Free Hair and Beauty Salon Sample Business Plan
Looking for a free, downloadable hair and beauty salon sample business plan Word doc or PDF to help you create a business plan of your own? Bplans has you covered.
Keep in mind that you don’t need to find a sample business plan that exactly matches your business. Whether you’re launching an upscale, full-service salon in a bustling city or a neighborhood barbershop, the details will be different, but the bones of the plan will be the same.
Are you writing a business plan for your salon because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company.
No two salons are alike. Your business model will be different if you’re renting space to independent hairstylists, rather than taking on employees, for example. So take the time to create your own financial forecasts and do enough market research so you have a solid plan for success.
What should you include in a hair and beauty salon business plan?
Your hair and beauty salon business plan doesn’t need to be hundreds of pages—keep it as short and concise as you can. You’ll probably want to include each of these sections: executive summary, company summary and funding needs, products and services, marketing plan, management team, financial plan, and appendix.
One of the things that makes a salon business plan different than some other service-based business plans is that you might decide to offer a combination of products and services.
Maybe you’ll sell shampoo, beard oil, or other cosmetics and beauty products, in addition to offering services like haircuts, manicures, or massages. If that’s the case, make sure you include your ideas for upselling products to customers to increase the value of every appointment you book.
Download this hair and beauty salon sample business plan PDF or this editable Word doc for free right now, or visit Bplans’ gallery of more than 500 sample business plans if you’re looking for more options.
There are plenty of reasons salon business owners can benefit from writing a business plan —you’ll need one if you’re seeking a loan or investment. Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.
Kateri Kosta
Kateri is a leader in innovative brand and content marketing. She’s committed to putting the best words in the right order to deliver high quality, discoverable, and useful tools and resources at scale. She enjoys exploring the intersection of tech, words, and the people to who drive small business culture.
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Beauty Salon Business Plan Template
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 template to help you create each section of your 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.
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How To Create Your Hair Salon Model Canvas if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[468,60],'salonbusinessboss_com-box-3','ezslot_16',166,'0','0'])};__ez_fad_position('div-gpt-ad-salonbusinessboss_com-box-3-0');
Making a business model canvas for your hair salon is a great way to build upon and use your business plan more creatively. Business plans tend to be a bit on the dull side and can be challenging for readers to get through.
Table of Contents
To create your business model canvas for your hair salon, you need to include these nine sections:
Customer segments, customer relationships, value propositions, key activities, key resources, key partnerships, revenue streams, cost structure, we will breakdown each of these sections, help you extract the critical information from your business plan, and give you examples of how to create each section in your model canvas. after that, we will have a sample canvas & template for you to fill out..
*For our examples and canvas at the end, we will be using “A Cut Above Salon” as an example. It is a premium, full-service hair salon that targets the affluent members of its market area.
Our first and foremost customer segment is women between 50-70 years old with a household income of over $200,000/yr. These women are typically retired or semi-retired. They have plenty of time and are willing to pay for a premium salon service where they can get social interaction and beauty services.
Example: At A Cut Above Salon, our goal is to treat every customer with the respect & kindness they deserve. We want our customer’s salon experience to be relaxing and have them leave with a smile on their face and newfound confidence.
Our highly-trained staff is the key to helping us provide premium services that other salons can’t compete with. It is a significant expense for us to train our employees as thoroughly as we do, but it more than pays for itself because we can charge premium prices for unique services.
We invest in our employees by requiring them to complete 20 hours of continuing education each year, at no expense to them. We believe our employees are our most incredible resource and should always be improving. Along with our employees, we reinvest 5% of our profits each year towards new equipment and technologies to improve our salon.
We have partnered with a handful of masseuses and wellness coaches to offer package deals for customers looking to improve their overall wellness and how they take care of themselves.
Your cost structure is a brief financial report highlighting your critical expenditures that will make your hair salon a success.
Related Articles
Looking to start your own salon get the documents you need to get organized and funded here ..
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It's Time for a New Salon Business Model
Last year, the beauty industry lost more 21,000 salons, almost 9% of the previous years’ total. There are various reasons for this reduction, including salon walkouts, salon suite/loft growth, escalating overheads, standard of work and bored consumers. In other words, the salon didn't excite the consumer with anything new. Additionally, many salons are operating at a loss or have reduced profits. I often hear salon owners talk about their annual sales and what percent they have increased over last year. In England, they have a saying, “Turnover (sales) is flattery, profit is sanity.”
How can the current business model flourish with increasing costs of workers compensation, corporate tax, insurance, rent, social security and bank fees?
One of the primary objectives for salon owners is to increase the average visit consumer’s make to the salon. Typically, a consumer visits every 4-6 weeks. Imagine what it would do to the profit of a salon if a good portion of customers visited twice a week! In a previous article, I wrote about the opportunity of high street salons offering a high-end wine bar in the evening that converts to a high-end coffee bar in the morning, or an organic juice bar. This will not only increase visits for existing consumers; it will also entice new customers, resulting in a higher average ticket and the opportunity of additional retail sales.
An Evolving Consumer Changing shopping tastes and expectations are quietly transforming the consumer and how they buy and expect service. Great changes outside the beauty industry indicate it’s time to create a new business model within our industry. Brick and mortar businesses have been seriously affected by online shopping and it is having major effects on retailers with 68 Macys closing, all Limited stores and 42 Sears locations. We are fast becoming an E-Commerce society.
Shoppers increasingly crave instant gratification, one-of-a-kind merchandise and are cozying up to the idea of borrowing goods versus buying them. As a result, the shopping model of the near future is poised to look radically different from just a decade ago. Salons that don’t keep pace are setting themselves up for a rude awakening at best, or even extinction.
In five years, consumer electronics stores as we know them today won’t exist and the same rings true for our favorite apparel brands. Technological innovations and a hyper-connected world have significantly influenced consumer behaviors and expectations. Some businesses are faced with a scary reality: change or become obsolete. There are three seminal consumer expectations fueling this shift in the service and retail landscape: instant gratification, borrowing and customization.
Instant Gratification Companies like Uber, Grub Hub and Amazon have forever changed the way consumers think about service and how they go about their daily lives. People are no longer willing to wait for a taxi on the corner without knowing when it will arrive or trust the restaurant’s promise of delivery within 45 minutes. Instead, consumers want as much information at their fingertips and as soon as possible.
Borrowing What happened to the boomers American dream of owning their first car or home? Today, we Rent the Runway, Zipcar ourselves to and from the grocery store and Netflix our shows. We want to own very little in order to consume more. Take the car for example: according to the AAA Foundation for traffic safety, cars purchased by 18 to 34 year olds fell almost 30% between 2007 and 2011. In the electronics space, we are seeing mobile device rental programs skyrocketing. Consumers are asking themselves why they should pay $700 for the latest device, when it’s going to become outdated within 12 to 18 months. Instead, they are opting to lease it for a minimal cost in order to get the next hottest gadget faster.
Customization In addition to wanting to know as much about products and services as possible and having the ability to quickly exchange an older model, consumers also want to ensure products are tailored to their individual lifestyles and preferences. For example, Adidas allows consumers the ability to create their own shoes online with personal designs, pictures or logos. ( See how salons are customizing clients' music choices.)
What Will the “New Salon Model” Look Like? Some retailers are light years ahead of the curve when it comes to who is more successfully building a new retail model that addresses new consumer demands. Imagine walking into your local Best Buy and seeing winter jackets on the show floor. In today’s retail climate this might look out of place, but the electronics retail store of the future will also sell smart apparel — picture a winter coat with a built-in smart watch. Additionally, stores of the future will emphasize selling experiences and lifestyles over products. Think about how revolutionary it was when Fleet Feet Sports allowed consumers to run down the street in a pair of shoes to experience the fit and feel. Now apply that idea and kick it up a notch: picture visiting a consumer electronics store to solve your health and fitness needs. Sales representatives can outfit you with a fitness tracker that reads your oxygen levels and heart rate to test your performance and wellness on an in-store obstacle course.
Personal Shoppers for All The ‘New Model Salon’ will focus on transforming mobile apps into a personal concierge of sorts. When consumers enter a salon, in-store beacons will automatically wake up consumers’ apps to deliver highly relevant and personal content. Customers will be welcomed upon entering the salon. The “personal shopper” app features will point out where they can find favorite products, alert them of items they might like and tell them about new salon services and offers.
Self-Checkout 2.0. One of the most frustrating parts of in-store shopping is waiting in a line to check out. More retailers will follow pioneer Apple’s lead with its Easy Pay self-mobile checkout. The customer will find what he or she needs, scan it, select a payment method and finalize the transaction, without waiting in a line or talking to an associate. As consumers become increasingly comfortable with contactless payments, the ability to control when and where the checkout happens will become more prevalent. As they exit the salon, services and purchases get charged to the customers account via their mobile device.
Power to the Consumer In the palm of their hands, consumers are carrying around their own big data tools. They can scan bar codes and compare prices, check reviews or snap a picture and ask their friends for advice. Consumers have more power than ever before. As a result, salons will provide rich information and social capabilities optimized for every screen while integrating scanning and other tools to unlock content in their apps. Consumers will shop around and more salons will take broader steps toward transparency.
Virtual Fitting Rooms and Aisles The rich virtual world will continue to supplement the physical world via consumers' phones and connected wearable devices. Consumers will access information and special offers through augmented reality, while moving through the retail area or seeing how they would look wearing something without trying it on.
Everything Starts with an Idea! In our daily lives, we often describe those rarefied, super-energized states we cannot see as “spiritual,” and the slowed-down, more substantial states we can see as “physical.” Science has now told us this is an arbitrary distinction, just a convenience of language and perception. Take ice! The truth is water is water; it came from the idea of “quantum potential” of water through the states of vapor, steam, liquid, and ice. It’s all water. But it starts with an idea.
Everything in the physical world is made out of atoms. Atoms are made out of energy and energy is made out of consciousness. In other words, everything in nature, every phenomenon in the universe, starts as an idea.
What does this have to do with your dream business? Everything. Because everything you manifest in your life follows the precise same pathway, from idea to physical form. We create from the non-physical level, turning that which we can’t see into that which we can. Every thought you form broadcasts a distinct and particular frequency, and that frequency elicits a response from the quantum universe as surely as a swinging hammer has an impact on the surface it strikes. Things don't arbitrarily happen to you.
Events in your business are the reflection of your thoughts, the echo of your own actions and the thinking behind them.
In the East this truth is reflected in the idea of karma, in the West in the Golden Rule. The core of the principle is this: you are the cause of your life and in your business.
The History of the Beauty Salon Business Model The beauty industry hasn’t had a major transformation since Vidal Sassoon created geometric cutting and revolutionized women hair in the 1960’s. We moved towards the model of full service provider in the 1990’s with a growing influence in retailing. Unfortunately, the evolution represented merely a tentative step rather than a giant leap for our industry. In business, today’s initiatives become tomorrow’s minimum standards with increasing rapidity. If we really want to maximize our business opportunities, a major paradigm shift in our thinking is required. Decision-makers must cease to view their businesses as salons and begin to think of them as ‘Consumer Locations.’
New Business Model We need to emulate the best practices of service companies, retail providers and marketers outside our industry, because the same consumer that visits Starbucks, Apple and Burberry, come into our salons and we think of them as guests or clients. If we think of them as consumers, we adopt a consumer strategy and maximize the potential of our business and fulfill their expectations. We need to go beyond service and experience and create entertainment.
Currently consumers visit a beauty salon for services. The new business model will create multiple reasons why the consumer will visit a salon, including services. Reviewing ‘Salon Today’ top 200, the average of retail sales to overall sales in 2016 was 14%. 86% of salons revenue comes from service. The new model will have 40-50% of sales other than service. This is the formula for new projects! Formula and Foundations
- 5,000 square feet, high street, strip mall or mall location, not destination.
- 1,000 square feet dedicated to retail.
- Juice bars, coffee bars and where states permit, wine bars.
- Additional retail items other than wet products.
- Digital content will entertain and educate the consumer.
- Beacons to notify customer’s mobile devices with salon data.
- Self-Checkout. The ability to control when and where check out happens.
Salon Design
Currently the design of high-end retail areas in salons follows the pattern of illuminated wall units, launch promotion and seating in the center. This is a major leap from 15 years ago. This design has worked for a number of years and relies on the consumer going over to the products and hopefully purchasing. The new design will have interactive touch screen sections of haircare, skincare and make up. Each boutique zone will have hands on activity combined with digital experience including scanning the consumer’s avatar. This design presents a collection of areas that will entertain, educate and will lead the consumer to facilitate the purchase.
Entertainment will not be limited to only the retail area. The color department, styling and shampoo areas will each have an environment appropriate to activity including digital content. Salons that move beyond focusing on the customer’s experience as purely transactional, are adding more dimension and fun to the salon visit simultaneously. The reality is, if salons entertain us with an ‘Omni Channel’ presence, our propensity to spend increases significantly. For consumers, this means they can expect more than just a service. They expect a full sensory experience.
It’s an alluring cocktail of touch and digital content. When we design a model that includes other retail items, along with juice bars, coffee bars and wine bars, the effect creates multiple reasons for the consumer to visit and have service, play, shop, stay longer and get entertained. The salon and stylists will benefit from new customers that can be converted from the other offerings of the location.
We think of Starbucks as a coffee shop. By offering free Internet, wine, beer and food items, 48% of Starbucks revenue is from sales other than coffee. Another example is ‘Gas Stations.’ Retail revenue is a major part of their overall sales strategy.
In the near future retail, wall units will have built-in-devices for educating and entertaining the consumer about the features and benefits of the products via Bluetooth. As the consumer picks up the product, a video will open showing tutorials and benefits.
Conclusion The industry has evolved from service to experience. We need to take one giant leap to entertainment and implement a new business model designed around the emotional needs of the new and savvy consumer.
For reprint and licensing requests for this article, Click here.
- consumer behavior
- leon alexander
- salon business
- salon technology
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The Salon Revenue Model: 6 New Ways to More Profit
Our world is changing. And are you ready to adapt your salon business model to this new world?
Traditional businesses get obsolete faster than ever before. Taxis are being replaced by Uber. Cinemas are being replaced by Netflix. Retail stores are being replaced by Amazon.
Thank god the salon revenue model will stay the same. Or will it?
What all new industry disruptions have in common is that they come with a new revenue model that replaces the traditional one. And I’m sure you’ve already started to see new revenue models arise also in the salon industry.
To build your salon for the future, it’s more important than ever that you understand your salon’ revenue model. Only then can you start to innovate and identify ways of changing how you operate to improve your salon business.
This is why I in this article want to take you through the details of the hair salon revenue model today. What it looks like for the average hair salon today and what might change in the future.
I’ll use the average hair salon revenue model as example but the same applies to the nail salon revenue model or SPA.
Before we dive into the details, I’ve created a simple infographic for you that captures the essence of the hair salon revenue model looks like today for the average U.S. hair salon.
It also includes the average hair salon cost split which takes the average hair salon to a profit margin of 8.2% .
But we’ll come back to that. Let’s start with some basics.
Based on data extrapolated from the IBISWorld Industry Report
What is a Salon Revenue Model?
A salon revenue model is a framework for how a salon generates revenue. It includes the different sources of revenue that a salon has (e.g. services and retail sales), what value the salon deliver (e.g. hair coloring service), how they price that value (e.g. your color service price), and who in the end pays for it (e.g. the intended salon client target group). It’s a key part of the hair salon’s business model.
Understanding your salon’s revenue model is vital for you to be successful with your salon business and ultimately prepare your salon business for the future.
How do Hair Salons Make Money?
Hair salons primary income stream is service revenue. For the average US hair salon this accounts for about 92% of the income generated. On top of that, a small portion of income is generated from retail sales (8%).
This is the average picture. When you look at the most successful salons they typically have a higher share of retail sales 14-18% as they’ve figured out that this is a profitable addition to the core service salon offer.
However, the salon revenue model remains similar to most hair & nail salon.
The More Salon Income Streams, The Better
Locking yourself into the traditional salon revenue model outlined above will limit the potential of your salon. If done right, you can earn good money from the transactional income from services and selling retail, but why stop there?
In general, the more income streams you can add to your business, the better. Having different types of income, generated by creating value in different ways, for different consumers will not only improve your salon income. It will also limit your salon business risk. If one source of revenue is slow, another can compensate. And so on..
In the future we can expect that salons will move from having 8% of revenue outside services to 30-40%. TheSalonBusiness.com
But what can be new income streams for your salon business. Let’s learn how this is done in other industries.
6 Salon Revenue Models Your Salon Should Explore
There are many different types of revenue models and income streams that are commonly adopted in other industries. Not all are relevant for salon businesses but I have summarized the ones most applicable below.
