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How to Write a Beauty Products Business Plan

10 steps to writing a beauty brand business plan

Updated: 22 March, 2022

As a founder of a beauty brand start-up, you’ll need a clear vision, a well-written beauty products business plan and to have put some skin in the game in terms of hard work, time and funds. But how do you go about getting started on that all-important business plan and what should it contain?

In this blog post, we summarise the 10 key steps new beauty entrepreneurs need to work through to write a business plan for a cosmetics company. This is essential reading for anyone wondering how to start a beauty business from home as it makes you aware of just what you will need to think through and start planning for.

Running a cosmetic business requires you to be very organised. You will need a strong business plan that leads you through all of the main components of your cosmetic business. The relief is that your business plan does not need to be the size of a thesis. In fact, the more concise it is the better as you will be able to tackle it and feel like referring to it in the future.

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Our step-by-step video guide below is based on the business planning exercises we provide as part of our Diploma in Beauty Brand Business Management . The Diploma is an extensive, six-module course that takes you on an intensive journey from would-be entrepreneur to empowered founder armed with a structured business plan. Pre-enrol to find out more about this diploma and our other courses.

10-Step Guide to Your Beauty Products Business Plan

Step 1: why your beauty business needs a plan.

The first step is to set yourself a challenge: ask yourself why you are writing a business plan in the first place. There is no point in going through the motions of writing a beauty product business plan. You need to buy into the very concept of business planning.

We know that the thought of writing a business plan can seem daunting. However, your business plan is a necessary and very important strategic document as it focuses your energy, time and resources on a clear end game; not only that of launching a successful beauty business, but also of ensuring it has the potential to thrive longer term.

Your business plan isn’t just to show potential investors and otherwise hide away in a filing cabinet. It is a tool to refer to every time you are faced with important decisions. Your plan guides your decision-making and makes the everyday of running your beauty business simpler and smoother.

It will take time to write your business plan as it summarises the hard work you need to do beforehand in discovering your vision, working out your ‘why’ and what your brand stands for, what you’ll be selling, where you’ll be selling, who your competitors are and what your market gap is, and how you’ll fund your business. It also entails drafting a full financial plan, based on things like sales’ forecasts.

With this mindset challenge out of the way, let’s cover the key areas of your plan in the next steps.

Step 2: Your beauty brand mission and vision

We’ve seen many start-up beauty entrepreneurs rush into designing their branding before they have even worked out why they are in business. Before branding, come your vision and mission. Often confused and easily ignored, these two statements are the guiding lights of your business.

First, let’s define them. Your vision is about your bigger dreams. It isn’t simply that you want to make organic formulations to sell to anyone. Your vision statement sets out how you want to make a difference with your beauty brand. At Formula Botanica, our vision, in brief, is to make natural formulation as commonplace as cookery.

Your brand mission statement says how you intend to achieve that vision. At Formula Botanica, our mission is to ‘teach the world to formulate’. As you can see from our example, the mission is practical and active and states how we accomplish our vision – through teaching and our online courses.

When you write your brand vision and mission statements, you’re not writing boring, bland, catch-all statements. Coming up with why your beauty brand exists and how it serves your customers is not a quick back-of-the-envelope exercise either. It may take you weeks to define your vision and mission, but this is time well spent as these statements are the heart of your beauty business. Don’t move on to the next steps until you have total clarity on them.

Step 3: Your niche and customers

It’s all well and good having your vision and mission, but if you don’t know your niche in the beauty market nor much about whom you are selling to, then you might not have a business at all. We’re sure you’ve heard this advice a hundred times, but you need to know exactly who you’re going to be selling to. You need to understand who this type of person is, how they live and how they shop.

Once you know who your target customer is, all of a sudden everything clicks into place and becomes easier in terms of selling. You know which marketing messages work best for your customer, you know what they’re looking for and you know how to sell to them. When starting your beauty products business, you need to have a niche and that niche cannot be ‘organic’ or ‘natural’. There are so many untapped niches in the beauty industry, for instance, skincare for women in their fifties, skincare for certain types of athletes (swimmers, runners, etc.), and skincare for teenage boys.

Jot down bullet points about your ideal customer; include where they live, what other brands they buy, how they holiday, what their key skincare issues are and so on. Be brief but on point. Home in on a single person – often called your brand ‘avatar’. It might sound tedious to do, but once you have that person clearly in your mind, everything in your business will work to meeting their needs. Just ensure that you really do have a niche that exists.

We reported on some trends from In-Cosmetics Global , in Paris (April 2019). We’re not suggesting you need to keep up with the latest fad in the beauty industry, but do your market research thoroughly so you can decide where to position your brand and products.

Step 4: Your beauty products

Your business plan needs to detail your initial product(s) and explain what their sales’ proposition is and how they meet your target customers’ needs. This sounds simple to do, but believe us when we say we have seen new beauty entrepreneurs incur huge expenses as they change their direction and minds on products just after launching. Bringing new products on board can often be a way of diverting yourself from the hard task of marketing and sales.

When you learn to formulate natural skincare, you create a diversity of products without much thought about how they fit together as a range or as a beauty routine for customers. When you think like a business, you need to understand very clearly what you are selling and what proposition your products offer your target customers.

It is possible to launch with a single product, and there are well-known examples of beauty brands with only a ‘hero’ product to their name. If you are creating a range, work out how the products complement each other. Also, given issues of sustainable consumption, think about how a single product can demonstrate a unique selling proposition by multi-tasking.

Your range has financial implications so you need to decide how many products to launch with and which create a minimal viable range that makes sense for your budget and for your customers’ needs. Above all, your cosmetics’ range will need to demonstrate it has a place in the market and how it improves your customers’ lives.

Step 5: Your competitors

Yes, your competitors most certainly have a place in your skincare business plan. You, as the founder, bring your individual perspectives and experiences to your brand, so in one sense you have uniqueness built into the foundations of your beauty business. That said, you need to keep a close eye on the movers and shakers in your niche and in particular at your product range’s price point. Knowing your competitors keeps you on your toes and is information any investor will ask for, up front and early on.

It can be frustrating at times to research your competitors as their websites might be PR speak and not give much away. Look for interviews with the founders and follow them on all their social media to glean more. Competitor research can help you identify areas where your brand can thrive and can show you more effective ways to grow customer loyalty – and build your business. See what they are doing so that you know what’s working for them and what isn’t. Write a list of their strengths and weaknesses to see how you can do better. You also need to know where to position yourself in comparison to your competitors.

Don’t obsess about your competitors, but check in on what they are up to every few months. Your aim is not to copy them, but to control your beauty products’ conversation. Again, if you have clarity on the earlier steps – mission, vision, niche and customer – then you are on solid ground. It is just good business sense to know what is going on in the market.

Step 6: Your manufacturing strategy

Your manufacturing strategy is a large part of your business strategy. You need to decide whether you will be producing your beauty products yourself in your own (home) lab – according to Good Manufacturing Practice (GMP) , using a contract manufacturer or opting for private label products. You need to define also which route suits you at launch and mention any plans to switch model later on.

Each model has its pros and cons depending on your mission and vision, as well as implications for important aspects of your business such as distribution, logistics, financing, and contractual obligations to retailers who stock your brand. How many units of products do you envisage creating a year? Which model suits your entrepreneurial ambitions and lifestyle? As you can see, your business model and manufacturing model go hand in hand. Having an end goal in sight is critical to shaping your overall business plan, the amount of capital you need to raise and the way you conduct your day-to-day operations.

There is no right or wrong choice here, but ensure you know the implications of whichever route your opt for. It might sound perfect making your own products at home in small artisanal batches, but we do know of beauty entrepreneurs who find their business sky rockets faster than they imagined. They then play catch up trying to find and fund outsourced manufacturing so they don’t let retail stockists down. This is a critical area of your business plan and needs you to consider your vision and ethos, as well as think about your own time, hiring staff, and your overall financial situation.

Step 7: Your retail strategy

We’ve seen many indie beauty entrepreneurs think they can sell direct to consumer from their website alone. To do this successfully, you need to invest in becoming a proficient digital marketer – or outsource the role. It can be tempting at the outset to want to sell directly from your own website because your keep all the profit yourself. However, although you receive lower profit margins by having your products stocked in stores and e-stores, retailers can help get your products sold and your brand known as they have a ready customer market; whereas you are unknown and have to build awareness of your brand from scratch.

The work you have done so far in defining your niche, customers, competitors and product range should indicate which retailers suit your brand best. Will your brand fit into the mass, so-called ‘masstige’, premium or luxury retail categories? And which retailers do you hope will stock your brand? What are their likely margins and what implications does this have for your manufacturing model and financial forecasts? Will you also work with distributors in certain markets, especially overseas, and again, how do their margins affect your bottom line?

You must address all these questions and more in your beauty business plan . It is no good working out how and where to sell once your products are all stacked in boxes in your living room or at a warehouse!

Step 8: Your funding

We might have left finances to last, but finding the money to fund your business is an issue that dominates your entire business plan. As you’ve seen, each previous step has financial implications. As we mentioned in our post on how to start a cosmetic business from home , you won’t be able to run a successful beauty brand without having a firm grip on finances. Having sound plans for raising finance at various junctures in your business is sound business practice.

Your business plan needs to cover the different types of funding options available to you now and in the future, whether ‘love money’ loaned from friends and family, bank loans or other sources such as crowdfunding. it needs to look at short-term and long-term sources of finance. You need to understand and pre-empt what your potential investors will ask you about financing and demonstrate in your business plan that you and your business are worth investing in.

Step 9: Your financial forecast

If you are reading this, it is likely you are thinking of starting an indie beauty business. As business plans are best written in the first year of your beauty business, you may well be pre-revenue when you draft it – or need it when pitching to investors. You may not have sales yet, but you can still show some key figures on the size of your market and your brand’s potential.

To introduce your financial forecast, you should include a timeline showing your milestones, such as when you started, your key achievements, any brand or packaging development, what stage you are at now, i.e. do you have a product in creation and how much have you invested or fund-raised so far? If you are already selling, then you can show how much investment has gone into the company already, what returns and sales you have and what your financial projections are.

There will be a need for you to factor in expenses you hadn’t thought of. One such ‘hidden’ expense we see many beauty entrepreneurs fail to predict is the need to cover retailers’ promotions. Stores generally expect you to contribute to their promotions of your products. Cashflow is everything in a business, even one selling successfully. You may face shortfalls of cash while waiting for retailers to pay you. That time lag means your day-to-day business can grind to a halt if your cash is tied up in stock and you have nothing to cover buying in more raw materials to keep production going or to cover promotions or seasonal campaigns.

As you can see, financial forecasting is about your day-to-day business, and this alone is one reason you need to revisit your business plan frequently. You need to keep an eye on your profit and loss sheets and map the trends monthly. Learn as much as you can yourself about financial forecasting and measuring your business’ financial health. Having an accountant or financial expert assist with this information can help you be better prepared both day to day and when talking about your finances to potential investors.

10: What to do with your plan now

Congratulate yourself. You have made it through the first draft of your business plan – or roadmap. But, now comes perhaps the hardest step of all; that of doing something useful with your business plan, as opposed to archiving it in some filing cabinet. This is a plan to revisit and adjust, and to assess your business’ health and performance against. It is not a document to present to banks and potential investors at the start of your business journey and then forget all about.

So, what exactly do you need to look at it for, and how often? Let’s take just a few examples of areas you will need to review.

First, you need to revisit your financial forecast monthly. See how your budgeting is measuring up against actual sales and expenses. Are things on track? Either way, yes or no, you will have a benchmark against which to measure your current business health. This information will guide you as you go forward.

Then, revisit your competitors and the overall market situation. How have things changed and how might this affect your product range, pricing or development? Be aware that you need time to get established in your market. Knee-jerk reactions can be costly. But use your plan to monitor things.

Examples of areas to review annually are your mission, vision and niche. Was your research when drafting the plan accurate? Have you proved the concept of your brand and product range? Access to a mastermind group of like-minded business founders, even in different sectors, or a mentor can help you work through any changes you think are necessary to your core statements. Again, think these through basing decisions on financials too.

Pre-enrol in a Formula Botanica course and learn how to start a cosmetic business

We hope our points have given you the outline of what you need in to think through in starting a beauty business. If you have a mission to create a beauty brand that’s bigger than yourself – a skincare brand, haircare line or makeup range that changes people lives – we can help you learn how to formulate your own products and all about bringing a brand to market.

Pre-enrol now in our Diploma in Beauty Brand Business Management – the ultimate online training programme in starting or growing your indie beauty brand. We like to refer to it as a Beauty Brand MBA. It is a combination of award-winning teaching materials and a web summit with 30+ influential speakers drawn from the best in the beauty and business community.

Or why not pre-enrol on one of our formulation diplomas and courses in skincare, haircare and cosmetic science to change your life through natural formulation? All our courses are fun and empowering and can be career changing.

Your start-up costs with a beauty business vary according to where you set your sights and relate very much to your personal goals and circumstances and not only to current funds and cash flow. The ballpark figure you find is around US $20,000 or similar in Euros. If you wish to outsource, initial start-up costs are high as most contract manufacturers require large minimum order quantities. Similarly, your branding and packaging also rack up costs especially if you are aiming at the more luxury end of the market. Writing a business plan to help you think through all the variables can give you a clearer idea of your beauty business start up costs and help you plan finances as your business grows. You can start on a small budget by making product at home to sell at local markets. Work out your personal goals and lifestyle needs first to have an idea of what costs you will face.

Indie beauty is flourishing and ever more skincare entrepreneurs find a niche and enter the market. But, finding a niche that resonates with customers is key to defining what type of beauty business to launch. Being clean, green, natural or even organic is not enough these days to necessarily differentiate your potential beauty business. Think carefully about how your beauty products will resolve the issues and fulfill the needs of a clear segment of consumers. Do not be all things all to people. By researching for and writing a beauty brand business plan, you will shape your ideas and define a viable product offer, customer base and route to market.

Join us at Formula Botanica, where tens of thousands of students and followers take our free and paid online courses to learn how to formulate organic skincare and haircare for themselves or to sell and also how to set up a beauty brand and business.

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Liz Ayling | Formula Botanica

Liz is Formula Botanica’s Content Coordinator and joined our team in August 2020. Liz worked as a professional blogger, journalist and site developer for many years and was also part of the Formula Botanica student community. Read more about the Formula Botanica Team .

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Cosmetic Business Plan Template

Written by Dave Lavinsky

How to Start a Cosmetic Business

Cosmetic Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their cosmetic companies.

If you’re unfamiliar with creating a cosmetic business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a cosmetic business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your cosmetic business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a cosmetic business or grow your existing cosmetic company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your cosmetic business to improve your chances of success. Your cosmetic business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Cosmetic Businesses

With regards to funding, the main sources of funding for a cosmetic business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for cosmetic companies.

Finish Your Business Plan Today!

How to write a business plan for a cosmetic business.

If you want to start a cosmetic business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your cosmetic business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of cosmetic business you are running and the status. For example, are you a startup, do you have a cosmetic business that you would like to grow, or are you operating a chain of cosmetic businesses?

Next, provide an overview of each of the subsequent sections of your plan.

  • Give a brief overview of the cosmetic industry.
  • Discuss the type of cosmetic business you are operating.
  • Detail your direct competitors. Give an overview of your target customers.
  • Provide a snapshot of your marketing strategy. Identify the key members of your team.
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of cosmetic business you are operating.

For example, you might specialize in one of the following types of cosmetic businesses:

  • Niche market cosmetics: This type of cosmetic business specializes in one particular segment of cosmetics. For instance, a niche cosmetic business could sell only fragrance-free products, all vegan products, or gluten free products.
  • High-end cosmetics: This type of cosmetic business develops and sells premium make-up and skin care products.
  • Kids cosmetics: This type of cosmetic business specializes in producing inexpensive play-makeup products for children.
  • Beauty blogger/influencer: This type of cosmetic business involves trying out products from different types of cosmetic brands and providing tutorials, reviews, and other helpful information for people who may be interested in the products. Usually, beauty companies will pay the blogger/influencer to sample or endorse their products.
  • Make-up Artist: This type of cosmetic business involves providing make-up services for special occasions like weddings or graduation ceremonies.

In addition to explaining the type of cosmetic business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, the number of products sold, and reaching $X amount in revenue, etc.
  • Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the cosmetic industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the cosmetic industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cosmetic business plan:

  • How big is the cosmetic industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your cosmetic business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your cosmetic business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of cosmetic business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Cosmetic Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cosmetic businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes mass market cosmetic brands and retailers, as well as secondhand cosmetic retailers. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of customers do they serve?
  • What type of cosmetic business are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you make it easier for customers to acquire your products?
  • Will you offer products or services that your competition doesn’t?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a cosmetic business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of cosmetic company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide premium make-up, skin care products, or esthetician services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your cosmetic company. Document where your company is situated and mention how the site will impact your success. For example, is your cosmetic business located in a busy retail district, a business district, a standalone store, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your cosmetic marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Advertise in local papers, radio stations and/or magazines
  • Reach out to websites
  • Distribute flyers
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cosmetic business, including answering calls, stocking shelves, greeting customers, and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your cosmetic business to a new city.  

