sample salon business plan

Hair Salon Business Plan Template & PDF Example

• September 4, 2024

Creating a comprehensive business plan is crucial for launching and running a successful hair salon. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your salon’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a hair salon business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the beauty industry, this guide, complete with a business plan example, lays the groundwork for turning your hair salon concept into reality. Let’s dive in!

Our hair salon business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the salon’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your hair salon’s business concept, market analysis , management, and financial strategy.
• Salon & Location : Describes the salon’s design, amenities, and why its location is appealing to potential clients.
• Treatments & Pricing : Lists the services provided by your hair salon, including treatments and pricing structure.
• Key Stats : Shares industry size , growth trends, and relevant statistics for the hair salon market.
• Key Trends : Highlights recent trends affecting the hair and beauty sector.
• Key Competitors : Analyzes main competitors nearby and how your salon differs from them.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management : Information on who manages the hair salon and their roles.
• Financial Plan : Projects the salon’s 5-year financial performance, including revenue, profits, and expected expenses.

Hair Salon Business Plan Template (Download)

Fully editable 30+ slides Powerpoint presentation business plan template.

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Executive Summary

The Executive Summary introduces your hair salon’s business plan, offering a concise overview of your salon and its services. It should detail your market positioning, the range of hair care and styling services you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your hair salon will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your salon’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the salon’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your salon’s financial plan.

Hair Salon Business Plan Executive Summary Example

Business Overview

A concise overview is pivotal, introducing essential details like the salon’s name, location, and a snapshot of its core services.

These details set the stage for your hair salon, framing its unique characteristics. A unique selling proposition (USP) distinguishes your salon. Whether it’s specialized expertise in hair coloring techniques, a focus on trendsetting styles, or exceptional client service, highlight this USP in your executive summary to showcase your salon’s distinctive value proposition.

Example: “GlamStrands Hair Studio,” strategically positioned in the heart of Trendy City Center, occupies a spacious 2,500 square feet area on Style Avenue. We specialize in a wide spectrum of hair services, including precision haircuts, coloring, styling, extensions, and bespoke event updos. Our USP lies in expertly curated trends and a focus on personalized consultations, ensuring tailor-made hair experiences for every client.

Market Overview

Understanding market dynamics and your position within them is crucial. This section should underscore the potential of the local haircare and styling market, supported by relevant data such as market value and growth rates. Discussing trends, such as the growing demand for innovative coloring techniques or customizable styling services, illuminates your salon’s positioning within the evolving landscape.

Additionally, it highlights the competitive landscape. Identify key competitors and elucidate how your salon stands out amidst the competition. Whether through specialized skills, cutting-edge styling equipment, or exceptional client satisfaction, emphasize how your salon differentiates itself.

Example: In the local haircare and styling market of Trendy City Center, valued at $4 million annually with an 8% growth rate, GlamStrands Hair Studio leads with an emphasis on bespoke styling and a comprehensive range of services. Amidst competition, our commitment to personalized client experiences positions us as the preferred choice for clients seeking expert haircare and trendsetting styles.

Management Team

Highlight the expertise and background of your management team, showcasing their capabilities in driving salon success.

This could include your salon director’s extensive experience in salon management or your marketing lead’s proficiency in brand promotion. Demonstrating the team’s competency builds credibility and assures potential investors and partners of your salon’s potential for success.

Example: At GlamStrands Hair Studio, Nathan Smith, with over a decade of expertise in haircare and salon management, leads operations. Supported by a team of skilled hairstylists and a marketing director well-versed in client relationship management, the salon maintains a focus on delivering superior client care and innovative styling experiences.

Financial Plan

Provide an overview of your financial goals and projections, offering insights into revenue targets, profit margins, and anticipated growth trajectories.

Example: GlamStrands Hair Studio aims for a projected revenue of $1.5 million annually by 2027, targeting a 17% EBITDA profit margin. Investment in cutting-edge hairstyling equipment and a strong focus on superior client care, complemented by innovative marketing strategies, drive anticipated growth and profitability within the local market.

