business plan template for a salon

Free Hair and Beauty Salon Sample Business Plan PDF

Elon Glucklich

6 min. read

Updated February 7, 2024

Looking for a free,  downloadable hair and beauty salon sample business plan Word doc  or  PDF  to help you create a business plan of your own? Bplans has you covered.

Keep in mind that you don’t need to find a sample business plan that exactly matches your business. Whether you’re launching an upscale, full-service salon in a bustling city or a neighborhood barbershop, the details will be different, but the bones of the plan will be the same.

Are you writing a business plan for your salon because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company.

No two salons are alike. Your business model will be different if you’re renting space to independent hairstylists, rather than taking on employees, for example. So take the time to create your own financial forecasts and do enough market research so you have a solid plan for success.

• What should you include in a hair and beauty salon business plan?

Your hair and beauty salon business plan doesn’t need to be hundreds of pages—keep it as short and concise as you can. You’ll probably want to include each of these sections:

• Executive summary
• Company summary and funding needs
• Products and services
• Marketing plan
• Management team
• Financial plan

One of the things that makes a salon business plan different from some service-based business plans is that you might decide to offer a combination of products and services.

Maybe you’ll sell shampoo, beard oil, or other cosmetics and beauty products, in addition to offering services like haircuts, manicures, or massages. If that’s the case, make sure you include your ideas for upselling products to customers to increase the value of every appointment you book.

Here’s an example of a salon business plan outline.

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• The 7 elements of an effective hair and beauty salon business plan

1. Executive Summary

The  executive summary  provides a high-level overview of your business plan. It should outline the objectives of your hair and beauty salon, such as to offer high-quality services, to expand the client base, or to break into a new market.

Your salon’s mission statement should describe its purpose and what sets it apart from competitors. For example, you may aim to offer a personalized experience for each customer or provide eco-friendly hair and beauty services.

The keys to success are the factors that will help your salon thrive. These may include a prime location, hiring experienced staff, excellent customer service, or a unique product and service range.

2. Company Summary and Funding Needs

The company summary offers a detailed overview of your salon, including its legal structure , location, and history. Also, it highlights your salon’s funding needs if you are seeking financial support.

Clearly state how much funding you need, what you will use it for, and how it will benefit the salon. For instance, you may need funds to renovate the premises, purchase equipment, or boost marketing efforts.

3. Salon Products and Services

This section should detail the products and services your hair or beauty salon will offer. These may include haircuts, hair treatments, manicures, pedicures, massages, and beauty treatments.

If you plan to retail beauty products such as shampoos, conditioners, or skin care items, include this information too. Highlight any unique services or products that differentiate your salon from competitors.

4. Salon Marketing Plan and Analysis

Your marketing plan should outline the strategies you will use to attract and retain customers. These strategies might include social media advertising, loyalty programs, partnerships with local businesses, and special promotions.

Additionally, you should conduct a thorough market analysis. Understand your target customers, their preferences, and their spending habits. Identify your competitors, their strengths and weaknesses, and how you can differentiate your salon.

5. Salon Management Team

The management team section provides information about the salon’s key personnel. This could include the salon owner, managers, stylists, beauticians, and other staff members. Highlight their roles, responsibilities, qualifications, and experience.

If you plan to rent chairs to independent stylists rather than hiring employees, describe how this arrangement will work and the advantages it offers for your business.

6. Financial Plan and Forecasts

Your financial plan should present detailed financial projections, including revenue, costs, and profitability. Include a cash flow statement, income statement, and balance sheet. This section should clearly demonstrate the salon’s potential profitability and financial viability.

Also, outline your pricing strategy. How have you priced your services and products, and how do these prices compare with competitors? What are your wage costs, and how will they affect your profitability?

7. Appendix

The appendix includes any additional supporting documents that complement your business plan. This might be market research data, lease agreements, employee contracts, or licensing and permit documents.

While not always necessary, the appendix can provide valuable context and proof to support your business plan’s content.

• Crafting a Successful Salon Business Plan: Key Considerations

Understanding your target clientele’s needs is crucial to writing a hair or beauty salon business plan that you can put into action. To ensure your business plan is the foundation of a growing operation rather than just checking boxes, ask yourself whether you’re taking these considerations into account.

1. Comprehensive Services Offering

In the beauty industry, customer preferences vary significantly, and staying versatile in your offerings can help cater to a broader clientele. Include a wide range of services that cater to different demographics. You may also consider offering unique or specialized services that distinguish your salon from others.

2. Pricing Strategy

Pricing can make or break your salon. Competitive pricing attracts customers, but your pricing should also cover your costs and ensure profitability. Effective market research can help you understand the average cost of services in your area, which you can use to set your prices competitively.

3. Salon Atmosphere

The ambiance of a salon plays a significant role in attracting and retaining customers. Consider factors like décor, cleanliness, and customer service when planning your salon.

4. Staff Training and Expertise

Quality service is crucial in the hair and beauty industry since word-of-mouth exposure from existing clients is a major driver of new business. Investing in ongoing staff training ensures that your team stays updated with the latest trends, techniques, and customer service skills.

5. Digital Presence

Although word of mouth is one business driver, many of today’s customers research online before visiting a salon. Having a strong online presence, including a well-designed website, effective search engine optimization and active social media accounts, can significantly boost your business.

• Download your free hair and beauty salon sample business plan PDF

Download this  hair and beauty salon sample business plan PDF  for free right now, or visit Bplans’ gallery of more than  550 sample business plans  if you’re looking for more options.

There are  plenty of reasons  salon business owners can benefit from  writing a business plan —you’ll need one if you’re seeking a loan or investment.

Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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Beauty Salon Business Plan Template

Written by Dave Lavinsky

Beauty Salon Business Plan

You’ve come to the right place to create your beauty salon business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their beauty salons.

Below is a salon business plan example to help you create your own beauty salon business plan.

Executive Summary

Business overview.

Major Lengths Beauty Salon is a newly established hair and beauty bar located in Glendale, Arizona that is founded by Jenna Diaz, a local hair stylist and aesthetician that has worked in the industry for over 15 years. Jenna’s knowledge in hair, nail, and facial trends have made her a popular stylist in the community. As her client list continues to grow, Jenna realizes that it’s time for her to open up her own salon.

Major Lengths Beauty Salon will be located in Glendale’s upscale district in a 5,000 square foot retail space. The area is highly trafficked with middle to high income residents who spend on luxury items such as cars, clothes, jewelry.

The beauty salon will offer haircuts and treatments, facials, manicures, and pedicures. Major Lengths will also carry a large selection of hair and beauty products that will be available for purchase. Jenna will have a loyalty program where the top clients will receive discounts on their service as a thank you for remaining loyal and referring other potential clients to the salon.

Product Offering

The following are the services that Major Lengths Beauty Salon will provide:

• Color Treatment
• Healthy Hair Treatment
• Nail Services

Customer Focus

Major Lengths Beauty Salon will target the male and female adult population of Glendale, although the majority of clientele will be women. They will be middle to high income and working in a variety of industries, such as medical, legal, business, education, or other white collar professions. The salon will target stay at home mothers as well who enjoy a day of pampering.

Management Team

Major Lengths Beauty Salon will be owned and operated by Jenna Diaz, a local Arizona hair stylist and aesthetician. Her years of experience and in the industry have allowed her to meet the following talented individuals.

Jenna has recruited a talented nail technician and aesthetician from her previous salon to join her at Major Lengths. Jenna regards them as the best in the industry and knows that their quality of work is up to her high standards. They also have a loyal and large list of clients that will likely follow them to the new salon.

While the three of them will be in charge of their respective department, Jenna will be the head manager to oversee the entire operation of the beauty salon.

Success Factors

Major Lengths Beauty Salon will be able to achieve success by offering the following competitive advantages:

• Latest hair and nail trends
• Modern and comfortable environment
• More selection of each service offered than any other salon in town
• Major Lengths Beauty Salon offers the best pricing in town

Financial Highlights

Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon. The funding will be dedicated towards securing the retail space and purchasing the salon furniture, equipment, decorations, opening inventory, and working capital. The breakout of the funding is below:

• Beauty salon build-out: $30,000
• Opening inventory, furniture, equipment, decorations:  $40,000
• Three months of overhead expenses (payroll, rent, utilities):  $15,000
• Marketing costs: $5,000
• Working capital:  $10,000

  The following graph below outlines the pro forma financial projections for Major Lengths Beauty Salon.

Company Overview

Who is major lengths beauty salon.

Major Lengths Beauty Salon is a newly established hair and beauty bar located in Glendale, Arizona. The company is founded by Jenna Diaz, a local hair stylist and aesthetician that has dedicated her career to making women look and feel their best. Throughout her years in the beauty industry, Jenna gained extensive knowledge in hair, nail, and facial trends as well as how to give exceptional customer service to all of her clients. Jenna realizes that men and women invest a lot of time and money into their appearance and she takes extra care to ensure her clients not only feel special, but walk away with their desired result.

Major Lengths Beauty Salon will be located in Glendale’s upscale district in a 5,000 square foot retail space. The area is highly trafficked with middle to high income residents who spend on luxury items such as cars, clothes, jewelry. Some of Arizona’s most expensive homes are within a 15-mile radius from the location. The salon will be decorated with a contemporary style, have modern furnishings, and include a welcoming waiting and reception area, large hair styling room, and separate areas for facials and nail services.