1. The Fee-For-Service Salon Revenue Model
The first model is a model that you as salon owner should be most familiar with as this is the one where the business charges for the service they provide. Which, as we have learnt, is what the traditional salon revenue model is based on.
However, you also know by now that a revenue model consist of more than just the value you create but also to whom you provide the value. You should therefore not discount this as not way for you to innovate with your revenue model. You should ask your self: Can I provide a service to someone else but your traditional salon client? This might open up new options of income stream for you.
For example, let’s say you run a hairdressing business. Can you provide a service to other hairdressers by for example providing hairdresser education? Or could you offer styling services to other businesses that need that service? Like a film production studio or at a beauty retailer.
2. The Salon Subscription Model
This is when you charge a pre-determined fee for a contracted period rather than per transaction. This is a model that is used by newspapers and for cellular service. But it can also be done for salons.
Take the Rouge Make Up Salon for example. They offer their client’s a $250/month subscription service which entitles their clients to drop in at any time for a make up or waxing service.
Models that provide recurring income like this are good as they ensure you have a stable income even in periods which are typically slower in the traditional, transaction based, salon.
3. The Salon Advertising Revenue Model
The advertising model is often used by media companies who charge other business for advertising space in their media channels.
Brands and manufacturers are increasingly looking for experts who can endorse their brands. They also look for the right physical locations to promote rich brand experiences. As a salon owner you can offer both. If you also have a good online presence you can also “sell” advertising space in these channels. In particular if you or your salon has a strong social media following.
4. The Production Revenue Model
The production model is an old model that has been around for centuries. This is when a business creates value by manufacturing and selling finished goods.
The model is already commonly adopted by salons who’ve managed to build a know brand with their salon to later launch their own line of product. This has been considered a higher risk revenue model in the past as you’ve had to invest in R&D to develop your own line of products. Today this is much easier with many 3rd party manufacturers available to offer white label, ready made products, and hence more salons are entering into this space.
Going with a production model doesn’t necessarily have to mean launching physical products. You can also launch digital products – like online trainings or eBooks. The possibilities are endless.
5. The Salon Markup Revenue Model
The markup model is when you buy products from a manufacturer, add your markup to them, and sell them on to the consumer. Also this is a model you’re probably familiar with and most likely something you’re already doing in a salon.
I’m still sure there’s room for you to create more value for your salon here. You can choose to retail additional brand that are complementary to what you already have or you can start selling the brands in a new channel.
6. The Salon E-Commerce Revenue Model
Talking about new channels.. The fastest growing channel right now is e-commerce. You can either see this as a threat taking away retail sales from you. Or you see it as an opportunity for you to grow your salon.
The e-commerce revenue model encompass all of the other revenue models. You’re probably first thinking of using e-commerce with the mark-up model and sell brands online. But there’s much more you can do. With the right salon software you can for example also sell your services online.
Moving from Salon Commodities to Full Salon Service to Salon Experience
We’ve now covered a long list of additional revenue models that are relevant for your salon. But on top of this you can also revisit what you offer in the salon.
As we look to the future, it’s no longer enough to “just” offer a hair cut or a pedicure. These services are increasingly being seen as a commodity and if you go down this path you’ll just enter into a place where all that matters is price.
You need to move from selling a commodity to offer a complete service that deliver on the end value your clients wants. Further, you should look to the complete client experience your salon deliver. All the way from their first experience with you when booking online ( see best salon appointment softwares here ) to the experience during their appointment.
This goes beyond the service you deliver to the ambience of the salon as well as complementary offerings that increase the value of their appointment. Could your salon be combined with a wine bar? Or could you offer snacks, meditation experience, or other services as part of the salon visit.
When you start looking at what you offer your clients as a complete experience vs. just shorter hair you’re opening up yet another avenue of new potential salon income streams.
How Can I Practically Use This to Grow My Salon Business?
I am glad to see you’ve invested the time to read through this full article. I hope you now feel equipped with the theory behind salon revenue models and that the examples from other industries have already sparked some ideas for how you can find new revenue stream to grow your salon business.
I believe it’s clear that the traditional salon revenue model is about to change. They question is just if you’re ready to take advantage of the new opportunities that comes with it.
Let’s turn this theory into practice.
The best way to get started is to join my free course where I share practical salon marketing and business ideas to help you find a leverage new income streams to your salon.
Talking about income, as you’ve noticed, this (and all) articles here are available for free. I write to help salon owners like you grow your business. Thus, if you found the article helpful, it would mean the world to me if you wanted to share it with your like minded friends using the social buttons available on the page.
When you’ve done that, you can also check out another free resource with concrete examples of how you can find passive income streams in my article 5 Salon Business Ideas That Earn You Income While You Sleep .
If you have any questions or further ideas, drop a comment in the box below.
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May 16, 2019
Beauty Salon Business Plan
How to open a beauty salon this business plan excel template is a useful tutorial for your starting a beauty business, beauty salon business model highlights.
Five-year business model template to develop a beauty salon business with help of monitoring profitability, planning yearly revenues, extra product revenue, forecasting multiple expenses, inventory, and investment. This model designed to be simple to forecast an up to the 60-month operating budget and cash flows with a simple set of assumptions around salon job sales and expenses. The simplicity of the beauty salon business plan is confirmed by the use of tables, charts, reports, and financial summaries. Provides informative dashboard sheet. Equipped with detailed video instruction and helpful How to sections. Used by managers, directors, owners, founders, and investors. Available for editing and use in Excel or Google Sheets. Compatible with Mac and Windows.
A beauty salon business plan sample helps to calculate beauty salon startup costs as well as yearly revenues and top expenses, development expenses. With the help of a beauty salon business plan sample you can evaluate needs for certain services, costs of salon jobs, salaries of employees, and so on.
Key features
- Designed for flexibility in beauty salon planning .
- Easy manage of business and calculating main indicators.
- Revenues and variable expenses and all inputs, easily exposed to change.
- Developed informative reports of the beauty salon business plan income statement, core financials, and cash flow statement.
- Functional dashboard as well as built-in break-even, financial summary and beauty salon business plan valuation reports.
- Switch output currency, margins and safety stock features with immediate operations results included.
- You can forecast and calculate a sales volume, create a several business scenarios.
- This beauty salon business plan allows you to demonstrate summaries, financial charts and key reports open for editing, saving in PDF, printing and use in presentations.
Made for investors, founders, managers — CEO, CFO, COO, VP of Finance — or financial consultants and advisors that want to calculate exact revenue and expenses forecasts for beauty salon budget, enhance beauty salon business plan .
Easy to use
Explicit and thorough tables and charts tested by experienced businessmen and designed for various periods and beauty salon sizes.
Edit anything
Unlocked for editing. Detailed formatting and color scheme instructions given. Used in Microsoft Excel or Google Sheets. Add and calculate your own figures.
Personal support
All day available personal support: online and on the phone services along with an instruction video for comfortable use. Built by professional financial modelers and businessmen.
“Finmodelslab team did a great job building a quite complex, but easy to use, SaaS Financial Model for one of our USA based SaaS companies. Generally speaking, I recommend Finmodelslab highly.” – John Howell, Software and technology investor
of this model type from 2017 to today.
97% of users
say Finmodelslab models will help them accomplish their goals.
2 hours or less
is how long it takes to build a complete model, on average.
Why do you need a financial model template for a beauty salon?
- A beauty salon business plan helps to create and realize an effective development strategy.
- A beauty salon business plan sample is a helpful tool to easy managing of the business.
- A beauty salon business plan allows forecasting margins, sales mix, revenues, expenses, salaries, and wages.
With the help of the beauty salon business plan sample, you’ll be ready to:
- You can create a business plan for your beauty salon on 5 years period.
- You will be ready to track how much money your beauty salon generates.
- You will be able clearly to demonstrate the main financial data on 5 years period for your investors.
Beauty Salon Business Plan Sample: Features And Metrics from the revenue model to financials
In particular, it focuses on such critically important aspects as the following:
BEAUTY SALON BUSINESS PLAN SAMPLE FINANCIAL & OPERATIONAL METRICS
These tabs help to focus on the main financial & operational metrics both in the long-term and short-term perspective. You can make correct business decisions in time and impact on them to enhance the productivity of a beauty salon.
Beauty Salon Business Plan Reports
Reports are designed to present information in the form of tables and charts of the business. Thus, the beauty business plan shows more details about the financial state of your beauty salon
BEAUTY SALON BUSINESS PLAN DASHBOARD WITH CORE FINANCIAL METRICS
Beauty salon business plan dashboard graphs.
An interactive dashboard demonstrates your core financials — revenue breakdown, cash flow data, profitability forecasts, and cumulative cash flow. The options of beauty salon budget allow you to demonstrate data with flexible charts and to present the main information for investors, lenders, business partners.
BEAUTY SALON BUSINESS PLAN FINANCIAL AND OPERATIONAL METRICS
Beauty salon business plan financial metrics.
This metric demonstrates the overall beauty salon financial performance. So, you’ll be informed about metrics like EBITDA, CASH BALANCE, BEAUTY SERVICES, AND EXTRA PRODUCT REVENUE BREAKDOWN etc. for the first 24 months and the 5 years by month.
BEAUTY SALON BUSINESS PLAN OPERATIONAL METRICS
This metric demonstrates overall a beauty salon employee productivity, time productivity and productivity per station. So, you’ll be informed about the dynamic of the main operational metrics for 12 months, 24 months or 5 years.
BEAUTY SALON BUSINESS PLAN FINANCIAL SUMMARY: INCOME, CASH FLOW, AND BALANCE SHEET
Beauty salon financial summary.
The financial summary tab represents shows how a salon has used the funds. — the income statement with the year ending money, gross margin percentage, EBITDA, EBIT (the net expenses), net profit before and after tax.
BEAUTY SALON BUSINESS PLAN TOP REVENUE AND TOP EXPENSES REPORTS
Beauty salon business plan sample top revenue.
Top Revenue Depth tab allows you to learn the information about a volume of salon jobs and extra products. Beauty salon business plan sample enables you to choose a period to look at, e.g. 2020–2024 and shows the exact revenue numbers for each category: salon jobs and extra product.
BEAUTY SALON BUSINESS PLAN SAMPLE TOP EXPENSES
This tab of beauty salon budget sample track your expenses during the 5-year period and divides into 4 groups: marketing expenses, placeholder 3, total salary and wages and tax expenses. Everything else can be found in Other section.
BEAUTY SALON BUSINESS PLAN VALUATION AND BREAK EVEN LEVEL REPORT
Beauty salon business plan sample break-even analysis.
The break-even analysis helps to determine the level of sales volume, which the business makes neither a profit nor a loss — a point, where a new product or service will be profitable.
BEAUTY SALON DCF VALUATION
This tab shows how to measure the business worth and helps to calculate the cost of your business.
Beauty Salon Business Plan inputs and assumptions
To make a model alive you should use yellow cells to input assumptions.
BEAUTY SALON BUSINESS PLAN SAMPLE REVENUE INPUTS
Beauty salon business plan dashboard inputs.
This tab shows your business’ financial viability. Enter the main inputs and track the impact of changes on business. Core financials, cash flow data, revenue breakdown, profitability forecasts, a cumulative cash flow — all of that can be calculated on the Dashboard tab . Here you can build your own business scenarios. On this tab, you can visually track your key performance indicators on the charts.
BEAUTY SALON BUSINESS PLAN SAMPLE REVENUE ASSUMPTIONS
At this tab, you may input the extra product assumptions, the names extra product, launch date, margin etc.
BEAUTY SALON BUSINESS PLAN SAMPLE EXPENSES AND WAGES INPUTS
Beauty salon wages inputs.
The wages tab allows to easily calculate salaries for staff categories.
BEAUTY SALON BUSINESS PLAN SAMPLE FIXED EXPENSES INPUTS
These costs don’t vary depending on the number of customers, on services volume, sales — this sum to be charged periodically: every day / week / month / quarter / six months, etc.
BEAUTY SALON BUSINESS MODEL VARIABLE EXPENSES INPUTS
This tab demonstrates your expenses, that depends on the clients’ number, use of products, extra products, beauty services volume.
BEAUTY SALON BUSINESS PLAN CAPEX INPUTS
Beauty salon business plan sample capex assumptions & assets.
Here you can input Capital Expenses for the salon, internal calculations of the assets depreciation and the assets closing book value.
BEAUTY SALON BUSINESS PLAN DEBT AND CAPITAL INPUTS
Beauty business plan debt & capital assumptions.
Are you thinking about a loan or investment for your beauty salon? Our customized debt and grant settings and equity capital are all to your service! You can see internal calculations of the loans, interest, and equity.
BEAUTY SALON BUDGET SAMPLE INVENTORY ASSUMPTIONS AND OUTPUTS
On this sheet, you can track your inventory and working capital within 60 months period. Outputs tab is the “engine” of the model. All core calculations are done here.
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Salon Business Plan Template & Guide
Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their salons. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a salon business plan template step-by-step so you can create your plan today.
Our salon business plan template works for all types of salons, including:
- Hair or Beauty Salons: which most commonly include hair-cutting, coloring and styling
- Nail Salons: which typically include nail treatments, manicures and pedicures
- Hair Removal Salons: commonly include waxing and other forms of hair removal
- Skin Care Salons: commonly include facials and skin care treatments
- Tanning Salons: include tanning services
- Day Spa Salons: often include massages, aromatherapy and other services
- Combination Salons: include services from more than one of the above salon types
This being said, we also do have specific pages for information on our hair salon business plan , nail salon business plan , and beauty salon business plan .
Download our Salon Business Plan Template here
What Is a Business Plan?
Why You Need a Business Plan
If you’re looking to start a salon or grow your existing salon you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your 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.
Source of Funding for Salons
With regards to funding, the main sources of funding for a salon are bank loans and angel investors. With regards 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 confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a salon business.
The second most common form of funding for a salon is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a salon. They might consider funding a chain of salons, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.
Salon Business Plan Template
Your salon business plan should include 10 sections as follows:
Executive Summary
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of salon you are operating and the status; for example, are you a startup, do you have a salon with existing customers and revenues that you would like to grow, or are you operating a chain of salons.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the salon industry. Discuss the type of salon you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your salon’s marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
Company Analysis
In your company analysis, you will detail the type of salon you are operating.
For example, you might operate one of the following types:
- Hair or Beauty Salon
- Hair Removal Salon
- Skin Care Salon
- Tanning Salon
- Combination of the above types
In addition to explaining the type of salon you operate, the Company Analysis section of your business plan needs to provide background on your business.
Include answers to question such as:
- When and why did you start your salon business?
- What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
Industry Analysis
While this may seem unnecessary, it serves multiple purposes.
First, researching the salon industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards a new type of hair or nail service, it would be helpful to ensure your plan included offering such services.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the salon industry 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 business plan:
- How big is the salon business (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 market for your salon. You can extrapolate such as 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 plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of salon you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than teens.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most salons primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
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Competitive Analysis
Direct competitors are other salons.
Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes products they can purchase from supermarkets and other retailers both offline and online. You need to mention such competition to show you understand that not everyone in your target market frequents a salon on a regular basis or at all.
With regards to direct competition, you want to detail the other salons with which you compete. Most likely, your direct competitors will be salons located close to your location.
For each such competitor, provide an overview of their businesses 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 services do they offer?
- What products do they offer?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave 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 superior salon services?
- Will you provide superior salon products?
- Will you provide salon services that your competitors don’t offer?
- Will you make it easier or faster for customers to acquire your products?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Marketing Plan
Product : in the product section you should reiterate the type of salon that you documented in your Company Analysis. Then, detail the specific services you will be offering.
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.
Place : Place refers to the location of your salon. Document your location and mention how the location will impact your success. For example, is your salon located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.
Choosing a location for your salon is an extremely important decision. With the right location, the salon will at least launch on the right foot. With the wrong location, customers may never arrive in the first place. Consider the following two factors with regards to your location:
1. Proximity to Customer Base
To decide on a good location from a customer perspective, you must first know who your target customers are (stay-at-home moms, working women, teens, families) as discussed above. Once you’re clear on this, you can begin scouting locations. Being close to your customer base could mean being close to their homes, but could also mean being near their workplaces or en route between the two. Being close in distance is important, but being accessible (e.g., adequate parking) is even more important.
2. Landlord
Hopefully you’ll be in your location for many years. That means that you will be forming a long-term relationship, even a partnership, with your landlord. The landlord should be invested in the success of your business and understand that what is good for your salon is also good for them. During initial discussions with landlords, look out if you sense that they are focused solely on rules, restrictions and regulations, rather on what you want to do. If the landlord seems intent on starting an antagonistic relationship, think twice before signing the lease. When you choose your location, you are choosing a landlord so make sure you’ll be able to get along with them and have the leeway you need to run a successful salon.