For a Hair Salon, the Business Overview section can be concisely divided into 2 main slides:

Salon & Location

Briefly describe the salon’s physical environment, emphasizing its design, comfort, and the overall atmosphere that welcomes clients. Mention the salon’s location, highlighting its accessibility and the convenience it offers to clients, such as proximity to shopping centers or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Treatments & Pricing

Detail the range of hair treatments and services offered, from basic cuts and styling to specialized treatments like coloring, extensions, or keratin smoothing. Outline your pricing strategy , ensuring it reflects the quality of services provided and matches the market you’re targeting. Highlight any packages, membership deals, or loyalty programs that provide added value to your clients, encouraging repeat business and customer loyalty.

Industry Size & Growth

In the Market Overview of your hair salon business plan, start by examining the size of the hair care industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in personalized hair care services, organic and sustainable products, and innovative styling techniques. For example, highlight the demand for services that cater to specific hair types and concerns, alongside the rising popularity of eco-friendly salons.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your hair salon in the market and its key competitors; it’s also a fundamental component of your business plan. This analysis helps in identifying your salon’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying your competitors in the Hair Salon Industry

Begin by mapping out local hair salons, stylists, and beauty centers in your vicinity. Different types of competitors exist in the hair care industry, ranging from traditional salons to specialized boutiques and freelance stylists. Explore salons offering similar services, including haircutting, coloring, styling, and specialized treatments.

Utilize digital platforms such as Google Maps and business directories to gain a geographical perspective of competitor locations. Additionally, customer review platforms like Yelp or specialized salon booking apps can provide invaluable insights into competitors’  strengths and weaknesses  based on customer feedback.

Hair Salon Competitors’ Strategies

To conduct a thorough analysis, consider the following key aspects:

• Service Offerings:  Assess the range of services offered by competitors. Some salons may focus on specific services like keratin treatments, extensions, or eco-friendly hair care, catering to niche markets and customer preferences.
• Stylist Expertise:  Evaluate the expertise and specialization of hairstylists. A salon renowned for its experienced colorists might appeal to a different clientele compared to a salon with stylists known for avant-garde cuts and styles.
• Pricing Structure:  Compare pricing models with competitors. Analyze whether your salon’s pricing aligns with budget-friendly options, mid-range competitors, or premium salons offering luxury services.
• Marketing Strategies :  Investigate how competitors market their services. Some salons might leverage social media influencers or run targeted digital advertising, while others rely on referral programs or partnerships with local businesses for promotion.
• Client Experience:  Consider the overall customer experience. For instance, a salon might differentiate itself by offering personalized consultations, a luxurious ambiance, or additional complimentary services like scalp massages or beverage offerings.
• Technological Integration:  Observe if competitors utilize technology for convenience. Some salons might excel in online booking systems, virtual consultations, or implementing cutting-edge hair care technology.

What’s Your Salon’s Unique Value Proposition?

Reflect on what sets your salon apart. It could be specialized services like organic hair treatments, a focus on sustainable practices, or a signature line of hair care products exclusively available at your salon.

Identify gaps in the market through client feedback and industry trends. For instance, rising demand for inclusive services for diverse hair textures or the integration of wellness elements like meditation or aromatherapy into salon experiences could represent untapped opportunities.

Consider your salon’s location and its impact on services and ambiance. A salon situated in a bustling urban area might emphasize efficiency and modernity, while a salon in a suburban locale might prioritize a relaxed, family-friendly atmosphere.

First, conduct a SWOT analysis for the hair salon, highlighting Strengths (such as expert stylists and a wide array of services), Weaknesses (including high operational costs or strong competition), Opportunities (for example, an increasing trend in personal grooming and beauty care), and Threats (such as economic downturns that may decrease consumer spending on luxury services).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional discounts, engaging social media presence, and community involvement.