Major Lengths Beauty Salon History

Major Lengths is owned and operated by Jenna Diaz, a local hair stylist and aesthetician who has made her career working in the beauty industry for the past 15 years in Glendale. She has gained extensive knowledge through her continuing education and industry seminars. Jenna has a long list of loyal clientele who will follow her to her new salon. Aside from her beauty salon knowledge and expertise, Jenna has taken local business courses to learn salon management and leading a small team of stylists, manicurists, and aestheticians.

Since incorporation, Major Lengths Beauty Salon has achieved the following milestones:

• Registered Major Lengths Beauty Salon, LLC to transact business in the state of Arizona.
• Has obtained the necessary salon permits and licenses for the state of California.
• Has a lease contract in place for the 5,000 square foot beauty salon.
• Has developed the complete list of salon services and products.
• Has developed the beauty salon’s logo and branding image.
• Began recruiting a team of stylists, manicurists, and nail technicians.

Major Lengths Beauty Salon Products

The following will be the services Major Lengths Beauty Salon will provide:

Industry Analysis

The Beauty Salon industry is expected to increase in size by 2.5% over the next five years. Demand for industry services mirrors broader economic performance, as economic growth boosts consumer spending on personal care products and services. Specifically, new products and services have favorably contributed to industry revenue growth over the majority of the past five years.

Online platforms such as Instagram and Facebook have provided a convenient and low-cost marketing strategy for many stylists and technicians to garner new clientele. Higher service prices and increased consumer spending on high-margin merchandise and services have also fueled revenue growth, as operators capitalize on rising per capita disposable income. Continued growth in household income over the outlook period is expected to drive consumer spending and boost demand for premium personal care services. Moreover, equipped with larger budgets, consumers will likely continue to favor professional salon products and services, such as hair coloring services, over less expensive alternatives sold at drugstores and supermarkets. Environmental sustainability concerns are expected to become more prevalent over the next five years, leading salons to offer a wider array of eco-friendly products that appeal to trending consumer preferences. Specifically, nontoxic products will likely benefit industry revenue, staff and patrons. This growing niche will likely drive hair salon revenue over the coming years.

Customer Analysis

Demographic profile of target market.

The precise demographics for Glendale, Arizona are:

Customer Segmentation

Major Lengths Beauty Salon will primarily target the following customer profiles:

• Stay at home mothers and fathers
• Working professionals
• College students
• Retired females
• Mothers with adult or teenage daughters

Competitive Analysis

Direct and indirect competitors.

Major Lengths Beauty Salon will face competition from other companies with similar business profiles. A description of each competitor company is below.

Hair Xtreme

Hair Xtreme is located on the west side of Glendale and is owned by a local hair stylist with over 30 years of experience. Hair Xtreme specializes in haircuts and hair coloring services as well as hair color correction. The owner is also certified in Balayage highlighting by the prestigious L’oreal SOHO Academy. Hair Xtreme Beauty Salon was established to create a higher level of service in the Glendale community and has amassed a large clientele. The salon is regarded as the go-to salon for anyone looking for extreme color or haircut transformation. The pricing of services are on the higher end of the spectrum and caters to the community in the middle to higher income range.

Hair Xtreme Beauty Salon’s full list of services include haircuts, balayage, ombre, highlights, color retouch, hair treatments, and special occasion styles. The salon is open Tuesday through Saturday and is by appointment only.

The Complete Package

The Complete Package is not only a hair and nail salon in Glendale, but also provides massage treatment, eyelash extensions, and body treatments. The salon is moderately priced and leans to be more affordable to target the population who doesn’t spend lavishly on beauty services, but also occasionally like to get pampered. Owned and operated by a mother and daughter team of hair stylists, The Complete Package is located in a small retail shopping center in the middle of the city. The salon has been in operation for over 20 years and was founded by Kate Beneducci. She was able to bring The Complete Package into operation due to her experience and background in cosmetics, marketing, and management. Every single stylist is a certified cosmetologist and are all required to attend a mandatory training every year to learn the latest techniques.

The Complete Package’s full list of salon services include hair, makeup, eyelash extensions, and nails. The full list of spa services include waxing, facials, microdermabrasion, massage, and body treatments. The salon regularly posts promotions to increase customer loyalty. The Complete Package is open daily by appointment and is able to take walk-ins Friday through Sunday.

Fringe Beauty Salon and Spa

Fringe Beauty Salon and Spa is located on the west side of Glendale, Arizona and was established in 2013 as a premier beauty salon. Fringe caters to the higher income clientele and their pricing is the most expensive in town. The owner relocated to Glendale to start her own beauty salon after working in the beauty industry in New York and Los Angeles for many years. She did hair and salon services for many celebrities and has been known to be the stylist for awards shows such as the Emmys and Oscars.

As a Glendale native, she relocated to her hometown to provide a higher quality of salon services to the community. The full list of services for Fringe Beauty Salon include haircuts, hair treatments, hair color, balayage, ombre, special occasion, manicures, pedicures, massage, facials, eyelash extensions, waxing, and makeup.

With a luxury atmosphere and relaxing spa environment, Fringe Beauty Salon and Spa is frequently booked for those wanting a full day of pampering.

Competitive Advantage

Major Lengths Beauty Salon will be able to offer the following advantages over their competition:

• Friendly and knowledgeable staff who are all trained and experienced in the latest hair and beauty trends.
• Complete list of beauty salon services intended to provide a full day of pampering and relaxation.
• Casual and comfortable environment with a luxurious feel.
• Major Lengths Beauty Salon offers the best pricing in town for the high quality of services provided. Their pricing structure is the most cost effective compared to the competition.

Marketing Plan

Brand & value proposition.

Major Lengths Beauty Salon will offer the unique value proposition to its clientele:

• Complete list of beauty salon services all provided by trained and knowledgeable hair stylists, manicurists, and aestheticians.
• Pricing is affordable and moderate so customers perceive value when visiting the beauty salon.

Promotions Strategy

The promotions strategy for Major Lengths Beauty Salon is as follows:

Website/SEO Marketing

Major Lengths Beauty Salon has hired an advertising firm to develop their branding image and logo. They will also develop the hair salon’s website. The website will include a full list of services, pricing, and pictures. The advertising company will also manage the company’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Glendale beauty salon” or “beauty salon near me”, Major Lengths Beauty Salon will be listed at the top of the search results.

Word of Mouth/Referrals

Jenna Diaz has a long list of loyal clients that have been with her for decades. They will follow her to the new salon and will receive additional clients from their referrals.

Social Media

Once the branding and logo is finalized, Jenna will use social media to her advantage and create social media business pages on all of the popular social media platforms. She will commit to posting daily to increase the list of followers and use it to regularly engage with customers.

Print Advertising

Major Lengths Beauty Salon will invest in professionally designed print ads to display in local magazines and hand out flyers to local businesses.

The pricing of Major Lengths Beauty Salon will be moderate and on par with competitors so customers feel they receive value when purchasing their salon services.

Operations Plan

The following will be the operations plan for Major Lengths Beauty Salon.

Operation Functions:

• Jenna Diaz will be the Owner and Manager of the beauty salon. She will order salon inventory and products, oversee staff, payroll, and manage customer service.
• Melanie Brooks – Head nail technician that will oversee the nail department.
• Fiona Adams – Head aesthetician that will oversee the facial and massage departments.
• Jenna has hired third party companies to manage the bookkeeping, accounting, tax payments, insurance, and legal requirements.

Milestones:

Major Lengths Beauty Salon will have the following milestones complete in the next six months.

8/1/202X – Finalize retail space for beauty salon

8/15/202X – Begin build-out of beauty salon to include stylist stations, facial and massage rooms, and nail service area

9/1/202X – Order opening inventory

9/15/202X – Begin marketing campaign

9/22/202X – Hire staff of hair stylists, nail technicians, massage therapists, and aestheticians

10/1/202X – Major Lengths Beauty Salon Grand Opening Event

Major Lengths Beauty Salon will be owned and operated by Jenna Diaz, a local Arizona hair stylist and aesthetician. Jenna has made an impressive career helping women achieve their desired look and feel. As an Arizona native, Jenna has attended the local beauty college and attends industry trade shows and training seminars annually. She has amassed a large and loyal clientele and has even done hair treatments, cuts, and facials for local celebrities and sports personalities. Jenna is committed to establishing a beauty salon in her hometown of Glendale and making it a place where the women and men flock to when they want the latest hairstyle, manicure, or facial.

While the three of them will be in charge of their respective department, Jenna will be the head manager to oversee the entire operation of the beauty salon. She will also outsource a third party insurance company, CPA, and attorney to take care of her insurance, legal obligations, and tax filings. Jenna will also employ a part time bookkeeper to handle her day to day accounting and payroll of staff.

Financial Plan

Key revenue & costs.

The revenue drivers for Major Lengths Beauty Salon are the sales from hair services, nail services, massages and facials.

The cost drivers will be the overhead costs required to staff the beauty salon. The expenses will be the payroll cost, rent, utilities, salon inventory, and marketing materials.