Management Team

To demonstrate your cosmetic business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing cosmetic businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a cosmetic business or successfully running a small salon.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you expect to serve 20-30 customers per day, and will each customer purchase 1-5 items on average? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your cosmetic business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cosmetic business:

  • Cost of equipment and supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or photos of happy customers using your products.  

Writing a business plan for your cosmetic business is a worthwhile endeavor. If you follow the template above, you will be able to prepare a winning beauty product business plan, makeup business plan or a business plan for a cosmetic company. You will understand the cosmetic industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful cosmetic business.  

Cosmetic Business Plan FAQs

What is the easiest way to complete my cosmetic business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your cosmetic business plan.

How Do You Start a Cosmetic Business?

Starting a cosmetic business is easy with these 14 steps:

  • Choose the Name for Your Cosmetic Business
  • Create Your Cosmetic Business Plan
  • Choose the Legal Structure for Your Cosmetic Business
  • Secure Startup Funding for Cosmetic Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Cosmetic Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Cosmetic Business
  • Buy or Lease the Right Cosmetic Business Equipment
  • Develop Your Cosmetic Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Cosmetic Business
  • Open for Business

Don’t you wish there was a faster, easier way to finish your Cosmetic business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan writers can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Business Plan Template For Small Businesses & Entrepreneurs

Free Hair and Beauty Salon Sample Business Plan PDF

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Elon Glucklich

6 min. read

Updated November 28, 2023

Looking for a free,  downloadable hair and beauty salon sample business plan Word doc  or  PDF  to help you create a business plan of your own? Bplans has you covered.

Keep in mind that you don’t need to find a sample business plan that exactly matches your business. Whether you’re launching an upscale, full-service salon in a bustling city or a neighborhood barbershop, the details will be different, but the bones of the plan will be the same.

Are you writing a business plan for your salon because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company.

No two salons are alike. Your business model will be different if you’re renting space to independent hairstylists, rather than taking on employees, for example. So take the time to create your own financial forecasts and do enough market research so you have a solid plan for success.

  • What should you include in a hair and beauty salon business plan?

Your hair and beauty salon business plan doesn’t need to be hundreds of pages—keep it as short and concise as you can. You’ll probably want to include each of these sections:

  • Executive summary
  • Company summary and funding needs
  • Products and services
  • Marketing plan
  • Management team
  • Financial plan

One of the things that makes a salon business plan different from some service-based business plans is that you might decide to offer a combination of products and services.

Maybe you’ll sell shampoo, beard oil, or other cosmetics and beauty products, in addition to offering services like haircuts, manicures, or massages. If that’s the case, make sure you include your ideas for upselling products to customers to increase the value of every appointment you book.

Here’s an example of a salon business plan outline.

Hair and beauty salon sample business plan outline.

  • The 7 elements of an effective hair and beauty salon business plan

1. Executive Summary

The  executive summary  provides a high-level overview of your business plan. It should outline the objectives of your hair and beauty salon, such as to offer high-quality services, to expand the client base, or to break into a new market.

What’s your biggest business challenge right now?

Your salon’s mission statement should describe its purpose and what sets it apart from competitors. For example, you may aim to offer a personalized experience for each customer or provide eco-friendly hair and beauty services.

The keys to success are the factors that will help your salon thrive. These may include a prime location, hiring experienced staff, excellent customer service, or a unique product and service range.

2. Company Summary and Funding Needs

The company summary offers a detailed overview of your salon, including its legal structure , location, and history. Also, it highlights your salon’s funding needs if you are seeking financial support.

Clearly state how much funding you need, what you will use it for, and how it will benefit the salon. For instance, you may need funds to renovate the premises, purchase equipment, or boost marketing efforts.

3. Salon Products and Services

This section should detail the products and services your hair or beauty salon will offer. These may include haircuts, hair treatments, manicures, pedicures, massages, and beauty treatments.

If you plan to retail beauty products such as shampoos, conditioners, or skin care items, include this information too. Highlight any unique services or products that differentiate your salon from competitors.

4. Salon Marketing Plan and Analysis

Your marketing plan should outline the strategies you will use to attract and retain customers. These strategies might include social media advertising, loyalty programs, partnerships with local businesses, and special promotions.

Additionally, you should conduct a thorough market analysis. Understand your target customers, their preferences, and their spending habits. Identify your competitors, their strengths and weaknesses, and how you can differentiate your salon.

5. Salon Management Team

The management team section provides information about the salon’s key personnel. This could include the salon owner, managers, stylists, beauticians, and other staff members. Highlight their roles, responsibilities, qualifications, and experience.

If you plan to rent chairs to independent stylists rather than hiring employees, describe how this arrangement will work and the advantages it offers for your business.

6. Financial Plan and Forecasts

Your financial plan should present detailed financial projections, including revenue, costs, and profitability. Include a cash flow statement, income statement, and balance sheet. This section should clearly demonstrate the salon’s potential profitability and financial viability.

Also, outline your pricing strategy. How have you priced your services and products, and how do these prices compare with competitors? What are your wage costs, and how will they affect your profitability?

7. Appendix

The appendix includes any additional supporting documents that complement your business plan. This might be market research data, lease agreements, employee contracts, or licensing and permit documents.

While not always necessary, the appendix can provide valuable context and proof to support your business plan’s content.

  • Crafting a Successful Salon Business Plan: Key Considerations

Understanding your target clientele’s needs is crucial to writing a hair or beauty salon business plan that you can put into action. To ensure your business plan is the foundation of a growing operation rather than just checking boxes, ask yourself whether you’re taking these considerations into account.

1. Comprehensive Services Offering

In the beauty industry, customer preferences vary significantly, and staying versatile in your offerings can help cater to a broader clientele. Include a wide range of services that cater to different demographics. You may also consider offering unique or specialized services that distinguish your salon from others.

2. Pricing Strategy

Pricing can make or break your salon. Competitive pricing attracts customers, but your pricing should also cover your costs and ensure profitability. Effective market research can help you understand the average cost of services in your area, which you can use to set your prices competitively.

3. Salon Atmosphere

The ambiance of a salon plays a significant role in attracting and retaining customers. Consider factors like décor, cleanliness, and customer service when planning your salon.

4. Staff Training and Expertise

Quality service is crucial in the hair and beauty industry since word-of-mouth exposure from existing clients is a major driver of new business. Investing in ongoing staff training ensures that your team stays updated with the latest trends, techniques, and customer service skills.

5. Digital Presence

Although word of mouth is one business driver, many of today’s customers research online before visiting a salon. Having a strong online presence, including a well-designed website, effective search engine optimization and active social media accounts, can significantly boost your business.

  • Download your free hair and beauty salon sample business plan PDF

Download this  hair and beauty salon sample business plan PDF  for free right now, or visit Bplans’ gallery of more than  550 sample business plans  if you’re looking for more options.

There are  plenty of reasons  salon business owners can benefit from  writing a business plan —you’ll need one if you’re seeking a loan or investment.

Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

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See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Elon Glucklich

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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How To Write the Perfect Salon Business Plan for Your Salon in Just 7 Simple Steps

How to write the perfect salon business plan for a salon

The US salon industry includes more than 80,000 establishments with a combined annual revenue of about $532 billion. So opening a salon, and owning a salon business is a pretty safe bet; it’s steady and profitable . But lack of proper planning makes it difficult to juggle all the aspects of your business, starting from marketing and sales, to accounting, and whatnot. 

Here’s a quick tip! Searched all over the internet for concrete information on how to open your own salon? Confused? Don’t worry, we’ve got you covered! Check out this blog on opening your own salon business that gives you a comprehensive 10 step guide to help you get started now.

Writing a properly structured salon business plan is crucial to guarantee your salon’s success in this highly competitive market. Whether you’re wanting to secure a business loan for your salon or trying to expand or reinvent your salon business, a business plan for your salon will help you get there.

So how exactly would a business plan help you?

  • A business plan will help you to figure out what you want your salon to offer, where you aim to take your salon’s growth, what kind of people you want to cater to, and who you’re competing against . 
  • If you are looking for investment from private investors, banks, or any other lending institutions or public grants, structuring a business plan is crucial. 
  • A business plan will help boost your salon business’s productivity through improved oversight and direction, and help you make informed decisions.
  • As your salon business starts to grow and gain clientele, a well-developed business plan can help you acquire the capital needed to expand to new locations.

How to make the perfect business plan for your salon business?

Whipping up a perfect business plan can be pretty daunting because it needs to be immaculate. No worries! Here we’ve broken down the entire process into 7 easy-to-follow , foolproof steps, along with their templates, to help you create a successful salon business plan. 

  • Write a mission and vision statement
  • Create an executive summary
  • Analyze and identify your target market
  • Perform a competitor analysis
  • Write your salon’s business description
  • Make strategies for advertising and outreach marketing
  • Figure out your financial plan

Whether it’s a hairdressing salon business plan, a general beauty salon business plan, or even a  small salon business plan for opening a salon on your own from scratch, we’ve got you covered. This is a complete, comprehensive guide to help you in the process of making a business plan for a salon. It’ll give you a basic understanding of how to write a salon business plan in the easiest possible way. 

1. Write a mission and vision statement

I) mission statement .

It articulates the immediate purpose of your salon business. Under this, you can state all the short-term goals that you plan on achieving with your salon within 6 months , stretching up to a year.

Here’s how you can nail a perfect mission statement

  • Value – What is the value of your salon in the market? How can it help your clients? 
  • Inspiration – Why should people want to come to your salon?
  • Remember to make your mission statement sound plausible and reasonable . Also, make it specific and concise – clarify all your short-term goals and the timeframe within which you’re planning on achieving them. 

ii) Vision statement

 Now, where do you aim to take the salon’s growth in the next 5 years ? Well, if you’re dreaming, dream big! And you can be as ambitious as you want, the sky’s the limit. 

Setting strategies for a longer-term makes sure that you don’t stumble on the road to success. It makes the overall structure of your business stronger. It prepares you for anything that the fickle market demands from you and throws at you.

Here’s how you can write a perfect vision statement :

  • Review your long-term goals in a way that you can analyze how achieving your long-term goals could impact your business and the salon industry in general.
  • Derive how your clients could benefit from the visions that you would be implementing.
  • Your business’ end goals can drive your vision statement, For instance, if you’re planning to branch out to different locations after, say, 5 years, you can frame your vision statement in a way that states to make your salon a household name, popular in the neighboring areas and so on. 

2. Create an executive summary

After you write the mission and vision statements, you can summarize everything that you’re aiming to achieve with your salon under an Executive Summary. Whether you’re writing a business plan for a hair salon or a business plan for a beauty salon, you should be properly aware of what your intentions are with the salon. This section is the most important part of your business plan as it dictates the tone of your salon, and makes an impression. 

Remember to keep this section very brief and concise to give an overview, as you’ll be elaborating on these points in the later sections of your business plan. 

If you’re having trouble writing your salon’s executive summary, you can always write it after you’re done with all the other sections in the business plan . This will give you a better understanding of your salon business and help you succinctly put your points together to describe it. 

What can you do to write the most fitting executive summary for your salon?

  • Start by stating all the short-term goals that you plan on achieving within, say, 6 months or a year.  Remember to keep your goals realistic and feasible. 
  • Summarize your approach towards your business, to give an overview of how you will run things in your business.
  • Clearly and briefly express the value proposition of your salon, and how it would potentially position your business in your target market.

How to write your salon’s executive summary: A simple template

Divide your business summary into sections of opportunities and expectations, and put brief points in those subsections in the most convincing way. The following template can help you with this :

  • How are you trying to achieve recognition in your target market?
  • What is your salon’s tagline/motto?
  • What is your salon’s growth plan for the first 6 months after its launch?
  • Which demographic is your salon meant for?
  • How are your services aligned with your target market?
  • How many salons are there in the area of establishment of your salon?
  • What products and services do they offer?
  • What is the range of variation of their clientele?
  • What products and services is your salon offering?
  • What is the unique selling point of your business? For eg: If your salon is the only one in the area that offers holistic services with spiritual healing, then put it down as your differentiating point.
  • How are you different from your competitors? For eg: Is it the lower cost of services of your salon, or the vast range of services that make your salon stand out? 

Make sure you catch the eye of potential investors in the above section. Don’t forget to state how you can attract potential customers. 

  • What is the salon costing you? List down the projected expenses and costs that come from daily operations, rent, staff hiring, cosmetics, appliance expenditures, etc. for the first 6 months. 
  • What is the cash flow and how much profits are you bringing in for the initial 6 months? This is completely variable and the reaction of your target market to your salon decides this. So aligning your services with them is of utmost importance. 
  • Why does your salon need financing? For eg: you can convey that you’re trying to meet the anticipated growth of your salon in the market.

3. Analyze and identify your target market

Analyzing and defining a target market for your salon is very important as it goes hand in hand with your salon’s growth and outreach . 

A beauty salon can service all genders and age groups. Your target audience can include working professionals, college students and teenagers, homemakers, to-be-Brides, and even children. And each group will require different types of services.  So make sure you list down each individual section of your target market and what services they would require. 

Here’s a checklist to make sure you’re going the right way about it. 

Steps to analyze and identify your target market 

  • Find out what kind of people you think would resonate with your salon’s services the most. For example, if your salon offers low commitment (temporary) coloring services, you can get a lot of customer traffic from the millennials. 
  • As an extension to that, find out if your services are more inclined to serve a particular demographic better, or if you’re good with people of every demographic.
  • Keep up with the trends in the salon industry to know what’s hot and what’s passé.
  • Peek inside the brains of your target clients to know exactly what they want or like and tune your salon accordingly.

An easy-to-follow template to proceed with your target market analysis

  • Segregate the people in the market pool into different categories.

Do not forget these bases:

  • Personal income/occupation
  • List out the services that your salon would offer that would fit one or more of the stated categories above. 

For eg: If your salon offers Diamond Facial at $200.00, then you can list this service out as follows :

Target market checklist with service, age, gender, and income range

  • Use social media to get an understanding of the trends in the market at present. Join salon and beauty communities on Twitter, Facebook, and Reddit, and follow beauty bloggers on Youtube and Instagram. 
  • Look up the people who subscribe to or follow these beauty pages and beauty bloggers to identify which trends appeal to a certain demographic. You can tell a lot about your target market’s behavior from the posts they like and the thoughts they share in the comment section of these posts and videos.

4. Perform a competitor analysis 

With a great market demand, several strong competitors emerge. And we don’t want your salon to get lost in the sea of other salons now, do we? As it goes, keep your clients close but your competitors closer.

Figuring your competitors out gives you a necessary nudge in the right direction to take your business plan forward. It gives you an idea of what the other salons are practicing with their clients, and what gaps they’re leaving that you can fill up as you step into the salon business yourself. 

How do you analyze your competition?

  • Find out what the other salons in the area are doing successfully or poorly.
  • Get a rough idea of the cost of services that the competitor salons are offering. This helps you price the services for your salon.
  • Identify how many salons provide services that focus on a specific niche and do not serve a wide group of customers.
  • Find out the industry-specific challenges they are facing that you may also face while running your own salon.
  • Analyze what they can do differently to improve their situation, and implement it in your business mission plan to avoid facing such challenges yourself. 
  • Have your salon address these deficiencies in the market.

Follow these easy steps to perform your salon’s competitor analysis 

  • Visit your competitor salons’ websites.
  • Follow them on social media platforms (Facebook, Instagram, Linkedin) to get an idea of how much influence and reach they have. Check out who follows their social media page to get an idea of the target market as well.  
  • Sign up for any interactive sessions that these salons might conduct and check how other people respond to these sessions, to understand their grip and dominance on the market.  
  • Visit the other salons in the market as customers, to get an idea of their quality of services.

5. Write your salon’s business description

So now that you have your market and your competitors figured out, it’s time to work on your salon business . A beauty salon or a hair salon is fine, but what kind of salon do you want yours to be like? Setting a proper description for your business gives your salon a custom style and personality. 

Your business description should include an overview of the products and services that your salon would offer, and how your salon would stand out in the market. Setting a trademark vibe to your salon also helps with its brand image. 

To get started, you can answer the following questions :

  • Would you specialize in any particular service like nail art or bridal makeup? 
  • Would you want your services segmented for various types of clients?
  • What services would you want to offer in packages? 
  • Would you serve complimentary refreshments to the clients?
  • What theme are you going for with respect to interiors and ambiance (Japanese zen, tropical beach day, etc, etc)?
  • What would be your salon’s “it” factor that distinguishes it from the other salons in the area? 

Once you’re done with the salon’s description and personality, set a brand logo and a tagline to go with it. To get a professionally designed custom logo, you can always reach out to freelancers or companies that can do it for you, like 99designs . 

You can also use an online designing software like Canva to design your salon’s logo on your own. 

And that should complete the branding. 

Creating a business brand will prepare you to answer someone asking you “Why should I come to your Salon?” 

Remember to make your salon stand out, noticeable, and interesting.

6. Make strategies for advertising and outreach marketing 

Now you have to position your salon in the market in a way that makes people take an avid interest in “the new salon”. Your target audience will guide you towards the perfect approach to spread the word around about your salon. 