Marketing Channels

Choosing suitable marketing channels is crucial to engaging and attracting potential clients effectively.

Digital Marketing

In today’s digital era, a robust online presence is indispensable for salon success.

• Social Media Presence:  Utilize platforms such as Instagram, Facebook, and TikTok to showcase an array of stunning hairstyles created at your salon. 
• Email Marketing:  Develop an email marketing strategy to maintain regular communication with your clients. 
• Website and SEO:  Invest in a professional website that serves as a digital storefront for your salon. Ensure that it includes a gallery showcasing your salon’s portfolio, client testimonials, stylist profiles, a blog section featuring hairstyling tips and advice, and an easy-to-use appointment booking system. 

Local Advertising

• Print Media and Flyers:  Design eye-catching flyers and brochures that highlight your salon’s services, promotions, and contact information. Distribute these materials in high-traffic areas such as local cafes, gyms, shopping malls, and community centers.
• Community Engagement:  Establish a strong presence in your local community by participating in various events and initiatives. Sponsor or participate in local festivals, fairs, or charity events, offering hairstyling demonstrations, free consultations, or vouchers for discounted salon services. 
• Influencer Collaborations:  Partner with local influencers or beauty bloggers whose style aligns with your salon’s brand ethos. Invite them for a salon visit to experience your services firsthand and share their positive experiences with their followers on social media platforms.
• Cross-Promotions:  Forge strategic alliances with complementary businesses such as beauty product retailers, fashion boutiques, or makeup artists. 

Promotional Activities

Engage potential clients through compelling offers and loyalty programs.

• Seasonal Offers : Create seasonal promotions tailored to specific times of the year, such as ‘Holiday Hairstyle Makeover’ or ‘Summer Hair Color Refresh’. 
• Loyalty Rewards:  Launch a tiered loyalty program that rewards frequent visitors with exclusive perks, discounts, or special treatment. 
• Referral Incentives:  Encourage your satisfied clients to refer friends, family, or colleagues to your salon by offering them incentives. 

Sales Channels

Implementing effective sales strategies is vital for revenue growth and client satisfaction.

In-Salon Upselling

• Maximize Revenue:  Train your stylists to provide personalized recommendations for additional services or hair treatments to enhance each client’s salon experience. 
• Retail Products:  Display a curated selection of high-quality haircare products, styling tools, and accessories prominently within your salon. 
• Package Deals:  Offer bundled services or package deals to incentivize clients to try multiple services or treatments at a reduced rate. For instance, create packages like ‘Cut & Color Combo’ or ‘Bridal Hairstyling Package’ that combine various services into one attractive offer.

Online Booking and Sales

• Seamless Booking Experience:  Enhance convenience for your clients by providing an intuitive and user-friendly online booking system integrated into your salon’s website and social media platforms.
• E-commerce Integration:  Extend your salon’s offerings beyond the physical space by retailing haircare products, accessories, or gift cards through your website.
• Virtual Consultations:  Introduce virtual consultations where clients can receive personalized hairstyling advice, recommendations, or tips from their stylists via video calls. 

Membership and Loyalty Programs

Encourage repeat business and foster long-term relationships with your clients.

Membership Options

• Subscription-Based Plans : Design subscription-based membership programs that offer clients regular services at a discounted rate. For instance, offer a monthly membership including services like haircuts, styling, or treatments at a reduced price to encourage recurring visits.
• Exclusive Benefits:  Provide members with exclusive privileges such as priority booking, access to premium services, or special events. 
• Personalized Rewards:  Analyze client spending patterns and preferences to offer personalized rewards or incentives that align with their interests or previous purchases. 

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the hair salon’s opening, marketing efforts, client base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

The Management section focuses on the hair salon’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the salon towards its financial and operational goals.

For your hair salon business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your hair salon’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your hair salon business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Hair And Beauty Salon Business Plan Template

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Follow these tips to quickly develop a working business plan from this sample.

