writing a salon business plan

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.

Try GlossGenius free for 14 days!

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.

[CTA_MODULE]

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.

Join Our Genius Newsletter

Get the latest articles, inspiring how-to’s, and educational workbooks delivered to your inbox.

Download Now

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

Girl standing on growing arrows and looking through binoculars. Woman searching for opportunity or job flat vector illustration. Business strategy, goal, pathway, career concept

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

financial section, as an integral part of a salon business 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.

Salon Marketing Strategy to Get From Clicks to Customers

Barbara Stankovic
September 11, 2024

5 Effective Ways to Optimize Salon Scheduling

Tijana Cuviza
September 6, 2024

29 Salon Marketing Ideas to Boost Your Business

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.

Owning a Hair Salon: Your Launch Guide

hair stylist at salon front desk on laptop

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.

stylist and client choosing hair dye color from a book

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

Share Article Online:

Follow us on Instagram

Most Popular

Understanding Monthly Expenses for a Hair Salon (+ Free Expense Sheet)

6 Tips for Naming Your Salon Business

tan leather salon chairs and blue back wall

How to Professionally Lay Out a Salon

How To Elevate Your Clients’ Salon Experience with Amenities

Sign-up for our newsletter, related posts.

As a hair salon owner, you must spend money to make money. But how much should you spend, and what should you spend it on? Your salon’s success depends on how you manage monthly expenses. 

The right hair salon name idea will communicate your brand identity and help you attract customers who are interested in your services and the client experience you and your stylists offer.

Knowing how to lay out a salon is a must for owners. A good design can make a real difference to your employees and customers. You need to consider certain factors before you invest in major changes.

Salon amenities show that your business is willing to go above and beyond to treat your clients. It provides them with experience outside of the services they’re paying for.

Let's Connect

We’d love to learn more about your business! Give us 20 minutes and we’ll show you how SalonBiz can help you crush your goals.

3601 Walnut St. Unit 400 Denver, CO 80205
1.888.809.2802
[email protected]
Hardware Requirements
IP Update Request
Privacy Policy
Terms of Use
Patron Terms

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Hair And Beauty Salon Business Plan

Start your own hair and beauty salon business plan

Trend Setters Hair Studio

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

There is a need for a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship.

We plan to supply services and products that enhance our clients’ physical appearance and mental relaxation.

We will be targeting male and female clients who are fashion conscious and have disposable income. Our clients are mostly women, but we will make sure to include men who fit the criteria as well

Competition

There are a number of salons like ours, but they are mainly in the very high income parts of MyTown and surrounding areas. We do not intend to compete with these so called “Day Spas.” We wish to offer a middle ground for those clients who can’t quite afford those high-end luxury salons.

Trend Setters will, upon commencement of operations, sell a wide range of beauty services and products. We will provide quality hair, nail, and skin services, along with top lines of beauty products. What will set Trend Setters apart from the competition is our commitment to providing all of these services in one convenient location.

Expectations

The forecast shows small profits leveling out in the third year. We believe this is realistic, even conservative. Of course we will be watching actual results on a monthly basis, and revising the forecast as necessary.

Financial Highlights by Year

Financing needed.

We plan on needing $60K owner’s investment and getting a $50K vendor financing to purchase equipment.

Starting costs include $50K cash cushion, $9K starting expenses before launch, and $53K tangible assets at launch.

Problem & Solution

Problem worth solving.

There is a demand for high fashion haircuts, manicures, and pedicures at reasonable prices. Men and women should not need to sacrifice their essentials to get a treatment that makes them feel good about themselves.

Our Solution

Trend Setters is a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at a reasonable price/value relationship. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work.

Target Market

Market size & segments.

The market is our town, middle class, mostly women, so largely moms, working moms, and singles.

We’re not doing formal market research because we know this market pretty well and we’re comfortable with market prospects in our town. We’ve been in this business for decades now. If we execute right, our customers will come in as we bring in our beauticians and barbers.

Current Alternatives

We’re well aware of a lot of competition, existing salons, all over town. We are not going to try to compete with the expensive spa salons around, with visibly fancy locations; and we are going to look nicer and price above the less fashionable strip mall and in-home options.

We’re not pretending to be unique. We intend to bring in loyal customers because we are good people, easy to work with, good at what we do, friendly, and helpful.

Our Advantages

Trend Setters wants to set itself apart from other beauty salons that may offer only one or two types of services. Having come from such a salon, Curley has realized, from talking with her clients, that they desire all of the services that we are proposing, but they remain frustrated because they must get their hair done at one place, and nails done at another. Although the focus of Trend Setters is hair services, we do wish to offer our clients the convenience of these other services in one location.

There are a number of salons like ours, but they are mainly in the very high-income parts of MyTown and surrounding areas. We do not intend to compete with these so-called "Day Spas." We wish to offer a middle ground for those clients who can’t quite afford those high-end luxury salons.

Our business atmosphere will be a relaxing one where clients can kick back and be pampered. Soft drinks will be offered to clients as they enter for service. Televisions will be located in the waiting and hair-drying area.

Keys to Success

The keys to success in our business are:

Location: providing an easily accessible location for customers.
Environment: providing an environment conducive to giving relaxing and professional service.
Convenience: offering clients a wide range of services in one setting, and extended business hours.
Reputation: reputation of the owner and other "beauticians" as providing superior personal service.

Marketing & Sales

Marketing plan.

We anticipate regular steady social media presence, in Facebook and Twitter. Our experience has shown that social media is the best advertising for this type of business. We will, however, run specials occasionally. We will also ask clients for social media referrals, and reward them with discounted or free services depending on the number of clients they bring. We will also offer discounts to the new clients who have been referred.

We expect income to increase steadily over the next three years, as the reputation of the salon, its stylists and services become apparent to the general public. Second year revenues also anticipate the addition of one new stylist.

Locations & Facilities

The salon will be located in a retail strip mall at 1234 Stylish Road, MyTown. The salon will utilize 1,540 square feet. The location is strategically situated on one of the busiest streets in MyTown. It is a high profile area, with easy access from all parts of town.

Milestones & Metrics

Milestones table.

	Milestone	Due Date
		Sept 14, 2018
		Sept 24, 2018
		Oct 01, 2018
		Nov 12, 2018
		Nov 30, 2018

Key Metrics

The key metrics that will make this business a success is:

Average revenue per client per month.
Average breakdown revenue from previous clients vs. revenue from new clients. We’ll develop specific standards as we go, so first we track. This will show us repeat business and new leads from word of mouth.
New clients from word of mouth. We’re going to have the discipline to ask new clients how they heard about us. As we develop the business we’ll track this metric and see how the different people compare.
Facebook likes and Twitter follows. We’ll develop standards as we develop the business. We need experience to see how this works.

Ownership & Structure

Curley Comb, co-owner with Roller Comb, Jr., co founded and co own this llc

Management Team

Curley Comb, co-owner with Roller Comb, Jr., her husband, has worked in a prestigious, upscale salon in MyTown, Texas for the past two years. Curley has created a large client following through hard work and dedication. Curley, and her talented team of beauticians, has what it takes to make this venture an extremely successful one. We expect our growing reputation to lead to new clients and beauticians to support our anticipated growth.

Personnel Table

	FY2019	FY2020	FY2021
Stylist 1	$52,242	$54,000	$54,000
Barber	$49,440	$54,000	$54,000
Stylist 2 (0.78)	$19,200	$60,000	$60,000
Owner	$60,000	$75,000	$93,750
Receptionist	$30,000	$31,500	$33,075
Totals	$210,882	$274,500	$294,825

Financial Plan investor-ready personnel plan .">

Key assumptions.

We’ll be using a full commission model with stylists and barber getting 60% commission on revenue. Industry average runs 45-65%. We’re on the high end because we are not offering a guaranteed base. This is what we’re used to. The owner will take a straight salary plus dividends on profits.
We’ve looked at the booth rental model but we’re used to commission and that creates a more orderly process for payments too, with all stylists able to use our credit card account.
There can occasionally be issues with commission base related to reporting revenue, but we are a small salon with the owner mostly present.
We project revenues lower than average over the first few months, and then stable. We anticipate annual increase to stay steady throughout the following year to account for the normal flow of new clients coming into the salon. Estimates for sales revenue and growth are intentionally low, while anticipated expenses are exaggerated to the high side to illustrate a worst-case scenario.
Our direct costs are mainly stylist and barber commissions plus direct costs of the products we intend to sell, plus an estimate for the ongoing cost of products, supplies, etc.
Product sales are a minimal part of our market. We are not quite sure how much revenue will be derived from products, so we took a low-ball approach and estimated sales of $800 a month. Also in the sales projections table are services such as nails and massages. We are not quite sure how much revenue these two services will generate. We are certain that in time these services will be a large part of our revenue, but to err on the conservative side, we estimate revenues from these services to be only $1,500 a month for the first year.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

We estimate initial purchase of $50,000 in equipment plus $1,000 for starting inventory and $2,000 for other current assets (supplies mostly) and $9,000 in initial loss for expenses incurred before launch. These include legal, location fix-up, early marketing expenses, branding, logo, and social media.

We also estimate needing $50,000 cash cushion when we start.

Total starting costs, therefore, are $9K in expenses plus $103,000 in assets including $53,000 tangible assets and $50,000 cash in the bank.

Sources of Funds

We anticipate $60,000 in owner investment from owner savings, which shows up as paid-in capital in the initial balance; plus a 5-year $50,000 vendor/manufacturer loan to finance initial equipment.

Projected Profit & Loss

	FY2019	FY2020	FY2021
Revenue	$336,570	$427,600	$437,600

Direct Costs	$146,214	$200,400	$200,400

Gross Margin	$190,356	$227,200	$237,200
Gross Margin %	57%	53%	54%
Operating Expenses
Salaries & Wages	$90,000	$106,500	$126,825
Employee Related Expenses	$13,500	$15,975	$19,024
Rent	$18,000	$30,000	$33,000
Marketing	$6,731	$8,552	$8,752
Amortization of Other Current Assets	$0	$0	$0
Total Operating Expenses	$128,231	$161,027	$187,601

Operating Income	$62,124	$66,173	$49,600

Interest Incurred	$1,832	$1,457	$1,065
Depreciation and Amortization	$10,000	$10,000	$10,000
Gain or Loss from Sale of Assets
Income Taxes	$5,029	$5,472	$3,853
Total Expenses	$291,307	$378,355	$402,920
Net Profit	$45,263	$49,245	$34,680
Net Profit/Sales	13%	12%	8%

Projected Balance Sheet

	Starting Balances	FY2019	FY2020	FY2021
Cash	$50,000	$87,971	$107,163	$91,584
Accounts Receivable		$0	$0	$0
Inventory	$1,000	$1,000	$1,000	$1,000
Other Current Assets	$2,000	$2,000	$2,000	$2,000
Total Current Assets	$53,000	$90,971	$110,163	$94,584

Long-Term Assets	$50,000	$50,000	$50,000	$50,000
Accumulated Depreciation		($10,000)	($20,000)	($30,000)
Total Long-Term Assets	$50,000	$40,000	$30,000	$20,000

Total Assets	$103,000	$130,971	$140,163	$114,584

Accounts Payable	$2,000	$1,395	$1,906	$2,040
Income Taxes Payable		$2,341	$1,372	$966
Sales Taxes Payable		$192	$192	$192
Short-Term Debt	$9,220	$9,595	$9,986	$10,393
Prepaid Revenue
Total Current Liabilities	$11,220	$13,523	$13,457	$13,591
Long-Term Debt	$40,780	$31,185	$21,198	$10,805
Long-Term Liabilities	$40,780	$31,185	$21,198	$10,805

Total Liabilities	$52,000	$44,708	$34,655	$24,396

Paid-In Capital	$60,000	$60,000	$60,000	$60,000
Retained Earnings	($9,000)	($19,000)	($3,737)	($4,492)
Earnings		$45,263	$49,244	$34,681
Total Owner’s Equity	$51,000	$86,263	$105,508	$90,188

Total Liabilities & Equity	$103,000	$130,971	$140,163	$114,584

Projected Cash Flow Statement

	FY2019	FY2020	FY2021
Net Cash Flow from Operations
Net Profit	$45,263	$49,245	$34,680
Depreciation & Amortization	$10,000	$10,000	$10,000
Change in Accounts Receivable	$0	$0	$0
Change in Inventory	$0	$0	$0
Change in Accounts Payable	($605)	$511	$133
Change in Income Tax Payable	$2,341	($969)	($406)
Change in Sales Tax Payable	$192	$0	$0
Change in Prepaid Revenue
Net Cash Flow from Operations	$57,191	$58,787	$44,408
Investing & Financing
Assets Purchased or Sold
Net Cash from Investing
Investments Received
Dividends & Distributions	($10,000)	($30,000)	($50,000)
Change in Short-Term Debt	$376	$391	$407
Change in Long-Term Debt	($9,595)	($9,986)	($10,393)
Net Cash from Financing	($19,220)	($39,595)	($59,986)
Cash at Beginning of Period	$50,000	$87,971	$107,163
Net Change in Cash	$37,971	$19,191	($15,578)
Cash at End of Period	$87,971	$107,163	$91,584

The quickest way to turn a business idea into a business plan

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

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Get Started

Home >> #realtalk Blog >> Manage a business >> How To Write a Salon…

How To Write a Salon Business Plan

By Homebase Team

So you’re thinking of opening a salon business—congrats! Gearing up to owning your own business is a huge step.

