Salon Business Plan Template
PandaTip: If you are creating a salon business plan, your initial step is to develop the Executive Summary which will give your reader a basic overview of the vision for your salon. First, you want to introduce the reader to your plan, tell them who you are, who your company is, and what your salon will be. In the first 10 seconds of reading your plan, the reader should have a basic sense of who you are at the very least.
Next, you want to explain the location in which you will be opening your salon. Salons are neighborhood-based businesses that often get customers simply by virtue of the location so this is an important detail to describe. If there are lots of local businesses surrounding from which you may receive clientele then state that here.
Additionally, you may want to get into some details that may be relevant here. Describe your facilities. How many chairs will you have? Will you offer extra services to your clientele such as coloring hair? You will have a chance to get into greater detail later, but you might want to touch up on the basics of your services here.
Whatever else is specific to your vision for the salon is relevant. Limit the Executive Summary to a few paragraphs, but give the reader a basic picture of what you are envisioning.
Additionally, if you are looking for funding, you may want to place something similar to the following at the bottom:
In order to fulfill our vision we will require [AMOUNT] in capital, which will be allocated roughly according to the following table:
Use of Capital
If we are fully capitalized, we hope to be profitable by [TIME].
PandaTip: You do want to make sure that you explain to your investors why it is you need this capital and what assumptions you are making that lead you to believe you will be profitable. The math can wait until your section on profits and losses, but give them a logical path to understand why you will be profitable.
PandaTip: The first step in developing your marketing plan is determining what demographic you will be looking to serve as that is to whom you will be trying to appeal. This could be anything from families, working professionals, or high-end customers. Just be sure you tie your target demographic into your location.
PandaTip: As a salon is a business that is very locally-focused, you can research the area surrounding your planned location and come up with a list of salons and barbers already operating in that area. Some of these locations might not be in direct competition with you depending on your target demographic, but you should at least mention them as potential competition.
Our Specific Marketing Plan
PandaTip: After determining your demographic and analyzing your competition, you should go into detail as to how you will appeal to that demographic over your competition. This should be a logical progression, but get creative! If you are entering an already existing market as a new business you will have to let people know you are there somehow.
For example, you could do any of the following: Offer coupons in a local publication for a discounted (or free) first cut for new customers; Offer a Groupon (or similar type of offer) in your city for discounted haircuts; or Enter a strategic partnership with another local business that offers complementary services (e.g., a bridal store, a nail salon, etc) in order to generate a pipeline of customers. The possibilities are really endless, but understand that your brand identity is largely defined with the manner in which you market yourself.
PandaTip: While the services offered by a salon are typically very straightforward, you still want to go into detail here with what you will do. Describe any peripheral services you might offer such as hair coloring and shaving. You may also offer a line of products that can be a good upsell to your clientele.
PandaTip: This section is where you get into the details of operating your business. Describe to your reader what it will take to get your salon running on a daily basis – suppliers, barbers/stylists, and licenses.
PandaTip: Not only should you get into detail with regard to the arrangements you have in place (and will be seeking out) with suppliers for shears, clippers, and other standard salon equipment, but you may have a strategic partnership with a hair product manufacturer. These can be very lucrative partnerships as it gives the manufacturer placement of their products in a location where hair will be at the forefront of the consumer’s mind, but you can make a good profit margin on the sales of such products. Describe any you have in the works or you will be seeking out.
PandaTip: Salons and barber shops often contract out with their staff and you will probably have some sort of guidelines that govern all your arrangements with such staff. Describe here how many chairs you will be looking to fill and hours of operation.
PandaTip: Stylists and barbers are subject to licensing requirements and so you should describe the requirements for your staff and for your business. Additionally, you may have to acquire licenses to operate as a business in your location depending on the administrative rules of your town.
PandaTip: Here, you can itemize your estimated ongoing expenses. They don’t have to be more than educated approximations but make sure you put a lot of thought into this section for the development of your own expectations, if nothing else.
We expect our monthly outlay of expenses to approximate to the following:
Type of Expense
PandaTip: You might be a sole proprietor or you could be operating a big company opening up a new location. Either way, it is important that you describe to your reader a comprehensive biography of the minds behind this venture. Education, experience, and even hobbies and family life are relevant and welcome information to include here. Let your reader really get to know the people who make up your salon’s high-level management team. Feel free to include photos of previous salons, satisfied clients and other example of your success and experience.