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.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

More hair and beauty salon planning resources

6 Strategies Guaranteed to Boost Revenue for Your Hair Salon

How to Open a Successful Salon

Men's Salon Business Plan Example

Tanning Salon Business Plan Example

Hair And Beauty Salon Business Plan FAQ

How do I write a business plan for a hair salon?

A hair and beauty salon business plan will require the same main components that any business plan must have. Those sections typically are: a cover page, executive summary, company description and history, mission statement, management plan, market analysis, marketing plan, and financial plan.

You can use this hair and beauty salon sample business plan as inspiration, but ultimately your business is unique so you'll want to be sure your business plan captures what makes you unique. Think about who your typical customer might be (your target audience), and how you might cater specifically to them with your products, services, and overall experience.

An important piece of validating your hair and beauty salon business? Talking to your ideal customers and getting their feedback on your business concept. Weave some of their feedback into your business plan in places like the company description, market analysis, and marketing plan.

How do I write a financial plan for a salon?

When writing a financial plan for a salon, it's probably easiest to think about what your expenses might be. List out these expenses. Expenses you might consider are things like licenses and permits, equipment and maintenance, products, salaries and wages, utilities, etc.

Then think about how you'll make money. Create a list of these revenue streams. This could be things like hair care products, skin care products, makeup, rental income from station leasing, etc.

With this activity you'll now have your revenue streams and expenses listed. You can plug these values into a tool like LivePlan to get support in automatically calculating your financials - or you can use a spreadsheet to start putting your financial plan together using these categories as a starting point.

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Salon Business Plan Template PDF & DOC [Free Download]

All salon owners must have a good salon business plan.

There’s no getting around that. 

Poor planning is the number one reason hair and beauty salons fail.

We all know this, but how come so many salon owners start their businesses without a business plan?

Creating a business plan may seem daunting. Salon owners I meet procrastinate over their plans because they think they need to be a massive 50-page document with many details.

But it doesn’t need to be that long.

It can be one page.

A one-page business plan is usually more helpful and effective than an old-school 50-page document. 

If you’re clear on where to take your salon business, you can create it in just a few hours.   

In today’s article, I’ll show you exactly how you can create a focused and powerful salon business plan. You can also download a salon business plan PDF and Doc template at the end of the article to get you started.

Are you ready?

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What is a Salon Business Plan?

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

Why Do You Need a Salon Business Plan?

You need a salon business plan to get in control of your beauty business and make the right decisions upfront. A well-laid-out plan gives you a clear path to follow as you set out, while it also helps spot weaknesses in your salon business early. You also need a salon business plan to communicate with others. If you need to raise money, the bank or investor will want to see your salon business plan before issuing funds.

Not having a business plan for your salon would be like building a house without drawings. This is obvious when thinking about a house, but for some reason, it’s often de-prioritized or forgotten by salon owners, which is why salons go bankrupt.

But don’t worry.

Today, you’ll learn how to write a salon business plan using the free template you can download at the end of this article. 

You Get What You Measure

We’ll soon review all the parts we need to define in your plan. But as we do this, we also need to ensure we have ways to measure the results.

If you don’t have a way to track and measure how your business performs vs. the goals and assumptions you define as part of your plan, you’ll operate blind, and you will not take the actions you need to get your business to the place we are trying to define with the plan.

This is why you should invest in powerful salon software that offers rich support for reporting and tracking the key targets you have set for your business.

The video below walks you through what reports look like in Mangomint – the software I recommend if you’re serious about your business.

Having access to this data in a simple way will be a game changer to the success of your plan. You can learn more about Mangomint and if it is right for you here .

How do I Write a Business Plan for a Salon?

There are 10 critical components that should be included in any salon business plan:

This table gives you an overview of the components you’ll need in your plan. In this article, I’ll go through each one in detail.

