Also, if writing is not your thing, or if numbers make your head spin, hire a professional to help in these areas.
Choosing a salon name
It will make the project a lot less scary and overwhelming. Cover Page As obvious as this may be, the first page of the business plan should include your salon or spa name, address, owners' names, phone numbers, email addresses, and all other contact information. After the cover page you may also want to add a table of contents for easier reference. It also just makes the presentation look that much more polished and thought out. It should be no more than a page long and ought to include concisely stated objectives. Take the time to outline what makes your business unique.
Determining this could also help you stand out from the crowd and give you advantages over your competitors.
Go into detail about the business location, the rational as to why you chose that location, the parking situation and even the traffic patterns. Explain the history and demographic of the area, touch upon the market your business serves and how your salon or spa will benefit your customers and the local community.
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Also indicate where you see the state of your business in the next three to five years and even beyond. Mission Statement A good mission statement encompasses every element of salon or spa operation including customer service, hiring and training staff, ordering inventory, merchandizing retail, marketing your business, etc. This is also a good place to outline how salon and spa management software will help you run your salon or spa, as they have valuable features for client bookings, marketing, inventory control, as well as financial management.
Management Plan Clearly identify your organizational, management and staffing strategies. This would include the role of the owner s , as well as responsibilities and compensation for managers, office or front desk staff, and all service providers. To break down some the facts for the market analysis section, start with market demographics, which can be resourced from your local Chamber of Commerce.
Also reach out to trade organizations for industry trends and performance information and advice for marketing, advertising and promotions. Next, take the time to identify your local competition and research how their business is doing. Marketing Plan The first portion of the marketing plan section should outline how your salon or spa is or will be positioned in the market.
Beauty Salon Business Plan Template
For example, are you a color-focused salon with an upscale clientele, does your spa cater to couples and or working professionals with a relaxing child-free environment or are you a full service salon that is family oriented. Break down all client demographics based on age, gender, level of education, average income, and occupation and then outline typical client needs, likes, desires, and even perceptions.
Next, identify how your salon or spa appeals to those targeted clients and their individualized needs. Setting realistic objectives and goals, outline a series of very precise statements detailing how you will capture your target audience and market share through specific merchandising, promotion, advertising, and public relations programs. This is one area were most salon or spa owners begin to go cross-eyed.
They can help with both the synopsis in the business plan for this section, as well as create the specific types of documentation required by lending institutions. Also, understand before reading on that you are providing estimated numbers for each of these areas based on research and realistic projections.
If your salon or spa is already established, include previous documentation in all of these areas listed above and extrapolate forward accordingly. Whether you do it yourself or use a CPA, here are some of the important components of the financial plan section of your business plan document. For the financial plan first identify how much of your own capital you have to invest in the business. As the voice of experience, I highly recommend that you not tap every bit of your savings, as you will not have anything to fall back upon should the need arise.
If you are looking to expand or remodel an existing facility, list expenses much the same way but take into consideration the impact the project will have on your existing business. If you are closing down the salon for the remodel or having work done while the salon is open, clearly outline the financial impact either scenario may have on your business.
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In addition to everything above, make a special effort to plan to save two to three percent off the top of your revenues and hold it aside for a rainy day. You never know what the business may throw at you and it speaks volumes to a lender if you have a plan in place in case issues do arise. This important statement should break down the operating costs to run the salon or spa and the income based on both retail sales and service categories such as color services, haircuts, styling, facials, etc.
List all expenses that go into generating income such as cost of goods, commissions, retail products and sales tax for retail sales. Next, list all operating costs such as rent, utilities, insurance, association dues, bank charges, payroll, advertising, etc. Break-Even Analysis A break-even analysis is an examination to determine the point at which revenue received equals the costs associated with doing business.
It occurs when the fixed and variable costs intersect with revenue. This is one area where you may want to consider graphing out your findings.
Hair and Beauty Salon Business Plan
Cash Flow Statement To prepare a cash flow statement you'll use many of the same figures as you did for the profit and loss forecast. The main difference is that you'll include all cash that goes in and out, not just sales revenue and business expenses. For example, you'll include loans, loan payments, transfers of personal money into and out of the business, taxes, and other money that isn't earned or spent as part of your core business operation.
The balance sheet, in contrast, is a specific moment in time. PandaTip: As a salon is a business that is very locally-focused, you can research the area surrounding your planned location and come up with a list of salons and barbers already operating in that area. Some of these locations might not be in direct competition with you depending on your target demographic, but you should at least mention them as potential competition. PandaTip: After determining your demographic and analyzing your competition, you should go into detail as to how you will appeal to that demographic over your competition.
This should be a logical progression, but get creative! If you are entering an already existing market as a new business you will have to let people know you are there somehow.
The possibilities are really endless, but understand that your brand identity is largely defined with the manner in which you market yourself. PandaTip: While the services offered by a salon are typically very straightforward, you still want to go into detail here with what you will do.
Describe any peripheral services you might offer such as hair coloring and shaving. You may also offer a line of products that can be a good upsell to your clientele. PandaTip: This section is where you get into the details of operating your business. PandaTip: Not only should you get into detail with regard to the arrangements you have in place and will be seeking out with suppliers for shears, clippers, and other standard salon equipment, but you may have a strategic partnership with a hair product manufacturer. Describe any you have in the works or you will be seeking out. PandaTip: Salons and barber shops often contract out with their staff and you will probably have some sort of guidelines that govern all your arrangements with such staff.
Describe here how many chairs you will be looking to fill and hours of operation. PandaTip: Stylists and barbers are subject to licensing requirements and so you should describe the requirements for your staff and for your business.
Hair Salon Business Plan Pdf - Fill Online, Printable, Fillable, Blank | PDFfiller
Additionally, you may have to acquire licenses to operate as a business in your location depending on the administrative rules of your town. PandaTip: Here, you can itemize your estimated ongoing expenses. PandaTip: You might be a sole proprietor or you could be operating a big company opening up a new location.
Either way, it is important that you describe to your reader a comprehensive biography of the minds behind this venture. Education, experience, and even hobbies and family life are relevant and welcome information to include here. Feel free to include photos of previous salons, satisfied clients and other example of your success and experience.
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