Promotions : the final part of your salon marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Making your salon’s front store extra appealing to attract passing customers
- Developing and marketing your website
- Social media marketing (advertising and organic posts)
- Advertising in local papers and magazines
- Reaching out to local bloggers and websites
- Partnerships with local organizations
- Local radio advertising
- Banner ads at local venues
Also think about your salon’s Unique Selling Proposition (USP), which should answer why customers should choose you over other salons. Make sure your USP is reflected in your marketing.
Here are some additional marketing tips if you are launching a new salon:
Promote the Opening of Your Salon
To be sure of a well-attended launch event, start promoting early, with attractive signage outside your salon. This should be geared towards your target demographic – women for most salons. Setting up an employee on the street outside or nearby to hand out flyers in the days leading up to and during the opening event can increase visibility, especially if this is an uncommon occurrence in your neighborhood. The point is to stand out and to reach a large portion of your intended customer market with the message that your opening event will be something they don’t want to miss.
Plan a Great Spa or Salon Deal to Increase Profits
Plan for Smooth Salon Operations
To show off your salon at its best, having a pristine and spotless store is a minimal requirement. The operations have to be smooth as clockwork on opening day, especially if appointments and walk-ins make it a very busy first day or week. Customers who use your services during this time can become ambassadors to your customer target group for you, speaking of how wonderful the experience was, or they can spread the word about how they waited forever without hearing what was happening, how staff were sloppy or rude, and how they would never return. You need the early adopters on your side, so make sure the human, computer, and mechanical systems are all ready to work perfectly from day one and that you have contingency plans for unforeseen problems.
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 such as serving customers, procuring supplies, keeping the salon clean, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.
Management Team
Ideally you and/or your team members have direct experience in the salon business. 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 like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in salons and/or successfully running retail and small businesses.
Financial Plan
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues 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 20 customers per day or 50? Will your average price point be $50 or $100? 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 : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your salon, that 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 bank writes you a check for $100.000, 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 make sure 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. For example, let’s say a company approached you with a massive $100,000 salon contract to provide salon services to their employees. Let’s assume the contract would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a salon:
- Location build-out including design fees, construction, etc.
- Cost of equipment like chairs, washing equipment, etc.
- Payroll or salaries paid to staff
- Business insurance
- Licenses and permits
- Legal expenses
Summary & Keys to Salon Success
Putting together a business plan for your salon is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the salon business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful salon.
Finally, in addition to completing your business plan, be sure to pay special attention to the following factors that often define success for salon businesses:
- Make sure all of your clients are thrilled with your services
- Keep your salon clean at all times
- Provide excellent communications with current and prospective clients
- Embrace new technology, particularly social media to engage your clients and get them to return to your salon
- Focus on growing revenues, but also on profits, by keeping a close eye on costs
- Hire the right team, train them well and treat them well so their performance is strong and they are loyal to your business
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Salon Business Plan FAQs
What is the easiest way to complete my salon business plan.
Growthink's Ultimate Salon Business Plan Template allows you to quickly and easily complete your Salon Business Plan.
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You can download our salon business plan PDF template here . This is a business plan template you can use in PDF format.
Other Helpful Business Plan Articles & Templates
Salon & Spa Business Plans
Did you know each of these plans was created in LivePlan? Learn More
Day Spa Business Plan
Pamperzhou Day Spa is a new upscale destination in Freeway County, CA, offering a complete day spa experience.
Hair And Beauty Salon Business Plan
Trend Setters Hair Studio is a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship.
Hair Removal Business Plan
Laser Dreams specializes in laser hair removal, electrolysis and microdermabrasion.
Hair Replacement and Salon Business Plan
Herr Haar is a spa and beauty salon specializing in hair replacement services, as well as offering hair styling, massage, and beauty products.
Hair Salon Business Plan
Cranium Filament Reductions is a hair salon that strives to provide their customers with a quick and budget-friendly experience.
Health Spa Business Plan
SoulSpace Holistic Spa and Salon offers its customers the unique combination of hair styling, massage, body and energy work, and health training in a beautifully serene setting.
Massage Products Business Plan
Massage Tools Products Inc. sells massage tools to ease chronic overuse injuries and discomfort experienced by busy massage therapy professionals.
Men's Salon Business Plan
Jonpaul's is an upscale old-world gentleman's barber shop offering premium grooming services and products.
Retail Property Sub-leasing Business Plan
Galerie de Beaute will be the first salon mall in the state, sub-leasing mini-salon units to hairdressers, nail technicians, aestheticians, and massage therapists.
Spa Health Club Business Plan
Visions is a health club that is concerned not only with physical beauty but also with mental well being. It is a combination spa, salon, and health club.
Tanning Salon Business Plan
Tropical Tan is a start-up tanning salon company seeking financing. In addition to selling tanning booth sessions, they will also retail swimwear, and skin care and tan enhancing lotions, oil, etc.
Opening up a salon or spa is all about providing exceptional customer service. But in order to focus on exceeding expectations, you need to make sure you have everything else in order. That’s where your business plan comes in.
Get inspired by our collection of sample business plans beauty salons, hair studios, barbershops, hair salons, day spas, hairstylists, and other salon and spa type businesses. It’ll help ensure that you have everything planned out so you can focus on what really matters, the experience of your customers.
If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.
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How to Open a Beauty Salon in 8 Steps
Want to take your entrepreneurial journey in a beautiful direction start your own beauty salon business in just eight straightforward steps..
Join the 1,000,000+ businesses that have chosen Incfile .
How to Start a Beauty Salon Business in 8 Steps
Starting a Beauty Salon Business
Conduct market research.
Before ordering a single salon chair, it's important to do your due diligence by first conducting market research. As Small Business Administration (SBA) explains , "market research blends consumer behavior and economic trends to confirm and improve your business idea." Start by gathering as much information as you can about your target customers. You can often do so by looking up demographic statistics about the area you're planning to open your salon.
Then, use every resource you can to answer questions like:
- Is there sufficient demand for a new salon in this area?
- How many potential customers will I have?
- Do my potential customers have enough disposable income to purchase salon services?
- Do my potential customers live nearby, or will I have to reach them in other areas?
- How many direct competitors will my salon be going up against?
- What are my competitors' prices, and how many customers are willing to pay them?
With those answers in hand, you'll be much better prepared to make smart business decisions and create a winning plan for your salon.
Decide Which Type of Salon to Open
From beach waves to elaborate nail art to laser skin treatments, the sky's the limit when it comes to the services your salon can specialize in. That's because beauty salons might all belong to the same category, but that doesn't mean they're all the same. While one salon might offer hair services, another might offer tanning only — it all depends on the salon. When choosing which type of salon to open, you can speed up the decision-making process by choosing which services to offer. Your options include:
Hair services such as cutting, coloring and styling
Nail services such as manicures and pedicures
Skin treatments such as facials and waxing
Tanning , either with UV lights or sprays
And once you've chosen a general type of salon, you can differentiate yourself even further by choosing more specific specialties, whether that means balayage, beach-ready spray tans or something else entirely.
Pick a Business Name and Make a Plan
Once you know which type of salon you want to open, it's time to give it a name. And during the brainstorming process, don't be afraid to get punny. After all, the salon world is full of opportunities for cheeky names. Case in point:
The Mane Event
Shear Bliss
Hairway to Heaven
Hair's Looking at You
The Big Clipper
Rain and Nail
But if puns aren't your thing, you can always choose a name that's stylish and memorable. Even names as simple as 6th Street Salon or The Parlor have a certain ring to them. Still stumped? No worries — our Business Name Generator can help. Next, get your salon business ideas organized into a business plan. Be sure to include:
An executive summary
Summarize your entire plan's most important points here.
Perhaps you want to hire three stylists within six months or acquire a certain number of clients by year's end.
A business description
Define what makes your salon unique and describe its location.
Market and demand analysis
What's the local competition like? Do customers want another beauty salon in town?
Your business structure
Most salons start as a Limited Liability Company (LLC) but be sure to research every business entity type before making a decision.
Your business model
For instance, will you hire stylists as employees or rent out chairs to them?
A marketing and sales plan
How will you get the word out about your salon? How will you encourage customers to buy more products and services?
Financial information
List your salon's expected expenses, revenue and profits.
Put any notes or sources you'd like to refer back to here.
Estimate Expenses
When people go to a beauty salon, they usually expect to feel like a VIP. But as salon owners across the country already know, the space and supplies needed to provide the red carpet treatment are far from free. Wondering just how much it costs to start a beauty business? The exact amount varies, but it typically costs between $40,000 and $250,000 to buy an existing salon or anywhere from $100,000 to $500,000 to build one from the ground up. In addition to startup costs, it's also important to account for other potential expenses, including:
Depending on where you're located, you might need to get a general business license sales tax license and/or retail license, and you'll definitely need a cosmetology license.
Our Business License Research Package can help you determine exactly which licenses and permits you need.
Chairs, hair wash basins, tools, decor, drying hoods, massage tables, mirrors and retail shelving all add up fast, so be sure to calculate the cost of all the equipment you'll need.
In case an accident happens, you'll definitely want to get your salon insured.
If you decided to lease salon space rather than buying or building it yourself, you'll need to pay rent on it.
Website and branding
Salons offer luxury services rather than necessities, so you'll need to entice customers to purchase with an attractive website and branding. You can keep expenses low by doing it yourself, but professional-quality work from a designer will cost more.
If you're going to be placing ads for your salon or running marketing campaigns, remember to account for their cost.
Many salons sell hair, nail and skin products to customers, and if you want to do so too, then you'll need to buy them first.
Tools like hair dryers can use a significant amount of electricity, and washing each client's hair will send gallons of water down the drain. So, make sure your utility bills won't catch you off guard.
Register Your Beauty Salon
Ready to make things official and even more permanent than a good dye job? Register your beauty salon as a business entity with your state's government.
There are five main business structures to choose from:
Sole proprietorship
If you don't formally register your salon, it will operate as a sole proprietorship by default. However, sole proprietorships offer zero personal liability protection in the event that your salon is sued or runs into financial trouble, so we don't recommend this option.
Partnership
This is like a sole proprietorship but with two or more owners. Also like a sole proprietorship, a partnership probably won't be able to provide the liability protection you need.
Limited Liability Company (LLC)
As the most popular entity type for salons, an LLC is affordable and easy to set up but will keep your personal assets protected. Translation? Your house won't be at risk if your salon goes under.
This entity type is best for corporations with under 100 shareholders, but a small salon typically won't have a reason to become an S Corp .
A large chain of salons might want to register as a C Corp , but the process is far too complex and costly to be worth it for most independent salon owners.
Most entrepreneurs find an LLC to be the best choice for starting a new beauty salon. If the same is true for you, you can easily file your LLC now .
Get Funding and a Location
Looking good isn't often cheap, and neither is opening a beauty salon. So, you may need to secure outside funding in order to open yours. To raise capital for your salon, you can turn to:
Traditional loans
Available from major banks nationwide, these loans have desirably low interest rates but can also come with strict requirements and lengthy funding times.
These government-backed loans range from small microloans to larger 7(a) loans .
Investment groups
If you're willing to give up 100 percent ownership of your salon, you might want to pitch your business to investment groups.
Friends and family
Not keen on taking out loans from banks or other lenders? See if you have any friends or family members who'd be willing to help (just be sure to put everything in writing to avoid conflict down the road).
Crowdfunding
If you're able to drum up enough interest from your community, crowdfunding platforms like Kickstarter may be viable options.
Once you have funding secured, it's time to rent or purchase a location for your salon (sites like LoopNet and BizBuySell can help you find nearby salons for sale), get your equipment set up and plan your grand opening.
Upgrade Your Tech
You wouldn't want to trade in your smartphone for a cell phone from the 80s, so why would you run your salon with a cash register that is? When choosing which technologies to use in your salon, pay attention to these key areas:
Cash register
With a built-in cash drawer and receipt printer, the Square Stand Kit is a modern and relatively affordable option for any salon.
Point of sale (POS) software:
Square's POS integrates scheduling and appointments , making it ideal for salons. Similar options include Vagaro , Fresha and Clover .
Salon management
DaySmart Salon combines digital booking, client management, salon metrics, online booking, payment processing and more, all in a single solution . Comparable options include Mangomint , Zenoti and Rosy .
Website building
Squarespace , Wix and GoDaddy can all help you design a stunning site for your salon, no design or site development experience needed.
Communication
Group texts can get confusing, so consider using platforms like Slack and Flock to stay in touch with your team. You can even use a virtual phone service like Grasshopper to ensure all your calls from clients stay organized.
Maintain Your Beauty Salon
Once your salon is up, running and beautifying the community one client at a time, you'll still have to keep it compliant by performing some regular maintenance tasks.
File Annual Reports
In most states, LLCs and corporations must submit annual reports describing their earnings, management changes, contact information and other key details.
Due on a quarterly basis, estimated taxes are required for almost all self-employed Americans. In addition to your estimated taxes , you'll also need to prepare and file a yearly tax return for your salon. Don't forget about sales tax and payroll tax, too. Not a numbers person? Don't sweat it — our Accounting and Bookkeeping service can take the stress out of tax season.
Renew Contracts, Permits and Licenses
If stylists rent out chairs at your salon, you'll need to renew your agreement with them on a regular basis. Remember to keep your salon's permits, licenses and supplier contracts updated, too.
A Deeper Look at the Beauty Salon Industry
So you're in the process of opening your own beauty salon, but do you know the details of the industry you're entering? It's ready for its close-up. As of 2022, the U.S. beauty salon industry (that includes hair, skin and nail salons) was worth an impressive $53 billion. Even better, the market for both spas and beauty salons is expected to grow at a rapid rate, from $116 billion in 2020 to a staggering $244.5 billion by 2030. Salon owners directly benefit from that growth, with the median salon owner salary being over $69,000. That's significantly higher than the United States' Q2 2022 median annual salary of about $54,000. So know that as a future beauty salon owner, you're about to join a thriving industry that isn't showing signs of slowing down.
Common Questions About Starting a Beauty Salon
Get answers to some of the most frequently asked questions about opening a beauty salon.
Yes, beauty salons are profitable businesses. The average salon makes $19,000 in profit each year, and salons' average profit margin is 8.2 percent.
When running a beauty salon, you'll likely encounter certain types of expenses on a regular basis. These might include:
- Rent (or commercial mortgage payments).
- License and permit renewal fees.
- Credit card processing fees.
- Insurance premiums.
- Loan repayments.
- Product costs.
Less frequently, you might also have to upgrade your salon's equipment and decor.
For hair salons, the average annual revenue is $245,000.
Starting a Beauty Salon With Incfile? Shear Genius
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How to Write a Beauty Salon & Day Spa Business Plan [Sample Template]
Are you about starting a beauty salon and spa? If YES, here’s a complete sample day Spa business plan template & feasibility report you can use for FREE . Okay, so we have considered all the requirements for starting a beauty salon and spa. We also took it further by analyzing and drafting a sample beauty salon and spa marketing plan template backed up by actionable guerrilla marketing ideas for beauty salon and spas. So let’s proceed to the business planning section.
Why Start a Spa Business?
It is true that one have got to eke out a living, but, it is even more important to know that all work and no relaxing could deal a sad blow on the body. This is one of the reasons why there has been a rise in the spa business all over the world. In America for instance, there are loads of day spas and health spas, which see to it that customers are given the best services that will give you one of the best experiences yet.
One of the ways through which you could capture the hearts of all and sundry and get them coming over and over again, is helping them de-stress from the hectic day to day schedules. This is one of the things that those who already run a spa business have at the back of their minds.
They know that one of the ultimate reasons why they are in business is to make life easier for people. Here is a sample spa business plan that will help you effectively write yours without much hassle.
A Sample Beauty Salon & Day Spa Business Plan Template
1. industry overview.
In the united states of America there is always the need to work so as take care of the basic needs of life. Some folks get to work round the clock with little or no time left for them to take care of their selves. Some do not even mind looking the way they are, since there isn’t ample time to take a second look at how they are.
Yet others wouldn’t mind to muster some little time to pamper their selves. These set of people are the types that do not mind to visit a spa or have a spa attendant come home for a massage. They do not even mind to pay a premium to have all these services and more.
Over the years we have come to see that the spa business have continued to be on the rise, as the demand for it continues to increase. One of the very good things about this trade is the ability to have a spa attendant come for a private service.
In the past this used to be an issue, as some attendants were skeptical. However, today, it is a different ball game entirely, as the spa business have become a no holds barred type of service rendering business. It is no wonder that very business upwardly mobile people can rest assured that they can get the best of spa services.
