDF, Word And Excel)

The salon business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your hair & beauty salon business
• As a hair & beauty salon business proposal
• Assessing profitability of the hair & beauty salon business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Hair & Beauty Salon Business Plan (PDF, Word And Excel)

The business plan for hair & beauty salon includes, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the hair & beauty salon business fail, so that you can avoid their mistakes
• Ways to raise capital to start your hair & beauty salon business

The hair & beauty salon business plan package consists of 4 files

• Hair & Beauty Salon Business Plan – PDF file (Comprehensive Version – 77 Pages)
• Hair & Beauty Salon Business Plan – Editable Word File (Comprehensive Version – 77 Pages)
• Hair & Beauty Salon Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 43 pages)
• Hair & Beauty Salon Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Hair & Beauty Salon Business Plan (PDF)

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Get the Hair & Beauty Salon Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your hair & beauty salon business! Check out our collection of business plans  , and more business ideas .

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Hair Salon Business Plan

Start your own hair salon business plan

Cranium Filament Reductions

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

First impressions are everything. A really good haircut is key to making a good impression. Not everyone can afford to spend a few hundred dollars and a few hours to get a good haircut. A lot of families have budget constraints. They need a place to go to get this stuff done. 

Cranium Filament Reductions will stand out by providing superior customer attention. This is particularly important in the "quick salon" space that Cranium operates in because margins are a bit lower and the goal of a quick salon is to crank through customers.

The hair styling industry is highly fragmented with national chains such as Regis Corporation, which operates diverse franchises catering to all the market segments, and also including thousands of "mom and pop" salons that are very restricted in scope and services. This makes for a highly competitive market that has low barriers to entry and exit. In addition, the clients of hair styling have significant leverage due to the low switching costs they have. However, most companies have tried to pursue only one general strategy in gaining market share. Cranium believes that it is possible to offer a differentiated service through improved customer service at no greater significant cost if the right employee incentives are provided.

Competition

The buying patterns of men and women are quite different. Typically men are more price or convenience sensitive. Men typically care less about the task of getting their hair cut. For them whatever is easiest works best. Women on the other hand are more caught up in hair styling and tend to bond more with their stylists. Because they bond more, they are much more loyal to their stylist. Once a stylist has earned their trust they are more willing to blindly put their hair in the stylists hands.

Cranium Filament Reductions’ mission is to provide reasonably priced, convenient hair styling. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. 

Expectations

This is a service business so it doesn’t generate high profitability. It does generate a good way for its people to make a living. 

Financial Highlights by Year

Financing needed.

The financing needed is $105,000. That includes a $45,000 loan, and owner investment (Susan) of $60,000. 

Problem & Solution

Problem worth solving, our solution.

Cranium Filament Reductions is a hair salon that allows the entire family to have their hair needs satisfied in one convenient visit. 

There are many "quick salons" like Cranium, however, many of these salons, such as Cost Cutters, only provide the minimum services, whereas the upscale salons can be inconvenient due to scheduling requirements and cost. The owner of Cranium perceives an unfulfilled customer need for a low-cost salon that provides maximum flexibility and strong customer attention. Using this strategy, Cranium will gain significant market share and create critical long-term relationships with its clients.

Target Market

Market size & segments.

Cranium Filament Reductions will target each of the three groups separately. The males will be targeted by offering a quick, convenient, service. Because men tend to have shorter hair, they usually require haircuts more often. If they are getting a cut every four weeks and work normal business hours, most barbers are closed when the male customers have free time. Cranium Filament Reductions will cater to males with evening hours, no appointments necessary, and quick turn around times.

Generally females prefer the allure of upscale salons, however, not everyone can afford this luxury. For this reason Cranium Filament Reductions will provide the same quality hair styling, without the expensive price. Cranium will target these customers by emphasizing the sophisticated, ultra-hip styling that Cranium can offer.

Cranium Filament Reductions will also target mothers with children by offering the kids toys to play with while they wait and child-friendly hair stylists. Additionally, children receive a special rate reflecting the fact that children’s hair grows so fast that it can be expensive to keep up with regular cuts, as well as the recognition that it generally takes a lot less time to cut a child’s hair so it should be inherently less expensive.

