how to start a business plan for a hair salon

How to Open a Salon in 2024 (Checklist & PDF)

Are you planning on opening a salon?

That’s awesome!

What will it be? A hair salon, nail salon, barbershop, or maybe a full-service beauty salon or spa?

I’m so happy that you landed on this article.

This is going to be an important read for you.

If you’re looking for a checklist on how to start a salon business, you’re exactly where you need to be.

The salon industry is on the rise. People are spending more and more on beauty, and it’s never been a better time to start a salon.

But let’s talk straight here.

Many salon businesses still fail.

The main reason salon startups fail is not because of a lack of money or poor services.

It’s because of poor planning.

This is why this article is so important to you.

This is why TheSalonBusiness.com and all the resources I publish here even exist.

Today, you’ll get a complete “opening a salon checklist” with all requirements for opening a salon.

If you’re on a tight budget, I’ll even show you how to open a salon with no money.

It’s quite a long article. But it’s probably the best investment of time you can make today.

Pin it to your Pinterest board or bookmark the page to return to it later.

Are you ready to realize your dream?

Let’s go through how to start a salon business.

↓ Pin it for Later ↓

Hear how My Erlandsson Started her Salon Business and Opened her Two Hair Salons

We’ll soon dive into the checklist, but if you want to hear the full story of that experience, watch the video below, where I interview My about how she went from idea to building two thriving hair salons.

How to Open a Salon?

I strongly recommend following 29 actions when opening a hair or beauty salon. The table below is an opening-a-salon checklist you can follow to ensure you cover all you need to do. I will go into each one in detail in this article.

These actions are relevant regardless of whether you plan to start a hair salon, nail salon, barbershop, tanning salon, beauty salon, or spa.

Before we dive into each item on the opening a salon checklist, I wanted to tackle the question I often get: How much does it cost to open a salon, and can I open a salon without money? 

Get Your Mind Ready to Start a Salon Business

You’re embarking on an exciting journey.

However, opening a salon is not always fun and easy. It comes with responsibility and hard work, which can sometimes be challenging. 

This is why the first part of the salon checklist for opening is focused on how to prepare yourself. 

1. Build Your Salon Business Knowledge & Experience

Maybe you’re currently employed in a salon. Or you’re still in school.

Independently on where you are, your focus needs to be on learning the art of running a salon business now.

Obsess about learning.

The more you learn, the more you earn when running your business.

Getting a Cosmetology or Beautician’s degree is just the start. Most schools don’t cover the business side of things as well as they should. That’s why I created this blog in the first place. 

And the beauty is that there are so many places to learn today. Just the fact that you’re reading this post right now tells me that I don’t need to convince you about that 🙂

You’ll need a mix of both practical experience and theoretical knowledge.

Gain Practical Salon Business Experience

Getting some practical experience before you start your own salon can save you a lot of expensive mistakes later.

So, if you’re not already working in a salon, get a part-time job after school (or wherever you spend your days). Get out there. Listen to what people ask for. Get a feel for how the salon business works.

You can learn tons from being in a salon and looking at what’s happening there. And now that you know you’ll be starting a salon yourself, you’ll observe the world through a different lens and see things other people not planning to start a salon will see.

Learn the World of Business

You can subscribe to blogs, YouTube videos, podcasts, etc. for free. Well, I don’t need to tell you that since you’re reading this now.

I publish many free blog posts, videos, and courses to support you.

Here are a few resources I recommend you start with:

• Download my PDF guide to building a thriving salon business
• Sign-up for any upcoming live trainings
• Subscribe to my YouTube channel

That’s probably enough for you to start with 🙂

2. Get a Salon Mentor

You’re not the first one to start a salon.

Many people have gone through the same journey. So why not learn from them?

A mentor is someone you can meet regularly to discuss the challenges and ideas for your new business. Someone with the experience to guide you and give you perspective on what you’re going through.

I would never have been where I am today without my mentors and I strongly recommend that you look in your network if you know someone with the right experience you can reach out to.  

3. Articulate a Vision for Your Beauty Business 

You cannot build a house without having a clear vision and drawing of what it should look like.

I’m sure you’ll agree that starting to build a house without a vision and plan will result in a strange and random structure that will probably never be finished.

The same goes for your salon business.

All things are created twice; First mentally; then physically. The key to creativity is to begin with the end in mind, with a vision and a blue print of the desired result. Stephen R. Covey

To get at least close to your new salon, you need to have a clear and vivid picture of it. Try to really envision what it will be like when you’ve opened the doors. 

What type of clients will you meet in your salon?

What will the salon interior look like?

Will you have staff working for you? If so, what will they be like?

You don’t need to get rational here. Don’t start writing bullet-point lists of everything you’ll have. Instead, picture yourself visually in your salon. Try to feel now what feeling you’ll have when you’re there. 

This might sound fluffy, but it is proven that having a clear and vivid picture of your future significantly increases your chances that this is how your salon will end up.

4. Decide the Type of Beauty Business to Start

I’m sure you already know if you want to start a hair salon, nail salon, barbershop, beauty salon, spa or something else.

But there are many different types of salons you can start. 

Salon Business Types

These are some of the common types of salon models that you should consider when starting your salon business, and there are also variations to each model that you’ll discover.

Try to determine which model resonates best with your budget, risk acceptance, and desire for freedom.  

5. Define who your Ideal Salon Client Is

Starting your own salon business means you’re the boss – right?

Well, yes and no..

In fact, it’s more as if you just got a new boss..

You might know her, she’s called your client 🙂

So who do you want as your boss?

Your salon exists to serve your clients. If you serve your clients well, you’ll also be rewarded. But all people do not want the same thing. Some have a limited budget, some value going to a known salon name, some want a pampering experience, and some have limited time and a fast service.

This is why deciding who your ideal client is is important now. This way, you can design everything about your new salon to speak to her. 

Because you cannot be attractive to everyone.

When you speak to everyone, you speak to no one Meredith Hill

Get as clear as possible about who your ideal salon client is. Picture her in front of you.

I want you to see her.

She can be someone you already know or a fictive character you just make up. It doesn’t matter. What matters is that you have a vivid picture of who she is, what she likes, and what problems she has. The persona is someone you should have in your head as you make thousands of big and small decisions about your business over the coming months and years. 

There are a few questions you can ask yourself as you define who your ideal salon client is.

Who do you want in your Salon?

This is maybe the most important one. You’re going to spend a lot of time with your client, so it better be someone who you actually want in your salon. Otherwise, it will be difficult to serve her well in the long run.

How Big is the Market?

It’s good to get detailed in your definition of your ideal client. The more specific you are, the more she will feel like your salon is exactly for her. But at the same time, you need to make sure there are actually sufficient people in the area who fit the description of your ideal salon client, or you may be niching down your salon too much.

You’ll learn more about how to define your salon’s target market as you create your salon business plan .

How Profitable can you Make the Target Salon Client?

You can make most salon clients profitable. However, your choice of salon client will influence your salon’s business model . For example, you can go after the cost-conscious client with low prices and make that profitable. However, your operations will need to follow. This means shorter appointments, basic services, and less attractive salon locations. This is why you need to have the overall salon vision in mind when choosing the client to go after.

Does she have a Problem you can Solve?

Finally, you should think about how you deliver value to the target client. And you do that by solving her problems. 

Understand what her problem is and how you can solve it. Your solution will often be part of the salon services you offer, but it can also be how you offer them, such as attractive prices, a rich experience, or convenience.

6. Study Your Competition

Competition is a good thing.

You shouldn’t be scared just because you see other beauty salons in the area.

The opposite actually.

I would get more suspicious if there weren’t any other salons in the area as this may be a signal that there’s no need for one. 

The fact that there’s competition proves there’s a market.

But you should stay close to the competition, understand what they are doing, and what’s working and not working for them. This way, you can avoid making expensive mistakes yourself. Coming in later to a market gives you an advantage. You have fresh eyes while they are, in many cases, locked into how to do things, making it more difficult for them to be innovative and come with new thinking. This is what you will do, giving you an edge over them.

But how should you study your competition? 

Do a Google Search

One of the most common ways that people will find your salon is via search. Having your salon showing up at the top of the search result page will be crucial for your success. So you should check out who owns that space in your area and study that salon.

Have a Coffee Outside the Salon Near You

Just spending a few hours looking at their clientele, how they meet their clients, and what they offer can give you insight into their salon’s positioning and clientele.

Follow them on Social Media

Like with search, social media is an important marketing channel for salons . You want to see how they use it and if they have an engaged following. Following them will also give you more insight into what they are doing in the salon and any salon promotions they are currently running.

Browse Other Salon’s Websites

You must go over the websites of all salons in your area. Here you can make note of salon services offered and their pricing . Note all this information down in a spreadsheet or document as you’ll need it when you’re designing your salon offer . 

But you shouldn’t only look at salons in your area. In the end, you want to be different from them. Spend some time also going over other salons’ websites and make notes about their salon branding, marketing, price list, and offer. To help you with this, I’ve pulled together a long list of nail salon websites, hair salon websites, and beauty salon websites here . 

Keep your friends close, but your enemies closer. Mario Puzo

Create your Blue Ocean

The competing salons in your area will influence how big share of the market you can get. This is something we’ll go into in more depth as we start writing your salon business plan .

However, the size of the market is not definite. You can make the market bigger. When you know what competition is up to, you can focus on how you can be different to them. And how you can add additional revenue streams to your salon that they don’t have. 

You can create a Blue Ocean to compete in.

The concept of Blue Ocean Strategy was coined by W. Chan Kim & Renée Mauborgne in their book with the same name . In the book, they make the distinction between a red ocean and a blue ocean, where the red ocean is where traditional businesses compete for market shares. Businesses with a blue ocean strategy go and increase the size of the market by being different from the other.

I recommend you look at competition with that lens.Think about how you can make the market bigger rather than just eating share from your competitors. 

Plan and Setup Your Salon Business

It’s time to build the platform on which you’ll launch your salon business. In the coming steps, you’ll create your business plan and complete all the requirements when opening a salon.

7. Start Drafting Your Salon Business Plan

Opening a salon is a big project.

And the journey to getting there can seem overwhelming in the beginning. Where do I start and what do I do next?

You need a plan.

And I suggest you start drafting one already now. It doesn’t need to be perfect from start. But it will help you ask the right questions when you move forward with your salon business setup.

Let’s cover an overview of the key components of your business plan.

What is a Salon Business Plan?

A salon business plan is a summary of how your salon business will function and clarifies why it will be successful. It provides a roadmap with goals and milestones to lead your salon to success.

Why do You Need a Salon Business Plan?

The primary reason you need a salon business plan is for you to get in control of your beauty business and to enable the right decisions up front.

A well laid out plan gives you a clear path to follow as you set out while it also helps spot weaknesses in your salon business early. You also need a salon business plan to communicate with others.

If you need to raise money, the bank or investor will want to see your salon business plan before issuing any funds.

Tracking your Progress

Any plan you build is useless unless you’re able to measure and track how you’re living up to the plan. To enable this, you need to get a salon software with strong reporting capabilities that allow you to understand the numbers.

The tool I use and recommend is Mangomint . Not only because of all the powerful reporting features (as shown in the video below), but because it’s simply a pleasure for you, your team, and your clients to use.

What Should a Salon Business Plan Include?

To learn more about all the parts you need when creating your salon business plan, I’ve put together a step-by-step salon business plan guide here .

8. Define Your Salon Start-up Budget

One of the biggest worries for new salon owners is money.

You likely have bills to pay mouths to feed. And it’s hard to predict exactly how much your salon business will generate when.

But you can mitigate this stress through proper budget planning. 

How to Create a Salon Budget

The easiest way to plan out your salon expenses is to create an expense forecast in Live Plan. This allows you to automate the whole process.

If you’re good in Microsoft Excel, you can use that as well of course. 

What’s most important is that you get a realistic budget in place that you can update and maintain as you move forward and learn about what the actual costs are.

But what you you include in your salon expense list? Let’s go over what the common costs are. 

Salon Start-up Costs List

Common  costs when starting a salon  are:

• Rent deposit
• Buying out previous salon owner
• Leasehold improvements
• Salon equipment
• Initial supplies and inventory
• Certifications and licenses 
• Salon insurance
• Salon launch marketing

Your expense forecast should also include the going costs your salon will have. 

Monthly Salon Expenses List

The biggest monthly expenses a salon have are:

• Rent and utility bills
• Product purchases
• Education 

I’ve also put together a salon cost guide that I recommend you go through which covers the topic in more depth. This guide will help you identify the costs you need to include as well as give you some assumptions that you can work with. 

Access the article here: How much does it cost to start a salon?

9. Find a way to Finance your Salon

If you’ve completed the previous step, you should now have an idea of how much money you’ll need to start your salon business.

Hopefully you have some money saved for you new venture. But chances are you’ll need more money than that to set your salon venture off to a successful start.

There are of course ways you can get additional funding for your salon start-up. I have summarized the options you have here. Needless to say, you need to use caution and conservative business assumptions when you’re raising capital from other sources than your own. This comes with additional risk which you need to be conscious about.

1. Get an Overview of the Money You Already Have

The best is if you can fund part of your salon using the money you already have. Consider what you have in your savings account, if you have any stocks you can sell, if you own a property you can draw credit from, or if you have things you can sell like jewellery or cars.

2. Let Family and Friends Invest in Your Salon

You may have people around you who believe in your venture and are ready to support you. The benefit of this is that it eliminates credit approvals and bank fees. However, you want to make sure that you’re not putting your relationships at risk. Thus, I would really only consider accepting friends and family support if you are confident you can return the payment.

3. Use Credit Cards for Short Term Financial Help

Credit cards are commonly used when starting up a business to get short term funds for investments. This can be a great help for your cash flow but you of course need to be certain that you’re able to pay back after the short payment period.

Interest rates for credit cards after the payment period can be high so if you’re not using it safely you can end up in a bad place that you want to avoid.

4. Get a Bank Business Loans for your Salon

There are providers that specialize in small business loans. A popular place to turn for loans is Fundera. They compare different loan providers for you so that you can find the best solution for you.

It can be difficult to get a regular loan from providers if you’re just starting out and don’t have and proven business performance to show. This is where SBA financing comes in.

5. SBA Financing for Salons

If you’re not able to get a regular bank loan you may still be able to get an SBA secured loan . What this means is that the U.S. Small Business Administration guarantees the loan for you. This reduces the risk for the lender and in turn the cost of the Loan.

To find out who offers SBA secured loan, you can compare SBA loan options at Fundera . You should be prepared for that the application process for these loans to be long even if the cost of the loans are typically lower than traditional bank loans. 

So you should apply for your SBA loan as soon as you know you need one.

Financing Summary

It’s not as easy to get good financing when you’re starting a new salon business as when you have a well-established salon and just need additional funds to grow.

You can always check what loans you can get at Fundera. They also have a proven track record of being able to find solutions to new business where the traditional banks have said no.

Even if you can get a loan, you still want to make sure you do not take too high risk yourself. You want to be confident in your ability to pay it back. What will help you get that confidence is a good salon business plan . This is also something that bank will want to see to give you a loan.

10. Decide on your Salon’s Legal Business Structure

You’re making good progress!

You’re starting to get a log of the foundations in place to launch your new salon business. So it’s soon time to officialize your new business!

But before you do, you must decide what legal structure your business should be.

What Legal Business Structure Should a Beauty Salon Be?

Salon owners can choose from five possible legal structures when starting a salon business: Sole Proprietorship, Partnership, Limited Liability Company (LLC), S Corporation, or C Corporation but an LLC is probably your best option. 

The choice of business structure affects how much taxes you’ll pay, your liability, how much administrative work you need to do as well as your ability to get loans and raise money.  

An LLC business setup protects you from personal liability. It’s only the money that you put into your business that you have at risk. This is the main reason you should consider an LLC vs. a Sole Proprietorship. 

LLCs are also flexible. They don’t require shareholder meetings, a board of directors, and other formalities that a corporation does.  On top, there’s also more flexibility when it comes to taxation. 

However, the right legal structure could be different for you. There are services like Zen Business that can help you here.

11. Come up with a Good Salon Name

You have reached the exciting (or daunting in some cases) part of your opening a salon checklist.

It’s time to come up with a name for your salon.

There are four questions I recommend you ask yourself as you start brainstorming on good salon names for your business.  

Here is my video with tips when naming a salon or spa business.

A) Does the Salon Name Reflect You and Your Salon?

Your salon’s name should be unique and distinct to you. In order to land on the right name, take 2 minutes to think about how you’d like your salon to be perceived (e.g. classy, creative, or cool) as well as what it is that makes your salon unique. This can be the specific services you offer or the story about why your hair salon exists in the first place.

B) Does the Name Make it Intuitive that it is e.g. a Hair Salon?

You will be using your salon’s name in all your future  salon marketing activities . And in many cases, you only have a split second to communicate who you are.

This is why it’s vital that people immediately understand what type of business you run, or you’ll lose their attention. So if you’re using a more cryptic but cool name, you might want to add “Salon”, “Hair”, or “Nails” to the name so that people understand what you’re about.

C) Can you Find an Available Website Domain Name?

Soon after you’ve locked on your salon name, you’ll need to  create your salon website  and business email addresses. To do that, you need a domain name (e.g. examplesalon.com).

As all businesses are increasingly moving online and the cost of a domain name is low, the number of available domain names are becoming fewer. This is why it’s good to do a check already now to see if the name you want is available or you might want to adapt your name.

The easiest way of doing this is by using  Namecheap . They allow you to search for names and generate more ideas. If it’s busy, you can try with appending your “hair”, “salon”, or your city to the name. When you find something good, you can grab it at a low price with Namecheap to ensure no one else takes it.

D) What will the Name Look Like as a Hair Salon Logo?

Your hair salon name not only needs to sound good. It needs to look good.

You don’t necessarily need to finalize your logo at this stage, but it’s a good idea to at least test what it could look like when you turn it into a logo. As you do this exercise, you might realize that certain letters would be better than others, which could influence your final hair salon name.

It’s really easy to do this test with Canva. Canva is a free design tool that most entrepreneurs use to design things for their businesses. They also offer a free 30-day trial of their paid plan, which gives you access to great logo assets. Thus, I’d suggest you get on the free trial to generate your logo ideas (which you can complete in less than the trial period).

E) Brain Storm Name Ideas

As I receive many questions about name ideas, I’ve put together this enormous salon naming guide. It’s a PDF that contains thousands of name ideas and walks you through a process to help ensure you decide on the right name for your business.

Download the salon naming guide PDF here .

12. Register your Salon Business

It’s time to get your business registered with the state.

How you should register your business is determined by the business structure and location. But you’ll likely need to get a tax ID first as well as required licenses and permits for your salon .

This is not difficult but to make life easy for you, you can use a service like Zen Business to set up the business for you.

You just need to select the desired business structure and fill out a simple questionnaire.

This will save you time that you instead can invest in getting your new salon up and running. 

13. Obtain Required Salon Licences and Permits

There are a few licenses and permits you’ll need when you open a salon. 

We should be thankful that this is the case as it ensures professional knowledge and service quality, which protects salon clients. It also keeps unserious players away from our industry. 

Let’s go over what the common ones are.

What Licenses do I Need to Open a Salon? 

The licenses and permits you need to open a salon are:

• State Cosmetology or Beautician’s License
• Salon Retail Seller Permit
• Salon Business Operation License
• Federal Employer Identification Number (EIN)
• Certificate of Occupancy

On top of the above, you’re (in most states) also required to have salon insurance . I’ll cover what salon insurance you need later on in this guide.  

To learn more about the licenses you’ll need when opening a salon as well as how much you should expect your salon licenses to cost, you can read my complete guide on licences for beauty salons here . 

Build out your Salon Location

Your physical salon is at the heart of your business. In the next step, we’ll review how you find and set up your salon facility.

14. Find a Good Salon Location

Location, location, location.

These are the three most important things for a salon or spa business.

But is the salon location as important as it used to be?

If your salon has a strong presence on social media , you’ll not be as dependent on street traffic as in the past.

Your salon gets visibility and attracts clients online instead. This is why I thought the quote from Jeff Bezos was fitting here.

The three most important things in retail are location, location, location. The three most important things for our consumer business are technology, technology, technology. Jeff Bezos

But even if you build a strong online presence, the location of your salon remains important. 

Where you’re located says a lot about you.

And it needs to be convenient for your target client to get to you.

Salons based in an area with a high amount of people walking or driving by also need to invest less in marketing their salons. They get that for free, thanks to the location. 

But picking the right salon location comes down to much more than street traffic and the convenience for clients to get there.

In fact, in my guide to choosing a salon location , I include a checklist with 21 things that you must consider before signing your lease agreement.

15. Protect Yourself, Your Employees and Your Salon with the Right Salon Insurance

Running a salon comes with risk.

Things will go wrong.

A client could slip and break an ankle. You could accidentally give the wrong advice to a client that causes them injury. One of your staff could get injured. Or you could spill out chemicals during a mobile salon home visit.

These are just some examples of things you’re liable for as a salon owner. And just some reasons why you need to ensure you have the right insurance policies in place for your salon.

It’s natural to look for savings opportunities when starting a salon, but don’t let your insurance be one of them. This could cost you a lot down the line. Some insurance is also required in most states.

Below are common insurances you’ll need, even if it can differ depending on the salon type.

You can combine some policies to help you save money. I explain more about that in my guide to salon insurance that you can read here . 

16. Design Your Salon Layout

First impression.

This is the most important thing when people walk into your salon. The experience people have when they arrive is what will set the standard of what type of salon you are and if your salon is right for them.

Your salon is also the workplace for you and your staff. And it’s not laid out in a way that is practical, you’ll soon go crazy.

So when you create your salon layout, you need to balance the appearance with the practicality.

How exactly to layout your salon will, of course, differ depending on your salon dimensions. You can learn more about the recommended common salon room dimensions in my other article .

I have put together a list of salon decor and design ideas that you can check out for inspiration. For more salon design and decor ideas, I think Pinterest is the best platform for free inspiration. I try to pin nice ideas that I come across on my Pinterest board here .

Your salon lighting also plays a massive role in your salon’s appearance. Check out my article about salon lighting design to learn about lighting fixtures and options for salons.

Below are some specific salon design ideas to have in mind as you layout your salon.

Small Salon Design Ideas

It’s natural that your first salon will be smaller which means optimizing the space will be crucial to you. Here are some small salon design ideas: 

• Make the most of salon daylight. A brighter salon feels more spacious.
• Use a mirrored wall, as this creates a perception of a larger space.
• Consider island styling stations vs. against the wall to create more space

Read my article on small salon design ideas for more inspiration here.

Salon Reception Area Design & Layout

The salon reception and retail area should be the first thing clients see as they walk into the salon. 

You want to keep your reception tidy and clean. This is a working space for making bookings, answering the phone, and in many case and other administrative tasks. But you need to be careful that it doesn’t end up looking messy with paper a stationary lying around.

Don’t hide your retail behind the reception desk. Your client needs to be able to pick up products during check out without the receptionist having to give it to them. You can also make room for promotional display and impulse purchase products at the check out. 

The reception waiting area is a good place to promote your services and products. Make sure your retail is visible from the waiting area and have your salon service menu available to people as they wait.

As a rule of thumb, the amount of chairs you need in your waiting area is about half of the number of styling stations you have. Let’s say you have eight styling stations, in that case it should be sufficient with four chairs.

Get more inspiration for salon reception designs here .

Styling Station Area Layout

This is where your clients will spend the most time. Privacy is important here. Your clients need to feel comfortable. It can be tempting to add in more styling stations to grow revenue but you need to consider the space for your clients and also staff working around the chair.

Allow at least 40 inches between salon chairs to avoid that clients sit on each other. And ensure there’s sufficient working space around stations and behind the chair.

Make sure you have good styling station lighting so that your staff can work effectively and the result on the client looks as good as possible.

Get more ideas for styling station designs here .  

Salon Backwash Area Design

The backwash area is not just a place to wash hair. It’s a place where you provide a client experience. It’s also one of your best opportunities to upsell your client on care treatments and talk about the products you’re using to increase sales of retail.

Try to separate out the backwash area from the busy salon space. This should be a calm and relaxing area. Allow for 32 inches left to right for each shampoo station and 36 inches behind the station for the stylist.

As a rule of thumb, you need a shampoo station for every three styling stations. That is, if you’re a large salon with 15 styling stations, you should be ok with 3 shampoo stations.

