How to write a beauty salon business plan

In short: Beauty salons do not lose their relevance, on the contrary – they are growing. After all, more and more people want to look good, but there is not much time for it, given the modern rhythm of life. If trying yourself in such a business is your dream, it’s time to realize it.

How to write a business plan for a beauty salon: what items to include in it and what information to fill it with? Is it even necessary to spend time on this task before opening your own business? Today, on the Appointer blog, we answer important questions on this topic in detail.

Content

• The relevance of the beauty business and the importance of strategy
• What is a business plan?
• What functions does business planning perform?
• Filling out the business plan
• Your business goals
• What services will you provide?
• Business registration
• Competitor market analysis
• Business organizational plan
• Production organization
• Marketing plan
• Financial plan
• Startup capital for business
• Calculate the payback
• List the risks
• In conclusion: why a business plan is still important

The relevance of the beauty business and the importance of strategy

Beauty salons do not lose their relevance, on the contrary – they are growing. After all, more and more people want to look good, but there is not much time for this, given the modern rhythm of life. If trying yourself in such a business is your dream, it’s time to realize it. And you should start with a step-by-step business plan for your future beauty salon. After all, statistics tell us that a start-up with preliminary planning is twice as likely to be successful than without.

Writing a business plan is a serious task that requires time and mental resources. But creating such a strategy helps you go from a good idea to a successful launch. The main thing is to write everything correctly and in as much detail as possible.

Next, we will talk about the functionality and content of a business plan for a salon.

What is a business plan?

This document guides the novice businessman and orients the experienced. It is a detailed guide to action, reduces stress levels and increases the chances of success.

A business plan for a beauty salon (and any other endeavor) describes in detail the stages of organization and structures data about the future of the enterprise. A typical structure of the document includes:

• List + content of services, concept of the company and target customers of the salon.
• Detailed competitive analysis and unique selling proposition of a beauty salon.
• Marketing and business promotion strategy.
• Business structure.
• Calculation of financial indicators – expenses, income, starting capital, payback, etc.

What functions does business planning perform?

You will need a beauty salon business plan for:

• development of the idea. Having described everything in detail, you will critically evaluate the idea and decide whether it is viable: what to adjust, what to add and what to remove. You will be able to track the risks and understand the size of the necessary investments. You will better understand the beauty industry as a whole;
• implementation control. A step-by-step beauty salon business plan is a guide to action that shows how to start, advance, stay afloat, etc.;
• team selection. You will understand who to hire, what requirements to put forward to candidates, and you will also find out how much a good specialist costs on the market;
• solving internal and external problems. A business plan is necessary as a clear guide to action not only for you, but also for your future employees, in particular – for management positions.

Filling out the business plan

Start with a business summary – describe in detail the concept, possible risks, payback period. After that, write down the following articles of the business plan for opening a beauty salon:

• Your goals.
• Services.
• Form of ownership and registration.
• Competitor analysis.
• Organizational plan.
• Production organization.
• Marketing business plan.
• Financial plan.
• How much money is needed to open a salon?
• Payback.
• Risks.

What does each of the points include?

Your business goals

In this section, write:

• Unique Selling Proposition (USP). How do you differentiate yourself from your competitors? How do you want to attract a potential buyer? Do you have any unique features?
• Target audience (TA). Who is your client – age range, gender, wealth level, type of activity, specific features.
• Segment. Is the salon focused on the middle class or is it a premium segment?

Important: Each section of the business plan for creating a beauty salon is described in detail – down to the smallest detail. Don’t be lazy to spend days or even months on it – in the end you will win.

UTP: Your advantages among competitors can be simple – a combination of a large range of services with a relatively low price tag. Add to this a high level of service in a beauty salon. If you are targeting the middle class, offer higher-level services at an average price and you will quickly be noticed.

CA: Understanding who your audience is and a detailed portrait of them will help with positioning and designing your business – where to rent a space, how to name the salon, how to design it to attract your specific client. Obviously, providing image services to retirees and office workers requires a different approach.

What services will you provide?

In this section of the beauty salon business plan, write down:

• A set of services with detailed information about each.
• List of products (if you are going to sell hair care products, combs, etc. in the salon).
• Prices.