A simple guide to writing the marketing plan for your salon business :

  • Your salon should be Google-able. To show up in digital searches, make sure your business is listed in online directories.
  • Create a website or a mobile application for a better customer experience. 
  • It’s always better to spread out to all social media platforms to promote your business so that your customers (and other potential clients) can get to know you on a more personal level. Connect with your business community by following other small businesses in the area. Actively engage with your target market and share behind-the-scenes content (like before and after photos of clients’ haircuts) to build your credibility and cultivate brand awareness.
  • Partner up with other businesses that may share the same clientele as a salon would (like spa retreats) to offer coupons and vouchers, for outreach marketing.
  • Offer “first-service” discounts to your customers.
  • Keep service rates lower than the other salons in the area to attract clients. 
  • Once the rapport is established, and your clients trust you with the service quality, you can cut out the discounts. It is also very important that you optimize the discounts in a way that you don’t run into a complete loss, but we’ll get to that in a minute.
  • It is crucial to maintain the service quality to the highest degree after you start getting clients. Remember that your clients wear the marketing after they come out of your salon. This will definitely help you secure referrals from existing clients.

Marketing Tip! Want to pull off a great marketing campaign for your salon business but don’t know where to start? Do you feel like the marketing section in your business plan is incomplete? For more detailed marketing ideas for your salon, check out our blog on 7 hand-picked salon marketing ideas to boost your business .

7. Figure out your financial plan 

It’s time to play the number game. This is probably the trickiest part of writing a salon business plan because you have to be extremely careful while juggling your revenue and expenditure budget optimally. 

You don’t want to scare or throw off your customers by charging exorbitant prices for the services, but at the same time, you don’t want to crash and drown in debt yourself. Not to forget, cutting costs on cosmetics may affect the service quality. Cut hair, not costs!

Ergo, you need to have a proper financial plan for your salon. 

Writing a detailed financial plan will help you get a rough idea of how your salon would be progressing on a monthly/ yearly basis. Moreover, if you’re applying for a loan, your financial plan will determine your eligibility .

What can you do to create a solid financial plan for your salon?

Financial analysis of a salon business plan

  • It helps to bifurcate all the expenses into Fixed costs, and Variable costs. Then you can analyze your fixed costs and variable costs to set an optimal budget.

Fixed Costs: This section includes all the costs associated with your salon business that must be paid regardless of the customer traffic in your salon.

  • Rent or mortgage for the salon space.
  • Payroll for the employees you hire.
  • Equipment maintenance costs for hair spa and other services that are heavily equipment dependent.

Variable Costs : This section includes all the costs in your salon business that are directly associated with the customer traffic in your salon. 

  • Expenses of purchasing cosmetics and other salon supplies.
  • Electricity consumption by salon equipment. For eg: If you’re writing a hair salon business plan, make sure you include the electricity consumption by blow dryers, hair straighteners. 
  • Have a clear idea of how much discount you plan on putting on your services during the first few months of opening your salon, and for what duration you will be offering these discounts. Note that during the first few months of opening your salon, your sales are likely to be lower than your projections, and that’s completely okay.
  • Make a list of pros and cons for renting out space for your salon versus buying a place.
  • If you’re renting and wish to own the salon space, spot out a tentative date of when you’ll become capable of buying the place.
  • Figure out how many people you are going to hire in your staff, and how much salary you would be able to offer them. Note that you’ll have to improvise this according to how the customers respond to your salon.
  • Reach out to your local chamber of commerce to get more insights on funding and loans.
  • Tentatively figure out the time it will take you to break even, and start earning chunky profits.

Here’s an easy-to-follow template to proceed with your ‘financial plan’ section 

The following simple template can help you make the financial plan for your salon: 

i) Sales and revenue projections for the first five years :

Figure out how much you’ll charge for your services, and estimate how many services you may perform in a week. A periodic analysis of this over the next five years will give you the necessary projections. Put the details down in a spreadsheet to keep it organized. It also helps to collate all this information and analyze using bar graphs.

ii) Expenses’ budget :

Break down the expenditure of your salon for a given term, by referring to the “fixed and variable costs” list that you made. You can pick the term to be a month, a quarter, or a year long .

It’s a safer practice to stick to a month-long or a quarter-long term. You don’t want the budget analysis task to loom over you and become a burden. Not to forget, it keeps you in touch with the financial status of your salon business. 

iii) Estimated profit margins:

Accumulate the sales projections and budget report analysis to find out the profit for that term. Display the margins in pie charts or bar graphs for easy comprehension. 

iv) Liabilities:

Note all the losses that your salon business can possibly incur in the time period that you have defined as a term. For example, your blow dryers may stop functioning and need to be replaced.

Also include the factors that may stunt your business from growing. For example, you may be short on staff, or your nail salon is lacking an appointment scheduling and business management tool.

Various salon businesses that Appointy caters to

v) Cash flow statement:

Make a projected plan of cash flow-in and flow-out for your defined term, where you include cash flow from sources that are not directly related to your salon services or your salon business-related expenses. 

Include the cash flow from loans, loan payments, taxes, and personal funds that you used for your salon.

vi) Break-even analysis:

Predict the break-even point for the first five years of your business. Break-even is achieved when your salon business has covered all the expenses, and your sales surpass the expenditure costs. From that point on, your salon will start earning profits.

Other ways to create your financial plan :

Dealing with numbers can be tedious and scary, especially when you already have a lot of other things on your mind as a salon business owner. Moreover, documenting the financial projections yourself can be a pretty daunting task, especially because there’s no room for mistakes. 

Instead of making the document yourself, you can choose to consult professionals to help you write the perfect financial plan for your salon. 

  • Hire freelancers : You can collaborate with business plan consultants to make your financial plan. All you need to do is give them your salon’s budgetary estimates and inputs. 
  • Use Financial planning tools :  It asks you to enter all your financial information. They use built-in formulas to give you the most accurate financial statements that include all the charts and projections that an investor would expect to see in a business plan. 

Some important things to keep in mind :

  • Keep reviewing the target market, competitor analysis, and marketing and advertising strategies once every while, however frequently necessary.
  • Set realistic long-term goals that would be in sync with your current business performance. For example, you can think about branching out to two different locations after a few years. This will allow you to expand your local salon to an enterprise salon.

Go ahead with the pretty business plan 

An open sign

Executing a well-structured salon business should reap good-looking numbers. And the first step towards that is making a killer business plan for your salon.

It gives you the courage to place your faith in your business, and we don’t want you to doubt something you’re passionate about. Remember that you can convince the people in the market about all the great things your salon has to offer, only when you truly believe it yourself. 

So go on ahead, start creating your salon business plan today, and give your dreams a much-needed flight. Good luck :))

About Appointy We at Appointy, help business owners grow and run their businesses with our online scheduling software. This blog was a part of our ‘Manage your Business’ category, where we provide expert tips, and resources, or simply talk about the challenges that small and medium businesses face every day.  If you have any thoughts on this blog or would like to chat about your business struggles and achievements, let us know in the comments below.  We love a good talk!

25 comments

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Thanks for the information

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Very well said! All your tips and advice is so helpful.

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Thanks, Peter! 🙂

You are welcome Netra! You have a great blog, indeed!

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Thank you for the blog. Its very helful

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How To Create a Successful Salon Business Plan in 10 Steps [+ Template]

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Looking to open your own salon? Despite a looming recession, it’s a great time to do so — beauty industry statistics show the salon industry grew about 17 percent in 2022 , and the majority of Americans claim they’re not planning to cut back on beauty spending anytime soon. 

But before you start rounding up clients, you will need a thorough salon business plan to align your goals. While it may be tempting to jump in on the action as soon as possible, taking the time to plan your business properly will set you up for success in the long run. From market analyses to advertising campaigns, we’ll walk you through everything you need to know to create a winning salon business strategy.

1. Create your mission and vision statement

First things first — what are you planning to do with your new salon business? To answer this question, you’ll need to put some serious thought into your mission and vision statements. These statements articulate the purpose and goals of your salon and will guide the rest of your business plan.

Image covers differences between mission statement and vision statement.

Mission vs. vision statements

While mission and vision statements are often used interchangeably, there are differences between the two. It’s recommended that a new business have both statements before laying out its business plan.

A mission statement describes the short-term goals of the company — essentially defining the core purpose of the company and how it plans to achieve that purpose. Let’s break down this example of a salon’s mission statement:

Mission Statement

“We strive to offer our clients the highest-quality cuts at affordable prices because every woman deserves to look and feel her best.”

In this example, the business plans to offer high-quality cuts at affordable prices — the “what” and “how” —  because they believe “every woman deserves to look and feel her best” — the “why,” or core purpose.

The mission statement serves as a roadmap to achieving your business’s vision statement.  A vision statement defines your salon’s big-picture aspirations — the driving force behind your short-term actions and goals. Here’s a vision statement the example salon above might write:

Vision Statement

“We strive to expand our services nationwide as the premier choice for affordable, high-quality cuts.”

This example clearly states the business’s future goals to help define the path toward future success.

2. Know your market

Before you open your doors, you need to know who you’re opening for (your target audience) and what salons you’re up against (your competitors). Both will provide valuable information to help you determine what your clients value most .

Recognize your target audience

Your target audience is a particular group of people who may be interested in your services. A target audience profile can be broken down into four main characteristics:

  • Demographic: The main characteristics of your target market, including age, income level, gender, occupation, and education level
  • Geographic: Where your audience lives, works, or travels 
  • Psychographic: Your target audience’s lifestyle, attitude, interests, and values
  • Behavioral:  What your ideal clients want, why they want it, and how they go about achieving their needs

Let’s face the facts — everyone and their mom could use a cut and color. It’s up to you to determine who to market your business to. Are you most interested in serving the most high-end clientele, or would you rather cater to college students looking to experiment with fun, trendy styles? Will the area of town you’re located in affect how you position and price your services? 

Knowing your target audience will influence every stage of your business plan, so it’s essential you recognize what their needs and motivations are from the start.

Conduct a market analysis

Analyzing your salon’s target audience is just the first step in breaking down your target market. To truly get a comprehensive view of your business landscape, you’ll want to conduct a market analysis. 

A market analysis is a thorough assessment of your specific market within the salon industry. In addition to defining your target market, a market analysis should include:

  • Potential clients’ buying habits
  • The size of your target market
  • The state of the industry and industry projections
  • How much your potential clients are willing to pay for your services
  • Who your main competitors are
  • Your competitors’ strengths and weaknesses

A thorough market analysis is essential for reducing risks, identifying emerging trends and opportunities, and projecting revenue. It’s good practice to reevaluate your findings annually and adjust your salon’s business plan accordingly. Plus, you’ll be able to factor in actual customer feedback once your doors are open.

Take advantage of free market research tools like Google Trends, SurveyMonkey, and data from the Bureau of Labor Statistics and U.S. Census to aid in your market research strategy.

3. Identify your strengths, weaknesses, opportunities, and threats

With a better understanding of how you plan to position your salon within your target market, you’re ready to dive into your first SWOT analysis. A SWOT analysis is a compilation of internal and external factors that will impact your business.

Image defines strengths, weaknesses, opportunities, and threats (SWOT) for business.

Internal factors are resources and experience readily available to you — they’re categorized as either strengths or weaknesses. Examples of internal factors to include in your SWOT analysis are:

  • Financial resources
  • Physical resources
  • Human resources
  • Natural resources
  • Trademarks, patents, and copyrights 

Your opportunities and threats are defined by external factors, such as:

  • Market trends
  • Economic trends
  • Demographics
  • Suppliers and partners
  • Political, environmental, and economic regulations

Once you’ve completed the SWOT framework, create an innovative business strategy that will leverage your strengths and opportunities to overcome your weaknesses and threats. The SWOT analysis compels you to take a methodical and objective look at where you stand now and what you need to do to succeed.

4. Draft your salon’s executive summary

With your target market and new industry knowledge in mind, it’s time to create the most important part of your salon business plan: the executive summary. 

An executive summary is a short synopsis of your overall business plan and intentions for your new salon. Don’t let its size fool you — your executive summary is the first impression business partners and investors will have of your business. While it may be brief,  your executive summary must make an impact.

Business strategy experts agree that an executive summary should be between 5 and 10 percent of the length of your entire business plan.

What to include in your executive summary

A solid salon executive summary will provide a ton of useful information condensed into a short, sweet, and easy-to-understand package. Try your best to tie in the following when drafting your summary: 

  • Strong introduction: If you want to capture your reader’s attention immediately, you’ll want to put together an introductory paragraph that not only pulls them in, but explains who you are, what you offer, and what problems you intend to solve. Keep your intro short and concise.
  • Market view: Based on your market research analysis, briefly summarize the state of your target market, the needs of your target audience, and how you plan to position your salon amongst your competitors. 
  • Unique selling points: What will your salon bring to the table that’ll set it apart from competitors? List any unique selling points that customers and stakeholders will find valuable. 

Financial expectations and forecasts: If you plan on sharing your business plan with potential investors or stakeholders, list the projected expenses and costs it’ll take to open and operate your salon, as well as what profits you expect to generate within the first six months. Explain why your salon needs financing and why investing in your business is a smart move.

5. Write your salon’s unique business description

Congratulations on completing the research portion of your salon business plan — it’s finally time to start bringing your dream salon to life! 

First and foremost, you’ll need to figure out how to brand your salon. There are almost a million registered hair salons in the U.S., so how can you make yours stand out?

Start by drafting your salon’s business description — this should set the scene for what customers can expect when walking into your salon. Are you hoping to give off a funky, casual vibe? Or maybe a more elegant ambiance, champagne included? The tone of your business description should convey this, as well as:

  • Services you specialize in
  • Packages or perks you offer
  • Unique selling points that distinguish you from other salons

With a business description in place, you can now create a company logo and tagline to complete your new brand!

6. List your products, services, and prices

Let’s get down to the nitty-gritty — what are you offering, and how much will it cost? While you may be able to do it all, some services will pay off better than others. You may be doing yourself a disservice if you purchase all the supplies for perms when your clients want blowouts. 

To determine which services and products will benefit your business the most, ask yourself the following questions:

  • What is my target audience interested in?
  • What do I have experience in?
  • What is trending?
  • What are my competitors offering (or more importantly, what are they not)?

Once you have your service list set, you’ll need to calculate pricing . Striking a balance between making a stellar profit and attracting and retaining clients is one of the most difficult parts of running any business. Consider these factors when determining a fair price for your salon services:

  • Similar rates in your area
  • Cost and use of supplies
  • Time spent on the service
  • Your experience level

Review and reevaluate your services and pricing at least once a year to ensure you’re charging your worth. Cost of living, supply costs, and any additional training you may have undergone warrant a price change — just be sure to notify your loyal regulars before new pricing goes into effect.

7. Lay out your salon’s operation and logistics plan

While the earlier sections of your salon’s business plan defined your goals, your operation and logistics plan will detail how you plan to meet them. Your operations plan will have two sections:

  • Short-term processes: List all the tasks, employees, vendors, software, and supplies you’ll need to run your salon on a day-to-day basis.
  • Long-term milestones: Describe what you hope to achieve in the future. For new businesses, this could include the date you plan to finalize your lease, your grand opening date, or the date you hope to reach your first $100,000 in sales. 

Putting together your operations and logistics plan may make you realize just how much work goes into running a salon. Scheduling appointments, promoting your new business, managing payment processes, and tracking down no-shows on top of actually performing your services can get really overwhelming, really fast. Learn how StyleSeat can help you manage and grow your business so you can focus on what you do best.

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8. Define your marketing and outreach strategy

No matter how much effort you put into designing your salon, acquiring top-of-the-line tools, or hiring the best stylists in your area, no one’s going to schedule an appointment at your salon if they don’t know you exist. That’s where your salon marketing and advertising strategy comes into play.

While there are literally thousands of way to bring attention to your salon, these marketing and outreach tactics are tried and true:

Build a website

Whether you’re targeting tech-savvy Gen Zers or old-school baby boomers, you’ll need to ensure your business is Google-able. Building your website should be the first step in creating your online presence. For the best customer experience, make sure to include your salon’s:

  • Contact information and address 
  • Services and pricing
  • Unique selling points and mission statement
  • Customer reviews and testimonials
  • Links to social media profiles

Invest in social media marketing

Harness the power of Instagram , Facebook, TikTok, Pinterest, and more with a dedicated social media marketing and influencer strategy. Sharing behind-the-scenes content, before and after photos, and happy customer reactions can make your business appear more personable and reputable. It’s also a great way to boost engagement, interact with your client base, and cultivate brand awareness.

Studies Show

44 percent of beauty salons were focused on growing their social media profiles in 2022, and 35 percent of stylists claim their growing social following was their biggest opportunity for business growth.

Establish rapport and build customer loyalty

Convincing a potential customer to give a new hairstylist a try is a lot more difficult than it seems. One way to sweeten the deal is to offer first-service discounts or lower prices the first few months to get interested clients through the door . If they’re happy with your service, they’ll likely stay — especially if you have a loyalty program in place that offers discounts and perks for regular customers!

8. Get your finances in check

If you’ve already set your prices, take a bow — the hardest part of your salon’s financing strategy is already done. However, you’ll need to take your money a step further to get a rough idea of how your business will progress on a monthly and annual basis. This is especially important if you plan on applying for a loan or seeking investors. 