Funding Requirements and Use of Funds

Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon. The funding will be dedicated towards securing the retail space and purchasing the salon furniture, equipment, decorations, opening inventory, and working capital. Jenna will need to allocate funds for the first three months of payroll and operating expenses as well as spend approximately on branding and marketing. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Beauty Salon Services Sold Per Month: 300
• Average Revenue per Month: $20,000
• Beauty Salon Lease per Year: $110,000

Financial Projections

Income statement, balance sheet, cash flow statement, beauty salon business plan template faqs, what is a beauty salon business plan.

A beauty salon business plan is a plan to start and/or grow your beauty salon. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your beauty salon business plan using our Beauty Salon Business Plan Template here .

What are the Main Types of Beauty Salons?

There are a number of different kinds of beauty salons, some examples include: Beauty salon focusing strictly on hair styling, beauty salon offering hair removal services, skin care services, nail services, tanning services, or massage services, and beauty salon offering products.

How Do You Get Funding for Your Beauty Salon Business Plan?

Beauty salons are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for a beauty salon or a hair salon business plan.

Why do You Need a Business Plan Template?

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

Where Can I Get a Beauty Salon Business Plan PDF?

You can download our free beauty salon business plan template PDF here . This is a sample beauty salon business plan template you can use in PDF format.

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Hair Salon Business Plan

Cutting and styling hair is an art not many are adept with.

After all, it takes more than artistic talent to give cuts that suit different hair. And if you are someone who has this talent, then you might have thought of having your hair salon business.

Having your hair salon business is possible and just requires two things for success. That is, skills to make people’s hair look pretty and a hair salon business plan .

Here are a few facts about the hair salon industry and steps to setting up your business. But at the same time, the prospect of having a business is overwhelming to many of us. You don’t need to worry, though!

Industry Overview

The spa and salon market stood at an impressive value of $138.9 billion in 2020, and as people continue to return to salons after the pandemic, the market’s value is expected to rise at a higher rate.

The rise in personal care and beauty spending is one of the major reasons for the growth of the hair salon industry.

Apart from beauty purposes, hair salon businesses have also seen a rise due to the increasing demand for hair care services.

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Things to Consider Before Writing a Hair Salon Business Plan

Find your usp.

A hair salon gives several services including cutting, coloring, styling, and hair care. Apart from that, your customer service, prices, and a lot of other things make your services a package deal for your customers.

But out of everything that makes up your business, you have to do something that you do differently or better than your competitors. This would help you stand out and become memorable to your customers.

Build your client base

Although this is an ongoing process, getting a head start with building your client base is essential. Know what sources you can use to reach out to your clients, what makes them pick a hair salon service, what makes them come back, and so on.

Knowing these things gives you an edge over businesses that dive right in without an action plan.

Find the ideal location

The ideal business location will be both accessible and functional. A good location for a hair salon would be either located in a busy neighborhood or a place that people frequent between home and work.

A good location makes accessing your services more convenient and hence more in demand.

Design your salon for both form and function

Although, it is advisable to hire a designer to design your salon in a way that is functional and also looks appealing. But cash crunches, startup costs, and whatnot might leave lesser scope for a designer in your budget.

In such a case, you can design your salon with the help of catalogs, outside inspiration, and your creativity to make it as functional as possible and build upon and redesign it as your business grows.

Writing Your Business Plan

If you are planning to start a new hair salon business, the first thing you will need is a business plan. Use our sample hair salon business plan created using upmetrics business plan software to start writing your business plan in no time.

Before you start writing a business plan for your new hair salon business, spend as much time as you can reading through some samples of hair and beauty salon business plans .

Reading some sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample hair salon business plan for you to get a good idea about how perfect a hair salon business plan should look and what details you will need to include in your stunning business plan.

Hair Salon Business Plan Outline

This is the standard hair salon business plan outline which will cover all important sections that you should include in your business plan.

• Business Overview
• Our Services
• Goals and Objectives
• Keys to Success
• Katarzyna Doe
• Legal Business Description
• Hiring Plan
• Products & Services
• Market Trends
• Target Market
• Market Analysis
• Customer Profile
• Competitive Summary
• Competitive Advantage
• Sales & Marketing Strategy
• Sources of Income
• Sales Forecast
• Pricing Strategy
• Publicity and Advertising Strategy
• Personnel Plan
• Startup Costs
• Important Assumptions
• Profit & Loss Projections
• Balance Sheet Projections
• Cashflow Statement
• Business Ratios

After  getting started with Upmetrics , you can copy this hair salon business plan example into your business plan and modify the required information and download your hair salon business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample hair salon business plan

Need help writing your business plan from scratch? Here you go;  download our free hair salon business plan pdf  to start.

It’s a modern business plan template specifically designed for your hair salon business. Use the example business plan as a guide for writing your own.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How To Create a Successful Salon Business Plan in 10 Steps [+ Template]

Looking to open your own salon? Despite a looming recession, it’s a great time to do so — beauty industry statistics show the salon industry grew about 17 percent in 2022 , and the majority of Americans claim they’re not planning to cut back on beauty spending anytime soon. 

But before you start rounding up clients, you will need a thorough salon business plan to align your goals. While it may be tempting to jump in on the action as soon as possible, taking the time to plan your business properly will set you up for success in the long run. From market analyses to advertising campaigns, we’ll walk you through everything you need to know to create a winning salon business strategy.

1. Create your mission and vision statement

First things first — what are you planning to do with your new salon business? To answer this question, you’ll need to put some serious thought into your mission and vision statements. These statements articulate the purpose and goals of your salon and will guide the rest of your business plan.

Mission vs. vision statements

While mission and vision statements are often used interchangeably, there are differences between the two. It’s recommended that a new business have both statements before laying out its business plan.

A mission statement describes the short-term goals of the company — essentially defining the core purpose of the company and how it plans to achieve that purpose. Let’s break down this example of a salon’s mission statement:

Mission Statement

“We strive to offer our clients the highest-quality cuts at affordable prices because every woman deserves to look and feel her best.”

In this example, the business plans to offer high-quality cuts at affordable prices — the “what” and “how” —  because they believe “every woman deserves to look and feel her best” — the “why,” or core purpose.

The mission statement serves as a roadmap to achieving your business’s vision statement.  A vision statement defines your salon’s big-picture aspirations — the driving force behind your short-term actions and goals. Here’s a vision statement the example salon above might write:

Vision Statement

“We strive to expand our services nationwide as the premier choice for affordable, high-quality cuts.”

This example clearly states the business’s future goals to help define the path toward future success.

2. Know your market

Before you open your doors, you need to know who you’re opening for (your target audience) and what salons you’re up against (your competitors). Both will provide valuable information to help you determine what your clients value most .

Recognize your target audience

Your target audience is a particular group of people who may be interested in your services. A target audience profile can be broken down into four main characteristics:

• Demographic: The main characteristics of your target market, including age, income level, gender, occupation, and education level
• Geographic: Where your audience lives, works, or travels 
• Psychographic: Your target audience’s lifestyle, attitude, interests, and values
• Behavioral:  What your ideal clients want, why they want it, and how they go about achieving their needs

Let’s face the facts — everyone and their mom could use a cut and color. It’s up to you to determine who to market your business to. Are you most interested in serving the most high-end clientele, or would you rather cater to college students looking to experiment with fun, trendy styles? Will the area of town you’re located in affect how you position and price your services? 

Knowing your target audience will influence every stage of your business plan, so it’s essential you recognize what their needs and motivations are from the start.

Conduct a market analysis

Analyzing your salon’s target audience is just the first step in breaking down your target market. To truly get a comprehensive view of your business landscape, you’ll want to conduct a market analysis. 

A market analysis is a thorough assessment of your specific market within the salon industry. In addition to defining your target market, a market analysis should include:

• Potential clients’ buying habits
• The size of your target market
• The state of the industry and industry projections
• How much your potential clients are willing to pay for your services
• Who your main competitors are
• Your competitors’ strengths and weaknesses

A thorough market analysis is essential for reducing risks, identifying emerging trends and opportunities, and projecting revenue. It’s good practice to reevaluate your findings annually and adjust your salon’s business plan accordingly. Plus, you’ll be able to factor in actual customer feedback once your doors are open.

Take advantage of free market research tools like Google Trends, SurveyMonkey, and data from the Bureau of Labor Statistics and U.S. Census to aid in your market research strategy.

3. Identify your strengths, weaknesses, opportunities, and threats

With a better understanding of how you plan to position your salon within your target market, you’re ready to dive into your first SWOT analysis. A SWOT analysis is a compilation of internal and external factors that will impact your business.

Internal factors are resources and experience readily available to you — they’re categorized as either strengths or weaknesses. Examples of internal factors to include in your SWOT analysis are:

• Financial resources
• Physical resources
• Human resources
• Natural resources
• Trademarks, patents, and copyrights 

Your opportunities and threats are defined by external factors, such as:

• Market trends
• Economic trends
• Demographics
• Suppliers and partners
• Political, environmental, and economic regulations

Once you’ve completed the SWOT framework, create an innovative business strategy that will leverage your strengths and opportunities to overcome your weaknesses and threats. The SWOT analysis compels you to take a methodical and objective look at where you stand now and what you need to do to succeed.

