A comprehensive guide on salon business plan
Are you a professional artist who is planning to open your own salon? Making a salon business plan is what you need to buckle up for this venture!
This venture indicates the excitement and struggles to survive in the overcrowded salon industry. According to Statista, the U.S. beauty salon industry amounted to $67.4 billion in 2023. Where these statistics show the profitability of the salon business, it sounds equally daunting to succeed among strong competitors.
But, a carefully crafted salon business can keep you on a safe and lucrative track. The more effort you put into your business plan for the salon, the more fruitful the results will be! It is important to develop a roadmap for your business plan wisely.
The blog will help you write a beauty salon business plan, hair salon business plan, or nail salon business plan! So, let’s move ahead!
Why do you need a business plan for salon?
Simply put, you need to paint a clear picture of your salon before starting it. A business plan acts as a roadmap to stay on a predefined track. Additionally, you create a business plan considering all the important factors like:
- What does your salon offer?
- Who is your target audience?
- How will you reach your target audience?
- What makes your salon different from other salons?
- Where do you aim to take your business growth?
When you write a wholesome business plan, you can actively track the productivity of your business idea. Doing so will improve the oversight and direction of the salon business while making better moves. A business plan is, therefore, essential for starting a beauty, hair, or nail salon.
How to craft a flawless salon business plan in 8 steps?
You might find it challenging to craft a salon business plan, as it needs to be perfect, covering every aspect of the business. You need not to worry!
By following these 8 steps, you can create a flawless salon business plan. All you need to do is stick to this blog for better understanding!
- Jot down your mission and vision
- Write your executive summary
- Identify the target market
- Analyze your competitors
- Describe your salon business
- Plan your operation strategy
- Craft marketing strategies
- Outline your financial plan
Whether you are creating a hair salon business plan, salon suites business plan, nail salon business plan, or a general beauty salon business plan, this blog is for you!
This blog entails everything you need to know about writing a business plan in the simplest possible way. So, let’s get into it!
1. Jot down your mission and vision
Since it is the first part of your business plan, glorify what you are about to do– your mission and vision!
Jotting down a definite purpose drives motivation to take a headstart for the business. Additionally, a mission statement states what you are currently up to. It includes the short-term goals that you intend to achieve in a short stretch of time. The mission statement emphasizes “Value,” how you will provide value to your customers and make your business distinct from others. Moreover, you need to inspire people to come to your salon, which needs to be attractive yet logical in demeanor.
Similarly, a vision statement is a long-term plan. It is about where you expect to reach in the next 5 years and predict the future of your business. Do not forget to describe how your audience will benefit from your vision. The bigger and better you dream, the bigger the success will be!
2. Write your executive summary
An executive summary is an essential part of the salon business plan that sets the right tone for your business. It should leave an impression on your audience and private investors. Additionally, it is important to keep this section brief and concise without compromising its effectiveness.
Moreover, if you feel it is difficult to write an executive summary, you can do 2 things to get it done. First, complete the other parts and write an executive summary at the end. Secondly, you can divide it into small chunks to write a meaningful executive summary. Here’s how you can do it:
- Summarize your mission, motto, and short-term goals
- Give a brief about the target market and demographic your business is meant for
- Shed light on your competitors, their products, services, and clientele range
- Bring your salon business to the light with a unique selling proposition (USP)
- Describe which products and services make your salon different from others
- Slightly touch the financial projections and the expectations from the business
For an ideally written executive summary, it is important to skillfully include the points mentioned above.
3. Identify the target market
Since you intend to start your salon business, it’s very important to analyze the target market. You can not hit the bull’s eye without knowing the target market. For your salon, you can include people from all genders and age groups, but it is important to have a thorough glimpse of market trends.
Additionally, you will need to define services according to the age groups and genders. For example, if you are writing a nail salon business plan, your target audience would be females from Gen Z, millennials, or Gen X. Similarly, specify the target market to know people who resonate with your salon.
Moreover, identify the target market based on age, gender, ethnic background, and occupation. The better you analyze the market, the better you know the ongoing trends and inclinations.
4. Analyze your competitors
Since the salon industry is already crowded, you don’t want your salon business to go unnoticed. To make a difference, you must scrutinize your competitors deeply about what they are doing and lacking.