It may be best to put together your full financial statement three to six months after opening your salon. It should include your income statement, balance sheet, and cash flow statement so you and your stakeholders can get a better understanding of your salon’s financial health. 

Income statement

Your income statement lists both your revenue sources, expenses, and net income over a given period of time. This should include:

  • Cost of sales
  • Administrative expenses
  • Operating expenses
  • Non-operating income and expenses
  • Gains and losses
  • Non-recurring items

If you haven’t opened your salon yet, you can project future milestones with the same information.

Balance sheet

Your balance sheet provides a look at how much equity you have in your business. It consists of two parts:

  • Business assets: What you own, such as cash, accounts receivable, inventory, prepaid expenses, or salon supplies  
  • Liabilities: What you owe, including loans, credit card balances, payroll taxes, accounts payable, and your lease 

Once you’ve listed your salon’s business assets and liabilities, you can calculate your shareholder equity by subtracting the total value of your liabilities from your assets.

Cash flow statement 

Your cash flow statement will help you see when cash is low, when you have a surplus, and when you might need to access funding to keep your business afloat. Your cash flow statement lists revenue and expenses similar to your income statement, but it also takes into account when revenue is collected and when expenses are paid. 

Your cash flow is positive when you have more cash coming in than you have going out, and negative when the opposite is true.

Using graphs to visualize your cash flow can help you forecast when you may need to adjust operations to account for negative cash flow.

10. Plan for the future

With a well-structured business plan in hand, you’re ready to take on whatever the market has in store for you — at least for the first six months. But if you want to stay on top of industry fluctuations, the newest marketing trends, or competitor announcements, consistently review your salon business plan and company goals.

Salon business plan template

Opening a new salon requires a lot of moving parts — from remodeling your space to hiring your A-team, putting together your actual business strategy can get lost in your to-dos. Download this free helpful template to streamline your business plan and keep your goals top of mind.

The average profit margin for salons is 8.2 percent — 0.5 percent higher than the general business average of 7.7 percent. Salon owners in the U.S. can expect to make between $14,441 and $385,332, with an average salary of $74,699.

The startup cost for your salon will depend on a number of factors, including the type of salon, location, size, number of employees, and type of clientele you’re hoping to attract. Expect to spend anywhere from $10,000 to $200,000 before your grand opening.

Salons can make more money by implementing an effective marketing and advertising strategy, running promotions and contests, and reevaluating their pricing structure. Research your industry, emerging trends, and your competitors’ strategies for inspiration.

A thorough salon business plan can help you determine your short- and long-term goals, resources required, and effective strategies to drive business to your salon. Ready to hit the ground running? StyleSeat can help you manage and grow your new salon — no monthly fee required.

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How to Write a Hair Salon Business Plan: Complete Guide

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  • December 29, 2023
  • Beauty & Wellness

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Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your hair salon, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your business plan for a hair salon. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for your hair salon?

The purpose of a business plan is to secure funding through one of the following channels:

  • Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
  • Obtain private investments from investment funds, angel investors, etc.
  • Obtain a public or a private grant

How to write your hair salon’s executive summary?

This section should not exceed 1 to 2 pages and provide a brief outline of the objectives and purpose of your business, market analysis & marketing strategies, company structure & key people, financial plan, and financial ask.

What are these things? Let’s take a quick look:

  • Business overview : introduce your company and briefly describe your business model. For example, you may provide specialized hair care services only (such as a dry hair salon or highlighting, etc.) or a full-service hair salon (where you provide all types of possible services related to haircare). Also, make it clear where you store is located, whether you operate a franchise or an independent salon, and how many employees you plan to have.
  • Market analysis : provide a deep market analysis that backs your decision to open a hair salon. The market analysis will include information like who your competitors are, your strengths and weaknesses, your target audience and their haircare needs, etc.
  • People : mention who are the managers and why you have selected them along with their relevant industry experience. Also, speak about your staff and their reporting lines
  • Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits?
  • Financial ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

write a business plan on beauty making

2. Business Overview

This is the section of your business plan where you will describe your hair salon business in detail. Try to answer the following questions concisely:

  • Why do you want to open a hair salon?
  • How big will be the facility and how many appointments will you serve daily (approximately)?
  • Will you have standard operating hours or extended business hours?
  • Where is the location and why did you select that location?
  • Will you provide only services, or will you sell products too?

Try to cover as many questions as possible to create a convincing business overview to keep your potential investors and lenders hooked.

Let’s look at different subsections that you must include:

a) History of the Project

If you are yet to open your first hair salon business, you may not have a business history to share. However, you can share your training and past industry experiences. You can even demonstrate your passion and interest for the hair styling or beauty industry.

This is also where you should explain why you decided to create this business today. Did you find a gap in the market? Is there a lot of demand for hair styling services but few salons to accommodate customers?

Or are you trying to open a new format of hair salon, inspired from successful hair salons in other cities, effectively differentiating yourself from your competitors in your area?

b) Hair Salon Business Model

This section must include the following information:

  • Are you building your hair salon from the ground up or are you purchasing an existing one?
  • Is this a franchise or an independent hair salon?
  • Will you allow advanced bookings through channels like a website or a mobile app, or will you allow walk-in customers or both?
  • Will you focus only on services, or will you sell hair care products, too? 
  • If you want to sell products, too, how do you intend to upsell them?
  • Will you offer home visits, and if so, what will be the area of operation for that?
  • Do you intend to expand to other services like manicure & pedicure, facials, body hair removal, etc.?

Provide a thorough description of your business model so that the potential lenders and investors can make financial assessments and projections.

write a business plan on beauty making

c) Target Audience

Give an overview of your target audience. For example, answer the following questions:

  • Will it be a unisex hair salon or a gender-specific hair salon?
  • If gender specific, what is the gender distribution of location?
  • What is the average family income of the target audience?
  • How frequently do they visit hair salons?
  • Is there a specific age group that you are targeting?

d) Hair Salon Products & Services

Your hair salon will primarily be a service-oriented business. However, that doesn’t mean you will not (or you cannot) sell related products. A simple table like the one below will do the trick:

write a business plan on beauty making

e) Hair Salon Pricing Strategy

Provide a pricing chart for both individual and bundled services. If your services are more expensive than or cheaper than your competitors, explain the logic and rationale behind that.

For example, you may be using 100% organic and chemical-free products that are costlier than cosmetic products. This can explain the extra price. Alternatively (or maybe additionally), you may have popular hair stylists offering those services, making them more expensive.

Also, include a pricing chart for the products that you want to sell. If you are selling bundled products at discounted prices, include them, too. 

It’s a great idea to include the estimated profit margins for your products and services as well. Indeed, a pricing chart for all major products you are offering can help the investors or lenders to tie your pricing strategy with your financial projections.

f) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

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Hair Salon Financial Model

Download an expert-built 5-year Excel financial model for your business plan

3. Hair Salon Market Analysis

It is vital that you demonstrate a deep market knowledge to your potential investors and lenders. If you are not aware of the market where you want to run your business, you will invariably fail.

For example, if you are offering expensive haircare procedures in a low-income or middle-class area, you will run into losses. Similarly, if you are not abreast with the latest hairstyles and trends, you will find it difficult to attract customers.

a) Market Trends

If you are offering haircuts and hair makeup, you must be aware of the latest trends. Fashion is always a time-bound thing, and so is hairstyle.

For instance, if you are a hairstylist, latest hair trends (2022) may include styles like: sleek-front-loose-back, soft brown & gold, bangs, voluminous blowout, beach waves, etc.

Similarly, if organic hair care products are in demand and you try to sell chemically heavy cosmetic products, people are not going to buy them.

b) Competitor Analysis

The objective of the competitive analysis of your business plan should establish that starting a hair salon in your area makes sense. For example, there might be few competitors despite a lot of demand. Or, for example, existing competitors might not be adapted to the latest customer trends, effectively losing business to newcomers.

In your competitive analysis, try to include the following information:

  • Number of competing hair salons or full-service beauty salons in your area
  • Their target audience
  • The list of products and services they are offering
  • The number of stations each salon has
  • Their marketing strategy
  • Their strengths and weaknesses
  • Their reputation as a brand

write a business plan on beauty making

Hair Salon SWOT Analysis

Along with the competitive analysis, you must also perform a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Here you must provide the following information:

  • Strengths : Examples – you may have years of industry experience, or you may be a celebrity hairstylist, or you may be offering unique services that no other competing hair salon is offering
  • Weaknesses : Examples – you may not have enough experience with Millennials, or you may not have enough funds for sufficient inventory, etc.
  • Opportunities : Examples – unlike your competitors, you may be offering a full-service hair salon experience complete with absolute mastery over recent hair trends
  • Threats : Examples – the emergence of new hair salons that can possibly take a slice of your potential customer base or existing hair salons reducing their prices to counter your presence

Both competitive analysis and SWOT analysis can help you to come up with innovative marketing strategies that you can use to gain new customers and even chip off your competitor’s customer base.

write a business plan on beauty making

c) Customers

This is the segment where you provide a detailed analysis of your target audience. The analysis must include things like:

  • Demographic distribution of your target customers (you can find data from census.gov )
  • Average monthly family income (this will give you an idea of the spending capacity)
  • The frequency of hair salon visits (this will give you a fair idea of the number of customers you can expect in a month)
  • Current hair trends in the location you want to operate in and the factors that influence those trends
  • What channels do the customers use to share their hairstyles and/or hair salon experience?
  • Things that your target audience like and dislike about the existing hair salons (this will tell you what you must do and things you can do to improve their experience)
  • What is the average amount they spend per visit?
  • Do they engage in haircare activities at home? (This will tell you whether you can sell haircare products or not)
  • Do they like to use coupons and gift cards? (If yes, you may open a separate revenue stream by offering such products)

You can add more questions if you need to complete your customer or target audience study. The best way to get the answers is to conduct direct surveys and interact with your potential customer base. However, you will also find some data from competitive analysis.

A complete understanding of your target audience can help you develop sales and marketing strategies that can beat your competitors and give you an edge.

write a business plan on beauty making

4. Marketing Strategy

This is the section of your business plan where you should outline your customer acquisition strategy. Try to answer the following questions:

What are your Unique Selling Points (USPs)?

  • What marketing channels will you use?
  • How do you intend to track the success of your marketing strategy?
  • What is your CAC or customer acquisition cost?
  • What is your marketing budget?
  • What introductory promos and offers do you intend to provide for attracting new customers?
  • Will you offer gift cards to open an upfront revenue stream?
  • Will you sell products? If yes, how do you intend to upsell them for revenue maximization?

Let’s expand a bit on a few questions below:

What marketing channels do Hair Salons use?

A few marketing channels that hair salons typically use are:

  • Google My Business listing
  • PPC ads and social media ads
  • Social media promotions and user engagement on platforms like YouTube, Facebook, Instagram, Pinterest, Twitter, TikTok, etc.
  • Email marketing
  • Print ads, flyers, hoardings & billboards, etc.

You need to use all marketing channels. You can focus on a few (2 to 3 is more than enough). However, make sure that you include social media marketing as one of the options because it can help you to connect and continuously interact with your customers. In addition to that, social media can help you to go viral.

Also, do not forget to provide a fair and nearly accurate estimate of your marketing budget. Failure to display a well-planned and adequate cash flow for advertising and marketing can lead to investors losing confidence.

write a business plan on beauty making

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

  • We are a full-service hair salon offering an entire spectrum of haircare services unlike the competitors who offer only limited services like cuts, colors, shampoo, and conditioning
  • We offer all trending hairstyles including social media trends and Hollywood trends, which is something that the competitors do not offer
  • We use only 100% organic and natural haircare products to prevent hair damage
  • We will use our proprietary range of hair care products that will not be available with any other competing hair salon (you must have a range of approved and established products and your target audience must be aware of those products)

5. Management & People

You must address 2 things here:

  • The management team and their experience/track record
  • The organizational structure: what are the different teams and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and technical knowledge of salon managers that you intend to hire to oversee your hair salon business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeed in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the hair salon services you are proposing. If they have specialized training (such as hair reconstruction), add that information.

Organization Structure

Even if you haven’t already hired salon managers, hairstylists/cosmetologists, salon/shampoo assistants, receptionists, etc., it is important that you provide a flowchart of the organizational structure defining the hierarchy of reporting.

Such a flowchart will demonstrate your management skills and plans to the interested investors or lenders. If necessary, they may even suggest changes to improve the management structure.

write a business plan on beauty making

6. Hair Salon Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your hair salon is an attractive investment.

There should be 3 sections to your financial plan section:

  • Your historical financials (only if you already operate the business and have financial accounts to show)
  • The startup costs of your project (if you plan to open a new salon, renovate your salon, etc.)
  • The 5-year financial projections

Historical Financials (if any)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

Hair Salon Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a hair salon, startup costs are all the expenses you incur before you start to receive customers and make money.

Startup costs vary based on a number of factors such as the location and size of your salon, the quality of the equipment, design and furniture, whether you rent or buy the space, etc.

On average, hair salons cost anywhere from $63,500 to $203,000 to start depending on whether you plan to lease the commercial space or buy it. Indeed, if the latter, you would have to take a loan and make a substantial deposit upfront instead.

Hair Salon 5-Year Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model as part of your business plan for your hair salon.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

  • How much revenue do you expect to generate over the next 5 years?
  • When do you expect to break even?
  • How much cash will you burn until you get there?
  • What’s the impact of a change in pricing (say 15%) on your margins?
  • What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

  • The number of customers over time ;
  • Your expected revenue ;
  • Operating costs to run the business ;
  • Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

When it comes to the costs, consider both startup and operating costs. For more information on how much it costs to start and run a hair salon in the US, read our complete guide here .

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7. Funding Ask

This is the last section of the business plan of your hair salon. Now that we have explained what your hair salon is about, what’s your strategy, where you go and how you get there, this section must answer the following questions:

  • How much funding do you need?
  • What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
  • How long will this funding last?
  • Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

  • What percentage of the total funding the loan represents?
  • What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

  • What percentage ownership are you selling as part of this funding round?
  • What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment to buy the real estate and do the renovations and design of the salon? Or will it cover mostly the cost of the salaries the first few months?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our hair salon financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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How to Write a Successful Beauty Salon Business Plan

By team zeller.

How to Write a Successful Beauty Salon Business Plan

Discover the critical components to include in your salon business plan.

A business plan is far more than a simple document. Think of it as your pathway to business success. A salon business plan will help you outline and achieve your goals — whether that’s to start a salon from scratch, grow your business to new heights, or even expand into more specialised, complimentary markets. It’s a resource you can rely on every time you need to make a strategic business decision.  

Writing a business plan doesn’t have to be difficult. You don’t need an accounting degree or an MBA to create a useful plan for your salon. Instead, this guide will show you how to write one from scratch without the complexity.

Why you need a business plan for your salon

There are lots of good reasons why you should write a business plan for your hair or nail salon.

No matter what type of business you run, it pays to have a solid understanding of your industry, your market, and how your business fits into the competitive landscape. Preparing a business plan forces you to meticulously and objectively assess the strengths and weaknesses of your business, and can help keep you on the right path to making smarter business decisions. 

A business plan also provides your business with direction and structure to grow. As an entrepreneur, chances are you won’t be short of new ideas and opportunities. Sometimes the challenge lies in knowing which ones you should pursue. Some ideas are distractions. Others are money making growth opportunities. Having an up-to-date business plan , which includes your overarching business goals, will make it easier to identify which ideas are worth exploring. 

Starting a salon business plan

The key is to remember that your business plan is a living document. It will grow and evolve with your business. For that reason, It pays to start broad — documenting the bigger picture behind your business — before diving into the specific strategies which may change over time. 

Here are some things to consider.

Understanding what you hope to achieve with your business plan will help guide the content within it. Are you looking to create a blueprint for expanding your salon business in another location? Perhaps your aim is to attract investors, or win over a business partner? 

Whatever the objective, understanding the purpose of the document will help guide the contents.

Is your business idea financially feasible? It is important to be realistic about the likelihood of business success. This requires research. If you’ve run a business before, then you’ve likely already crunched the numbers. If you’re new to business, it pays to ask for professional advice. The Hair and Beauty Australian Industry Association, a not-for-profit body, can be a great source of operational, industrial and compliance advice for salon owners.

Once you’ve established that your business idea has legs, you’re almost ready to start writing your business plan. Before putting pen to paper, it’s important to do two things

  • Set some tangible goals for your business Whether your goal is to see a certain number of clients every month, or to upsell a certain volume of products, it pays to identify these goals early, and incorporate these into your business plan. This will give you the metrics you need to track progress over time.
  • Recognise the threats and opportunities for success Every business comes with a level of risk but being aware of these can help to minimise their impact on your business, or better still, turn threats into opportunities. Acknowledging potential challenges early means you have a better change of circumnavigating them or reducing their impact on your business as they arise. 

Essential components of your business plan

There are plenty of templates that you can use to prepare your business plan. Here are some key elements that you should consider when preparing a business plan for the opening of your salon. 

Executive summary

Though the executive summary sits at the beginning of your business plan, it is generally the last thing to be written as it summarises the key components of your business plan. 