Basic beauty salon services:

• haircuts (for women, men, + children);
• manicure, pedicure (care, decorative, corrective, nail extensions);
• list of beauty services (facial cleansing, peeling, hair removal);
• body treatments, etc.

Let’s add the sale of cosmetics to the list.

Important: do not try to include all services in the business plan at once – this will confuse the target audience. The specifics of the service are formed from who your visitor is and what segment you have. If necessary, return to these points and write them in detail.

It is better to indicate the cost of services and goods in the business plan using a price range. For example, a women’s haircut (short hair, medium length) – 200-400 UAH, a women’s haircut (long hair) – 300-500 UAH.

When forming a price list, consider the selected segment, the average income of the audience, and competitors’ prices.

Business registration

This section of the beauty salon business plan includes:

• Choice of ownership.
• List of documents required for registration.

In the first step, decide how you will register your salon: as a Private Entrepreneur (PE) or as a Limited Liability Company (LLC). Accordingly, first figure out what suits you and, possibly, consult a lawyer. Also, choose the form of taxation.

Next, make a list of registration documents. As a rule, it includes:

• beauty salon business plan;
• lease agreement;
• work permit;
• permission from the sanitary and epidemiological station, fire safety service;
• documents for the disposal of specific waste material (in a beauty salon this is hair);
• permission from the housing office;
• medical records of salon employees.

The list usually varies depending on the region where you are starting a business.

Also, a license is required to perform some procedures (cosmetologist, massage therapist).

Competitor market analysis

Analysis is an important part of a business plan and accurate positioning of a beauty salon. Start by studying the market as a whole to understand the level of competition in the segment and think about what will entice your client.

You can analyze competitors using the table:

• Place your opponents in a horizontal column.
• In the vertical column, enter the evaluation factors – how long the competitor has been operating, its location, price tag, level of service, how many services it provides, opening hours, and reviews.

Filling out the table will structure the information and highlight the weaknesses of your competitors. You will understand what can distinguish your salon and attract visitors to it – a more convenient working schedule or specific services that others do not have.

Business organizational plan

Write the following for your beauty salon:

• Number and positions of future employees. Who will work for you: administrators, craftsmen, masseurs, cleaners, accountants, etc. Who reports to whom?
• Responsibilities. Who does what and is responsible for what? Create detailed job descriptions for each employee.
• Salon and employee schedule. The section includes working hours, number of shifts, task implementation plans, etc.
• How will the payment be made? Choose a salary accrual system: rate, percentage of service, rate +% or individual scheme.

Production organization

Here will be the technical components of the beauty salon’s work:

• Choosing a room, location features. Think about where the salon will be located, based on the working concept and the characteristics of the target audience. Decide whether you will rent or buy the premises? Write down the necessary working conditions – a spacious area, utility rooms, bathrooms, sinks, communications. Find out what regulations apply to such a business.
• Repair fund. Depending on which room you have chosen, estimate the investment in redevelopment, decoration and design.
• Purchase of furnishings, salon tools, consumables, and cosmetics. First, write down a detailed list of everything you need in your business plan, then calculate the investment.
• Hiring employees. How many specialists / for what tasks do you need? Where to look for staff for the salon? How much money do you need to hire staff?

Marketing plan

Write this part of the business plan for organizing a beauty salon and you will understand how to ensure profitability for the enterprise after launch. Think about how to advertise and promote:

• what channels to use to attract target audiences;
• how to maintain loyalty by turning visitors into regular customers;
• select sales channels for salon services;
• make a list and content of advertising campaigns;
• Think about marketing activities for your business.

Then calculate the cost of these activities, taking into account all expenses.

For example, you have chosen the social network Facebook as the main channel for attracting target audiences. Then the calculations need to take into account the costs of maintaining a beauty salon page (creating text and photo content, supporting activity, etc.) and launching targeted advertising. Or you want to use the salon’s corporate image to promote and attract customers. Include in the calculations the cost of room design, creating a sign, uniforms for employees in the same style, etc.