But if you’ve never owned a salon before or are simply looking to give your existing business a refresh, you’re probably thinking, “Where do I even start?” Well, the first step is to write a salon business plan.

What is a business plan for a salon?

A salon business plan is a written document that covers your business goals and how you’re going to reach them.

Every business plan looks different. But for a salon, your business plan will likely include details like who your target customer is, where your salon is going to be located , what salon services you’ll offer, and more.

Why you need a business plan for your salon

As a salon owner, the thought of writing a detailed business plan might immediately put your stomach in knots. But we promise that the time and effort you take to put a business plan together for your salon will pay off in spades.

Here are some reasons why you should have a business plan for your salon.

To prove your salon business is a good—and profitable—idea

As entrepreneurs, we often have a million great ideas. But a new business is a big commitment and investment.

Your decision to launch a salon is most likely a great one. But a business plan doubles as a gut check to make sure that you have a solid plan in place. This way, you can open your salon doors with confidence knowing that you’re almost guaranteed to be a success.

To help you reach your short and long-term salon goals

What are your business goals? What steps do you need to take to reach them? How long will it take to reach those goals?

A well-written business plan answers these questions and more. It’s essentially a roadmap that answers all and helps outline how you’ll reach your business goals. Then as you open and grow your business, you can look back and make sure you’re on track!

To help you get funding (and other loans)

Banks and investors often want to see a business plan before they provide you with funding. Having a business plan shows that you’ve done your research, have a plan in place, and that you’re less likely to be a risk.

Even if you don’t need a loan or an investment, financial products like credit cards can be hard to come by if you don’t have a business plan.

To determine your revenue and labor costs

Salons often need multiple stylists and administrative staff. Depending on your goals and the size of your salon business, a business plan can help you determine how many employees you need to hire and train to serve your customers.

Without forecasting your labor costs, you can find yourself with too many customers and not enough workers—or vice versa.

Things to consider before you start writing a business plan for your salon

Before you can start writing your business plan, it’s time to do a bit of brainstorming and research. There are some key questions you’ll want to ask yourself before you start putting pen to paper.

Where will your salon be located?
What experience do you have that will help you grow your business?
Are there similar salons in your area?
Is there something that will make your business stand out from other salons?

Once you’ve spent some time thinking about these factors, it’s time to get writing.

How to write a salon business plan in 7 steps

Here’s a simple step-by-step breakdown of how to write a business plan and the important tidbits you need to know as you get started.

1. Executive summary

The first thing anyone will read in your business plan is the executive summary. Think of it like an elevator pitch. It’s a brief summary that covers all the most important details so the reader wants to learn more about your business.

As a general rule, your executive summary should cover:

A short overview of your business venture
Your salon mission or vision
Your short and long-term business goals
Highlights around why \ your salon will be successful

2. Company overview and description

This section should be an overview of your company and what makes it unique. Who are you? What do you do? Why do you do it?

Don’t be afraid to dive into your background and the circumstances that led to you wanting to start your salon business. This is your opportunity to tell your story and share what makes you and your business special as an entrepreneur.

3. Market analysis

There are almost a million salons in the US—and that only covers hair salons. The thing about salons is that they can be similar and still be successful. But it’s important to understand how your particular salon will stack up. A market analysis looks at all the competing salons in your region—and beyond—to help you understand your positioning in the market. This then influences everything from your pricing strategy, your service offering, or even your location.

For example, in your market analysis, you might find that you fall into the category of a premium salon, which means you’ll need to target a more affluent market. Or you might find yourself looking in an oversaturated area, so you’ll want to choose a location with less competition.

4. Salon business offerings

Not all salons are alike. For example, your salon may specialize in blowouts. Or you may have a full-service nail salon.

Before you open, you should have a clear understanding of the services and products that your salon business might offer. Think of this section of your business plan as a menu of services that your potential customers can choose from.

5. Salon operations and management

This is where you’ll talk about the operational side of your business. Some things to think about around salon management 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 salon management software will you use?

6. Marketing and public relations (PR) strategies

As much as we wish customers would appear out of thin air, for the most part, you need to drum up excitement for your business. That’s marketing.

In the marketing section of your business plan, you’ll want to Include details such as your brand messaging, how you’ll reach potential customers, and what marketing and PR investments you plan to make.

7. Financial projections

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

When writing a business plan, you need to review your short- and long-term financial projections. This is essentially an estimate of how much money you expect to spend and make over the course of the next few years.

The goal is to show that you’ll have a profitable business. And if not, it allows you to tweak your business strategy so you can create a financial plan that you feel comfortable with.

Free salon business plan template

Need some help getting started?

We’ve put together a free template that covers all the basics. Use this as a starting point, so you know that your business plan is comprehensive and includes everything you need ahead of opening day.

Download your free salon business plan template here.

Business tools as sharp as your shearing scissors

Once you have a salon business plan, it’s time to make a plan for hiring and managing your employees. Homebase is the all-in-one employee management tool loved by 100,000 + salons and small businesses.

With Homebase, you can:

Schedule employees for your salon in just a few clicks.
Track employee hours and run payroll from one app.
Stay on top of employee compliance and labor laws with expert HR guidance.

Get the all-in-one employee management app that’s a (hair) cut above the rest.

Salon business plan FAQs

Why should you create a business plan for your salon even if you aren’t looking for financing.

A business plan is more than just a document to help you secure financing for your salon business. It can help you organize your business strategy and outline the steps needed to reach your business goals.

What is the best way to create your salon business plan?

The best way to create your salon business plan is by following these steps:

Write an effective executive summary.
Create a company overview and description.
Conduct a thorough market analysis.
Outline your services and business offerings.
Decide how you want to manage your salon business.
Make a plan for marketing your business.
Put together your financial projections.

You can also use our free salon business plan template to get started.

Remember: This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

August 22, 2024

How to open a yoga studio that stands out: an in-depth guide

Thinking of starting your own yoga business, but unsure exactly how to open a yoga studio that will succeed? You’re…

July 15, 2024

How To Start A Small Business in 2024: 12 Simple Steps To Jump Start Your Dream

Considering starting a business in 2024? You’re not alone. There are over 6 million small businesses in the US, and…

Restaurant Business Plan Template: Grow Your Business the Right Way

Planning the best way forward for your new restaurant can be a daunting task. Whether you’re living the dream of…

Writing an Effective One-Page Business Plan: What You Need to Know (+ Free Template)

If you’ve started—or are starting—a small business, you’ve probably heard the words ‘business plan’ thrown around. That’s because a business…

July 3, 2024

Your go-to checklist for starting a small business (+ free download!)

Maybe it all started with your EZ bake oven marketing plan, and it’s been your long-time dream to start a…

June 26, 2024

How to Start a Construction Business in 8 Easy Steps

Being able to build something from the ground up is an incredible skill: a skill you can monetize into your…

Subscribe to our newsletter

Looking for ways to stay up to date on employment laws and small business news?

Homebase makes managing hourly work easier for over 100,000 local businesses. With free employee scheduling , time tracking , and team communication , managers and employees can spend less time on paperwork and more time on growing their business.

Hiring & onboarding
Team communication
Employee happiness
HR & compliance
Integrations
Food & beverage
Beauty & wellness
Medical & veterinary
Home & repair
Hospitality & leisure
Education & caregiving
Contact sales
Become a Partner
Careers – We’re hiring!
#realtalk Blog

Small Business Trends

How to create a salon business plan.

This is a great time to be in the salon business. With the world starting to slowly open up, demand for salon services is picking up again. But it’s also a highly competitive business. Whether you are in the beauty salon or hair salon business, to succeed you need a solid business plan that can help you address customer demands and achieve a competitive edge.

What is a Salon Business Plan?

A salon business plan is your blueprint to guide you through the process of starting and managing your establishment. It provides a roadmap to set up, structure and run your business. In the startup phase, the salon business plan helps you outline your key objectives with the business. It also helps you set a strategic direction for the salon.

Once you enter the growth phase, the plan helps you showcase the value of your business to potential investors and new partners.

A strategic document, the business plan is structured in different parts that include a cover page, executive summary, a mission statement and more.

Why Do I Need a Salon Business Plan?

Imagine making a huge investment in a new salon that goes bust in a couple of months because of its poor location. A concrete business plan can help you avoid making such strategic mistakes when you are in the process of going through how to open a hair salon . That’s because a business plan provides a realistic growth plan based on relevant parameters. Who is the target audience? How many people do you need to run a successful salon? What’s your unique selling point? Your business plan will make sure you have the answers before you take the next steps.

A good business plan is not just essential in the early stages of your business. It is relevant in the future as well. For example, if you want to expand your business and start a franchise you may need investment. Potential investors or business partners will be interested in understanding your vision and where you think your business will be in the next couple of years. This is where your business plan will be a key document to attract funds.

Getting Started

Before you put your ideas into an actionable document, you need to pause and consider a few things. First, you need to ask yourself why you’re getting into the business. What do you bring to the table? Do you have the passion and the expertise to drive a successful salon business?

A clear understanding of your personal motivations will help you create a solid plan for your salon business.

Writing a Salon Business Plan

Ready to write a business plan? Below you will find a comprehensive guide to writing a salon business plan.

First, you’re going to need a cover page that captures the basic information about your business. It should include your salon’s name, address and phone number as well your name and contact information.

The cover page is useful when you’re trying to provide key information about your business. But you may also choose to skip this since you will share the information in the salon description section.

A table of contents prepares the reader for what’s to come in the business plan. It’s a great way to draw interest and follow a structure for the document.

Typically, the table of contents includes Executive Summary, Vision and Mission statement, Company overview, Market analysis, Competitor analysis, Products and Services and Marketing strategy.

Executive Summary

The Executive Summary section describes your salon and what makes it successful. In many cases, potential investors do not read beyond this section to make assumptions about a business. This makes it important for you to make your executive summary both interesting and compelling.

Brevity is key when creating an executive summary. Include high-level growth plans and financial information to hook your reader. If they find the section compelling, they will continue reading for more information.

Mission Statement

The Mission Statement articulates your business purpose. It helps you express why you have set up the salon, what you have to offer and how you deliver value to your target audience. And it captures how you intend to run your business and the core competencies that set you apart.

It also provides an insight into the values that drive your business.

For all the important information the Mission Statement conveys, it needs to be short and simple enough to be understood. Let’s take an example. Here’s how Starbucks defines its mission statement: “To inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.”

Describe Your Salon

Once you have articulated your strategic vision, you need to provide specific information about your salon. This is where you get into the details about the uniqueness of your business, the problem it solves and the way it’s differentiated from the competition.

Below you will find the specific sections you must include in this part.

Company Description

The company description provides a quick overview of your business. It describes what your company all about and its core values. This section should be brief and straightforward so the readers quickly get some background information.

Company History and Brand Story

When was the company founded? What led to its inception? These are some questions you should try and answer in the Company History and Brand Story section. When describing your Brand Story, try to make it personal. Was there a gap in the market you experienced first hand that led you to start your own salon? Do you see industry trends gaining traction in another city or country that you felt could be the next big thing in your area?

When filling out this section, consider the milestones that you’d want to highlight to your readers. Include those and avoid adding more details that may not mean much to the audience. For example, you do not need to mention the year you bought your first supplies for the salon.

In this section, include information about your salon’s location. Where is it situated? Are there any location advantages to drive people to your salon? For example, if your salon is easy to access by public transport in a town where car parking is a challenge, it may turn out to be an advantage for your business.

Salon Environment

Research shows relaxed customers are willing to pay 10-15% more than tense clients. Salon environment plays an important part in helping clients feel relaxed. And this makes it important for you to focus on creating the right ambiance.

In this section, include information about the salon environment you can offer your clientele. Do you offer a relaxing drink when customers enter your salon? Do you use essential oils or candles for a soothing experience? These are good things to mention in this section.

Convenience

Customers going to a hair or beauty salon expect a hassle-free experience. As a business owner, it pays to focus on this aspect. To start with, is it easy for clients to book an appointment? Does a team member speak another language to communicate with non-native English speaking clients? These are some of the details that will go into this section.

When it comes to the service industry, a positive word of mouth can do wonders for the business. Including information about the reputation of your salon can help you showcase its future potential. How do you communicate your salon’s good reputation? You may include information about highly positive reviews and awards you may have received in the past.

Services and Product Lines

The services and products you offer to your clientele play a huge part in differentiating your salon from competition. That’s why, it’s important to describe the benefits your products and services provide to customers.

In this section, highlight the different services customers can expect at your salon. Mention any new product lines you have on offer. You can also mention if there is any exclusive product line you’re currently developing, along with a timeline.

Hair Salon Services

If you own a hair salon, you can use this section to describe the various services you offer your customers.

Here are some examples of services you can include:

Haircuts and styling
Hair coloring
Hair extensions
Perms and relaxers

Beauty Salon Services

If you own a beauty salon, you can use this section to describe the various services you offer your customers.

What Problem Does the Salon Solve?

As a salon business owner, providing great service to customers at all times is your key business priority. But it cannot be the only goal to differentiate your business. By finding a problem that your salon can solve for your clientele, you can build a truly customer-centric business.

Let’s take an example. A growing number of eco-conscious customers are looking for natural beauty products and services. But they cannot find a salon that can meet their expectations. Is this a problem you can solve for them? This information is useful to showcase how your salon is truly differentiated.

How Does Your Salon Provide a Solution to the Problem?

Identifying a problem to be solved is just the first step. Once you have found the problem, you must figure out how your salon will help solve it for your customers. Otherwise, you will not be able to take advantage of a customer need to offer products and services your clients truly value.