You can write your plan in any format you like. A regular Microsoft Word document is a common format, but you could also do it in Excel or PowerPoint.

Keep Your First Salon Business Plan to One Page Only

I’d strongly encourage you to try to fit your business plan onto one page, at least for your first plan.

You’ll need a separate Excel spreadsheet for your financial budget and detailed milestones. However, keeping the overall business plan on one page will make this the most helpful salon business plan you can create. 

Complexity means distracted effort. Simplicity means focused effort. Edward de Bono

If you can keep the plan to one page, you’ll:

• Have it ready (fast): Some salon owners take months to write their business plan using the traditional big document model.
• Keep it focused:  A heavy document with many details will distract your focus. A one-page plan, on the other hand, will keep the few key things you need right in front of you so that you can dedicate your attention to what will have the greatest impact.
• Keep it up-to-date: To be successful today, you need to be fast and agile. Having a 50 page document to update every time you make changes to your plan will make it impossible to maintain it.
• Make it easy to communicate:  People are increasingly busy. In particular, investors are the ones with whom you will share your plan. Most of them will love it if you can convey your business in just one page. I say most of them. Still, some institutions require a multi-page plan, but you can deal with that when needed. 

The Salon Business Plan Outline

We’ve arrived at the exciting part.

It’s time to start drafting your salon business plan. During the rest of this article, I’ll walk you through each heading in your salon business plan outline. I’ll explain each part and provide an example you can adapt to fit your plan.

Don’t just read through this part. Get a pen and paper out and jot down all ideas that come to mind. You’ll find these notes helpful later.

1. Salon Mission Statement

A salon mission statement is a summary of why your salon exists, what the goal of the salon is, and how this goal is achieved. It is the first thing you and others who read your plan see and should be visible at the top of your one-page salon business plan. 

Everyone who works with and for you should understand and embrace your salon’s mission. It unites your salon team.

What is a Good Mission Statement of a Salon?

A good salon mission statement should capture the unique essence of why your salon exists. It sets the direction of your salon business. It should be the north star you look at when making all decisions for your salon. It’s typically one paragraph with one or two sentences. 

It’s not easy to write a salon mission statement. Or, it’s easy to write it, but it’s not easy to boil down the overall essence of your salon in a couple of sentences. If you want to dive deeper into how to write a truly inspiring salon mission statement, I suggest you read my separate article about it here .

Salon Mission Statement Example

“Our mission is to provide a friendly, personalized service through a team of highly skilled and creative professionals. Teamwork is our most valuable asset which ensures our clients are always number one, and we strive to exceed your expectations”.

This is just one example to get your thinking going. To get more inspiration on how you can craft your salon mission statement, I’ve created a list of mission statements used by salons today . Not all are perfect, but you’ll find some highly inspirational ones in there.

2. Problem the Salon Solves

All successful businesses exist to address a problem that other people have. For example, I’ve written this blog post because I know there are people like you who need to get a business plan written for their salon but do not know where to start. 

But what problem does your salon solve?

This is worth taking a few moments to think about. Because if you don’t have an obvious problem to solve, this is a sign of weakness in your plan. And that you need to adapt how you plan to approach your salon business.

It for sure doesn’t mean that there’s no room for your new salon. It just means you must re-focus your salon on a specific client segment or niche. 

Nailing down what your clients’ problems are upfront can guide your salon to success you wouldn’t have been able to spot otherwise. 

Example of Problem a Salon Can Solve

“Women have less and less time to spend on theirselves. At the same time, the demands they place on their appearance continuously to go up. They want that healthy looking hair, perfect brows and nails that look stunning every day. But there’s just not room in their calendar to fit all these appointments in.”

If your salon is based in a business district in a city area, this could very well be a problem that a big part of your potential clients faces.

What would you say is the problem people face in the area where your salon is (or will be) located?

3. Solution the Salon Offers

Now that you know what problem your clients face, it’s time to work out how you’re going to solve the problem. The solution is what you’ll offer in your salon and how you’ll offer it. 