4. Draft your salon’s executive summary

With your target market and new industry knowledge in mind, it’s time to create the most important part of your salon business plan: the executive summary. 

An executive summary is a short synopsis of your overall business plan and intentions for your new salon. Don’t let its size fool you — your executive summary is the first impression business partners and investors will have of your business. While it may be brief,  your executive summary must make an impact.

Business strategy experts agree that an executive summary should be between 5 and 10 percent of the length of your entire business plan.

What to include in your executive summary

A solid salon executive summary will provide a ton of useful information condensed into a short, sweet, and easy-to-understand package. Try your best to tie in the following when drafting your summary: 

• Strong introduction: If you want to capture your reader’s attention immediately, you’ll want to put together an introductory paragraph that not only pulls them in, but explains who you are, what you offer, and what problems you intend to solve. Keep your intro short and concise.
• Market view: Based on your market research analysis, briefly summarize the state of your target market, the needs of your target audience, and how you plan to position your salon amongst your competitors. 
• Unique selling points: What will your salon bring to the table that’ll set it apart from competitors? List any unique selling points that customers and stakeholders will find valuable. 

Financial expectations and forecasts: If you plan on sharing your business plan with potential investors or stakeholders, list the projected expenses and costs it’ll take to open and operate your salon, as well as what profits you expect to generate within the first six months. Explain why your salon needs financing and why investing in your business is a smart move.

5. Write your salon’s unique business description

Congratulations on completing the research portion of your salon business plan — it’s finally time to start bringing your dream salon to life! 

First and foremost, you’ll need to figure out how to brand your salon. There are almost a million registered hair salons in the U.S., so how can you make yours stand out?

Start by drafting your salon’s business description — this should set the scene for what customers can expect when walking into your salon. Are you hoping to give off a funky, casual vibe? Or maybe a more elegant ambiance, champagne included? The tone of your business description should convey this, as well as:

• Services you specialize in
• Packages or perks you offer
• Unique selling points that distinguish you from other salons

With a business description in place, you can now create a company logo and tagline to complete your new brand!

6. List your products, services, and prices

Let’s get down to the nitty-gritty — what are you offering, and how much will it cost? While you may be able to do it all, some services will pay off better than others. You may be doing yourself a disservice if you purchase all the supplies for perms when your clients want blowouts. 

To determine which services and products will benefit your business the most, ask yourself the following questions:

• What is my target audience interested in?
• What do I have experience in?
• What is trending?
• What are my competitors offering (or more importantly, what are they not)?

Once you have your service list set, you’ll need to calculate pricing . Striking a balance between making a stellar profit and attracting and retaining clients is one of the most difficult parts of running any business. Consider these factors when determining a fair price for your salon services:

• Similar rates in your area
• Cost and use of supplies
• Time spent on the service
• Your experience level

Review and reevaluate your services and pricing at least once a year to ensure you’re charging your worth. Cost of living, supply costs, and any additional training you may have undergone warrant a price change — just be sure to notify your loyal regulars before new pricing goes into effect.

7. Lay out your salon’s operation and logistics plan

While the earlier sections of your salon’s business plan defined your goals, your operation and logistics plan will detail how you plan to meet them. Your operations plan will have two sections:

• Short-term processes: List all the tasks, employees, vendors, software, and supplies you’ll need to run your salon on a day-to-day basis.
• Long-term milestones: Describe what you hope to achieve in the future. For new businesses, this could include the date you plan to finalize your lease, your grand opening date, or the date you hope to reach your first $100,000 in sales. 

Putting together your operations and logistics plan may make you realize just how much work goes into running a salon. Scheduling appointments, promoting your new business, managing payment processes, and tracking down no-shows on top of actually performing your services can get really overwhelming, really fast. Learn how StyleSeat can help you manage and grow your business so you can focus on what you do best.

8. Define your marketing and outreach strategy

No matter how much effort you put into designing your salon, acquiring top-of-the-line tools, or hiring the best stylists in your area, no one’s going to schedule an appointment at your salon if they don’t know you exist. That’s where your salon marketing and advertising strategy comes into play.

While there are literally thousands of way to bring attention to your salon, these marketing and outreach tactics are tried and true:

Build a website

Whether you’re targeting tech-savvy Gen Zers or old-school baby boomers, you’ll need to ensure your business is Google-able. Building your website should be the first step in creating your online presence. For the best customer experience, make sure to include your salon’s:

• Contact information and address 
• Services and pricing
• Unique selling points and mission statement
• Customer reviews and testimonials
• Links to social media profiles

Invest in social media marketing

Harness the power of Instagram , Facebook, TikTok, Pinterest, and more with a dedicated social media marketing and influencer strategy. Sharing behind-the-scenes content, before and after photos, and happy customer reactions can make your business appear more personable and reputable. It’s also a great way to boost engagement, interact with your client base, and cultivate brand awareness.

Studies Show

44 percent of beauty salons were focused on growing their social media profiles in 2022, and 35 percent of stylists claim their growing social following was their biggest opportunity for business growth.

Establish rapport and build customer loyalty

Convincing a potential customer to give a new hairstylist a try is a lot more difficult than it seems. One way to sweeten the deal is to offer first-service discounts or lower prices the first few months to get interested clients through the door . If they’re happy with your service, they’ll likely stay — especially if you have a loyalty program in place that offers discounts and perks for regular customers!

8. Get your finances in check

If you’ve already set your prices, take a bow — the hardest part of your salon’s financing strategy is already done. However, you’ll need to take your money a step further to get a rough idea of how your business will progress on a monthly and annual basis. This is especially important if you plan on applying for a loan or seeking investors. 

It may be best to put together your full financial statement three to six months after opening your salon. It should include your income statement, balance sheet, and cash flow statement so you and your stakeholders can get a better understanding of your salon’s financial health. 

Income statement

Your income statement lists both your revenue sources, expenses, and net income over a given period of time. This should include:

• Cost of sales
• Administrative expenses
• Operating expenses
• Non-operating income and expenses
• Gains and losses
• Non-recurring items

If you haven’t opened your salon yet, you can project future milestones with the same information.

Balance sheet

Your balance sheet provides a look at how much equity you have in your business. It consists of two parts:

• Business assets: What you own, such as cash, accounts receivable, inventory, prepaid expenses, or salon supplies  
• Liabilities: What you owe, including loans, credit card balances, payroll taxes, accounts payable, and your lease 

Once you’ve listed your salon’s business assets and liabilities, you can calculate your shareholder equity by subtracting the total value of your liabilities from your assets.

Cash flow statement 

Your cash flow statement will help you see when cash is low, when you have a surplus, and when you might need to access funding to keep your business afloat. Your cash flow statement lists revenue and expenses similar to your income statement, but it also takes into account when revenue is collected and when expenses are paid. 

Your cash flow is positive when you have more cash coming in than you have going out, and negative when the opposite is true.

Using graphs to visualize your cash flow can help you forecast when you may need to adjust operations to account for negative cash flow.

10. Plan for the future

With a well-structured business plan in hand, you’re ready to take on whatever the market has in store for you — at least for the first six months. But if you want to stay on top of industry fluctuations, the newest marketing trends, or competitor announcements, consistently review your salon business plan and company goals.

Salon business plan template

Opening a new salon requires a lot of moving parts — from remodeling your space to hiring your A-team, putting together your actual business strategy can get lost in your to-dos. Download this free helpful template to streamline your business plan and keep your goals top of mind.

The average profit margin for salons is 8.2 percent — 0.5 percent higher than the general business average of 7.7 percent. Salon owners in the U.S. can expect to make between $14,441 and $385,332, with an average salary of $74,699.

The startup cost for your salon will depend on a number of factors, including the type of salon, location, size, number of employees, and type of clientele you’re hoping to attract. Expect to spend anywhere from $10,000 to $200,000 before your grand opening.

Salons can make more money by implementing an effective marketing and advertising strategy, running promotions and contests, and reevaluating their pricing structure. Research your industry, emerging trends, and your competitors’ strategies for inspiration.

A thorough salon business plan can help you determine your short- and long-term goals, resources required, and effective strategies to drive business to your salon. Ready to hit the ground running? StyleSeat can help you manage and grow your new salon — no monthly fee required.

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Salon Business Plan Template

Our easy-to-use template is designed to help you create a professional and effective business plan for your salon. With a clear and simple format, you can create a solid plan to impress your lenders and other stakeholders!

Get the salon business template here:

Are you looking to start a salon business, but don't know where to begin? Look no further than our free salon business plan template. Our easy-to-use format is designed to help you create a professional and effective business plan in no time.

With our template, you can develop a detailed roadmap for success that will impress potential investors and stakeholders. The template includes sections for executive summary, market analysis, competitive analysis, marketing and sales strategies, and financial projections. Each section is clearly labeled and provides prompts and examples to guide you through the process.

Our salon business plan template is not only easy to use, but it is also customizable to your unique business needs. You can add or remove sections as needed and adjust the prompts to fit your specific business goals. With our template, you can create a personalized plan that aligns with your vision and sets you up for success.

In addition to the template itself, we also offer helpful resources to guide you through the planning process. Our website includes articles and guides on topics such as conducting market research, developing a marketing plan, and creating financial projections. With our comprehensive resources and customizable template, you'll have everything you need to create a successful salon business plan.