Let’s take the same example and see how your business can provide the right solutions. Eco-conscious customers looking for all-natural products will choose your salon if you can provide an organic product range not tested on animals. You can even go further and offer them a truly organic experience by offering 100% organic snacks as they wait for their appointment.

The information you provide in this section shows you have considered all the steps you need to take to leverage an unmet customer need.

The Salon Business

If you have a salon business that includes both hair and beauty, it’s important to include that information in your business plan. Describe how you manage and operate the two businesses and how they come together to form a business as a whole.

The Hair Salon Business

In this specific section, you can describe the hair salon business in detail. How long have you been running this business? How many people do you employ? What’s the unique selling point? These are just some of the questions you must attempt to answer to provide a clear description of your business.

The Beauty Salon Business

For the beauty salon business section, you can follow the same format as that of the hair salon business. This section needs to be detailed as well to clearly demonstrate how you run this business.

Separate sections for the hair and beauty salon businesses will help you flesh out a comprehensive business plan and explain how the two operate.

Business Organization and Management Model

Your salon business is only as good as the people who help you run it. That’s why it’s important to create a solid organization and management model that highlights all the people who are responsible for your business growth.

The business organization and management model should include the number of employees, their roles, salon partnerships and management structure. It should be transparent in explaining how each employee, partner and vendor play a part in providing customer service and retaining clients for the salon.

Hair Salon Organization Example

In many cases, a hair salon owner has prior experience in the business as a former stylist. And in other cases, the owner may have had experience in a more supervisory role, overseeing the operational side of things. In such a case, the owner may choose to take up additional responsibilities as the salon manager. Other than the owner and the manager, hairstylists play a key role in running the salon.

Other employees may include receptionists, maintenance workers and assistants.

Beauty Salon Organization Example

A beauty salon may have a structure similar to that of a hair salon. The owner may have prior experience as a stylist or as a salon manager. In case of the latter, the owner may continue managing the salon and supervising the staff.

Many beauty salons use a booth rental system to hire employees. According to this system, the stylists are responsible for bringing customers, paying their own taxes, maintaining an inventory and managing insurance, among others. The salon is only responsible for providing a facility where the staff can work.

Multiple Income Stream Revenue Model

The COVID-19 pandemic has been especially hard on service-based businesses such as salons. Many salon owners suffered huge losses leading to an eventual shutdown of their business. The crisis has highlighted the need for multiple income sources to stay afloat. That’s why many salon owners are adding multiple income streams to their business.

But what is a multiple income stream revenue model? And what does it mean for your salon business?

Revenue streams are sources from which businesses earn money. These could be from the sale of goods or through service offerings. For a salon business, the primary source of revenue is service. But there are other sources of income that can prove helpful. For example, if you have a good website and social media presence you can sell ad space to beauty and haircare brands and add an additional income stream. Another example is expanding your services to offer training to other stylists that can bring in extra capital for your business.

By making a revenue plan, you equip your business for the future. You identify opportunities to innovate and create a solid business that aligns with your goals.

Hair Salon Income Streams

As discussed, adding more income streams is a great idea for your business. If you own a hair salon, here are some income streams you can explore:

Subscription model: You charge a fee for a certain period rather than per transaction.
Advertising model: You promote brands both in-store and online.
Freemium model: You offer some services for free and a fee for the “premium” services.
Third-party licensing model: You allow third parties to use your patented product.
Renting/Leasing model: You rent out your assets (products or real estate) for a fee.

Beauty Salon Income Streams

Lets now look at some income streams for your beauty salon business.

Markup revenue model: You buy products from a seller, add your markup and sell them to consumers.
Free-for-service model: You provide services to an audience beyond your traditional clientele.
Affiliate model: You promote products on your social media pages and make a commission based on clicks and sales.
Production revenue model: You build and launch your own line of products.
E-commerce revenue model: You leverage ecommerce to provide an online purchase experience.

Funding for Hair and Beauty Salons

Running a successful salon, of course, comes for a price. And as a small business owner, you may not always have the means to execute your growth plans. This is where funding can support your business goals.

Before seeking funds, it’s important for you to make a financing plan. Start by considering all major expenses. These may include payroll, rent, equipment, inventory and insurance. How much is each component costing you today? Is there a possibility to reduce these expenses without compromising quality? What are your near and long-term business goals? How much do you need to achieve your targets? These are all important questions to ask yourself before you start thinking about securing funds.

Once you have done the math, you can explore these funding sources:

SBA loans: These have low-interest rates and quick payback periods, but require a strong credit score to qualify.
Small business and microloans: These can be up to $50,000, but you’re going to need a concrete business plan.
Alternative lenders: These offer quick access to capital injections. Some options to consider are asset-based loans, term loans and business line of credit.
Equipment funding: These are best suited when you cannot afford to pay for all your equipment in one go.

You can find more funding options here in this article .

Target Market and Customer Analysis

A salon can be a highly profitable business if you provide the right products and services to your customers. But what is the right service for your customers? What do they want to spend their money on? A clear target market and customer analysis will help you understand this better and create a business plan based on real customer needs.

The first step is to gain an insight into who your target audience is. Deep dive into the profiles you can target with your business. What are the market demographics, what do they do, and what type of services do they have in mind? For example, if you are planning to open a hair salon in an area with an African-American population, could you provide expert braiding and weaving services that they will value?

The next step is to understand the market dynamics that will impact your business. Here, you need to do your research well. For example, what are the local area laws and regulations that you must comply with while running your beauty salon? Are there any special permits that you must procure before you open the shop? A comprehensive market analysis will help you find answers and avoid hassles later.

Competition Analysis

A key component of any business plan is thorough competition analysis. This is especially important when you enter the highly competitive salon industry. The first thing you must do is identify all the salons in the area where you want to set up your business.

The next step is to zoom in on each salon and figure out what they have on offer. The more thorough you are in this step, the easier it is for you to zero in on your competitive differentiation. Is there a service none of the salons offer customers today that you can provide? Is there a challenge clients face when choosing the salons that you can solve?

Marketing Analysis and Activities Plan

Because it’s a highly competitive industry, you need a strategy to get the word out and draw customers to your salon. Your marketing analysis will help you design a plan that aligns with your business goals. Built on the elements of market, customer and competition analyses, the marketing plan will help you set realistic goals and metrics to measure success.

The products you offer and the prices of your services are important elements of your marketing analysis. You could have the most exciting products that still won’t sell because their prices are exponentially higher than what your competitors offer. Or you could be selling products that customers don’t want to buy. Your marketing plan will help you find the sweet spot where your products and price points make the most sense for your business — and your customers.

Next, you need to figure out how you can get the word out so you’re able to reach more customers. Here are some potential marketing activities for you to explore:

Offer referral discounts
Tie up with social media influencers
Manage online reviews
Boost social media presence
Sell products online
Partner with local schools, clubs and other business owners
Offer flash sales online
Produce video content on YouTube

Major Targets, Expectations and Milestones to Achieve

The objective of a business plan is to help you realize your goals. And that’s difficult to achieve without a clear outline of your targets, expectations and milestones.

When setting targets, expectations and milestones, it’s important to be realistic. Otherwise, you risk failing to meet your goals. For example, setting a target of adding 5,000 new customers in the first quarter of starting your salon is both ambitious and unrealistic.

If you have additional documents to share more information about your products, services or marketing plan, you may choose to include an appendix. This is an optional section that you may also choose to skip if you feel you have covered everything in the salon business plan.

Tips for Creating a Salon Business Plan

As you can probably tell, creating a business plan takes time, effort and homework. And this applies whether you are looking at how to open a nail salon or other segments in the same industry. Some elements may feel straightforward while others will require you to do research and ask yourself some serious questions about your goals. Below you can find some useful tips to create a business plan for your salon.

Don’t Delay

Before you hit the ground running, take some time to develop your business plan. Do this first because it will save you time and energy later.

Keep the Plan Up to Date

Your business plan needs to be updated from time to time to reflect changing market dynamics and the changes you must make to achieve your goals.

Make Sure Your Business Plan is Focused

You may have ten brilliant ideas to take your business to the next level, but it’s easy to get distracted. Make sure your salon business plan is focused so you know where your priorities lie.

What is the difference between a hair salon and a beauty salon?

Hair salons provide hair care and hairstyling services. Beauty salons provide hair care and additional services related to skin health, foot care, aromatherapy, and facial aesthetics among others.

How do I start a salon business plan?

To get started, make sure you know why you’re getting into the salon business and what are your goals. Figure out how you can add value and what your salon will offer to clients. Once you have the answers, create a salon business plan that should include some sections such as an Executive Summary, Mission Statement, Company Description and Products and Services you can offer.

How much does it cost to start a salon business?

While the costs differ based on location, you should set aside approximately $65,000 to start your salon business. This will cover key expenses such as licenses ($500-$12,000), legal fees ($1,00-$5,000) and equipment ($5,000-$30,000). With a comprehensive business plan, you’ll be able to figure out how much each component will cost you.

How much does it cost to run a salon monthly?

While the costs differ based on the area, you should set aside approximately $6,000 a month to run your salon. Some of your monthly expenses would include insurance ($50-$1,000 a month), marketing expenses ($100-$500 a month), products ($100-$600 a month) and cleaning ($50-$200 a month) among others. With a business plan, you will have a clearer idea about how much you need to spend every month.

Is owning a salon profitable?

The profitability of a salon depends on a number of factors that can be covered in a business plan. If the location and services are right, owning a salon can be profitable in the long run.

What is the best business structure for a hair salon?

For a hair salon, the ideal business structure would include an owner who has prior experience as a stylist or salon manager. Employees may include hairstylists, receptionists, assistants and maintenance workers.

Image: Depositphotos

JD enjoys teaching people how to use ZoomShift to save time spent on scheduling. He’s curious, likes learning new things everyday and playing the guitar (although it’s a work in progress).

Jan 09, 2024

How To Create A Hair Salon Business Plan in 2024 (with Template)

Title Card - How To Create A Hair Salons Business Plan

Starting any kind of business comes with inherent risks.

Many fail in the first year due to mismanagement of finances, lack of brand awareness, or for shifts in the market.

If you’re going to pick a business to get into, it’s never a bad time to open a hair salon . In 2018, hair salons brought in over 46 billion dollars in revenue in the United States. That’s a little less than the entire GDP of the country of Costa Rica.

Needless to say, there’s a lot of opportunity in the hair salon industry. If you’re ready to grab your piece of that 46 billion dollar pie, then you’re going to need a business plan.

Here’s a complete guide to creating a business plan for your new hair salon:

Step-By-Step Instructions to Writing Your Hair Salon Business Plan

A business plan is a crucial step to starting any business. Creating one is an opportunity to put your thoughts, ideas, and goals down on paper and mold them into something more tangible.

Creating a business plan might feel like a daunting task, but it doesn’t have to be if you break it down into smaller steps like these:

1. Write your executive summary

The executive summary is the first page of your business plan and acts as a first impression. Get it right, and people will dig in with enthusiasm. Get it wrong, and you may not get a fighting chance.

At its core, the executive summary elaborates on the focus of your business. It tries to sum everything in a page or less. At a minimum, it’ll include:

Mission statement
Ownership structure
Product and service descriptions
Business plan summary

In plain terms, it says what you hope to achieve, who’s involved, what makes your salon unique, and what value you’ll bring to your customers.

2. Company description

It may feel like you’re repeating yourself from here on out, and you will be to a degree, but it’ll be to bring context to all the details that will follow. You’ll be reiterating the points from your executive summary, but further elaborate to give the reader the juicy details.

With the company description, you’re wanting to provide a snapshot of what people would see if they walked into your salon. You’ll offer up some crucial details like the registered name of the business, history of the company, name of key employees, and your location. In addition, you’ll answer some important questions such as:

Are you explicitly cutting hair? Or are you offering hairstyling services as well?
How about conditioning treatments, blowouts, and hair extensions?
Will you stop at head hair, or will you offer waxing, eyelash, and eyebrow treatments as well?
How about products? Will you sell your styling creams, sprays, and shampoo?

Again, the more detail here, the better because you’re trying to sell an image of the salon at its best.

3. Business goals

Every company, big or small, should have goals. Ideally, they should be specific goals. SMART goals even. SMART stands for specific, measurable, attainable, relevant, and time-bound. A SMART goal for opening and running a hair salon might be:

“ Host a grand opening event over the July 4th weekend that adds 150 people to our email newsletter.”

That’s a short-term goal that’s specific and measurable because you’re measuring email captures. It’s time-bound because of the July 4th date, and it’s relevant and attainable because it helps with marketing efforts and isn’t a farfetched number like 10,000 sign-ups on an open weekend.

In the business goals section, you’ll want to spell out what you’d like to accomplish in the near term and in the long term as well. If you’re seeking investor capital or outside funding, you’ll also explain what exactly you need the money for and how and when you’ll plan to recuperate those funds. This could include expanding locations or service offerings, for example.

Body image - Hairdressers cutting hair in a salon

4. Business management structure

This one is a bit more straightforward because it’s black and white. Your business management structure is something you’ll likely set and forget since it won’t change much. Here, you’ll add a breakdown of who the owners are, what experience they have in the industry, and what legal structure you’ve adopted (LLC, S Corp, etc.).

You’ll also want to outline how many employees you’ll have to start, ownership percentages, and the duties and responsibilities of each role. Getting this sorted out is not only good for investors, but for you as well since it’s possible you’ll have disputes over these decisions later.