The Salon Offer

Your salon menu is at the core of your offer. The services you have on your menu should be inspired by your clients’ problems that you’re trying to solve. For salon service ideas you may want to add to your salon price list you can check out my other article here .

Retail products is another part of your offer that should complement the services in a way that helps address your client’s problem. 

How You Provide the Service and Products

Your solution is not only about the services and products you provide but also how you provide them. What’s the experience you offer in the salon? How are you pricing your services? Do you need to book in advance or do you offer drop-in? Do you sell retail products online?

I recommend checking out my video on designing your service menu below.

Your service menu may be identical to that of other salons in your area. But if you offer a different experience at a different price, you can still fill a gap in the market and address a problem that people have.

Example of Beauty Salon Solution

Let’s take the problem example above – where women in your area have too little time to get all the beauty services they’d like. Your salon solution could then be something like the below:

“We offer set packages of hair cut & color with waxing and nail services included. You’ll receive all services at the same time so that you get everything done in under 90 minutes.”

Being Different through Customer Experience

I want to reinforce that how you offer your service does not necessarily need to be in a completely out-of-the-box and new way for you to stand out. It can be by simply doing things better than what your competition is doing.

For example, by placing a bigger emphasis on the customer experience than anyone else. That people feel better treated and have a higher level of customer service than they get anywhere else. In my opinion, this is probably the best way to differentiate yourself today.

The software you use can play a big role by automating some while still keeping it personal. For example, we allow all our clients to text us at any time. This direct access is very valuable to clients but can be a mess if we don’t have the right technology to support it.

We run this with the two-way texting feature of Mangomint . It allows us to have client text at any time and messages can be directed within the team and you get a full overview of all client communication (like all automated reminders as well as when people in the team jumps in).

This is just one example of how you can use technology to ramp up your client service level and stand out in your area. Mangomint is quite unique here with several features designed to improve the experience you create with clients. If client experience is important to you and your business, you can learn more about how they do it here .

4. Salon Revenue Model

Your salon needs to make money..

..or it will not exist very long.

But there are many ways that a salon can make money and profit – it’s not just about service sales (even if that’s typically the bigger part of it).

How you generate income should be summarized in the salon revenue model section of your business plan.

I’ve created a separate article for you where I go through what the typical salon revenue model looks like here . In the same article, you’ll also find 6 different revenue models that you can implement to grow your business further.

Let’s go through the most common ways salons make money. I’ll then give an example of how you can outline your salon revenue model in your business plan. 

How do Salons Make Money?

Salon’s primary income comes from service revenue. For the average US hair salon, this accounts for about 92% of the income generated.  On top of that, a small portion of income is generated from retail sales (8%).

But there are several other ways a salon can make money: service revenue, retail sales, and professional education – just to name a few.

Overview of the common income streams for a hair salon

Example of a Salon Revenue Model

Let’s continue using the salon in the busy business district and the example.

“The beauty salon will make money by offering full service packages to business women working in the area with high income but limited time. Retail products will be part of the pre-defined packages and make up 25% of total salon turn over. The services packages will be offered on a subscription program or sold separately at a premium price.”

Membership & Subscription Revenue Model

Subscription-based programs for salons and spas, like the one above, are growing in popularity. These programs can create much more stability in your business, as you know what income you’ll have in the months ahead.

If you’re already using Mangomint , it’s easy to set up multiple membership programs like this (see screenshot below). Just define what should be included and how often your client should be charged. So you cannot blame not offering this on technology anymore 🙂

5. Salon Expenses

Your salon will generate not only income but also expenses. Your bigger cost pools should be reflected in your salon business plan. Let’s look at some examples of what they could be. 

Monthly Salon Expenses List

The biggest monthly expenses a salon has are:

• Rent and utility bills
• Product purchases
• Education 

The exact costs will vary from salon to salon depending on location, the number of staff, and the business model you choose.