Remember, your business plan may come in handy for attracting business partners, securing investment or getting business finance approval. Use the executive summary as an opportunity to provide a compelling snapshot of your business — make it engaging and highlight how you plan to make it a success. 

Business Overview

This section should provide key information about your business. What kind of salon are you running — and is it full-service, or niche? What makes it different from other salons in the area? Use this section to highlight your point of difference, and how your experience and expertise will contribute to the business’s success. 

You should also use this section of the business plan to describe where you plan to run your salon, the size and scale of the premises, and any local amenities (such as parking or access to public transport) that would make your salon appealing to your target audience. This information will come in handy when it comes time to consider marketing your business, as you’ll need to know how much foot traffic your salon will be exposed to. 

Finally, in this section you should also introduce your start-up plan and budget. This should identify any start-up capital you require to secure your premises and set up the salon, and how you plan to fund this set up. 

Products and Services

Whether you’re opening a full-service day spa, or delivering a specialised niche service like nail art, this section of your business plan should outline the products and services you plan to offer your customers. 

Consider things like customer demand for certain items, and whether your competitors provide a similar service. What are the costs associated with delivering these services? Are your prices reasonable, and within customer expectations?

If retail sales are part of your business strategy, consider how you will drive demand and sales to support your business goals. Will there be an incentive-based scheme to encourage staff to sell more products? Will product sales form part of staff KPIs? How will you train staff to sell without impacting the salon experience? 

Customer and Marketing Strategy

Your business plan should also outline your marketing strategy, which hinges on your customer.

Outline your customer persona and what makes them seek out your salon products and services. Are they looking for a high-end, luxury experience, or are they after affordable, no-frills solutions? Perhaps they’re after express services that can be fit into a lunch break? 

Once you know your target market and what will attract them to your salon, you’re in a strong position to market your business. Your plan should identify the best way to attract customers to the salon. 

Here are some strategies that you might consider:

  • a referral program which rewards customers or other businesses who recommend your salon
  • paid advertising in local press
  • street signage
  • promotional discounts for new customers
  • content marketing via social media and other channels
  • set up your Google My Business listing

Make sure to outline a realistic budget for how much you are prepared to spend to attract new clients to your salon.

Operations and Personnel 

How many stylists will it take to achieve your business vision? Will they be staff members, or contractors? Apprentices or seniors? Your personnel plan should outline your staffing requirements (including things like salaries) and trigger points for increasing your staffing numbers as your business grows. 

Your business plan should also outline what equipment you’ll need to run your salon efficiently and profitably. This could include hairstyling chairs and equipment like scissors, as well as business and financial tools , such as booking software and an EFTPOS machine . 

Financial Plan

Preparing a financial plan can be one of the more daunting elements of writing a business plan, but it is also one of the most critical. If your goal is to create a profitable, sustainable long-term business, then having a clear plan for how you will generate income is essential. 

As part of your financial plan, you should identify and explain any assumptions about your financials, including any expectations for estimated sales — considering both the cost of goods and expected revenue growth over time. You should also outline your plan for breaking even, managing cash flow and projected profit and loss for the short-to-medium term of your salon. 

Getting started with your business plan

When it comes to opening your own beauty salon, it pays to prepare for success with careful and considered planning. Seek advice from experts and peers in the beauty industry on what to include, and how to structure your business to safeguard your profitability and encourage growth over time. Most importantly, don’t worry if the first draft isn’t perfect. 

A business plan is a critical first step in consolidating your ideas, and laying out a blueprint for growing your salon. Yet business plans are designed to be living, breathing documents that should evolve over time as your business grows, new consumer trends emerge, and industry shifts occur. Committing a business plan to paper is just the first step.

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How To Write a Beauty Business Plan + Template

Business-plan

Creating a business plan is essential for any business, but it can be especially helpful for beauty businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every beauty business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Beauty Business Plan?

A beauty business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Beauty Business Plan?

A beauty business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Beauty Business Plan

The following are the key components of a successful beauty business plan:

Executive Summary

The executive summary of a beauty business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  • Start with a one-line description of your beauty company
  • Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your beauty business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your beauty firm, mention this.

You will also include information about your chosen beauty business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a beauty business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

  • What part of the beauty industry are you targeting?
  • How big is the market?
  • What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of a beauty business may include:

  • Women aged 16-35 who are looking for affordable beauty products
  • Women who want to apply their own makeup in a professional way
  • Busy women who want to save time by having their beauty routine done for them
  • Professional men who want their hair care and grooming done for them

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or beauty services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your beauty business may have:

  • Unique selling proposition (USP)
  • Affordable prices
  • Wide range of services offered
  • Quality products and services
  • Experienced and professional team

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

  • Product/Service : Detail your product/service offerings here. Document their features and benefits.
  • Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
  • Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
  • Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your beauty business via a PR campaign.

Operations Plan

This part of your beauty business plan should include the following information:

  • How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
  • What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a beauty business include reaching $X in sales. Other examples include adding new products or services, expanding to new locations, or hiring new personnel.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific beauty industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

  • Revenue : how much revenue you generate.
  • Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
  • Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Beauty Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

  • Assets : All of the things you own (including cash).
  • Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
  • Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Beauty Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

  • Cash Flow From Operations
  • Cash Flow From Investments
  • Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup beauty business.

Sample Cash Flow Statement for a Startup Beauty Business

You will also want to include an appendix section which will include:

  • Your complete financial projections
  • A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
  • Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your beauty company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

The goal of your business plan is to articulate a clear and concise message that will serve as your roadmap to success. A well-written business plan will also help you secure funding from investors, lenders, or other sources.   

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How to Create an Effective Beauty Salon Business Plan

Jovana Smoljanovic Tucakov

  • July 5, 2023
  • For Salon Owners

an illustration of beauty salon employees working with clients

The beauty salon business plan is like your secret weapon for effective management and planning. It’s the ultimate tool that helps you and your team develop smart strategies and stay on top of things.

Many in the industry think that all you need is sheer motivation to succeed. Well, while having a strong passion for your salon is crucial, motivation alone won’t cut it. There are other super important factors you should consider if you want your business to thrive. And that’s where a killer salon business plan comes in handy.

This guide is going to walk you through the process of writing a document that perfectly fits your operational needs. You’ll also dive into all the different elements that make up a business plan and see why they’re so important for your salon.

But first, let’s see why having a thorough business plan is an absolute must.

Why You Need a Business Plan

A business plan is like the ultimate snapshot of your salon’s identity. It gives you the data on everything, from your mission statement and business model to where you fit in the market and who your target customers are. And let’s not forget about the financial aspect and your goals – it’s all in there.

A business plan is not just a boring piece of paper. It’s like a detailed map that’ll guide you through the wild world of the salon industry.

One of the best things about having a business plan is that it helps you keep tabs on how you’re doing. It’s like having a built-in performance tracker that lets you make those necessary tweaks with precision. What’s more, it’s not just for your own benefit. Potential investors find it useful too. They use your plan to figure out what you’re all about and if you’re worth investing in.

Keep in mind that this plan isn’t set in stone. It’s a living, breathing document that grows with your salon . It adjusts to the ever-changing market and keeps up with your goals, so you can make informed decisions along the way.

The Different Types of Beauty Salons

If you are starting a new salon, you should know where to position your business within the industry. There are many existing salon business types according to their beauty products and service offerings:

  • Full-Service Salons : These are the jack-of-all-trades in the beauty industry. Full-service salons offer a wide range of services, including haircuts, styling, coloring, manicures, pedicures, facials, waxing, and more. They aim to provide a one-stop shop for all your beauty needs.
  • Hair Salons : As the name suggests, these salons specialize in all things hair-related. From trendy haircuts and styling to hair coloring, highlights, extensions, and treatments, hair salons are the go-to places for fabulous locks. Some hair salons may also offer additional services like blowouts and scalp treatments.
  • Nail Salons : If you’re all about nail art, manicures, and pedicures, nail salons are your haven. These salons focus on providing expert nail care, including nail shaping, polishing, gel manicures, acrylic nails, and intricate nail designs.
  • Spa Salons : Spa salons take relaxation and rejuvenation to a whole new level. These upscale establishments offer a range of spa services, such as massages, body treatments, facials, aromatherapy, sauna sessions, and more. They create a serene ambiance where you can unwind and indulge in self-care.
  • Barbershops : Barbershops cater specifically to men’s grooming needs. From classic haircuts and beard trims to hot towel shaves and grooming products, barbershops provide a masculine and welcoming environment for gentlemen to spruce up their style.
  • Specialty Salons : Within the beauty industry, you’ll find specialty salons that focus on specific services. For example, there are eyelash extension salons, eyebrow shaping and threading salons, tanning salons, and even salons specializing in specific ethnic hair types. These salons hone their expertise in a particular area, delivering exceptional results.

When it comes to pricing, you need to decide which segment you want to be part of:

Budget segment : This is all about catering to price-conscious customers who are looking for affordable options. You keep your prices reasonable and offer quality services without breaking the bank.

Mid-Range segment : This is where you strike a balance between affordability and a touch of upscale charm. Your prices are a bit higher than the budget segment, but you offer more luxurious experiences and better-quality products. You cater to customers who want a little extra pampering without going overboard on the budget.

Luxury segment : If you’re all about the high-end, luxurious experience, this is your domain. You offer premium services and top-notch products and create an atmosphere of opulence and indulgence. Your prices are on the higher side, but you attract clients who are willing to splurge for a truly extraordinary beauty experience.

Remember, each segment has its own customer base and positioning. It’s important to understand your target market and what they value. Consider factors like location, competition, and the demographics of your area when making your decision.

How to Write a Winning Beauty Salon Business Plan

illustration of a business plan

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Balance is crucial when writing a business plan. You don’t want it to be super long, but you also need to make sure it covers all the important points in an easy-to-understand way.

Beauty salon plans are a bit unique compared to plans in other industries because there are a whole lot of services and products involved.

Every beauty salon business plan should include:

Executive summary

  • Business description
  • Salon history & brand story

Market analysis

Marketing plan, management team and internal structure, detailed financial plan.

Surprisingly, the element that appears first in your business plan is the one you should write last. This section summarizes the document’s content on a single page.

Private investors might judge your business model solely based on the executive summary, so it needs to be right on point. Share all the highlights and the compelling facts and show the investors why your business model is a winner and why they absolutely need to get on board.

Beauty salon business description

This section is all about giving your salon business a proper introduction. Share what motivates you, the problems you’re here to solve, and how you plan to tackle them head-on.

Explain your geographic area and its advantages. Tell them about the advantages of your location. Is it a prime spot with lots of foot traffic? Does it have a funky vibe that’ll attract the cool kids? Dive into the nitty-gritty of the place itself – its layout, equipment, and all the possibilities it holds.

Detail your schedule plans and the type of salon services you will provide. Are you going to be open seven days a week, ready to glam people up whenever they need it? Will you offer special services like late-night appointments or early-morning pick-me-ups?

Likewise, clarify your legal structure and explain why you became a sole proprietor or opted for a Limited Liability Company (LLC).

Salon history and brand story

For an existing salon business, the business plan should cover its history and explain its foundations.

So, let’s start with the history of your salon. How did it all begin? Was it a wild idea that sparked one day? Did it start from humble beginnings and grow into something amazing? Share the journey and let them know the story behind your salon’s success.

Your brand story is when you make everything personal. Talk about why you started this salon adventure. What inspired you? What are the values and vibes that make your brand unique? Connect with them on an emotional level and let them feel the passion that drives your salon.

This is where you dive deep into the beauty industry and figure out your niche or segment . Now’s the perfect time to describe your target customers. Who are they? What makes them tick? Get inside their heads and understand what they’re looking for in a salon. This is how you’ll know exactly how to cater to their beauty needs.

Also, it’s time to perform proper competitor analysis . Check out what others in the beauty game are doing. What services are they offering? How are they attracting customers? This way, you’ll know what makes you stand out and how to outshine the rest.

Armed with all this knowledge, you’ll show the world that you’ve got a solid grip on your positioning. You know exactly where you fit in the beauty universe and how to make your mark.

And then you’ll use all this research to craft your Unique Selling Propositions . It’s like your secret weapon, your special charm that makes customers go, “Wow, this is the perfect salon for me!”. You’ll highlight what makes you unique and what makes you the best choice out there.

The marketing plan presents your unique selling propositions and defines clear promotion strategies. What makes you unique? What makes you the go-to spot for all things beauty? You need to highlight your USPs.

Also, you need to figure out which channels you’re going to use to reach your target audience. Social media? Email campaigns? Maybe even go old-school and rock some print ads. It’s all about finding the best ways to connect with your clients .

Additionally, introduce your marketing expenses budget and establish performance tracking criteria. Set a budget and keep track of your progress to make sure you’re on the right track.

A clear management hierarchy is essential for your business plan and model. Everyone on your team should know their roles and who they answer to.

Go beyond just talking about the number of employees you have or need. Instead, explain your team’s strengths and accomplishments to justify your management structure.

You’ll need a solid financial plan to raise funding from public institutions or investors. This plan helps you make accurate financial projections, whether you’re using your own funds or dealing with loan payments.

The financial plan includes the income statement , the balance , and the cash flow statement . You can add complementary documents like the break-even point and the break-even analysis.

The Essential Documents You Need To Open a New Beauty Salon

Beauty salons must ensure compliance with local laws and industry-specific regulations. Although these regulations and licenses can be a bit confusing, they’re super important for your salon’s success.

The Ultimate Checklist You Need to Open Your Salon

Get Trafft’s FREE & PRINTABLE step-by-step opening a beauty salon checklist every salon owner needs.

Bonus: Discover 5 essential steps to building a successful beauty salon

write a business plan on beauty making

Here are the seven documents you need to have if you want to open your beauty salon :

  • The Salon Business Plan: this is the first document that guides your whole operation. It’s the key to building a sturdy, scalable, and sustainable beauty salon. Plus, it helps you secure that funding from lenders and angel investors.
  • The Cosmetology License: it varies depending on where you’re located and what services you offer. You’ll need different licenses for spa services, nail art and care, and hair salon services. Check with the local Licensing Division to make sure you got all the right permits.
  • The Tax ID: this is the number you get from the Internal Revenue Service (IRS). With it, you report your income and all the expenses for tax purposes.
  • The Business License: this is a must-have for all local businesses. It enables you to offer hair and skin care services as a professional activity.
  • The Employer Identification Number (EIN): It allows you to register your salon business, hire employees, and file taxes. You can apply for it through the IRS platform.
  • The Certificate of Occupancy: It guarantees that your location is safe and up to code. It confirms that it complies with all the necessary building and security regulations.
  • The Retail Seller Permit: This is for all beauty entrepreneurs who want to sell some cosmetic products alongside their services.

These are the crucial documents you need before you can open your salon doors to the public. However, there are some other permits, licenses, and qualifications that you need to have as a beauty salon owner. Just remember that requirements may vary depending on where you’re located and the specific beauty services you offer. So, don’t forget to check in with your local community authorities for any extra licenses and regulations.

The Significance of Thorough Market Research

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Market research is the first big step you need to take in any industry. It’s like putting on your detective hat and digging deep to understand what’s going on out there. It gives you a comprehensive market perspective and helps you understand its latest trends and needs.

Check out the local community and see what they’re into. What’s the supply and demand looking like? Get the full picture!

Once you’ve got a handle on things, it’s time to make some assumptions to position yourself just right in that market. Maybe the beauty trends are pointing towards a need for a full-service beauty salon, or perhaps there’s a niche waiting to be filled, like an artsy nail salon.

Moreover, you need to take a careful look at your competitors, their offerings, and pricing practices. If you notice that everyone’s focused on hair salon services, here’s your chance to stand out. You can emphasize skincare or nail services and give your customers something they can’t find anywhere else.

This market research is about getting to know your target market inside and out . Get to know your clients, understand their pain points, and discover what they’re willing to spend. This way, you can craft a winning marketing strategy that’ll grab their attention and keep them coming back for more.

And here’s a bonus tip : start looking into potential partnerships. It’s all about building connections and working with suppliers and other professionals. By doing so, you’ll make those connections early on, pave the way for smooth negotiations, and even score some sweet deals. Plus, it’ll expand your network and open up exciting opportunities.

How Much Is It Going to Cost to Open a Beauty Salon?

When starting a beauty salon business, you should know the expenses involved in the process . Some of them might vary according to your activity, services, opening hours, and team. Still, most are predictable or even stagnant.

We’re going to break down those expenses, so you know exactly what you’re getting into:

  • Rent: the rent rate can suffer some changes with time, but it is usually a regular cost. Its value can vary depending on where you’re located and the size and condition of the place. Do a quick online search to get an idea of the average amount you’ll be paying each month.
  • Licenses and permits: most licenses and essential documents come with a cost. You should expect to spend at least $1000 – legality and safety are not cheap at all.
  • Insurance: You have to protect your salon, your equipment, your services, and your workers. That means you’ll need different kinds of insurance coverage. The fees can add up to a few hundred dollars a month.
  • Equipment: to start working, you must own proper equipment like chairs, mirrors, and trade-specific tools that make your salon shine.
  • Inventory: whether you’re planning to sell cosmetic products or not, you’ll need some inventory. A hair salon needs shampoo, conditioner, and hair colors, while a spa craves massage oils, cleansers, and masks. That initial inventory can be a bit pricey, totaling a few thousand dollars.
  • Marketing: set aside a marketing budget to spread the word about your fabulous salon and fuel growth.