17. Order the Salon Equipment and Tools you Need

Salon equipment is a big expense when you’re just starting a new salon. So you want to get this right. The best place to find salon equipment at a good price is on the web. 

Most salon equipment manufacturers are now present on Amazon. And this is also where I’ve found the best prices for salon equipment and accessories. 

Equipment Needed for Hair Salons

Some of the large equipment you need as you start out your salon are:

• Salon chairs
• Styling station
• Back wash unit

These will be your bigger expense items. But on top, there’s a number of other things you’ll need like cutting shears, combs & brushes, styling tools, carts, and service accessories. 

To help you build a check-list of the things you’ll need, I’ve put together a complete list of recommended hair salon equipment here .  

This list includes cost estimates for each items to help you build a budget. I’ve also included recommendations for the best equipment as well as low cost alternatives if you’re just starting out.

Check out my recommended equipment for hair salons

Create Your Salon Brand and Offer

You should now have your salon location and all the requirements to open a salon in place. Awesome!

But what should you offer in the salon? What’s your salon’s value proposition?

This is what we’ll work on next.

18. Create a Salon Logo

Your logo is a core asset of your brand.

You’ll use it everywhere: social media, website, business cards, and more.. 

So you want to get it right. 

There are two ways that you can go about creating your logo. Either you hire a salon marketing agency to do it for you or you do it yourself.

Using a salon marketing agency will cost you a bit more but ensures you get a perfect result. However, you don’t actually need to be a Photoshop guru today to create a professional logo. 

You can use Canva to generate a logo for you in just a few minutes using their online service.

For logo inspiration you can check out my list of salon logo design ideas . In the video below, I’m also walking you through some good principles to consider when designing your logo.

19. Design the Visual Identity of your Salon

Your salon brand is much more than just your logo.

Several visual components make up the look and feel of your brand.

• The colors you use
• The look and feel of images
• The font(s) you use
• The way you write and talk

How you put this together is crucial for your brand. You need to do it in a way that resonates with the target client. If you know your target salon client is old men, you probably would not use bright pink colors and pop music in your salon. You’d probably go for a more traditional, dark color, approach. 

Your salon software should allow you to customize the booking experience and client interactions to fit your brand colors.

Below is an example using Mangomint for online booking where you can see how big the difference is when you customize the booking experience to your brand.

You need to be consistent here.

The colors you choose should be reflected in your salon decor, your social media , and your website .

People should feel that they are in contact with your salon even if they don’t see your name and logo. The visual identity should be enough.

This is how you build a strong connection with your client. 

This is how you build a brand.

Let me tell you more in the video below.

20. Create a Strategic Salon Service Menu

Your service menu is at the core of any salon business.

In fact, what you list on your menu and how you use it can make a massive difference to your business.

An issue I see all too often is that salon owners irrationally discount their services. It’s as if they “want to be nice” to their clients and don’t think they can charge full price.

This is one of the biggest issues in our industry.

It comes with several negative consequences. It’s the start of a negative spiral where salon owners aren’t able to pay competitive wages, which in turn leads to high staff turnover, which in the end can lead to burnout of the salon owner.

This needs to end.

And a simple way to deal with it is by being disciplined with your service menu.

Take the time you need to build your menu and set your prices.

If profitability is important to you (which I hope it is), you will price your services differently depending on who delivers the service. You may even offer different prices depending on if the service is booked at peak hours or not.

To be able to support a more sophisticated price list like this, you’ll need intelligent salon software. Below is what it looks like when I’m setting up for service in Mangomint .

This platform allows for a lot of flexibility when it comes to pricing and managing your services.

Let’s go through some more principles when building a strategic price list.

Designed with your Target Salon Client in Mind

All your services are there to serve your target client. If you’re not sure what she wants, ask her. She might not know what it is that she wants, but as you get to know her better you’ll spot ideas that you can add to further strengthen your offer. 

The Role of Core Services

You’ll have two types of services on your menu. Your core services and your add-on service. 

The core services are your bread and butter. This is the haircut, basic color services or the standard pedicure or manicure. These are the services people would call and book even if they had not seen your menu. 

There’s a natural demand for these services and it’s typically what a first-time client would come in for.

You should avoid discounting these services unless for a special, tactical promotion. But it’s risky. Instead, you should benchmark prices for these services closely with competition in the area. I’m not saying you should have the same price. But if you go higher, you should have a reason why. And the same if you go lower. These are the prices that your client is most aware of when comparing you to other salons. 

For more examples of hair salon core services, check out my separate article with a list of salon services to consider for your hair salon menu .

The Role of Add-on Services

Add-on services are different. As the name suggests, these are additions or upgrades to a client’s visit. It could be a premium version of your core service. Like a balayage color instead of a regular color service. It can also be a care treatment that you add to the appointment.

These are powerful tools to increase the client spend per visit. Some of them will have to be pre-booked, but others can be added on during the visit.

For ideas on add-on hair salon services, check out my salon price list guide here . 

Promoting your Services

There are many ways you can run promotions on your services.

And service promotions can be a very effective tool to drive and grow your business. But you don’t want to do it in a way that undermines your prices. And there’s strategies to enable this. 

To learn more about how you can create salon promotions without undermining your pricing, you can read my salon promotions guide here . 

Keeping your Salon Menu Up-to-Date

Maintaining an up-to-date service menu should be part of your service strategy.

This is how you keep clients for long. You’re their go-to-person for beauty trends and they expect you to bring what’s new to them. By continuously updating your menu you’ll explore new ways of growing your business – you remove what doesn’t work and build on what’s working. 

21. Decide on Your Salon Retail Assortment

Retail sales are a powerful profit driver in your salon revenue model . 

Income from retail is typically split 50/50 between you and the brand where you part adds directly to your profit as the costs associated with retail sales is low. It doesn’t take up extra time from you to sell a product with the service and you only need a small area at your reception with some shelving solution do so. 

But what retail products should you offer?

Let’s go through a few principles to have in mind when designing your salon retail assortment.  

Figure out what your Client Wants

Like with many things in this opening a salon checklist, designing your retail offer starts with understanding your target client.

What type of brands is she looking for? What products complement the service offering you’ve designed for her?

By talking to her you’ll get insight into what she’s looking for. Listen and test things out to see what works. 

Don’t Offer Products that Compete

There’s little point in having many similar products from different brands. Unless you have a very large retail area and your strategy is to be a one-stop-shop for all retail, it should focus on fewer brands that complement each other.

For example, let’s say you’re a hairdresser, then you could have one good base styling brand, one good base care brand, and one electrical styling brand. On top of that, you’d have specialized brands. For example, a haircare brand for hair loss, or a vegan brand if that’s a feature desired by your client.

Research shows that too many options lead to people not making any choice instead ( Psychology Today ). Your sales of one brand will just cannibalize on the other similar brand so you don’t necessarily make more sales but just need a larger retail area and more brands to be trained with your staff.  

Start with a small core brand offering and then expand. Having fewer brands looks more professional, and it’s also easier to upsell a client to a product within the same brand than to recommend products from two different brands.

Working with one product supplier also means you’ll purchase more from them compared to if you were shopping from multiple suppliers. This typically enables you to get more favorable terms with them.

Get the Support Needed to Get your Salon Started

Your new salon is starting to take shape. But you’ll soon realize that you cannot do everything yourself. You’ll need good support systems and partnerships to effectively run your salon business.

In the following section, I’ll cover some of the foundational things you’ll need to get your salon setup.

22. Get a Good Salon Software

The right salon software can be your best friend when starting and running a salon business.

It can drive your business forward through built-in salon marketing features. It gets you in control of your business through the right reporting. It takes care of the mundane tasks you shouldn’t really be wasting your time on – like appointment and inventory management. 

Before you open the doors to your new salon, you need to have a good solution in place. 

Some of the things salon software will help you with are:

• Online Booking
• Client Management
• Automated Text and E-mail Messages
• Inventory Management
• Payroll Management
• Point of Sale Checkout
• Credit Card Payment

I’ve mentioned Mangomint a few times already in this guide. This is the most sophisticated and well designed platform available today.

This thing is beautiful, super intuitive to use for you, your staff, and your clients. It also leverages smart automations that allow you to run your business with much less friction compared to other platforms.

Below is what the Mangomint calendar looks like.

I strongly recommend you give this a try. In fact, it’s free to create an account which you can play around with in a free trial before you need to decide.

Try Mangomint for free here .

If you want to learn how Mangomint compares to other options available, I recommend you go through my list of the best salon software right now .

23. Get a Domain Name and E-Mail Address for your Salon

Few things look as unprofessional as businesses with a Hotmail or Gmail address. Wouldn’t you agree?

When you start your salon you want to make sure you also register a domain name that reflects your business. A domain name is your address on the internet e.g. “yoursalonname.com/.ca/.co.uk”. Registering a domain like that allows you to have it pointing to your website using “www.yoursalonname.com” as well as for your e-mail “ [email protected] ”.

The cost of a domain name is very low. This is why all businesses have them. It also means it can be difficult to find one that is available for your salon. Especially if you want a .com address.

However, given your salon is most likely a local business that only exists in your country, you should register a domain for your specific country. For example, if your salon is based in the UK, you should register a “.co.uk” domain.

Even then it can be difficult to find a name that fits your salon. So you’ll probably need to try a few variations. Let’s say you’re starting a nail salon with the name “Infinity” and you’re based in London UK. You’ll need to try some variations of “Infinity.co.uk”. For example “Inifinitynails.co.uk”, “Inifinitylondon.co.uk”, or “Inifinitynailslondon.co.uk” etc. until you find something that works for you. 

Check what domain names are available using the search bar below.

24. Setup your Salon Website

All salons need a website today.

There’s no getting around that. 

This is the hub of everything you do. This is where all your salon marketing activities points to and this is where clients get to know you before they book their first appointment. 

Your website is often the first impression people have with you.

So you want it to be a good one. 

And, it’s critical that the salon software you choose to go with allow you to integrate online booking on your website. Not all salon software does this, but it forces you to link out to a separate website that they control for clients to book.

Not great for the client experience.

Below is how Mangomint solves this. Independently of your website’s design, the booking widget fades in on top of your website so that people can book, purchase gift cards, etc., without leaving your website.

You have a two options when it comes to creating your salon’s website:

You can hire a salon marketing agency to create the website for you or you can do it yourself using a salon website builder .

It’s not difficult to create a website today. You don’t need to know any coding to do so. So if you’re on a small budget, this is an option today.

Depending on how you decide to go about this, I recommend you go through one of the lists below to capture some ideas and inspiration for your website.

• Top salon website examples
• Best barbershop website examples
• Best spa website examples

25. Setup your Salon’s Social Media

I’m sure it doesn’t come as a surprise to you that social media is important when you’re opening a new salon.

This is where your clients are and this is how you get your new salon visible in front of them. So you need to start setting up your new salons presence on social media immediately. 

But where should you start? 

I understand this can feel overwhelming at first. And you need to be smart about how you use social media for your salon.

It’s very easy to spend a lot of time posting and interacting with others on social media without it really leading to new clients for you. 

This is why I’ve put together a complete guide to social media for salons here .

This is a good place for you to start when your building out your salon’s social media strategy and setting up your account.

26. Order Salon Business Cards and Branded Material

Now that you’re starting to approach your salon opening, it’s time to order some branded material to use when promoting your salon.

Branded material includes Business cards, salon menus, promotional signs, clothing, etc. All this helps to bring to life a consistent picture of your new salon brand.

I have compiled a list of salon business card ideas that I recommend you go through for more inspiration.

Scale Your Salon Business

Awesome! Your salon business is set up.

It’s now time to move from being a new salon into a profitable and growing salon business. The final part of this open a salon checklist is focused on accelerating your salon business growth.

27. Build a Salon Marketing Plan to Accelerate Your Business

Now that you have your salon setup, your focus should shift to growing it.

You’ll need more clients through the doors and you need each client to spend more with you.

The reason I write on this blog is to help salon owners start and grow their businesses. So you’ve certainly landed in the right place. If you haven’t done so already, I suggest you sign up for one of my free courses that’ll give you more ideas on how you can grow your salon business.

But let’s build a plan for how you can grow your salon business.  

How do you Grow a Salon Business?

There are 7 ways you can grow a salon business:

• Grow your salon clientele
• Get your existing clients to visit your salon more frequently
• Sell more services/products per salon visit
• Sell more expensive services/ products during each salon visit
• Reduce your salon operation cost
• Add additional, non-traditional, income streams to your salon business
• Scale up your salon business

You can read my article on how to grow your salon business here . In this article, I break down each driver of salon growth that will help you define how you should measure and track your business to ensure you focus on the right things. 

What Activities can you do to Grow your Salon Business?

Now that you know what you need to focus on an measure to grow your business, what activities should you fill your plan with that will get you there?

Only you can decide what activity is right for you. It all depends on the specific challenges your salon business has. 

To get you started, I’ve curated a list with the most effective salon marketing ideas here . I recommend you go over the list and pick a few that you’ll focus on over the coming months.  

28. Hire Salon Staff and Motivate Your Team

You’ll not be able to make your salon successful without a strong team to support you. 

And to scale your business you’ll need to shift your focus to hiring talented staff to grow the business together with you. 

But you cannot only focus on hiring new salon staff. 

You also need to make sure that the team you have in place enjoy their work and perform their best.

Salon staff turnover is a big concern for many salon owners. The cost of hiring and re-training staff is high. 

There are several strategies you can implement to keep your salon staff motivated .  

In fact, I’ve put together a complete guide for you with 13 ways to motivate salon staff that I strongly recommend you read as you start to grow your team of salon employees. Check out my article  “13 Highly Effective Ways to Motivate Salon Staff”.

29. Review and Adapt your Salon Business Plan

If you’ve followed the opening a salon checklist outlined in this article, you should have a salon business plan in place now. 

But your salon business plan is not a document you create once and never touch again. 

The opposite.

It’s a living document that you should revise regularly to set new goals for your business and incorporate all the learnings you’re making on the way.

Because you’ll learn a lot as you open your salon. 

But it’s easy to lose the big picture when you’re busy dealing with the next issue ahead. You need to make sure you find to work on your business and not only in the business.

Take a step back regularly to look at what is working and not. Double down on what’s working and drop the things that didn’t go as expected.

This is an ongoing process.

And this is the art of running a successful salon business. 

Congratulations! 

You made it to the end of this article. Well done!

I told you at the start that reading this through would be the best investment of time you can make today. I hope I delivered on that. If I did, I would be very grateful if you wanted to share this with friends using the social buttons on this page. 

We’ve covered the list of 29 steps to open a salon. 

It was a long list. But starting a salon business is also a long journey.

You’ve taken an important first step on the journey today. But there’s more to come. Let’s stay connect on the way. This website is packed with resources to help you along the way.

I’m really excited for you now. 

All the best on this new and beautiful adventure!

Common Questions & Answers

How to open a salon with no money.

To open a salon with no money you need to create a detailed salon business plan  in which you minimize up front salon equipment investments, are highly prudent about all salon operation costs, and enable smart loans and investments into your business. Below are specific tactics you can implement to enable a salon start without money.

• Build a one year “salon bootstrap plan”: Start with a low cost salon business model  (booth rental, home salon, or mobile salon) that carries minimal cost but allow you to build up capital and experience to open your ideal salon.
• Borrow salon equipment:  Build a plan for what equipment you need to buy when and borrow tools in the beginning until you’ve built some capital. 
• Get a full view on how much you can self-fund:  Identify any savings accounts, real estate, pension accounts, 401k, that you can use as security for a loan. Also turn to friends and family for capitial support. Self funding gives you full control of your business but you also carry all risk so you need to be careful and seek personal financial advice first.
• Get venture capital from investors: Give a share in your salon business to an investor in return for up front capital.
• Apply for an SBA backed loan:  When banks thinks your business is too risky to lend money, the U.S. Small Business Administration you can agree to guarantee your loan. You can compare SBA loans at Lendio. 

I’ll go into more detail on salon financing options in the finance your salon section of this article but these are some of the common ways to get support if you want to start a salon with no money.

How Much Does it Cost to Open a Beauty Salon?

The cost of opening a beauty salon is around $62’000 for a good but basic setup in your own physical location. Nail salon start up cost is typically lower than for hair salons or barber shops. Cost can be significantly higher ($500’000+) but there are also ways you can start your salon business on a much smaller budget ($2’000).

Common salon startup costs are:

• Buy out of current salon
• Leasehold improvement
• Salon marketing
• Legal and consulting fees

For a full break down on salon startup costs , you can read my article here

Helpful Resources for Starting a Salon Business

These resources can offer valuable information, guidance, and support for small businesses, including those starting various salon businesses. They can help with business planning, marketing, financing, and operations.

U.S. Small Business Administration (SBA)  – The Small Business Administration (SBA) provides many resources for small businesses, such as business planning guides, loan programs, and educational materials.

Small Business Development Centers (SBDCs)  – SBDCs offer free consulting, training, and resources to support entrepreneurs in starting and growing their businesses.

GSA  – The GSA helps small businesses learn more about doing business with the government, government contracting opportunities, and marketing their contracts.

Consumer Financial Protection Bureau  – The Consumer Financial Protection Bureau offers resources for small business owners, including information on small business lending and access to credit. The bureau’s goal is to raise awareness and provide support for small businesses in the lending marketplace.

SCORE — SCORE is a non-profit organization that offers free mentoring services and resources to small business owners. It guides various aspects of starting and running a business, including business planning, marketing, and financial management.

Top Salon Industry Associations for Aspiring Salon Owners

Here are the top organizations you should know, offering support, resources, and networking opportunities to set your salon up for success.

Professional Beauty Association (PBA)

The PBA is a comprehensive resource for beauty professionals. Membership provides many benefits, including scholarship opportunities, liability insurance, health benefits, and discounts on industry events and education. The PBA’s wide-ranging support and advocacy make it a great asset for navigating the complexities of starting and running a successful salon.

Associated Hair Professionals (AHP)

AHP is a tailored resource for hairstylists and barbers. The organization offers liability insurance and business support to help members reach their career goals. With AHP, you’ll gain access to quality education and innovative solutions crucial for your salon’s success and growth.

American Association of Cosmetology Schools (AACS)

While AACS supports cosmetology schools, the information and trends it provides are also invaluable for salon owners. Staying current on the latest teaching methods, industry trends, and regulations is key to keeping your services updated and your salon compliant.

Intercoiffure America/Canada

For an enhanced reputation and networking opportunities, consider joining Intercoiffure America/Canada . This association represents the highest level of the hairdressing industry, offering access to influential figures and the chance to elevate your salon’s standing.

Did you find this post helpful? Share it with your friends!

Related Posts

• What Licenses do I Need to Open a Salon? The Ultimate Guide
• How Much Does Salon Insurance Cost?
• 3 Important Maternity Leave Tips for Salon Owners & Stylists

John Hallberg

Beauty marketing expert and content creator at The Salon Business and Mangomint

Free Hair and Beauty Salon Sample Business Plan PDF

Elon Glucklich

6 min. read

Updated February 7, 2024

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

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

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

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

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

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

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

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

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

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

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

1. Executive Summary

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

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

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

2. Company Summary and Funding Needs

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

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

3. Salon Products and Services

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

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

4. Salon Marketing Plan and Analysis

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

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

5. Salon Management Team

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

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

6. Financial Plan and Forecasts

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

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

7. Appendix

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

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

• Crafting a Successful Salon Business Plan: Key Considerations

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

1. Comprehensive Services Offering

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

2. Pricing Strategy

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

3. Salon Atmosphere

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

4. Staff Training and Expertise

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

5. Digital Presence

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

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

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

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

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

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

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How to write a business plan for your hair salon.

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

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

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

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

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

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

Please, find comprehensive answers to all these questions below.

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

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

Creating a business plan for a hair salon

Will a business plan be beneficial for your hair salon.

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

Developing a robust business plan will enable you to:

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

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

How to outline a business plan for a hair salon?

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

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

There are 5 parts within the business plan.

1. Market Opportunity

The introductory section has been named "Market Opportunity".

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

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

2. Project Presentation

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

Remember to introduce yourself at the end of this section.

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

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

3. Market Research

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

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

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

4. Strategy

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

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

5. Finances

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

How to write the Executive Summary for a hair salon?

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

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

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

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

How to do the market analysis for a hair salon?

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

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

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

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

The key points of the business plan for a hair salon

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

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

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

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

Business model ≠ Business plan

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

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

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

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

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

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

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

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

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

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

How to conduct a competitor analysis for a hair salon?

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

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

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

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

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

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

How to draft a SWOT analysis for a beauty salon?

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

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

The strengths for a hair salon

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

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

The weaknesses for a hair salon

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

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

The opportunities for a hair salon

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

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

The threats for a hair salon

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

How to outline a marketing strategy for a beauty salon?

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

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

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

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

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

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

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

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

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

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

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

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

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• February 27th, 2024
• Business Tips

How to Write a Hair Salon Business Plan

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

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

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

Let’s get started. 

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

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

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

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

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

Let’s go back to our road trip metaphor.  

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

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

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

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

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

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

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

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

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

RELATED ARTICLE:  

Owning a Hair Salon: Your Launch Guide  

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

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

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

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

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

Executive Summary  

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

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

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

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

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

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

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

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

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

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

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

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

Company Description  

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

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

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

For example: 

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

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

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

Market Analysis  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hair Salon Industry Trends for Growing Your Salon Business  

Marketing Strategy  

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

Some common salon marketing methods include: 

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

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

How do you improve a website’s SEO? 

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

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

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

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

How to Design and Roll Out a Beauty Salon Rewards Program  

Management and Organization  

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

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

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

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

Services and Pricing  

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

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

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

Financial Projections  

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

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

Answer these questions first: 

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

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

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

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

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

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

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

Learn How to Manage a Hair Salon Business with SalonBiz  

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How to Create a Hair Salon Business Plan in 8 Steps

Petra Reghian

Opening a salon is exciting, but there’s also a lot of work.

Surprisingly, half of new salons encounter difficulties within their first three years due to a lack of proper planning and operational knowledge.

From establishing booking systems and cancellation policies to managing finances and staff, opening and running a successful salon can be overwhelming. But don’t worry, in this article we’ll guide through the process of creating a business plan that will set your salon up for success.

What is a salon business plan?

A salon business plan is a written document that covers all the details about your business such as the vision, the mission, marketing analysis, financial projections, and more.

It’s like a roadmap of your business that includes sections about your business goals and how you’re going to reach them.

So, the salon business plan can remind you what you wanted to achieve in the first place and where you are heading.

But this doesn’t mean that once written, it cannot be modified.

Your business plan should be kept up to date with all company changes, such as new business goals, new marketing strategies, and so on.

Why do you need a salon business plan?

There are successful businesses that can start and succeed without a business plan, but having these plans can help keep your head in the game and make better decisions. Most importantly, they can help you determine your revenue and labor costs.

When opening a hair salon there are a lot of things to take into consideration, such as equipment needs, administrative staff, and stylists.

So having a business plan can help you forecast your spendings and have an idea of what your profit will be. It can also help you reach your short and long-term goals because you can always take a look in your business plan and see what and how you want to achieve. As you grow your business, you can continue to look at your plan and make sure you are on track.

Business plans can also help you get fundings or help you take out a loan. Banks and investors often want to see a business plan before they provide you with funding. That’s because having a business plan shows that you’ve done your research, know what you want from your business, and you’re less likely to be a risk.

So, let’s see what you need to write in your business plan.

How to create a hair salon business plan

We’ve broken down the entire process of writing the perfect business plan for your salon in 8 simple steps.

1. Draft an executive summary

In the executive summary you should give a basic understanding of what your salon offers because it’s, well, a summary.

So keep the more in depth analysis in the individual sections of your business plan.

Some of the key elements you should include in the summary are:

• A description of your salon, the services it offers, and who will run it
• The salon’s mission, as it drives your business plan and focuses your efforts
• A short marketing analysis to show the need for your business and highlight your competitive advantages
• A summary of your business financials, such as sales and profit margins, and potential funding amounts if you seek investments.

💡 Pro tip: This is the most important section of your plan if you want to get investors or bank fundings because it should persuade them to read the whole business plan. That’s why it would be best to complete it last. You’ll have all the information already written in your plan so it will be much easier to write it.

2. Write your salon description

This business plan section is about who you are and what you plan to do. You can dive into your background and talk about the circumstances that led you wanting to start your salon business in the first place. Then, you can continue to write about why you want to start a hair salon business and what makes your business special.