Starting a spa just like every other business needs for one to be thoroughly calculative. This is because of the need to start on a right footing. Steps like renting or buying a facility to use, procuring the various equipment that is needed, finding the right employees, as well as getting the required skills involved in starting a spa business, are just some of the hurdles that must be scaled. Nonetheless, there are other very technical steps that have to be cancelled out too.
It is also very important that in running a spa business successfully, there has to be a flexible payment option for customers to use. It is important to state that these days, Spa business also provide some other services asides from the typical spa. Some go as far as having a drink and food lounge, where customers can unwind whilst they wait, or even after being serviced.
For the spa owners these are also other areas through which they are able to generate more funds for profitability and for running the business to grow successfully. When starting a Spa business, it becomes important to choose a location that is close to a boutique, hair salon or nail salon. This is o that there would be ample opportunity to attract the kind of people that want spa services.
2. Executive Summary
LaCozy Spa World is a new classy neighborhood in Maryland, Washington DC. It promises an all-round day spa experience. We offer four classy, ultra- chic treatment rooms with premium spa linens and equipment. Our massage styles are second to none, as we offer the very best. They include; the traditional Swedish Massage, Hot Stone Massage, Deep Tissue work, Pregnancy, Sports, Reflexology, amongst many others.
We also have very effective facial and body treatments. We have also got the latest anti-aging products and techniques that can effectively meet the needs of our clients. As a matter of fact, we are specifically located near hair and nail salon, so that we are able to attract clients who would also be in need of spa services.
LaCozy Spa World is a standard Spa lounge in a 4,000 square feet facility. It is therefore no joke to say that we have one of the biggest spas with the latest products and service techniques in Mary land Washington Dc. We have got the very best of attendants who have been well trained to make clients visit a worthwhile and fun packed one.
We have a posh and classy environment that can attract all and sundry to come have a taste of what it means to run an ultra- chic spa. Furthermore, we have gifts for each customer who come to patronize us. Our Spa will be open from 8 a.m. and close 10 p.m. from Mondays to Thursdays, and will run a 24 hour service from Friday to Sunday.
We decided to operate in this format because from our market survey and feasibility studies, we realized that customers have the most flexible time schedules during the weekends. It is pertinent to state that we have the finest DJs in the house every single day of the week, who have been trained to serenade the clients whilst they get serviced.
LaCozy Spa World has well trained employees who have hands on skills, as to how to give clients the very best. It is no wonder that out Mantra at LaCozy is customers first. Our products are majorly organic, and so customers can rest assured, knowing that there wouldn’t be any reaction whatsoever on their skin.
Whether it is the male folks, or the women folks, or even children, bottom line is that we have what it takes to leave them smiling and satisfied. Our bar attendants and those who man our restaurant arm of business, have the best of drinks and foods that can leave them satisfied.
One of the things that most clients look out for in a spas, is the level coziness; we have therefore done adequate research in that area , which is why we have spent quite a lot in making our Spa really beautiful and conducive. Our state of the art facility in Maryland Washington Dc, USA is so attractive that people who our services need cannot but walk in because we use the latest technology in the industry.
Our excellent customer service is second to none, as we have exhaustively trained our employees to know that customer is king in this trade. Furthermore, LaCozy Span World is owned and managed by Madame Helen Oakwood and her family.
She is the financier, and she functions as developer and manager for LaCozy Spa World. She has been a business administrator and sales professional for over 1o years, with a track record that speaks volume. She has worked as a manager in one of the leading Spas in Washington DC. After her retirement there, she decided it was time to start her own business.
3. Our Products and Services
At LaCozy Spa World, our paramount aim is to give our clients an all-round experience so that they do not have to look elsewhere. As such, this is one of the reasons why we propose to offer a wide range of services offered by licensed therapists and aestheticians that would keep our clients asking for more.
Our Ultra- chic facility and ambience sure does promises a lot. Some of the services and amenities that we offer to clients include the following that have been listed below. These are the services and amenities that will be made available to our customers;
- Therapeutic Massage Services
- Body Treatments
- Anti-aging Treatments
4. Our Mission and Vision Statement
- Our Vision is to be the number one Spa Lounge in Washington DC.
- Our mission is to run a money-making business by offering therapeutic massage and aesthetician services in a gentle, classy, professional setting.
Our Business Structure
LaCozy Spa World is set to become one of the leading Spas in Maryland, Washington DC. As such, there would be the need to lay down a solid business structure foundation. This is so that we are able to meet and even surpass our expectation.
We do not intended to take our customers for granted, which is why we are set to make excellent customer our watch word. In realizing this, we know that hiring the best hands would deliver. Web also will lay emphasis on giving our employees a thorough training.
Essentially, we want to build a dedicated workforce that will work together to help the organization achieve its projections. This is so because we know that with the right structure in place, we are able to build systems and structures that will make the business even run on autopilot.LaCozy Spa World will employ skilled people to occupy the following position;
- Manager (Owner)
- Accountant/Cashier
- Marketing Officer
Spa Attendant
Aesthetician
- Coffee and Bar Manager
Restaurant Manager
- Security Guard
5. Job Roles and Responsibilities
Manager (Owner):
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for recruitment
- Responsible for payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities at the Laundromat
- Ensures that the facility is in tip top shape and conducive enough to welcome customers
- Prepares budget and reports for the organization
- Responsible for Training and Development in the organization
- Handles procurement
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team hires
Marketing Officer (2)
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information.
- Represents the company in strategic meetings
- Helps increase sales and growth for the company
- Manages the company’s CRM system
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Sees to it that clients are attended to and on time
- Books clients for massage sessions
- Passes information to the aesthetician about clients
- Reaches out to clients when information needs to reach them
- Takes and book clients for massage sessions
- Carries out all massage styles and formula on the clients
- Makes sure they are satisfied at all times
- Makes sure that all beauty and massage therapies are body friendly.
Coffee Café and Snacks Bar Manager:
- Interacts with customers, take orders for coffee and snacks.
- Responsible for preparing different flavor and style of coffee for customers
- Makes lists of supplies in conjunction with the bar manager
- Ensures that each cup of coffee that leaves the kitchen is tailor made and meet the request of each customer
- Responsible for quality control
- Assesses customers’ needs and preferences and make recommendations
- Makes lists of supplies in conjunction with the management
- Prepares inventory or purchase requisitions as needed to replenish supplies.
- Ensures that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.
- Interacts with customers, take orders for food.
- Responsible for preparing different flavor and style of food for customers
- Makes lists of supplies
- Ensures that each meal that leaves the kitchen is tailor made and meet the request of each customer
- Ensures that the assigned restaurant area is fully equipped with tools and products needed for whipping up meals and serving guests.
Accountant/Cashier:
- Moves round the machines to collect payment after each working shift
- Prepares financial report at the end of every working week
- Handles all financial transaction on behalf of the company
- Interfaces with our bankers
- Responsible for payment of tax, levies and utility bills
- Handles any other duty as assigned by the manager
- Mops the floors
- Wipes down the machines
- Cleans the soap dispensers in your front-load washers
- Washes off the folding tables
- Cleans the bathroom
- Empties the trash
- Washes the windows
- Cleans the vending machines, change machines and video game screens
Security Guards
- Ensures that the facility is secured at all time
- Controls traffic and organize parking
- Gives security tips to staff members from time to time
- Patrols around the building on a 24 hours basis
- Submits security reports weekly
- Handles any other duty as assigned by the restaurant manager
6. SWOT Analysis
Without a shadow of doubt, starting a Spa indeed needs loads of cash, and this especially applies to aspiring entrepreneurs who may not have huge sum of money saved up in a bank. We know that loads of cash is vital in the setting up of a standard Spa business, which is why we decided to do all that is required to build a profitable business.
As such, we are taking meticulous steps in seeing that we do the needful. Part of the needful step required to be taken, is conducting a SWOT Analysis.
It is for that reason that we employed the services of Mr. Adolphus Nettune, an HR and Business consultant who is renowned for the trade, to help us conduct SWOT analysis for our company and he did a pretty good job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of LaCozy Spa World;
LaCozy Spa World is centrally located where there are salons and nail studios. We see this as a strength, as we will be able to attract clients who might as well need to be massaged, pampered, amongst others.
We believe that locating our business in Maryland, Washington Dc would eventually work out for good as we look to attract a great deal of people. Yet another strength is the fact that we have equipment that are second to none and the equipment will help us give our clients the best of services.
The weakness of LaCozy Spa World can be said to be the fact that it is a new business, which is owned by an individual (a small family), and we may not have the financial capacity to sustain the kind of publicity that can give us leverage.
- Opportunities:
We are centrally located in one of the busiest areas of, Maryland, Washington DC and we are open to all the available opportunities that the city has to offer. Our business concept has us positioned in such a way that we will attract all and sundry.
One of the major threats that confronts businesses all over the world is economic downturn; when the economy is bad it affects consumers spending which in turn impacts businesses negatively. Another threat that may likely just affect us is the competition which is found in the spa industry.
Every day, more and more people are going into the industry, and we dare add that only the strong will survive, which is why we are working hard to position our self in a way that makes everyone want to check us out.
7. MARKET ANALYSIS
- Market Trends
The ability for spa business owners to continue to seek out ways to serve their clients in the most appropriate ways is one of the keys to attracting loads of clients. This is where a beauty salon & spa marketing plan comes in handy. One of the ways that this is done is by having additional complementary services to their business offerings.
It is for this reason that once a Spa is classy, conducive and relaxing, then profit is assured because people would always want to check the services out. It is also as a result of this that we at LaCozy Spa World have some additional services, like a drink bar; where clients, or even their family or friends can hand out and wait for them whilst they get their bodies massaged and cared for.
Also there is a Karaoke session that allows our in- house DJ to entertain folks. We have also got a restaurant that would offer great meals for the delight of customers. In Maryland, Washington DC for instance; there are only a few people offering these services and so we want to key into the trend.
Yet another thing that can be attributed as one of the success factor, as can be observed about other successful existing Spa, is the fact that they have invested quite a lot in making the Spa Facility a haven to behold. We have also keyed into the trend and we have succeeded in making the interior and exterior a classy one indeed.
8. Our Target Market
Before arriving at the place that would be suitable for our ultra- chic Spa, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings.
As a result we found that Maryland, Washington DC just might be our best bet, as we are sure to attract upwardly mobile people, working class folks, as well as non- working class people. Hence, these are the category of people that we intend marketing our Spa business to;
- Busy Corporate Executives
- House Wives
- Business Owners
- Visitors/Travelers
Our competitive advantage
From our recently concluded feasibility studies and market survey, we observed that the competition sure is a stiffer one because there are quite a number of people who run spas around where we are located. It is for this reason that we have added some more services like the drink bar, restaurant and the Karaoke lounge, because we know that there are only a very few who measures up to want we want to offer.
Yet another competitive advantage we have over others is that we have a standard Spa facility that offers additional complementary services that will definitely help us attract and retain customers. We are categorically hopeful that we have a state of the art Spa facility with the best massage techniques ever.
We also have an advantage because of the type of products we offer our clients, which has no side effect at all. We know how harmful some chemicals can be, that is why we have keyed into using organic products.
9. SALES AND MARKETING STRATEGY
- Sources of Income
LaCozy Spa World will generate income from the following service offerings;
- Offering massages
- Offering skin therapies
- Sale of organic beauty products
- home services
10. Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field with reference to similar business in Maryland, Washington DC.
We know that we are well positioned and we will definitely attract clients that will not only patronize our spa, but clients that will patronize our bar and restaurant. This means that we will generate additional income from these sources. Below is the sales projection for our business, it is based on the location of our LaCozy Spa World and the type of services and products that we will be offering;
- First Year-: $80,000
- Second Year-: $120,000
- Third Year-: $180,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any Spa offering same additional services like us within 4.5 miles radius from our facility.
- Marketing Strategy and Sales Strategy
Essentially, the marketing strategies which we will adopt will be such that can guarantee us a great turn over. Furthermore, our sales strategies is going to be driven basically by making available an ultra- chic facility, excellent customer service and provision of complimentary services.
We will be on our toes all the time to make sure that we build a loyal customer base. These customers are such that will always patronize us over and over again and as well help us use word of mouth publicity to get their friends and acquaintance to patronize us.
We want to drive sales through using really effective organic products, excellent services, so that we can surpass the expectations of the clients we are able to attract overtime. We shall also keep our clients glued to us by the constant trainings which we will give to our employees so that they can continue being at the plateau of their skills.
Over and above, our unique selling proposition is that we have various complementary service offerings such as a drink bar, Karaoke lounge, restaurant, as well as the massage techniques we have to offer. We make bold to say that there aren’t too many people who are into Spa business, the way want to run ours.
In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but ensure that they become loyal customer. Part of the marketing and sales strategies that we will adopt are;
- Open LaCozy Spa World with a loud party. We shall also offer free trial for all our visitors for the first three days of launching the business.
- Advertise our Spa business on national dailies, local TV stations and local radio station
- Promote LaCozy Spa World online via our official website and all available social media platforms
- Continuously Improving the performance of our brands
- Hire the services of experts to make our brands the first choice for in Washington DC
- Delivering consistent customer experiences to all our guest; making our first impression count positively
- Make use of attractive hand bills to create awareness and also to give direction to our state of the art facility.
- Adopt direct mailing coupon marketing approach
- Position our signage/flexi banners at strategic places
- Create a loyalty plan that will enable us reward our regular customers
- Engage on road shows within our neighborhood to create awareness for our business.
11. Publicity and Advertising Strategy
We are aware of the power of publicity and advertisement for new businesses like ours which is why we created a budget that will help us access various publicity and advertising platforms that will enable us reach out to our potential market.
At LaCozy Spa World, we will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our business. Here are the platforms we intend leveraging on to promote and advertise LaCozy Spa World;
- Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our Laundromat business in relevant magazines- beauty and non-beauty magazines, local newspaper, local TV stations and local radio station.
- Promote our Spa business online via our official website
- List our Spa business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- Install our Bill Boards on strategic locations
- Direct coupon mailing approach
- Engage in road show from time to time
- Distribute our fliers and handbills in target areas all around Las, Vegas.
12. Our Pricing Strategy
At LaCozy Spa World, our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in the city we are located.
Be that as it may, the management of LaCozy Spa World have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us. The prices of our products (Organic skin care products, drinks, foods, amongst others) will be same as what is obtainable in any part of the United States of America.
- Payment Options
Basically, we have put in place different receiving payments options; especially for our complimentary service offerings. In other words, our payment policy is going to be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;
- Payment by cash /coins
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.
13. Startup Expenditure (Budget)
This is the key areas where we will spend our start – up capital on;
- The Total Fee for Registering the Business in Maryland, Washington DC – $750.
- Legal expenses for obtaining licenses (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) – $4,500.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Consultant – $2,000.
- Insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- Cost of accounting software, CRM software and Payroll Software – $3,000
- Cost for leasing facility for the Spa – $70,000.
- Cost for facility remodeling – $50,000.
- Other start-up expenses including stationery – $1000)
- Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory – $15,000
- Storage hardware (bins, utensil rack, shelves, glasses case) – $2,720
- The cost for Washer hook-up fees (sewer connection) – $800
- Cost for serving area equipment for Bar and Restaurant( glasses, flatware) – $5,000
- The cost for the purchase of furniture and gadgets (, Printers, Telephone, TVs, Sound System, toys, vacuum cleaner, tables and chairs et al) – $30,000.
- The cost of Launching a Website – $600
- The cost for our grand opening party – $5,500
- Miscellaneous supplies (cleaning supplies, soap, invoices for wash-and-fold, bathroom supplies, etc.) – $10,000
We would need an estimate of $1 million to successfully launch our Spa business in Washington DC Please note that the startup cost is higher than the average startup cost for a Spa business simply because we intend adding a bar, and restaurant.
Generating Funding/Startup Capital for LaCozy Spa World
LaCozy Spa world is a family business and it will be financed by the owner who is also the Laundromat manager. These are the areas where we intend sourcing for fund for LaCozy Spa World;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from family members and friends (soft loans)
- Generate a larger chunk of the startup capital from the bank.
14. Sustainability and Expansion Strategy
LaCozy Spa World is set to become the number Spa business in the whole of Washington DC, which is why we took our time to craft out business plan that will help us sustain the business , as well as grow the business. Part of the plans we have in place to sustain our business is that we will have efficient machines and equipment.