Financial plan

In your business plan, indicate the estimated income and expenses of the enterprise for 1 month. It is easier to divide expenses into 2 categories – preparation for the opening and working hours.

The list of preparatory attachments will include:

• business registration costs (documentation);
• the cost of repairs in the salon;
• purchase of equipment and furniture, consumables and cosmetics;
• installation of equipment;
• rental costs;
• advertising before the opening of a beauty salon.

Working time costs (after opening) include:

• rent;
• payment of salaries;
• accounting expenses;
• utility bills, telephony, internet;
• waste disposal;
• security services;
• business management costs;
• advertising campaigns and promotion of the existing salon.

Based on the planned number of working masters / services provided per month, calculate the salon’s approximate income.

Startup capital for business

Take the time to identify, consider, and record all of your expenses in your beauty salon business plan. You will need this for two reasons:

• Important: you minimize the risk of encountering unforeseen expenses already during the salon’s operation.
• Key: by summing up the expenses, you will get the amount needed to start a salon – calculate the starting capital.

When tracking expenses, don’t be afraid to go back to previous points in your business plan, rewrite and optimize them.

Calculate the payback

In the process of developing a business plan, you will assess the profitability of a beauty salon: you will understand when the investment will pay off and how profitable it is to open a business as a whole.

To calculate the payback, forecast the average revenue per month:

• First, calculate the income of one craftsman: multiply the size of the average check by the average number of visitors served by the employee and the number of working hours, and subtract the salary from the resulting number.
• Then add up the income for all the stylists in the salon and subtract the expenses from that amount. That’s your net income.

Keep in mind that the profitability of a beauty salon may vary from period to period – increasing during holidays and decreasing during the vacation season.

Typically, a beauty salon designed for the middle segment pays for itself in 1-2 years. Less often, a shorter period is required.

List the risks

In the last section of the beauty salon business plan, assess possible risks and prescribe measures to minimize them.

Typical situations and solutions:

Risk 1. Unexpected dismissals of salon employees. Solutions: staff training, creating a positive atmosphere in the team, financial motivation.

Risk 2. Seasonal fluctuations in the workload of the beauty salon. Solution: prepare for periods of calm and increased activity – promotions in the low season, additional employees in the high season.

Risk 3. New competitors. Solutions: improving service quality, loyalty programs, new services, raffles.

Risk 4. Accidents, disasters, pandemics, etc. Solutions: insurance of business assets, training salon staff in safety techniques and compliance with sanitary standards, creation of a reserve fund for unforeseen events.

Risk 5. Robbery of the salon. Solution: purchase of security agency services, installation of video cameras, sensors, alarm system, property insurance.

In conclusion: why a business plan is still important

The main thing you need to understand about a business plan for opening a beauty salon: this document does not guarantee prosperity by itself, but it will become a guide to your goals. And going, knowing the direction, is easier than moving blindly.

A detailed strategy will reduce the number of possible mistakes at the start and during business development, will become insurance against unforeseen situations, will determine many business decisions, and will help you better understand the industry in order to quickly respond to the slightest changes in it.

FAQ

What sections does a beauty salon business plan consist of?

A complete business plan includes: a description of the concept and target audience, competitor analysis, list of services and pricing matrix, calculation of start-up costs, forecast of income and expenses for the year, marketing plan and break-even point.

How long does it take to prepare a beauty salon business plan?

A basic business plan can be drawn up on your own in 1–2 weeks. If you need a detailed financial plan for a bank or investor, it is better to engage a financial consultant, which will take 3–4 weeks.

What is the profitability of a beauty salon in Ukraine?

The average profitability of a beauty salon is 15–30%. It all depends on the price level, the workload of the masters, and cost control. An owner who does not monitor the cost of services and inventory often does not understand where the money “goes”.

Do I need a business plan if I open a salon for myself?

Yes, even a simplified one. A business plan is primarily your tool, not a piece of paper for the bank. It allows you to realistically assess your investments, the payback period, and understand how many customers you need to avoid operating at a loss.

How does Appointer help you execute your salon business plan?

Appointer shows real analytics — revenue, number of clients, workload of masters, and popular services. This allows you to compare the facts with the plan every month and adjust the strategy in time.