Some other key components you can mention in this section are:

• Detail your business structure (if you are a sole proprietorship, general partnership, limited partnership, or incorporated company)
• Describe your business model, vision, mission, and value proposition
• Highlight your business objectives, both short and long term.

Writing about your vision, mission, and business objective will define how your business will work because it explains why it exists and what will be the impact on your business once you achieve your goals.

💡 Pro tip: You can use ChatGPT to help you write a catchy salon business description.

3. Perform a marketing analysis

There are almost a million salons in the US—and that only covers hair salons. While many salons can operate similarly and still thrive, you need to identify what will make your salon stand out, what are its unique strengths, and how it compares to others.

So, in this section you should:

• Write a competitive analysis of your market and location. Include who has the biggest market share, proximity to competitors, and your advantages over them.
• Identify your weaknesses and opportunities in the market.
• Create a customer segmentation to know your ideal customers, including details like age range, education level, occupation, and income.

This whole marketing analysis section will influence everything from your pricing strategy, your service offering, or even your location. 

💡 Pro tip: Once you understand the needs of your target clients, you can pinpoint the reasons they might choose your salon over competitors. As you write your salon’s business plan, position your business with these insights from your market research, so that your salon can rise above a crowded market.

4. Detail your services and pricing

Showcase your value by detailing your services and pricing. This will demonstrate how your salon will generate revenue.

• List all the services your salon will offer and the hair tools and products required for these services
• Discuss your product sourcing strategy and identify your vendors. Will you purchase from wholesalers? Outline your inventory management system
• Define your pricing strategy, aligning it with your business goals and market conditions. Analyze the pricing of both lower-cost and high-end salons, considering how your pricing strategy can enhance your competitive advantage.

5. Outline the management and operations

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

• Will you rent out chairs to stylists or will you hire them as employees? 
• What will your business hours look like?
• How will you schedule salon appointments?
• What overhead costs will you have?
• What hair salon tools do you need?
• How will you maintain an organized inventory and restock?
• How will you keep the salon clean?

Include your technology needs, such as client booking software, salon insurance types, and payment processing tools. Look for a booking software that:

• Syncs with your calendar to ensure you never miss an appointment
• Works in multiple locations and with various employees so you can expand your salon with ease
• Offers 24/7 client booking so you won’t miss an opportunity for new business
• Allows for a deposit option to reduce no-show appointments
• Provides convenient rescheduling to enhance the customer experience for your clients.

6. Define a marketing plan

Based on the marketing analysis you previously created where you talked about your competitors, your advantages, and you target customers’ preferences, you should create your salon marketing plan .

Your marketing plan should outline the strategies you will use to attract and retain customers.

These strategies might include:

• Creating a website
• Creating a Google Business Profile for your business
• social media promotions
• loyalty programs
• special promotions.

8. Make a financial plan

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

When writing your business plan, you first need to know how much it costs to open a hair salon and then, write down all financial projections. 

Essentially, this involves estimating how much money you expect to spend and make over the next few years.

The best way to get started with your financial projections is to create an income statement which will break down into income sources and their associated costs.

Here are some areas to cover in your hair salon financial plan :

• Estimate the number of clients you expect to serve and the average price per service.
• Include all costs associated with running your salon, such as utilities, rent, supplies, staff salaries.
• Calculate the revenue needed to cover fixed costs (rent, utilities) and variable costs (supplies, hairdressers wages).
• Estimate the expected profit for each year of operation based on your revenue and expense projections.

How to launch your hair salon business

Once you’ve created your hair salon business plan, it’s time to get to the actual work and use your capital (loans or personal investments) to find the best location for your salon that matches your marketing analysis requirements.

Before getting ready to renovate the new location, research and obtain necessary licenses and permits to legally operate a salon in your area. This should include business licenses and health department approvals.

After you have all the licenses, it’s time to decorate your future salon according to your brand’s colors – consider aesthetics, furniture, equipment and arrange everything so it will facilitate an efficient workflow for your hair stylists.

Then you should hire and train all your hair dressers and staff members and align everything with your salon’s culture and customer service standards.

Based on the marketing plan you created, create that website and social media accounts you wrote about and start putting your marketing strategies into action.

Set your accounts on a booking app like Goldie that will help you with client managing, marketing, online booking, and online payments to be stress-free when clients will keep on coming. You can download it for free from the App Store or Google Play .

Get ready for the launching day by offering introductory promotions, discounts, or special treatments to turn your customers into loyal ones.

Now, all that’s left to do is to provide exceptional customer experiences, and continue to monitor your business to see if everything is working according to your plan or even better.

Get your business plan ready and launch your hair salon

It might seem like a business plan is a lot of work to do before you actually get started, but it will actually help smooth things out for you once you finally decide to launch your hair salon.

And having everything mapped out will minimize surprises, as a well-written business plan helps you anticipate some of the potential challenges.

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How to Write the Perfect Salon Business Plan in 6 Steps

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

No credit card required.

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

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How much does it cost to run a salon .

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

Existing Salon 

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

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

Grand total: $62,000

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

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

Grand total: $89,500

You may also want to budget for the following:

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

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How Profitable Is Owning a Salon?

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

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

6 Steps to Writing a Hair Salon Business Plan

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

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

Here are six steps to creating your salon business plan:

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

Let's dive deeper into each one.

1. Create an Executive Summary

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

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

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

2. Map Out Your Branding Vision

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

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

3. Research Your Industry

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

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

4. Create a Client Acquisition Strategy

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

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

5. Management and Operations

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

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

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

6. Financial Planning

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

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

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

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

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

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How to Write Hair Salon Business Plan

Passionate about hair styling and cutting?

If yes, you might have thought of starting your own hair salon business.

But it takes more than just an artistic talent to give cuts that suit different hair types and styles. It also requires a solid business plan in place to make it thrive, as there are 952,909 hair salons in the US.

Need help getting your plan? Not to worry; we’ll help.

This hair salon business plan will help you get started and guide you every step of the way, from crafting your business idea to evaluating your salon’s financial success.

Ready to begin? Let’s dive right in!

Why you need a business plan for your hair salon

Hair salon business plan is a professional, living document that outlines your business ideas, goals, and strategies to achieve them.

Whether you’re starting a new salon or aiming to expand an existing one, you’ll need a business plan. It serves as a strategic roadmap for your entrepreneurial journey.

Here are several key reasons why having a hair salon business plan is essential:

Clarifies your vision & mission

Once you’ve decided to start or grow your hair salon, writing a business plan helps you think about all the details of your business. It outlines your business concept, vision, mission, and its core values. Also, it enables you and your team to understand your business’s purpose and ensures everyone is aligned.

Attracts investors to raise funding

Investors often request to see your business plan before investing in your business. At that time, a good business plan helps you demonstrate your business strategies, realistic financial forecasts, and potential for success. Also, it shows your idea is viable and convinces them to raise funding.

Helps reach your business goals

A well-thought-out business plan allows you to consider your short-term goals and long-term objectives. It also summarizes the strategies & steps to reach them, as well as how long it will take to achieve those goals. Further, with specific benchmarks and milestones, you can measure progress and keep track of your goals.

Determines your financial needs

A business plan helps you estimate the funding required for your salon. It includes detailed financial projections and clarifies how much money you’ll need to raise and how you’ll use those funds in different areas. This means you can ask for realistic funding needs to grow your business.

Reduces potential risks

While preparing a business plan, you can identify the potential risks and challenges that your salon might face. By knowing these threats earlier, you can develop effective strategies and contingency plans to mitigate them. This ensures your business is safe and improves your chances for success.

Now that you know the importance of having a business plan, let’s explore how to create a successful business plan for your salon.

How to write the perfect hair salon business plan in 8 steps

here is the simple step by step guide on how to write hair salon business plan.

1. Executive Summary

An executive summary is the first and foremost section of a business plan that provides a high-level overview of your hair salon business.

In fact, it might be the only section that potential investors or stakeholders will read and get a better idea of your business, including its concept, core values, objectives, and growth plans.

If your plan summary isn’t interesting or compelling enough, they won’t read it any further. So, ensure you keep this section simple, crisp, yet effective.

While writing an executive summary , consider including the following key elements:

• A quick overview of your salon
• Mission-vision statement

Target market

• Unique product or service offerings
• Marketing strategies
• Financial highlights

Though it is the first section of your salon plan, it’s typically written at the end once all the other sections are drafted. This is so because it summarizes all the most important aspects of your business.

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2. Business description

As you will provide a quick business overview in the executive summary, this section will expand on it and give detailed information about your salon.

So, here, explain your salon concept in detail and give readers a better understanding of your business, including what your hair salon business is all about.

For instance, you may ask yourself a few questions to plan this section:

• Where it’s located & why did you select that place?
• What’s the legal structure (e.g., sole proprietorship, LLC, corporation)?
• When and why did you start the hair salon business?
• Who are the owners or partners?
• What type of hair salon do you operate?
• What business milestones have you achieved till now (if any)?

In addition to that, you may highlight your salon’s short-term goals and long-term objectives that every potential investor or lender needs to know.

3. Market analysis

The market analysis section presents your external business environment. Generally, it involves in-depth research of the specific industry or sector in which your business intends to operate.

This means you’ll need to conduct comprehensive market research and analytical work to start a successful salon venture.

It also helps you get valuable insights into the salon industry, market size & growth potential, target customers, market demand, competitors, and opportunities.

Here are a few essential components that you may include in your market analysis:

Here, you may provide details of the target market you serve or expect to serve. This will help you identify your target customers and create a buyer’s persona, along with the psychographic and demographic details.

Competitive analysis

It’s a very important aspect of market research that helps you identify and analyze all other salon businesses nearby. It will cover direct and indirect competitors, including their strengths & weaknesses, and explain your competitive advantages .

Market trends

As a salon owner, you know that the hair salon industry is dynamic and continuously growing. So, you’ll have to explore the current and emerging trends (technological advancements, adoption of sustainable products, etc.) in the indus try and explain how your business will cope with them.

4. Organization and management

The organization and management section introduces the key personnel responsible for running the salon, including the salon owner, managers, hair stylists, and other staff members.

You may start by describing their roles and responsibilities, educational qualifications, industry experience, and expertise that help you grow your salon.

Then, consider discussing the employee benefits, compensation plans, and business operations, as well as outline the organizational structure, including reporting lines and how decisions will be made.

Furthermore, try to highlight advisory board members (if any) and explain how they can contribute to the salon’s overall success.

If your team is lacking and you’re planning to hire, mention whom you’ll hire and clarify how they will manage day-to-day operations, what type of work experience you’ll need, and how you’ll address training practices.

5. Services and products

As the name suggests, this section illustrates all the different types of services or products your salon will offer to its customers.

For instance, you may include a wide range of services, such as haircuts, styling, coloring, hair treatments, manicures, pedicures, etc. Also, describe each service in detail, along with the pricing plans, techniques used, and expected results.

For easy understanding, you may take the below as a reference to craft your offerings:

Platinum Hair’s Services

1. Haircuts: Classic Haircut

Price: [$40] per session

Description: A timeless haircut tailored to your preferences, ensuring a polished and stylish look.

Specifications: 

• Suitable for: All hair types
• Duration: 45 minutes

2. Coloring Services: Highlights

Price: [$110] per session

Description: Partial or full highlights, to add dimension and brightness to your hair, enhancing its natural beauty.

Specifications:

• Duration: 150 minutes
• Styles Available: Partial, Full, Balayage

If you’re running a hair salon that offers a great selection of products, like, hair care products, skincare items, or beauty accessories), mention them as well.

This will help investors better understand how you plan to satisfy all your customer’s needs & preferences and what value your salon brings to the market.

6. Marketing and sales strategy

Your marketing and sales strategy decides how you plan to draw new customers and retain existing ones for your hair salon.

A well-written sales and marketing plan can help you keep track of the marketing budget and maximize ROI while developing online and offline marketing or external promotional campaigns.

Consider including the below information in this section:

Unique Selling Proposition (USPs)

You may define your unique selling points to distinguish your salon business. For example, consider presenting holistic hair care services, sustainable & environmentally friendly products, and highly skilled stylists.

Online advertising

Using online channels such as social media platforms, email marketing, and professional branding can help you target certain audiences and build trust among them. You may also create visual ads and content to showcase all your offerings.

Partnerships or collaborations

You may partner with local businesses to expand your brand’s visibility and reach a wider audience. This will draw new customers and increase your growth opportunities.

Workshops and events

You may organize workshops or events at your salon and invite the local community to explore your space. Ask them to engage in live demonstrations of hairstyles and treatments. Also, don’t forget to collect their feedback and preferences.

Discounts or rewards

Giving special discounts helps you attract new clients and retain existing ones. So, try to offer discounts to the new consumers or introduce a loyalty program to reward regular clients.

7. Financial projections

A financial plan is the most crucial aspect of the hair salon business plan. It offers a comprehensive overview of your financial projections for the first 3-5 years.

However, the startup financial plan includes several critical statements and reports, such as income statements, cash flow statements, and balance sheets.

For your hair salon financial plan, consider providing detailed financial projections, including sales forecasts, revenue projections , initial startup costs, funding requirements, break-even analysis, or even sensitivity analyses for different scenarios.

This will help you demonstrate the long-term growth and profitability of your salon and allow potential investors or financial backers to make informed decisions.

8. Appendix

In the appendix, you may attach any supporting documents that might complement your business plan.

It includes market research data and surveys, licenses & permits, equipment leases, salon layouts, resumes of executive members, and many more.

In short, you can place additional information or attachments that don’t fit into specific sections, but readers might use them for reference.

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

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

Now that you have a detailed hair salon business plan outline, it’s much easier to kickstart your plan writing process.

However, preparing a comprehensive business plan from scratch can be an intimidating and daunting task. But not to worry; Upmetrics could be a great companion here!

It’s a modern business plan software that enables new entrepreneurs and small business owners to create investment-ready plans quickly and efficiently.

From easy-to-follow guides and 400+ business plan examples to financial forecasting software, Upmetrics offers valuable resources to streamline the entire business planning process.

So, wait no longer; start preparing your plan!

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Frequently asked questions, what financial projections are most important for a new salon.

The following are the most important financial projections for a new salon:

• Sales and revenue forecasts
• Profit and loss statement
• Cash flow projections
• Balance sheet
• Initial funding needs
• Break-even analysis
• Loan repayment plan

How often should a hair salon business plan be updated?

It’s necessary to review and update your hair salon business plan regularly, at least once a year, or more often whenever there are significant changes in the business environment or market.

What are the essential elements of a salon business plan?

While writing a comprehensive business plan for your salon, consider including the following essential elements:

• Executive summary
• Business overview
• Market analysis
• Products and service offerings
• Marketing and sales strategy
• Management team
• Operations plan
• Financial projections

About the Author

Upmetrics Team

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

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BUSINESS STRATEGIES

How to create a hair salon business plan

• Nirit Braun
• Sep 12, 2023

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

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

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

Benefits of a hair salon business plan

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

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

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

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

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

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

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

Read more about how to start a service business .

6 steps to creating a hair salon business plan

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

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

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

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

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

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

Example of an executive summary for a hair salon business

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

02. Business and domain names

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

For more inspiration:

Nail business names

Beauty business name ideas

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

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

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

03. Market analysis and research

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

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

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

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

04. Operations plan

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

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

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

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

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

Operation plans example:

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

05. Marketing and advertising plan

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

Example of a marketing plan

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

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

06. Financial plan

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

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

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

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

Example of a financial plan

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

Got another business idea in mind?

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

How to start a nail business

How to start an online business

How to start a consulting business

How to start a fitness business

How to start a fitness clothing line

How to start a makeup line

How to start a candle business

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How to start an online boutique

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How to start a food prep business

How to start a vending machine business

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How to start a virtual assistant business

How to start a homecare business

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How to Start a Hair Salon Business Now in 2022 (Comprehensive Guide)

Starting a Hair Salon Business Today

Starting a hair salon business is both exciting and scary. It’s exciting to finally have the opportunity to pursue your dream of owning a hair salon where you can share your knowledge and skills with others. At the same time, it can be daunting when faced with all of the decisions that need to be made to start your own salon in order for your hair salon business to thrive.

This article will provide you with a comprehensive guide on how to start a hair salon business from creating a plan, establishing a budget, financing your new venture, deciding how you want structure your company, getting appropriate insurance coverage, marketing and advertising. We explain how to find success as an owner/operator or partner in the best way possible!

Start a Hair Salon Business Plan

 what should a hair salon business plan include.

This is one of the first questions you will need to ask yourself as you begin this process. A typical hair salon business plan includes how much money your new salon needs, how that money will be spent and how it can be acquired.

You may want to include information about how many employees are needed for day-to-day operations, what supplies are necessary, how long it would take for profits to break even or cash flow positive and any other important aspects related to starting a successful hair salon business.

One helpful thing when creating your own hair salon business plan is going through a sample template so that you know what key points must be included. There are also websites available which allow users access to complete hair salon business plan templates.

Why do You Need a Beauty Salon Business Plan?

A hair salon business plan is a roadmap that guides how you will start, run and grow your new company. A well-made plan can help you to avoid common pitfalls of starting a hair salon like spending too much money or hiring the wrong people for key positions in your organization.

Make Sure You Have the Necessary Funds To Start a Hair Salon Business

This may seem obvious but it’s important when thinking about how to start a hair salon. The general rule is that whatever amount of funds need to be raised should equal around six months worth of income from projected sales figures. What this means is if your projections show an average monthly revenue stream of $20,000 then you’ll want at least $120,000 deposited into savings before launching

Establish a Hair Salon Business Start-up Budget

 how to create a hair salon budget.

The first step is determining how much capital you need to fund the opening phase of your hair salon business. This includes rental space; professional equipment such as styling stations, chairs or sinks; consumables like towels or shampoo; and the initial outlay for inventory.

Once you have determined how much capital is needed, determine how it can best be financed. This includes using savings or other assets that could generate income (such as an investment account), crowdfunding through Kiva lenders, credit cards with favorable interest rates, debt financing such as small business loans from a bank or peer-to-peer loan sites like Lending Club or Prosper Marketplace.

Create an outline of how much revenue is predicted for each month during the first year in operation and how those monthly projections would compare to initial expenditures needed over that same time period (i.e., rent/mortgage payment). The difference between revenues and expenditures should show a profit at the end of one year.

Find a way to Finance your Hair Salon

To be successful in business, you need to be prepared and informed with your loan options.  Here are some of your options for financing your startup costs for opening a hair salon business:

• SBA or Small Business Administration Financing for Hair Salons
• You Can Ask Friends and Family to Invest in Your Hair Salon
• Use Credit Cards for Short Term Financial Help – Credit cards can help you when you are in a financial crisis. They provide cash quickly and easily. But, you must pay the credit card back as soon as you get more money to make this option work best.
• Get a bank business loan for your hair salon.

What if you Have No Money?

How to open a hair salon with no money.

To open a salon on the cheap, one should create a detailed business plan before making any investments into equipment and take precautions against losing money through operating expenses.

One of the most important factors to consider is how much you’re willing to spend on startup costs. This includes borrowing salon equipment, self-funding, getting venture capital from investors, or applying for an SBA backed loan.

Establish Credit for Your Hair Salon Business

Open a business bank account & credit card.

When you establish your credit, it will help your hair salon business to get approved for a loan or line of credit. You can also apply for trade lines with suppliers and other vendors because they may trust how much money is going into the company!

As a hair salon owner, it is possible to get credit for your business.

First, you will need to determine how much you want to borrow. When you establish your credit with the bank or lender, they will give you an idea of how much capital is needed for your company. Have collateral ready! Lenders may require a personal guarantee to offer credit.

Find a Good Hair Salon Location

Choosing the right location for your hair salon will be a huge factor in how successful it is. Consider where most of your clients live and work to determine how convenient it would be for them to visit you on a regular basis. If they are across town from you, they probably won’t patronize your business regularly.

Design Your Hair Salon Layout

In order to make your hair salon layout as efficient and profitable as possible, you’ll need to take into account how the space will be used. For example:

• Will employees serve customers from behind a counter or at walk up stations?
• Is there room for an island station in between shampoo chairs? Should this area double as a makeup station?
• How should shampoo chairs be arranged to maximize efficiency and how many stations will you need in order to accommodate the number of stylists on staff?
• Will there be room for an area where hair products are displayed or sold, such as at a salon reception desk or counter near the front entrance? Can it double as a space for styling or at-home hair care demonstrations?

You’ll also need to consider how the salon layout will affect your ability to maintain an organized and efficient work flow.  For example:

• Will you be able to clean up quickly after shampooing clients in one area, while stylists are still working on customers in another area?
• Will you be able to use one station for drying and styling while other stations are being used for hair washing or cutting, in order to avoid bottlenecks during peak hours? Is there room near the front entrance of your salon where stylists can set up their own chair so they don’t have to walk too far to get back to the shampoo section of your salon layout?
• Will there be enough room for an office, storage space and a changing area near the front entrance of your hair salon business or in another out-of-the way location?
• Can you find stylists who will agree on how best to lay out their stations so they can work as efficiently and profitably as possible?

Finally, how the hair salon layout is designed will be different for salons that offer only services such as haircuts, shampooing and blow-outs versus those with a full range of beauty or hair care products.  For example:

• Will you have enough room so your stylists can offer both hair care services and sell products?
• Do you have room near each shampoo station so that employees can also sell haircare product samples, such as a range of shampoos and conditioners from different brands or a few hair products such as styling gels, hairsprays and mousse?
• Should your salon layout include a space where customers can view the latest makeup trends or colors on mannequins before having their makeover right there in the salon chair, for example by mounting up to four tables next to each other so that two stylists can work on customers at the same time?

These are all the things you need to think about and questions to ask when designing your hair salon layout.

Design Ideas for Small Hair Salons

Often, if you are just starting out, you will have a smaller sized hair salon that you will eventually grow. Here are some tips on how to best design your space for a smaller hair salon.

 Hair Salon Reception Area Design & Layout

What is the purpose of your hair salon reception area? Is it to provide a waiting area for clients, or an opportunity for customers who may not be ready to get their haircut at that moment to browse through magazines and enjoy some coffee? Whatever you choose, make sure there are clear indications

 Hair Styling Station Area Layout

What do you need in a hair styling station for your stylists to be as productive and happy as possible? The answer is not so simple, but there are some common features found among successful salon owners.  Study your competitors and implement your own solution to the styling station area layout.

 Hair Salon Backwash Area Design

What is the most important thing for your hair salon backwash area? Is it how many shampoo bowls you have, or how relaxing and serene of an environment it is?  You must make sure to include enough sinks at various heights and in different shapes and sizes.

Hair Salon Equipment and Tools

You will need equipment like chairs, counters and mirrors.   You’ll also need things like hair dryers, shampoo bowls and towel racks.

By far the most expensive equipment you’ll need is going to be your furniture and fixtures.

Look for used equipment or find discounted pricing by shopping at a beauty supply store rather than buying new.

If you are willing to search locally on Craigslist or ask friends who live in other cities, you may be able to find some nicer salon furniture that is cheaper because it’s not in demand.

Protect Your Equipment & Tools with the Proper Insurance

Protect your equipment and tools with the proper lability insurance. When you buy or rent salon furniture, be sure to get a policy that includes all of your business’ furnishings so you can replace them quickly if necessary.

You should also cover expensive hair dryers and other electrical appliances because they are prone to malfunctioning due to how much they are used.

This would be a good time to research general liability insurance options for your equipment and tools.

Decide on your Hair Salon’s Legal Business Structure

If you start a new business, you have to decide which type of company to make. You can choose from five types of business structures: Sole Proprietorship, Partnership, Limited Liability Company, S Corporation, or C Corporation.

An  LLC business legal structure  setup for example protects you from being sued personally. It is flexible and offers more flexibility for taxes.

No matter what business structure you choose, check out these different business formation services that can help you put your legal business structure in place.

Register Your New Hair Salon Business

 obtain required hair salon business licenses and permits.

You will also need to register your new hair salon business with the state. Check out how you can do this online, via mail, or in person.

In some states (such as California), it is necessary to obtain a separate permit for each different kind of service that you offer at your hair salon. If you want to open a hair salon in California, for example, you will need a cosmetology license.

In states like New York, the requirements are more straightforward. The state requires a license for hairstylists and barbers (as well as hair salon owners).

Set up business accounting for your Hair Salon Business

Accounting for your hair salon business includes keeping records of your customer invoices and ensuring that you are charging customers fairly.