We will also continue to deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in diversifying our services; expand our products and service offerings once the need arises.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit licenses ( Health department license and business license, Fire department permit, Air and water pollution control permit, and Sign permit et al ): Completed
- Purchase of Insurance for the Business: Completed
- Acquiring facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of Massaging machines and: In Progress
- Purchase of furniture and gadgets (Printers, Telephone, TVs, Sound System, video games, toys, vacuum cleaner, tables and chairs et al): In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – suppliers of all our needed laundry accessories, drinks, and tobacco et al: In Progress
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7 Beauty Business Ideas for 2022
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If you have a passion for helping people look their best and you want to start a business of your own, the beauty industry may be the place for you. Cosmetics businesses alone represent a multibillion-dollar industry, with numbers continuing to increase. This is incredibly promising for beauty-focused entrepreneurs — and what constitutes a beauty business idea can extend far beyond manufacturing and selling products.
You may not be able to compete with industry titans like L’Oreal or Estee Lauder, but the beauty industry’s varied and expanding landscape provides independent entrepreneurs so many opportunities to join the field. You can certainly follow the likes of the Bobbi Browns, Tata Harpers and Laura Merciers before you and create and sell your own, unique beauty or skincare products.
But if chemistry isn’t your thing — or if you’re simply interested in exploring another aspect of the beauty industry — you can also consider becoming a freelance professional, opening a salon or spa, writing about the industry, or even reselling gently used cosmetics. (Yes, reselling is a viable side hustle.)
In this article, we’ll go into greater depth about seven of these accessible, and potentially lucrative, beauty business ideas.
7 promising beauty business ideas to launch
No matter your interest or angle, there’s an opportunity for you to break into the beauty industry this year. Here are just seven beauty business ideas for you to consider.
1. Become a freelance hair and/or makeup artist
If you’re already a practicing hair and/or makeup artist at a studio, transitioning into your own freelance business — either with or without the ambition to hire employees — is one of the simplest ways to become a beauty entrepreneur. As a freelancer, you can work completely independently from a studio space, whether at your clients’ locations or out of your own home, but you can also work with spas and salons on a contract basis, if possible. Consider becoming an on-demand pro at Glamsquad , too, if you’re in a city in which their services are available.
You’ve done a lot of the heavy lifting already, like getting a degree from a state-accredited cosmetology program, receiving a cosmetology license from your state and building a network of clients. Now, the real work is in your marketing efforts. Leveraging your established client base is your best bet, and if you haven’t already, create a professional portfolio of your work. An online portfolio on your business website or your business Instagram or Facebook page is crucial, but it can’t hurt to create a physical portfolio for potential clients to flip through, too.
2. Open a salon
Objectively speaking, opening a salon is the most time- and labor-intensive beauty business idea on this list. We’d recommend this route to stylists with many years of experience in the industry, and who are willing to sacrifice some (or most, or all) of their time as a stylist to become a full-time owner and manager.
But with greater risk comes greater reward. So if you’re a stylist with a serious entrepreneurial streak, and you’re realistic about the process of opening and managing a brick-and-mortar facility, this is a thrilling opportunity to establish a significant foothold in the beauty industry and in your community. If this is of interest to you, read through our step-by-step guide on opening a salon.
3. Resell new or lightly used beauty products
Since you’re a beauty lover, we’re willing to bet you have a drawer (or closet, no judgment) full of products you never ended up using. Perhaps more disappointing than the realization that you can’t pull off that Fenty Beauty blue lipstick is all the cash you sank into trying.
Happily, there are a few platforms out there that let you sell your new or gently used cosmetics and recoup them for PayPal cash or store credit (minus their commission). For instance, Glambot and MUABS are entirely dedicated to buying and selling makeup, but online retailer Poshmark has a hub for reselling cosmetics too.
As you would imagine, each platform has regulations around the types of cosmetics you can sell and their required conditions. These platforms might have restrictions on which brands they accept, too. For instance, Glambot only accepts new or gently used products and tools from premium brands that are not expired, contain at least half of the original product, are free from contaminants and retain the original packaging. It’s possible to resell makeup on eBay, too, as long as you remain in alignment with their strict cosmetics policy .
4. Become a freelance esthetician
Just like going freelance as a hair stylist or makeup artist, if you’re already certified, trained and licensed as an esthetician then you’re primed to strike out on your own. As a freelance esthetician, you can essentially practice at whichever facilities are outfitted with your required equipment, like spas, salons and hotels, as well as work directly with individual clients. Also like hair and makeup artists, freelance facialists can lend their services to film and fashion projects. You can also fold in offerings from other related fields in which you’re skilled, like hair, makeup or brows. Have a portfolio at the ready to prove your skills.
5. Become a brow, nail or lash technician
Thanks in large part to Instagram’s seismic sway over beauty trends, where brows, nails and lash care were once considered incidental services, consumers now give all three just as much consideration (and money) as they do hair and makeup.
And as you probably know, brow, nail and lash services are truly comprehensive. As a brow technician, for instance, you can offer tinting, waxing, threading, tweezing and microblading, while lash experts can extend, lift, tint and perm their clients’ lashes. And nail art is so popular that the field now has influencers of its own.
You’ll learn the basics of brow, nail and lash art during your cosmetology training, but as a professional, you can choose to focus particularly on any one of these specializations. You can choose to go freelance here too, or you can open your own spa or salon that specializes in one of these services. In either case, you’ll need to find out about state licensing and regulation requirements to remain aboveboard.
6. Start a beauty blog
You probably have a lot to say about beauty, whether that’s product recommendations, reviews, news, sales announcements or opinions on beauty trends ( floating eyeliner , anyone?). If you like to share those thoughts in writing, it makes sense to carve out a digital space within the industry by starting a beauty blog. Creating a blog is so simple, and maintaining that blog requires virtually no overhead other than the cost of your products, which you would honestly be buying anyway.
You won’t necessarily make money off your blog unless you intentionally monetize it through display ads, affiliate marketing and other money-making tactics . And to see any dividends, you’ll need to be diligent about regularly posting original content across all your social media platforms. But if you seriously commit to it, it’s entirely possible to become a full-time beauty blogger. There’s a whole industry of them out there — and if you’re patient, hardworking, and have something interesting to add to the conversation, there’s no reason why you can’t join them.
7. Sell your homemade beauty or skin care products
Although consumers develop loyalties to their favorite cosmetics brands, there’s still a niche in the market for homemade, small-batch, under-the-radar beauty and skincare products. And because of the increasing popularity of “clean” products, there’s arguably even more of a demand for homemade products with simple, pronounceable ingredients.
As you’re nailing down your formulas with an eye toward selling, make sure you’re complying with the FDA’s cosmetics regulations . Don’t overlook the importance of branding, too, which can make or break a sale. Spend the time to map out your overall brand strategy, and consider hiring a graphic designer to design your packaging materials.
From there, you can sell your goods both online and in person. For the former, we recommend creating a stand-alone online store on Shopify, or taking advantage of the ecommerce functionality on a business website platform like Squarespace or Wix. For the latter, take your goods to local crafts fairs, farmers markets and trunk shows, and ask local retailers about selling your products on a trial basis.
Determining which beauty business idea you want to launch is only the first step in officially becoming a beauty business owner. As with any other business endeavor, you’ll have a lot of work to do beyond this step.
The particularities of starting your beauty business will vary depending on the type of business you’re launching. If you’re side-hustling as a product reseller, for instance, you probably don’t need to register your business entity with the state, and you certainly don’t need to worry about hiring employees. If you’re becoming an esthetician or other industry professional, you need to obtain the proper permits, licenses and certifications. And opening a brick-and-mortar facility, like a spa or salon, comes with its own extensive to-do list.
What’s non-negotiable, however, is having some kind of digital footprint. Online and social media marketing is just one aspect of a holistic small business marketing strategy. But along with good old word-of-mouth marketing and networking, it’s arguably the most important, especially at the start of your venture. Start by building a business website and setting up dedicated social media accounts on the platforms of your choice. These platforms will perform double duty as your portfolio, which you’ll need to become a freelance artist or technician. Instagram and a Facebook business page are must-haves, but depending on your preferences and audience, you can also hop on Twitter, Pinterest and/or YouTube . (You’re probably well aware of the massive effect that beauty YouTubers have had on the industry.)
But we don’t want to minimize the importance of choosing a beauty business idea and sticking to it. Committing to a business idea and seeing it through is what separates would-be entrepreneurs from bonafide business owners. So take a minute to applaud yourself for embarking on your entrepreneurial journey, and then get to work.
Small Business Trends
How to create a salon business plan.
This is a great time to be in the salon business. With the world starting to slowly open up, demand for salon services is picking up again. But it’s also a highly competitive business. Whether you are in the beauty salon or hair salon business, to succeed you need a solid business plan that can help you address customer demands and achieve a competitive edge.
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What is a Salon Business Plan?
A strategic document, the business plan is structured in different parts that include a cover page, executive summary, a mission statement and more.
Why Do I Need a Salon Business Plan?
Getting started.
Before you put your ideas into an actionable document, you need to pause and consider a few things. First, you need to ask yourself why you’re getting into the business. What do you bring to the table? Do you have the passion and the expertise to drive a successful salon business?
Writing a Salon Business Plan
Table of contents.
A table of contents prepares the reader for what’s to come in the business plan. It’s a great way to draw interest and follow a structure for the document.
Executive Summary
Mission statement.
For all the important information the Mission Statement conveys, it needs to be short and simple enough to be understood. Let’s take an example. Here’s how Starbucks defines its mission statement: “To inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.”
Describe Your Salon
When was the company founded? What led to its inception? These are some questions you should try and answer in the Company History and Brand Story section. When describing your Brand Story, try to make it personal. Was there a gap in the market you experienced first hand that led you to start your own salon? Do you see industry trends gaining traction in another city or country that you felt could be the next big thing in your area?
Services and Product Lines
Hair salon services, beauty salon services, what problem does the salon solve.
As a salon business owner, providing great service to customers at all times is your key business priority. But it cannot be the only goal to differentiate your business. By finding a problem that your salon can solve for your clientele, you can build a truly customer-centric business.
How Does Your Salon Provide a Solution to the Problem?
The salon business.
If you have a salon business that includes both hair and beauty, it’s important to include that information in your business plan. Describe how you manage and operate the two businesses and how they come together to form a business as a whole.
The Hair Salon Business
The beauty salon business, business organization and management model.
The business organization and management model should include the number of employees, their roles, salon partnerships and management structure. It should be transparent in explaining how each employee, partner and vendor play a part in providing customer service and retaining clients for the salon.
Hair Salon Organization Example
Beauty salon organization example, multiple income stream revenue model.
The COVID-19 pandemic has been especially hard on service-based businesses such as salons. Many salon owners suffered huge losses leading to an eventual shutdown of their business. The crisis has highlighted the need for multiple income sources to stay afloat. That’s why many salon owners are adding multiple income streams to their business.
Hair Salon Income Streams
Beauty salon income streams.
Lets now look at some income streams for your beauty salon business.
Funding for Hair and Beauty Salons
Target market and customer analysis.
The next step is to understand the market dynamics that will impact your business. Here, you need to do your research well. For example, what are the local area laws and regulations that you must comply with while running your beauty salon? Are there any special permits that you must procure before you open the shop? A comprehensive market analysis will help you find answers and avoid hassles later.
Competition Analysis
Marketing analysis and activities plan.
The products you offer and the prices of your services are important elements of your marketing analysis. You could have the most exciting products that still won’t sell because their prices are exponentially higher than what your competitors offer. Or you could be selling products that customers don’t want to buy. Your marketing plan will help you find the sweet spot where your products and price points make the most sense for your business — and your customers.
Major Targets, Expectations and Milestones to Achieve
If you have additional documents to share more information about your products, services or marketing plan, you may choose to include an appendix. This is an optional section that you may also choose to skip if you feel you have covered everything in the salon business plan.
Tips for Creating a Salon Business Plan
Don’t delay, keep the plan up to date, make sure your business plan is focused.
You may have ten brilliant ideas to take your business to the next level, but it’s easy to get distracted. Make sure your salon business plan is focused so you know where your priorities lie.
What is the difference between a hair salon and a beauty salon?
How do i start a salon business plan, how much does it cost to start a salon business.
While the costs differ based on location, you should set aside approximately $65,000 to start your salon business. This will cover key expenses such as licenses ($500-$12,000), legal fees ($1,00-$5,000) and equipment ($5,000-$30,000). With a comprehensive business plan, you’ll be able to figure out how much each component will cost you.
How much does it cost to run a salon monthly?
Is owning a salon profitable, what is the best business structure for a hair salon.
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How To Write the Perfect Salon Business Plan for Your Salon in Just 7 Simple Steps
The US salon industry includes more than 80,000 establishments with a combined annual revenue of about $532 billion. So opening a salon, and owning a salon business is a pretty safe bet; it’s steady and profitable . But lack of proper planning makes it difficult to juggle all the aspects of your business, starting from marketing and sales, to accounting, and whatnot.
Here’s a quick tip! Searched all over the internet for concrete information on how to open your own salon? Confused? Don’t worry, we’ve got you covered! Check out this blog on opening your own salon business that gives you a comprehensive 10 step guide to help you get started now.
Writing a properly structured salon business plan is crucial to guarantee your salon’s success in this highly competitive market. Whether you’re wanting to secure a business loan for your salon or trying to expand or reinvent your salon business, a business plan for your salon will help you get there.
So how exactly would a business plan help you?
- A business plan will help you to figure out what you want your salon to offer, where you aim to take your salon’s growth, what kind of people you want to cater to, and who you’re competing against .
- If you are looking for investment from private investors, banks, or any other lending institutions or public grants, structuring a business plan is crucial.
- A business plan will help boost your salon business’s productivity through improved oversight and direction, and help you make informed decisions.
- As your salon business starts to grow and gain clientele, a well-developed business plan can help you acquire the capital needed to expand to new locations.
How to make the perfect business plan for your salon business?
Whipping up a perfect business plan can be pretty daunting because it needs to be immaculate. No worries! Here we’ve broken down the entire process into 7 easy-to-follow , foolproof steps, along with their templates, to help you create a successful salon business plan.
- Write a mission and vision statement
- Create an executive summary
- Analyze and identify your target market
- Perform a competitor analysis
- Write your salon’s business description
- Make strategies for advertising and outreach marketing
- Figure out your financial plan
Whether it’s a hairdressing salon business plan, a general beauty salon business plan, or even a small salon business plan for opening a salon on your own from scratch, we’ve got you covered. This is a complete, comprehensive guide to help you in the process of making a business plan for a salon. It’ll give you a basic understanding of how to write a salon business plan in the easiest possible way.
1. Write a mission and vision statement
I) mission statement .
It articulates the immediate purpose of your salon business. Under this, you can state all the short-term goals that you plan on achieving with your salon within 6 months , stretching up to a year.
Here’s how you can nail a perfect mission statement
- Value – What is the value of your salon in the market? How can it help your clients?
- Inspiration – Why should people want to come to your salon?
- Remember to make your mission statement sound plausible and reasonable . Also, make it specific and concise – clarify all your short-term goals and the timeframe within which you’re planning on achieving them.
ii) Vision statement
Now, where do you aim to take the salon’s growth in the next 5 years ? Well, if you’re dreaming, dream big! And you can be as ambitious as you want, the sky’s the limit.
Setting strategies for a longer-term makes sure that you don’t stumble on the road to success. It makes the overall structure of your business stronger. It prepares you for anything that the fickle market demands from you and throws at you.
Here’s how you can write a perfect vision statement :
- Review your long-term goals in a way that you can analyze how achieving your long-term goals could impact your business and the salon industry in general.
- Derive how your clients could benefit from the visions that you would be implementing.
- Your business’ end goals can drive your vision statement, For instance, if you’re planning to branch out to different locations after, say, 5 years, you can frame your vision statement in a way that states to make your salon a household name, popular in the neighboring areas and so on.
2. Create an executive summary
After you write the mission and vision statements, you can summarize everything that you’re aiming to achieve with your salon under an Executive Summary. Whether you’re writing a business plan for a hair salon or a business plan for a beauty salon, you should be properly aware of what your intentions are with the salon. This section is the most important part of your business plan as it dictates the tone of your salon, and makes an impression.
Remember to keep this section very brief and concise to give an overview, as you’ll be elaborating on these points in the later sections of your business plan.
If you’re having trouble writing your salon’s executive summary, you can always write it after you’re done with all the other sections in the business plan . This will give you a better understanding of your salon business and help you succinctly put your points together to describe it.
What can you do to write the most fitting executive summary for your salon?
- Start by stating all the short-term goals that you plan on achieving within, say, 6 months or a year. Remember to keep your goals realistic and feasible.
- Summarize your approach towards your business, to give an overview of how you will run things in your business.