Current Alternatives

Cranium Filament Reductions’ competitors include:

• Traditional barbers . They rarely serve appointments, it is generally a walk-in service. While barbers are usually willing to provide whatever cut you are interested, they are generally providing straight forward haircuts, typically on the conservative side. The advantages of a barber is they are inexpensive and easy to use. Their disadvantages is often conservative styling capacities, sometimes a long wait as the barber may be an old timer who enjoys to chit chat.
• Franchised "quick salons."   An example of this would be Supercuts or Best Cuts. In essence this is a franchised version of Cranium Filament Reductions. The advantage of this style is the store will be the same from location to location and some people like this predictability. 
• Independent salons . These shops typically focus on a specific niche and do not serve a wide group of customers. The advantages to these could be an independent salon that fulfills all of your needs. The disadvantage is that because they tend to be more focused, more often than not this type of salon will not offer exactly what customers are looking for.

Our Advantages

Cranium Filament Reductions’ competitive edge is based on faultless customer service. Cranium Filament Reductions recognizes that the hair cutting/styling market is crowded so it is difficult to stand out. Cranium Filament Reductions will stand out by providing superior customer attention. This is particularly important in the "quick salon" space that Cranium operates in because margins are a bit lower and the goal of a quick salon is to crank through customers.

Cranium will invest time and money into training to ensure that clients receive the best experience possible making it easier to turn them into long-term customers. By providing superior customer service, Cranium will be able to effectively compete against and outlast larger chains and independent stores.

Keys to Success

Our keys to success are: 

• To create a service-based company whose goal is to exceed customer’s expectations.
• To increase the number of clients served by at least 20% per year through superior performance and word-of-mouth referrals.
• To develop a sustainable start-up business, contributing to increased employment of community residents.

Marketing & Sales

Marketing plan.

Cranium Filament Reductions will market themselves as a hair salon that serves everyone, men, women, and children. This will be done through flyers to be sent out with the local newspaper. Cranium will also have an in-store promotion for the first few months to lure new people in. Lastly, Cranium will offer a discount for a few months to people that refer new customers.  

We intend to be active in social media, with consistent presence, offering tips on style plus information on local events and issues, occasionally humor, social media presence that helps people get to know us, like us, and trust us. 

Cranium Filament Reductions’ sales strategy will be based on extremely professional interactions with the customer. Typically the "quick salons" concentrate on being quick and inexpensive, often at the expense of customer service. Anytime that a prospective customer is speaking with someone at Cranium’s the employee will have an opportunity to impress the customer. Employee training will emphasize seizing these opportunities.

Cranium Filament Reductions will also have the opportunity to increase sales of their retail hair care products every time they have a customer in the chair. Cranium offers deep discounts on the hair care products for employees to encourage usage so they can explain to the customer about their personal experiences. Additionally, Cranium offers a product-based commission structure for the hair care products where they give away the product to the employee for commissions for selling the items to their customers. These personal testimonials and commission structure will allow Cranium to generate good sales from the retail hair care products.

Location and Equipment

This will be a store front with 1500 square feet. There will be: a waiting area with magazines and a display with hair products, a reception desk, 3 hair dressing chairs, 3 washing stations towards the back of the store, one computer and one cash machine. This will be a small space but will have everything that one expects when going into a hair cutting space. 

Milestones & Metrics

Milestones table.

Key Metrics

Our key metrics are:

• The # of customers in a day 
• The # of customers in a month 
• Walk-ins vs clients who called to make a appointment ahead 
• The # of products that are sold to clients or walk-ins every month 
• The money brought in on the most popular stylist vs the least popular stylist 

Ownership & Structure

Cranium Filament Reductions is an Oregon corporation owned entirely by Susan Sever and is located in Shaker Hts., Oregon.

Ms. Sever will be handling all hiring and training, purchasing, and retail sales. She will also hire a receptionist to manage all of the appointments as well as the people who walk in and be responsible for the point of sale transactions. Cranium will also be hiring six part-time hair stylists who will operate on a hourly/commission basis. 