Picking the Best Location

An excellent location is like the holy grail of salon success.

First things first, when it comes to picking the perfect location, you should think about your target market. You want a place that catches their eye. Think about convenience – easy access by foot, car, or public transportation is key. And having nearby parking is a big bonus. You don’t want your clients circling the block for hours, right?

Some popular spots for beauty salons are near shopping centers or bustling commerce streets. You want to be where the action is, where people are already out and about, ready for some splurging. Essentially, it’s all about that foot traffic.

And let’s not forget about branding. Your location should match the vibe and identity of your salon. Think about the local scene, the seasonality, and what people in the area like. Be in sync with their tastes and preferences.

Buying or renting

Now, the big question: to buy or to rent?

Buying gives you the freedom to renovate and make the place truly yours. But it’s a bigger investment, so you got to commit for the long haul. On the flip side, renting gives you more flexibility to move around if things change. Plus, some rentals come with equipment and licenses already set up. Just be ready to meet the landlord’s requirements and you’re good to go.

Hiring the Right Team

beauty salon employees showing their skills

Image by macrovector on Freepik

Let’s talk about building your dream team for your beauty salon. Make sure you’ve got the right people with the right skills to create that magical salon experience for your clients.

First things first, set some hiring practices and standards. You need people who complement each other, like the perfect puzzle pieces. They should have top-notch customer service skills and be able to create a friendly and welcoming atmosphere in the salon.

You also want each team member to be passionate about the beauty industry and committed to making your salon a roaring success.

Here are some common positions you might hire for:

  • The Receptionist : This superstar is the first face your clients see when they walk through the door. They handle appointments, greet everyone with a warm smile, and make sure the payment process goes smoothly.
  • The Esthetician : These skin-savvy pros specialize in skincare, offering fabulous facials, relaxing massages, and waxing services.
  • The Hairstylist : These hair wizards work their magic with scissors, treatments, styling, and coloring. They’re the ones who can turn a dull haircut into a head-turning masterpiece.
  • The Nail Technician : These nail artists are all about pampering fingers and toes. They’ll give manicures and pedicures and can create some jaw-dropping nail art.

Develop an Effective Marketing Strategy

Business plans include a detailed marketing strategy that helps promote a beauty salon business and its services efficiently.

One of the best approaches to marketing is to combine different methods in order to reach your specific target market. Embracing a broad range of publicity efforts increases your chances of success. Also, it strengthens relationships with existing clients and attracts new ones.

So here are four fantastic marketing approaches to get your salon the attention it deserves:

  • Print ed advertising has been popular for centuries and still gets excellent results. You can publish ads in local newspapers, magazines, or outdoor billboards. Flyers and business cards placed in strategic locations also help spread awareness of your brand.
  • Invest in online tactics by consistently using social media and creating a website for your beauty salon. This strategy broadens your audience. It improves customer service through online bookings and payment processing. Besides, it’s easily trackable and flexible to your marketing goals and needs.
  • Another efficient technique is establishing customer engagement strategies, like exclusive business events. Doing so helps you retain clients and build an active community.
  • Finally, you can trust word-of-mouth to elevate your beauty salon business. Ensure an impeccable customer experience every time and you’ll have clients lining up at your door.

Set a Budget for Time-Saving Tools and Software

Let’s talk about optimizing your salon’s operations and saving some precious time and energy.

Running a beauty salon can get pretty hectic, so why not invest in some handy tools and software to make your life easier? It’s a great idea to set aside a budget specifically for time-saving tools and beauty salon scheduling software . Trust us, it’s a smart move that’ll pay off in the long run.

And when it comes to finding the perfect software for your beauty salon, let us introduce you to a real gem called Trafft .

Trafft is like your secret weapon for efficient management. It’s a comprehensive software solution that’s got your back when it comes to handling bookings, customers, employees, and finances. No more juggling spreadsheets or dealing with clunky systems – with Trafft, you can streamline your operations and keep everything in check with just a few clicks.

trafft beauty salon booking and management solution

You can apply Trafft to various aspects of your salon operations:

  • Customer service: Trafft allows you to add a booking feature to your website that automatically updates your schedule. You no longer have to struggle with complicated scheduling processes, overbooking, or double-booking issues. Plus, it even handles online payments, sends out appointment reminders, and helps you manage your client base.
  • Performance tracking: Trafft helps you keep an eye on those important Key Performance Indicators (KPIs). You’ll have reliable insights into how your salon is doing in different departments. It’s like having your own personal performance tracker, guiding you to make smart business decisions and optimize your strategies.
  • Marketing: Trafft provides exceptional booking experience, smooths client communications, and helps you build captivating loyalty programs.

So, if you’re ready to level up your beauty salon business, you better give Trafft a try .

How to Calculate Your Return On Investment (ROI)

Along with the Executive Summary, the Financial Plan is the most vital part of your beauty salon business plan. Thus, take extra care and attention when composing it.

One key metric to keep your eye on is the Return On Investment (ROI). This metric helps you assess your business performance. It shows you how profitable your beauty salon was during a given period. You can use it to evaluate the efficiency of your current policies and strategies and make adjustments if needed.

To calculate it, you subtract your initial investment from its final value and then divide that number by the cost of the investment. Finally, multiply that amount by 100 to get a percentage.

FAQ on Creating a Beauty Salon Business Plan

What’s the scoop on beauty salon business plans.

Creating a salon business plan is like painting a picture of your future salon. It’s about deciding on your style, your vibe, and your unique offering. It’s like choosing the right color palette, deciding on the decor, and creating a welcoming environment.

A business plan helps you make informed decisions, avoid costly mistakes, and increase your chances of success.

How do I dive into making a business plan?

Before diving in, take a step back. Think about your vision, your target audience, your services. Start your business plan with an executive summary – it’s like the homepage of a website. Keep it short, precise, and inviting. Then delve into the nitty-gritty: company description, market analysis, organization and management structure, and so on.

Where do I get market info for my plan?

Market research is like user research for web design. It’s about understanding your customer – their needs, desires, and behaviors.

You can gather information from industry reports, beauty magazines, social media trends, competitor analysis, and customer surveys. There are also online resources like Statista and IBISWorld .

What’s the deal with financial projections?

Your financial projections are like the back end of a website – crucial but unseen by customers. They include forecasts of your sales, expenses, and profitability.

You’ll need to understand basic accounting or hire someone who does. And remember, be realistic with your numbers.

How should I tackle competition in my plan?

Recognizing competition is essential, just like in web design where you study other websites. Identify your main competitors, understand their strengths and weaknesses, and define what makes you different. That’s your competitive advantage.

What should go into the services section of my plan?

Your services are like the features of a website – they need to be user-friendly and valuable. List the services you plan to offer, their prices, and why they meet your customers’ needs.

Explain how they differ from your competitors’ services.

How does the staffing plan fit into this?

Think of your team as the developers and designers of a website. They bring your vision to life. Detail how many staff you need, their roles, and the skills required.

Also, outline your plans for hiring and training.

Do I need to include a marketing and sales strategy?

Absolutely! It’s like SEO for your website, you need a strategy to drive traffic . Your marketing plan should detail how you’ll attract and retain customers.

Will you use social media, flyers, or partnerships with other local businesses?

How do I end my business plan?

Wrap up your business plan with an appendix. It’s like the footer of a website, where you can include additional information.

This could be your salon license, lease agreement, resumes of key staff, or photos of your products.

What if my plan needs changes along the way?

Just as websites need updates and maintenance, your business plan is not a one-and-done deal. As your business grows, your plan will need to evolve.

It’s your plan, so revisit and revise it as needed. Remember, it’s okay to change your plan.

So, How to Craft an Excellent Beauty Salon Business Plan?

A beauty salon business plan is one of the keys to ensuring your operation thrives. It is a living document that accompanies your salon’s growth and helps you define purposeful strategies.

Thorough market research will provide a sturdy base for your plan. Remember to analyze both your target audience and competitors and specify your positioning. That information will be crucial if you want your marketing to be effective.

Then, use various techniques in your promotion efforts to maximize your brand visibility. Build a team of highly-qualified and passionate people with premium customer service in mind.

Finally, implement tools like Trafft to support efficient management and optimize your operation. With these tips, you can write a winning business plan that sets your salon up for success.

If you enjoyed reading this article about creating a successful beauty salon business plan, you should read these as well:

  • How to Make Your Salon More Profitable With Trafft
  • 23 Paid & Free Salon Marketing Tools Every Owner Should Use
  • How Much Do Beauty Salon Owners Make

Jovana Smoljanovic Tucakov

  • Jovana Smoljanovic Tucakov

Jovana Smoljanovic Tucakov is a Content Marketing and SEO Specialist who uses both words and data to communicate a message and deliver value. With more than 5 years of experience in digital marketing and content production in the IT industry, she loves identifying and solving the readers’ pain points and creating targeted content.

Curious about the human mind and emotions, especially those that drive consumer behavior. Likes fitness, food preparation, board games, reading (both for pleasure and learning), and binge-watching Netflix.

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An Effective Beauty Business Plan Sample

Table of Contents

Are you planning to start your own beauty salon business? You may have dreams of the perfect nail polish shades, smooth music playing in the background, and a steady stream of customers. But before those can become a reality, you need to create a beauty business plan. This article explores how to write a beauty business plan and provides a beauty business plan sample as a reference.

What Is a Beauty Business Plan?

A Beauty Business Plan is a document that outlines the financials, operations, and services of a beauty salon . It typically covers topics like setting up shop, marketing and advertising strategies, cost-cutting measures, clientele assessment, and potential profits. The plan also helps to create a roadmap for owners, guiding them in making important decisions about their business. Also, it serves as a reference point for lenders when deciding whether or not to invest in the venture. A well-crafted business plan should include detailed market analysis, objectives, financial forecasts, timelines and milestones, staffing plans, legal considerations, and more.

Why Do You Need a Business Plan for a Beauty Salon?

A beauty salon business plan is integral to launching a beauty salon successfully. It outlines the services, goals, and projected profits to ensure all aspects are accounted for before moving forward with your venture. A well-defined plan will also provide clarity and help you stay organized, focused, and motivated as you bring your vision to fruition. Furthermore, it can be used as a tool when seeking investments or loan approvals from lenders.

What to Include in a Beauty Salon Business Plan

Below are some key sections to include in a beauty salon business plan:

Executive Summary

This section is a short yet comprehensive review of the beauty salon business. It should capture the essence and objectives of the plan in a few sentences that are powerful enough to pique interest and build confidence.

Company Overview

Here, you must provide detailed information about their beauty salon venture. This includes the mission statement, organizational structure, ownership type, legal entities used for taxation purposes, services provided, and other pertinent data.

Products and Services

In this section, you must carefully delineate the products and services offered by the beauty salon. These may include hair styling, manicures/pedicures, cosmetics, skincare, makeup application, facial treatments, waxing, etc., with each service listed alongside its price point.

Marketing Plan and Analysis

To ensure success, it is essential to have a well-thought-out marketing strategy. It must encompass target markets, promotion methods, pricing strategies, customer loyalty programs, discounts & offers, and other promotional tactics designed to gain clientele.

Team and Management

All personnel involved in running the business must be documented here. For example, owners, staff members, independent contractors, advisors, external consultants, etc., and their respective roles should be enumerated.

Financial Forecasts

Prospective investors will want to know how this business expects to make money. Therefore, this document should contain all relevant financials. This includes start-up capital requirements, operational expenses, cash flow statements, income statements, balance sheets, and long-term projections.

write a business plan on beauty making

Executive Summary:

A beauty salon business plan is an important document for the success of any spa or beauty salon. At Our Salon, we have a unique approach to creating an atmosphere that embraces relaxation and pampering with top-notch services. We will offer diverse hair care services, from haircuts to specialized color treatments. Additionally, our facial services provide custom-designed procedures tailored to each customer’s needs. To set us apart in the market, we offer special promotions and discounts throughout the year.

Company Overview:

Our Salon was established as a partnership between two partners. With over 25 years of combined experience in the beauty industry, they are experienced in offering quality service at an affordable price point. Our Salon prides itself on providing personalized customer service by tailoring our products and services to meet each client’s individual needs. We also use the latest technologies, equipment, and products to complete all services quickly and efficiently.

Products & Services:

Our Salon offers a wide variety of services to clients. It includes haircuts, styling, coloring, highlights, blowouts, updos, formal styling, makeup application, waxing, and facials. We also offer eyelash extensions, brow tinting and shaping, manicures and pedicures, body wraps, spray tanning, threading, and aromatherapy. Additionally, we offer signature packages that include multiple services, such as facial and massage combinations.

Marketing Plan & Analysis:

Our Salon plans to utilize various marketing strategies, such as digital advertising through social media platforms like Facebook and Instagram. We also plan to invest in print ads in local publications and collaborate with other businesses within the community to create cross-promotional opportunities. Furthermore, we intend to develop relationships with influencers to reach a broader audience.

Team & Management:

At Our Salon, we employ an experienced staff of stylists, estheticians, and support personnel who specialize in providing exceptional customer service and high-quality results. Our team strives to create a pleasant environment where customers can relax and receive outstanding service. Besides their technical skills, our employees are trained in customer service protocols to ensure every visit is a positive experience for our clients.

Financial Forecasts:

Our financial forecasts for the beauty business plan are precise and detailed, providing a complete solution for achieving our goals. We aim to increase our profits by growing our customer base, expanding our services, and hiring new staff members to improve our efficiency and better serve our clients. To achieve this growth, we will increase our marketing efforts and invest in new equipment and technology. This will provide us with the tools necessary to stay ahead of industry standards. With these changes in place, we expect to see a total increase in assets over the next few years.

Overall, having a well-crafted beauty business plan is essential to any successful salon. Knowing what to include and how to put it together are key components in creating a solid foundation for your business. To help you get started, use the beauty business plan sample as a guide. With this information, you can create a customized plan to set your salon up for success .

An Effective Beauty Business Plan Sample

Abir Ghenaiet

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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How to Write a Successful Salon and Spa Business Plan

  • August 24, 2023

Table of Contents

write a business plan on beauty making

1. Start With the Executive Summary

The executive summary is the first section of your business plan. It provides an overview of your salon and spa business. It should include a brief description of your business, products and services, target market, and unique selling proposition. The executive summary sets the tone for the rest of your spa and beauty salon business plan. It should be written concisely and compellingly to grab the attention of potential investors and lenders.

2. Include Company Description and History

This section provides an overview of your company for potential lenders or investors. It highlights the unique aspects of your salon and spa, such as the services offered, target clientele, and competitive advantage. You can showcase its growth and success by including a brief business history, instilling confidence in potential partners or investors. A well-crafted company description and history form the foundation of a strong business plan in the salon and spa industry.

3. Prepare a Marketing Plan and Analysis

beauty professional posing in front of mobile hair salon

4. Highlight Your Management Team

Your management team plays a vital role in the day-to-day operations of your business, and investors want to know that you have a skilled and experienced team in place. In this section of your spa and beauty salon business plan, you must provide details about each management team member, including their credentials, areas of expertise, and previous work in the salon and spa industry. By showcasing the skills and qualities of your team, investors will recognize that you have the necessary leadership to manage and grow your salon and spa business effectively.

5. Detail the Services and Pricing

This section enables potential lenders and investors to comprehend the scope of the services you will provide and your pricing strategy. It also aids in establishing you in the marketplace and helping you communicate clearly with your customers. You can highlight your value by outlining the services and prices and illustrating how you will make money for your salon and spa business.

6. Explain Marketing and Sales Strategy

7. present financial projections.

write a business plan on beauty making

8. Perform a Competitor Analysis

It would help if you analyzed your competitors to build a successful salon and spa business plan. Performing a competitor analysis will help you discover their advantages and disadvantages, identify market insufficiencies, and create special selling points. By investigating your competitors, you can better understand the competitive environment and develop tactics to set your salon or spa apart. Analyzing their pricing, marketing tactics, and clientele can also provide insightful information for improving your company and attracting more clients. A thorough analysis of your rivals is essential for a solid business strategy that positions your salon or spa for success.

9. Think of Adding an Appendix

The appendix in a business plan provides additional details and supporting documentation. It includes market research data, financial forecasts, résumés of key employees, and other pertinent details that give the plan more substance and credibility. By including an appendix, potential investors or lenders can learn more about the intricacies of the salon and spa business, increasing the professionalism of the plan and the likelihood of receiving backing for the endeavor.

Why Writing a Salon and Spa Business Plan Is Important

Faqs about writing a salon and spa business plan, what is a salon and spa business plan.

A salon and spa business plan is crucial for the beauty and wellness industry. It outlines goals, strategies, and financial projections. This plan serves as a roadmap for entrepreneurs and stakeholders, providing direction for growth and success. It includes sections on market analysis, target customers, competition, marketing strategies, services, operations, and finances. It addresses factors like location, staff, pricing, and revenue. A well-developed business plan is essential for funding, attracting investors, and guiding operations. Even if not seeking funding, it ensures no critical aspects are overlooked.

What is the business of a spa?

What is the business of a salon.