- Clearly and briefly express the value proposition of your salon, and how it would potentially position your business in your target market.
How to write your salon’s executive summary: A simple template
Divide your business summary into sections of opportunities and expectations, and put brief points in those subsections in the most convincing way. The following template can help you with this :
- How are you trying to achieve recognition in your target market?
- What is your salon’s tagline/motto?
- What is your salon’s growth plan for the first 6 months after its launch?
- Which demographic is your salon meant for?
- How are your services aligned with your target market?
- How many salons are there in the area of establishment of your salon?
- What products and services do they offer?
- What is the range of variation of their clientele?
- What products and services is your salon offering?
- What is the unique selling point of your business? For eg: If your salon is the only one in the area that offers holistic services with spiritual healing, then put it down as your differentiating point.
- How are you different from your competitors? For eg: Is it the lower cost of services of your salon, or the vast range of services that make your salon stand out?
Make sure you catch the eye of potential investors in the above section. Don’t forget to state how you can attract potential customers.
- What is the salon costing you? List down the projected expenses and costs that come from daily operations, rent, staff hiring, cosmetics, appliance expenditures, etc. for the first 6 months.
- What is the cash flow and how much profits are you bringing in for the initial 6 months? This is completely variable and the reaction of your target market to your salon decides this. So aligning your services with them is of utmost importance.
- Why does your salon need financing? For eg: you can convey that you’re trying to meet the anticipated growth of your salon in the market.
3. Analyze and identify your target market
Analyzing and defining a target market for your salon is very important as it goes hand in hand with your salon’s growth and outreach .
A beauty salon can service all genders and age groups. Your target audience can include working professionals, college students and teenagers, homemakers, to-be-Brides, and even children. And each group will require different types of services. So make sure you list down each individual section of your target market and what services they would require.
Here’s a checklist to make sure you’re going the right way about it.
Steps to analyze and identify your target market
- Find out what kind of people you think would resonate with your salon’s services the most. For example, if your salon offers low commitment (temporary) coloring services, you can get a lot of customer traffic from the millennials.
- As an extension to that, find out if your services are more inclined to serve a particular demographic better, or if you’re good with people of every demographic.
- Keep up with the trends in the salon industry to know what’s hot and what’s passé.
- Peek inside the brains of your target clients to know exactly what they want or like and tune your salon accordingly.
An easy-to-follow template to proceed with your target market analysis
- Segregate the people in the market pool into different categories.
Do not forget these bases:
- Personal income/occupation
- List out the services that your salon would offer that would fit one or more of the stated categories above.
For eg: If your salon offers Diamond Facial at $200.00, then you can list this service out as follows :
- Use social media to get an understanding of the trends in the market at present. Join salon and beauty communities on Twitter, Facebook, and Reddit, and follow beauty bloggers on Youtube and Instagram.
- Look up the people who subscribe to or follow these beauty pages and beauty bloggers to identify which trends appeal to a certain demographic. You can tell a lot about your target market’s behavior from the posts they like and the thoughts they share in the comment section of these posts and videos.
4. Perform a competitor analysis
With a great market demand, several strong competitors emerge. And we don’t want your salon to get lost in the sea of other salons now, do we? As it goes, keep your clients close but your competitors closer.
Figuring your competitors out gives you a necessary nudge in the right direction to take your business plan forward. It gives you an idea of what the other salons are practicing with their clients, and what gaps they’re leaving that you can fill up as you step into the salon business yourself.
How do you analyze your competition?
- Find out what the other salons in the area are doing successfully or poorly.
- Get a rough idea of the cost of services that the competitor salons are offering. This helps you price the services for your salon.
- Identify how many salons provide services that focus on a specific niche and do not serve a wide group of customers.
- Find out the industry-specific challenges they are facing that you may also face while running your own salon.
- Analyze what they can do differently to improve their situation, and implement it in your business mission plan to avoid facing such challenges yourself.
- Have your salon address these deficiencies in the market.
Follow these easy steps to perform your salon’s competitor analysis
- Visit your competitor salons’ websites.
- Follow them on social media platforms (Facebook, Instagram, Linkedin) to get an idea of how much influence and reach they have. Check out who follows their social media page to get an idea of the target market as well.
- Sign up for any interactive sessions that these salons might conduct and check how other people respond to these sessions, to understand their grip and dominance on the market.
- Visit the other salons in the market as customers, to get an idea of their quality of services.
5. Write your salon’s business description
So now that you have your market and your competitors figured out, it’s time to work on your salon business . A beauty salon or a hair salon is fine, but what kind of salon do you want yours to be like? Setting a proper description for your business gives your salon a custom style and personality.
Your business description should include an overview of the products and services that your salon would offer, and how your salon would stand out in the market. Setting a trademark vibe to your salon also helps with its brand image.
To get started, you can answer the following questions :
- Would you specialize in any particular service like nail art or bridal makeup?
- Would you want your services segmented for various types of clients?
- What services would you want to offer in packages?
- Would you serve complimentary refreshments to the clients?
- What theme are you going for with respect to interiors and ambiance (Japanese zen, tropical beach day, etc, etc)?
- What would be your salon’s “it” factor that distinguishes it from the other salons in the area?
Once you’re done with the salon’s description and personality, set a brand logo and a tagline to go with it. To get a professionally designed custom logo, you can always reach out to freelancers or companies that can do it for you, like 99designs .
You can also use an online designing software like Canva to design your salon’s logo on your own.
And that should complete the branding.
Creating a business brand will prepare you to answer someone asking you “Why should I come to your Salon?”
Remember to make your salon stand out, noticeable, and interesting.
6. Make strategies for advertising and outreach marketing
Now you have to position your salon in the market in a way that makes people take an avid interest in “the new salon”. Your target audience will guide you towards the perfect approach to spread the word around about your salon.
A simple guide to writing the marketing plan for your salon business :
- Your salon should be Google-able. To show up in digital searches, make sure your business is listed in online directories.
- Create a website or a mobile application for a better customer experience.
- It’s always better to spread out to all social media platforms to promote your business so that your customers (and other potential clients) can get to know you on a more personal level. Connect with your business community by following other small businesses in the area. Actively engage with your target market and share behind-the-scenes content (like before and after photos of clients’ haircuts) to build your credibility and cultivate brand awareness.
- Partner up with other businesses that may share the same clientele as a salon would (like spa retreats) to offer coupons and vouchers, for outreach marketing.
- Offer “first-service” discounts to your customers.
- Keep service rates lower than the other salons in the area to attract clients.
- Once the rapport is established, and your clients trust you with the service quality, you can cut out the discounts. It is also very important that you optimize the discounts in a way that you don’t run into a complete loss, but we’ll get to that in a minute.
- It is crucial to maintain the service quality to the highest degree after you start getting clients. Remember that your clients wear the marketing after they come out of your salon. This will definitely help you secure referrals from existing clients.
Marketing Tip! Want to pull off a great marketing campaign for your salon business but don’t know where to start? Do you feel like the marketing section in your business plan is incomplete? For more detailed marketing ideas for your salon, check out our blog on 7 hand-picked salon marketing ideas to boost your business .
7. Figure out your financial plan
It’s time to play the number game. This is probably the trickiest part of writing a salon business plan because you have to be extremely careful while juggling your revenue and expenditure budget optimally.
You don’t want to scare or throw off your customers by charging exorbitant prices for the services, but at the same time, you don’t want to crash and drown in debt yourself. Not to forget, cutting costs on cosmetics may affect the service quality. Cut hair, not costs!
Ergo, you need to have a proper financial plan for your salon.
Writing a detailed financial plan will help you get a rough idea of how your salon would be progressing on a monthly/ yearly basis. Moreover, if you’re applying for a loan, your financial plan will determine your eligibility .
What can you do to create a solid financial plan for your salon?
- It helps to bifurcate all the expenses into Fixed costs, and Variable costs. Then you can analyze your fixed costs and variable costs to set an optimal budget.
Fixed Costs: This section includes all the costs associated with your salon business that must be paid regardless of the customer traffic in your salon.
- Rent or mortgage for the salon space.
- Payroll for the employees you hire.
- Equipment maintenance costs for hair spa and other services that are heavily equipment dependent.
Variable Costs : This section includes all the costs in your salon business that are directly associated with the customer traffic in your salon.
- Expenses of purchasing cosmetics and other salon supplies.
- Electricity consumption by salon equipment. For eg: If you’re writing a hair salon business plan, make sure you include the electricity consumption by blow dryers, hair straighteners.
- Have a clear idea of how much discount you plan on putting on your services during the first few months of opening your salon, and for what duration you will be offering these discounts. Note that during the first few months of opening your salon, your sales are likely to be lower than your projections, and that’s completely okay.
- Make a list of pros and cons for renting out space for your salon versus buying a place.
- If you’re renting and wish to own the salon space, spot out a tentative date of when you’ll become capable of buying the place.
- Figure out how many people you are going to hire in your staff, and how much salary you would be able to offer them. Note that you’ll have to improvise this according to how the customers respond to your salon.
- Reach out to your local chamber of commerce to get more insights on funding and loans.
- Tentatively figure out the time it will take you to break even, and start earning chunky profits.
Here’s an easy-to-follow template to proceed with your ‘financial plan’ section
The following simple template can help you make the financial plan for your salon:
i) Sales and revenue projections for the first five years :
Figure out how much you’ll charge for your services, and estimate how many services you may perform in a week. A periodic analysis of this over the next five years will give you the necessary projections. Put the details down in a spreadsheet to keep it organized. It also helps to collate all this information and analyze using bar graphs.
ii) Expenses’ budget :
Break down the expenditure of your salon for a given term, by referring to the “fixed and variable costs” list that you made. You can pick the term to be a month, a quarter, or a year long .
It’s a safer practice to stick to a month-long or a quarter-long term. You don’t want the budget analysis task to loom over you and become a burden. Not to forget, it keeps you in touch with the financial status of your salon business.
iii) Estimated profit margins:
Accumulate the sales projections and budget report analysis to find out the profit for that term. Display the margins in pie charts or bar graphs for easy comprehension.
iv) Liabilities:
Note all the losses that your salon business can possibly incur in the time period that you have defined as a term. For example, your blow dryers may stop functioning and need to be replaced.
Also include the factors that may stunt your business from growing. For example, you may be short on staff, or your nail salon is lacking an appointment scheduling and business management tool.
v) Cash flow statement:
Make a projected plan of cash flow-in and flow-out for your defined term, where you include cash flow from sources that are not directly related to your salon services or your salon business-related expenses.
Include the cash flow from loans, loan payments, taxes, and personal funds that you used for your salon.
vi) Break-even analysis:
Predict the break-even point for the first five years of your business. Break-even is achieved when your salon business has covered all the expenses, and your sales surpass the expenditure costs. From that point on, your salon will start earning profits.
Other ways to create your financial plan :
Dealing with numbers can be tedious and scary, especially when you already have a lot of other things on your mind as a salon business owner. Moreover, documenting the financial projections yourself can be a pretty daunting task, especially because there’s no room for mistakes.
Instead of making the document yourself, you can choose to consult professionals to help you write the perfect financial plan for your salon.
- Hire freelancers : You can collaborate with business plan consultants to make your financial plan. All you need to do is give them your salon’s budgetary estimates and inputs.
- Use Financial planning tools : It asks you to enter all your financial information. They use built-in formulas to give you the most accurate financial statements that include all the charts and projections that an investor would expect to see in a business plan.
Some important things to keep in mind :
- Keep reviewing the target market, competitor analysis, and marketing and advertising strategies once every while, however frequently necessary.
- Set realistic long-term goals that would be in sync with your current business performance. For example, you can think about branching out to two different locations after a few years. This will allow you to expand your local salon to an enterprise salon.
Go ahead with the pretty business plan
Executing a well-structured salon business should reap good-looking numbers. And the first step towards that is making a killer business plan for your salon.
It gives you the courage to place your faith in your business, and we don’t want you to doubt something you’re passionate about. Remember that you can convince the people in the market about all the great things your salon has to offer, only when you truly believe it yourself.
So go on ahead, start creating your salon business plan today, and give your dreams a much-needed flight. Good luck :))
About Appointy We at Appointy, help business owners grow and run their businesses with our online scheduling software. This blog was a part of our ‘Manage your Business’ category, where we provide expert tips, and resources, or simply talk about the challenges that small and medium businesses face every day. If you have any thoughts on this blog or would like to chat about your business struggles and achievements, let us know in the comments below. We love a good talk!
15 comments
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Thanks! Please subscribe to https://blog.appointy.com/ for more such information.
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Very nice content about salon buisiness,Its very informative.
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10 Things to Do Before Opening a Salon
If you're thinking about opening a salon, these 10 tips will be critical in helping you develop an effective, successful business plan.
- A hair salon can be a steady, profitable business, but before you open one, you need a strong business plan and preparation.
- Finding a niche for your salon helps you attract a loyal client base.
- The most important things a salon needs to succeed are a good culture, knowledgeable employees and an understanding of what its services are worth.
When it comes to owning a business, a hair salon is a pretty safe bet – the beauty industry is valued at $532 billion per year. Beauty is also a steady business, often remaining unaffected during economic recessions.
But even if you have the styling skills, launching your own business can be a challenging process that requires patience and know-how. The cost of opening your own salon is around $62,000 for a basic setup, but it can go up to $500,000 or even more. No matter how much you invest in your new business, you’ll want to do everything you can to ensure your salon’s success.
The cost of opening a salon
Before mapping out your finances and securing funding, you’ll want to consider what, exactly, you need funding for. Here are some common salon setup costs for aspiring owners:
- Licenses and permits: To open a salon, you’ll need a business license and any permits required in your area. If you plan on selling products, you’ll also need a seller’s permit.
- Real estate: You’ll have to find a place to either rent or buy. If you choose to pay a monthly lease, you’ll likely have to provide a security deposit upfront.
- Payroll: This involves salaries or wages for the employees you hire, and all the associated benefits you choose to offer.
- Salon equipment: A salon requires a ton of equipment, like beauty supplies, sinks, chairs and hair dryers. You may also need a POS system , computer, business phone system and more.
- Inventory: If you plan to sell cosmetics or other products, you’ll want to stock up on your inventory before opening.
- Insurance: To legally cover your business, you’ll want to set aside money for a decent insurance plan.
These are just some of the many costs of opening a salon. Keep a checklist of possible salon expenses so you know what to account for when acquiring funding.
Financing for a salon
Salons are often seen as high-risk businesses, and many banks are hesitant to invest. However, there are many alternatives to traditional loans. Here are some popular financing options for salons.
With low rates and fast payback periods, SBA loans are perfect for small startups. However, these loans are relatively competitive, so you’ll need a strong credit score to qualify. Also, if you need immediate funding, you’ll want to look elsewhere.
Microloans are much easier to attain than traditional SBA loans, because you don’t need an expansive credit history or time in business. SBA microloans can be up to $50,000. Just make sure you have a solid business plan in place before trying to secure your loan.
Alternative lenders
Alternative lenders tend to be much more accessible (and immediate) than other sources of capital. If you need quick money, you might consider a term loan, asset-based loan, credit card or business line of credit.
Equipment financing
You need a decent amount of equipment to run a salon, like chairs, sinks and hair dryers. When you’re starting out, it can be difficult to afford all these purchases. With equipment financing, you’ll receive a loan to front these payments, so you can start off on the right foot without breaking the bank.
Rather than buying all-new equipment, consider leasing it to reduce the upfront cost. Some lenders also offer equipment financing, which uses the equipment as collateral; you would then make regular payments until the value of the equipment is repaid with interest.
How to develop a salon marketing plan
Marketing is an essential process for every business, but certain tactics work better for some businesses than others. When opening a local salon, you’ll want to focus on becoming a part of your community. Since you’re a brick-and-mortar business (i.e., you operate out of a physical location), building your local following is crucial for you to attract and retain loyal clients.
Salon marketing requires technique and consistency. Here are some tips for marketing your salon:
- List yourself in online directories. To show up in digital searches, you’ll have to make sure your business is listed in online directories.
- Manage online reviews. Consumers tend to trust online ratings and reviews to vet local businesses. It’s important to address every review you receive – especially the bad ones.
- Partner with local small businesses. Partnering with another business in your community will help you broaden your reach and build a reputation for your brand in the area. Host events or coordinate deals with your partner businesses to offer your customers an exclusive experience.
- Offer referral discounts. If an existing customer recruits another client to your salon, you should reward the recruiter with some sort of discount. This will encourage people to spread the word about your business.
- Create loyalty incentives. Loyal customers deserve special treatment. To show your clients you appreciate them, create incentives like discounts, punch cards and special promotions.