You must ensure that invoices are accurate and to the penny. This is not an opportunity for overcharging or rounding up to a higher price than what was actually charged. It’s also important to ensure validity of any sales tax deductions or how to handle the payment of taxes.

Managing cash in accordance with accounting principles

Ensuring that your business’s bank account is properly set up and reconciled on a regular basis. Bank reconciliations are important for any company, but hair salon businesses need them more often because they deal in such high volumes of cash transactions.

Protect yourself and your employees with the right insurance

Not only do you need to protect your business and tools with the right insurance but you need to protect yourself and your employees.

Get educated on what types of insurance policies you will need as far as hair salon insurance goes.  There’s general liability insurance, professional liability insurance , product liability insurance and many other types of commercial insurances to consider.

Don’t forget how important it is to have worker’s compensation insurance on your employees.  Hire a commercial insurance specialist who can help you get the right coverage for your hair salon and provide peace of mind that everything will be protected should something go wrong.

Day to Day Operations of Your Hair Salon

 get a good salon software.

Trial Versum Salon Software for Free

Versum Salon Software is an easy-to-use, powerful salon management software for hair salons. It lets you manage your appointment schedule and online booking, send out newsletters to clients, track inventory, create invoices and purchase orders with ease.

There’s also Salon Iris software to check out. Salon Iris is another choice for hair salon software that can be used. It’s web-based so you don’t need to download it and store it locally.

A third choice to investigate is Booker’s hair salon software  which takes care of your booking, billing, payment, management. It has a user-friendly interface for you and your clients.

Marketing & Advertising

Now it’s time to create your salon marketing plan for your salon brand and offer something that is not offered by your competitors.  Differentiate yourself from the pack.

Start with a catchy slogan or catchphrase for your salon and then build on it to come up with an effective name, logo design, advertising taglines and other marketing materials.

Be thoughtful how you will advertise your new hair salon business – where to advertise, how to create an online marketing strategy and how you will utilize social media.

Consider creating a video that highlights the services your hair salon business offers. It might be beneficial to use this in ads as well as on Youtube or other video platforms.

 Come up with a Good Name for your New Hair Salon

You’ll want a name that’s catchy, original and memorable.

Think about how your salon will be different from what is already out there in the marketplace. Use words to differentiate yourself–make it unique!

Some hair salons might use their owner’s names as part of their brand: Sylvia’s Salon. Others might choose to have a theme–like Hair by the Sea.

Consider how your name will look on signs and how it sounds in people’s mouths!

Don’t use words or names that are trademarked, copyrighted or subject to any other legal claim.

If you’re not original enough to come up with a good salon name, there are plenty of naming services that will help you out. Peruse over 2700 salon names here: https://thesalonbusiness.com/salon-names/

 Find an Available Website Domain Name

Find an available website domain name for your hair salon business.  The best way to approach finding one that is appropriate is to brainstorm ideas and create possible lists of names, then go through them alphabetically or search the listings in order to narrow down your choices.

After you have selected a domain name, go to Godaddy or NameCheap to register your domain.

Have more than one option available in case your first choice is already taken.

 Create Your Hair Salon Logo

A good Logo is one way your customers identify with your business, and it will be a mark of your own personal style.

The logo can be in any shape. There are many online programs that enable you to create logos for free or at minimal cost. One such program is called Logomakr.

Logomakr offers a free and simple interface to create logos using shapes, fonts and colors

Your hair salon will have its own unique identity by choosing which font or shape you want for your business name. It’s wise to keep it simple and consistent to help with brand recognition.

 Create a Hair Salon Service Menu

Hair salon service menu is a list of services you provide to your customers.

A hair salon service includes haircut, blow dry or style and other services such as color/highlights, perm and retail products like shampoos, conditioners etc.

Create the hair salon service menu by listing all the available options for your clients to choose from.

Include the prices in your hair salon service menu as well, to avoid misunderstanding and confusion with customers.

Pricing Your Services

Wondering what your hair salon services prices should be?  Well a typical cut can cost anywhere from $25-$75.  A typical color can cost from $150 to over $600.

The more expensive the service, the higher the price tag should be.  However, hair salon prices depend on how much experience you have and how long you want your customer to wait for their appointment (cut versus style).

Something else to think about with pricing is should you have different pricing for walk in customers vs. people who book appointments ahead of time? Why or why not?

 Define who your Ideal Salon Client Is

Take a look at the qualities of good clients before opening your hair salon.

One of the most important decisions you make as an owner is who will be allowed in your salon. When selecting customers, think about what type of clientele you want to attract and whether it meshes with the makeup of your area.

Choosing which clientele you cater to will influence your business model.

Being aware of your target market is a vital consideration when determining the overall salon vision.

Study Your Competition

Make sure to research how other salons are marketing themselves and what their prices are so you can stand out.

If you find a salon that does something really well, go to their social media and see how they market themselves.

It’s not about trying to change your pricing or copying how other salons do things – it is about finding what sets you apart from the rest of the pack while still appealing to clients.

 Develop a Hair Salon Website

A hair salon website is one of the most important marketing tools for a new business. It’s how potential customers will find you online and get to know your salon before they ever walk through the door in person.

 Create an Email List

A hair salon website should include a “newsletter” or “email list sign-up” form in order to build your email subscriber list. This is how you will stay connected with potential and current customers, sharing new promotions, products, services and more directly to their inboxes each time it’s updated!

 Setup your Hair Salon’s Social Media Accounts

Don’t forget what the kids are using these days! You should also get on social media platforms for your hair salon on Facebook, Twitter and Instagram to get instant customer feedback.

Use this information to improve how you communicate with them through social networking channels (what they want from your business) as well as other marketing strategies like SEO or search engine optimization.

 Get Business Cards and Printed Marketing Material for your Hair Salon

Designate marketing materials like business cards, flyers and brochures with your logo so that you can give them to people who come in contact with your business. This is how they’ll remember how great it was when they visited your salon!

Grow and Scale Your Hair Salon

Hair Salons grow when they are getting more customers, selling more services per visit, adding other services, and making money in other ways. Each of these things can be achieved through the right strategy and focus.

Grow the business by hiring more stylists, giving them shift work or share scheduling so hair stylists have time to grow their skills. Invest in training for current staff as well – how new products are used, how social media is beneficial etc.

Frequently Asked Questions

What licenses do i need to open a salon.

A hair salon business needs to have a cosmetologist’s license. You can contact your Department of Professions and Occupations for more information on how to get this done, what qualifications you need, and how long it will take.

How much investment is required to open a hair salon?

The minimum capital needed varies depending on how much equipment or inventory you will need. You should also consider how much money you will spend on start up costs such as rent, advertisements and liability insurance.

Starting up a salon business can take place in many ways. Some stylists buy out their current salon, while others start from the ground-up by renting space and buying equipment. One of the most important steps is to find necessary licenses for your state and make sure your salon is properly insured.

Be sure to include marketing, advertising and social media into your budget because they are crucial aspects of any modern business.

 Is a hair salon a profitable business?

A hair salon should be a highly profitable business because the overhead costs are usually low and you can get away with higher margins for your products. In order to make sure that this is true, create a financial forecast early on in the process. This will help you understand how much money needs to come into your business every day so that it remains profitable.

 How do I get funding to open a hair salon?

One of the best ways to get funding for your hair salon business is through a traditional bank loan.

 How much money do hair salon owners make?

The average hair salon owner can expect to make a median income of $44,000 per year. The top 25% of salon owners earn more than $68,600 annually, some making upwards of $120,000 and the bottom 25% earns less than $30,400 each year.

 Is buying a hair salon a good investment?

Hair salon businesses can be a good choice for those who want to make money on the side and are willing to work hard. Prices of hair salons vary greatly, so how much you pay will depend on where you live in relation to potential competition.

With all the information you’ve learned today, it is time to take action. The first step in any successful business venture is research and planning. Research this site for other resources that will help you start up your own hair salon business.

From figuring out how much money you need, to what equipment and tools are needed, we have covered everything here for a budding entrepreneur like yourself who wants to open their own hair salon – even with no money or credit.

We’ve also included tips on finding the perfect location near potential customers and designing ideas for small salons too. If you’re new at starting businesses then don’t worry because we have articles about legal structures of different types of businesses from a sole proprietorship (where one person owns the company) to S-corporations and how they affect your taxes.

Now it’s time to take more action and read the additional resources available on our site which can help guide you in different step along the way of opening your very own business.

Chris is a busy mom of two, who loves to tinker with computers and read in her free time. Her knowledge of what it takes to start up a business especially businesses that operate on the internet has helped many people from around the world. Chris often shares her experience as an online entrepreneur and business coach, speaking at events all over about how she created multiple successful businesses and profitable websites. She also offers advice on how people can build their own business website or blog for very little money, while still maintaining quality content.

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Hair salon business plan: a complete guide

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

Table of contents

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

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

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

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

Step 1: Define your hair salon services

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

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

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

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

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

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

Decide if you will hire employees.

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

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

Take a peak at competitor salons.

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

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

Keep up with industry trends.

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

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

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

Why Appointible?

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

Step 2: Create a detailed financial plan

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

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

A: Calculate your beauty salon budget

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

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

For courses and certifications

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

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

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

For a Hair salon business license

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

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

For Utilities and rent

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

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

For Hair salon equipment and supplies

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

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

For marketing efforts

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

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

For Hiring hair stylists

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

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

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

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

B: Calculate your rates and prices

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

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

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

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

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

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

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

Step 3: Build your brand and target market

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

Define a good mission statement.

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

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

What do you want to achieve with your salon?

What values do you want to communicate to your customers?

What makes your salon unique?

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

Define your hair salon’s ideal clients.

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

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

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

Define your hair salon’s name.

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

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

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

Step 4: Pick your salon location

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

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

Understand the local market and competition.

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

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

Pick a location with your target clients in mind.

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

Align with your brand.

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

Choose the right salon size.

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

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

Step 5: Craft a marketing plan for your hair salon

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

Share your work online.

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

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

Continuously launch new promos.

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

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

Build a text message marketing routine.

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

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

Step 6: Pick a dedicated booking system

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

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

You will receive appointments 24/7

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

You will boost your marketing strategy.

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

You will reduce the admin workload

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

You will seamlessly manage your staff.

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

An appointment scheduling software for salons looking to grow in 2023

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

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

Step 7: Your salon’s growth

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

Horizontal salon growth

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

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

Vertical salon growth

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

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

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

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

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Hair Salon Business Plan Template & PDF Example

• July 22, 2024
• Business Plan

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

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

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

Our hair salon business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the salon’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your hair salon’s business concept, market analysis , management, and financial strategy.
• Salon & Location : Describes the salon’s design, amenities, and why its location is appealing to potential clients.
• Treatments & Pricing : Lists the services provided by your hair salon, including treatments and pricing structure.
• Key Stats : Shares industry size , growth trends, and relevant statistics for the hair salon market.
• Key Trends : Highlights recent trends affecting the hair and beauty sector.
• Key Competitors : Analyzes main competitors nearby and how your salon differs from them.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management : Information on who manages the hair salon and their roles.
• Financial Plan : Projects the salon’s 5-year financial performance, including revenue, profits, and expected expenses.

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Hair Salon Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

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

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Executive Summary

The Executive Summary introduces your hair salon’s business plan, offering a concise overview of your salon and its services. It should detail your market positioning, the range of hair care and styling services you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your hair salon will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your salon’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the salon’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your salon’s financial plan.

Hair Salon Business Plan Executive Summary Example

Business Overview

A concise overview is pivotal, introducing essential details like the salon’s name, location, and a snapshot of its core services.

These details set the stage for your hair salon, framing its unique characteristics. A unique selling proposition (USP) distinguishes your salon. Whether it’s specialized expertise in hair coloring techniques, a focus on trendsetting styles, or exceptional client service, highlight this USP in your executive summary to showcase your salon’s distinctive value proposition.

Example: “GlamStrands Hair Studio,” strategically positioned in the heart of Trendy City Center, occupies a spacious 2,500 square feet area on Style Avenue. We specialize in a wide spectrum of hair services, including precision haircuts, coloring, styling, extensions, and bespoke event updos. Our USP lies in expertly curated trends and a focus on personalized consultations, ensuring tailor-made hair experiences for every client.

Market Overview

Understanding market dynamics and your position within them is crucial. This section should underscore the potential of the local haircare and styling market, supported by relevant data such as market value and growth rates. Discussing trends, such as the growing demand for innovative coloring techniques or customizable styling services, illuminates your salon’s positioning within the evolving landscape.

Additionally, it highlights the competitive landscape. Identify key competitors and elucidate how your salon stands out amidst the competition. Whether through specialized skills, cutting-edge styling equipment, or exceptional client satisfaction, emphasize how your salon differentiates itself.

Example: In the local haircare and styling market of Trendy City Center, valued at $4 million annually with an 8% growth rate, GlamStrands Hair Studio leads with an emphasis on bespoke styling and a comprehensive range of services. Amidst competition, our commitment to personalized client experiences positions us as the preferred choice for clients seeking expert haircare and trendsetting styles.

Management Team

Highlight the expertise and background of your management team, showcasing their capabilities in driving salon success.

This could include your salon director’s extensive experience in salon management or your marketing lead’s proficiency in brand promotion. Demonstrating the team’s competency builds credibility and assures potential investors and partners of your salon’s potential for success.

Example: At GlamStrands Hair Studio, Nathan Smith, with over a decade of expertise in haircare and salon management, leads operations. Supported by a team of skilled hairstylists and a marketing director well-versed in client relationship management, the salon maintains a focus on delivering superior client care and innovative styling experiences.

Financial Plan

Provide an overview of your financial goals and projections, offering insights into revenue targets, profit margins, and anticipated growth trajectories.

Example: GlamStrands Hair Studio aims for a projected revenue of $1.5 million annually by 2027, targeting a 17% EBITDA profit margin. Investment in cutting-edge hairstyling equipment and a strong focus on superior client care, complemented by innovative marketing strategies, drive anticipated growth and profitability within the local market.

For a Hair Salon, the Business Overview section can be concisely divided into 2 main slides:

Salon & Location

Briefly describe the salon’s physical environment, emphasizing its design, comfort, and the overall atmosphere that welcomes clients. Mention the salon’s location, highlighting its accessibility and the convenience it offers to clients, such as proximity to shopping centers or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Treatments & Pricing

Detail the range of hair treatments and services offered, from basic cuts and styling to specialized treatments like coloring, extensions, or keratin smoothing. Outline your pricing strategy , ensuring it reflects the quality of services provided and matches the market you’re targeting. Highlight any packages, membership deals, or loyalty programs that provide added value to your clients, encouraging repeat business and customer loyalty.

Industry Size & Growth

In the Market Overview of your hair salon business plan, start by examining the size of the hair care industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in personalized hair care services, organic and sustainable products, and innovative styling techniques. For example, highlight the demand for services that cater to specific hair types and concerns, alongside the rising popularity of eco-friendly salons.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your hair salon in the market and its key competitors; it’s also a fundamental component of your business plan. This analysis helps in identifying your salon’s unique selling points, essential for differentiating your business in a  competitive  market.

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

Identifying your competitors in the Hair Salon Industry

Begin by mapping out local hair salons, stylists, and beauty centers in your vicinity. Different types of competitors exist in the hair care industry, ranging from traditional salons to specialized boutiques and freelance stylists. Explore salons offering similar services, including haircutting, coloring, styling, and specialized treatments.

Utilize digital platforms such as Google Maps and business directories to gain a geographical perspective of competitor locations. Additionally, customer review platforms like Yelp or specialized salon booking apps can provide invaluable insights into competitors’  strengths and weaknesses  based on customer feedback.

Hair Salon Competitors’ Strategies

To conduct a thorough analysis, consider the following key aspects:

• Service Offerings:  Assess the range of services offered by competitors. Some salons may focus on specific services like keratin treatments, extensions, or eco-friendly hair care, catering to niche markets and customer preferences.
• Stylist Expertise:  Evaluate the expertise and specialization of hairstylists. A salon renowned for its experienced colorists might appeal to a different clientele compared to a salon with stylists known for avant-garde cuts and styles.
• Pricing Structure:  Compare pricing models with competitors. Analyze whether your salon’s pricing aligns with budget-friendly options, mid-range competitors, or premium salons offering luxury services.
• Marketing Strategies :  Investigate how competitors market their services. Some salons might leverage social media influencers or run targeted digital advertising, while others rely on referral programs or partnerships with local businesses for promotion.
• Client Experience:  Consider the overall customer experience. For instance, a salon might differentiate itself by offering personalized consultations, a luxurious ambiance, or additional complimentary services like scalp massages or beverage offerings.
• Technological Integration:  Observe if competitors utilize technology for convenience. Some salons might excel in online booking systems, virtual consultations, or implementing cutting-edge hair care technology.

What’s Your Salon’s Unique Value Proposition?

Reflect on what sets your salon apart. It could be specialized services like organic hair treatments, a focus on sustainable practices, or a signature line of hair care products exclusively available at your salon.

Identify gaps in the market through client feedback and industry trends. For instance, rising demand for inclusive services for diverse hair textures or the integration of wellness elements like meditation or aromatherapy into salon experiences could represent untapped opportunities.

Consider your salon’s location and its impact on services and ambiance. A salon situated in a bustling urban area might emphasize efficiency and modernity, while a salon in a suburban locale might prioritize a relaxed, family-friendly atmosphere.

First, conduct a SWOT analysis for the hair salon, highlighting Strengths (such as expert stylists and a wide array of services), Weaknesses (including high operational costs or strong competition), Opportunities (for example, an increasing trend in personal grooming and beauty care), and Threats (such as economic downturns that may decrease consumer spending on luxury services).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional discounts, engaging social media presence, and community involvement.

Marketing Channels

Choosing suitable marketing channels is crucial to engaging and attracting potential clients effectively.

Digital Marketing

In today’s digital era, a robust online presence is indispensable for salon success.

• Social Media Presence:  Utilize platforms such as Instagram, Facebook, and TikTok to showcase an array of stunning hairstyles created at your salon. 
• Email Marketing:  Develop an email marketing strategy to maintain regular communication with your clients. 
• Website and SEO:  Invest in a professional website that serves as a digital storefront for your salon. Ensure that it includes a gallery showcasing your salon’s portfolio, client testimonials, stylist profiles, a blog section featuring hairstyling tips and advice, and an easy-to-use appointment booking system. 

Local Advertising

• Print Media and Flyers:  Design eye-catching flyers and brochures that highlight your salon’s services, promotions, and contact information. Distribute these materials in high-traffic areas such as local cafes, gyms, shopping malls, and community centers.
• Community Engagement:  Establish a strong presence in your local community by participating in various events and initiatives. Sponsor or participate in local festivals, fairs, or charity events, offering hairstyling demonstrations, free consultations, or vouchers for discounted salon services. 
• Influencer Collaborations:  Partner with local influencers or beauty bloggers whose style aligns with your salon’s brand ethos. Invite them for a salon visit to experience your services firsthand and share their positive experiences with their followers on social media platforms.
• Cross-Promotions:  Forge strategic alliances with complementary businesses such as beauty product retailers, fashion boutiques, or makeup artists. 

Promotional Activities

Engage potential clients through compelling offers and loyalty programs.

• Seasonal Offers : Create seasonal promotions tailored to specific times of the year, such as ‘Holiday Hairstyle Makeover’ or ‘Summer Hair Color Refresh’. 
• Loyalty Rewards:  Launch a tiered loyalty program that rewards frequent visitors with exclusive perks, discounts, or special treatment. 
• Referral Incentives:  Encourage your satisfied clients to refer friends, family, or colleagues to your salon by offering them incentives. 

Sales Channels

Implementing effective sales strategies is vital for revenue growth and client satisfaction.

In-Salon Upselling

• Maximize Revenue:  Train your stylists to provide personalized recommendations for additional services or hair treatments to enhance each client’s salon experience. 
• Retail Products:  Display a curated selection of high-quality haircare products, styling tools, and accessories prominently within your salon. 
• Package Deals:  Offer bundled services or package deals to incentivize clients to try multiple services or treatments at a reduced rate. For instance, create packages like ‘Cut & Color Combo’ or ‘Bridal Hairstyling Package’ that combine various services into one attractive offer.

Online Booking and Sales

• Seamless Booking Experience:  Enhance convenience for your clients by providing an intuitive and user-friendly online booking system integrated into your salon’s website and social media platforms.
• E-commerce Integration:  Extend your salon’s offerings beyond the physical space by retailing haircare products, accessories, or gift cards through your website.
• Virtual Consultations:  Introduce virtual consultations where clients can receive personalized hairstyling advice, recommendations, or tips from their stylists via video calls. 

Membership and Loyalty Programs

Encourage repeat business and foster long-term relationships with your clients.

Membership Options

• Subscription-Based Plans : Design subscription-based membership programs that offer clients regular services at a discounted rate. For instance, offer a monthly membership including services like haircuts, styling, or treatments at a reduced price to encourage recurring visits.
• Exclusive Benefits:  Provide members with exclusive privileges such as priority booking, access to premium services, or special events. 
• Personalized Rewards:  Analyze client spending patterns and preferences to offer personalized rewards or incentives that align with their interests or previous purchases. 

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the hair salon’s opening, marketing efforts, client base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

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

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

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

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

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

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

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Creating a Successful Salon Business Plan: A Step-by-Step Guide

• January 23, 2024
• For Salon Owners

If you plan to open a salon, besides setting the objectives, you’ll need to know how you’re going to achieve them. Or, in other words, you need a sound salon business plan.

Creating a salon business plan can help you identify specific goals and strategies, as well as provide guidance on how you can reach them and see your business thrive. Knowing how to craft your plan is vital, as it can easily make or break your salon business.

This article will walk you through how to create a salon business plan step-by-step.

Why is a Salon Business Plan so Important?

What is a salon business plan.

A salon business plan is a formal, written statement of the goals you want to set for your business. It explains why you want to set those goals and what your plan is for reaching them. A salon business plan might also include information about the individuals or teams working toward those goals with you.

A good salon business plan gives an overview of where your business is at now and explains where you want to be in the future. It also includes marketing information and research that impact your business plan in general. In fact, think of your salon business plan as a road map where you show where you are now and explain where you’re headed and what it will take to get there.

As you build your salon business plan, it’s important to include information about the process of opening your salon. This information is important because, right from the get-go, you lay the groundwork for success. This groundwork then helps you run and grow your salon business .

Why is a business plan essential for the success of your salon?

A salon business plan is an essential tool for the growth and success of any salon. It is important as it helps you to jot down your ideas and thoughts, arrange them in an organized manner, and develop an overall plan to implement them.

Writing a salon business plan also enables you to identify potential difficulties and challenges that may arise in the future. Once you’ve identified them, you can create a strategy to address them.

Having a business plan is just one of the essential steps to opening your very own salon – to see what other boxes need to be checked, download our Opening a Salon checklist PDF :

The Ultimate Checklist You Need to Open Your Salon

Get Trafft’s FREE & PRINTABLE step-by-step opening a beauty salon checklist every salon owner needs.

Bonus: Discover 5 essential steps to building a successful beauty salon

Benefits of having a sound salon business plan

A well-crafted salon business plan comes with many benefits:

• A Greater Success Rate : A good business plan allows you to mitigate risks, make better-informed decisions, and improve your chances of running a successful salon.
• Better Financial Management : A well-written salon business plan includes your budget, financial projections, and expense management. This helps you keep tabs on your salon’s financial health, which leads to financially sound decisions.
• Improved Marketing Strategies : A sound business plan requires you to conduct market research and develop marketing strategies. Then you can identify your target market, predict customer preferences, and adjust your marketing efforts to be more effective.
• Increased Operational Efficiency : A salon business plan ensures that you implement efficient operational processes. This allows your salon to keep running smoothly and leads to increased customer satisfaction.

How to Write a Salon Business Plan in Just 12 Steps

• Write an executive summary
• Create effective mission and vision statements
• Include a salon business description
• Analyze the market and identify your target audience
• Check what your competitors are up to
• Identify products and services you wish to offer
• Craft a sound financial plan
• Tackle management and organization
• Plan your everyday operations
• Think about your marketing strategy
• Think about sales
• Don’t forget to include risks

1. Write an Executive Summary

An executive summary explains what your salon is like and why it is successful. In most cases, a potential investor would go straight to this section to get an idea of what the business is like. If the executive summary isn’t interesting or compelling, they won’t read any further. That makes it an essential section and the first step when writing your salon business plan.