Ms. Sever will be using a partial commission basis to create incentives for superior customer attention. The more her stylists attend to the customer’s needs, the more money they will make off commissions. Cranium will invest time and money into training to ensure that clients receive the best experience possible making it easier to turn them into long-term customers. 

Management Team

Susan Sever received her bachelor’s degree from Miami University in Oxford, OH. While pursuing her degree Susan worked in the restaurant industry. For the four years during school she was a server in an upscale restaurant. While this provided very good income, particularly on the weekends, she longed for management experience.

After graduation she sat down with the owner of the restaurant and presented him with a well reasoned case as to why she should be manager of the establishment. Her main points were her intimate knowledge of the industry and the restaurant, her superior communication skills with the customers and her colleagues, and her ambition to succeed. The owner was surprised by the well-reasoned arguments, enthusiasm, and ambition to take on more work that he promoted her to manager on the spot.

Susan worked as manager for three years, learning all the intricacies of operating a business. These were three rewarding, but long, years. Toward the end, the long hours and work at night took its toll on Susan and she was burned out. When contemplating new opportunities she was brainstorming a  way in which she could combine something she loved with something that she would be the owner of. She loved hair and had the experience of operating a business so after a lot of market research she undertook the task of writing a business plan.  

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

Our Key Assumptions: 

– Men would like to have great haircuts and do not mind paying for them 

– Men and women need hair products 

– Our cost for men’s haircuts will be industry standard of 43% and our cost for women’s haircuts, children’s haircuts and products are 27%

– Our friends  and family see the merit of our business and would be happy to give us the cash to run the business. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Cranium Filament Reductions will incur the following start-up costs:

• Computer with point of sale terminal.
• Computer with printer for back office.
• Five cutting stations, each station requires a barber chair, cabinet, large mirror, blow dryer, curling iron, electric razor, several pairs of scissors, spray bottle, two sided mirror, and assorted combs and brushes.
• Desk for reception area.
• Three couches for the reception area.
• Display shelf for sale of retail products.
• Assorted plants.
• Assorted toys for the children.
• Legal fees for business formation and generation/review of contracts.

Please note that the following items that are assets to be used for more than a year will be considered a long-term assets and will be depreciated using the straight-line method accepted by G.A.A.P.

Sources of Funds

Susan will be contributing $60,000. The additional $45,000 will come from a business loan. 

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement

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Natural Hair Care Business Plan Template

Written by Dave Lavinsky

Natural Hair Care Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their natural hair care companies. 

If you’re unfamiliar with creating a natural hair care business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a natural hair care business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Natural Hair Care Business Plan?

A business plan provides a snapshot of your natural hair care business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Natural Hair Care Business

If you’re looking to start a natural hair care business or grow your existing natural hair care company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your natural hair care business to improve your chances of success. Your natural hair care business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Natural Hair Care Businesses

With regards to funding, the main sources of funding for a natural hair care business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for natural hair care companies.

Finish Your Business Plan Today!

How to write a business plan for a natural hair care business.

If you want to start a natural hair care business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your natural hair care business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of natural hair care business you are running and the status. For example, are you a startup, do you have a natural hair care business that you would like to grow, or are you operating a chain of natural hair care businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the natural hair care industry. 
• Discuss the type of natural hair care business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of natural hair care business you are operating.

For example, you m ight specialize in one of the following types of natural hair care businesses:

• Full-service natural hair care salon : Considered to be one of the finest specialty-care types of hair salons, natural hair care salons provide consultations, and shampoo, cut and style hair using exclusively natural hair care products and tools.
• Natural hair care consulting service: Consultants in the natural hair care industry offer examinations, prescriptions for re-growth or problem hair, as well as natural hair care recommendations.
• Natural hair care products store: this type of natural hair care retail store is located in a shopping center or mall and provides a wide range of natural hair care products. Attendants will often offer advice regarding hair problems and offer hair solutions using natural hair tools and shampoo or conditioner products. 
• Natural hair care products online store: Offering natural hair care products and tools via an online shop, these types of companies usually offer consumer advice in a chat session. Natural online hair care stores offer a very wide variety of products that suit this specialty market.