- Utilize social media. Your social media is a place for customers to get to know you on a more personal level. Connect with your community by following other small businesses in the area, engaging with your target market and sharing behind-the-scenes content (like before and after photos of clients’ haircuts) to build your credibility and cultivate brand awareness.
Opening a salon
Check out these 10 expert tips to start off your salon on the right foot.
1. Create a salon business plan.
Writing a business plan should be your first step when starting any business. It provides you with a clear objective, outlines how you will achieve that objective, and gives you a good idea of what you need to do to be successful. [Read related article: Guide to Creating a Business Plan With Template ]
“A business plan is key to starting a salon,” said Ali Ryan, owner of The Dry House . “The plan offers a road map for salon owners to follow and helps entrepreneurs consider all areas of the business. A business plan makes sure you set up a metric for success and consider the financials before you invest huge amounts of time and money in a new salon.”
Make sure you have a good understanding of the existing salon market in your area, including how large it is, if it is growing and the trends. This will help you to plan exactly how you will compete against other salons.
You should also have a strong idea of your target audience, said Michelle Lee, co-owner and master designer of Salon Eva Michelle . “Think about what kind of salon you want to open [and] what culture you want.”
2. Research your local laws and regulations.
Laws and regulations vary by where you live and what type of salon you are opening. For example, a salon that strictly provides hair services will require different licenses from a salon that also offers facials or massages.
“Do your research,” said Shanell Jett, owner and stylist at Jettset Mobile Studio . “Ensure that you are complying with the state laws and regulations. If you have to make some adjustments to your plan because of regulations and laws, do so early so that you can avoid potentially having to stop your operation later or [having to pay] a fine.”
These are some of the common licenses, regulations and permits required for salons:
- Salon license
- Cosmetology license(s)
- Employer Identification Number (EIN)
- Building permit
- OSHA requirements
3. Find a way to make your salon stand out.
“With salons on every corner, even in small towns, entering into the market with a specialty or service niche can dramatically increase buzz and press about your opening,” said Pamela Jeschonek, owner of Everyday Esthetics Eyebrow Studio .
Think about what makes your salon unique. Is it the services you offer? Your attentive staff? Your customized experiences? Whatever it may be, try to make it a focal point of your identity and grow your business from there. In other words, find your niche. Growing your business in a niche market is much easier than trying to succeed in a large, general market.
A niche market gives you more security against failure and a chance to find out what works well (and what doesn’t) for your business by allowing you to interact more closely with your customers.
“Even if you do offer many services, promoting a niche or specialty service not only will help you attract a very loyal client base, but will instantly lend credibility to your salon as the experts in your niche space,” said Jeschonek.
4. Talk to distributors.
To obtain products for your salon – such as chairs, mirrors, washing and drying stations, shampoo, conditioner, pins, and brushes – you will need to contact a distributor. You can find local, wholesale or national distributors with local agents.
For larger items, like chairs and dryers, you will need to work with a large wholesale distributor like Belvedere Maletti or Takara Belmont . You can purchase smaller items from a local distributor or directly from a manufacturer, like Paul Mitchell or Estée Lauder.
When you begin your distributor search, remember to shop carefully and consider every prospect. Look at price points and the customer support (like advice or consulting) different distributors offer, and ask if they offer any deals or perks.
5. Develop a solid client base.
As a salon owner, you should place your clients and their experience at the top of your priority list. This will create return customers who, over time, will form a reliable customer base.
“My No. 1 tip for aspiring entrepreneurs before they open up a salon is to have a number of professional clients of your own that will cover your overhead,” said speaker and entrepreneur Sandra LaMorgese . “With a solid client base of your own, you’ll be in a better position to call the shots.”
6. Choose the right location to open your salon.
Whether you buy a building or rent a retail space, your location is one of the biggest expenses of opening a salon, and there are many factors to consider when making this decision. It should be in a well-populated area and easily accessible by car or public transportation. Also make sure you are far enough away from competitors that offer the same services as your salon.
“Secure a solid location with plenty of parking,” said Jim Salmon, vice president of business services at Navy Federal Credit Union . “If you make it convenient for clients to visit your salon, you’ll have more customers, which in turn means more revenue to pay off your initial loan and to put toward growth expenses.”
7. Hire a designer.
If you have the financial means, hiring a designer to help you create your salon can reduce stress and ensure an appealing, functional workspace. A designer can help you determine an overall look and feel that is consistent with the image you want to project.
“Work[ing] with a designer or space planner [can] ensure you are maximizing your revenue potential for the space,” said Miriam Deckert, marketing director at SalonSmart . “If construction work is needed, try to negotiate those costs in your lease agreement.”
Deckert recommends taking advantage of space in the center of the salon with double-sided stations or couches for waiting guests. You should know the dimensions of each area before you shop for equipment or furniture.
8. Focus on your staff.
Your salon is only as good as the people you employ to help run it. Because beauty is such a personal industry, it is vital to retain a skilled, knowledgeable and friendly staff.
“I would advise any new salons to invest time in the training and motivation of the staff,” said Jennifer Quinn, digital marketing executive at Phorest Salon Software . “Your salon will be built around your stylists and technicians, [so] ensuring they are comfortable with upselling products and other treatments across the brand is the difference between success and failure.”
Taking the time to train your employees thoroughly will help your business run more smoothly and maintain a professional reputation.
“Being passionate about your staff’s growth is important,” said Lee. “Be a leader, not a boss .”
9. Think about your clients.
“Create a vision for how you want clients to feel, what you want them to experience and what adjectives clients will use when describing their experience,” said Samira Far, founder of Bellacures . “This will help in developing a look, feel and atmosphere.”
As you start out, gather feedback from your clients about what they like and don’t like about your salon. Outline in your business plan how you intend to meet clients’ needs and wants as much as possible and show your customers that you value and act on their input.
10. Charge what you’re worth.
It can be difficult to decide how much to charge for your services, particularly when you are just starting out with your own business. After you do some research and get a ballpark idea of what someone with your level of training could charge, you should carefully consider your own skills and training and determine a price based on that – not what others in your area are charging.
“You don’t know anything about them or their skill set,” said Sheryl Miller, owner of Fringe Hair Art. “I charged $60 a haircut when I first opened in a town where the most expensive haircut was $38. I had 25 years of training and education to get here. Some people thought I was crazy and wouldn’t get it. Not only did I get it, [but] I have since raised [prices] to $70 and keep billing. If you are great at what you do, people will pay for it.”
Kiely Kuligowski and Brittney Morgan contributed to the reporting and writing in this article. Source interviews were conducted for a previous version of this article.
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Hair Salon Business Plan Sample
AUG.14, 2013
Hair Salon business plan for starting your own business
A hair salon is a business that never goes into loss. As long as the people are living on earth, they will need to go to hair salons and get their hair done. If you plan to start your own hair salon business, you need a business plan hair salon. The first and crucial thing is to get an idea of how the business work and what do you need to start it. You need to set up a hair salon business consultants that provides all services, and high customer satisfaction by providing excellent services.
To start a hair salon that provides an amazing atmosphere at an affordable price-value relationship, you need a business consultant service . If you do not know how to write a hair salon business plan, we have provided a detailed business plan to start a hair salon so that you can avoid any inconvenience in making a plan for yourself. You will find many samples of a business plan for a hair salon, but you need to choose the one that suits you the best.
Also, if you’re looking for a business plan for a barber shop , a business plan for hair extensions shop , a hair removal business plan , an airbrush tanning business plan , salon and spa business plan , or even a center reiki business plan , this template can help you!
Executive Summary
2.1 the business.
The Cute Cut Hair Salon will be registered in New York, USA. The business will offer the services that will enhance our customers’ appearance and their mental relaxation. Instead of competing with other hair salons in town, we mainly focus on providing services to the customers who cannot afford those luxury salons.
2.2 Management of Hair salon
Cute Cut Hair Salon will be managed by Mike himself. To assist him, we will have three managers who will be trained for a month and a half before starting their jobs. In starting hair salon business plan, Mike will work with a small team comprising of a few hairstylists, managers, accountants, helpers and a guard. He will ensure the quality of work regularly.
2.3 Customers of Hair Salon
Customers are the backbone of every business. If you know the right audience for your business, you will be able to achieve your target. You will get the idea of how to run your business if you understand your customers. The main customers for the hair salon business consultants will be the following:
- Women and men who are looking for hair treatments.
- Children of age 15 and above.
Our best business plan for a hair salon includes all the hair removal treatments we mainly offer to women.
2.4 Business Target
In our business plan for hair salon pdf, we have mentioned our main goal. Our main goal is to provide high-quality services to our customers by using safe and good quality products. Our primary target is to become the popular and most loved hair salon by people within the next 3 years of our launch. We aim to recover the investment within the next two years. Our secondary target is to increase the net profit every month.
Company Summary
3.1 company owner.
The owner of the Cute Cut Hair Salon will be Mike James. Mike had a dream of starting his own business since he was a teenager. He wanted to set up a business that helps people of all ages.
3.2 Why the Hair Salon is being started?
When Mike was asked why he is interested in starting a hair salon business plan, he said he wanted to help people who cannot afford expensive hair treatments. Moreover, his idea of setting up a hair salon business plan is based on the fact that this kind of business never goes into loss. He believes that his business can attract more customers because his salon uses all the new techniques and equipment. With constant hard work, he can now start his hair salon and fulfil his dream.
3.3 How the Hair Salon will be started?
To start a hair salon business plan, you need the right techniques and ideas. Before starting a hair salon, you need to consider these essential steps:
Know About Industry Experience
Before entering into the world of entrepreneurship, gain some experience in the relevant industry. For example, before starting your salon, it is preferred to work in some salons. If you get your feet wet by working in other salons, you will get enough experience of how things work.
It will allow you to see how the business work daily.
Create A Business Plan
A business plan helps in planning everything for a business. It will tell you how you will earn money, what type of customers your business is trying to attract, how are you going to manage the expenses and finances, and other daily operations.
The business plan will also help you to make important decisions that will affect your business.
Set Your Budget
To get an idea of the kind of salon you want to start, you will have to set up your budget first. First, get set with your expenses and finances as hair salons expenses can vary. They depend on the location and size of your business. For example, if you are setting up a salon in your home, you will have to bear fewer expenses. But if you want to start a hair salon in a commercial area, you may end up spending thousands.
Target Customers
Determining your target customer is a vital step in starting a business. Many business decisions depend on the type of clients you want to attract. Before finalizing anything, research the area you are planning to open a salon. If that area has plenty of people who want affordable yet modern hair solutions, set up your salon accordingly.
Find A Suitable Locatio n
Depending on the type of business and services you are providing, find a suitable location for your hair salon. Find a location that is centrally located, and it should also be easy for your target clients to access.
Obtain Permits
Once you have decided on the location for your salon, you will need to get a building permit, business permit, and all other legal documents.
Stock The Inventory
To run your business, you will at least need chairs, washing stations, hair tools, and other styling products. You can also connect with brands that will attract your target customers to offer their types of equipment at your hair salon.
Hire a Team
Depending on the size of your business, hire a team accordingly. It should have at least two hairstylists who can entertain the customers. The stylists should have a friendly nature and they should be experienced as well.
To open a hair salon, you need to decide which hair services you are going to offer. The services that you plan to offer also depend on the size of your salon, and the equipment that you have. It will also determine how many hairstylists you need and the number of chairs you want in the salon.
There are several services that a hair salon offers. You need to narrow down the services you are going to focus on. This business plan for hair salon will give you a detail about the services.
Our services include the following:
Hair Styling & Haircuts
The basic service that Cute Cut hair salon is providing is hair cutting and styling. Some hairstylists can cut all types of hair for all men, women, and children. After cutting hair, drying it, and styling it is also offered in our hair salon.
Hair Coloring
Hair coloring is another service offered at Cute Cut hair salon. Before coloring the customer’s hair, our stylist discusses all the risks with the customer because coloring can sometimes go wrong.
Hair Extensions
Over recent years, the trend of hair extensions has gained popularity among people. As long hair is in fashion again, and more people are attracted to hair extension treatments. Stylists at Cute Cut Hair Salon are well-trained and experienced in hair extensions treatments.
Conditioning Treatments
These include deep conditioning treatments. The basic conditioning treatment is done to provide moisture to the hair. It adds protein to hair and makes them shiny and smooth.
The other one is specialty conditioning that is customized according to the customer’s hair.
Marketing Analysis of Hair Salon
Great service.
Great service. Good turnaround time and quality work. Thanks!
To make your hair salon business consultants successful, you need to keep an eye on the market trends as well. If you run a complete analysis of the market, you will get an idea about many things. Understanding the trends and variables will help you in making decisions for your business. The goal of this market research is to understand and get a general idea of the overall market around your salon and how you can adjust to that ecosystem.
5.1 Market Trends
Over the past five years, the hair salon industry has grown at an incredible rate. People are now more attracted to advanced hair treatments such as permanent hair, facial and massage etc. The hair salon market in 2019 was $144.48 billion. And by the end of 2026, the market is expected to grow by around $217.25 Billion.
5.2 Marketing Segmentation
If you know exactly what type of business is a hair salon, you can easily understand its market segmentation. There are many business plan examples for hair salon and each of them includes market analysis of hair salon. To estimate the startup cost for hair salon, you need to make a complete analysis of market segmentation for it.
The most important part of any hair salon business plan is to have an idea of the expected marketing segmentation. Here is the market segmentation that will be facing our hair salon:
UK Start-Up Visa Business Plan
5.2.1 women.
80 percent of our services will be offered to women who are interested in hair cutting and treatments. Cute Cut Hair Salon also offers skincare and nail care treatments to its customers.
Some of our services are for men as well. We have hair stylists who are experienced in cutting men’s hair.
5.2.3 Children
We have a friendly staff who treat children with great care and affection. We offer haircutting for children.
5.3 Business Target
- Building a trustworthy relationship among customers
- Providing high-quality services to customers
- Arranging the best interior to impress the customers
- Making an excellent customer care service for our loyal customers
- Recovering the initial investment within two years of launch
- Increase the revenue every year
5.4 Product Pricing
The prices of the services that a Cute Cut Hair Salon provide are comparable to other salon services. We will try to provide better services and customer care to our clients. We will satisfy our customers by providing exceptional services to make as much profit as possible.
Marketing Strategy
In any hair salon business plan template, the financial plan for hair salon should be well-formed. No business can grow and become successful without a marketing strategy. No matter how many excellent services you offer, if you do not have customers, it is all in vain. The more people know about your salon, the more they reach out to you.
Nowadays, the best way of marketing is social media marketing. Social platforms are strong, and they are accessible to everyone. A good thing about social media marketing is its low cost. You can reach out to millions of people with online marketing. All the hair salon business models explains the importance of social media marketing and how you can use them to reach out to people. Along with that, you need a competitive analysis to make a strategy that will make your business successful.
6.1 Competitive Analysis
- People are not satisfied with the services provided by hair salons in that area.
- The hair salons and spas in that area are too costly. And these services are not good enough as compared to their price.
- Most salons do not offer basic services to people.
6.2 Our Strategy
- We will associate our hair salon with community events and charity.
- We will use social media platforms to advertise our hair salon.
- We will make our online presence so that we can reach out to more and more people.
- We will use the advertisements channels in the area to reach out to the people.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
Personnel plan
When you are starting a hair salon business plan, you need to make sure that the staff should work as a team. In the hair salon business consultants examples, you will find out that the environment of the hair salon depends on the number and type of staff which should be determined in the initial stages.
To start a hair salon business plan, list down all the expenses. It includes the rent of hair salon building, the cost of equipment and the employee’s salary.
7.1 Company Staff
Mike James will be the owner and CEO of the Cute Cut Hair Salon business plan. His team would include:
- 1 Social Media Marketer
- 3 Hairstylists
- 1 Accountant
7.2 Average Salary of Employees
Financial plan.
Proper planning and execution of the finance help you to maintain a stable budget for the upcoming entire year. To start a hair salon, you need to make research on how much does it cost to open a hair salon. To run a smooth and successful hair salon, you should have a strong hair salon financial plan.
- Money is needed to make the interior of the salon.
- The cost of chairs, mirrors, and hair styling tools.
- The salary of employees.
- The cost of buying hair products.
- Bonds, securities, registration costs, and insurance.
8.1 Important Assumptions
8.2 break-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
8.5 Projected Balance Sheet
8.6 business ratios.
- Is owning a hair salon profitable? If you’re wondering is owning a hair salon profitable, the answer is yes! It’s a highly profitable business with very lucrative rate of return.
- How much does it cost to run a salon monthly? If you want to know how to start your own hair salon and how much would it cost, consult the business plan above.
- How do I start my own hairdressing business? For starting a hair salon business plan, just follow the steps we mentioned in this template.