Additionally, by keenly looking into the competitors’ practices, you can see the gaps and fill them better. There are a few factors to analyze your competitors:
- What are the costs of services they offer?
- Are they niche-specific and serve a specific group?
- Do they face any challenges in the industry that you may also encounter?
- What gaps do they have left?
- How can you make a difference with your business?
Furthermore, to analyze your competitors to the core, you might need to follow them on social media. You may visit their websites to see what they offer and how to present your salon better than theirs!
5. Describe your salon business
At this point, you have figured out what others have done. Now, it’s your turn! In this part of the salon business plan, keep your business in the limelight and flaunt your unique style. Additionally, include an overview of the products and services you offer and what is different in your salon.
For a better description, you can answer the following questions in your business description:
- Which services do you offer?
- Which services are you specialized in? (any bridal makeup, haircut, or nail art)
- What type of packages do you offer?
- Are there any complimentary drinks or refreshments for the clients?
- Which theme do you follow in your salon?
After describing your products and services enough, think about your logo and tagline. Since the logo and tagline imprint a mark in your audience’s minds, it should be customized and catchy! The better you have done in the previous phases, the better ideas you will have to implement here. Let your creative mind make your salon stand out!
6. Plan your operation strategy
Planning the operation strategy for the salon holds significance. Since the operational phase of any business needs special attention, it is vital to have a well-thought-out operation plan. In the case of salons, you need to optimize the business plan for salon operations. Here is how you can plan your operation strategy and require the following:
- A trained staff of stylists and artists
- Salon management software for scheduling and management
- An inventory to organize the stock
- Equipment for salon maintenance
- Administrative staff to manage the incoming and outgoing customers
Having your operation strategy already generated shows that you are well-equipped to deal with the customers and manage the daily operations. So, stay ahead and be well-prepared before entering the market!
7. Craft marketing strategies
Since you have reached this far, it’s time to grab people’s attention, so let’s not let the effort go unnoticed!
For this reason, you need to make your brand voice a different one from others. You can use tactics to let people run to your salon. Offer something unique and at a discounted rate. Additionally, you can start using the social media platform to connect with your audience more personally. By giving them hints and clues about your next move, you can excite them to stay alert about your salon.
Moreover, there are hundreds of ideas to implement when marketing your salon, so pick the best for your salon and engage the audience from day one!
Furthermore, your clients are the assets that have the potential to bring more people to your salon. The better you serve them, the more you will win!
8. Outline your financial plan
Finally, you are almost in the final stages of your business plan! Not to forget, this is the trickiest part of the business plan for the salon. Whether it’s a hair salon business plan, nail salon business plan, or salon suites business plan, you must be vigilant enough.
Additionally, at this point, you have to decide on the finances, from service prices to the monthly expenses of the salon. Therefore, you need a solid financial plan to run the business optimally. Moreover, you can split the costs into two parts:
Fixed costs include the salon rent, employees’ salaries, and monthly salon maintenance costs.
Variable costs include purchasing cosmetics, salon-related products, and utility bills for the salon.
Since you are just starting, your earnings in the starting months might be lower, so you need to offer discounts when starting. However, the discounts should not put your salon at a loss and must be applicable within a timeframe.
Furthermore, to set realistic financial plans, break your plan into small parts to move more sensibly without running out of money. Here is how you can do it:
- Use a spreadsheet to organize your sales and revenue projections for the short and long-term plan.
- Break down the expenditure of your salon on a monthly, biannual, or annual basis.
- Keep track of the profits in the form of pie charts and bar graphs
- Consider the unanticipated losses during the term
- Include the cash flow for the defined terms directly or indirectly related to your salon.
- Predict the break-even analysis to see when you’ll start earning profits
Being open-eyed and setting SMART goals while making financial projections is wise. Lastly, don’t forget to review your goals to analyze your salon’s progress!
Wrap Up
Running a well-managed salon business may sound dreamy, but this dream is achievable with a flawless business plan. The better you craft your business plan, the more vital the cornerstone will be!
To make your salon successful, it is important to be realistic when writing each step of your business plan. When you focus on the right thing with a sense of keenness, you can make a difference in the competitors’ market. Just trust the plan and trust the process!