In addition to explaining the type of natural hair care business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of product packages sold, reaching X number of clients served, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the natural hair care industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the natural hair care industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your natural hair care business plan:

• How big is the natural hair care industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your natural hair care business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your natural hair care business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals who want to use only natural products, elderly people with hair growth issues or balding problems, and those with diseases that cause hair loss.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of natural hair care business you operate. Clearly, individuals who want to use only natural hair care products would respond to different marketing promotions than those with diseases that cause hair loss , for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r natural hair care businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes department stores, healthcare providers, or discount retail chains. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of natural hair care business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide discount pricing for regular customers?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a natural hair care business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f natural hair care company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide special hair regrowth treatments, medicinal scalp massages, or special pricing for bundled services or products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your natural hair care company. Document where your company is situated and mention how the site will impact your success. For example, is your natural hair care business located in a busy retail district, a business district, a standalone office, or is it purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your natural hair care marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to healthcare providers and specialty dermatologists 
• Distribute flyers at natural hair care products trade shows
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your natural hair care business, including answering calls, scheduling and providing hair therapy sessions, billing customers and managing inventory, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your natural hair care business to a new location.

Management Team

To demonstrate your natural hair care business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing natural hair care businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a natural hair care business or successfully operating as a hair stylist in a hair salon.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 25 customers per day, and/or offer online-only specials ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your natural hair care business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a natural hair care business:

• Cost of natural hair care supplies, natural hair care tools and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of long-term clients you serve.

Writing a business plan for your natural hair care business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the natural hair care industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful natural hair care business.

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Other Helpful Business Plan Articles & Templates

Natural Hair Product Line Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Beauty Care Industry » Cosmetics Line

In recent times, it has become the norm for people to go all natural and organic including maintaining their natural hair. Interestingly, it is not restricted to only black women but it cuts across races and genders.

As a matter of fact, there are well organized bodies who are advocating the natural hair and one of them is the Natural Hair Moment. The natural hair movement is a movement which encourages women and men of African descent to embrace their natural afro-textured hair.

It originated in the United States during the 1960s, with its most recent iteration occurring in the 2000s. With this development, it is easier to predict that a business that is into the production of natural hair care products will indeed be a thriving business.

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If you are however thinking of starting your own natural hair product line, then you must be ready to learn the ropes. No doubt it requires loads of research, experience and huge capital base to be able to establish a natural hair product line whose products will be globally accepted.

If you want to start small, then you might not have to break the bank to get started, but you must still do a thorough research and if possible, acquire a degree or diploma in cosmetology.

If you are sure that this type of business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services.

The truth is that it is one thing to have a fantastic idea cum business plan, but another thing for the business plan to translate to profits, that is why it is important to assemble a team of experts to work with if you want to be successful with your natural hair product line company. Below is a sample natural hair product line business plan that will help you successfully launch your business.

A Sample Natural Hair Product Line Business Plan Template

1. industry overview.

The natural hair product business is a business whose products are used all across the world by both males and females who are keeping their natural hair especially people of African descent.

According to a research conducted by Mintel, more blacks in the united states of America are gravitating towards natural hair care products and this has seen an increase in the sale of hair styling products, which jumped to 26.8 percent between 2013 and 2015, reaching a value of $946 million which represents more than 16 percent of the overall hair industry.

The move to naturals has also seen a drop in the sale of relaxers. In the last half decade, natural hair care production business has experienced elevated demand, most especially from premium level goods, in line with increased consumer spending and the overall growth of the economy.

Purchaser preferences and new product introductions have also contributed to boosted revenue and profit. Operators flooded the industry over the period, as purchaser demand for brand name and value-added products increased.

An increasingly health-conscious customer base is becoming progressively more aware and sensitive to product ingredients. Consumers are increasingly concerned with using products that are chemical-based or have traces of metals or animal by-products, pushing companies to invest in research and development to offer new natural and safe products.