5. Product and service offering

In the previous steps, you’ve alluded to what makes you unique and what services you’ll offer, but now it’s time to get even more detailed. It’s not enough to say you’ll offer blowouts, hair coloring, and sell hair products. Tons of salons do that. You want to impress people with how you’ll differentiate yourself.

To illustrate the point, here are some ways a salon could differentiate itself:

Using all homemade organic products that you can’t find anywhere else
Bringing in wine from a local vineyard to offer for free to salon patrons
Offering same-day in-home appointments
Providing free headshots with all appointments

The possibilities are truly endless. Here’s also where you’ll get into pricing, profit margins, and how you’ll receive and possibly distribute the products you’ll use at your salon.

6. Marketing plan

With a new salon, you’ve got to get the word out as soon as possible to bring customers in. Your marketing plan will explain exactly how you’ll build brand awareness. It may even talk about your grand opening.

You’ll need a section on how you’ll develop customer loyalty as well. Will you leverage mailing lists? How about frequent buyer incentives? The more concrete your marketing plan, the more confidence you’ll gain from investors, banks, and employees.

7. Business financials

A good hair salon business plan will provide all the numbers you need to ensure you have the runway to launch and sustain operations while bringing in new customers. It’ll show investors the starting financial health of your business and how you plan to reinvest funds back into the business and repay debts.

Here, you’ll include net profit margins, current liquidity, and accounts receivable turnover ratios . Those specifically tell investors how much profit you’ll keep, how easily you’ll be able to repay debts, and how often you’ll collect on your own debts.

8. Future financial projections

Your goals would ideally be aggressive, but realistic. While you may not create more business plans for your salon, you’ll want to keep up with creating monthly and quarterly financial reports.

They’ll outline expenses, revenue, profit, and provide confidence to your leaders and your investors that things are on track.

9. Appendix

Last, but not least, you’ll include an appendix section for the stuff that doesn’t fit elsewhere. For a salon, this could mean licenses, permit history, contracts, leases, resumes for key employees, credit history, and anything else that comes to mind.

Starting a salon is an exciting adventure that’ll be filled with both ups and downs. The ups will come and go, but being prepared for the down moments is important. That’s where a business plan comes in handy.

Jump to section

How to Write a Business Plan for Your Salon

Apr 17, 2023 By SALONORY

Share Your Feedback

Ferli Achirulli Kamaruddin | Dreamstime.com

What do the aspiring salon owner and the seasoned salon owner have in common? They both need a business plan! Even we share this common ground as an established salon supply store !

This is because, while owning a salon business is exciting, a lack of proper planning will make it difficult to have fun, motivate your team, juggle all of the aspects of your business and try to expand it. A business plan is a living document that outlines your business goals and strategies for achieving them. If updated annually and followed enthusiastically, it will help you to fully formulate ideas and set goals, make difficult decisions, have a clear financial understanding of your operation, raise funding and, ultimately, help you avoid getting overwhelmed by your business and improve your chances of success. Although each business plan will vary depending on their industry and operation specifics, a solid salon business plan should include the following elements:

1. Cover Page

Your cover page will be your first impression to potential business partners, investors or lenders that it’s shared with, so it’s crucial to have a clean and professional one. If you have a logo to add for aesthetic appeal, we suggest this as well! Aside from this, be sure to include your salon name, salon address, salon owners’ names and salon owners’ contact information. If your business plan is super comprehensive, you may even want to consider including a table of contents.

2. Executive Summary

Your executive summary should be the first section of your business plan, but because it will highlight what you intend to expand on in the rest of the plan, we actually suggest writing this section last!

Ultimately, this section should summarize what your business hopes to accomplish. Along with briefly highlighting important aspects of your business plan (like products or services you’ll offer and why they have the potential to be profitable), you’ll want to talk a little bit about why you’re starting this company and what experience you have in the industry. One of the most essential aspects of your executive summary, though, will be your company’s mission statement, so put some serious thought into crafting it!

A strong salon mission statement will summarize your approach to business in only a few sentences. Once you get them down on paper, though, these few sentences will guide your business in everything it does.

3. Company Description

Your company description is the section to showcase why your company stands out from the competitors. It’s here that you should break down your salon’s strengths and advantages that will give it an edge to succeed. If you’ve chosen this location for a beneficial reason, if you’ve partnered with a certain supplier for a beneficial reason or if you’re working with the community in any way, this is the section to display it.

4. Market Analysis

Your market analysis is an opportunity to display how well you understand the industry and specific market you’re in or hoping to enter. This will mean identifying your target market, understanding your community’s wants and needs, analyzing local competitors and acknowledging current trends taking over the industry. Once you’ve put in the legwork for this section and have your market analysis, you can compare the strengths and advantages highlighted in your company description against this and hit home how your salon will stand above the rest.

5. Marketing Strategy

Your market analysis will lead the way to your marketing strategy. With your analysis complete, you should be able to confidently and concisely identify the type of clientele you’re aiming to attract (with specifics like their age, gender, income, lifestyle, desires and needs). From here, the goal is to outline the position you hope to play in their life. Describe how your salon will attract those clients and how it will achieve its desired position.

6. Breakdown of Management and Company Organization

Even if there’s not a whole lot going on here, it’s still important to introduce anyone involved with the business and indicate whether your business will operate as a sole proprietorship, a partnership or otherwise. For the aspiring salon owner, this might look like a brief description of your skills with a write-up about how your salon will operate as a sole proprietorship and insight as to how your salon’s organization will adapt to growth. For the seasoned salon owner, this might look like your collection of managers, with a brief description for each that outlines their skills and primary job responsibilities. If you’re a seasoned salon owner operating on a big scale, we suggest creating some sort of visual to display your company organization!

7. Financial Plan

Creating a detailed financial plan can be one of the most challenging parts of creating a business plan, but can also be one of the biggest reasons for your success. This section will open your eyes to less-obvious obstacles, hidden expenses and potential pitfalls if you’re an aspiring salon owner — and not only get an idea of, but improve your monthly and yearly progress if you’re a seasoned salon owner. Along with this, your financial plan will be the first thing that’s looked at when it comes to determining your eligibility for a loan. While it will depend on the current state of your salon, your financial plan could include:

A sales forecast , which is a detailed projection of your sales over the next three years.
An expense budget , which is an outline of what you’ll spend on expenses like rent, supplies and marketing to meet your sales forecast.
A cash-flow statement , which is a detailed breakdown of how cash will flow in and out of your business over a 12-month period. This includes revenue, costs, expenses, loans and loan payments, personal funds used for business and any other money associated with the operation of your salon.
A break-even analysis , which is a prediction of your break-even point when your expenses (including interest!) are equal to or lower than your sales.

Bring Your Business to Life

Don’t forget that your business plan should always be your guide in this pursuit of passion! Reference it often, update it regularly and remember why you wrote it in the first place!

Products We Love

BLONDME BOND ENFORCING PREMIUM CLAY LIGHTENER 350g

Alterna Caviar Anti-Aging Replenishing Moisture Conditioner 8.5oz

Authentic Beauty Concept Glow Cleanser 300 ml

Kenra Platinum Blow-Dry Spray 3.4oz

PRAVANA Intense Therapy Leave-In 10oz.

STMNT Grooming Goods Matte Paste, 3.38oz

#mydentity Super Power Direct Dye Violet Sorcery, 3oz

How to start a mobile hair salon or barber shop, 7 salon branding ideas, 8 must-have salon policies and procedures for employees.

Try Noona HQ

Opening a salon

Aug 10, 2023

How to Create a Business Plan for Your Salon: Your Beauty Blueprint to Success

Dive into a step-by-step guide on creating a business plan tailored for salon success. From mission clarity to financial foresight, unlock strategies to turn your beauty passion into a flourishing enterprise.

Introduction

In the world of beauty, creativity, passion, and skill often take center stage. Yet, behind every successful salon, there lies a robust and strategic plan, paving the way for its triumph. Creating a business plan is much like designing a new hairstyle or look. It involves envisioning what you want to achieve, understanding the tools and techniques required, and meticulously crafting until the final result mirrors the initial inspiration. For aspiring salon owners or those looking to elevate their existing business, a comprehensive plan isn't just a page of numbers and forecasts. It's the beauty blueprint to success, detailing every facet of the venture, from its foundational mission to the intricate details of daily operations. Dive in as we explore how to build this blueprint, ensuring your salon doesn't just survive, but thrives in the dynamic beauty industry.

Understanding Your Salon’s Mission and Vision

Every successful business venture begins with a clear sense of purpose, and for salons, this sense of purpose is captured in its mission and vision statements. Think of these statements as the guiding lights for your salon's journey, helping you stay on course during both calm and stormy seas.

1. Defining Your Salon's Purpose and Long-term Goals:

Mission Statement : This succinctly captures why your salon exists and its core purpose. It's about the present – what you do, who you serve, and what value you bring. Ask yourself: What promise are you making to your clients every time they walk through your doors?

Vision Statement : This paints a picture of your desired future. It's aspirational and gives everyone in the salon a clear idea of what success looks like in the long run. Imagine where you want your salon to be in 5, 10, or even 20 years. What impact will you have made? What legacy will you leave behind?

2. Crafting These Statements:

Creating mission and vision statements might seem daunting, but it's an introspective process. Consider your passions, what motivated you to start or run a salon, and the kind of difference you hope to make in the beauty industry.

For a deep dive into crafting compelling mission statements and to draw inspiration from successful salons, visit Noona's comprehensive guide on salon mission statements . They offer invaluable insights and examples that can guide you in molding statements that resonate with your brand's essence.

In conclusion, understanding and articulating your salon's mission and vision is paramount. They don't just serve as internal guiding posts but also communicate to clients, staff, and stakeholders what your salon truly stands for. As you proceed with your business blueprint, refer back to these statements to ensure each decision aligns with your salon's core purpose and aspirational goals.

Market Analysis

Before setting the cornerstone of your salon, understanding the market you're stepping into is pivotal. A comprehensive market analysis allows you to understand the beauty industry's landscape, your target customers, and your potential competitors. This ensures that when you open your salon doors, you're not just another business in the community but a highly anticipated addition.

1. Understanding the Beauty Industry Landscape:

Trends and Forecasts : The beauty industry is dynamic, with new trends emerging rapidly. From eco-friendly products to tech-driven beauty solutions, keeping an eye on these changes ensures your salon stays relevant and ahead of the curve.

Regulations and Licensing : Ensure you're aware of any industry-specific regulations, certification needs, and licensing that could impact your operations.

2. Identifying Your Target Market:

Demographics : Understand the age, gender, income, and other demographic factors of your ideal customer. Is your salon catering to young professionals, teenagers, or perhaps a mature audience?

Psychographics and Buying Behaviors : Dive deeper to know your audience's lifestyle, preferences, and buying habits. Do they prefer organic products? Are they looking for a luxurious experience or quick service solutions?

3. Analyzing Your Competition:

Strengths and Weaknesses : List out local salons and understand what they're doing right and where they might be falling short. This can provide insights into potential market gaps you can fill.

Market Gaps : Once you understand your competition's offerings, identify what's missing. Is there a service, product, or experience that customers desire but isn't available? That's your opportunity to shine.

4. Location, Location, Location :

While understanding your market is key, finding the perfect spot to set up shop is equally vital. The location of your salon plays a massive role in its accessibility, visibility, and overall success. Consider factors such as foot traffic, nearby businesses, ease of parking, and the demographic of the local population. For a comprehensive guide on selecting the ideal location for your salon, delve into Noona's expert advice on choosing a salon location .

To wrap up, a thorough market analysis doesn't just give you a view of the playing field but also offers the insights needed to strategize your moves. With a deep understanding of the industry, your customers, and your competitors, you're poised to make decisions that position your salon for long-term success.

Services and Pricing

In the beauty world, the range of services you offer and their associated pricing can make or break your salon's reputation and profitability. Offering the right mix of services, matched with a pricing strategy that reflects your brand's value and the market's willingness to pay, is a delicate balance to strike.

1. Choosing the Right Services to Offer:

Diverse Portfolio : Depending on your target market, your salon might benefit from offering a wide range of services from haircuts, coloring, and treatments to nails, skincare, and even massage.

Specialization : On the other hand, some salons thrive by specializing in a few niche services, becoming the go-to spot for those particular treatments.

Continuous Innovation : The beauty industry is ever-evolving. Regularly review and update your services to keep up with trends and customer demands.

2. Pricing Strategy:

Competitive Pricing : Analyze what other salons in your area charge for similar services. While you don't want to drastically undercut or overshoot these figures, understanding the market rate is crucial.

Value-based Pricing : Instead of just setting prices based on competition, consider the value you're offering. If you provide a luxurious experience or use high-end products, your prices should reflect that.

Discount Strategies : Occasional promotions or loyalty discounts can attract and retain customers. However, ensure they don't undermine your brand's perceived value.

3. Upselling and Cross-selling:

Maximizing Customer Value : Once a customer is in your chair, there's potential to introduce them to other services or products. Train your staff on tactful upselling techniques to enhance the customer's experience without seeming pushy.

Package Deals : Offering bundled services at a slightly reduced rate can encourage clients to indulge in more treatments, increasing your per-visit revenue.

4. Crafting Your Salon Price List :

Your price list isn't just a utility; it's a reflection of your brand. Its design, clarity, and presentation can enhance the client's perception of your salon. For innovative ideas on creating an appealing and effective price list, explore Noona's detailed guide on hair salon price list ideas .

In conclusion, the services you offer and their corresponding prices play a significant role in defining your salon's brand image and profitability. By aligning them with market demands and your salon's unique value proposition, you pave the way for both satisfied customers and a thriving business.

Marketing and Promotion Strategies

At the heart of every flourishing salon is not just talented stylists and impeccable services, but also an effective marketing strategy. In a world increasingly swayed by digital impressions and word-of-mouth, how you market and promote your salon can be the determining factor in its success. Let's dive into crafting a strategy that makes your salon the talk of the town.

1. Branding:

Establishing Your Salon’s Identity : Your brand is more than just your logo or color scheme. It's the experience you promise, the values you uphold, and the story you tell. Everything from your salon's interior design to staff uniforms should resonate with your brand's essence.

Unique Selling Proposition (USP) : Determine what sets your salon apart. Is it a unique treatment you offer? An exceptional training program for your stylists? Ensure your USP is highlighted in all marketing materials.

2. Digital Marketing:

Website : In today's digital age, a salon without a website is like a shop without a signboard. Ensure your website is visually appealing, mobile-friendly, and contains essential information like services, prices, contact details, and customer reviews.

Social Media : Platforms like Instagram, Facebook, and Pinterest are ideal for showcasing your work. Regularly post before-and-after photos, salon events, promotions, and client testimonials.

Email Marketing : Build a list of client emails to send out newsletters, promotions, or updates. This not only drives repeat business but also helps in fostering a community.

3. Offline Marketing:

Local Advertising : Consider placing ads in local newspapers, magazines, or radio stations. This type of advertising can effectively reach your local target demographic.

Partnerships : Collaborate with local businesses, such as boutiques, gyms, or cafes, for mutual promotions. This could be in the form of cross-promotions, discounts, or sponsored events.

Event Sponsorships : Participate in or sponsor local events, beauty pageants, or workshops. This boosts brand visibility and positions your salon as an active member of the community.

4. Customer Engagement and Loyalty Programs:

Referral Programs : Encourage your existing clients to refer friends and family by offering them incentives or discounts.

Loyalty Cards : Introduce a loyalty card system where frequent visits or purchases earn points, which can be redeemed for services or products.

Feedback Channels : Create channels for clients to offer feedback, whether it's through comment cards, online reviews, or suggestion boxes. This not only provides valuable insights but also makes clients feel valued and heard.

5. Seasonal Promotions and Campaigns:

Themed Packages : Offer packages or discounts during festive seasons, holidays, or even less busy months to boost sales.

Collaborative Campaigns : Partner with beauty product brands to run promotional campaigns, offering bundled products with select services.

In wrapping up, marketing is not just about visibility but also about creating connections. By building a coherent brand, engaging with your audience both online and offline, and offering value through various promotions, your salon is poised not just to attract clients but to turn them into loyal advocates.

Operational Plan

An operational plan serves as the engine room of your salon, ensuring that all parts work in harmony to produce the desired outcome: unparalleled service, satisfied customers, and a successful business. This plan encompasses everything from the location of your salon to the daily management of services and resources.

1. Choosing a Salon Location:

Strategic Location : Your salon's location can greatly influence foot traffic, brand visibility, and accessibility. A location in a bustling area or near complementary businesses (like clothing boutiques or coffee shops) might be ideal.

Demographics : It's essential to ensure that the local population matches your target clientele in terms of age, income, and beauty needs.

Facility Needs : Think about size, layout, and infrastructure. Does it allow for future expansion? Does it resonate with your brand's aesthetic? For a more in-depth guide on pinpointing the perfect location, delve into Noona's expert insights on choosing a salon location .

2. Design and Ambiance:

Interior Layout : Create a space that's both functional for staff and inviting for clients. This includes considering the placement of styling stations, waiting areas, and retail sections.

Brand Consistency : The design should echo your brand's identity, from colors to decor elements, ensuring clients get a cohesive experience.

3. Staffing:

Hiring : Recruit not just based on skills but also on alignment with your salon's culture and ethos.

Training : Regular training ensures that your team is updated with the latest industry techniques and customer service standards.

Retention Strategies : Implement measures to retain top talent, such as competitive compensation, a positive work environment, and growth opportunities.

4. Equipment and Supplies:

Sourcing Quality Products : Whether it's haircare products or skincare treatments, ensure you're using reputable and high-quality brands. This not only affects service quality but also your salon's reputation.

Inventory Management : Implement a system to track product usage, reorder stocks in time, and monitor expiration dates.

5. Daily Operations and Management:

Booking and Scheduling : Use digital tools or salon management software to handle appointments, reduce overbookings, and ensure timely services.

Hygiene and Sanitation : Especially in the post-pandemic world, maintaining impeccable hygiene standards is non-negotiable. Regularly clean and sanitize equipment, stations, and communal areas.

Customer Experience Enhancement : From a warm welcome to post-service follow-ups, ensure every client's journey in your salon is memorable.

For actionable strategies and insights on managing your salon's daily operations, refer to Noona's comprehensive guide on running a successful hair salon .

In conclusion, while vision and strategy are essential, it's the operational plan that brings them to life. Ensuring every aspect of your salon's operations runs smoothly is crucial to creating a lasting and favorable impression in the minds of clients and ensuring your venture thrives.

Financial Projections and Strategy

Your salon’s financial strategy is the backbone of your business plan. While beauty and aesthetics are at the forefront of the industry, the underlying financial projections and strategies are what keep the business thriving. Addressing the cost implications, forecasting profits, and being prepared for various financial scenarios can mean the difference between a thriving salon and one that struggles.

1. Start-Up Costs:

Location and Lease : Depending on your chosen location, the cost of leasing or buying a space can vary significantly. Factor in any modifications or renovations required to tailor the space to your salon's needs.

Equipment and Supplies : From hairdressing chairs to specialized equipment, the initial set-up costs can be substantial. For a detailed breakdown of essential equipment costs, explore Noona's guide on salon equipment essentials .

Licenses and Permits : Ensure you've budgeted for any required business licenses, permits, and certifications.

Initial Inventory : Stocking up on products for treatments and retail. For an exhaustive list and deep dive into the expenses of setting up a salon, refer to Noona's comprehensive breakdown on the cost to open a hair salon .

2. Operational Costs:

Salaries and Wages : This includes compensation for all staff, from stylists to receptionists.

Utilities : Regular expenses like electricity, water, internet, and other utilities.

Maintenance and Repairs : Regular maintenance of equipment and the facility.

Marketing and Advertising : Budget for ongoing promotional activities and campaigns.

3. Revenue Projections:

Service Revenue : Projected income from all the services offered. Consider factors like average price, number of bookings per day, seasonality, etc.

Product Sales : If you retail beauty products, estimate potential earnings from these sales.

Additional Income Streams : This could be from workshops, training sessions, or renting out space.

4. Break-Even Analysis:

Identify the point where your salon's total revenues will cover total costs. Knowing this will provide clarity on when your salon will start turning a profit.

5. Financial Safety Nets:

Contingency Fund : Always have a fund for unforeseen circumstances or emergencies.

Insurance : Invest in comprehensive insurance to protect against potential liabilities or damages.

6. Growth Investments:

Reinvestment Strategy : Determine a portion of profits to reinvest in the business, be it for expansion, training, or introducing new services.

Financial Aids and Loans : Understand the options available should you need financial support to scale or improve operations.

In conclusion, the beauty of your salon won’t just depend on the services you offer or the ambiance you create but also on the sound financial strategies you put in place. With thorough financial planning, you can ensure that your salon not only offers exceptional beauty services but also stands on solid financial ground.

Implementation Timeline

Laying out a strategic business plan is just the first step. Bringing your vision to life requires actionable steps, all tied to a realistic and coherent timeline. Here, we'll detail a typical implementation timeline for setting up a salon, ensuring you hit key milestones efficiently and systematically.

1. Research and Planning (Weeks 1-4):

Market Analysis : Understand your target clientele, study competitors, and identify market gaps.

Financial Forecasting : Detail your budget, source initial capital, and lay out your financial projections.

2. Location and Infrastructure (Weeks 5-12):

Location Scouting : Identify and finalize the right salon location. For insights, refer to the previously linked article on choosing a salon location.

Lease and Licenses : Secure the necessary permissions, licenses, and finalize your lease.

Infrastructure Planning : Layout design, interior decoration, and ambiance creation.

3. Procurement (Weeks 9-16):

Equipment and Supplies : Purchase necessary equipment and set up the salon space. Dive into Noona's guide on salon equipment essentials for detailed insights.

Initial Inventory : Stock up on products and supplies you'll need for both treatments and retail.

4. Hiring and Training (Weeks 13-20):

Job Listings and Interviews : Post job vacancies, conduct interviews, and finalize your core team. For best hiring practices and insights, consult Noona's salon hiring guide .

Training and Orientation : Ensure your team is aligned with the salon's mission and vision. Conduct training sessions to standardize services and customer interactions.

5. Marketing and Launch Preparation (Weeks 17-24):

Branding and Website Development : Create your salon's visual identity, and establish an online presence.

Promotions and Advertisements : Announce your salon's upcoming launch. Consider offering early-bird specials or opening discounts to attract initial clientele.

Final Touches : Ensure the salon space is set up, all equipment is tested, and inventory is organized.

6. Grand Opening (Week 25):

Launch Event : Consider hosting an event or open house. Invite potential clients, local businesses, and media.

Service Trials : Offer complimentary or discounted services on the launch day to give potential clients a taste of your expertise.

7. Review and Iterate (Weeks 26-52):

Feedback Collection : Actively collect feedback from your initial customers.

Performance Analysis : Review financial and operational performance. Identify areas of improvement and growth opportunities.

Continuous Marketing Efforts : Keep the momentum going with regular marketing campaigns, partnerships, and promotions.

To sum up, a clear, structured timeline not only ensures that you stay on track but also aids in visualizing the trajectory of your salon's setup and growth. By breaking down the process into actionable steps, you increase the likelihood of launching successfully and building a thriving beauty haven.

Potential Challenges and Solutions

Every business venture, including a salon, is bound to face challenges. Anticipating these obstacles and preparing solutions in advance can provide a smoother path to success. Below are some common challenges salon owners may encounter and suggested solutions for each.

1. Challenge: Intense Competition

Solution : Carve out a niche for your salon. Offer specialized services, unique experiences, or target a specific demographic that is underserved in your area. This will help differentiate your salon from competitors.

2. Challenge: Fluctuating Client Volume

Solution : Implement a loyalty program, offer off-peak discounts, or create package deals to incentivize repeat business and even out demand. Seasonal promotions can also help attract customers during quieter times.

3. Challenge: Retaining Skilled Staff

Solution : Create a positive work environment, offer competitive compensation, provide opportunities for professional growth, and maintain open communication channels. Recognition and rewards for exceptional performance can also boost morale and loyalty.

4. Challenge: Staying Updated with Industry Trends

Solution : Regularly attend industry seminars, workshops, and trade shows. Also, invest in continuous training for your staff to ensure they stay updated with the latest techniques and trends.

5. Challenge: Managing Operational Costs

Solution : Adopt efficient inventory management systems, reduce waste, and regularly review and renegotiate contracts with suppliers. Utilizing energy-efficient equipment and fixtures can also help cut down on utility costs.

6. Challenge: Negative Reviews or Feedback

Solution : Address any negative feedback promptly and professionally. Use it as an opportunity to learn, improve, and showcase your commitment to customer satisfaction. Encourage satisfied customers to leave positive reviews to balance the narrative.

7. Challenge: Regulatory and Licensing Changes

Solution : Stay informed about local and state regulations pertaining to the beauty industry. Join industry associations and subscribe to relevant newsletters to stay updated on any regulatory changes.

8. Challenge: Technology Integration and Upgrades

Solution : Allocate a budget for periodic technology updates, whether it's salon management software, booking systems, or digital marketing tools. Seek feedback from staff and customers to identify areas needing technological enhancement.

9. Challenge: Economic Downturns

Solution : Build a financial safety net or contingency fund. Diversify your service offerings to cater to different price points, ensuring you can attract a broader clientele during economic slowdowns.

10. Challenge: Health and Safety Concerns (e.g., Pandemic-related shutdowns)

Solution : Implement strict hygiene and sanitation protocols. Offer services that can be adapted to health guidelines, like at-home beauty kits or virtual beauty consultations. Stay informed on health advisories and adjust business operations accordingly.

In conclusion, while challenges are inevitable in the journey of building and running a salon, they can also serve as catalysts for growth and innovation. By anticipating potential hurdles and having strategies in place, you can navigate through them effectively, ensuring your salon's resilience and long-term success.

FAQ (Frequently Asked Questions)

1. Why is a business plan essential for my salon? A business plan serves as a roadmap, guiding you through the various stages of establishing and running your salon. It not only helps secure funding but also aids in identifying potential challenges, streamlining operations, and setting clear goals.

2. How often should I update my salon business plan? A business plan is a living document. While the foundational elements might remain consistent, it's advisable to review and update it annually. Regular updates can also be made whenever there's a significant change in the market or your business.

3. Can I start my salon without a formal business plan? While it's technically possible to start without a formal plan, it's not recommended. A business plan provides clarity, sets objectives, and helps in making informed decisions. Skipping this step can lead to unforeseen challenges and missed opportunities.

4. How can I differentiate my salon from competitors? Focus on creating a unique selling proposition (USP). Whether it's a specialized service, exceptional customer experience, or niche market focus, your USP will help you stand out. Regular market analysis and customer feedback can guide you in refining your offerings.

5. What if my financial projections aren't met? It's not uncommon for businesses to face discrepancies between projections and actuals. Regularly monitor your financials, adapt your strategies, and consider seeking advice from financial experts. It's essential to remain flexible and proactive in your approach.

6. How do I handle negative feedback or reviews? Always address negative feedback professionally and constructively. It provides an opportunity for growth and showcases your commitment to customer satisfaction. Encourage satisfied clients to share their positive experiences to balance out any negative narratives.

7. How can I ensure the health and safety of my clients, especially during uncertain times like pandemics? Stay updated with health guidelines from local and global health organizations. Implement strict sanitation protocols, train your staff, and communicate these measures clearly to your clients to ensure trust and safety.

By delving into this FAQ section, we hope to have addressed some of your burning queries. Embarking on the salon business journey is undoubtedly challenging but equally rewarding. With the right information, guidance, and determination, success is not just a possibility but a surety.

Setting up and running a successful salon is a dream that many aspire to but only a few achieve with flying colors. The journey involves not just passion for beauty and aesthetics but also a deep understanding of the business landscape, keen foresight, and meticulous planning. From conceptualizing a unique value proposition to managing the intricate financials, each step in the salon business journey is crucial.

This comprehensive guide aimed to shed light on key aspects of creating a business plan for your salon, providing insights and strategies to navigate the multifaceted world of the beauty business. By focusing on your salon's mission and vision, understanding the market, pricing your services right, crafting effective marketing strategies, managing operations smoothly, making sound financial decisions, and preparing for challenges, you're not just creating a business — you're building a legacy.

In the ever-evolving beauty industry, staying agile, being receptive to feedback, and continuously learning and adapting are the hallmarks of lasting success. With your dedication, passion, and the right strategies, your salon can not only enhance beauty but also become a beautiful success story in its own right.

About Noona HQ

Noona HQ’s booking & management software allows you to easily manage online appointments, sales, clients, and more.

Featured Posts

Top 11 Ways to Grow Your Salon Business

Running a successful salon.

25 Salon Websites Examples that WOW + Tips to Designing Your Own

Salon marketing.

Salon SEO + Top 12 Actions to Improve Online Visibility

Latest from our blog ✨.

Discover 11 effective ways to grow your salon business, from leveraging series vouchers to innovating service offerings and reaching new clients through local partnerships.

Salon Price Increase Letter Template + Tips to Raising your Price

Discover how to smoothly implement salon price increases with our guide. Learn timing, communication tips, and how Noona HQ can support your strategy.

Discover the top 25 salon website examples for inspiration and get expert tips on creating a stunning, user-friendly site for your salon.

See all blog posts →

Talk to a human

Book a free consultation to see what Noona can do for you  

Book a demo →

Watch the Demo

Learn the how & why of Noona in 30 mins

Watch now →

Get started yourself and see if Noona HQ is right for you

Point of sale

Online appointments

Appointment calendar

SMS campaigns

Unlimited client history

Appointment reminders

Custom fields

Flexible giftcards

AI ASSISTANTS

Upmetrics AI Your go-to AI-powered business assistant

AI Writing Assist Write, translate, and refine your text with AI

AI Financial Assist Automated forecasts and AI recommendations

TOP FEATURES

AI Business Plan Generator Create business plans faster with AI

Financial Forecasting Make accurate financial forecasts faster

INTEGRATIONS

QuickBooks Sync and compare with your QuickBooks data

Strategic Planning Develop actionable strategic plans on-the-go

AI Pitch Deck Generator Use AI to generate your investor deck

Xero Sync and compare with your Xero data

See how easy it is to plan your business with Upmetrics: Take a Tour →

AI-powered business planning software

Very useful business plan software connected to AI. Saved a lot of time, money and energy. Their team is highly skilled and always here to help.

- Julien López

BY USE CASE

Secure Funding, Loans, Grants Create plans that get you funded

Starting & Launching a Business Plan your business for launch and success

Validate Your Business Idea Discover the potential of your business idea

E2 Visa Business Plan Create a business plan to support your E2 - Visa

Business Consultant & Advisors Plan with your team members and clients

Incubators & Accelerators Empowering startups for growth

Business Schools & Educators Simplify business plan education for students

Students & Learners Your e-tutor for business planning

Sample Plans

WHY UPMETRICS?

Reviews See why customers love Upmetrics

Customer Success Stories Read our customer success stories

Blogs Latest business planning tips and strategies

Strategic Planning Templates Ready-to-use strategic plan templates

Business Plan Course A step-by-step business planning course

Help Center Help & guides to plan your business

Ebooks & Guides A free resource hub on business planning

Business Tools Free business tools to help you grow

Business Plan For Buying an Existing Business

Business Plan Template

Vinay Kevadia
September 10, 2024

how to write a business plan for buying an existing business

With millions of small businesses ready to be sold in the next decade or two, there are countless opportunities for eager buyers.

However, successful acquisitions aren’t guaranteed— 70-90% of business acquisitions fail. (The horror!)

Don’t want to be part of this statistic? You need a solid business plan to ensure you make a wise investment. This plan helps you understand the business’s value, foresee potential risks, and set clear growth goals.

In this guide, we’ll cover creating a business plan for buying an existing business . Let’s dive in and make sure your next business purchase is a success!

Why do you need a plan for purchasing a business?

A business plan is crucial when buying an existing company because it provides a clear roadmap for growing the business. It helps you understand the value of the business and makes it easier to secure financing by showing you have a solid plan in place.

For example, Elon Musk’s purchase of X (formerly Twitter) for $44 billion was a major move, but poor planning led to the company losing 72% of its value, causing big losses for Musk and his investors. A well-thought-out business plan could have helped avoid some of these problems by identifying challenges and setting realistic growth goals.

A good business plan also highlights potential risks, sets clear goals, and ensures a smooth transition, making it more likely for the acquisition to be successful.

By planning, you not only secure financing but also reduce the chance of facing unexpected financial issues, just like what happened with X’s sudden drop in value.

How to plan for buying an existing business

Planning to write an acquisition business plan is like taking a step back and evaluating every detail first. Here are 8 key steps to consider when planning to buy an existing business:

1. Consider starting with the existing business plan

Starting with the existing business plan of the company you want to purchase can provide you with a solid foundation for further planning.

This existing plan gives you a peek into the current strategies, goals, and operational processes of your potential new business. It ultimately helps you understand the target market, competitors, and other opportunities.

Additionally, it highlights existing growth opportunities and potential risks that the current management has identified, helping you to build on their insights.

For example, in 2011, HP acquired Autonomy Corporation for around $11 billion. However, not long after, HP claimed that Autonomy had inflated its financial numbers, leading to major legal disputes and a loss of $8.7 billion.

2. Assess existing liabilities and legal issues

When planning to acquire a business, one of the first things to do is to evaluate the target company’s existing liabilities and potential legal issues. It includes reviewing outstanding debts, pending lawsuits, tax obligations, and compliance with regulations.

As a Business attorney, Richard Harroch says, “You don’t want to inherit someone else’s legal problems.” Understanding these liabilities allows you to negotiate better company value, and contract terms, or decide if the acquisition is still a good deal.

Addressing these issues upfront can prevent costly legal battles or financial losses down the line.

3. Review existing contracts and agreements

When acquiring a business, reviewing all existing contracts and agreements is necessary. Reviewing them will help avoid potential conflicts and ensure a smooth transition. This review can also identify opportunities to renegotiate more favorable terms.

When reviewing an existing firm’s business plan for contracts and agreements, check the length of each contract.

Long contracts might lock you into unfavorable terms, while short ones can lead to frequent renegotiations. Look for details like renewal options, termination clauses, and penalty fees to understand potential risks and opportunities.

4. The initial balances

Conducting an initial financial check lets you understand the financial health of the business you want to buy. It involves reviewing financial statements like balance sheets, income statements, and cash flow statements to spot any issues like decreasing revenues or high debts.

This also helps you know if the business is profitable or sustainable in the long term and makes an informed decision about the purchase price.

Knowing the financial situation clearly allows you to negotiate better terms and ensures a successful acquisition.

5. Customer retention and transition

Keeping customers loyal during a business transition is a challenging task. Here, it’s important to communicate with customers about the acquisition and reassure them that products or services will remain the same or get better.

Offering special promotions or loyalty programs can help keep key customers. Make sure customer service stays high-quality and any changes are clearly explained.

By focusing on customer retention, you can reduce troubles and build trust during the transition.

For example, when Amazon bought Whole Foods in 2017, they let customers know their shopping experience would get better. By lowering prices and communicating well, Amazon kept existing customers happy and attracted new ones.

6. Contingency and exit strategy planning

Having a Plan B is necessary if things don’t go as expected. For example, you might need a plan for what to do if the business doesn’t perform as desired or if there are any merging difficulties.

It’s wise to think about an exit strategy that outlines how you could leave the business if needed. In this situation, whether to sell the company to someone else or by merging it with some other business.

These strategies help you prepare for unexpected situations, minimizing potential losses while protecting your assets and investment.

7. Prepare a structured transition plan

A structured transition plan is key for a smooth change in ownership. This plan should include timelines, key milestones, and responsibilities for all the parties involved.

According to various studies, 70-90% of acquisitions fail to achieve their desired outcomes due to poor transition plans.

A good transition plan can reduce disturbances, keep employees motivated, and ensure customers stay happy during the change in ownership.

8. Update your existing plan to make it better

After buying a business, try updating the company’s existing business plan. Review the original plan for areas to improve, such as expanding into new markets, launching new products, investing in new equipment, or enhancing operations.

Regular updates ensure the plan stays aligned with market conditions and business goals, supporting growth and adaptability.

Areas to focus on when updating an existing company’s business plan include:

Market expansion
Product innovation
Operational improvements
Risk management
Financial forecasts
Competitive analysis
Alignment with goals

Mistakes to avoid while writing a business plan for buying a business

While planning for the business plan of an existing firm, a small mistake can also have major consequences. So, better avoid mistakes like:

Failing to personalize the business plan

Not customizing the business plan to your specific vision, objectives, or operational style is a mistake. Customize the plan to reflect the opportunities and weaknesses rather than just relying on or copying the existing firm’s business plan.

Underestimating customer feedback

Avoid overlooking the importance of understanding customer feedback and managing the business’s existing reputation. Include a strategy for collecting customer feedback, handling complaints, and improving customer perception during the transition.

Ignoring cash flow management

Not creating a detailed cash flow management plan, could lead to liquidity issues. So, develop a cash flow forecast to ensure the business maintains liquidity for day-to-day operations and avoid unexpected expenses. You can even hire a financial advisor or use proper financial forecasting software for the same.

Neglecting supplier and vendor relationships

Failing to review and build relationships with existing suppliers or vendors is a huge mistake. So, plan a meeting with key suppliers and renegotiate contracts to ensure favorable relationships and consistent supply chain management.

Lacking clear communication

Ensure the business plan includes a well-defined communication system for employees, customers, suppliers, and other stakeholders to avoid miscommunication and ensure smooth operations.

Also, the business plan should include clear strategies to keep everyone informed and engaged throughout the transition process as well as afterward.

Plan for your new business using Upmetrics

In summary, a solid business plan is necessary to ensure success and growth. But, still wondering how to craft one that covers everything? Or maybe you’re not sure where to begin?

That’s where Upmetrics comes in!

With Upmetrics you can directly import the existing business’s business plan and update it with its AI or as needed. So, why wait, create a winning business plan with Upmetrics today!

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

Frequently Asked Questions

What should be included in an acquisition business plan.

An acquisition business plan should include:

Executive summary
Company description
Market analysis
Financial projections
Operations plan
Risk analysis
Legal and regulatory considerations

Do you need a business plan for buying an existing business?

Yes, you need a business plan when buying an existing business. It helps you understand the business, plan for its future, and secure capital. The plan includes details like market analysis, financials, and strategies for managing and growing the business after the purchase.

What are the financing options for buying an existing business?

Financing options for buying an existing business include:

Seller financing
Investor financing
Personal savings or assets

What are the risks involved in buying an existing business?

Risks involved in buying an existing business include hidden financial problems like undisclosed debts or declining revenues and legal issues such as unresolved lawsuits or regulatory violations. Additionally, there are operational challenges in incorporating new management and aligning company cultures.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

Reach Your Goals with Accurate Planning

News & Politics
Science & Health
Life Stories
The New Sober Boom
Getting Hooked on Quitting
Liberal Arts Cuts Are Dangerous
Is College Necessary?
Dying Parents Costing Millennials Dear
Gen Z Investing In Le Creuset
Bitcoin Gambling
Bitcoin Casinos
Bitcoin Sports Betting
SEC vs Celebrity Crypto Promoters
'Dark' Personalities Drawn to BTC

"I went to the Wharton School of Finance": Harris getting Trump flustered makes for great TV

Apparently, people are out there just eating cats and stuff harris' reactions to trump at the debate launch memes, by nardos haile.

Vice President Kamala Harris flexed her knowledge on domestic economic policy while aiming at Donald Trump's education at their first debate on Tuesday evening. And it was hilarious.

Early on in the debate, moderator and ABC News anchor David Muir asked Harris and Trump whether the American economy was better off now versus four years ago.

The opponents snarled their teeth at each other, with Harris making a dig at Trump's alma mater, the University of Pennsylvania's Wharton School of Business. The former president and Republican nominee graduated from Wharton in 1968. The Washington Post reported that Trump's brother Fred Trump Jr. and his father Fred Trump Sr. helped Trump get into the prestigious business school. Harris went to undergraduate college at Howard University.

Harris started, "What I'm offering is an opportunity economy, and the best economists in the country — if not in the world — have reviewed our relative plans for the future of America. What Goldman Sachs has said is that Donald Trump would make the economy worse. Mine would strengthen the economy."

She looked mostly like this while saying it — eyes askance, either pre-or-post hand on chin — a vibe, nay, a mood that she carried throughout most of the debate.

At that point, she continued, "What the Wharton School said is Donald Trump's plan would actually explode the deficit. Sixteen Nobel Laureates described his economic plan as something that would increase inflation by the middle of next year and would invite a recession."

However, Trump responded, "I went to the Wharton School of Finance, and many of those professors — the top professors — think my plan is a brilliant plan. It's a great plan."

Katy Milkman, a Wharton professor, tweeted on X after the back-and-forth between the opponents, "Hi! @wharton Prof here. Show me the many colleagues who say Trump’s plan is any good? I count 0!"

And if that doesn't sound as wild as it was, factor in Trump rambling on about people eating cats, executing babies, "transgender operations on illegal aliens that are in prison" and no fracking in Pennsylvania.

A24 could never.

Canopy Salon

Canopy salon is an AVEDA Concept Salon, serving the Palouse for nearly a decade, with an emphasis on customer experience, exceptional products made in the USA using 100% wind turbine generated electricity, and advanced, ongoing AVEDA education from world class educators. We are a LGBTQ proud company that endeavors to serve our community in the spirit of diversity, acceptance, and kindness to all who walk in our doors, or live in our surrounding communities. All of our skincare, haircare and body care as well as our color and lightening products are 97% natural derived, and use only renewable and sustainable ingredients that are safe for us and the earth. Our mission at Canopy an Aveda Salon, is to care for the world we live in, from the products we make to the ways in which we give back to society. At Aveda, we strive to set an example for environmental leadership and responsibility, not just in the world of beauty, but around the world.

Sorry, no records were found. Please adjust your search criteria and try again.

Sorry, unable to load the Maps API.

Change Location

Find awesome listings near you.

Business Plan Writers & Consultants Serving Texas

Growthink is a national business plan development company . Growthink’s business plan experts are located in several major cities across the United States. Since 1999, our business plan experts have written more than 4,000 strategic business plans for entrepreneurs, small businesses, mid-sized firms, and Fortune 500 corporations.

Our consultants work with clients located all over the country (and all over the world), including many business clients in Texas including all major Texas cities such as Houston , Dallas , San Antonio , Austin and Midland .

We have written business plans for clients in hundreds of industries. Previous Growthink clients from Texas include restaurant owners, alternative energy companies, internet/software companies, retail businesses, and business services firms.

If you are seeking professional help with your business plan, call us at 800-216-3710 or complete one of the forms below. Additional information on our Texas and nationwide business plan services is below.

Growthink Creates Plans to Help You Achieve Your Goals

Since 1999, growthink has created more than 4,000 business and strategic plans for clients who have gone on to achieve tremendous success..

Call Us Today at:

What Makes Growthink Unique

We are in constant contact with investors and other funding sources. This enables us to develop plans that raise money. Since 1999, Growthink clients have raised more than $2.5 Billion.

Vast Client Experience

We have developed plans for clients in over 500 industries, including startup, multi-national corporations, and non-profit organizations. We know how to develop a successful plan regardless of your stage of growth or type of business.

Better Strategies

We don't just document your ideas on paper. Our experts conduct market research and collaborate with you to create strategies for you to succeed in today's competitive environment and over the long-term.

World Class Team

Growthink consultants have attained degrees from top universities including Harvard, Stanford, MIT, Columbia, Dartmouth, Cornell, University of Pennsylvania, University of Chicago, UCLA and the University of Michigan.

What the Media Says

Logos of The New York Times The Wall Street Journal CNN Money Fast Company Inc Forbes Fortune NPR The Huffington Post SmartMoney Fox Business The Christian Science Monitor Business Week Entrepreneur Venture Beat Inventors Digest The Deal SmartBusiness Los Angeles Times and AOL

Get A Free Consultation

Complete the form, or call us at:

(800) 216-3710

Who we serve, mid-sized to larger companies, early stage entrepreneurs, fortune 500 companies, small business owners, non profit and government, representative clients.

What Our Clients Say

Our Founders

Jay has over 25 years of experience in starting, building, advising and investing in high growth firms. His advisory work spans industries and market sectors, including corporate clients like Deutsche Bank, McKesson, Infospace, Samsung, Porsche, & Paramount Pictures seeking to inject entrepreneurship and innovation into their organizations. He has an MBA from the Anderson School at UCLA and a Bachelor’s degree from Stanford University. Read more.

Dave Lavinsky

Growthink’s President, is the author of the Amazon #1 Best Seller in Entrepreneurship “ Start at the End: How Companies Can Grow Bigger and Faster be Reversing Their Business Plan ,” published by Wiley. Dave is a contributor for Enterpreneur.com and Forbes.com. BusinessWeek went so far as to call Dave ‘The Business Plan Expert.’ Dave has an MBA from the Anderson School of Management at UCLA and a Bachelor’s degree from University of Virginia. Read More

Need Help With Your Business Plan?

Call Us Today

(800) 216 - 3710

Texas Business Plan Resources

The US Small Business Association West Texas district web page. https://www.sba.gov/district/west-texas

The US Small Business Association El Paso district web page. https://www.sba.gov/district/el-paso

The US Small Business Association Dallas – Fort Worth district web page. https://www.sba.gov/district/dallas-fort-worth

The US Small Business Association Houston district web page. https://www.sba.gov/district/houston

The US Small Business Association San Antonio district web page. https://www.sba.gov/district/san-antonio

The Greater Houston Partnership’s business resources page. https://www.houston.org/business-resources

Texas Economic Development Corporation’s business resources page. https://businessintexas.com/why-texas/small-business-innovation/

The State of Texas’ business resources page. https://gov.texas.gov/business/page/small-business

The Texas Small Business Development Center Network provides complementary and confidential business consulting, and affordable training. https://sbdctexas.org/

SCORE is a volunteer organization where established businesspeople provide mentorships, workshops, events, and consulting for entrepreneurs. A complete listing of offices throughout Texas can be found here. https://www.score.org/contact-us?state=TX

Learn more about Growthink’s business plan consulting services and methodology.

Integrations
Learning Center

MoSCoW Prioritization

What is moscow prioritization.

MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements.

The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won’t-have, or will not have right now. Some companies also use the “W” in MoSCoW to mean “wish.”

What is the History of the MoSCoW Method?

Software development expert Dai Clegg created the MoSCoW method while working at Oracle. He designed the framework to help his team prioritize tasks during development work on product releases.

You can find a detailed account of using MoSCoW prioritization in the Dynamic System Development Method (DSDM) handbook . But because MoSCoW can prioritize tasks within any time-boxed project, teams have adapted the method for a broad range of uses.

How Does MoSCoW Prioritization Work?

Before running a MoSCoW analysis, a few things need to happen. First, key stakeholders and the product team need to get aligned on objectives and prioritization factors. Then, all participants must agree on which initiatives to prioritize.

At this point, your team should also discuss how they will settle any disagreements in prioritization. If you can establish how to resolve disputes before they come up, you can help prevent those disagreements from holding up progress.

Finally, you’ll also want to reach a consensus on what percentage of resources you’d like to allocate to each category.

With the groundwork complete, you may begin determining which category is most appropriate for each initiative. But, first, let’s further break down each category in the MoSCoW method.

Start prioritizing your roadmap

Moscow prioritization categories.

1. Must-have initiatives

As the name suggests, this category consists of initiatives that are “musts” for your team. They represent non-negotiable needs for the project, product, or release in question. For example, if you’re releasing a healthcare application, a must-have initiative may be security functionalities that help maintain compliance.

The “must-have” category requires the team to complete a mandatory task. If you’re unsure about whether something belongs in this category, ask yourself the following.

If the product won’t work without an initiative, or the release becomes useless without it, the initiative is most likely a “must-have.”

2. Should-have initiatives

Should-have initiatives are just a step below must-haves. They are essential to the product, project, or release, but they are not vital. If left out, the product or project still functions. However, the initiatives may add significant value.

“Should-have” initiatives are different from “must-have” initiatives in that they can get scheduled for a future release without impacting the current one. For example, performance improvements, minor bug fixes, or new functionality may be “should-have” initiatives. Without them, the product still works.

3. Could-have initiatives

Another way of describing “could-have” initiatives is nice-to-haves. “Could-have” initiatives are not necessary to the core function of the product. However, compared with “should-have” initiatives, they have a much smaller impact on the outcome if left out.

So, initiatives placed in the “could-have” category are often the first to be deprioritized if a project in the “should-have” or “must-have” category ends up larger than expected.

4. Will not have (this time)

One benefit of the MoSCoW method is that it places several initiatives in the “will-not-have” category. The category can manage expectations about what the team will not include in a specific release (or another timeframe you’re prioritizing).

Placing initiatives in the “will-not-have” category is one way to help prevent scope creep . If initiatives are in this category, the team knows they are not a priority for this specific time frame.

Some initiatives in the “will-not-have” group will be prioritized in the future, while others are not likely to happen. Some teams decide to differentiate between those by creating a subcategory within this group.

How Can Development Teams Use MoSCoW?

Although Dai Clegg developed the approach to help prioritize tasks around his team’s limited time, the MoSCoW method also works when a development team faces limitations other than time. For example:

Prioritize based on budgetary constraints.

What if a development team’s limiting factor is not a deadline but a tight budget imposed by the company? Working with the product managers, the team can use MoSCoW first to decide on the initiatives that represent must-haves and the should-haves. Then, using the development department’s budget as the guide, the team can figure out which items they can complete.

Prioritize based on the team’s skillsets.

A cross-functional product team might also find itself constrained by the experience and expertise of its developers. If the product roadmap calls for functionality the team does not have the skills to build, this limiting factor will play into scoring those items in their MoSCoW analysis.

Prioritize based on competing needs at the company.

Cross-functional teams can also find themselves constrained by other company priorities. The team wants to make progress on a new product release, but the executive staff has created tight deadlines for further releases in the same timeframe. In this case, the team can use MoSCoW to determine which aspects of their desired release represent must-haves and temporarily backlog everything else.

What Are the Drawbacks of MoSCoW Prioritization?

Although many product and development teams have prioritized MoSCoW, the approach has potential pitfalls. Here are a few examples.

1. An inconsistent scoring process can lead to tasks placed in the wrong categories.

One common criticism against MoSCoW is that it does not include an objective methodology for ranking initiatives against each other. Your team will need to bring this methodology to your analysis. The MoSCoW approach works only to ensure that your team applies a consistent scoring system for all initiatives.

Pro tip: One proven method is weighted scoring, where your team measures each initiative on your backlog against a standard set of cost and benefit criteria. You can use the weighted scoring approach in ProductPlan’s roadmap app .

2. Not including all relevant stakeholders can lead to items placed in the wrong categories.

To know which of your team’s initiatives represent must-haves for your product and which are merely should-haves, you will need as much context as possible.

For example, you might need someone from your sales team to let you know how important (or unimportant) prospective buyers view a proposed new feature.

One pitfall of the MoSCoW method is that you could make poor decisions about where to slot each initiative unless your team receives input from all relevant stakeholders.

3. Team bias for (or against) initiatives can undermine MoSCoW’s effectiveness.

Because MoSCoW does not include an objective scoring method, your team members can fall victim to their own opinions about certain initiatives.

One risk of using MoSCoW prioritization is that a team can mistakenly think MoSCoW itself represents an objective way of measuring the items on their list. They discuss an initiative, agree that it is a “should have,” and move on to the next.

But your team will also need an objective and consistent framework for ranking all initiatives. That is the only way to minimize your team’s biases in favor of items or against them.

When Do You Use the MoSCoW Method for Prioritization?

MoSCoW prioritization is effective for teams that want to include representatives from the whole organization in their process. You can capture a broader perspective by involving participants from various functional departments.

Another reason you may want to use MoSCoW prioritization is it allows your team to determine how much effort goes into each category. Therefore, you can ensure you’re delivering a good variety of initiatives in each release.

What Are Best Practices for Using MoSCoW Prioritization?

If you’re considering giving MoSCoW prioritization a try, here are a few steps to keep in mind. Incorporating these into your process will help your team gain more value from the MoSCoW method.

1. Choose an objective ranking or scoring system.

Remember, MoSCoW helps your team group items into the appropriate buckets—from must-have items down to your longer-term wish list. But MoSCoW itself doesn’t help you determine which item belongs in which category.

You will need a separate ranking methodology. You can choose from many, such as:

Weighted scoring
Value vs. complexity
Buy-a-feature
Opportunity scoring

For help finding the best scoring methodology for your team, check out ProductPlan’s article: 7 strategies to choose the best features for your product .

2. Seek input from all key stakeholders.

To make sure you’re placing each initiative into the right bucket—must-have, should-have, could-have, or won’t-have—your team needs context.

At the beginning of your MoSCoW method, your team should consider which stakeholders can provide valuable context and insights. Sales? Customer success? The executive staff? Product managers in another area of your business? Include them in your initiative scoring process if you think they can help you see opportunities or threats your team might miss.

3. Share your MoSCoW process across your organization.

MoSCoW gives your team a tangible way to show your organization prioritizing initiatives for your products or projects.

The method can help you build company-wide consensus for your work, or at least help you show stakeholders why you made the decisions you did.

Communicating your team’s prioritization strategy also helps you set expectations across the business. When they see your methodology for choosing one initiative over another, stakeholders in other departments will understand that your team has thought through and weighed all decisions you’ve made.

If any stakeholders have an issue with one of your decisions, they will understand that they can’t simply complain—they’ll need to present you with evidence to alter your course of action.

Related Terms

2×2 prioritization matrix / Eisenhower matrix / DACI decision-making framework / ICE scoring model / RICE scoring model

Prioritizing your roadmap using our guide

Talk to an expert.

Schedule a few minutes with us to share more about your product roadmapping goals and we'll tailor a demo to show you how easy it is to build strategic roadmaps, align behind customer needs, prioritize, and measure success.

Share on Mastodon

When Should You Make a Will?

Q: When should you make a will? A: As soon as you become a legal adult. A will helps you take control over your future and reduces stress for all.

Start your will today

by Swara Ahluwalia

Swara has over six years of writing experience in the software, manufacturing, and small business segments. When she ...

7 life events that warrant a will

What happens if you die without a will , how to make a valid will , benefits of using an estate attorney or service , secure your future: start an estate plan.

A will is a legal document that guides family members on what to do in case anything were to happen to you. It also allows you to appoint a healthcare proxy, designate a power of attorney, and name a guardian for your children.

Making a will is one of the most important things you can do to manage your estate, protect your family, and provide financial security. And contrary to popular belief, a will isn’t about getting old or something for the wealthy. It’s about being prepared, and that can start at 18.

A young woman wearing glasses and seated on a couch smiles as she writes out her last will. In most states, you can be as young as 18 years old to write a legal will.

It’s always smart to begin thinking about making a will as soon as you become a legal adult. Take charge of your financial future and learn how to go about this process.

There isn’t a defined moment that mandates the creation of a will. But certain life events warrant prioritizing your estate plan.

1. Getting married or divorce

A marriage constitutes the coming together of two people and their financial situation. Any instance that combines assets should serve as a trigger for creating a will and other estate planning documents. On the other hand, a divorce also requires you to update your estate plan to reflect the current circumstances.

2. Starting a business

It's wise to start an estate plan when you launch a business. A business is a valuable asset that requires protection. A comprehensive estate plan can help you designate a successor, lay instructions for managing the business, and minimize any tax burdens resulting from the business income and valuation.

3. Opening new financial accounts

When you start a savings account, or any other financial account for that matter, one of the first things you have to do is designate a beneficiary . Many choose to leave the funds in these accounts to their spouse, an adult child, or another close family member in the event of one spouse's dying. This is an estate planning trigger because you want to ensure all estate documents have consistent information.

4. Welcoming a new child or family members

One of the most obvious estate planning triggers is the birth of children. A will can help you set guardianship and financial security for the new child and each one that follows in case something happens to you or your spouse. Anytime there are new and additional family members to consider, like grandchildren and stepchildren, it is an excellent time to create or update your will to ensure all are taken care of.

5. Changes in health

Any change in your health standing is a sign to start estate planning because it can impact your care wishes and your ability to manage finances independently. A will can help you appoint a healthcare proxy to make the medical decision if you cannot. Unfortunately, many Americans die due to a health condition and leave their loved ones in flux regarding their assets.

6. Receiving an inheritance

An effective will reflects the latest circumstances. Therefore, if you expect to or suddenly receive a substantial inheritance, be prepared to update your estate plan to reflect the additional money or other assets.

7. Getting a new home

Acquiring a new home and any additional property ownership increases the complexity of your assets. Updating your will ensures all property gets passed on per your wishes and reduces stress and confusion among family members.

Estate planners can help you prioritize your estate planning needs when you become a legal adult or reach one of these obvious estate planning triggers. Even if none of the above scenarios apply to you right now, it's still a good idea to create a will sooner than later.

Surprisingly, over half of Americans pass away without a valid and legally enforceable will. This figure includes celebrities like Amy Winehouse, Heath Ledger, and Aretha Franklin. That’s a significant percentage of the population that risked everything they owned by letting state law decide who should get their estate belongings.

In the U.S., dying without a will , also known as intestate, means the state will step in and distribute your assets and debts as per the state's laws of intestacy because you didn't leave any instructions. Intestacy succession laws vary from state to state and can significantly impact who gets what. For example, in Texas, most of the deceased person’s estate is automatically passed on to the spouse or child. This is not the case in other states.

A tragic consequence of dying intestate is the increased stress and confusion it creates for loved ones. They probably are already in a world of hurt, and now, they have to decide what you would have liked and possibly even fight to claim their rights. A will eases their burden during an emotionally difficult time.

Dying without a will also delays the passing on of the assets as they have to undergo a court-supervised probate process . Probates are a time-consuming and expensive legal process that generally involves court visits and paperwork verification– all of which can unnecessarily burden the surviving spouse and children. With a will, you can avoid lengthy probate court proceedings.

Creating a will is a multi-step process that consists of the following steps:

Listing of all assets and debts
Planning distribution of belongings
Identifying beneficiaries
Selecting an executor
Drafting the will
Getting it signed and notarized
Storing it in a secure place

LegalZoom has a complete guide on how to write a will .

Even though a will seems like a straightforward document, any drafting error or oversight of assets can increase confusion and create grave consequences for your loved ones after your death. Therefore, it's wise to work with an experienced attorney to review, if not draft, your will to ensure it’s legally sound. The attorney can also guide you on the tax implications of your will and help you not fall prey to common drafting mistakes .

At 18, life is usually all about studies, parties, friends, and hanging out. For most young adults, an estate plan is off their radar. But life can throw many curveballs, and it’s best to take charge from the beginning. By not having a valid will, you risk leaving estate matters in the hands of the state's probate process. Would you like your parents and future spouse fighting over your assets for years? Having a will prevents such unpleasant scenarios, ensures your end-of-life wishes are followed, and provides a sense of financial security in case of your death for both you and your loved ones.

LegalZoom can help you create a basic will for a flat, affordable rate of $199, and you even get access to an experienced attorney. For larger assets, LegalZoom can help you with estate plans.

Why do I need a will if I don't have many assets?

It’s a financially wise move to get a will, even if you don’t have much “wealth.” Without a will, in the unfortunate event of your death, a probate court will control the distribution of all your money and other assets. A legal will also reduces any uncertainties and anxiety amongst your loved ones concerning funeral arrangements, asset distribution, and how to care for any minor children or pets.

Can I write my own will, or do I need a lawyer?

You can certainly write your will. There’s no need to hire an estate attorney. However, you should only go this route if you have simple assets and plan to leave everything to one person, say a spouse or child. Suppose you have complex family dynamics like dependent children from previous relationships or have multiple assets like inheritance, retirement accounts, stocks, and various properties. In that case, it’s better to get the assistance of an estate planning lawyer .

How often should you update your estate plan?

Many believe that writing a will is a once-and-done scenario. It’s not. A will should reflect your latest circumstances and preferences. A good rule of thumb is to revisit and update your estate plan every three to five years or after every major life event like marriage, divorce, births in the family, starting a business, and a spouse's death. Some estate planners also recommend revisiting your will if you frequently leave the country for long periods.

How much does a will cost?

A basic and straightforward will can cost approximately $150 , but the rates can go as high as $1,000. The final figure depends on your assets' complexity and where you’re based. If you hire an estate planning attorney, you can expect them to command an hourly fee of $300-$400.

IMAGES

Hair and Beauty Salon Sample Business Plan
FREE Salon Business Plan Templates
Business Plan for Salon Hair and Beauty Salon Planner Small Business
FREE 18+ Salon Business Plan Templates in PDF
How To Write the Perfect Salon Business Plan in 7 Simple Steps
How to Write Your Salon Business Plan

VIDEO

Nail Salon Business Plan Part 2
Beauty Salon Business Plan PPT Slide
How to Start a Hair Salon Business
How to Start a Nail Salon Business
5 year business plan sample
Salon Market Analysis for a business plan

COMMENTS

Free Hair and Beauty Salon Sample Business Plan PDF
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.
How to Write the Perfect Salon Business Plan in 6 Steps
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.
How To Write the Perfect Salon Business Plan in 7 Simple Steps
Here we've broken down the entire process into 7 easy-to-follow, foolproof steps, along with their templates, to help you create a successful salon business plan. Write a mission and vision statement. Create an executive summary. Analyze and identify your target market. Perform a competitor analysis.
Creating a Successful Salon Business Plan: A Step-by-Step Guide
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.
How to Write a Salon Business Plan that Yields Profits
An executive summary serves as your plan's overview. Think of the summary as a clear, concise preview for the reader of what's to come. Your executive summary should include the objectives of your salon and your mission statement. Use it to paint the big picture. The summary should include your business keys to success.
Beauty Salon Business Plan Template & Guide [Updated 2024]
A business plan provides a snapshot of your salon as it stands today, and lays out your growth plan for the next five years. It explains your business's goals, business model, the type of services you will offer (beauty services, spa services, nail services, skin care services and/or hair salon services), management team, target market, and a marketing plan for the many ways you can reach ...
Hair Salon Business Plan Template & Guide
Hair Salon Business Plan. Over the past 20+ years, we have helped over 5,000 entrepreneurs and salon owners create business plans to start and grow their hair salons. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a hair salon business plan template ...
How to create a hair salon business plan
6 steps to creating a hair salon business plan. Let's dissect the key components of a hair salon business 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.
Salon Business Plan: How to Write a Beauty Salon Business Plan
Whether you're refreshing your existing salon or opening a salon for the first time, this guide will help you write an effective business plan. Why You Need a Salon Business Plan. Formulate Your Ideas & Set Goals. One of the most important reasons to write a salon business plan is simply to get all of your great ideas, knowledge and plans out ...
How to Write a Hair Salon Business Plan
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.
Free Hair and Beauty Salon Business Plan Template + Example
1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.
Hair And Beauty Salon Business Plan Example
Cash at End of Period. $87,971. $107,163. $91,584. Download This Plan. Explore a real-world hair and beauty salon business plan example and download a free template with this information to start writing your own business plan.
How To Write a Salon Business Plan
How to write a salon business plan in 7 steps. Here's a simple step-by-step breakdown of how to write a business plan and the important tidbits you need to know as you get started. 1. Executive summary. The first thing anyone will read in your business plan is the executive summary. Think of it like an elevator pitch.
How to Create a Salon Business Plan
A salon business plan is your blueprint to guide you through the process of starting and managing your establishment. It provides a roadmap to set up, structure and run your business. In the startup phase, the salon business plan helps you outline your key objectives with the business. It also helps you set a strategic direction for the salon.
Complete Guide to Creating a Business Plan for Your New Hair Salon
Step-By-Step Instructions to Writing Your Hair Salon Business Plan. A business plan is a crucial step to starting any business. Creating one is an opportunity to put your thoughts, ideas, and goals down on paper and mold them into something more tangible. Creating a business plan might feel like a daunting task, but it doesn't have to be if ...
How to Write a Business Plan for Your Salon
Aside from this, be sure to include your salon name, salon address, salon owners' names and salon owners' contact information. If your business plan is super comprehensive, you may even want to consider including a table of contents. Your executive summary should be the first section of your business plan, but because it will highlight what ...
How to Create a Business Plan for Your Salon: Your Beauty ...
Every successful business venture begins with a clear sense of purpose, and for salons, this sense of purpose is captured in its mission and vision statements. Think of these statements as the guiding lights for your salon's journey, helping you stay on course during both calm and stormy seas. 1.
Sample Salon Business Plan
A beauty salon business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document. The salon business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your salon as ...
How to Write a Hairdressing Salon Business Plan? Guide & Template
Ensure your business plan is strong, demonstrating the viability and profitability of your salon. 3. Investors. Seeking investors is another avenue, especially if your salon has high growth ...
How to Write a Business Plan For Buying an Existing Business
How to plan for buying an existing business. Planning to write an acquisition business plan is like taking a step back and evaluating every detail first. Here are 8 key steps to consider when planning to buy an existing business: 1. Consider starting with the existing business plan
"I went to the Wharton School of Finance": Harris getting Trump
The Washington Post reported that Trump's brother Fred Trump Jr. and his father Fred Trump Sr. helped Trump get into the prestigious business school. Harris went to undergraduate college at Howard ...
Canopy Salon
602 South Main Street. Moscow. Idaho. 83843. United States. Email: admin @ canopysalon.com. Website. Canopy salon is an AVEDA Concept Salon, serving the Palouse for nearly a decade, with an emphasis on customer experience, exceptional products made in the USA using 100% wind turbine generated electricity, and advanced, ongoing AVEDA education ...
Business Plan Writers & Consultants Serving Texas
Previous Growthink clients from Texas include restaurant owners, alternative energy companies, internet/software companies, retail businesses, and business services firms. If you are seeking professional help with your business plan, call us at 800-216-3710 or complete one of the forms below. Additional information on our Texas and nationwide ...
What is MoSCoW Prioritization?
MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements. The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won't-have, or will not have right now. Some companies also use the "W" in MoSCoW to mean "wish.".
When Should You Make a Will?
2. Starting a business. It's wise to start an estate plan when you launch a business. A business is a valuable asset that requires protection. A comprehensive estate plan can help you designate a successor, lay instructions for managing the business, and minimize any tax burdens resulting from the business income and valuation. 3.
Writing
Writing seems to strike fear into the hearts of many struggling learners. The idea that they have to organize, write in complete sentences, spell everything the right way! Ugh! It can be so overwhelming. On this page you will find some great tools to help those learners that feel this way, or even learners that may need some extra supports put ...