Tip: To estimate what your salon insurance cost will be you can read my salon owner’s guide to insurance costs here .

Salon Startup Cost List

Common costs when starting a salon are:

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

For a more detailed picture of salon startup costs, you can read my article where I walk through all the costs of starting a salon here . 

Given salon equipment can be high, I’vs also put together a list of hair salon equipment that you’ll need when you open a hair salon here .

Another resource you may find helpful is also my list of salon software and other tools you may need to start your business . 

Example of Salon Expenses Description

“Wages will be the biggest cost element (40%) and secondly the rent (25%) in the busy business district. Salon profit margin target is 20% of total turnover.”

6. Target Salon Clients and Market

Do you know how many people live or work in the area where you salon is (or will be) located? And do you know how many of those that fit in the relevant target group for your salon?

These will be important numbers to know as you’re choosing the location of your salon  and crafting your plan and salon concept.  

It’s impossible to please everyone. If you try to make your salon relevant for everyone you’ll end up not being relevant for anyone. So define who your ideal salon client is and estimate what the size is of that market.

That is, how many people fall in to your client category and how much are they ready to spend on beauty services. This will make up your target market. 

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

Example of Target Market for a Salon

 I’ll continue to use the same example salon as before. 

“The salon offers express beauty package services to business women, aged 24-55, working in the financial district. There are 5’000 women in the target group that are working on walking distance of the salon. The women spend on average $100 per month on beauty services. The total relevant market is estimated to $6 million per year. “

7. Salon Competition

Do you know how many other salons there are in the area where you have your salon (or are planning to open a salon in)?

It’s obvious.

The more salons there are in the area compared to the people living or working there, the tougher competition will be.

But fierce competition doesn’t necessarily mean it’s impossible for you to be successful.

You’ll, however, need to study your competition closely. What services do they offer? How are their salons positioned? 

When you’re clear on what your competitors are doing, you can define what should be your unique points of difference. Armed with that, you can take your piece of the pay. Or even make the pie of customers bigger if you’re bringing something that no one else is offering in the area that will attract new clients who were not previously going to salons. 

Example of Salon Competition Study in Your Plan

“There are 5 other beauty salon in the area. Two hairdressers, one barbershop, one nail salon, and a spa. However, no one offers the complete services packages that we will offer. Given the search for convenience and fast services is high, we expect we can take one third of the market over the coming two year. As total market is $6 million, this would mean $2 million market for us.”

8. Salon Marketing Activities

It doesn’t matter how good you are at your craft if people don’t know your salon exists.

But marketing is more than activities that  attract new clients to your salon . It can influence all the 7 ways you can grow your salon business . 

But where do you start? There are so many salon marketing activities you could put in place.  

The choice of salon marketing activities to implement depends on your salon’s challenges. If you need to build salon clientele fast , you should focus on that. If you need to get your existing clients to come more often, you should focus on that. 

In this section of your business plan, you need to make those choices and decide on the activities you need to do to set your salon up for success.

Let’s review what you should consider and provide an example of what this could look like in your salon business plan.

Picking the Salon Marketing Activities to Focus on

Now that you know who your ideal client is and how many there are in your area. It’s time to lay out the marketing activities that you’ll focus on. 

There are A LOT of things you can do regarding marketing. I have curated a list of the most effective salon marketing activities you can implement here. 

But you cannot do all the salon marketing ideas in this list.

Instead, pick 5 now.

And make sure you can do them well.

You can always come back later to try out more things. I would be surprised if your salon marketing plan doesn’t include creating your salon brand , building a salon website , and a social media strategy for your salon

But hey, you decide 🙂

Example of a Hair Salon Marketing Plan

“Our salon will not be located on the high street with a lot of people walking by and noticing us. This is why are marketing effort will be focused on running targeted  Facebook advertizing to women working in the area with an attractive intro offer. We’ll also focus on local PR in the area as well as our salon  Instagram where we will promote the salon in partnership with local activities.  