A recent report published by IBISWorld estimates that industry revenue for natural hair care products is projected to reach $212 million by 2017 growing by 2.8 percent between the periods of 2011 and 2016. Even though the economy is slowly recovering, spending power amongst the blacks according to The Nielson Co has increased tremendously within a decade and is still expected to grow some more within the next decade.

The increase in production of organic and natural hair care products has been fueled by the approval given by the U.S Department of Agriculture (USDA) and the FDA. What has fueled demand in this industry is the change in the lifestyle of consumers as they now demand chemical-free hair products.

More than 51 percent of blacks in the United States have resorted to natural hair care products and yet demand shows no signs of slowing down as sales have been projected to reach $1.4 billion in the year 2022. One of the major factors that encourage aspiring entrepreneurs to venture into natural hair care production is the fact that there are readily available markets for natural hair care products.

Despite the fact that there are stiffer competitions amongst other hair care product manufacturing companies/brand, if you are able to carve a niche for yourself, it won’t be too difficult for people to accept your products.

2. Executive Summary

Monica Nature® Natural Hair Care Production, Inc. is a licensed and standard hair care production company with bias in natural hair care products that will be located in an industrial area in Fort Wayne, Indiana. We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of long-term renewal on an agreed terms and conditions that are favorable to us.

The facility has government approval for the kind of business we want to run and it is easily accessible and we are deliberate about that to facilitate easy movement of raw materials and finished products. We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our natural hair care products the opportunity to be part of the success story.

We are aware that there are several big and small scale natural hair care production companies in every nooks and crannies of the United States, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business.

We ensured that our facility is easy to locate and we have mapped out plans to develop a wide distribution network for wholesalers all around Fort Wayne – Indiana and the United States of America.

Much more than producing quality and safe natural hair care products, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit purchase any of our products.

Monica Nature® Natural Hair Care Production, Inc. will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our factory. We have a CRM software that will enable us manage a one-on-one relationship with our distributors no matter how large their number may grow to.

Monica Nature® Natural Hair Care Production, Inc. is family business that will be owned by Monica Martins and her immediate family members. Mrs. Monica Martins who is the Chief Executive Officer of the Company is Graduate of Cosmetology and she holds a Master’s Degree in Business Management (MBA) from Stanford College.

She has over 12 years’ experience working in related industry as a senior production manager prior to starting Monica Nature® Natural Hair Care Production, Inc.

3. Our Products and Services

Monica Nature® Natural Hair Care Production, Inc. is going to run a standard and licensed natural hair care production company whose products will not only be sold in Fort Wayne – Indiana but also throughout the United States of America.

We are in the cosmetic & beauty care product manufacturing industry to make profits and also to give our customers value for their money. We will ensure that we do all that is permitted by the law in the United States of America to accomplish our business goal and objective. These are some of the products that we will be offering;

• Natura hair coloring
• Natural hair conditioner
• Natural hair gel
• Natural hair glue
• Natural hair serum
• Natural hair spray
• Natural hair tonic
• Natural hair wax
• Natural hair oil and pomade
• Natural hair mousse and related natural hair care products

4. Our Mission and Vision Statement

Our vision is to establish standard natural hair care production company whose products will not only be sold in Fort Wayne – Indiana, but also throughout the United States of America.

Our mission is to establish a standard and world class natural hair care production company that in our own capacity will favorably compete with leaders in the industry. We want to build a business that will be listed amongst the top 10 natural hair care brands in the United States of America.

Our Business Structure

Monica Nature® Natural Hair Care Production, Inc. is established with the aim of competing favorably with other leading natural hair care brands in the industry. This is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of twelve years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)

Plant Manager

• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

• Machine Operators
• Accountants / Cashiers

Distribution Truck Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e., leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization.
• Responsible for overseeing the smooth running of the production plant
• Part of the team that determines the types and quantities of natural hair care products that are to be produced
• Maps out strategies that will lead to efficiency amongst workers in the plant
• Responsible for training, evaluation and assessment of plant workers
• Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Serve as quality control and compliance officer
• Ensures that the plant meets the expected safety and health standard at all times.