Salons provide beauty services to clients – manicures, pedicures, facials, waxing, haircuts, styling, coloring, and treatments. Salons often offer additional services like body treatments, massages, and cosmetics applications. The main goal of a salon is to enhance customers’ appearance and overall well-being, helping them to look and feel their best. Some salons also sell beauty supplies that customers can purchase and bring home.

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Beauty Salon Business Plan Template

Written by Dave Lavinsky

Beauty Salon Business Plan

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.

Executive Summary

Business overview.

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.

Product Offering

The following are the services that Major Lengths Beauty Salon will provide:

  • Color Treatment
  • Healthy Hair Treatment
  • Nail Services

Customer Focus

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.

Management Team

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.

Success Factors

Major Lengths Beauty Salon will be able to achieve success by offering the following competitive advantages:

  • Latest hair and nail trends
  • Modern and comfortable environment
  • More selection of each service offered than any other salon in town
  • Major Lengths Beauty Salon offers the best pricing in town

Financial Highlights

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:

  • Beauty salon build-out: $30,000
  • Opening inventory, furniture, equipment, decorations:  $40,000
  • Three months of overhead expenses (payroll, rent, utilities):  $15,000
  • Marketing costs: $5,000
  • Working capital:  $10,000

  The following graph below outlines the pro forma financial projections for Major Lengths Beauty Salon.

write a business plan on beauty making

Company Overview

Who is 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.

Major Lengths Beauty Salon History

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:

  • Registered Major Lengths Beauty Salon, LLC to transact business in the state of Arizona.
  • Has obtained the necessary salon permits and licenses for the state of California.
  • Has a lease contract in place for the 5,000 square foot beauty salon.
  • Has developed the complete list of salon services and products.
  • Has developed the beauty salon’s logo and branding image.
  • Began recruiting a team of stylists, manicurists, and nail technicians.

Major Lengths Beauty Salon Products

The following will be the services Major Lengths Beauty Salon will provide:

Industry Analysis

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.

Customer Analysis

Demographic profile of target market.

The precise demographics for Glendale, Arizona are:

Customer Segmentation

Major Lengths Beauty Salon will primarily target the following customer profiles:

  • Stay at home mothers and fathers
  • Working professionals
  • College students
  • Retired females
  • Mothers with adult or teenage daughters

Competitive Analysis

Direct and indirect competitors.

Major Lengths Beauty Salon will face competition from other companies with similar business profiles. A description of each competitor company is below.

Hair Xtreme

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

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

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.

Competitive Advantage

Major Lengths Beauty Salon will be able to offer the following advantages over their competition:

  • Friendly and knowledgeable staff who are all trained and experienced in the latest hair and beauty trends.
  • Complete list of beauty salon services intended to provide a full day of pampering and relaxation.
  • Casual and comfortable environment with a luxurious feel.
  • Major Lengths Beauty Salon offers the best pricing in town for the high quality of services provided. Their pricing structure is the most cost effective compared to the competition.

Marketing Plan

Brand & value proposition.

Major Lengths Beauty Salon will offer the unique value proposition to its clientele:

  • Complete list of beauty salon services all provided by trained and knowledgeable hair stylists, manicurists, and aestheticians.
  • Pricing is affordable and moderate so customers perceive value when visiting the beauty salon.

Promotions Strategy

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.

Operations Plan

The following will be the operations plan for Major Lengths Beauty Salon.

Operation Functions:

  • Jenna Diaz will be the Owner and Manager of the beauty salon. She will order salon inventory and products, oversee staff, payroll, and manage customer service.
  • Melanie Brooks – Head nail technician that will oversee the nail department.
  • Fiona Adams – Head aesthetician that will oversee the facial and massage departments.
  • Jenna has hired third party companies to manage the bookkeeping, accounting, tax payments, insurance, and legal requirements.

Milestones:

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.

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.

Financial Plan

Key revenue & costs.

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.

Funding Requirements and Use of Funds

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:

Key Assumptions

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.

  • Number of Beauty Salon Services Sold Per Month: 300
  • Average Revenue per Month: $20,000
  • Beauty Salon Lease per Year: $110,000

Financial Projections

Income statement, balance sheet, cash flow statement, beauty salon business plan template faqs, what is a beauty salon business plan.

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.

You can  easily complete your beauty salon business plan using our Beauty Salon Business Plan Template here .

What are the Main Types of Beauty Salons?

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.

How Do You Get Funding for Your Beauty Salon Business Plan?

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.

Why do You Need a Business Plan Template?

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.

Where Can I Get a Beauty Salon Business Plan PDF?

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.

How to write a beauty salon business plan

Table of Contents

Description of business

Explanation of market, swot analysis, opportunities, financial projection, confidently manage your finances with a simple app.

When setting up your beauty salon, you may need to look for a location to open or equipment to buy. You may want to attract investors for your business or get a loan from a bank, so you need a solid business plan .

For guidance on everything you need for a beauty salon business plan, this will cover:

The first section of your business plan should centre around describing your business. Explain what your idea is and what you are going to provide. This section is an opportunity to pitch your business, so make it as exciting as you can.

If you can detail your services, mention why they may be better than at other salons. Be sure to clarify what your USP (unique selling point) is. Explain the problem people have or the gap in the market you have identified. Then, share how your business is the solution. 

This section should also include and explain your branding . If your salon has a name and a logo, make sure you show it off. You can explain the experience you would like to provide and how your brand will assure people of that.

Before starting your business plan, you may have done some market research . From that, you likely have an idea of the people you would like to target for your services. Make sure you use this section to explain who those people are. They will make up your target audience .

Having a target audience allows you to create a customer avatar (also known as a customer profile) . These are descriptions of individuals within your audience. The idea is to put together a hypothetical person (their name, age, job, lifestyle). Then, with that description, you can think about how you can best reach that person.

Customer profiling is a useful part of marketing. If you can include it in your business plan, it shows that you understand who to target. In addition, if you have any ideas or techniques for how you will market yourself to your customers (using Instagram, for example), then mention that as well.

A SWOT analysis looks at your business from every angle. It does this by highlighting your strengths, weaknesses, opportunities and threats. Put this section into your business plan. Then, it could be reassuring to lenders or investors because it shows that you are fully aware of all aspects of your business.

By highlighting the core strengths of your business, you can identify all of the reasons it should succeed. For example, you likely have experience as a beautician to set up this salon, so be sure to detail that as one of your strengths. 

Anything that you would consider helpful to your business should be a strength. For example, you may have connections within the industry or a local reputation with customers. 

After listing your strengths, also mention your weaknesses. Then, show that you have found areas you would aim to improve going forward. Of course, it is unrealistic to have no faults, so admitting some will go a long way in making your business plan easier to trust.

When you write about your weaknesses, it is essential to choose one’s that you can offer a solution to. For example, suppose you have little experience in accounting going into the business. In that case, you could mention that you aim to solve this going forward by having a business account and app that explains your finances, like Countingup (a tool for automating your accounts, also has a three-month free trial) . 

There are always possible opportunities for your business to take advantage. Make sure that you can mention these in your SWOT analysis section. It will show that you are a forward-thinking business owner. 

These opportunities can be anything that could be taken advantage of in the future. For example, if you moved to a booking-only system due to a pandemic, you may decide to create an app that lets you take bookings. Those who sign up for the app may get a discount in exchange for providing an email. Then you can market to them directly in future.

Just as there are potential opportunities, your business also has potential threats. By identifying these in your SWOT analysis, you can prove to the investors and banks that you’re well prepared for running a business. 

If you mention a threat, make sure to say how you intend to solve it. For example, say there is another new salon that charges a lower price. You might keep your prices the same, but offer more value by providing a wash in addition to a cut, and add an optional extra blow-dry. Customers may choose the better value option and often opt for the bonus.

This section, which includes your financial projection, is crucial to gaining loans or investments. You have to provide some numbers for readers of the plan to understand the trajectory of the business.

A sales forecast is an educated estimate of your sales for the first month, quarter, or year. It could use previous market research on other similar businesses. For example, suppose you know the number of customers you expect. In that case, you should offer an expected sales figure by multiplying this number with your service prices.

Banks and investors will also ask you to explain what you plan to do with their funding. Your explanation will help investors assess your success. So, be honest, and ask for what you’ll need based on your projections.

Financial management can be stressful and time-consuming when you’re self-employed. That’s why thousands of business owners use the Countingup app to make their financial admin easier. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one place. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

To start your three-month free trial today, find out more here .

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Creating a Winning Business Plan for the Beauty Industry

Creating a successful business plan is essential for any business in the beauty industry to succeed. This article will cover topics such as creating a sustainable e-commerce business model , writing a business plan for a restaurant, writing a business plan for fashion industry success , developing a comprehensive business plan for a fitness center , and strategies for crafting a winning interior design business plan . With the right knowledge, you can create a winning business plan for your beauty business and increase your chances for success.

You will learn:

  • How to develop a comprehensive plan for your beauty business, from analyzing the industry to setting goals and objectives
  • How to identify and target a specific market for your business
  • How to develop a marketing strategy to reach existing and potential customers, and create financial forecasts and budgets for your business.

Introduction to Business Planning

Starting your own business can be an exciting and rewarding experience. But before you can get your business off the ground, you'll need to create a business plan. A business plan is a written document that describes the details of your business, from the products or services you offer to how you intend to make money. Writing a business plan is a vital step in the process of launching and running a successful business.

Analyzing the Beauty Industry

The beauty industry is one of the most competitive industries in the world. To be successful in this field, you'll need to understand the industry and its trends. This includes researching the market, analyzing your competition, and understanding the needs of your target customers.

Developing Your Business Concept

Once you've analyzed the industry, you'll need to develop a business concept. This includes deciding on a business name, product or service offerings, pricing, and other details. It's also important to identify a unique selling point (USP) to differentiate your business from the competition.

Crafting Your Business Plan

Now that you've developed your business concept, it's time to create a business plan. This document should include key information about your business, such as your mission statement, business structure, marketing and financial strategies, and more.

Setting Goals and Objectives

Your business plan should also include measurable goals and objectives. Setting goals and objectives is essential for tracking your progress and success. It's also a great way to motivate yourself and your team.

Identifying Your Target Market

Before you can create a marketing strategy, you'll need to identify your target market. This includes researching your customers' needs and preferences, as well as their buying habits.

Developing a Marketing Strategy

Once you've identified your target market, you'll need to develop a marketing strategy to reach them. This could include creating an online presence, advertising in beauty publications, or attending industry events.

Establishing Financial Forecasts and Budgets

Financial forecasting and budgeting are essential for any business. You'll need to create a budget for your business and estimate the revenue and expenses. This information can help you make informed decisions and plan for the future.

Presenting Your Business Plan

Once you've written your business plan, you'll need to present it to potential investors or lenders. It's important to be prepared and professional when presenting your business plan.

Staying on Track and Adjusting Your Plan

Your business plan is not a static document. As your business evolves, you'll need to adjust your plan. This includes monitoring your progress, adjusting your goals and objectives, and making changes to your marketing and financial strategies.

Creating a business plan is an important part of launching and running a successful business. By understanding the beauty industry, developing a business concept, setting goals and objectives, identifying a target market, and creating a marketing and financial strategy, you'll be on your way to creating a sustainable e-commerce business model , writing a restaurant business plan, writing a business plan for fashion industry success , developing a comprehensive business plan for a fitness center , and crafting a winning interior design business plan. Below we answer common questions entrepreneurs have about these topics.

I. Introduction to Business Planning

What is the purpose of a business plan.

The purpose of a business plan is to provide a clear and detailed overview of the goals and strategies of the business and to help the entrepreneur execute those goals. It is a roadmap that will enable the entrepreneur to achieve success.

What are the key elements of a successful business plan?

Plan for growth. Many entrepreneurs forget to consider the future. Perhaps the business is doing well, and you have no immediate concerns. However, it's important to keep your eyes on the road ahead, and set aside a percentage of your profits to invest in your company's growth.

By doing this, you'll be able to hire more employees, purchase more equipment, and continue on a steady path of success. If you don't plan for growth, your business will stagnate and fail.

II. Analyzing the Beauty Industry

How has the beauty industry evolved over the past 10 years.

Ten years ago, consumers, in general, were willing to settle for products that were merely good enough. Now, with so many options available, and the instant feedback from reviews and social media, consumers expect a better experience. Whether it's personalized products, subscription services, or a more personalized approach in the retail experience, the bar has been raised for beauty brands.

What challenges have beauty companies faced in adapting to changing consumer tastes?

Although the pandemic has opened up new doors for companies, there are a few challenges they face when adapting to changing consumer tastes. One of the most obvious challenges is that people have less money, so businesses have to be more creative in coming up with solutions to this problem. Another challenge is that customers are more informed than ever before, so companies have to work harder to stay on top of trends and developments.

III. Developing Your Business Concept

What is the purpose of your business.

In the context of answering the question, What is the purpose of your business? the purpose of your business is to give your customers a meaningful experience. This is not only true for the product/service you offer but also the experience surrounding it. Your website and other marketing materials are a part of the overall experience your customers have with your business.

Customers are looking for businesses that can provide them a seamless experience. This means you have to have an organized website, an effective ordering process, and an efficient delivery system. You can also make your business stand out by providing exemplary customer service. This may include responding to comments on social media or sending personalized emails to customers after they make a purchase. The purpose of your business is to offer your customers a positive experience.

What services or products will you provide?

The answer to this question should be a combination of what you're passionate about and what you're good at. If you're passionate about something, chances are you'll be good at it. If you're good at something, chances are you'll enjoy it. I've found that the best business owners are the ones who are passionate and good at something they enjoy. Finding your sweet spot is the hard part.

IV. Crafting Your Business Plan

What resources (time, money, personnel) will you need to implement your business plan.

As an entrepreneur, you have to be aware of the costs that are associated with your business. You should be able to anticipate and plan for these costs, so that you can stay on track and make sure that you have the resources you need to implement your business plan. Take the time to do your research and calculate the costs associated with your business so that you can provide a realistic estimate when asked this question.

What steps can you take to mitigate potential risks associated with your business plan?

Entrepreneurs should think about answering the question, "What steps can you take to mitigate potential risks associated with your business plan?" by first and foremost writing a strong business plan, then thinking through a backup plan in case the original plan fails. Every business owner should have a contingency plan at the ready in case anything goes wrong or unexpected with their business. The key is to have a backup plan ready to go so you can pivot as needed and be prepared for whatever lies ahead. By having a strong business plan and a backup plan in place, you can mitigate a lot of risks associated with your business.

V. Setting Goals and Objectives

What specific goals do you want to achieve.

Before answering the question, an entrepreneur should think about how they want to structure their answer. There is no right or wrong way to answer this question, but it is important to structure your answer in a way that highlights your strengths and the value that you can bring to the business.

One way to do this is by focusing on the outcomes that you want to achieve and how your business will achieve them. By focusing on the end result and how your business will achieve it, you can highlight your ability to think strategically and take a proactive approach to business. By highlighting your ability to think strategically and take a proactive approach to business, you can show that you are an entrepreneur who can take charge of their business and be a leader in your industry.

What objectives do you need to put in place to help you reach those goals?

As an entrepreneur, you should think about how much time you can realistically devote to your business's developments. Dedication is crucial in business, and an entrepreneur must be able to allocate time and energy daily to the movement of their company's objectives. However, being an entrepreneur means you will have several other responsibilities, such as a personal life and other ventures. Therefore, you must dedicate the time you have to your business wisely.

VI. Identifying Your Target Market

Who is your ideal customer.

Entrepreneurs should think about the different purchasing processes their customers go through before they make a decision. Most companies have multiple sales cycles that involve different people and information along the way before a final sale. When you know who your ideal customer is, you can work backwards to identify the other people involved in the decision-making process. You can then build your marketing efforts around them to help them understand the importance of your product or service before the final decision is made.

What kind of demographic do you want to target?

An entrepreneur should think about their target demographic in terms of various criteria including age, gender, race, and income. This can help them to develop a profile of the types of people they want to reach. From there, they can start to develop strategies for reaching that demographic. For example, if they're pitching a new TV show they'll want to make sure they have the right actors and actresses to appeal to their target demographic. Or if they're launching a new product they'll want to consider how to reach their target audience through social media or other marketing channels. By thinking about their target demographic up front, entrepreneurs can develop a plan for reaching that audience and ultimately set themselves up for success.

VII. Developing a Marketing Strategy

What are our target markets.

Entrepreneurs should think about answering the question, "What are our target markets?" by first identifying their own personal values and beliefs. Once they have done this, they will be able to create a mission statement that embodies their own core principles and also aligns with the values of their target audience. This will help them to create a strong and authentic connection with their customers.

How can we differentiate our product from our competitors?

You need to highlight your product's USP (unique selling proposition). What makes your product different from the competition? Is it the quality of the product, the price, the customer service, or something else entirely? Make sure you communicate this clearly to potential customers. They will appreciate that you took the time to highlight what makes your product unique.

VIII. Establishing Financial Forecasts and Budgets

What is the anticipated revenue for the next three years.

If you're a new business owner or thinking about starting a new business, you have a lot of questions to consider, especially when it comes to answering the question, "What is the anticipated revenue for the next three years?" You'll need to consider a few things, like your business plan, industry trends, and your company's growth strategy.