The executive summary should include information that is relevant to stockholders or investors. Include details about your target market, business objectives, and financial projections. Don’t forget to add information about your products and service menu, as well as your vision and mission. The main idea is to let the reader know what’s up, grab their attention, and make them want to keep reading.

Key components

An executive summary of every salon business plan should include the following information:

Business overview : Introduce the reader to your salon. Include information like the name and location, and a brief description of your core values, vision, and mission.

Market analysis : Provide a summary of your research on your target market. Include details about the target market’s trends and demographics. Then highlight gaps or opportunities in the market that you plan to capitalize on.

Your business objectives : Clearly identify your business goals and state what you want your salon to achieve. This might include details like expansion plans, revenue targets, or customer acquisition goals. In this section, you can include any goals that will affect your salon’s growth and success .

Products and Service menu : Give a brief overview of what your salon offers. Make sure your unique features and competitive advantages stand out. Explain what your salon is doing to meet the needs of the target market.

Marketing strategies : Explain your marketing strategy. This includes information about advertising, branding, social media, and so on. If you have any original ideas for how to make your salon stand out from the competition, make sure to highlight them.

Your financial projections : Provide a detailed financial plan overview. Include any information about profit targets, expenses budget, and revenue forecasts. Highlight any achievements or milestones you have reached that prove the financial viability of your salon.

Any funding requirements : Clearly explain the funding requirements for your salon. Explain how much funding you need, how you will use the funds and any other potential sources of funds you have.

2. Create Effective Mission and Vision Statements

Image by pch.vector on Freepik

A mission statement is a short explanation of why you created your salon, what your goal is, and how you want to achieve it. Your mission statement is an important part of your salon business plan, so it should be the first thing you see on the page. It’s a good idea to put it at the top of the page where you and others can see it and be reminded of your purpose.

The mission statement gives you the chance to express your purpose and intention. It not only explains why you started the salon, but it also explains what you have to offer. It shows what sets you apart from the competitor salons and captures the spirit with which you run your salon.

In just a few words, your mission statement can determine what drives your business.

Defining your purpose and aspirations

Part of the purpose of a mission statement is to define your purpose and what you offer. Your purpose is the reason you exist and what you have to offer potential customers. To get an idea of what your mission statement should include, ask yourself “Why does my salon exist?”

A vision statement serves a similar purpose. It explains where you want to take your business and what you hope to achieve. It defines your goals and the future impact you want to have. To identify the key points that will go into your vision statement, ask yourself “Where do I see my salon in the future?”

Putting your purpose and your long-term goals in writing plays an important role in having a successful business plan.

How to craft mission and vision statements

Here are a few examples of things you can consider when you are writing your mission statement and your vision statement. This will help you come up with ideas that reflect your identity and direction as a salon.

• Have a brainstorming session with your team. Ask them “What do you think makes this salon unique? What do you love about working here? What do you personally want to achieve?”
• Identify core values. What specific values do you want to uphold in everything you do? Some examples of core values are: creativity, integrity, excellence, diversity, and
• Put your mission statement in writing. Use your core values as a starting point. Then write a short, simple sentence that sums up your salon’s purpose and what you offer to clients.
• Write your vision statement. Write a short, inspiring sentence that describes your long-term goals for the salon and what you want to achieve.
• To make this process easier, consider using AI writing tools to help craft clear and compelling statements.
• Review and refine. Once you have your mission and vision statements written down, take some time to review them. Make sure your statements are both clear and concise, as well as compelling.

In case you need a bit of help, take a look at some brilliant salon mission statement examples sure to inspire you.

Also, writing an effective slogan will only underline the message you wish to send, so make sure you have one ready.

3. Include a Salon Business Description

Company description.

A company description is a quick overview of your business that explains the core values of your company. This part of your salon business plan is all about giving a quick and simple rundown to the readers. It’s meant to give them a general idea of what your business is all about.

Outlining the details

Your salon business description provides all the basic details about your salon. You should include the name of your salon, the location, and your contact information. Also, include the details about the legal structure of your salon. This information is the foundation of the rest of your business description. Thus, it’s important that the information is accurate and up to date.

Company history and brand story

In this section, you should provide some information about the background and history of your salon. When was your business founded? What led to you starting your business? Whatever your story is, this section is your chance to tell it.

Describe what you offer and your USP

This section details what your clients can expect to find at your salon. You can use this section to provide details about new beauty products or services you are offering. If you are working on your own line of products, this is also a good place to mention it and provide an estimated timeline for when it will be available.

Your salon’s USP (unique selling proposition) is what makes your salon stand out from the rest of the market. It is very important to highlight your USP in your business description.

4. Analyze the Market and Identify Your Target Audience

The market analysis shows that you’ve put some serious thought into your target audience. You’ve also done some research to find out what the competitors are missing out on. What’s more, it shows that you really know your area and have made some changes to your approach to fit in.

When you identify and analyze your potential clients, you are better able to adjust your marketing strategy to catch their eye.

Conducting market research

Market research means collecting data about the needs, preferences, and behavior of potential clients. Then you analyze this data. Market research helps you identify who your target market is and what their expectations and needs are. Based on these findings, you can create a marketing strategy that is appealing to that audience in particular.

Conducting market research also helps you identify who your competition is. Knowing this helps you get a good idea of reasonable pricing and ideal locations. Factoring this information in helps you gain and retain clients.

Here are some ideas on how you can make the entire process more interactive and fun (both for you and the participants):

Salon pop-up surveys

Set up a pop-up booth or station near popular local spots and events. Engage with passersby, offering quick surveys with a fun incentive like discount coupons for your salon. This allows you to gather diverse opinions and attract potential customers .

Instagram polls and stories

Leverage the interactive features of social media. Use Instagram polls and stories to ask your followers about their favorite salon experiences, desired services, or beauty trends. Encourage them to share their thoughts and tag friends for a chance to win a free service.

Salon open house events

Host an open house event at your salon. Invite the local community to explore your space, meet your staff, and participate in live demonstrations or mini-makeovers. Use the opportunity to collect feedback and preferences directly from attendees.

Collaborative mood boards

Create collaborative mood boards or Pinterest boards where clients and potential clients can contribute their favorite hairstyles, colors, and beauty inspirations. This not only gathers valuable insights but also fosters a sense of community and involvement.

Beauty trend workshops

Organize workshops on the latest beauty trends. Invite participants to share their thoughts on emerging styles and treatments. This not only serves as a research platform but also positions your salon as a trendsetter in the community.

Community surveys with prizes

Distribute physical or digital surveys within the local community, emphasizing the importance of their opinions. Include a prize draw or a special discount for survey participants, encouraging more people to contribute.

Interactive social media challenges

Create engaging challenges on social media platforms, encouraging followers to share their favorite salon experiences or dream makeover ideas. Use a unique hashtag to track responses and offer prizes for the most creative entries.

Beauty polls and quizzes

Develop entertaining online polls or quizzes related to beauty and salon preferences. Share these on your website and social media to capture audience insights while providing a fun and interactive experience.

By infusing creativity and engagement into your market research efforts, you not only gather valuable information but also strengthen the connection between your salon and the community. The more interactive and enjoyable the process, the more likely you are to receive enthusiastic and authentic responses from your audience.

Identifying behaviors, demographics, and preferences

Once you have information on your target market you can use it to better understand them. Here are a few things to look at:

The behavior of your target market. This refers to the way clients make purchasing decisions, their brand loyalties, and other similar behaviors. In general, behaviors can include anything that affects a client’s decision-making process.

Demographics refer to the characteristics of your potential clients.

Geographic location, educational background, and income can all impact the way clients respond to your marketing strategy.

Even the age and gender of the people you want to draw in can affect which strategies you use. Understanding this will help you create a marketing plan that resonates with the clientele you want to attract.

Then you have to factor in the preferences of your target market. What do they like and dislike? What kinds of ambiance are they drawn to? Which salon services are most popular with this group? What are their thoughts on pricing? What do they look for in customer service? All these factors play their part in whether or not a potential customer chooses your salon.

Client analysis

This part of your salon business plan is all about who your potential clients are. Depending on where your salon is, you might get certain types of people coming in. Or, it might be a mix of different types. You need to include details about who your market is made up of and what they’re like.

Here are a few things involved in conducting a client analysis for your salon:

• Define the scope and the objective of the analysis. Include information about the services and products, the time frame, and the area your customers are coming from.
• Collect data from a variety of sources and analyze. You can use surveys, online reviews, industry reports, interviews, and social media, as well as other sources.
• Identify specific customer groups. This includes demographics, needs, and behaviors.
• Create a profile for each customer group. Include descriptions of preferences, characteristics, expectations, and motivations.
• Evaluate the salon’s current performance. How are you doing with customer retention, satisfaction, and loyalty? How much is your salon profiting?
• Identify specific areas where you can improve customer relationships.

5. Check What Your Competitors Are Up To

A competitive analysis explains your plan for your salon to dominate the market. It is important for your competitive analysis to give a brief explanation of the existing competitors. This can include direct competition, like another salon, or indirect competition. The indirect competition includes any other option for clients to receive the products or services you offer. In this section of your salon business plan, you can bring out the strengths and weaknesses of your competition and explain how your target market views them.

Knowing your competition will help you determine what your own advantages are. Then you can capitalize on those advantages to attract and keep more customers. Once you can pinpoint your unique strengths, you are better equipped to carve out your own place in the market. It will give you a starting point to work from to identify a new way to attract customers. It may also help you find something unique to offer that no one else in the area is offering.

Conducting a SWOT analysis

To be able to succeed and stand out from the competition, it is helpful to carry out a SWOT analysis . SWOT is an acronym for strengths, weaknesses, opportunities, and threats. This analysis will help you diagnose the factors that play a role in the potential and performance of your competition.

What are the strengths of your competitors? Maybe a competing salon has a good reputation and a strong brand. Perhaps they offer a wide range of services or have a skillful team. They might have a good relationship with their suppliers, offer a clean and welcoming atmosphere, or have an optimal location.

What are their weaknesses? Perhaps they offer a limited number of services or have staff that lacks experience. They might be struggling with high overhead costs or have a difficult location. Or they may be on the losing end of high competition and/or struggle to maintain customer loyalty.

Opportunities for a salon include expansion opportunities or new services and products. Other opportunities include increased online presence, partnering opportunities, or new technology and trends.

What is a threat to a salon? Economic recessions, loss of customers to the competition, and negative reviews all threaten the success of a salon. Other threats include supply chain disruptions, legal problems, and environmental and health risks.

6. Identify Products and Services You Wish to Offer

This part of your salon business plan lays out all the different services that your salon will offer its customers. You can expect a wide range of services, from haircuts, styling, coloring, treatments, manicures, pedicures, facials, and many more. Each service is described in detail, including the techniques used, expected results, and pricing structure. We’ve also got a great selection of salon products that you can buy, like hair care items, skincare products, and beauty accessories.

By providing a comprehensive overview of the salon’s products and services, we’re showing that we’re committed to meeting all our customers’ needs and preferences. We want to make sure everyone feels welcome and satisfied with their experience at our salon. This sets the stage for a successful and thriving salon business.

7. Craft a Sound Financial Plan

Image by vectorjuice on Freepik

Here is where you provide details about the financial history, budget, and projections for your salon. Any potential investors or lenders will be especially interested in this section of your salon business plan.

When writing this section, you should include your financial plan for your salon for the next 3-5 years, as well as your financial history going back 3-5 years. If the salon has income, include financial statements. You should also include potential funding sources and your plan for keeping your salon running.

A good budget is the foundation for any effective financial plan. A budget allows you to distribute resources like time and funds effectively. A good budget also allows you to make better decisions about saving and spending and set goals for your finances.

Start by identifying all the sources of income for your salon. This includes product sales, service fees, and so on. Then identify all the expenses your salon has, like rent, salaries, supplies, and other operational costs. You could make a category for expenses that are always the same, like rent, and another for expenses that vary from month to month, like supplies. This might help you to see patterns and identify areas where you could cut back on some costs.

Once you have identified all your income and expenses, then you can set goals. From time to time, check your progress against your budget to see how you are doing and if you can make any further adjustments.

Income streams

Adding income streams is a good way to increase revenue. The following are a few options you could explore:

• Subscriptions : Charge fees for a set period of time instead of per transaction.
• Advertising : Promote certain brands in-store and online.
• Freemium plans : Certain services are free and “premium” services cost extra.
• Third-party licensing : Give third parties the right to use or sell your patented products.
• Renting or Leasing : Rent out assets (for example, real estate or products) for a price.

As you create your financial projections, factor in the demand in the market and the volume of customers. You should also include your pricing strategy for the products and services you offer. It would be helpful to go back and review your sales history. Then you can isolate specific trends. This will help you make more sound financial decisions moving forward. It would also be helpful to you to do some research on the current market.

Alternative funding options

There are a variety of options when it comes to alternative funding sources for your salon. Each option has pros and cons. Some options include loans, grants, crowdfunding, or partnerships.

Loans may offer somewhat low interest rates. However, it’s important to find out what they require for collateral or how strict the repayment terms are.

Grants can offer funds that you don’t have to repay, but they might have strict eligibility requirements and limits on how you can use the funds.

Crowdfunding can get you funds from a pool of investors, but it might mean sharing control or ownership of your salon.

Partnerships can get you access to extra capital and more expertise. On the downside, partnerships can mean profit-sharing. You may also have to consult with your partners before you make decisions.

Expense management

If you want your salon business plan to have success, it is vital that you manage your expenses carefully. To maximize your earnings, you have to optimize your expenses and control the costs your salon faces. This is the only way to make sure that your salon remains financially stable.

Regularly review your expenses and identify ways to cut costs without sacrificing quality. Be on the lookout for chances to negotiate better deals on supplies and cut out unnecessary expenses. For example, could you choose equipment that is more energy efficient? Is there a way you could maximize the lifespan of the products you use and cut back on supply costs?

Hiring freelancers or contractors

Hiring a contractor or freelancer can have a lot of benefits. These independent professionals can provide you with the expertise you need to do a specific project or task. Some of the benefits they offer include:

• Saving on Costs: Hiring contractors and freelancers can save you money on payroll taxes, training, benefits, and more. You pay for the work they do and depending on your needs you can adjust your budget.
• Greater flexibility: You hire contractors and freelancers only as you need them and for as long as you need. You can adjust the scale of your team depending on the demand of the project and their availability.
• Expertise: Freelancers and contractors bring in fresh ideas and perspectives. Their knowledge of the industry is also an asset to your salon business. They can also carry out tasks that are beyond your skill set or that require special equipment and tools.

8. Tackle Management and Organization

The management and organization plan is the backbone of your salon business plan. It shows how your salon will operate and reach its goals. This section gives an in-depth look at the salon’s management team, including their qualifications, experience, and roles inside the salon. It also explains how the salon will be structured, how decisions will be made, and how different teams will work together.

By sharing a clear management and organization plan, your business plan shows that the salon has capable people and a well-structured system to make it in the competitive beauty industry.

9. Plan Your Everyday Operations

The salon’s operational plan outlines the day-to-day procedures and practices that drive the smooth functioning of the salon. It covers all the essential operational aspects, from staff scheduling and client management to inventory control and quality assurance.

The plan sets out who’s responsible for what, so everyone works together like a team to give customers the best service. It includes strategies for optimizing appointment bookings , managing walk-ins , and handling peak hours efficiently .

Moreover, the operational plan addresses health and safety protocols, emphasizing the importance of maintaining a clean and hygienic environment for both clients and staff. By adhering to the operational plan, the salon can enhance productivity, elevate the overall customer experience, and create a thriving and well-organized salon environment.

Implementing booking software into your salon’s everyday operations

As a forward-thinking salon owner, integrating booking software into your daily operations isn’t just a tech-savvy move – it’s a strategic investment that brings a myriad of benefits to your business.

Booking software simplifies the appointment process, allowing clients to schedule services seamlessly. With real-time updates, your staff can manage and optimize appointments, reducing the risk of scheduling conficts and ensuring a smooth workflow.

Also, booking software enables you to create and manage staff schedules effortlessly. With automated notifications and reminders, your team stays informed, reducing scheduling conflicts and enhancing overall productivity.

Not to mention that clients appreciate the convenience of booking online, as it allows them to be in charge of everything – they can choose services, select preferred staff members, and book appointments at their convenience.

Revolutionize Your Salon Management with Trafft: A Solution Tailored for Salon Owners

As a salon owner, you’re no stranger to the challenges that come with managing a bustling beauty business.

Managing appointments, handling last-minute rescheduling, dealing with overbooking, creating and managing staff schedules, and struggling to be there for your clients in the middle of the night – these are just some of the common pain points you face as a salon owner.

Enter Trafft ! Tailored with your specific challenges in mind, Trafft is designed to transform your daily chaos into an efficient salon experience.

What do you get from Trafft?

• Say Goodbye to Daily Organizational Chaos : Bring order to the chaos with real-time updates and efficient scheduling. Trafft makes organizing your calendar, keeping track of appointments, and managing staff schedules a breeze.
• Minimize No-Shows : With Trafft’s automated reminders, you can reduce no-shows and make sure that each appointment slot is valuable. You’ll receive timely notifications via email or SMS which will help you cultivate a reliable and engaged customer base.
• Reschedule with Ease : When your clients choose a new time, Trafft will send notifications to both of you. Plus, it’ll confirm the booking and update all your calendars. No need to worry about canceling an appointment – Trafft will do it for you!
• Be Available 24/7: Allow clients to schedule appointments at their convenience. Transform your salon into a 24/7 beauty oasis, breaking free from traditional booking hour constraints.

So, are you ready for a salon management revolution? Embrace Trafft and start your transformation now!

10. Think about your marketing strategy

This is your game plan for your salon to bring in new clients and promote your services. A thorough marketing plan , with plenty of marketing ideas and marketing tools you plan to use, is essential. It allows you to stand out from the competition and reach your target market. It also allows you to create connections with your customers and achieve your marketing goals.

This is the most flexible section of your salon business plan . As your business grows and the market changes, your marketing plan will adapt to it.

Marketing strategies that attract and retain clients

It’s important for salon owners and managers to create strategies for advertising and marketing. This helps to attract new customers and retain existing clients , as well as improve the reputation and visibility of the salon. Here are a few strategies you might try:

• Create a salon website or social media account . There customers can get information about your prices, services, location, and hours. Websites and social media accounts are great ways to showcase your work or advertise special events and promotions.
• Try offering discounts, coupons, referrals, loyalty programs, or gift cards . This will encourage customers to visit the salon more frequently and make them more likely to spread the word to friends and family.
• Participate in local events . Are there any festivals, fairs, charity drives, or fashion shows coming up? These events are a great opportunity for the salon to showcase its skills and services. It also gives you the chance to network with potential customers and partners and generate publicity.
• Look for opportunities to partner with other local businesses like spas, hotels, gyms, or restaurants. You can cross-promote services and offer deals or packages to shared customers.
• Send emails or newsletters to customers about your latest news, tips, beauty trends, and offers.
• Ask for feedback from customers . Then use their responses to improve customer satisfaction and quality of service.

11. Think About Sales

In this section of your salon business plan, you should outline the strategies and tactics that will be employed to drive revenue and achieve your salon’s financial objectives.

This section delves into the target market and defines the salon’s unique selling proposition, emphasizing what sets it apart from competitors. It details the pricing strategy for various services and products, taking into consideration factors such as market demand, competition, and the perceived value of offerings.

The sales plan also identifies promotional activities and marketing campaigns that will be executed to attract new clients and retain existing ones. It includes a timeline for these initiatives, along with a budget allocation for marketing expenses. Furthermore, the section discusses techniques for upselling and cross-selling to maximize the average transaction value per customer.

By laying out a comprehensive sales plan, the business plan showcases the salon’s dedication to achieving financial success and growth through a well-structured and effective sales approach.

12. Don’t Forget to Include Risks

The risk management section of the salon business plan addresses the potential challenges and uncertainties that the salon may encounter during its operations.

This section identifies and assesses various risks, including financial, operational, legal, and industry-specific risks. It outlines the proactive measures that will be implemented to mitigate these risks and ensure business continuity.

Strategies such as obtaining insurance coverage, adhering to strict health and safety protocols, implementing sound financial practices, and conducting regular staff training are discussed to minimize potential liabilities. Additionally, contingency plans are detailed to handle unexpected situations, such as economic downturns or natural disasters.

By carefully analyzing and addressing potential risks, the risk management section demonstrates the salon’s commitment to safeguarding its interests and building resilience, providing potential investors and stakeholders with confidence in the salon’s ability to navigate challenges and succeed in the long run.

So, What’s the Secret to Creating a Successful Salon Business Plan?

Running a successful salon requires more than just a flair for aesthetics; a robust salon business plan is equally essential. This plan is not a one-time document but a dynamic tool that evolves alongside your business. It serves as a roadmap, guiding your financial decisions, attracting funding, and steering your salon toward lasting success.

When writing your salon business plan, don’t forget to include a detailed market analysis, your financial projections, operational plan, services and pricing strategy, marketing, and branding.

Be sure to check in on your plan regularly and see how you’re doing compared to your goals.

Remember, a well-thought-out salon business plan is not just a formality; it’s a dynamic tool that empowers you to make informed decisions, navigate challenges, and seize opportunities for growth. Invest time and effort in crafting a plan that aligns with your vision, and watch your salon flourish.

Looking for More Salon-Related Resources?

If you enjoyed this article about creating a successful salon business plan, you should check out these as well:

• The Best Salon Appointment Booking App On the Market
• How To Manage A Salon Successfully (Salon Manager Tips)
• How To Run A Successful Salon (The Salon Owner Guide)
• How To Get More Clients In A Salon (The Ultimate Guide)
• How Much Do Salon Owners Make? Tips for You to Earn More
• Salon Cancellation Policy Examples and Templates To Use
• The Best Salon Slogans and Mottos to Use for Your Own
• Salon Mission Statement Examples and Tips To Create One
• The Types of Salon Insurance You’ll Need for Your Business
• Salon Social Media Marketing 101
• How to Make a Salon Price Increase Notice without Losing Clients
• The Most Efficient Salon Marketing Ideas You Need To Try
• The Best Salon POS System to Pick From
• Salon Booth Rental Tips and Best Practices to Know

FAQ on Salon Business Plan Essentials

Why do i need a salon business plan.

A salon business plan is essential because it serves as a roadmap, guiding you through the process of starting and growing your business.

It outlines your goals, target market, services, pricing, and marketing strategies, helping you stay on track and make informed decisions.

A well-prepared business plan can also be valuable when seeking financing, as it demonstrates your commitment and expertise to potential investors or lenders.

What should I include in the company description?

In the company description, provide an overview of your salon, including the name, location, and ownership structure.

Explain your salon’s mission, vision, and core values, as well as the unique selling points that set you apart from competitors. This section should also highlight the salon’s atmosphere, target clientele, and the specific services you plan to offer.

What is an example of a salon mission statement?

An example of a salon mission statement could be: “At [Your Salon Name], we are dedicated to delivering exceptional beauty experiences that empower our clients to look and feel their best. Our mission is to create an inviting, inclusive environment where creativity thrives, and our team is committed to providing personalized, high-quality services that enhance natural beauty and boost confidence.”

What is the best business structure for a salon?

The most common business structures for salons are Sole Proprietorship, LLC (Limited Liability Company), or Corporation. Each has its own advantages. Sole Proprietorship is simpler but offers less liability protection. LLC combines liability protection with flexibility. A Corporation provides strong liability protection but involves more complex formalities. Consult with a business advisor to determine the best fit for your salon.

How do I choose the right services for my salon?

Choosing the right services for your salon starts with understanding your target market and their needs.

Research your local area and identify gaps in the market or underserved segments. Consider your own skills and expertise, as well as those of your team, and focus on services that align with your strengths.

Offering a mix of essential and specialized services, such as haircuts, coloring, and unique treatments, can help you stand out and attract a loyal clientele.

How do I set salon pricing?

Setting salon pricing requires balancing the cost of providing services with what customers are willing to pay.

Research competitor pricing in your area and consider factors such as your target market, the quality of your services, and your salon’s atmosphere. You can opt for tiered pricing based on the experience of the stylist or offer service bundles to encourage customers to try additional services.

Be prepared to adjust your pricing as your business grows and evolves.

What’s the best way to market my salon?

Marketing your salon requires a combination of traditional and digital strategies.