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.
• Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Responsible for the purchase of raw materials and labeling and packaging materials.
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company

Accountant/Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels/documents for the company
• Distribute mails in the organization
• Handles any other duties as assigned by the line manager

Production Workers/Machine Operators:

• Responsible for operating equipment and machines such as extracting, blending, mixing and packaging, labeling and sealing machines used in the production of natural hair care products
• Handle labeling of natural hair care products
• Assist in packaging and loading care products into distribution trucks
• Assist in loading and unloading products
• Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assist the transport and logistics manager in planning their route according to a delivery schedule.
• Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
• Transport finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
• Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
• Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Report defects, accidents or violations

6. SWOT Analysis

We are quite aware that there are several natural hair care production companies both large and small in the United States of America and Canada which is why we are following the due process of establishing a business so as to compete favorable with them.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Monica Nature® Natural Hair Care Production, Inc. employed the services of an expert HR and Business Analyst with bias in startup business to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Monica Nature® Natural Hair Care Production, Inc.;

Part of what is going to count as positives for Monica Nature® Natural Hair Care Production, Inc. is the vast experience of our management team, we have people on board who are highly experienced and understand how to grow business from scratch to becoming a national phenomenon.

So also, the different types of natural hair care products that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

A major weakness that may count against us is the fact that we are a new natural hair care production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like L’Oréal USA Inc., Procter & Gamble Company and Estee Lauder Companies Inc. et al are already determining the direction of the market.

Opportunities:

The opportunities available for natural hair care product manufacturing companies are enormous. This is due to the fact that more blacks in the United States are gravitating towards natural hair care products and this has seen an increase in the sale of hair styling products, which jumped to 26.8 percent.

As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for beauty care products and also to create our own new market. We know that it is going to require hard work, and we are determined to achieve it.

We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power.

Another threat that may likely confront us is the arrival of a new natural hair care production company or beauty care manufacturing company that also manufactures natural hair care products.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the existing trend in the cosmetic & beauty care products manufacturing industry, you will quite agree that there are competitions in different stages of the industry. Most natural hair care production companies are leveraging on creativity in terms of packaging and marketing to continue to stay afloat in the industry.

Another trend in this industry is the exploration of safer raw materials for the production of natural hair care products. The truth is that people all over the world are looking for natural hair care products that contain organic ingredients or at least healthy essential oils hence the increase in demand for natural hair care products that are produced from herbal raw materials.

Lastly, the cosmetic and beauty care products manufacturing industry is leaning towards the adoption of eco – friendly approach towards the production and packaging of its products. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products.

8. Our Target Market

When it comes to selling natural hair care products, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people (black women who are carrying their natural hair), but all those who reside in our target market locations.

We are in business to engage in manufacturing and wholesale distribution of natural hair care products to the following groups of people;

• Cosmetic and beauty care retailers
• Beauty salons and spas
• Barbing salons
• All the females and males in and around our target market location who are cool with natural hair

Our Competitive Advantage

A close study of the natural hair care product line business reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are prepared to compete favorably with other natural hair care product lines in Fort Wayne – Indiana and throughout the United States and Canada.

Part of what is going to count as competitive advantage for Monica Nature® Natural Hair Care Production, Inc. is the vast experience of our management team, we have people on board who are highly experienced and understand how to grow a business from the scratch to becoming a national phenomenon.

So also, the wide varieties of natural hair care products that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Monica Nature® Natural Hair Care Production, Inc. is established with the aim of maximizing profits in the cosmetic and beauty care product manufacturing industry in both the United States of America and Canada and we are going to ensure that we do all it takes to sell a wide range of natural hair care products to a wide range of customers.