9. Salon Employees & Partnerships and their Roles

Are you starting your salon alone or together with a partner?

Do you need to hire key people to help you launch your salon business?

Is your salon part of a franchise?

It’s quite likely that your salon will depend on other people and organizations in some way or form. You should reflect this in this section of your salon business plan. Remember to specify the role of each person involved in your business.

Example of Salon Employees & Partnership Section 

“The salon will be owned by John & Lisa and will operated with four employees from start: two hair stylists, one nail technician, and one aesthetician specialized on skin care services. The salon will also allow for booth rentals and  allow two stylists to rent a chair when the salon has opened. A highly skilled and motivated salon team will be at the core of the business which is why we will invest over 4% of net sales in team capability.”

10. Major Milestones and Salon Business Goals

Setting up a salon business is not a small project. A lot of things need to be done.

You need to obtain the required salon licenses , get salon business insurance , find a salon location ,  buy salon equipment , market yourself to new salon clients , etc., etc.

It’s frankly overwhelming to think about all the things you need to do next. It’s like a big dark cloud of things that needs to get done. But where do you start?

You need to break down this dark cloud into achievable milestones and goals. Then tackle them one by one.

If you don’t break down these massive projects into smaller tasks, you’ll either get stressed out or start to procrastinate and not get anything done instead.

This is why you need to outline your major milestones and goals.

It’s an exercise that will take a bit of time, but it’s also the most important one. It will help you significantly as you get started, and it will give confidence to investors or other people looking at your salon business plan that what you’re setting out to do is realistic.

Your milestones can be a mix of financial goals and specific activities you must complete by a certain time. Try to include all the bigger things that need to be done from now until your salon is up and running and is meeting your break-even target.

You can make this as sophisticated as you want. I would encourage you to get quite detailed here with specific and concrete steps outlined in an excel file. However, for the sake of the business plan, you can keep it to a bullet-point list of the major achievements and goals.

Salon Milestones Example

Obtain all required salon licenses by May 1st Secure startup funding by May 15th  Identify a salon location by June 1st Register the LLC by June 15th Complete salon renovation work by July 15th  Get first paying customer by July 15th  Hire first employee by August 1st Make first $3,000 in sales by September 1st Reach break even target by January 1st 

You can keep your plan at a high level in your plan but, again, you’ll need to break it down even more thoroughly in a separate document with exact financial targets to meet by a certain point in time.

Download Your Free Salon Business Plan Template

Congratulations!

You now have all the theory you need to create the most helpful salon business plan for your business. I know it’s been quite a long read, but you must get this right. I hope you feel that this was the best investment of your time today.

But it’s time to move to action now. 

It’s time for you to create your salon business plan.

You can download the lean salon business plan template I’ve created for you using the link below. This give’s you a straightforward and simple one-page business plan format that you can edit in Word. 

If you prefer to use your Word text editor to create the plan, I’ve created a template you can use.

Salon Business Plan PDF

Download my simple one-page salon business plan template in PDF version.  

Salon Business Plan Doc

Download an editable Microsoft Word document version of the salon business plan.

I’m so excited.

You’re embarking on an adventurous journey now.

And your new salon business plan will be your best companion on it.

Congratulations on taking the time to go through this salon business plan guide – it was long, I know. But maybe the most important thing you did today. 

Salon owners that plan ahead are significantly more likely to see success, so this was well-invested time on your side. I’ve tried to make this guide the best possible resource for you that are about to create a salon business plan, and I hope you’ve found it helpful.

If you did, you would make my day if you wanted to share it with your friends using the social media buttons on this page.

Any questions, just let me know in the comments box below. 

All the best with your new salon business plan!

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Related Posts

• What Licenses do I Need to Open a Salon?
• How Much Does Salon Insurance Cost?
• How to Keep Salon Staff Motivated and Loyal

John Hallberg

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