Don't let the idea of creating a business plan overwhelm you. Our salon business plan template makes the process simple and stress-free. With its clear and concise format and customizable prompts, you can create a professional and effective plan in no time. Download our free template today and get started on your journey to salon business success.

Salon Business Plan Frequently Asked Questions

Q: Why do I need a salon business plan?

A: A salon business plan is essential to securing funding and setting yourself up for success. It provides a detailed roadmap for your business, outlines your financial projections, and helps you identify potential challenges and opportunities.

Q: How do I use a salon business plan?

A: A salon business plan is a living document that should be referred to regularly as you work to grow your business. Use it to track your progress, adjust your strategies, and set new goals as you meet your previous ones. But the primary use of business plans are to outline your gameplan in order to earn the confidence of potential funders.

Q: How can I make my salon business plan stand out?

A: To make your salon business plan stand out, focus on providing clear and concise information, including market research, competitive analysis, and financial projections. Additionally, highlight what sets your salon apart from the competition and make sure to convey your passion and enthusiasm for the business.

Q: How do I determine my financial projections?

A: Determining your financial projections requires a thorough understanding of your expenses and revenue potential. This may involve researching industry benchmarks, analyzing your market, and forecasting your sales and expenses over a certain period. You can use this salon financial projection template to make the process easy and accurate.

Q: Can I create a salon business plan on my own?

A: Yes, with the help of our salon business plan template, you can easily create a professional and effective plan on your own. Our template provides customizable prompts and examples to guide you through the process, and our website offers additional resources to support your planning efforts.

We Know a Good Business Plan When we See One

Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.

Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.

Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.

Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.

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Business Plan Template for Beauty Salon

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Planning to open or manage a beauty salon can be an exciting endeavor, but it also requires careful planning and strategy. That's where ClickUp's Business Plan Template for Beauty Salon comes in handy!

Our comprehensive template is specifically designed for entrepreneurs in the beauty industry, helping you outline every aspect of your salon's vision, target market, services offered, marketing strategies, financial projections, and operational details. With this template, you'll be able to attract investors, secure financing, and set yourself up for success.

From defining your unique selling proposition to analyzing market trends, our Business Plan Template for Beauty Salon has got you covered. Get started today and turn your salon dreams into a reality!

Business Plan Template for Beauty Salon Benefits

When it comes to opening or managing a beauty salon, having a solid business plan is essential. With ClickUp's Business Plan Template for Beauty Salon, you can:

• Clearly outline your vision and goals for your salon
• Identify and target your ideal market, ensuring you reach the right audience
• Detail the services you will offer, showcasing your unique offerings
• Develop effective marketing strategies to promote your salon and attract clients
• Create accurate financial projections, helping you secure financing and manage your budget
• Plan out the operational details of your salon, ensuring smooth day-to-day operations
• Increase your chances of attracting investors and achieving long-term success

Main Elements of Beauty Salon Business Plan Template

When it comes to planning your beauty salon business, ClickUp's Business Plan Template has got you covered with all the essential elements:

• Custom Statuses: Track the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Add important details to your business plan with custom fields like Reference, Approved, and Section, allowing you to easily organize and categorize your information.
• Custom Views: Access different perspectives of your business plan with views like Topics, Status, and Timeline to keep track of tasks, monitor progress, and plan your timeline effectively.
• Collaboration and Communication: Utilize ClickUp's features like comments, notifications, and reminders to collaborate with your team, get feedback, and ensure everyone is on the same page.
• Getting Started Guide: ClickUp's Business Plan Template comes with a pre-built Getting Started Guide view, providing you with step-by-step instructions on how to make the most of the template and create a comprehensive business plan for your beauty salon.

How To Use Business Plan Template for Beauty Salon

Starting your own beauty salon can be an exciting venture, but it's important to have a solid business plan in place. Follow these six steps to use the Business Plan Template for Beauty Salon in ClickUp:

1. Define your vision and mission

Begin by clearly articulating the vision and mission of your beauty salon. What is the purpose of your business? What specific services and experiences do you want to offer to your clients? This step will help you establish a strong foundation for your business plan.

Use a Doc in ClickUp to outline your vision and mission statements for your beauty salon.

2. Conduct market research

Before diving into the details of your business plan, it's crucial to understand your target market and the competitive landscape. Research the beauty industry in your area, analyze the demographics of your potential customers, and identify your competitors. This information will help you make informed decisions about pricing, marketing strategies, and service offerings.

Create custom fields in ClickUp to track your market research data and organize it for easy reference.

3. Develop your service offerings

Based on your market research and your own expertise, determine the range of services you will offer at your beauty salon. Consider services such as haircuts, styling, coloring, manicures, pedicures, facials, and waxing. Determine the pricing structure for each service and any packages or promotions you may offer.

Use tasks in ClickUp to create a list of your services and assign pricing and package details.

4. Outline your marketing plan

To attract and retain clients, you'll need a strong marketing strategy. Identify your target audience, and develop a plan for reaching them through various channels such as social media, local advertising, partnerships, and events. Outline your marketing budget and set goals for customer acquisition and retention.

Use the Calendar view in ClickUp to plan and schedule your marketing campaigns and track their effectiveness.

5. Create a financial forecast

Building a financial forecast is a critical step in your business plan. Estimate your startup costs, including equipment, supplies, rent, and licenses. Project your revenue based on your service offerings and pricing. Calculate your monthly expenses, including staff wages, utilities, and marketing costs. Finally, determine your break-even point and set goals for profitability.

Use Dashboards in ClickUp to create visual representations of your financial forecast and track your progress.

6. Review and revise

Once you've completed your business plan, take the time to review it thoroughly. Ensure that all the information is accurate and aligns with your vision and goals. Seek feedback from mentors or industry experts, and make any necessary revisions. A well-developed and regularly updated business plan will serve as a roadmap for your beauty salon's success.

Set a recurring task in ClickUp to review and update your business plan regularly, ensuring that it remains relevant and guides your decision-making process.

Get Started with ClickUp’s Business Plan Template for Beauty Salon

Entrepreneurs planning to open or manage a beauty salon can use the ClickUp Business Plan Template to create a comprehensive and professional business plan that covers all aspects of their salon.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a successful beauty salon:

• Use the Topics View to outline and organize different sections of your business plan, such as Executive Summary, Market Analysis, Marketing Strategy, Financial Projections, and more.
• The Status View will help you track the progress of each section of your business plan, with statuses like Complete, In Progress, Needs Revision, and To Do.
• The Timeline View will give you a visual representation of the deadlines and milestones for your business plan, allowing you to stay on track.
• The Business Plan View provides a comprehensive overview of your entire business plan, allowing you to easily navigate and review all sections.
• The Getting Started Guide View will provide you with step-by-step instructions and tips on how to use the template effectively.
• Use custom fields like Reference, Approved, and Section to add additional information and categorize different sections of your business plan.
• Collaborate with team members and stakeholders to gather input, feedback, and revisions to ensure a thorough and well-rounded business plan.
• Monitor and analyze the progress of your business plan to make necessary adjustments and ensure its success.
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Salon Business Plan Template [Updated 2024]

Salon Business Plan

If you want to start a salon business, including a hair salon or beauty salon, or expand your current salon, you need a business plan.

The following salon business plan template gives you the key elements to include in a winning business plan. It can be used to create a beauty salon business plan, a hair salon business plan, a salon suite business plan or a plan for any other type of salon.

You can download our Beauty Salon business plan template (including a full, customizable financial model) to your computer here.

Sample Salon Business Plan

The sample business plan template below will help you write a business plan for your own beauty or hair salon business.

I. Executive Summary

Business overview.

[Company Name], located at [insert location here] is a brand-new, upscale hair salon focusing on providing high-quality, full-service hair care to the surrounding community. Our product and service lines fit nicely with the prevailing tastes and preferences of the local area – middle class suburbanites want quality hair care, but don’t want to pay luxury prices for it.

Products and Services

[Company Name]will provide relationship-oriented haircutting services for all ages and both genders. Haircutters will focus on building long-term rapport with their clients and strive to deliver personalized beauty results for each individual.

All manner of special treatments will be available—including perms, extensions, coloring, and styling for special occasions (weddings, proms, etc.)

In addition to providing these services, [Company name] will also be a retailer of exclusive hair care products. Customers will find products at [Company name] that they won’t find in grocery stores.

Customer Focus

[Company Name] will primarily serve the residents within a 5 mile radius of our location. The demographics of these customers are as follows:

• 27,827 residents
• Average income of $74,700
• 58.9% married
• 49.6% in Mgt./Professional occupations
• Median age: 38 years

In addition to this prime adult demographic for an upscale hair salon, there are two large high schools and four middle schools in the area. Students, particularly girls, from these schools will be sure to patronize [Company Name] for special occasions.

Management Team

[Company Name]is led by [Founder’s Name] who has been in the hair care business for 20 years. While [Founder] has never run a hair salon himself, he has been cutting hair since age 15 and spent most of his adult life working as a stylist at several major salons.As such [Founder] has an in-depth knowledge of the salon business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• The Company will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
• Our location is in a high-volume area with easy access from multiple residential and commercial district zones.
• The management team has a track record of success in the salon business.
• The upscale salon business is a proven business and has succeeded in communities throughout the United States.
• Local competitors leave a large gap in the haircut market—there are low-cost providers ($10-$20), and an ultra-luxury salon ($120+), but nothing in between.

Financial Highlights

[Company Name] is currently seeking $260,000 to launch.Specifically, these funds will be used as follows:

• Store design/build: $140,000
• Working capital: $120,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even

Topline projections over the next five years are as follows:

II. Company Overview

You can download our Salon business plan template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name], located at [insert location here] is a new, upscale hair salon focusing on providing professional hair cut styles and services in an enjoyable environment. It will showcase a well-designed interior as well as a full-featured waiting area equipped with television screens and at-request refreshments. [The Company] also sells a variety of premium hair styling and hair care products which will be on display in the waiting room.

[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the hair styling business for some time, it was in [month, year] that he decided to launch [Company Name]. Specifically, during this time, [Founder] took a trip to Fort Lauderdale, FL. During his trip, [Founder’s Name] frequented a hair salon that enjoyed tremendous success. After discussing the business at length with the owner of the salon, [Founder’s Name] clearly understood that a similar business would enjoy significant success in his hometown.

Specifically, the customer demographics and competitive situations in the Fort Lauderdale location and in his hometown were so similar that he knew the business would work. After surveying the local population, [Founder’s name] went ahead and founded [company name].

[Company Name]’s History

Upon returning from Fort Lauderdale, surveying the local customer base, and finding a potential retail location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

The business is currently being run out of [Founder’s Name] home office, but once the lease on [Company Name]’s retail location is finalized, all operations will be run from there.

Since incorporation, the Company has achieved the following milestones:

• Found office space and signed Letter of Intent to lease it
• Developed the company’s name, logo and website located at [website]
• Hired an interior designer for the decor and furniture layout
• Determined equipment and fixture requirements
• Begun recruiting key employees with previous hair styling experience

[Company Name]’s Products & Services

Below are [Company Name]’sinitial service offerings and in-store products sold.

Hairstylists will be asked to perform the following services for both men and women:

• Hair washes
• Special event hair styling (such as for a wedding, prom etc.)
• Hair coloring
• Hair extensions

Each appointment will include an initial hair assessment and suggestion phase where the stylist will discuss the customer’s hair and preferred hair style. There will then be a pre-cut hair wash with our in-store products, a haircut or coloring as appropriate, and finally a post-cut styling to our customer’s preferences.

[Company Name] will feature premium hair products in-store from these well established brands. It will continue to update its offering in order to provide the newest hair products to its customers.

Some of its featured brands will include:

• Schwarzkopf
• Sexy hair concepts
• Paul Mitchell Systems

Furthermore, the waiting area will have television screens and popular publications to make the wait for service more pleasurable. Toys and board games will also be on hand for children, as well as at-request refreshments which we will provide for free during the waiting period.

Salon Design

[Company Name] will develop a 2,500 square foot store whose key elements will include the following:

• Stylist Booths
• Reception Desk
• Self-service coffee area
• Sinks to wash hair
• A waiting area with TV screens

Below please find a rough sketch of the floor plan:

The retail location has 10 dedicated parking spots which should suffice even in peak hours.

[Company Name] plans to be open 6 days a week, from 10AM to 6PM. As demand dictates, we may extend or reduce our hours.

III. Industry Analysis

[Company Name] competes against small, individually owned hair salons and barber shops, and against major regional or national chains. There are over 450,000 registered salons in the United States, a figure that reflects the hair cutting needs of 300 million people.

The hair salon industry is a fragmented one, as the 50 largest companies only hold 15% of the market, which is estimated to grow to more than $35 billion in three years. This bodes well for [Company Name]; since there are no truly dominant competitors, barriers to entry are not as high as many other industries, and a start-up can expect to have success in this growing market. There is plenty of room in the industry particularly for well-placed local salons that cater to specific geographic and demographic customer niches. Smaller hair salons can easily develop loyal clienteles that enable them to compete and succeed against industry giants; in this industry, size does not necessarily mean an advantage, which bodes well for [Company name].

The largest competitor in the hair salon industry is Regis Corporation, which is affiliated with more than 8,000 locations across the continent. Their business model uses a combination of franchising and corporate ownership, along with several different brand names at different market positions. Regis tends to maintain central control of its higher-end locations, and franchise its discount haircutters.

Industry Trends

The industry in which [Company Name] will compete is experiencing a number of different trends.

Market-level trends:

• Slow but steady growth. This market is expected to grow consistently at around 2% annually.
• Success drivers. Customer satisfaction is what ultimately makes one salon triumph while another fails. The experience a salon’s client has determines whether or not they return and whether or not they refer others to the same salon.
• Seasonal change. The hair salon industry tends to thrive in the spring and fall, but slow down during the winter and summer. [Company Name] will launch haircutting operations during [Fall/spring], when the industry is experiencing higher sales. Catching a seasonal upswing in the first quarter of business should help provide a buffer of cash for [Company name].

Firm-level trends:

• Price sensitivity at the bottom. The low-cost segment of the market, which primarily serves men and children, often competes on the basis of price. This reflects the different preferences of these particular consumers, who are often more interested in an affordable haircut than in seeing the same hair cutter on a regular basis.
• Size at the bottom. Larger hair salon chains tend to gravitate toward the bottom of the market. Brand loyalty is not strong here. Many companies in this segment use a franchise model.
• Economies of scale. Larger salons are finding opportunities to succeed, by making effective use of support personnel. Receptionists, hair washers, and assistants at larger establishments can take care of many of the menial tasks that skilled haircutters have to handle in small salons. This permits a skilled hair cutter to spend a higher proportion of their time actually cutting hair and generating revenues.
• Premium independent salons. Independent salons also compete in the premium segment of the market. These firms develop loyal customer bases and select their location on the basis of population demographics.
• Specialty salons. Presently, a niche is being carved out for salons that cater to very specific customer segments, most notably adult males from higher income brackets. High-end, men-only hair clubs draw this crowd with upscale amenities such as cigars, pool tables, and drink bars.

Customer-level trends:

• Intense customer loyalty. Many salons develop repeat customers who become a regular client base and represent a significant portion of their revenues. Salons whose employees are able to develop strong relationships with customers can expect to see more long-term success.
• Changing gender patterns. Traditionally, women bring in the lion’s share of revenues for hair salons, using beauty services more often and spending more at each appointment. In recent years, however, the male consumer’s attitude has begun to shift. Men now make up approximately 25% of salon clientele.
• Gender preferences. Women are the most lucrative customers for hair salons, visiting more often and purchasing more special treatments such as coloring.
• Ideal demographics. The baby boom generation generates a very large portion of hair salon revenues. This large segment of the market has reached the peak of its earning power, and they are beginning to need special treatments such as coloring.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].

The area we serve is populated mostly by the middle class; as a result, they have the means to pay for higher quality service, and are looking for a hair and beauty services somewhere between the deep discounters and the top-end luxury brands.

The precise demographics of the town in which our retail location resides is as follows:

Customer Segmentation

The Company will primarily target the following three customer segments:

• Soccer/stay-at-home moms: The town has a large population of stay-at-home moms who are active in the school and community. These moms seek beauty services on a regular basis. Winning the loyalty of a mother often includes winning the business of her children and husband as well. These women are well connected to each other and as such are a prime source of referral business. [Company name] expects to regularly acquire new customers from referrals.
• Professionals: [Company name] is located along a well-traveled commute route. By offering convenient location and exceptional service to the customer, [Company name] will draw in working men and women who need to look professional for work.
• Students: There are multiple high schools and middle schools located in the surrounding area. These students still live on their parents’ income and can therefore afford to pay for higher-quality services than discounters provide. In particular, [Company name] can expect to generate significant seasonal business based on the beauty needs of the local youth culture.

V.Competitive Analysis

Direct & indirect competitors.

The following retailers are located within a 5 mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Joe’s Beauty Salon

Joe’s Beauty Salon is the town’s most popular beauty salon and has been in business for 32 years. Joe’s offers a wide array of services that you would expect from a beauty salon.

Besides offering hair cuts, Joe’s also offers nail services such as manicures and pedicures. In fact, over 60% of Joe’s revenue comes from services targeted at women outside of hair services. In addition, Joe’s does not offer its customers premium salon products.

For example, they only offer 2 types of regular hair gels and 4 types of shampoos. This puts Joe’s in direct competition with the local pharmacy and grocery stores that also carry these mainstream products. [Company Name], on the other hand, offers numerous options for exclusive products that are not yet available in [Town’s Name].

LUX CUTS has been in business for 5 years. LUX CUTSoffers an extremely high-end hair service, with introductory prices of $120 per hair cut.

However, LUX CUTS will primarily be targeting a different customer segment from [Company Name], focusing on the households with an income in the top 10% of the city.

Furthermore, [Company Name] offers many of the services and products that LUX CUTS offers, but at a fraction of the price, such as:

• Hair style suggestions & hair care consultation
• Hair extensions & coloring
• Premium hair products from industry leaders

Freddie’s Fast Hair Salon

Freddie’s Fast Hair Salonis located four stores down the road from [Company Name]. Freddy’s has been in business for the past 3 years and enjoys great success, primarily due to its prime location.

Freddy’s business offers inexpensive hair cuts and focuses on volume over quality. It also has a large customer base comprised of children between the ages of 5 to 13.

[Company Name] has several advantages over Freddy’s Fast Hair Salon including:

• An entertainment focused waiting room, with TV’s and board games to make the wait for service more pleasurable. Especially great for parents that bring their children.
• A focus on service quality rather than speed alone to ensure repeat visits. [Company Name] will spend on average 20 more minutes with its clients than Freddy’s.

While we expect that Freddy’s Fast Hair Salon will continue to thrive based on its location and customer relationships, we expect that more and more customers will frequent [Company Name] based on the high-quality service it provides.

Competitive Pricing

Competitive advantage.

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Location: [Company Name]’s location is near the center of town, giving us access to commuters going to and leaving the train station, local office workers, and passersby shopping in the city. We also offer adequate parking making it easy for customers to patronize us.
• Great service at an affordable price: The complete array of hair services offered by [Company Name] nearly equals the most premium positioned competitor, LUX CUTS. However, [Company Name] will offer these services at a much more affordable price.
• Management: Our management team has years of business and marketing experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
• Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all of the local leaders, newspapers and other influences. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.

VI.Marketing Plan

[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the hair salon market. Customers can expect to receive professional hair care from familiar haircutters for a price somewhere between discount chains and luxury establishments.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Convenient location
• Familiar, regular hairstylist
• Significant personal attention
• Moderate price point
• Comfortable, customer-focused environment

Promotions Strategy

[Company Name] expects its target market to be individuals working and/or living within a 5-mile radius of its location. [The Company’s] promotions strategy to reach these individuals includes:

Local Publications

[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.

Major Publications

We will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz and we can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost effectiveness. These ads will include discount coupons so that response to the ads can be tracked.

Community Events/Organizations

[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events. Since mothers are often heavily involved in such things, we will not only reach the lucrative audience of adult women but also potentially their families by extension.

Commute Advertising

We will drive attention toward [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.

Customer Loyalty Programs

[Company name] will create a winning customer loyalty program to keep its best clients coming back again and again. When not actively providing services to customers in the store, our professionals and other employees will make periodic, regular phone calls to customers. These phone calls will (a) ensure that customers are satisfied with their hair treatment, and (b) remind customers after a certain period of time has passed that they might want a new haircut. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.

Direct Mail

[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to visit the salon.

Ongoing Customer Communications

[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products and more.

Pre-Opening Events

Before opening the store, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.

Pricing Strategy

[Company Name]’s pricing will be moderate so customers feel they receive great value when patronizing the salon. The anticipated price point for a standard hair treatment is $35, in exchange for which a customer can expect to receive personalized attention during and after their visit. The customer can expect to receive quality hair care from a familiar haircutter, for a more affordable price than what they pay at an ultra-premium salon.

VII.Operations Plan

Functional roles.

[Company name] will carry out its day-to-day operations primarily on an appointment basis. Walk-in clients will be served by the earliest available hairstylist, but priority will be given to clients who called ahead. In the meantime, waiting customers can divert themselves in the lounge, which features television and current popular magazines. The Company intends to employ [X] hairstylists and [A] assistants during peak hours and [Y] hairstylists and [B] assistants during off-peak hours. [Company name] anticipates having [Z] customers on a weekly basis.

In order to execute on [Company Name]’s business model, the Company needs to perform several functions. As a hair salon, the majority of employees will assist in up selling customers in addition to the primary functions as hair cutters and specialists (coloring, perms, etc). [Company name] anticipates using the services of X employees, divided into the following roles.

Service Functions

• Hair cutting
• Hair washing
• Product sales

Administrative Functions

• General & administrative functions including legal, marketing, bookkeeping, etc.
• Sourcing and storing products
• Hiring and training staff
• Appointment making
• Customer service/cash register functions

Miscellaneous

• Maintenance personnel

[Company name]’s long term goal is to become the dominant provider of hair care and related services and products in the [city] area. We seek to the standard by which other providers are judged.

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

VIII. Management Team

Management team members.

[Company Name]is led by [Founder’s Name] who has been in the hair salon business for 20 years.

While [Founder] has never run a hair salon himself, he has extensive experience cutting, treating, and styling hair at major salons for the past 20 years. He began his career in [19xx] when he received a certification from [Hair Cutting School] and began work at [major chain], where he worked for X years.

[Founder] graduated from the University of ABC where he majored in Communications.

[Other person’s name] will serve as the customer service manager. He/she has extensive experience the hospitality industry.

Hiring Plan

[Founder] will serve as the store manager. In order to launch our salon, we need to hire the following personnel:

• Hair Stylists [Number]

As dictated by demand and operational maturity, [Founder] will consider hiring the following personnel:

• Hair Treatment Specialist [Number]
• Receptionist [Number]
• Store Manager

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come primarily from the services rendered and secondarily from the sale of hair care products.

As with most services, labor expenses are the key cost drivers for hair salons. Hair stylists are paid through a combination of salaries and commission, rewarding them for performance and making hair stylists an active part in business retention and development.

The major cost drivers for the company’s operation will consist of:

• Commission paid to hair stylists on a per service basis

Moreover, ongoing marketing expenditures and cost of good sold expenses are also notable cost drivers for [Company Name].

Capital Requirements and Use of Funds

[Company Name] is seeking total funding of $260,000 of debt capital to launch its store. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive

Key Assumptions & Forecasts

The following table reflects the key revenue and cost assumptions made in the financial model.

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

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Salon Business Plan Sample

FEB.11, 2015

Beauty salon business plan for starting your own salon service

People like feeling good about themselves, and a salon business can help them to achieve that. The Professional Association estimates the salon and spa industry contributes approximately $40 billion annually to the U.S. economy Approximately half the industry is classified as salon business offering mostly hair care services. However, entrepreneurs interested in making a beauty salon business plan have many options as to the variety and level of services offered, ranging from a beauty salon business plan to a full-service spa. Salons can be setup in innumerable ways, so the purpose of the beauty salon business plan  is to pin down the details to improve the chances of long-term success. Planning should always start with identifying the customer. There may be several customer persona’s depending on your target market, people over 50 years old are a very different market to the Gen X clients.

Executive Summary

2.1 the business.

Julia’s Salon will be a licensed and registered salon located near Brookhaven College, Atlanta. The business will be based on providing hair-cutting, styling, coloring, skincare and other services in the salon as well as by going to people’s homes.

2.2 Management

Before starting a salon, it’s essential to make a beauty salon business plan  and enlist major decisions about your start up salon. In this sample business plan for a salon, we’re providing all details of Julia’s Salon ranging from startup expenses to management structure.

The main working structure of Julia’s Salon include hairdressers, makeup artists, expert cosmetologists, and general assistants. Besides them, the beauty salon business plan will hire sales executives, accountants, and web developers.

To ensure efficient working from the first day, the salon will be making all arrangements one week before the launch. Staff will also be hired a week before because the owner of Julia’s Salon wants to assess staff herself.

2.3 Customers

Our major customers will be the young and adult men and women of our society. Besides them, senior citizens and teens are also expected to avail our services.

2.4 Business Target

Our target is to become the most renowned salon in our vicinity and to establish an average repeat customer rate of 60% by the end of the first year.

Company Summary

3.1 company owner.

Julia’s Saloon will be owned by Julia Fox. Julia is a graduate in social sciences. She has taken many courses related to works. After working for three years in Sports Clips she has gained expertise in hair care and styling.

3.2 Why the salon business is being started

Julia has always remained interested in  cosmetics works. It was due to her passion and interest in the industry that she got a job in a top company. As Julia wanted to start a salon she took several courses relevant to the field while she was in her college.

A few months ago she started exploring beauty salon business plan s and finally decided to initiate her own salon to generate profit through a business that is solely her passion. She believes that an exceptional mission statement for a salon can lead her to the success, she is looking for.

3.3 How the salon business will be started

Julia decided to rent a large ground story to convert it into a salon. For writing a beauty salon business plan , she decided to hire a marketing and financial expert.

After acquiring the required licenses and registrations, Julia will purchase the required equipment such as furniture, mirrors, cosmetic tools and accessories, hair styling tools, hair treatment products, and other things.

She has also decided to hire her staff a week before the lauch so that she can assess them and they can understand the beauty salon business plan environment and aims. To facilitate their clients, Julia’s salon will be providing services by going to their homes too. Moreover, the salon will set up a web-based system so that customers can pre-order or pay online.

Services for Customers

Before formulating a beauty salon business plan outline you must finalize which services you’ll be providing your customers because this decision of yours will be affecting the business in the long run.

The services as mentioned in Julia’s Salon business plan are given in detail here.

Our major salon service will comprise of works related to hair. However, we’ll also offer some other services as described here:

Hair Cutting: Our primary service will be cutting the hairs of people of all ages and gender. We’ll hire haircut experts so that every customer will be able to get the look of their desire.

Hair Styling & Coloring: We will hire experts who will be able to make several hairstyles according to the customer’s looks and desires. Moreover, we’ll also provide services like hair coloring, highlights, color blending, hair shadowing, etc.

Makeup Services: We will provide makeup services for parties and usual events.

Hair & Skin Care Services: Our third major service will be providing hair treatments such as Fusio-Dose and protein treatment. Moreover, we’ll also be offering services in skincare and treatment like manicures, pedicures.

Salon Marketing Analysis

Before you start a salon you must know what are objectives of a salon business plan . Generally, the aim is to satisfy your customers by enhancing their looks, and that is only possible when you have studied the market and market trends thoroughly.

Before finalizing your beauty salon business plan template , you must research on what are the traditions, norms and modern fashions that are arising in your target market. Only then you will be able to recognize customers’ demands and decide what aspects to include in your beauty salon business plan to meet the expectations of your customers.

5.1 Market Trends

Hair salons are one of those businesses that are flourishing in the market for a long time. Currently, 972,000 such businesses are running in the United States. According to the IBISWorld report, the business has seen a 1.4% growth rate over the period of the last five years. The industry is responsible for employing more than 1,352k people and has generated a revenue of $47bn in only 2019. To summarize, the salon business plan has a lot of potentials and can be extremely profitable if you plan it accurately.

5.2 Marketing Segmentation

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Young & Adults: Our first target group will be young adults between 18 and 35 years of age. The people of this age run after the latest fashions and styles. That’s why we’ll be coming up with hairstyles, coloring and makeup techniques that are popular in people of this age group.

5.2.2 Senior Citizens: Our second target group comprises of citizens above 35 years of age. Since such people are interested in acquiring decent looks while following their norms and traditions thus we’ll be carrying out research to provide services of their interest.

5.2.3 Teens & Kids: Our third target group is expected to be accompanied by other target groups. For this group, we’ll be providing hairstyles and services that are liked by children and teens.

5.3 Business Target

• To balance startup expenses by earned profits by the end of the first fifteen months
• To achieve the net profit margin of $10k per month by the end of the first year
• To maintain customer repeat rate of 60% by the end of the first year
• To maintain an average rating of 4.6 by the end of the first year

5.4 Product Pricing

Our prices will be in the same ranges as that of our competitors, however, to get introduced to a wide group of people we’ll be offering several discounts in the first three months.

Marketing Strategy

Excellent preparation of business plan ….

Excellent preparation of business plan reporting and timing of all deadlines. I am extremely satisfied with the services. Thank Alex for all your excellent work.

This section should describe how you are going to find your ideal client and make sure they become aware of your products and services. Once you have found your clients, how will you attract and retain them? If you have a bricks-and-mortar business, is the location good for your type of clients? Does your ideal client read traditional printed advertising or are they more focussed on digital marketing? If online is important, describe the process your clients go through to make a purchase. Is it quick and easy? Starting a beauty salon business plan  will help you to focus on these points.

In this salon marketing business plan for a salon  sample we are providing the competitive aspects of Julia’s Salon as well as the advertising schemes, the salon will be employing to attract more and more customers.

6.1 Competitive Analysis

Our biggest competitive advantage is our top-class service. We’ll use high-quality material with extreme care to serve our customers. Secondly, our staff is expert in their respective domains. Besides, we’re highly customer-care oriented and we’ll always be ready to do unlimited modifications to satisfy our customers. Lastly, we’re providing home services because senior citizens usually want to have such tasks done at their own homes.

6.2 Sales Strategy

• We’ll ensure a strong web presence
• We’ll advertise us through Facebook and Instagram
• We’ll get featured in magazines and local newspapers
• We’ll offer a 20% discount on hair treatment services for the first month

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

To get an idea of how much you’ll need to spend on your business plan for a salon , you must first create a list of salon equipment with price and a list showing your employees, their job responsibilities and salaries.

7.1 Company Staff

Julia will manage the salon herself and hire the following people

• 1 Accountant to take financial records
• 1 Sales Executive to carry out the company’s sales business strategy plan
• 5 Hairdressers/Hairstylists/ Hair Coloring Experts to do clients hair
• 2 Makeup Artists to do client’s makeover
• 1 Cosmetologist to do with hair and skin treatments
• 2 Manicure/Pedicure Specialist
• 4 General Assistants to carry out general tasks
• 2 Drivers to provide transport
• 1 Web Developer to manage company’s sites
• 1 Customer Representative to receive customers

Financial Plan

The last step before starting your salon is to craft a detailed map showing and analyzing the investment group business plan for salon, costs of equipment, payrolls, taxes, and other expenses. A financial plan for a salon business plan must contain all the financial statements, details of projected profit and loss and measures to achieve estimated profits.

We’re providing a sample of Julia’s financial plan for anyone who wants to benefit. However, it is highly recommended to seek help from a financial advisor to have an accurate financial plan according to your figures.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Download Beauty Salon Business Plan Sample in pdf

OGS capital professional writers specialized also in themes such as eyelash extension business plan , business plan for a nail salon , nail polish business plan , tanning salons business plan , tattoo shop business plan , laser hair removal business plan and many others.

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Salon Suites Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their salon suites companies.

If you’re unfamiliar with creating a salon suites 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 salon suites business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Salon Suites Business Plan?

A business plan provides a snapshot of your salon suites 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 Salon Suite

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

Sources of Funding for Salon Suites Businesses

With regard to funding, the main sources of funding for a salon suites 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 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 salon suites companies.

Finish Your Business Plan Today!

How to write a business plan for a salon suites business.

If you want to start a salon suites business or expand your current salon suites business, you need a business plan. The guide below details the necessary information for how to write each essential component of your salon suites 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 salon suites business you are running and the status. For example, are you a startup, do you have a salon suites business that you would like to grow, or are you operating a chain of salon suites locations?

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

• Give a brief overview of the salon suites industry.
• Discuss the type of salon suites 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 salon suites business you are operating.

For example, you might specialize in one of the following types of salon suites businesses:

• Individual Salon Suites: In this type of salon suites business, each operator is located in a site that caters to only one individual. Salon suite amenities include a salon chair, mirrors, salon products, sink, along with facial products and hair styling supplies.
• Boutique Salon Suites: If you are opening a boutique salon suites shop, you will want to offer distinctive salon suites in personalized styles to brand your salon suites business and stand out from others. Offering personalized services, such as facial massages and facial treatments, luxury foot care, and other special treatment packages created the sense of luxury and personalized care, which appeals to customers.
• Nail Care Salon Suites: This type of salon suites business is focused on customers who favor superior treatment for their fingernails and toenails. Nail professionals treat clients in individual suites that offer a wide variety of nail treatments and nail enhancements.
• Mobile Salon Suites: Offering select salon suites from a mobile reconfigured mobile home, this type of business captures the busy professionals in large cities. Appointments are made by phone and the mobile unit parks near the business site to fulfill salon services for each clients. These mobile salon suites offer the ultimate in convenience and service.

In addition to explaining the type of salon suites 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 amount of revenue during the past six months, opening a second salon suites location, 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 salon suites industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the salon suites 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 salon suites business plan:

• How big is the salon suites 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 salon suites 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 salon suites business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, mother-daughter or teen party groups, and busy professionals.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of salon suites business you operate. Clearly, individuals would respond to different marketing promotions than professionals, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regard 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.

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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 other salon suites businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes hairdressing chain shops, private businesses operating in residences, and community classes on self-care. You need to mention such 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 salon suites business are they?
• What is their pricing (premium, low, etc.)?
• What sets their business apart from others?
• What are their weaknesses?

With regard 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 options for on-call 24/7 service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer value-based 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 salon suites business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of salon suites company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide a luxury facial treatment using luxurious Egyptian mud elements? Will you offer packages that include two different services?

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

Place : Place refers to the site of your salon suites company. Document where your company is situated and mention how the site will impact your success. For example, is your salon suites business located in a busy retail district, a business district, a standalone building, or in a suburban strip mall? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your salon suites 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 websites
• Distribute direct mail pieces to your target audience
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) with target keywords on your website

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 salon suites business, including answering calls, planning and stocking salon suites items, paying invoices, contacting customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 100th customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your salon suites business to a second or third location.

Management Team

To demonstrate your salon suites 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 salon suites 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 salon suites business or successfully running a salon in a retail department store.

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 sheet, 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 serve 25 customers per day, and/or offer special salon suites packages online? 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 salon suites 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 salon suites business:

• Cost of inventory and related packaging
• Cost of furnishings or accessories
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, office supplies 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 salon suites location lease or a list of friends and associates who are already lined up to buy products and services from your business.

Writing a business plan for your salon suites 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 salon suites industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful salon suites business.

Salon Suites Business Plan FAQs

What is the easiest way to complete my salon suites business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your salon suites business plan.

How Do You Start a Salon Suites Business?

Starting a Salon Suites business is easy with these 14 steps:

• Choose the Name for Your Salon Suites Business
• Create Your Salon Suites Business Plan
• Choose the Legal Structure for Your Salon Suites Business
• Secure Startup Funding for Your Salon Suites Business (If Needed)
• Secure a Location for Your Business
• Register Your Salon Suites Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Salon Suites Business
• Buy or Lease the Right Salon Suites Business Equipment
• Develop Your Salon Suites Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Salon Suites Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business planning advisor can create your business plan for you.

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