Monica Nature® Natural Hair Care Production, Inc. will generate income by selling the following products;

10. Sales Forecast

One thing is certain when it comes to the natural hair care product business, if your products are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Fort Wayne – Indiana and every city where our natural hair care products care will be sold and we are quite optimistic that we will meet our of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the cosmetic and beauty care products manufacturing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below is the sales projection for Monica Nature® Natural Hair Care Production, Inc., it is based on the location of our business and other factors as it relates to small scale and medium scale natural hair care production company startups in the United States;

• First Fiscal Year (FY1): $290,000
• Second Fiscal Year (FY2): $550,000
• Third Fiscal Year (FY3): $950,000

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Monica Nature® Natural Hair Care Production, Inc. and also the kind of natural hair care products we produce, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market in our target market location.

We hired experts who have good understanding of the cosmetic and beauty care product manufacturing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Fort Wayne – Indiana and other cities in the United States of America and Canada.

In summary, Monica Nature® Natural Hair Care Production, Inc. will adopt the following sales and marketing approach to sell our natural hair care products;

• Introduce our natural hair care products brand by sending introductory letters to merchants, retailers, barber shops, beauty salons, spas and other stakeholders in Fort Wayne – Indiana and other cities both in the United States of America.
• Advertise our products in community-based newspapers, local TV and radio stations
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet to promote our natural hair care products brands
• Engage in direct marketing and sales
• Encourage the use of word-of-mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our natural hair care product plant is a standard one with a wide range of natural hair care products that can favorably compete with other leading brands in the industry, we will still go ahead to intensify publicity for all our products and brand.

Monica Nature® Natural Hair Care Production, Inc. has a long – term plan of distributing our natural hair care products in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted in Fort Wayne – Indiana before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Monica Nature® Natural Hair Care Production, Inc.;

• Place adverts on both print (community-based newspapers and related beauty and lifestyle magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, and Pinterest et al to promote our natural hair care products brand
• Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
• Engage in roadshow from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
• Ensure that our products are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.

12. Our Pricing Strategy

We are aware of the pricing trend in the cosmetic and beauty care products manufacturing industry, which is why we have decided to produce various sizes of natural hair care products.

In view of that, our prices will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various natural hair care brands in the United States of America.

We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our natural hair care product brands.

• Payment Options

The payment policy adopted by Monica Nature® Natural Hair Care Production, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Monica Nature® Natural Hair Care Production, Inc. will make available to her clients;

• Payment via bank transfer
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for the purchase of our natural hair care products without any stress on their part.

13. Startup Expenditure (Budget)

When it comes to starting a natural hair care production company, the major areas that you are going to be spending the bulk of your cash is in the setting up a standard hair care production plan, purchase of distribution trucks and of course renting or leasing a well-located facility large enough fit into the design you have in mind.

Aside from that, you are expected to pay your employees, purchase of raw materials, maintaining your trucks and fueling. These are the key areas where we will spend our startup capital;

• The total fee for registering the business in the United States of America – $750 .
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300 .
• Marketing promotion expenses for the grand opening of Monica Nature® Natural Hair Care Production, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580 .
• The cost for hiring Business Consultant – $2,500 .
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400 .
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for construction of a standard natural hair care product plant – $100,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) .
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (raw material (essential oil) and labeling and packaging materials. et al) – $80,000
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase of distribution vans – $60,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000
• The cost of launching a website – $600
• Miscellaneous – $10,000

We would need an estimate of three hundred and fifty thousand dollars ($350,000) to successfully set up our natural hair care product plant in Fort Wayne – Indiana.

Generating Funds/Startup Capital for Monica Nature® Natural Hair Care Production, Inc.

Monica Nature® Natural Hair Care Production, Inc. is owned and financed by Monica Martins and her immediate family members. They do not intend to welcome any external business partners which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our start-up capital;

• Generate part of the startup capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers they have, the capacity and competence of their employees, their investment strategy and the business structure. If all these factors are missing from a business (company), then it won’t be too long before the business closes shop.

One of our major goals of starting Monica Nature® Natural Hair Care Production, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our natural hair care products a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Monica Nature® Natural Hair Care Production, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and construction of standard natural hair care product plant: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members and friends: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed equipment and machines such as oil extractor, blending, mixing and packaging, labeling and sealing machines, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress