You’ve come to the right place to create your beauty salon business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their beauty salons.
Below is a salon business plan example to help you create your own beauty salon business plan.
Major Lengths Beauty Salon is a newly established hair and beauty bar located in Glendale, Arizona that is founded by Jenna Diaz, a local hair stylist and aesthetician that has worked in the industry for over 15 years. Jenna’s knowledge in hair, nail, and facial trends have made her a popular stylist in the community. As her client list continues to grow, Jenna realizes that it’s time for her to open up her own salon.
Major Lengths Beauty Salon will be located in Glendale’s upscale district in a 5,000 square foot retail space. The area is highly trafficked with middle to high income residents who spend on luxury items such as cars, clothes, jewelry.
The beauty salon will offer haircuts and treatments, facials, manicures, and pedicures. Major Lengths will also carry a large selection of hair and beauty products that will be available for purchase. Jenna will have a loyalty program where the top clients will receive discounts on their service as a thank you for remaining loyal and referring other potential clients to the salon.
The following are the services that Major Lengths Beauty Salon will provide:
Major Lengths Beauty Salon will target the male and female adult population of Glendale, although the majority of clientele will be women. They will be middle to high income and working in a variety of industries, such as medical, legal, business, education, or other white collar professions. The salon will target stay at home mothers as well who enjoy a day of pampering.
Major Lengths Beauty Salon will be owned and operated by Jenna Diaz, a local Arizona hair stylist and aesthetician. Her years of experience and in the industry have allowed her to meet the following talented individuals.
Jenna has recruited a talented nail technician and aesthetician from her previous salon to join her at Major Lengths. Jenna regards them as the best in the industry and knows that their quality of work is up to her high standards. They also have a loyal and large list of clients that will likely follow them to the new salon.
While the three of them will be in charge of their respective department, Jenna will be the head manager to oversee the entire operation of the beauty salon.
Major Lengths Beauty Salon will be able to achieve success by offering the following competitive advantages:
Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon. The funding will be dedicated towards securing the retail space and purchasing the salon furniture, equipment, decorations, opening inventory, and working capital. The breakout of the funding is below:
The following graph below outlines the pro forma financial projections for Major Lengths Beauty Salon.
Major Lengths Beauty Salon is a newly established hair and beauty bar located in Glendale, Arizona. The company is founded by Jenna Diaz, a local hair stylist and aesthetician that has dedicated her career to making women look and feel their best. Throughout her years in the beauty industry, Jenna gained extensive knowledge in hair, nail, and facial trends as well as how to give exceptional customer service to all of her clients. Jenna realizes that men and women invest a lot of time and money into their appearance and she takes extra care to ensure her clients not only feel special, but walk away with their desired result.
Major Lengths Beauty Salon will be located in Glendale’s upscale district in a 5,000 square foot retail space. The area is highly trafficked with middle to high income residents who spend on luxury items such as cars, clothes, jewelry. Some of Arizona’s most expensive homes are within a 15-mile radius from the location. The salon will be decorated with a contemporary style, have modern furnishings, and include a welcoming waiting and reception area, large hair styling room, and separate areas for facials and nail services.
The beauty salon will offer haircuts and treatments, facials, manicures, and pedicures. Major Lengths will also carry a large selection of hair and beauty products that will be available for purchase. Jenna will have a loyalty program where the top clients will receive discounts on their service as a thank you for remaining loyal and referring other potential clients to the salon.
Major Lengths is owned and operated by Jenna Diaz, a local hair stylist and aesthetician who has made her career working in the beauty industry for the past 15 years in Glendale. She has gained extensive knowledge through her continuing education and industry seminars. Jenna has a long list of loyal clientele who will follow her to her new salon. Aside from her beauty salon knowledge and expertise, Jenna has taken local business courses to learn salon management and leading a small team of stylists, manicurists, and aestheticians.
Since incorporation, Major Lengths Beauty Salon has achieved the following milestones:
The following will be the services Major Lengths Beauty Salon will provide:
The Beauty Salon industry is expected to increase in size by 2.5% over the next five years. Demand for industry services mirrors broader economic performance, as economic growth boosts consumer spending on personal care products and services. Specifically, new products and services have favorably contributed to industry revenue growth over the majority of the past five years.
Online platforms such as Instagram and Facebook have provided a convenient and low-cost marketing strategy for many stylists and technicians to garner new clientele. Higher service prices and increased consumer spending on high-margin merchandise and services have also fueled revenue growth, as operators capitalize on rising per capita disposable income. Continued growth in household income over the outlook period is expected to drive consumer spending and boost demand for premium personal care services. Moreover, equipped with larger budgets, consumers will likely continue to favor professional salon products and services, such as hair coloring services, over less expensive alternatives sold at drugstores and supermarkets. Environmental sustainability concerns are expected to become more prevalent over the next five years, leading salons to offer a wider array of eco-friendly products that appeal to trending consumer preferences. Specifically, nontoxic products will likely benefit industry revenue, staff and patrons. This growing niche will likely drive hair salon revenue over the coming years.
Major Lengths Beauty Salon will target the male and female adult population of Glendale, although the majority of clientele will be women. They will be middle to high income and working in a variety of industries, such as medical, legal, business, education, or other white collar professions. The salon will target stay at home mothers as well who enjoy a day of pampering.
The precise demographics for Glendale, Arizona are:
| Total Population | 130,250 |
|---|---|
| Male | 51.40% |
| Female | 48.60% |
| 15 to 19 years | 10.60% |
| 20 to 24 years | 16.30% |
| 25 to 29 years | 21.90% |
| 30 to 34 years | 25.40% |
| Household Income $50,000 to $74,999 | 3.50% |
| Household Income $75,000 to $99,999 | 11.50% |
| Household Income $100,000 to $124,999 | 17.40% |
| Household Income $125,000 to $149,999 | 20.50% |
| Household Income $150,000 to $199,999 | 21.60% |
| Household Income $200,000 or more | 25.50% |
Major Lengths Beauty Salon will primarily target the following customer profiles:
Major Lengths Beauty Salon will face competition from other companies with similar business profiles. A description of each competitor company is below.
Hair Xtreme is located on the west side of Glendale and is owned by a local hair stylist with over 30 years of experience. Hair Xtreme specializes in haircuts and hair coloring services as well as hair color correction. The owner is also certified in Balayage highlighting by the prestigious L’oreal SOHO Academy. Hair Xtreme Beauty Salon was established to create a higher level of service in the Glendale community and has amassed a large clientele. The salon is regarded as the go-to salon for anyone looking for extreme color or haircut transformation. The pricing of services are on the higher end of the spectrum and caters to the community in the middle to higher income range.
Hair Xtreme Beauty Salon’s full list of services include haircuts, balayage, ombre, highlights, color retouch, hair treatments, and special occasion styles. The salon is open Tuesday through Saturday and is by appointment only.
The Complete Package is not only a hair and nail salon in Glendale, but also provides massage treatment, eyelash extensions, and body treatments. The salon is moderately priced and leans to be more affordable to target the population who doesn’t spend lavishly on beauty services, but also occasionally like to get pampered. Owned and operated by a mother and daughter team of hair stylists, The Complete Package is located in a small retail shopping center in the middle of the city. The salon has been in operation for over 20 years and was founded by Kate Beneducci. She was able to bring The Complete Package into operation due to her experience and background in cosmetics, marketing, and management. Every single stylist is a certified cosmetologist and are all required to attend a mandatory training every year to learn the latest techniques.
The Complete Package’s full list of salon services include hair, makeup, eyelash extensions, and nails. The full list of spa services include waxing, facials, microdermabrasion, massage, and body treatments. The salon regularly posts promotions to increase customer loyalty. The Complete Package is open daily by appointment and is able to take walk-ins Friday through Sunday.
Fringe Beauty Salon and Spa is located on the west side of Glendale, Arizona and was established in 2013 as a premier beauty salon. Fringe caters to the higher income clientele and their pricing is the most expensive in town. The owner relocated to Glendale to start her own beauty salon after working in the beauty industry in New York and Los Angeles for many years. She did hair and salon services for many celebrities and has been known to be the stylist for awards shows such as the Emmys and Oscars.
As a Glendale native, she relocated to her hometown to provide a higher quality of salon services to the community. The full list of services for Fringe Beauty Salon include haircuts, hair treatments, hair color, balayage, ombre, special occasion, manicures, pedicures, massage, facials, eyelash extensions, waxing, and makeup.
With a luxury atmosphere and relaxing spa environment, Fringe Beauty Salon and Spa is frequently booked for those wanting a full day of pampering.
Major Lengths Beauty Salon will be able to offer the following advantages over their competition:
Major Lengths Beauty Salon will offer the unique value proposition to its clientele:
The promotions strategy for Major Lengths Beauty Salon is as follows:
Website/SEO Marketing
Major Lengths Beauty Salon has hired an advertising firm to develop their branding image and logo. They will also develop the hair salon’s website. The website will include a full list of services, pricing, and pictures. The advertising company will also manage the company’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Glendale beauty salon” or “beauty salon near me”, Major Lengths Beauty Salon will be listed at the top of the search results.
Word of Mouth/Referrals
Jenna Diaz has a long list of loyal clients that have been with her for decades. They will follow her to the new salon and will receive additional clients from their referrals.
Social Media
Once the branding and logo is finalized, Jenna will use social media to her advantage and create social media business pages on all of the popular social media platforms. She will commit to posting daily to increase the list of followers and use it to regularly engage with customers.
Print Advertising
Major Lengths Beauty Salon will invest in professionally designed print ads to display in local magazines and hand out flyers to local businesses.
The pricing of Major Lengths Beauty Salon will be moderate and on par with competitors so customers feel they receive value when purchasing their salon services.
The following will be the operations plan for Major Lengths Beauty Salon.
Major Lengths Beauty Salon will have the following milestones complete in the next six months.
8/1/202X – Finalize retail space for beauty salon
8/15/202X – Begin build-out of beauty salon to include stylist stations, facial and massage rooms, and nail service area
9/1/202X – Order opening inventory
9/15/202X – Begin marketing campaign
9/22/202X – Hire staff of hair stylists, nail technicians, massage therapists, and aestheticians
10/1/202X – Major Lengths Beauty Salon Grand Opening Event
Major Lengths Beauty Salon will be owned and operated by Jenna Diaz, a local Arizona hair stylist and aesthetician. Jenna has made an impressive career helping women achieve their desired look and feel. As an Arizona native, Jenna has attended the local beauty college and attends industry trade shows and training seminars annually. She has amassed a large and loyal clientele and has even done hair treatments, cuts, and facials for local celebrities and sports personalities. Jenna is committed to establishing a beauty salon in her hometown of Glendale and making it a place where the women and men flock to when they want the latest hairstyle, manicure, or facial.
Jenna has recruited a talented nail technician and aesthetician from her previous salon to join her at Major Lengths. Jenna regards them as the best in the industry and knows that their quality of work is up to her high standards. They also have a loyal and large list of clients that will likely follow them to the new salon.
While the three of them will be in charge of their respective department, Jenna will be the head manager to oversee the entire operation of the beauty salon. She will also outsource a third party insurance company, CPA, and attorney to take care of her insurance, legal obligations, and tax filings. Jenna will also employ a part time bookkeeper to handle her day to day accounting and payroll of staff.
The revenue drivers for Major Lengths Beauty Salon are the sales from hair services, nail services, massages and facials.
The cost drivers will be the overhead costs required to staff the beauty salon. The expenses will be the payroll cost, rent, utilities, salon inventory, and marketing materials.
Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon. The funding will be dedicated towards securing the retail space and purchasing the salon furniture, equipment, decorations, opening inventory, and working capital. Jenna will need to allocate funds for the first three months of payroll and operating expenses as well as spend approximately on branding and marketing. The breakout of the funding is below:
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| Revenues | |||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 |
| Expenses & Costs | |||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| ASSETS | |||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
| LIABILITIES & EQUITY | |||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 |
| Share Capital | $0 | $0 | $0 | $0 | $0 |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
A beauty salon business plan is a plan to start and/or grow your beauty salon. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
There are a number of different kinds of beauty salons, some examples include: Beauty salon focusing strictly on hair styling, beauty salon offering hair removal services, skin care services, nail services, tanning services, or massage services, and beauty salon offering products.
Beauty salons are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for a beauty salon or a hair salon business plan.
If you’re looking to start a beauty salon business or grow your existing salon business, you need a business plan. A hair salon business plan template will help you raise funding, if needed, and plan out the growth of your beauty salon in order to improve your chances of success. Your salon business plan is a living document that should be updated annually as your company grows and changes.
You can download our free beauty salon business plan template PDF here. This is a sample beauty salon business plan template you can use in PDF format.