Word-of-mouth referrals from satisfied clients can be powerful, so encourage customers to share their experiences with friends and family. Utilize social media to showcase your work, engage with potential clients, and share promotions.

Collaborate with local businesses or participate in community events to raise brand awareness. Don’t forget about email marketing, loyalty programs, marketing tools , and targeted advertising to attract new customers and retain existing ones.

How can I ensure a top-notch customer experience?

Providing an exceptional customer experience is crucial for salon success. Start by hiring skilled, friendly staff who share your vision and commitment to customer satisfaction. Offer ongoing training to ensure your team stays up-to-date on industry trends and techniques.

Also, handle bookings professionally, with the help of salon scheduling software and booking apps .

Create a welcoming, clean, and comfortable salon environment, and be responsive to customer feedback. Consistently delivering high-quality services and personalized attention will help you build a loyal client base.

How do I manage salon inventory and supplies?

Effective inventory management is essential for a successful salon. Implement a system to track product usage and sales, ensuring that you always have adequate supplies on hand without overstocking. Regularly review your inventory levels and adjust your ordering frequency or quantities as needed.

Negotiate with suppliers for the best prices and consider implementing inventory management software to streamline the process.

What legal requirements should I be aware of?

Before opening your salon, familiarize yourself with any legal requirements, such as licenses, permits, and zoning regulations.

You may need a cosmetology license, business license, or specific permits for your location. Additionally, ensure your salon meets local health and safety guidelines and complies with employment laws. Consult with a legal professional if you’re unsure of your obligations.

How do I create financial projections for my salon?

Creating financial projections for your salon involves estimating future revenue, expenses, and cash flow. Start by estimating your income from services and product sales, taking into account factors like pricing, target market, and more.

Outline your anticipated expenses, such as rent, utilities, salaries, marketing, and inventory costs. Create a cash flow statement to ensure you have enough working capital to cover your expenses and support your salon’s growth.

Use your financial projections to set realistic goals and adjust your business plan as needed. Regularly review your financial performance and compare it to your projections, making necessary changes to stay on track and achieve your objectives.

How do I measure the success of my salon business?

Measuring the success of your salon business involves tracking key performance indicators (KPIs) that align with your goals.

Common KPIs for salons include revenue growth, client retention, client acquisition, average ticket value, and employee productivity.

Track these metrics regularly to assess your salon’s performance and identify areas for improvement. Additionally, use customer feedback, online reviews , and testimonials to gauge the overall satisfaction of your clients and the quality of your services.

This information can help you refine your business strategies and ensure your salon’s ongoing success.

• Jovana Smoljanovic Tucakov

Jovana Smoljanovic Tucakov is a Content Marketing and SEO Specialist who uses both words and data to communicate a message and deliver value. With more than 5 years of experience in digital marketing and content production in the IT industry, she loves identifying and solving the readers’ pain points and creating targeted content.

Curious about the human mind and emotions, especially those that drive consumer behavior. Likes fitness, food preparation, board games, reading (both for pleasure and learning), and binge-watching Netflix.

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How to Start a Hair Salon

January 25, 2024, share this:.

Starting a salon can be an elaborate undertaking. With finances, marketing, staffing, and other crucial considerations, careful planning and preparation are vital. Technology and software can be fundamental for any startup business owner.

Do you dream of owning a hair salon? Use this comprehensive guide to salon business planning to give you some pointers.

Steps to Open a Successful Salon

What do you need to start a hair salon? How can business management software facilitate this process? Learn how to open a salon with the tips and best practices below.

Formulating a Robust Salon Business Plan

You’ll need a well-researched business plan before opening a salon. This plan can help you make the most informed company decisions, providing a detailed roadmap to success. A comprehensive plan may also help you secure funding from grants and investors.

Prospective lenders or investors will ask to see a complete company analysis before they take a chance on you. With that in mind, here are some essential components of a salon business plan.

1. Executive Summary

An executive summary is an your business plan in a nutshell. Try to keep this section as concise as possible — no more than one or two paragraphs. While this summary is an introductory section, it’s practical to write it last after you’ve gathered all data points.

2. Company Description

Your company description should include details like the location, concept, theme, and target market. You might also sprinkle in some of its origins, like a brief bio of yourself and any co-owners.

3. Products and Services

List and describe all products and services your salon will offer, such as:

• Perms and relaxers

Explain what problems your salon can solve and why consumers can benefit from them. By investing in  salon and spa software  like Meevo, you can persuade your clients to schedule additional services that earn you more revenue. We design our software to prompt for upsell services when clients book through your website or at your physical location. Some examples might include:

• Combining injectable dermal fillers to a facial.
• Adding deep conditioning to a standard haircut.
• Boosting a massage appointment with aromatherapy services.

4. Market Analysis

Your market analysis should clearly define your target audience. Explain how your products and services will appeal to them and how you plan to reach these clients.

You can also list your competitors, highlighting how your salon stands out from these companies. What are their strengths and weaknesses? How can you capitalize on them?  Create a SWOT analysis  for your business. Identify what qualities give you a competitive edge and how you plan to address any potential vulnerabilities.

5. Management Team

This section should illustrate your business’ structure. List all management team members, including owners, founders, advisers, and board members. Provide a summary of each person’s role and expertise. Think of this section as a collection of mini resumes.

6. Marketing Plan

A detailed marketing plan can help increase your salon’s visibility upon opening your business. Include all these elements.

• Positioning statement:  A powerful positioning statement can help clients perceive your brand positively. Describe qualities that set your salon apart from others. Use compelling evidence and real-life scenarios to illustrate how your products and services benefit customers.
• Target market:  Your target market is the segment you aim to reach with your products and services.
• Pricing strategy:  Your pricing strategy should factor in your business objectives and the current market. Compare what competing salons charge for the same services and consider whether you can afford to set slightly lower prices.
• Promotion strategy:  Explain  how you’ll promote your salon  and increase visibility, like social media campaigns. Discuss on-site marketing plans, such as referral incentives and loyalty programs. An aesthetically pleasing, user-friendly website and profiles on review sites can also help build exposure.

7. Financial Plan

Financing and budgeting for salons is another area to cover. This section of your business plan should include the following.

• Startup costs:  Estimate the initial overhead costs to open a hair salon. That includes hair products, chairs, cleaning supplies, and anything else needed to get your business off the ground.
• Funding options:  Specify whether you will fund your business independently or ask for money from investors.
• A break-even analysis:  Show how much revenue you need to account for your spending. Potential investors should see how much you’ll need to spend upfront and how long it will take to break even.

The Integral Role of Technology in Managing a Successful Salon

Technology plays an instrumental role in starting a salon. Many features can  attract and retain clients .

• Automated bookings
• Easy payments
• Discount opportunities
• Rewards programs

Let’s review how all-inclusive business management software can help you open and run a successful salon.

Streamlining Salon Operations With Meevo

Meevo is an all-in-one, cloud-based salon software that makes business management a breeze. It delivers everything you could want in a salon management system, including:

• A best-in-class marketing suite
• Industry-leading reports and analytics
• Fast appointment bookings
• Robust security controls

As a current or aspiring salon owner, you understand the ups and downs of opening a business — and so do we. People who understand the beauty industry designed this software. We would love to walk beside you and help you succeed.

Meevo streamlines three fundamental business areas.

• Client management:  Seamlessly  keep tabs on your clients  with Meevo. You can create a database of their preferences, learn who spends the most money, and see who is overdue for their next appointments. You can encourage repeat visits by creating a membership program. Meevo’s booking feature also makes it easy for guests to schedule their next visit.
• Business operations:  With  Meevo’s Business Operations feature , you can set and adjust business goals, track employee performance, manage different salon locations, and monitor your inventory.
• Marketing:  Access  various marketing features , like automated email campaigns, email performance analytics, segmented client lists, social media posting, and more.

The Significance of a POS System in a Salon

A point-of-sale system digitally manages all parts of a sale, including transactions, payments, and receipt distribution. It helps track customers and appointments, process payments, and oversee inventory.

Meevo is a POS software that aims to enhance client experience through mobile optimization, easy and secure payments, targeted product recommendations,  and other features . Here’s how it simplifies transactions.

• Mobile checkout:  This feature lets clients pay on their mobile devices from the comfort of their chairs. That way, your front-desk staff can focus on answering calls and greeting incoming guests.
• Flexible receipt options:  Meevo lets your guests choose how they’d like to get their receipts — printed, emailed, or both.
• Discount opportunities:  Meevo can automatically apply discounts at checkout. Customers can also input discount codes manually.
• Personalized product recommendations:  Meevo tracks clients’ previously purchased products. The POS software informs them when they’re due to restock, making for a quick and easy checkout.
• Secure payment methods:  Keep your salon payment card industry-compliant with Meevo. This software securely stores clients’ preferred methods. That way, they don’t have to rummage through their wallets to find cash or credit cards after their appointments.

Harnessing the Power of Social Media and Local SEO for Salon Marketing

In today’s digitally driven world, cultivating  a robust social media presence  is one of the best ways to build buzz around your new salon. Connect with fellow local small businesses, clients, and members of your target market. Post engaging content — such as before-and-after hair photos and videos — to entice prospective clients to reach out or book an appointment.

You can also attract local clientele through search engine optimization. SEO helps your website rank higher in search engine results when users  search for related keywords , such as “haircuts near me” or “best colorist in (your city’s name).”

The Imperative of Client Management in a Salon Business

Effective client management can help you exceed your clients’ expectations, quickly address potential issues, and improve your overall service quality.

Below are some ways you can better grow and manage your client base.

Cultivating a Loyal Client Base

Customers are the heart and soul of any successful enterprise. Therefore, finding ways to build a loyal client base should be a top priority for your salon.

Here are some tips for attracting and retaining long-term clientele.

• Provide excellent customer service:  Remember that good customer service and a positive environment go a long way. Greet guests with handshakes, eye contact, and genuine smiles. Clients are more likely to return when you warmly welcome them and make them feel appreciated. Consider offering them a complimentary snack or beverage while they wait. You can also let new clients tour the salon so they can feel more at home.
• Collect feedback:  Feedback and reviews can help you pinpoint growth opportunities. You can learn what your clients want and use their insights to improve your business. Request feedback after appointments. For instance, you might send a follow-up email asking them to rank their visit and leave comments about their experience.
• Offer a loyalty or membership program:  Try to reward repeat guests for patronizing your salon. Demonstrating your gratitude and appreciation makes people more likely to return. For example, you might offer service discounts to clients who sign up for your loyalty program or give them a complimentary product for every 10 appointments scheduled. Discounts and freebies can incentivize them to book again.

Embracing Online Booking and Digital Appointment Management

An online booking platform lets people schedule appointments whenever and wherever it suits them, without calling or visiting your salon. You can even accept appointments outside business hours. Meevo’s appointment scheduling feature  offers a simple way  for your clients to book online in seconds.

Overcoming Common Challenges in Running a Salon

Employee management and inventory tracking are typical challenges in any business. Fortunately, a few tips can help you manage them.

Effective Staff Management and Training

Hiring  a quality salon staff  is critical for a successful business. Create a list of traits you’re looking for in candidates. For instance, how many years of styling experience should they have? Should they be proficient in cutting and coloring? Here are some other skills you might look for in stylists:

• Teamwork and collaboration
• Attention to detail
• Time management
• Physical stamina

Be sure to examine personality, attitude, and work ethic. These attributes determine a candidate’s reliability, customer service skills, and ability to work with others.

Your stylists should reflect the culture you wish to infuse into your business. Are you aiming for an upscale, luxurious atmosphere? Will your salon be more casual and family-friendly? Whatever your values may be, you’ll want to instill them into your team.

Employees should also undergo a robust training program. That way, they fully understand the goals and expectations for your salon. Continuous staff training can  cultivate higher employee retention , enabling your team to grow personally and professionally while building their skills. Higher retention can translate to a better business image.

An  efficient employee management system  like Meevo makes it simple to track and monitor staff activity, including:

• Clock-ins and clock-outs
• Raises and promotions

Simplifying Inventory Management

Effective inventory management helps your salon meet product demands. You can manage your expenses better, yielding more revenue in the long run. Meevo’s point-of-sale system can also assist with  inventory tracking and ordering . Gone are the days of managing all your stock manually.

With Meevo’s mobile management feature, you can walk around your store, take barcode photos, and enter product information from your mobile device. You’ll then receive real-time inventory updates, eliminating the risk of human error.

Meevo can also order products automatically based on stock levels, ensuring you never run out. Additionally, you can track merchandise around your salon by assigning individual floor locations to products.

Setting Financial Goals for Your Salon Business

Establishing clear, realistic financial goals is essential for building a profitable salon. You may have included these objectives in your business plan. Here are a couple of tips for setting and achieving your financial goals.

• Identify improvement opportunities:  Are you looking to increase booking frequency or new clients per month? Maybe you’d like to increase target retail sales. Finding key performance indicators  can help you build  financial goals accordingly.
• Work with a professional:  If you find it challenging to manage finances and set realistic goals, consider hiring a financial consultant or accountant. They can work with you to analyze your current budget and pinpoint improvement areas.

Leveraging Meevo for Goal Reporting

With Meevo’s goal-tracking software, you can  set and track progress for goals  in various categories, like:

• Retail sales
• Request rates
• Frequency of salon visits
• Productivity

You can set long-term business goals or have your staff create individual objectives. Determine whether you’re on the right track or need to make any changes, such as:

• Adjusting your marketing strategy
• Modifying your business hours
• Opening a new location
• Promoting top-performing employees

Get the Salon Business Resources and Support You Need With Meevo

Opening a new salon can be equal parts exciting and stressful. Thankfully, you don’t have to do it alone. Meevo is here to help you manage different aspects of your business. You can oversee your marketing, inventory, transactions, staff performance, business goals, and other areas — all from one convenient interface.

Are you ready to learn more about how Meevo can support your salon business journey?  Schedule a demo of our software  today.

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• How to Start a Hair Salon

How Big is the Hair Salon Industry?

• What are the Key Segments of the Hair Salon Industry?
• What External Factors Affect the Hair Salon Industry?
• Who are the Key Competitors in the Hair Salon Market?

What are the Key Customer Segments in the Hair Salon Market?

• What are the Typical Startup Costs for a New Hair Salon?

Is Owning a Hair Salon Profitable?

• What are the Keys to Launching a New Hair Salon?

How to Start a Hair Salon FAQs

Additional resources, other helpful business plan articles & templates.

The best way to start your hair salon business is by considering the customer. What do they want? What are their needs and wants? You need to know this before opening up your shop so you can be sure that you have exactly what they’re looking for. This article will talk about how to get started on your own salon and the keys to making it a success.

Importantly, a critical step in starting a salon business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Salon Business Plan Template here .

Download our Ultimate Hair Salon Business Plan Template here

How to Open a Hair Salon

Use the following hair salon checklist to help you get started:

• Conduct Market Research
• Find competitors and examine their strengths and weaknesses
• Review how people in your area feel about local hair salons
• Determine if the desired business is profitable in the area you plan to set up shop
• Talk to other small business owners in the area to get insights into the demographics and behaviors of your target market
• Write a Hair Salon Business Plan
• Use statistics and research from surveys or studies to support claims
• Include an executive summary people can see at-a-glance
• Use specific details explaining all of your services and each of their price points
• Include how much money is needed for start-up and/or unexpected costs
• Location, Location, Location
• Select a location for your new business that is easily accessible, visible, and nearby
• Make sure you have enough parking spaces to accommodate customers
• Choose an area with little crime so customers feel safe during business hours
• Determine how much it would cost to run the business based on gas, electricity, rent, etc.
• Staffing and Supplies
• Choose people who are competent, licensed, and knowledgeable to work in your salon
• Ensure you have the basic supplies needed to run the hair salon, such as hair dye, shampoo, scissors, combs, sterilizing solution, etc.
• Establish how many staff members would be necessary to meet demand before opening day
• Marketing Plan
• Determine how you want people to hear about your business
• Will you have flyers, a website, or use social media platforms?
• Think of the advertising options available in the area and choose which ones would work best for your own business
• Create a budget for advertising expenses
• Earnings and Salon Expenses
• Examine the costs you will incur during business hours
• Figure out how much money you’ll need to bring in every month after expenses, salaries, and other costs
• Research what your competitors offer and see if there is room for improvement or an untapped niche that needs work
• Create a breakdown of estimated costs for each item on your menu so customers know exactly how much they’ll be spending on their visit
• Taxes, Licenses, and Regulations
• Find out if you need an occupancy permit or other forms of documentation
• Find out how much taxes you’ll have to pay and what you can claim as a business expense
• Inquire about any other regulations that your hair salon will have to follow in your local area
• Determine how you will follow up on these regulations to make sure your business is following the law
• Launch Your Hair Salon Business
• Give yourself a deadline for completing these tasks and stick to it
• Build business relationships with local businesses, friends, and family members
• Plan a launch event to get the word out about your business
• Inform your employees of their roles in the company before your opening day

Finish Your Business Plan Today!

The hair industry is currently worth $39.5 billion and is expected to grow at a 28.7% rate in the next year.  

What are the Key Segments of the Hair Salon Market?

There are several segments within the hair salon market, some of them include:

Affordable Hair Salons

This group of customers typically likes the convenience and affordability of the local hair salon. These clients are not necessarily looking for top-of-the-line service but they want quality care at an affordable price.

Corporate Hair Salons

This sector of the market caters to working professionals who need haircuts on the go. These clients are typically busy and they do not have time to shop around for haircare services. Because of this, it is important for these hair salons to offer quality haircuts with efficiency.

Cosmetology Schools

Cosmetology schools will often offer haircut services to the local market at a discounted rate. The catch is that they are looking to train future cosmetologists, therefore the haircuts are typically basic. This segment of the hair salon market offers budget-friendly haircuts but with lower standards.

Specialty Hair Salons

Specialty hair salons focus on specific hair services like hair extensions, nail care, and other niche hair care ideas. These salons provide a wide range of services but they typically require more training and education.

Incorporate Your Business at the Guaranteed Lowest Price

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Not only does BusinessRocket have a 4.9 out of 5 rating on TrustPilot (with over 1,000 reviews) because of their amazing quality…but they also guarantee the most affordable incorporation packages and the fastest processing time in the industry.

What External Factors Affect the Hair Industry?

The economy affects how much people are willing to spend on their haircuts.

Haircuts may be seen as a luxury due to the price fluctuating with the economy.

During an economic downturn, prices tend to increase at many salons because it’s seen as a way for many salon owners to make up for lost profits if people aren’t spending much money on themselves.

When disposable income is higher, more people are able to go out and get their haircut or color which can lead to an increased number of customers.

Who are the Key Competitors in the Hair Salon Industry?

One of the first things you should consider is what other businesses are competing for your target customers’ attention. Your local yellow pages provide an extensive list of the current salons in your area, as well as their addresses, phone numbers, and hours of operation. Take note of the types of services they offer, the price ranges, and their customer reviews.

National hair salons such as SuperCuts, Regis, and Great Clips are also considered key competitors in some areas. You might even consider contacting some of these larger chains to see if they will allow you to lease space inside their salon so you can operate your salon business alongside them.

There are several customer segments within the hair salon market, some of the most important include:

• Affluent Middle-Aged Women
• Young Adults on a Budget

When starting a hair salon, it is critical to understand these key customer segments. So how do you go about catering for each of these groups?

Well, affluent middle-aged women are typically looking for top-notch service in an exclusive environment. You will often find that this group prefers upscale salons in larger cities. Therefore, you should consider setting up a shop in a busy, metropolitan area.

Another customer segment is young adults on a budget. These clients may not be able to afford the high-end salon services of the middle-aged ladies but they still want an upscale experience and quality service. Many young adults like stylists who are hip and trendy, but they can’t afford to pay too much for hair services. This is why you should focus on offering affordable hair care options in a chic environment.

Lastly, if you’re thinking about how to open a hair salon, don’t forget the 55+ men. These clients are looking for styling that is natural and classic. They do not want anything too dramatic and they like to keep their hair looking natural.

By catering to these key customer segments, you will increase your chances of being successful.

What are the Typical Startup Costs for a New Hair Salon Business?

The startup costs for a new business vary depending on the physical location and size of the salon. New business owners need to invest in certain salon equipment such as sinks, salon chairs, and hair dryers.

There are also less tangible expenses that salons must bear such as signage and marketing expenses. These can be significant and can make or break a salon’s success.

Yes, owning a hair salon can be profitable if planned well. If you are looking to become stylist or beautician or even open your own hair salon, it is essential to research on whether the business will be profitable enough for your investment. Depending on how busy you intend to schedule the business will determine its profitability. A good business plan ensures that after calculation of expenses and other charges; one can expect a good turnover which will help them recoup their investment.

What are the Keys to Launching a New Hair Salon Business?

The keys to launching a new hair salon business are location, staff, advertising, and customers.

The first thing you’ll need to do is determine where your products and services will be sold. Will it be at a mall or in an area with many shopping centers? You’ll want to make sure that you have enough parking space for your clients because people are less likely to come if they have to go out of their way just to find parking. 

Next, it is important to think about your staff. This includes receptionists and hairstylists. Once you’re ready for business, make sure that all staff follow their schedule. No-shows and late arrivals will only slow down the production and could frustrate customers who have appointments. 

Advertising

Next, you’ll need to choose how you want to advertise your new business. The market is very competitive so it will be difficult for new businesses to survive if they don’t have a plan of action. 

You’ll want something catchy and unique that the customers will remember the next time they’re looking for a salon. Word-of-mouth advertising can also help if you take every chance you get to promote your shop. 

If someone compliments your work, take that opportunity to tell them about your website or hand out some business cards if necessary. 

Finally, you’ll need to decide on who your customer will be and how you can attract more people. You don’t want a shop full of older women if most of the style preferences are for those under 30 years old. 

It’s also important to think about what your salon is going to specialize in. Do you want it to become an upscale hairdresser catering only to celebrities or do you want it as a cut-rate salon?   

How to Finish Your Hair Salon Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Hair Salon Business Plan Template you can finish your plan in just 8 hours or less!

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how a Growthink business plan consultant can create your business plan for you. nbsp;

What are the Benefits of Joining a Hair Salon Franchise?

If you're looking for a way to get your hands in the beauty industry without much start-up costs, running a hair salon franchise may be the best route for you.

You'll need to have a certain amount of funding in place that would cover your initial cost, cooperative advertising, and cooperative purchasing. Speak with other entrepreneurs who have opened a salon franchise before making any decisions because they can offer plenty of information about their shop, including profitability and tips for success.

How Much Does it Cost to Start a Hair Salon?

The cost to start a salon varies by the size of your business and services provided but typically ranges from $40,000 to $250,000. This includes monthly lease, salon equipment, staff salaries, utilities, and startup licensing fees before you really start seeing a profit. 

Do You Need Any Licenses for Starting a Hair Salon?

Every salon owner needs the proper business license from the local government before they can legally open a hair salon. 

Hairstylists typically require a cosmetology license in order to cut and style hair, while barbers typically need a barber license. You can search for your local regulatory board at the National Board of Cosmetology website.

It is also necessary to have general liability insurance for the safety of customers entering your beauty business. 

Owning a salon can be very profitable. For example, with only one staffed salon that is open 9 hours per day, 6 days per week (for an annual business duration of 360 days), the average gross earnings before taxes are about $389,000. Overhead averages 65% meaning the owner would keep about $69,000 in net profit annually.

How Do You Stand Out in the Hair Industry?

The main way to stand out in any part of the beauty industry is first to be unique. This means devising a plan that sets you apart from others, such as providing hair coloring services which other salons may not provide. 

By focusing on what differentiates you from others, potential customers will come flocking to your door since they know that they are getting something no one else has.

What Trends Affect the Hair Industry?

Hair and beauty salon owners must be aware of changes within the hairdressing industry. Hairstyles come and go as do colors, cuts, and tools. A hair salon owner must be aware of what is the most popular at the time to stay competitive.

Where Can I Download a Hair Salon Business Plan PDF?

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

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How to Start a Successful Hair Salon

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How to Start a Hair Salon in the US: A Comprehensive Entrepreneurial Guide

Natalia Gonzalez

minute read

Are you thinking about how much money it costs to start a hair salon? Starting a hair salon in the US is an exciting venture for anyone looking into the beauty industry. It’s not just about the initial hair salon start-up cost but about creating a space reflecting your creative vision. This guide will offer insights into everything from the cost of opening a hair salon to hair salon grand opening strategies that make your business stand out.

Understanding the Hair Salon Market in the US

The US hair salon market is a dynamic and competitive landscape that requires a keen understanding of consumer behavior, industry trends, and economic patterns. By comprehensively analyzing the market, an entrepreneur can craft a business strategy that resonates with clients and stands out in the marketplace. Statista's recent report forecasts the 2023 market size for U.S. beauty salons , offering insights into the industry's landscape in 2024.

Researching the Current Market Trends

Staying abreast of the current market trends is crucial for the success of your salon. This research should encompass emerging hairstyles, color techniques, product preferences, and service innovations. It will enable you to tailor your offerings to what's trending, ensuring your salon remains a trendsetter.  Stay on top of trends by assisting with hair and beauty trade shows, we've shared a full guide on the top best shows to attend in 2023 and 2024.

Identifying Your Target Audience

Your salon's target audience is the cornerstone of your business strategy. Are you aiming to attract young professionals, families, students, or luxury seekers? Each demographic comes with unique expectations and preferences, and your services, marketing, and salon ambiance should align with the desires of your chosen clientele. Click here to keep reading more about how to know your clients and identify how to increase your sales with one of our best articles. 

What Do You Need to Open a Hair Salon?

To successfully open a hair salon, several key components must be in place . 

• Firstly , a well-researched business plan is crucial. This plan should outline your vision for the salon, including the services you'll offer, your target market, and your unique selling points. 
• Secondly , securing a suitable location is vital. The ideal spot should be easily accessible to your target clientele and have good visibility. 
• Thirdly , obtaining the necessary licenses and permits is a must to operate legally and professionally. 

This includes a cosmetology establishment license and individual stylist licenses, among others. The next step is designing a welcoming and functional salon space, which involves investing in quality salon equipment and creating an attractive, comfortable environment for clients. Additionally, hiring skilled staff who share your vision and can deliver exceptional service is essential. Lastly, a strong marketing strategy to attract and retain clients is imperative. This includes building a brand identity , utilizing social media effectively , and considering various promotional activities . 

Each of these elements plays a crucial role in the establishment and success of a hair salon.

Crafting a Business Plan for Your Hair Salon

A robust business plan is the blueprint for success. It's a comprehensive document that outlines every aspect of your business, from the concept and value proposition to the intricate details of day-to-day operations and long-term financial projections.

A business plan for a hair salon is not just a document; It's a comprehensive roadmap that outlines every aspect of your business, from the concept and value proposition to the intricate details of day-to-day operations and long-term financial projections.

Outlining Your Business Model

The business model you choose will define the operational structure of your salon. Will you operate on a booth rental model, employ stylists, or combine both?  Your model will affect your revenue streams, operational costs, and the overall culture of your salon.

Planning Your Finances

A detailed financial plan is essential for securing funding and managing your salon's finances effectively. It should include startup costs, operational expenses, pricing strategy, projected cash flow, and break-even analysis. This financial framework will serve as a guide for your salon's economic health and sustainability .

 A great way to keep track of the income of your salon is by utilizing a platform like Booksy to streamline your salon operations  

Estimating Hair Salon Opening Costs

Understanding the costs associated with opening a hair salon is crucial for financial planning and securing adequate funding. Such as leasehold improvements, equipment purchases, initial inventory costs, licensing fees, and marketing for the grand opening.

Budgeting for Long-Term Success

In this subsection, the importance of budgeting for not just the start-up phase but also for the long-term sustainability of the salon is key for your business journey. To make it even smoother keep in mind  strategies for managing ongoing expenses such as rent, utilities, payroll, supplies, and marketing.

Legal Requirements for Starting a Hair Salon

Navigating the legal landscape is a critical step in establishing your salon. It ensures your business operates within the bounds of the law and maintains the professional standards required for success, getting it right from the beginning will avoid any complications in the future, make sure to reach out to your nearest government office and get the requirements. 

Registering Your Business

Choosing the right business structure is foundational for tax purposes, liability, and overall business strategy. Whether you opt for an LLC, corporation, partnership, or sole proprietorship, each has its benefits and considerations.

Obtaining Licenses and Permits

To operate legally, you'll need to obtain the necessary licenses and permits. This can include a cosmetology establishment license, individual stylist licenses, a business operation license, and health department approvals. Staying compliant avoids legal pitfalls and establishes your salon's credibility.

Finding the Perfect Location

The location of your salon can make or break your business. So it’s key to understand and analyze where is the best location for a hair salon, ensuring your salon attracts the right clientele 

Analyzing Demographics and Foot Traffic

Analyze the local demographics to ensure that your target market is well-represented in the area. Consider foot traffic, visibility from the street, and the presence of complementary businesses that can potentially serve as referral sources.

Lease Negotiations and Renovations

Lease negotiations can significantly impact your salon's profitability. It's important to understand the terms and get the best deal possible . Additionally, consider the cost and extent of renovations required to reflect your salon's brand and aesthetic appeal.

Designing Your Hair Salon

The design and ambiance of your salon are extensions of your brand. They set the stage for the customer experience and can significantly influence client retention and word-of-mouth marketing.

Creating an Inviting Atmosphere

Your salon's design should embody the essence of your brand and create a welcoming environment. This includes choosing a color scheme, lighting, and decor that align with your brand identity and create a relaxing and inviting space for clients.

Hiring and Training Your Team

Your team is your brand ambassador. Their skills, attitude, and professionalism reflect directly on your salon and can be a significant differentiator in a competitive market.

Recruiting Skilled Hairstylists and Staff

Recruit a team that not only has the technical skills but also aligns with the culture and vision of your salon. They should be passionate about their craft and committed to providing exceptional service.

Developing a Training Program

A continuous training program is essential to keep your staff updated on the latest industry trends and techniques. It should also cover customer service, sales, and operational procedures to ensure a consistent and high-quality client experience.

Marketing Your Hair Salon

Marketing is the engine that drives customer acquisition and retention. A strategic marketing plan can build awareness, generate buzz, and establish a loyal customer base. We've curated some of the best 7 strategies for beauty salon owners, click here to keep reading.

Building a Strong Brand Identity

Your brand identity encompasses your salon's name, logo, design, and overall narrative. It's what makes your salon memorable and distinct in the minds of your customers.

Implementing Online and Offline Marketing Strategies

Use a mix of online and offline marketing strategies to reach a wider audience. This can include social media marketing, search engine optimization for your website, local advertising, partnerships, and community events .

Grand Opening: Launching Your Hair Salon

The launch of your salon sets the tone for its future. It's an opportunity to make a strong first impression, showcase what sets you apart, and start building relationships with your community.

Planning a Memorable Launch Event

A launch event is a celebration of your salon's opening and an invitation to the community to see what you offer. It should be an experience that guests will remember and talk about.

Offering Promotions and Incentives 

Opening promotions and incentives can be a great way to attract initial customers. Consider offering a discount on first-time services, bundle deals, or loyalty programs to encourage repeat business. 

Managing your schedule

In today’s digital age, clients appreciate the convenience of online appointments. Booksy provides a seamless online booking experience, allowing clients to schedule their hair salon visits at their convenience. This not only enhances customer satisfaction but also reduces the administrative burden on your staff, freeing them up to focus on providing top-notch services.

Can You Own a Hair Salon Without Being a Hairdresser

An intriguing aspect of the hair salon industry is the feasibility of owning and running a salon without being a hairdresser. While having a background in cosmetology can be beneficial, it is not a prerequisite for salon ownership . Successful salon owners come from a variety of backgrounds and often bring diverse skills to the business, such as management, marketing, or finance. The key is to hire skilled hairdressers and staff who can deliver the quality services your clientele expect. Additionally, understanding the business aspects of running a salon, like budgeting, marketing, and customer service, is more crucial than having hands-on hairstyling skills. 

This approach allows entrepreneurs who are passionate about the beauty industry but lack cosmetology experience to still play a pivotal role in shaping the style and success of a hair salon.

Starting a hair salon in the US is a journey filled with creativity, challenges, and opportunities. By carefully crafting each step, from understanding the very first steps into the cost of opening a hair salon to executing it, you can build a salon that thrives and stands out as a leader in the beauty industry. Your entrepreneurial spirit, backed by a strong business plan and a commitment to excellence, will pave the way for success and growth in the vibrant world of hair styling.

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Back to All Business Ideas

A Step-by-Step Guide to Opening a Hair Salon

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 23, 2022 Updated on June 30, 2024

Investment range

$12,050 - $59,100

Revenue potential

$280,000 - $1,125,000 p.a.

Time to build

1 – 3 months

Profit potential

$55,000 - $225,000 p.a.

Industry trend

Here are the key factors to keep in mind when launching your hair salon business:

• Good location — Choose a location with high visibility and foot traffic, ideally in an area frequented by your target demographic.
• Invest in high-quality salon equipment, supplies , and furniture.
• Hire experienced and high-quality staff — Hire experienced and skilled hairstylists or invest in their training.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately  using  ZenBusiness LLC formation service  or hire one of the  best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Manage your salon’s finances carefully — Budgeting, controlling expenses, setting competitive but profitable pricing, and planning for future growth.
• Online presence — Establish a website, invest in a booking (appointment) app, create a Yelp and Google Business profile, and encourage online reviews.
• Learn from real entrepreneurs who run a hair salon :

Set Lopez, Virtus Barber and Co., based in Dallas, TX

You May Also Wonder:

Are hair salons profitable?

Hair salons can be extremely profitable. The average salon haircut costs $45, and color treatments cost $75. The profit margin for a hair salon is strong, generally around 20%.

What kind of insurance does a hair salon need?

A typical hair salon needs general liability insurance, commercial property insurance, professional liability insurance, and workers’ compensation insurance.

Do I need a cosmetology license to open a hair salon?

Yes, you are required to have a cosmetology license to open and run a hair salon in all states.

How do I make my salon successful?

To make your salon successful, focus on providing exceptional customer service, offering high-quality and trendy hair services, hiring skilled and well-trained staff, maintaining a clean and inviting environment, implementing effective marketing and promotion strategies, and creating loyalty programs or special offers to attract and retain clients.

Can I offer additional services, such as nail care or spa treatments, in my hair salon?

Yes, you can offer additional services such as nail care or spa treatments in your hair salon. This can improve the customer experience, provide convenience, and attract a wider range of clients. However, make sure to consider the space, resources, and licensing requirements for offering these additional services.

How do I attract people to my salon?

Develop an online presence through a professional website and active social media profiles to showcase your salon, services, and client transformations. Engage with your audience, share valuable content, and respond to inquiries promptly. Utilize online directories and platforms specifically for beauty and salon services.

Below you’ll find a detailed, step-by-step guide to starting a successful hair salon.

Step 1: Decide if the Business Is Right for You

Pros and cons.

Opening a hair salon has pros and cons to consider before deciding if it’s the right path for you. 

• Creative outlet — Design your own salon concept
• More money — Make more than you do as a stylist
• Share your passion — Make your customers gorgeous!
• High startup costs — Renting a space and buying equipment is expensive
• Competitive market — Market is saturated with hair salons

Hair Salon Industry Trends

Industry size and growth.

• Industry size and past growth — The US hair salon industry was worth a healthy $52.2 billion in 2023, an increase of 0.2% from 2022.(( https://www.ibisworld.com/industry-statistics/market-size/hair-salons-united-states/ ))
• Growth forecast — The global hair salon industry is projected to grow at a CAGR of 7.55% by 2030.(( https://www.fortunebusinessinsights.com/salon-service-market-104608 ))
• Number of businesses — In 2023, 952,909 hair salons were operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/hair-salons-united-states/ ))
• Number of people employed — In 2023, 1,258,764 people worked in US salons.(( https://www.ibisworld.com/industry-statistics/employment/hair-salons-united-states/ ))

Trends and Challenges

• Personalization and customization are becoming increasingly popular, and hair salons should join the trend by offering clients experiences based on their particular needs.
• Mobile hair salons became popular during the pandemic and are continuing to grow as a segment of the industry. Mobile salons are either modified vehicles that have been transformed into salons or stylists that make house calls. 
• Hiring and retaining employees is a continual challenge for hair salons.
• Many hair salon owners and stylists feel the need to price their services lower to attract customers, which often results in little or no profit.

Demand Hotspots

• Most popular states — The most popular states for hair stylists are West Virginia, Wisconsin, and Washington.
• Least popular states — The least popular states for hair stylists are New Mexico, Georgia, and Arkansas.(( https://www.zippia.com/hairstylist-cosmetologist-jobs/best-states/ ))

What Kind of People Work in Hair Salons?

• Gender — 90.6% of hair stylists are female, while 9.2% are male.
• Average level of education — The average hair stylist is high school educated.
• Average age — The average hair stylist in the US is 40.4 years old.(( https://www.zippia.com/hair-stylist-jobs/demographics/ ))

How Much Does It Cost to Open a Hair Salon?

You can start a mobile hair salon for about $12,000. Costs include your equipment, a down payment on a van, and van modifications. To open a physical salon, you’ll spend $60,000 or more to rent a space, prepare the space, and buy all the chairs and equipment. 

All US states require barbers and hairstylists to be licensed cosmetologists, certified by a state-approved program. If you’re not already licensed, you can train in about a year for about $15,000. 

You’ll need a handful of items to successfully launch your hair salon, including: 

• Chairs, shampooing bowls, towels
• Hairdryers and other styling equipment
• Shampoos and hair care products

How Much Can You Earn From a Hair Salon Business?

The average salon haircut costs $45, and the average color treatment costs about $75. Profit margins for hair salons after rent, overhead, and labor are about 20%.

In your first year or two, if you have five chairs, the average customer spends $60, and you have 15 customers a day six days per week, you’ll be bringing in $280,000 in annual revenue. This would mean more than $55,000 in profit, assuming that 20% margin. As your brand gains recognition and you begin to get repeat customers and referrals, you could expand to 10 chairs and have 60 customers per day. With annual revenue of $1,125,000, you’d make a tidy profit of $225,000.

What Barriers to Entry Are There?

There are a few barriers to entry for a hair salon business. Your biggest challenges will be:

• The high startup costs
• Finding licensed stylists to hire
• Standing out from the competition

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Step 2: hone your idea.

Now that you know what’s involved in starting a hair salon, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect service. Conducting market research is important because it can help you better understand your customers, your competitors, and your business landscape.

Why? Identify an Opportunity

Research hair salons in your area (large chain salons, independent salons, and mobile or home-based hairdressers) to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a hair salon that serves wine. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as hair coloring.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Crafting Your Hair Salon’s Unique Services

Your services don’t have to be limited to just haircuts and color. You could also offer:

• Hair up-dos
• Nail services
• Makeup application

How Much Should You Charge for Hair Services?

The average price for a salon cut is $45, and a color treatment is $75. Your ongoing costs will be for rent, overhead, and labor. You should aim for a profit margin of 20%.

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

You can open a woman’s salon or a unisex salon. Either way, your target market will be broad. You should spread out your marketing to include TikTok, Instagram, and Facebook. Make sure to post pictures of the great hairstyles that leave your salon!

Where? Choose Your Hair Salon Location

When selecting a location for your hair salon, consider the demographics of your target market. Look for areas where your ideal customers reside or work, such as residential neighborhoods or commercial districts with a high concentration of office buildings. This will increase the chances of attracting clients who are conveniently located nearby and are more likely to choose your salon for their hair care needs.

Visibility is key in the hair salon industry. Opt for a location with good visibility, preferably on a busy street or in a high-traffic area. A salon that is easily noticeable from the street can catch the attention of potential clients and entice them to step inside. Additionally, choose a location with ample parking or easy access to public transportation to make it convenient for clients to visit your salon.

You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices . When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Hair Salon Name

Here are ideas for brainstorming your hair salon business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “salon” or “hair salon,” boosts SEO
• Name should allow for expansion, for example, “Emma’s Hair Salon” over “Emma’s Bridal Salon”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 450 unique hair salon business name ideas here . If you want your business name to include specific keywords, you can also use our hair salon business name generator. Just type in a few keywords, hit Generate, and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the US Patent and Trademark Office website to make sure the names are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation.

Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Hair Salon Business Plan

Here are the key components of a business plan:

• Executive summary — A brief outline highlighting your salon’s mission, services offered, target market, financial projections, and growth potential
• Business overview — An overview of the hair salon industry, your business’s location, the type of salon, and the unique value proposition you offer
• Product and services — Details of the hair care services, such as cuts, coloring, styling, and potentially retail products you plan to offer
• Market analysis — An examination of the local demand for hair salon services, customer demographics, and spending habits
• Competitive analysis — Assessment of local competitors, their service offerings, pricing, and market position relative to your planned salon.
• Sales and marketing — Strategies for attracting and retaining clients, pricing, promotions, advertising channels, and customer engagement tactics
• Management team — Profiles of key team members, their roles, expertise, and how their experience supports the salon’s success
• Operations plan — Day-to-day running of the salon, including hours of operation, supplier relationships, staffing, and salon maintenance
• Financial plan — Projected financial statements, including startup costs, revenue forecasts, profit margins, and break-even analysis
• Appendix — Supporting documents such as resumes, detailed financial forecasts, market research data, and any legal documents

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to hair salons.

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state.

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your hair salon will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. An S Corp can be either a corporation or an LLC , which just needs to elect to be an S Corp for tax status. In this business structure, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can  form an LLC  in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online, by mail, or by fax. Visit the IRS website to learn more. Keep in mind that, if you’ve chosen to be a sole proprietorship, you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans — This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a hair salon business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Hair Salon Business Licenses and Permits

Starting a hair salon business requires obtaining a number of licenses and permits from local, state, and federal governments.

You don’t need a specific hair salon license, but you do need to be a licensed cosmetologist in your state. State requirements vary.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your hair salon business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential Software and Tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software, such as SalonBiz , Rosy , or Shedul , to manage your online bookings, appointment calendar, inventory of products, and payments.

• Popular web-based accounting programs for smaller businesses include Quickbooks , FreshBooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Local SEO — Optimize your Google My Business and Yelp profiles, encouraging satisfied clients to leave positive reviews to enhance local visibility.
• Website Optimization — Implement SEO strategies to boost your salon’s visibility in search engine results and improve client bookings.
• Social Media Integration — Connect your website to social platforms like Facebook and Instagram for targeted ads and engaging different audience demographics.
• Email Marketing — Send personalized newsletters and special offers to your client base to maintain engagement and encourage repeat visits.
• Video Marketing — Produce and share entertaining or informative videos about your hair services to attract attention online.
• Content Creation — Start a blog to share hair care tips and trends, distributing content across multiple platforms for broader reach.
• Referral Programs — Offer incentives for clients who refer new customers to build a loyal client base.
• Loyalty Rewards — Develop a loyalty program with unique rewards to encourage repeat business and customer loyalty.
• Influencer Partnerships — Collaborate with micro-influencers to promote your services to their followers.
• Local Business Partnerships — Create joint promotions with other local businesses to tap into their customer base and foster community ties.
• Online Booking — Implement an online reservation system with reminders to streamline the booking process and improve customer satisfaction.
• Eco-Friendly Practices — Highlight your use of sustainable products and methods to attract eco-conscious clients.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Today, customers are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your hair salon meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your hair salon business could be:

• Let us care for your most important accessory
• Gorgeous hair that will make you a star
• Affordable mobile hair services — at your service! 

You may not like to network or use personal connections for business gain, but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a hair salon business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in hair salons for years and can offer invaluable insight and industry connections.

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in hair salons. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a hair salon business include:

• Hair stylists — performing hair services
• Counter clerks — greeting customers, taking calls, taking payments
• General manager — scheduling, staff management, accounting
• Marketing lead — SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Hair Salon — Start Making Money!

The hair salon industry is booming, and it’s worth $52.2 billion in the US alone. If you’re a master hair stylist, you could get a piece of that market with your own hair salon.

It takes an investment to start, but you can earn an excellent return on that investment, and eventually grow to have a whole chain of hair salons. You’re a business expert now, so style your plans and get ready to launch your new hair salon empire!

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Hair Salon Name
• Create a Hair Salon Business Plan
• Register Your Business
• Register for Taxes
• Fund Your Business
• Apply for Hair Salon Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Hair Salon — Start Making Money!

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How to create a business plan for a hair salon

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Crops, cuts, dyes, and highlights—hair salons are bustling microcosms of personal change and amusing exchanges. If you’re thinking about starting a salon of your own, the best place to start is with a solid business plan.

The question is: what goes into a business plan for a hair salon?

The short answer: A mission statement, a financial plan, and all the details about how the actual business will run. Of course, if you’re looking to write a hair salon business plan, you need more than the short answer. That’s why we’ve outlined every aspect of building a successful salon business plan, so read on for all the hair-splitting details.

Why build a business plan

Before you write a business plan , you might be wondering what the point of creating it is in the first place. After all, if the business is your personal passion that you’re willing to stake your time and effort into, is it really necessary to put so much of it in writing?

Actually, a business plan has two distinct values to anyone starting a salon (or any other spa business). 

Value for investors

A salon costs money. Even if your staff is providing their own supplies, you have plenty of overhead and start-off costs, from signing a lease to keeping the lights on.

If you’re lucky enough to have access to all the funds necessary to start your salon—whether from your savings or your friends and family—that’s great, but for most small businesses the only way to secure the capital to get a business off the ground is through taking out a loan.

You can secure funds from:

• Small business loans – Federally subsidized small business loans guaranteed by the Small Business Administrations (SBA) are an option for your burgeoning salon business.
• Individual investors  – Often high-income individuals are looking to invest directly into business opportunities including salons. You can meet with investors to get their ideas about how they can contribute financially to your small business.

To convince anyone to lend you the necessary capital to begin your salon, you’ll need a thoughtful business plan. As the business owner, you’ll present your plan directly to lenders and answer any questions they have about your proposal.

Ultimately, your hair styling business plan is your ticket to the financing you need to achieve your dreams of great ‘dos.

Value for the business

The flip side of your business plan is recognizing all the details, and planning is necessary to assure your business finds success. Committing to laying the groundwork on your business in print means a smoother opening, and a clearer picture of what needs to happen to get the doors open and the customers flowing in.

Your salon can use the business plan to:

• Analyze potential risks
• Develop a thorough layout
• Outline your target market
• Explore the possibilities of daily operations

You may think you’ve already got it all figured out, but throughout the process of building your business plan, it’s quite likely you’ll stumble across something that will make you rethink your original vision. Embrace the change—it’s time to jump into the plan.

Part 1: The cover page

Name, number, address, email—any and every way to contact you. The worst possible scenario is having an investor fall in love with your proposal only for them to have no clue how to get in contact with you.

While it may seem obvious, your cover page is the first thing any potential investor will see, so make sure everything looks pristine, professional, and eye-catching. Why not add a table of contents on the reverse side to give your audience an idea of what to expect as well? The extra polish might go a long way.

Part 2: Executive summary

Think of the executive summary as the simple synopsis, or the trailer for the big movie that is your new salon or spa. It needs to be short, touching on your goals and visions without getting too bogged down in the details. For your salon summary include information like:

• Your five-year plan – Do you see yourself expanding your business, offering more services, or opening up a second location? Share what your plans are for the future and where you see your salon going.
• How your salon will impact the community - Consider detailing how your salon will function as part of a larger community. Think about reaching out to neighbors and other local businesses through Nextdoor to get a better idea of the landscape you’ll become a part of.

Part 3: General description and company history

It’s time to talk about what sets your salon apart from the others. The general description and history pages are there to establish why your community needs your new small business. That means elaborating on specific things:

• Atmosphere - What feeling(s) does your salon evoke? Describe the feeling every customer will have upon viewing the facade and arriving inside. For Cedar Park salon owner Leslie Reeves , “It’s all about making kids feel amazing in their own skin.” She runs Sit Still, a kids salon committed to keeping its guests comfortable.
• Location – You’ve picked the perfect spot to begin your new salon business. Now let potential investors know why the location you’ve chosen is more than just practical—it’s purposeful. Whether you’ve studied the foot traffic of the neighborhood or noticed a dearth of other salons nearby, give them a reason why you’re putting down roots where you are.
• Services – Are you the first salon in your neighborhood to offer a service combination never seen before? If you’re styling hair like no one else, be sure to talk about it in your summary.
• Personal history – What about your past has come to inform you about starting a salon? If you’ve spent a decade in the beauty industry, worked in a variety of salons, and studied the ins and outs of the business, it’s worthwhile to include all of that.

