Do you want to start a beauty salon? And trying to write a beauty salon business plan? If so, find here in this article, a stepwise guide on writing a business plan document on beauty salon.
Your dream of opening a salon is finally beginning to take shape. You’re checking out locations on the trendiest places in town, flipping through catalogs of top-of-the-line equipment, and looking for a list of rockstar stylists. But do you have a business plan? Stop right here.
No matter how good your new searches are, without a well-written beauty salon business plan, even the most promising beauty salons can head south.
A business plan is an official written document that describes in detail your business objectives. Your plan should include information about your team and company, and an outline of how you plan to accomplish your goals.
Whether you are updating your current salon or opening a salon for the first time, this guide will help you formulate an effective beauty salon business plan.
Here are the steps to Follow to Write a Beauty Salon Business Plan
Parts of a Beauty Salon Business Plan
Your business plan should cover the following elements:
- Executive Summary
- Company Description
- Products and services offered
- Operational plan
- Management team
- Pricing strategy
- Marketing plan
- Financial plan
We’ll break down each segment, step by step for you to understand better.
1. Executive Summary
The first segment of your beauty salon business plan should include a summary of the entire business plan and a company profile that lists your goals for the next five years. It is known as a short five-year plan, and you should summarize where you want to locate your business, the operating costs of the company over the first five years, etc.
In addition, you can add your revenue and expected obligations over those five years and the goals that you want to achieve in that period. It should be written in brief and should contain 6 to 10 concise objectives.
2. Company description
You must provide information about the type of salon you want to own, the types of services and products you will offer, and the unique selling proposal (USP) that will distinguish your program from other salons. USP differentiates your products and services from all those who provide the same product or service.
For example, if your salon services are 25% cheaper than competitors’ prices, include USP in your company description. It is also essential to explain why you choose this location and the demographic distribution of the area you will serve. If you’re targeting premium customers, explain how products, services, and individuals will meet the needs of high-income customers.
3. Products and Services
While the services provided by the beauty salon are generally straightforward, you still want to get here in the details of what you will do. Describe all the critical services you can provide, such as hair coloring and shaving. You can also offer a range of products that can be an excellent way to increase your customer base.
4. Operational Plan
This section is where you get into view the details of operating your business. Describe to the reader what it will take to get the beauty salon work every day – suppliers, hairdressers/stylists, and licenses.
Not only should you go into the details of the arrangements you have made with suppliers for scissors and other standard salon equipment, but you may also have a strategic partnership with the manufacturer of salon products. These partnerships can be very profitable because they allow manufacturers to place their products in a place where the hair is at the forefront of consumer concerns, but you can make the right profit margin in sales of these products.
5. Management team
Clearly define your organizational, managerial and staffing strategies. It will include the role of the owner (s), as well as the responsibilities and compensation of managers, clerks, receptionists and all service providers.
You might be a single proprietor, or you could be operating a large company. Whatever the case, it is important to describe to the reader a complete biography of the minds behind this effort. Let the reader get to understand the people who make up the high-level management team in your beauty salon. Feel free to include photos of past salons, satisfied customers and other examples of your success and experience.
Beauty Salons and barbershops usually contract out with their staff, and you will have some guidelines that dictate all your arrangements with such staff. Explain here how many places you will be looking to fill and hours of service
6. Pricing strategy
Pricing is the core of a business. It influences everything you do and is affected by everything you do.
The accurate price should fall among your cost and the value you offer to customers. Within this range, your rates should be closer to the value of what you’re selling.
7. Marketing plan
The first part of the marketing plan section should describe the position of your salon or spa market. For example, are you a salon focused on colors with high-level customers? Does your spa accommodate couples and active professionals in a child-free environment, or are you a full-service, family-oriented living room?
Break down all demographic factors by age, gender, level of education, average income, occupation, description of needs, preferences, desires and even customer perceptions. Then, determine the effect of a salon or spa on the target customers and their specific needs. Set realistic goals and describe a series of accurate data on how to capture your target audience and market share through specific promotion, advertising, and PR programs.
8. Financial plan
Creating a detailed financial plan can help you anticipate barriers and risks, fine-tune your cash flow, and get an idea of the progress of your salon from month to month and year to year. You want to provide financial information such as the projected budget, the first five-year financial projections, expected liabilities, estimated profit margins and the time it takes for your salon to break even.
The bottom line
If you can deal with exclusive styles and services, potential customers will want to do business with your salon. I hope these first five steps to creating a salon business plan have clarified some elements and provided you with the information you need to get started.