- What is a business plan for a salon? A business plan just like this free business plan template for hair salon details how a hair salon business consultants is started and maintained to yield profit.
Download Business Plan for a Hair Salon Sample in pdf
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.
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40 Most Profitable Beauty Business Ideas in 2023
Many beauty professionals now-a-day search for profitable beauty business ideas or trending opportunities in the beauty industry. Any individual can initiate a small-scale beauty business with less money.
Rising consumer income and changing lifestyles are driving the global beauty and personal care product industry. The United States has the largest cosmetics market in the world. As per a recent report in Statista, the U.S. make-up market is expected to maintain positive growth in the coming years.
The global fragrances and perfumes market is expected to experience positive growth with a compound annual growth rate of 2%. per the study, increased awareness has resulted in higher demand for luxury products, especially cosmetics.
Increased demand for multi-feature products such as moisturizing creams with sun protection and anti-aging or anti-wrinkle properties are likely to drive market growth. Haircare is the second largest segment and indicates good future growth potential. The cosmetics segment also has growth potential as demand is increasing for premium cosmetics in the expanding middle class in developing nations.
40 Beauty Business Ideas
1. anti-aging clinic.
The anti-aging clinic provides a method of fighting fine lines and wrinkles. Generally different products such as creams, serums, etc. Sometimes with minor surgery. Having proper skills and expertise in anti-aging treatment, any individual can initiate an anti-aging clinic business.
2. Anti-Tan Salon
Tanning is a major problem for almost every woman who travels outside of the home in the sunlight. And they get tanned skin for maximum sun exposure. Anti-tan units provide treatment and a beauty care regime to get rid of skin tan. The demand for this type of salon is increasing very fast both in the metro cities and small towns.
3. Aroma Therapy
Aroma Therapy is a therapeutic treatment with aromatic essential oils. It can be used by anybody for physical, physiological, mental, and spiritual well-being daily or as and when required. Aromatherapy relies on essential oil to achieve a gentle, nurturing effect on Body & mind. The Oils are used on the skin, in the bath & through inhalation to promote relaxation & well-being.
Learn More: How to Start an Aromatherapy Business
4. Barber Shop
If you are a skilled and professional barber, then starting a barbershop is a highly lucrative business for you. Literally, you can open this kind of store both in small towns and metro cities. Also, you can start the business as a franchise partner of a reputed men’s grooming brand.
Learn More: How to Start A Barbershop
5. Start a Beauty Blog
If you are a beauty enthusiast and want to start an online home business, then you can consider starting a beauty blog. However, you must have dedication, persistence, and writing skills. A good quality blog can earn advertising revenues. Additionally, you can also sell the products on your website.
Learn More: How to Start A Beauty Blog & Make Money
6. Beauty Exhibition Organizer
Having a proper network and business connections with the beauty industry professionals, one can start this business. Beauty exhibitions provide a great way to build exposure for a budding list of models and a great way to make more contacts within the beauty industry.
7. Beauty Magazine
Basically, fashion and beauty magazines are very premium magazines globally. And magazine with a specific niche audience can earn good advertising revenue. However, this is not an easy business. The business demands strategic planning and substantial capital investment.
8. Beauty Salon
Beauty parlors or salons provide products and services that enhance the client’s physical appearance and mental relaxation. This is one of the most trending beauty business ideas in the retail segment.
Learn More: How To Start Beauty Salon Business
9. Beauty Product Affiliate Marketing
This is an excellent home-based online beauty business idea. Reviewing the products and selling the products from there through an affiliate program is a self-rewarding way to generate a handsome income. The most interesting is this without having any inventory you can sell enormous types of products from there.
Learn More: How to Start Affiliate Marketing Business
10. Beauty Spa
A beauty spa or day spa business is one of the most profitable beauty business ideas. With proper management skills and marketing strategy, any individual can initiate a beauty spa business with substantial capital investment.
11. Body Piercing
The mobile body piercing business opportunity is perfect for those entrepreneurs who are skilled enough in piercing and want to operate the business from a metro city location. Body piercing is exactly making a piercing in the body with a needle to get an opening for the installation of a piece of jewelry.
Learn More: How to Start A Body Piercing Business
12. Cosmetic Store
A cosmetics store is one of the most trending beauty business ideas in the retail sector. Apart from the renowned brand, you can also sell local brands that offer a comparatively bigger margin. It includes a vast variety of products such as skincare, haircare, personal care, essential oils, aromatherapy products, etc.
Learn More: How to Start a Beauty Supply Store Business
13. DIY Appliances Selling
This is one of the most trending beauty business ideas. So many people want to create their own cosmetic or skincare product at home. Several different specialty appliances are also there to make the products. These products are very much useful and considered luxury items.
14. Embroidery Unit
Embroidery is ancient needle art. And it is one of the most popular needlework for designer garment making. Additionally, embroidery is very popular in any type of decorative bag, home decor, and home furnishing industry.
Read: How to Start an Embroidery Business
15. Fragrance Selling
Fragrance is a multi-billion dollar industry globally. It includes scents, perfumes, deodorants, body sprays, etc. You can establish a production business or you can only sell these products with an exclusive retail agreement with a reputed and reliable fragrance manufacturer.
16. Hair Removal Service
The hair removal service business can be initiated in two ways. One is by setting up a hair removal clinic and the other way by giving service mobile – at the client’s doorstep. Proper knowledge and skill are required. Laser hair removal involves the removal of body hair permanently, using laser equipment.
17. Hair Salon
A hair salon is one of the most trending beauty business ideas that can be initiated with substantial capital investment. You can start a hair salon business as your own or by buying a franchise of a reputed brand. Buying a franchise will definitely help you in entering the hair care industry at the beginning.
18. Sell Herbal Beauty Products
Consumers worldwide prefer herbal beauty products such as skin care products, hair care products, make-up products, and others. The market share for herbal beauty products has increased considerably as compared to synthetic beauty products.
19. Image Consultant
The image consulting business is all about providing advice to your clients about beauty makeovers, clothing fitness, color basics, and instructions for enhancing self-confidence that helps them to look and act their best professionally. An individual having true passion and interest in helping others can initiate this business part-time from his/her home location.
Learn More: How to Start an Image Consulting Business
20. Makeup Artist
If you enjoy doing makeup on others’ faces and know how to create magic with different cosmetics, you can start this business from your home location and part-time also. As a makeup artist, you will provide service to clients who look their best for weddings or other special events and give beauty makeovers to people who want to update their everyday images.
21. Nail Salon
Owing a nail salon business can be fun and profitable and is a great beauty business. If you are short on budget, you can start from a home location while providing services on a mobile basis. Many people, including both men and women, enjoy getting a professional pedicure and manicure occasionally.
Learn More: How to Start a Nail Salon Business
22. Manners Training
Manners training professional’s demand is increasing rapidly not only in developed countries but also in developing countries. Well-behaved children with proper manners are the pride of every parent. You can start this business either by setting up an institute or at home.
23. Massage Salon
Initiating a massage salon or starting a career as an independent masseur, demands specific skills, certification, and experience. A massage salon is one of the most profitable beauty business ideas one can initiate with proper planning and substantial capital investment. In the United States, there is a wide scope of making money running a massage salon.
24. Massage Therapist
Starting your career as a massage therapist is an excellent idea if you have the proper skills and are passionate about the job. Any individual can initiate this business as home-based and mobile. Either you can provide the service at the client’s premises or you can arrange a massage space at your home if you have a spare room there.
25. Mobile Facial Spa
The mobile facial spa business provides services to people who just can not make time in their busy schedules to allow themselves the luxury of a facial and spa, especially when they work full-time. A person having interest and training in beauty and cosmetology could provide a service where he/she brings the facial and spa service to a person’s home or any desired location like offices, hotels, and hospitals.
Learn More: How to Start a Profitable Spa Business
26. Mobile Foot Massage
Mobile foot massage service business can be initiated as an independent professional or set up as a company. As daily lifestyle turns out to be more stressful, the demand for massage services is on the rise and it creates terrific opportunities. One can start this venture with a very minimum start-up cost. People who spend a lot of time on their feet are the obvious customers for this business.
Learn More: How to Start Mobile Foot Massage Service Business
27. Natural Skin Care Product Business
Demand for natural skin care products is increasing day by day, because of increasing awareness of natural product usage. If you have that skill and expertise you can start natural product manufacturing and selling.
28. Nail Art Shoppe
Nair art is an emerging industry. And the industry is growing very fast. If you want to start a niche business in the fashion and beauty industry, you can consider starting a nail art shop of your own. The business demands moderate capital investment and strategic marketing planning.
29. Online Cosmetic Selling
If you are passionate about beauty products, you can start an online cosmetic selling business home-based and part-time also. With the right technology, a lot of passion, and a little knowledge, you could run a well-oiled online store that could win you customers for life.
30. Paper Jewelry Making
Basically, pearl jewelry comes in semi-precious jewelry. Therefore, people from different economic classes can afford to wear this type of jewelry on a regular basis. You can start this business at home also. However, the business demands small capital investment for procuring pearls and other equipment and hand tools.
31. Perfume Retailing
This is another great retail business you can consider in the fashion and beauty industry. The business is highly profitable. Additionally, you can sell perfumes from both offline and online stores. For an offline proposition, the shop-in-shop or kiosk model works best in this business.
32. Sauna Lounge
Physically, nothing is more reinvigorating than a deep, healthy sweat every day. Tension fades. Muscles unwind. Mentally, we emerge relaxed, revived, and ready for whatever the day may bring. In initiating a sauna lounge business most crucial is location.
33. Senior Citizen Clothes Retailing
Senior citizens need a special type of comfortable clothing and dresses. And opening a specialty store for only senior citizens is a highly profitable business. However, the success of this business highly depends on the local demographics of your area. Therefore, thorough market research is an absolute necessity prior to starting this business.
34. Specialty Soap Making
The soap-making business is very profitable. And as your business grows, you can scale up at any moment in time. With a few types of equipment and raw materials, you can start this business. Additionally, the business demands a small amount of startup capital investment in starting.
L earn More: How to Start A Soap Making Business
35. Skin Care Consulting
Skincare consulting is one of the most profitable home-based beauty business ideas that can be started with less capital. Skincare consulting is actually providing services to clients to find the right combination of skin-care products to enhance the health and appearance of their skin.
36. Stretch Mark Removal
The Stretch mark removal business can be initiated in many ways. You can start this business as a home-based, as mobile, or as initiating a retail outlet of stretch mark removal clinic. Proper planning and excellent skill are important in this business.
37. Tanning Salon
The tanning salon is one of the most profitable beauty business ideas that can be started with proper planning and substantial capital investment. Using technology updated machinery and having a proper marketing strategy is important to be successful in this business.
38. Tattoo Parlor
The Tattoo parlor business opportunity is perfect for those who are aspiring tattoo artists and passionate about tattoo art. A Tattoo parlor business demands a certain level of professionalism and to make the tattoo parlor business a successful venture tattoo artists of your shop are the key factor.
Learn More: How to Open A Profitable Tattoo Parlor Shop Business
39. Wedding Shoppe
If you are a creative person, you can consider starting a wedding shop of your own. Basically, a wedding shop offers every single item related to weddings. The wide list includes wedding dresses for brides and grooms, jewelry, wedding rings, shoes, etc. The business demands strategic planning and moderate capital investment. You can consider opening a franchise also.
40. Wigs Making & Selling
Nowadays wigs are not just considered as costume accessories, used openly by celebrities and non-celebrities alike. The medical service industry is one of the great markets for wigs for those patients who have lost their hair due to illness. Customized wig selling is one of the most trending and profitable beauty business ideas.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.
Kashi Beauty Salon
Location & Hours
24602 36th Ave S
Kent, WA 98032
S 38th Ave & S 35th Pl
Frequently Asked Questions about Kashi Beauty Salon
How is Kashi Beauty Salon rated?
Kashi Beauty Salon has 5 stars.
What days are Kashi Beauty Salon open?
Kashi Beauty Salon is open , Tue, Wed, Thu, Fri, Sat.
IMAGES
COMMENTS
Your hair and beauty salon business plan doesn't need to be hundreds of pages—keep it as short and concise as you can. You'll probably want to include each of these sections: executive summary, company summary and funding needs, products and services, marketing plan, management team, financial plan, and appendix.
Easily complete your Beauty Salon business plan! Download the beauty salon business plan template (including a customizable financial model) to your computer here <- Financial Highlights Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon.
While each of these business models will provide a very different environment for your customers, they are each a potential way for you to find success in your new endeavor, all while doing what you love. Establish a Hair Salon Business Theme Natural Hair Salon Business High-End Hair Salon Business Vintage or Art-Oriented Hair Salon Business
As a result, a number of salon owners changed their business model and offered additional services and retail other than wet products. As we exit the pandemic, those salons will be in a position to survive and grow, as their business model is formulated with good margins and high profitability.
To create your business model canvas for your hair salon, you need to include these nine sections: Customer segments Customer relationships Channels Value propositions Key activities Key resources Key partnerships Revenue streams Cost structure
It's Time for a New Salon Business Model - Salon Management - Salon Today Eurisko's Leon Alexander studies the emerging consumer trends of instant gratification, borrowing, customization and entertainment, then sketches out plans for the salon business design of the future. Read the latest issue of Salon TodayPast IssuesSubscribe
Not all are relevant for salon businesses but I have summarized the ones most applicable below. 1. The Fee-For-Service Salon Revenue Model The first model is a model that you as salon owner should be most familiar with as this is the one where the business charges for the service they provide.
Example: A chain of beauty salons that buys supplies in bulk and sells some of them to other salons is using a distribution business model, though they may have other revenue streams too. 10 ...
The financials that are enclosed have a number of assumptions: We'll be using a full commission model with stylists and barber getting 60% commission on revenue. Industry average runs 45-65%. We're on the high end because we are not offering a guaranteed base. This is what we're used to. The owner will take a straight salary plus ...
A beauty salon trade is one industry that promises to fulfill the fantasies and needs of women who love to look and feel their best at all times. Some of the offerings at a beauty salon include; hair perming, nail grooming, manicure, pedicure, fixing of hair weaves, braiding, amongst many others.
Beauty Salon Business Model Highlights Five-year business model template to develop a beauty salon business with help of monitoring profitability, planning yearly revenues, extra...
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 type of beauty salon you are operating and the status; for example, are you a ...
Salon Business Plan Template Your salon business plan should include 10 sections as follows: 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.
Tanning Salon Business Plan. Tropical Tan is a start-up tanning salon company seeking financing. In addition to selling tanning booth sessions, they will also retail swimwear, and skin care and tan enhancing lotions, oil, etc. Opening up a salon or spa is all about providing exceptional customer service. But in order to focus on exceeding ...
As of 2022, the U.S. beauty salon industry (that includes hair, skin and nail salons) was worth an impressive $53 billion. Even better, the market for both spas and beauty salons is expected to grow at a rapid rate, from $116 billion in 2020 to a staggering $244.5 billion by 2030.
A Sample Beauty Salon & Day Spa Business Plan Template 1. Industry Overview In the united states of America there is always the need to work so as take care of the basic needs of life. Some folks get to work round the clock with little or no time left for them to take care of their selves.
Here are just seven beauty business ideas for you to consider. 1. Become a freelance hair and/or makeup artist. If you're already a practicing hair and/or makeup artist at a studio ...
A salon business plan is your blueprint to guide you through the process of starting and managing your establishment. It provides a roadmap to set up, structure and run your business. In the startup phase, the salon business plan helps you outline your key objectives with the business. It also helps you set a strategic direction for the salon.
Here we've broken down the entire process into 7 easy-to-follow, foolproof steps, along with their templates, to help you create a successful salon business plan. Write a mission and vision statement. Create an executive summary. Analyze and identify your target market. Perform a competitor analysis.
Salon equipment: A salon requires a ton of equipment, like beauty supplies, sinks, chairs and hair dryers. You may also need a POS system, computer, business phone system and more. Inventory: If ...
The main customers for the hair salon business consultants will be the following: Women and men who are looking for hair treatments. Children of age 15 and above. Our best business plan for a hair salon includes all the hair removal treatments we mainly offer to women. 2.4 Business Target
Laser hair removal involves the removal of body hair permanently, using laser equipment. 17. Hair Salon. A hair salon is one of the most trending beauty business ideas that can be initiated with substantial capital investment. You can start this business as your own or by buying a franchise of a reputed brand.
Urmila was previously part of "Kaya Beauty Spa" but is now known as Kashi Beauty Salon at the same location. She gives the best scalp massages and we always have something to chat about. Most importantly, she tames my unruly hair and leaves me looking like a hair model! 1. Funny.