Part 4: Mission statement and management plan

How are you going to do what you do? Keep your mission statement focused on things such as:

• Hiring and training practices
• Retail plans
• Customer service expectations
• Inventory management
• Business software 

Tackle each aspect of how your salon will operate day-to-day before moving on to the management plan, which will essentially detail who is responsible for each task. These sections are interrelated and should complement each other. For each aspect of your mission statement, there should be a correlated part of your management plan.

Think about the role of each employee—from the front desk to the manager—and outline their expected compensation as well. Include yourself, as the owner, too. You have some big responsibilities, after all.

Part 5: Marketing analysis and plan

If you’re looking to open up a salon, you should spend time researching precisely what’s happening in the beauty industry, both locally and nationally. This in-depth research will go a long way in presenting your business plan as thorough, objective, and well thought-out.

You can also position your salon filling a hole in the market as Allyson Davoll, CEO of Inspired to Enhance Roanoke did, stating, “I always knew when I had my salon, I wanted to diversify and make sure everybody knew how to do everything.”

Present your marketing analysis and then explicate your plan to capture your customer base. That includes things like:

• Your market position – Do you specialize in classic cuts for young professionals or are you catering to an older crowd looking to keep up with current trends? Explain exactly who your target demographic is and why you’re in the position to cater directly to them.
• Create marketing goals -  Create realistic goals for the immediate future when it comes to your small business marketing plans . Who and how many are the key takeaways from these goals, and don’t forget to imagine how you might expand your target demographics in the future.
• Identify branding – Slogans, images, and potential advertising materials can all be detailed in your marketing strategy. Show your potential investors exactly how you plan to appeal to your target demographic and explain why you’ve made the choices you have.

Part 6: Financial plan

If you’re looking for someone to invest in your salon or spa business, you’re going to need to prove that the investment can be lucrative with a shrewd financial plan. This section can be the most complex, especially for those with a specific financial background, which is why many small business owners turn to a professional.

A certified public accountant (CPA) is an individual with the knowledge and accreditation to guide you through any financial questions you might stumble upon while preparing your financial plan. Seek out any resources and help you might find necessary to build a proper business plan for your hair salon.

Your financial section should include the following information, though it’s important to note that much of it will be projected data based on research unless your beauty salon is already up and running.

• Profit and loss statement – Exactly what it sounds like, this statement will account for your income generating costs (products, commissions, retail sales), as well as your monthly operational costs (rent, utilities, insurance).
• Break-even analysis – Where costs intersect with profits. You can create a graph detailing exactly how much time it will take for the initial investment to be made back in full by the business.
• Cash flow statement – This section will account for all of the money that flows in and out of the business. Whether to pay for services or pay off loans, every penny should be accounted for.
• Business ratio – The projected sales and growth over one year can be identified in the business ratio. It’s a good way of asserting how and why your business will succeed and expand.

Part 7: Appendix

This final and optional section is where you can place items that you think are important but might not have their own proper section. These miscellaneous items could include:

• City permits
• Building leases
• Your resume

If you believe you have an item that could help you secure financing for your new beauty salon be sure to include it.

Business plans are typically under 12 pages, so as always, keep things as concise as possible and exercise restraint whenever possible. As well, note that you can (and likely should) revise and change your business plan as you encounter new information and develop new ideas. It’s a living document with the flexibility to change when necessary.

Nextdoor: The best plan for your business

Now that we’ve outlined the nitty-gritty of getting your salon’s business plan off the ground, you’re likely posed over your keyboard ready to get started bringing this essential document to life.

Hang on for just a second and click on over to Nextdoor . Nextdoor is the place to turn for getting the word out about your new beauty salon business, gathering recommendations, connecting with potential customers who are also your neighbors. 

At Nextdoor we know it takes a village, so why not get in touch today.

Sources: 

Impact Newspaper. Sit Still Kids Salon aims to create calm space for haircuts. https://communityimpact.com/austin/cedar-park-leander/business/2021/09/13/sit-still-kids-salon-aims-to-create-calm-space-for-haircuts/  

Roanoke Times. Business Intel: Salon offers inclusive hair care services at Valley View. https://roanoke.com/business/local/business-intel-salon-offers-inclusive-hair-care-services-at-valley-view/article_96c21ddc-ffa1-11eb-9097-df80c4c4542b.html

SBA. Small business funding programs. https://www.sba.gov/funding-programs  

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Salons For Sale

Opening a salon: a comprehensive guide to a successful hair salon business.

Opening a salon is an exciting venture, offering a chance to provide great work opportunities to salon professionals while providing a valuable service to your community. But where do you start? From creating a hair salon business plan to hosting a grand opening, this comprehensive guide will walk you through the steps to launch your salon successfully.

Hi there and welcome to the ultimate salon owner’s platform, Salonspa Connection ! My name is Susan Wo s, I work with salon owners across the world with recruitment and selling salon businesses . I put together this guide to help you understand how to navigate how to open a salon!

Key Takeaways

Create a comprehensive salon business plan and define your niche to stand out.

Conduct market research, set financial goals & obtain licenses/permits before opening.

Design an inviting atmosphere with essential equipment & hire the right salon staff for success!

Table of Contents

Creating Your Salon Business Plan

The initial step to open a salon involves writing a business plan . The beauty industry includes hair salons, nail salons, barber shops and spas is worth around $532 billion a year. To succeed in this competitive market, you need a well thought out plan. Think through your business model, do market research, and get your head around financial goals.

Connecting with fellow business owners in the hair salon industry provides valuable insights and advice, especially when starting your own salon as a new business. There are ton of great Facebook groups chock full of owners, ready to give advice.

We also recommend booking a free call with a salon coach who aligns with your values and goals as a salon owner.

Defining Your Niche- Starting a Salon with Specifics in Mind

When planning the kind of salon you want to open and the culture you want to create, it’s important to consider your target beauty salon clientele. Tailor your products and services to suit the specific needs of your target customers, and be open to adjusting your offerings should things change.

By defining unique or niche services you set your salon apart from other salons in the area. This will not only make your salon stand out but will also help streamline your marketing efforts. Targeting your ideal salon clients, (and employees), is key to exponential growth!

Conducting Market Research When Opening a Salon

Doing market research helps to identify potential opportunities, such as buying an established salon , reduces business risk. Outpacing the competition will be one of your top concerns for not only salon clients but for employees as well.

You can conduct market research by joining salon owner and manager groups on social media, attending trade shows, and keeping an eye on industry trends.

Assessing the results of your market research will help you spot patterns, assess the competitive salon landscape, and uncover hidden growth opportunities.

Setting Financial Goals Before You Open a Hair Salon

Setting realistic financial goals is vital for your salon’s future. This includes projecting revenue, calculating startup costs, and determining your break-even point.

You should also consider leasing or purchasing salon equipment. Styling chairs and stations can be purchased at wholesale prices or through equipment financing to save on start up expenses. By working with an advisor or utilizing financial tools, you can ensure the long-term financial health of your salon.

Legal and Licensing Requirements

Before opening your salon, you must navigate legal and licensing requirements, such as registering your business and obtaining necessary licenses and permits. Ensuring you meet these requirements will help protect your salon’s success and avoid potential legal issues down the road.

Registering Your Business

To register your business, you’ll need to officially set up your salon with the state regulatory board and obtain an Employer Identification Number (EIN) from the IRS. This unique, nine-digit number will be used for tax purposes and is an essential step in legitimizing your salon.

Obtaining Licenses and Permits

Licenses and permits, including a business license, are official documents issued by government authorities that grant permission for your salon to operate. Depending on your location and the type of salon, you may need cosmetology licenses, health and safety permits.

To meet the necessary requirements you will need to pass cosmetology inspections to maintain a compliant and successful salon.

Choosing the Perfect Location

The perfect location for your salon space greatly influences visibility. Getting access to clients and giving the competition a run for their money is an essential factor to consider. Jo Hopper, a salon owner with 15 years of experience, recommends finding a great spot with ample parking to make it easy and enticing for clients to visit your salon.

Evaluating Potential Locations

When considering locations for your salon, think about factors such as foot traffic, nearby businesses, and growth potential. Assign numerical values to these factors and make an informed decision on the best location for your salon.

Lease Negotiation and Property Acquisition

Once you’ve chosen the perfect location, it’s time to negotiate lease terms or purchase the property. This process may involve working with real estate agents, salon brokers or attorneys to ensure a smooth transaction.

Make sure to keep future growth in mind when negotiating your lease or purchase agreement, so your salon has the flexibility to expand as needed.

Designing and Equipping Your Salon

With your location secured, it’s time to design and equip your salon with an inviting atmosphere and essential equipment. This includes creating a comfortable and welcoming environment that reflects your salon’s brand, culture and aesthetic.

You will likely need to purchase necessary equipment like styling chairs and stations. Hiring a designer or space planner can help you achieve the perfect layout and design for your salon.

If you are opening a salon suite, utilize this checklist to ensure you have everything you need. Read more about the salon software technology needed to run an efficient salon and get the right insurance to protect yourself against the unforeseen.

Creating an Inviting Atmosphere Salon Owners Would Envy

A salon with an enticing atmosphere plays a huge role in attracting and retaining both clients and potential employees. Consider the colors, design elements, furniture, and decor that best capture your salon’s brand and aesthetic.

Additionally, think about the music, scents and the overall “feel” of the salon. Create a pleasant atmosphere in line with your salon’s identity- the kind of salon you would want to spend time in.

Purchasing Essential Equipment

When purchasing equipment to provide top-notch hair services, such as styling chairs and salon stations, consider buying at wholesale prices or exploring leasing options to save on initial expenses.

To make sure your salon operates efficiently and effectively, ensure you have all the tools and supplies needed. Hair dryers, shears and other personal items tend to come with the hair stylists that will be working for you.

In a booth rental salon business model, you will supply much less tools and equipment. An employee based salon, spa or barbershop will require you to supply most everything for employees.

Assembling Your Salon Dream Team

Engaging the appropriate team of stylists and support staff is imperative for the success of your salon. Focus on aligning your team with your salon’s culture and values, and invest time in the hiring and training process to ensure your team provides the best service possible.

Hiring Stylists for New Salon Owners

When hiring stylists, look for individuals with the right personality, skill level, and compatibility with your salon’s culture and values. Vet salon pros carefully to ensure they have the necessary qualifications to provide quality service to your clients.

Get familiar with salon recruiting resources , networking events, classes, and trade shows that can help you connect with talented stylists.

Traditional Marketing Tactics When You Open a Hair Salon

Don’t underestimate the power of traditional marketing tactics to build your salon business. Marketing efforts such as local advertising, partnerships with local businesses, and referral programs. These methods can help you build relationships within your community and draw in more customers.

Combine traditional and digital marketing efforts to create a well-rounded marketing plan that effectively reaches your target audience.

Launching Your Salon

As you prepare to create a business plan for your salon’s launch, ensure all aspects of your business are ready, from staff training to inventory management.

A successful launch includes a memorable grand opening event that generates buzz and attracts new clients, ultimately contributing to your salon’s success.

Preparing for Opening Day

Prior to opening day, ensure your staff is well-equipped with necessary training and your inventory is well-organized. This includes training in customer service, product knowledge, and safety protocols.

Proper organization and preparation will help ensure a smooth and successful launch, setting the stage for your salon’s future success.

Grand Opening Event Get in Front of Business News Daily

A grand opening event is an excellent opportunity to showcase your salon and generate excitement among potential clients. Contact the news or local media channels for coverage to get in front of a ton of new people. Here are some tips to plan a memorable event:

Offer refreshments, discounts and giveaways to guests.

Organize activities that highlight your salon’s unique offerings.

Promote your grand opening event through social media, email campaigns, and word of mouth.

Opening a salon is an exciting and rewarding journey. By following this comprehensive guide, you’ll be well on your way to launching a successful salon that reflects your unique vision and serves your community with exceptional service. Remember, preparation is key, so invest time in planning, training, and marketing to ensure your salon’s long-term success.

Frequently Asked Questions

Is owning a salon profitable.

It appears that owning a salon can be profitable, but may not be the most lucrative business. How much you can make depends on the salon business model you choose.

The average salon profit is 8.2%, but it can range from 2-17%. Success in a salon requires a combination of effective hairstylist recruitment and business management.

How much money should you have to start a hair salon?

Starting a hair salon typically requires an investment of at least $40,000 for taking over an existing salon or up to $500,000 to build one from the ground up.

What are some essential steps to take before opening a salon?

Before opening a salon, it is essential to create a business plan , obtain necessary licenses and permits, select the perfect location, design and equip the salon, assemble your team, and market the business.

How can I effectively market my salon?

Tap into both online and offline marketing channels. Social media, local ads, collaborations with other businesses nearby, and referral programs, help to effectively market your salon.

What should I consider when choosing a location for my salon?

When deciding on a location for your salon, think about the foot traffic, surrounding businesses, and potential for growth in the area. Make sure to research thoroughly to find the best spot for your business.

Best of luck to you in new salon ownership!

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Starting a Hair Salon Business: A Step-by-Step Guide

Are you a trendsetter with an eye for style and a passion for beauty? If so, starting your own hair salon business might be the perfect venture for you. Turning your love for hair into an effective business is an exciting endeavor that requires careful planning, dedication, and a flair for creativity.

From crafting your salon’s unique identity to attracting a loyal clientele, here’s a step-by-step guide to help you kickstart your journey in the world of hairdressing.

Table of Contents

Dreams and Visions

Close your eyes and imagine the hair salon you’ve always dreamed of. What kind of atmosphere do you want to bring to life? What services will make it stand out? Begin by clearly defining your vision. This vision will be your guiding light as you navigate the steps of launching your hair salon. Whether you’re aiming for a sophisticated and upscale ambiance or a friendly and cozy vibe, the environment you create will shape the lasting impressions your clients take away.

Start by envisioning the emotions you want your clients to experience when they walk through your doors. This sense of direction will be your compass as you tackle the practical aspects of getting your hair salon up and running. Regardless of whether you’re striving for an elegant and refined setting or a relaxed and approachable atmosphere, the backdrop you establish will play a pivotal role in the memories your clients form.

Market Research

Before you take the plunge, it’s important to do some homework on your local market. Get to know the people who might be interested in your salon. What do they like and what do they need? Take a close look at the other salons around – what are they doing that seems to be working, and how can you set yourself apart? This information will help you fine-tune your services and make sure you catch people’s attention.

Craft a Business Plan

Think of a business plan as your navigation guide. It’s like having a map that shows you how to get where you want to go. Lay out the structure of your salon, the services you’ll offer, how much you’ll charge, who you’re trying to reach, and how you’ll let them know about your salon. It’s also important to estimate how much money you’ll need to start and run your salon, including things like equipment and bills.

Beauty Salon Place

Picking the right spot for your salon is really important. Think about how many people walk by, how easy it is for them to get there, and how close it is to the people you want to visit. Being in a busy spot near stores or where people live might be just right. Your salon’s spot should show what it’s like and be convenient for the people who might come.

Read more about: Symphony of Space: Harmony in Beauty Salon Floor Plan Composition

Legalities and Licensing

Steer through the legal stuff. Get your business officially registered and gather the licenses you need. Stick to the rules about health and safety that are set. Depending on where you are, you might also need special papers to offer services like coloring hair or using chemicals.

Dealing with the legal aspects is important. Go through the process of getting your business registered officially and acquiring the necessary licenses. Make sure to adhere to the health and safety regulations that are in place. Depending on where you’re located, you might need specific certifications to offer certain services like hair coloring or treatments involving chemicals.

Stylish Interiors

Create a space that’s attractive and matches your salon’s style. Think about how it looks – the decorations, colors, and arrangement should make people feel comfortable. Spend on good furniture, chairs that are cozy for styling, and mirrors that show well. Keep in mind, the surroundings you make add to the entire experience.

Craft an environment that’s appealing and in line with your salon’s theme. Think about how the space will look – the decorations you choose, the colors you use, and how you arrange everything should make people feel at ease. Spend on getting good-quality furniture, chairs that are comfortable for clients, and mirrors that provide good lighting. Keep in mind, the setting you create plays a part in shaping the overall experience.

Equipment and Products

Get all the important things you need for your salon – like really good scissors, hairdryers, and stuff for styling hair. Team up with suppliers that are well-known to make sure your salon gives great services. Think about using products that are good for the environment or don’t harm animals, so you can attract more types of customers.

Equip yourself with the necessary tools for your salon – high-quality scissors, hairdryers, and products used for styling. Collaborate with reliable suppliers to ensure your salon delivers top-level services. Consider incorporating eco-friendly or products that don’t involve animal testing, as this can make your offerings appealing to a broader range of clients.

Read more about: Sunlit Profits: Potential of Tanning Salons

Building Your Team

Putting together the best team is crucial. Search for hair stylists who are licensed and really good at their job. It’s important that they also believe in the same things your salon stands for and looks like. Being really good at treating customers well is also a big deal. The way your team interacts with customers shapes the whole experience in a big way.

Creating your team is a big deal. Find licensed hair stylists who are skilled and enthusiastic. They should match the values and the look of your salon. Remember, the way your team members treat customers plays a huge role in how the whole experience comes together.

Grand Opening Spectacle

Kick off your salon with a big splash. Arrange a grand opening event to showcase your services to the local community. Provide special offers or free consultations to catch the attention of potential customers. Social media platforms can play a significant role in spreading the news and generating anticipation for the big day.

Marketing Magic

Read more about: Style Reimagined: Fresh Hair Salon Grand Opening Concepts

Client Loyalty Programs

Client Loyalty Programs are designed to show appreciation to customers who consistently choose a particular business for their needs. These programs offer various benefits to valued clients, encouraging them to stick with the brand. One common approach is through membership discounts, where loyal customers receive special reduced prices on products or services. Businesses might also employ referral incentives, where existing customers are rewarded for bringing in new clients.

By implementing these loyalty programs, companies aim to cultivate a steady and enduring customer base. This is crucial for the sustained growth of the business over time. When customers feel valued and enjoy special privileges, they are more likely to remain loyal. This consistency in customer patronage provides a stable foundation for the business, fostering trust and ongoing positive relationships.

Continual Education

By attending these educational opportunities, your team gains insights into fresh methods and approaches, which can be applied to the services your salon offers. This ongoing learning process ensures that your salon remains relevant and attractive to clients. People are drawn to innovative and modern services, which can set your salon apart from competitors.

Continuous education not only benefits your team but also contributes to the overall growth of your salon’s reputation. It showcases your commitment to excellence and dedication to providing the best possible experience to clients. This investment in learning leads to higher customer satisfaction and loyalty, which ultimately strengthens your salon’s position in the industry.

Feedback and Adaptation

Creating an open dialogue with your clients is essential. Encourage them to share their thoughts openly, whether positive or constructive. This dialogue helps build trust and a stronger relationship between your salon and its clients. It also gives you a chance to learn from any mistakes or shortcomings and implement changes to prevent them from happening again.

Financial Management

Effective Financial Management is essential for the stable growth and health of your business. It involves carefully overseeing your financial situation, including how much money comes in (revenue), how much goes out (expenses), and the difference between them (profit margins).

Budgeting is a key aspect of financial management. It means planning how you’ll use your money in the most efficient way. Allocating your resources wisely ensures that you’re not overspending in certain areas, which can lead to financial troubles.

By managing your finances well, you’re setting up a strong foundation for growth. Sustainable growth means your business can expand without risking financial instability. This involves making sure that the money you’re earning is greater than what you’re spending and that you have a financial buffer for unexpected situations.

Passion and Perseverance

The path of starting a salon isn’t always smooth; you’ll encounter obstacles that might test your resolve. However, your unwavering passion will help you overcome these challenges. Passion is like the fuel that keeps your determination burning bright, inspiring you to find solutions and keep moving ahead.

Starting a hair salon is not just about cutting and styling hair – it’s about creating an experience that transforms the way people feel about themselves. By combining your creative vision with business acumen, you can build a salon that becomes a hub of beauty, self-expression, and connection in your community. So, grab those scissors and start shaping your dream into reality – the world of hair awaits your magic touch.

Frequently Asked Questions

Q: how do i go about selecting the right location for my hair salon business.

A: Choosing the ideal location involves assessing foot traffic, accessibility, and your target demographic. A bustling area near shopping centers or residential neighborhoods often proves advantageous. Your salon’s setting should align with its atmosphere and cater to your intended clientele.

Q: What licenses and certifications are necessary to start a hair salon business?

Q: what are effective marketing strategies for attracting customers to a hair salon business.

A: Creating a strong online presence through a professional website and active social media profiles is essential. Share high-quality visuals of your work, engage with your audience, and offer promotions to entice potential clients. Encourage satisfied customers to leave reviews and leverage word-of-mouth referrals to build your reputation.

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

Hi! I am Shawn and I am a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online salon business resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a salon business owner, I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.

Salon Business Plan Templates

Put Your Cosmetology and Barbing Expertise to Good Use by Starting a Hair Salon, Nail Salon, or Beauty Salon! Start Planning for It Using Our Free Salon Business Templates on Template.net! They Feature a Complete Business Plan Outline, Including an Example Cover Page, Executive Summary, and Management Strategy. Download Now!

• Salon Templates
• Salon Billboard
• Salon Brochure
• Salon Business
• Salon Business Card
• Salon Business Plan
• Salon Flyer
• Salon Price List
• Salon Rack Card
• Salon Rollup Banner
• Salon Voucher

Are you planning on starting your own cosmetology business? Or you want to revamp your hair and nail salon business venture? If yes, then you've come to the right site! Starting or improving your salon business can be tricky if you don't know what ropes and courses to take. We offer high-quality and professional templates, as well as ways on how you can improve your business strategies. Your salon and cosmetology business will surely reach its goals through a Salon Business Plan. We offer fully customizable and highly editable salon business plan templates , available for download through Google Docs , MS Word , and Apple Pages . Get yours now!

What Is a Salon Business Plan?

A salon business plan is a document that states in detail the business strategies, various data analysis , summaries, and statements which will be used to propel the salon business forward. It states the goals and mission of a certain salon business and on how these goals will be realized and put to action.

How to Write a Salon Business Plan

A beauty salon is an establishment where a hairdresser, beautician, or couturier conducts business. Beauty professionals and cosmetologists offer various pampering and enhancement services to people of all genders. There are different kinds of salons that cater to different services for nails, hair, makeup, among other services.

A salon should always innovate and keep up with the trends and new styles. To keep the salon business afloat, a business plan must be created to define the nature of business. If your aim is to create a complete and comprehensive business plan outline , read through the guide below.

1. Read and Conduct a Thorough Research

Understanding the process of research will propel the salon business to greater heights. Even in small business ventures, a good amount of research will change and improve the ways of conducting business. Research must always be of high quality in order to produce knowledge, ways, and means applicable in the drafting of the salon business plan. Reading different materials from reliable online and offline sources to gather up verified and credible information is a good way to start.

2. Start with the Executive Summary

The executive summary is the first vital part of the business plan. It offers a synopsis of your overall salon business plan and highlights the vital points you want to address in the rest of your document. In the executive summary, the company information, business description, mission, and vision statement must all be included. Add in also the competitive edge of the salon from its competitors. Every detail must be written clearly and concisely because it serves as an advance organizer for the overall plan .

3. Target your Market

Identify the people who will benefit from your beauty salon and pampering services. Conducting a target market analysis will help you identify the basic customer demographics, trends, and the newest and hottest styles. Identifying the trend means knowing what in or out in the industry. When you have done the survey with your target market, interpret the data then figure out ways on how to reach out to them.

4. Analyze your Competitors

Your business plan must include basic information about the competition. This part is important because it will encourage you to step up your game and strategies. People go to salons that are tried, tested, and trusted. Be the salon that will be the talk of the town, to draw in more eager salon patrons. A SWOT analysis (strengths, weaknesses, opportunities, and threats) must also be performed to determine the problems and identify possible solutions in the overall salon workflow.

5. Write the Marketing and Operations Strategies

The marketing strategy section should explain how your salon business will penetrate and appeal to the target market. Write in the details about how your company plans to introduce the desired image and branding strategy. The marketing and operations strategies must identify all the pertinent requirements in realizing the vision. A time table of scheduled events must also be added to map out all activities.

6. Write Down Projected Financial Statements

This part of the business plan involves the salon operator's financial capability and funds to put the planned strategies into action. The projected financial statement will assess the sales forecast, balance sheets , and cash flow analyses .

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895 Post Rd

Darien, CT 06820

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