First things first, you'll need to make sure your business plan is solid. This will help you get a better idea of what you want to accomplish in the next few years. From there, you'll need to consider the trends in your industry and how you can capitalize on them. Finally, you'll need to think about your company's growth strategy and how you can maximize your revenue. By considering all these things, you'll be able to give a more accurate answer to this question.

What is the estimated budget for operating expenses?

If you're asked about a business's operating expenses, it's important to be as specific as possible. If you're not sure off the top of your head, don't make something up. Instead, ask for some time to collect the numbers and provide a more accurate estimate.

The goal here is to seem knowledgeable about your business, but not so arrogant that you don't want to take the time to make sure you're giving the most accurate answer possible.

IX. Presenting Your Business Plan

How effectively does the business plan communicate the company's vision and mission.

Entrepreneurs should think about the company's mission statement when answering the question, How effectively does the business plan communicate the company's vision and mission? The mission statement is a short, clear, and concise explanation of the company's goal, while the vision statement is more of a long-term plan of how the company will reach its goal. The mission statement should be included in the business plan, along with a statement of the company's values.

What strategies will be used to ensure the successful implementation of the business plan?

An entrepreneur should make sure to focus on their strengths when answering the question, What strategies will be used to ensure the successful implementation of the business plan? You don't have to be perfect; rather, you can show that you've identified your weaknesses and are working to remedy them. For example, if you're not very good with numbers, make sure to hire someone who is.

X. Staying on Track and Adjusting Your Plan

How can i make sure that i'm staying on track with my plan.

Be flexible with your plan. The best laid plans don't always work out, and you need to be agile enough to pivot when needed. If your initial plan doesn't work out, be willing to adapt. Maybe you need to change your approach, or maybe you need to change your goals. Being able to pivot when needed will help you stay on track while still keeping your long-term goals in sight.

What steps can I take to adjust my plan if I need to make changes?

Every startup has to deal with unexpected challenges, and it's always better to be prepared for them rather than be taken by surprise. Being prepared means having a contingency plan in place. It is something every entrepreneur should think about when answering the question, What steps can I take to adjust my plan if I need to make changes?

The first step is to identify the potential risks and brainstorm ways to address them. Then, you can choose the best course of action based on the circumstances. Having a contingency plan will allow you to respond quickly and ensure that your business continues to run smoothly.

Key Takeaways:

  • Business planning is essential for launching and managing a successful beauty business.
  • Analyzing the beauty industry will help you identify opportunities and potential challenges.
  • Create a comprehensive business plan that outlines your concept, goals and objectives, target market, and financial goals.
  • Develop a marketing strategy to reach your target customers and help grow your business.
  • Monitor your progress and adjust your plan to stay on track and continue to grow.

Business planning can be an intimidating process, but it is necessary to ensure the success of your business. By taking the time to analyze the beauty industry, develop your business concept, craft your business plan, set goals and objectives, identify your target market, develop a marketing strategy, establish financial forecasts and budgets, present your business plan, and stay on track and adjust your plan, you have the opportunity to start off on the right foot and ensure the success of your business. With the right guidance and dedication, you can create a business plan that will take your business to the next level.

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A well-written business plan can be a great roadmap for your salon – thoughtful planning and analysis help you make sure that you are building your business on solid foundations. Whether you’re just launching or have been running for quite some time – it’s never too late to create this kind of guide. And even if you’re flying solo in your business, creating a business plan for a small or mobile beauty salon is most definitely a thing!

Tip: Do you want to prepare your own solid business plan? Use our template to cover all the important points!

A business plan is basically a collection of your principles, goals and methods. It’s an outline of your company that allows you to prevent (or at the very least – minimise the effects of) disruptions taking place whenever you want to implement a new idea. We’ve prepared a template that covers all the most important elements – by using it, you’ll be able to prepare a business plan fit for your beauty salon in no time.

Overview of your business

Begin by describing the most essential elements. State your salon’s purpose, objective and the approach it takes to reach its goals. Describe where you operate and if you have more than one location (or in case your business is mobile – what is your reach). If you succeeded to reach one (or multiple) of your goals so far include this piece of information as well, along with a detailed description of the steps it took to get there.

In this part, include:

  • The company purpose, mission and vision
  • Company formation information
  • Location and geographical markets served or where you have a presence
  • Current status and stage of business
  • Any notable achievements so far

Management and organisation of your business

This part is dedicated to all people involved in creating your business. State clearly who is the founder, owner and shareholder of the salon. If you have multiple employees, it’s a good idea to include a section dedicated to key team members – including managers, team leaders (if you have them) and employees with unique skill sets.

  • Founders and executive team members
  • Any owners and shareholders
  • Team leaders and key team members

Definition of your beauty services

Now it’s time to describe what you do in detail. What services do you provide and what products do you use and sell? You can also set your pricing and include plans for the future expansion of your service range.

  • Definition of the core services
  • Product lines used
  • Current pricing
  • Anticipated future products and services you hope to develop

Marketing plan

In this part, you think more about your target audience and competitors. It’s best to begin with doing a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats and is a way of recognising your internal and external issues. Strengths and Weaknesses are internal and you can develop or change them through hard work, while Opportunities and Threats you can smartly take advantage of or protect yourself from, but cannot change. It’s important to distinguish and name them so that you can create a conscious, smart marketing strategy.

  • SWOT analysis
  • Target market research
  • Competition and market research
  • Marketing channels to be used
  • Marketing budget

Operational plan

This part of the business plan is dedicated to your expansion plans. Do you want to get a bigger space? Are you planning to become more tech-savvy? Does it seem like you are going to require new equipment? Include your plans and predictions in this part.

  • Facilities and space needed
  • Technology needs
  • Equipment needs
  • Legal and accounting needs

Financial plan

Arguably the hardest part of creating the business plan is finding a moment to gather all your financial data . It will be much easier to do if you use Booksy, as the system delivers Statistics and Reports features that provide (but are not limited to) details on your business performance, staff commission and product inventory.

  • Current balance sheet
  • Financial projections for the next year
  • Cash flow projections
  • Income and expenses

write a business plan on beauty making

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BUSINESS STRATEGIES

A step-by-step guide on how to start a beauty business

  • Amanda Bellucco Chatham
  • Jun 16, 2023
  • 12 min read

how to start a beauty business

Ready to embark on your dream of starting a beauty business? Diving into the beauty space offers an exciting opportunity to be part of a thriving industry fueled by people's desire for self-care and personal expression (for other types, check out types of businesses ).

As of 2022, the global cosmetic market was valued at over $262 billion and it’s predicted to grow at a compound annual growth rate (CAGR) of 4.2% through 2030. The market’s healthy trajectory is due in part to constantly evolving beauty trends, new formulations and packaging, and a push for products that put sustainability at the forefront. With proper planning, your new beauty business has plenty of potential to thrive in this lucrative market.

So, whether you're looking to set up a business website , open a brick-and-mortar store or offer mobile beauty services, you're in the right place. This comprehensive guide will help you navigate the complexities of launching your beauty-related venture and lay the foundation for long-term success.

How to start a beauty business

Research and define your niche

Decide on a business model and concept

Decide on manufacturing strategy (if applicable)

Create a business plan

Pick a legal structure, then register and license your business

Create your website

Build your brand

Source and manage inventory

Provide excellent customer service

Promote your business

01. Research and define your niche

Let's start with the basics. To establish a beauty brand, it's crucial to understand your target audience. Researching and defining your niche or specific beauty business idea will set you up for success by differentiating you from competitors and attracting your target audience.

It's also important to understand that defining the right niche for your beauty business is an ongoing process. As your beauty business matures, stay open to adapting and refining your niche based on changing trends, emerging customer needs and industry developments.

Here are some methods to help you define your niche:

Identify your passions and expertise: Consider what aspects of beauty excite you the most, whether it's skincare, cosmetics, hair care, organic products or specialized services. For example, you might be passionate about bridal makeup, organic skincare treatments or men's grooming. Use your passion and knowledge to influence and build your niche. Looking to start a specific niche? Check out our guide to starting a nail business , as just one example.

Study the market: Research current trends, gaps and opportunities within the beauty industry. For example, analyze competitors within your geographic area or online space, and identify areas where they might be lacking. Consider fulfilling those unmet needs if they align with your business.

Define your target audience: Determine your ideal customers by considering demographics like age, gender, location and lifestyle. Additionally, delve into consumer preferences, interests and values. Understanding your target audience will help you tailor your products, services and marketing efforts to cater to their needs and desires.

Find a unique selling angle: Find a unique selling proposition (USP) that sets you apart from your competition and appeals to your target market. For example, you could offer personalized consultations, use all-natural or sustainable ingredients, provide specialized services or create a distinct brand identity.

Test and validate: Conduct surveys, interviews or focus groups with your target audience to gather feedback on your proposed offerings. This will help you fine-tune your niche to ensure it resonates with your potential customers.

02. Decide on a business model and concept

When you start a business , it's essential to focus on a specific business model or concept that best enables you to bring your chosen niche to life. At a basic level, there are two primary models to consider: a service business model or a product business model. But, they aren’t the only options you have to choose from.

Other popular beauty business concepts include:

Mobile services: Offer on-the-go beauty services, traveling to clients' locations for personalized treatments like hairstyling, makeup, manicures or facials. This model provides flexibility and convenience for customers who prefer on-location pampering.

Brand and product development: Create your own beauty brand and develop a unique line of products. This requires strategic product development, branding and marketing to stand out in the competitive market.

Dropship beauty supplies: Curate products from a dropshipper specializing in your niche. Dropshippers will handle storage, packaging and order fulfillment, allowing you to sell products without the need for upfront manufacturing or inventory.

Retail store: Open a physical retail store to showcase and sell a curated selection of skincare, cosmetics, hair care or other products tailored to your niche. Offer in-person consultations and demonstrations, and complement your store with an eCommerce website for global reach.

Check out this list of over 60 service business ideas for more inspiration.

Let's look at some real-life examples of companies within the beauty and cosmetics industry to better understand how your selected business model and concept might come together.

Bringing Beauty to You

bringing beauty to you website homepage

Nichole Alexis, licensed esthetician and owner of Bringing Beauty to You , offers various skincare services to both men and women within the Chicago area.

Business model: Service

Business concept: Personal beauty consultant

What this business does: Provide exceptional service and education, and guide clients to achieving healthy, radiant and beautiful skin—whether they choose to wear makeup or not.

MDRNbeauty is an eCommerce store that carries a variety of cosmetics and hair care products curated from a select collection of brands.

Business model: Product

Business concept: Online retail store

What this business does: Provide high-quality hair care and cosmetic products from select brands.

Beautifully Blessed Salon

beautifully blessed salon website homepage

Located in Delhi, Louisiana, Beautifully Blessed Salon hosts a variety of beauty service providers, including hair stylists, makeup artists and massage therapists.

Business model: Service and product

Business concept: Beauty salon and spa

What this business does: Offer a place where customers can find passionate, high-quality professionals and a world-class salon experience for all their self-care needs.

03. Decide on a manufacturing strategy (if applicable)

If you plan to manufacture your own beauty supplies, your strategy must be affordable and allow for a reasonable net profit margin—without sacrificing product quality or customer satisfaction.

Here are some key points to keep in mind:

Regulations and compliance: Familiarize yourself with the regulations and compliance requirements for manufacturing beauty products in your region. This may include adhering to safety standards, ingredient labeling, product testing and obtaining necessary licenses or certifications.

Research and development: Invest time and resources into creating high-quality and effective beauty products. Consider factors like formulation, ingredient sourcing, product stability, packaging and compliance with industry standards.

Manufacturing facilities and equipment: Determine the volume of products needed and assess the required facilities and equipment. Consider whether you will manufacture in-house or outsource production to a contracted manufacturer. Evaluate your chosen manufacturing approach's cost, quality control measures and scalability.

Supply chain management: Establish a reliable supply chain for sourcing raw materials, packaging components and other necessary ingredients. Build relationships with suppliers and ensure consistent quality and timely delivery to maintain a smooth production process.

Quality control and testing: Implement stringent measures to ensure your product's safety, effectiveness and consistency. Conduct regular testing and quality checks to meet industry standards and customer expectations.

Branding and packaging: Develop a strong brand identity and appealing packaging that reflects your brand values. Consider the functionality, design and sustainability of your packaging choices.

04. Create a business plan

A business plan helps set a solid foundation and roadmap for your beauty business. It's a dynamic document that serves as a guide to keep you focused on your goals and communicates your vision to potential stakeholders, such as investors or lenders.

As your business evolves, plan to review your business plan regularly to keep you and your business on target. Remember to focus on clarity and brevity while ensuring that the key elements of your business plan are covered.

The key elements of a solid business plan often include the following:

Executive summary: Provide a concept statement which includes a brief overview of your business operations , goals and products/services.

Company description: Describe your beauty business, its structure, location and unique selling proposition.

Market analysis: Research your target audience, industry trends and competition.

Products and services: Explain your beauty offerings, their features and any proprietary technologies.

Marketing and sales strategy: Outline your marketing, pricing and distribution plans.

Organization and management: Provide an overview of your team and their roles.

Operations: Describe your production processes, supply chain and facilities/equipment.

Financial projections: Include income statements, startup capital , cash flow projections and funding needs.

Risk analysis: Identify potential risks and outline contingency plans.

Appendices: Attach supporting documents like market research data and key resumes

05. Pick a legal structure, then register and license your business

Establishing your startup beauty business as a legal entity makes sure you’re protected, regarding both your business assets and your personal assets.

There are five legal structures (business entity types) to choose from. A limited liability company (LLC) structure is one of the most popular choices for startups. However, you may decide that another structure fits your business better.

Sole proprietorship : A business owned and operated by one person who is liable for business debts. Business income taxes are reported on the owner's personal tax return.

Partnership : A business owned by multiple individuals who share profits, losses and responsibilities. General partnerships have equal liability, while limited partnerships have limited liability. Partnerships are taxed on partners' personal tax returns.

Limited liability company (LLC) : Combines the liability protection of a corporation with the flexibility of a partnership. Owners (members) have limited personal liability, and management and taxation options are flexible.

C Corporation : A separate legal entity owned by shareholders, providing limited liability protection. Corporations have a complex structure, subject to regulations and formalities. Taxation can be at both corporate and individual levels unless certain tax elections are made.

S Corporation: A regular corporation with special tax status. Provides liability protection and allows pass-through taxation, with income, losses, etc. Taxes are reported on shareholders' individual tax returns.

illustration of business legal structures

Consider each entity type's unique characteristics and requirements when choosing the most suitable structure for your beauty business. If you need help deciding what structure to choose, seek the advice of a business attorney or other professional.

The registration process may vary depending on your location and business structure, so it's best to consult with a business attorney or seek guidance from your local Small Business Administration (SBA) office or Chamber of Commerce to ensure compliance with all applicable laws and regulations.

State registration

Business name: Choose a unique name for your beauty business and ensure it complies with your state's naming guidelines. If you need some inspiration, try Wix’s free business name generator to spark some creativity. You can also consider these beauty business name ideas or these nail business names .

Register with the Secretary of State: Visit your state's Secretary of State website and follow the instructions for registering your business. Fill out the necessary forms and pay the required fees. Be prepared to provide information about your business, such as its name, structure and address.

Secure business licenses and permits: Research and obtain any required business licenses and permits specific to your state. Ensure you clearly understand any specific regulations that apply, such as health and safety standards, cosmetology licensing or product labeling guidelines. Bear in mind you will likely need to show your business license in order to obtain business liability insurance.

Looking to start a beauty business in a specific state?

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Federal registration

Employer identification number (EIN): Apply for an EIN online through the Internal Revenue Service (IRS) website . This unique identifier is used for tax purposes, hiring employees, opening a bank account and filing federal tax returns.

Understand federal tax obligations: Understand your federal tax obligations, including income tax, employment tax and any industry-specific taxes or regulations that may apply to your beauty business.

Trademarks: If you plan to use a unique brand name, logo or slogan, consider registering for trademark protection with the United States Patent and Trademark Office (USPTO) to safeguard your intellectual property.

06. Create your website

Choose a solution that includes all the tools and support you need to build a beautiful website for your new business needs. For example, Wix offers a complete suite of tools for managing and growing your business, including hundreds of professionally designed website templates, a drag-and-drop website builder, inventory management, marketing tools and more.

Choose your design: Pick a design template for your website that reflects your brand. Wix has various product and service website templates to choose from. Customize your chosen template with your graphics and colors.

Organize your pages: Create essential pages like About, Contact, Shipping and Return Policy. Add your products or services to your online store and always use high-quality photos. If you see clients in person, like at a spa or salon, you can integrate the Wix Bookings app for clients to schedule appointments directly through your website.

Describe your offerings: Provide detailed descriptions for each product or service, including size, fragrance, color, warnings and usage tips, if applicable. Consider creating an FAQ page to address common questions.

Set competitive prices: Factor in production costs, labeling and packaging, and aim for a profit margin between 25% and 50%. Adjust prices based on market response.

Set up online payment processing: Integrate services like Wix Payments and PayPal to easily accept payments online. Offer multiple payment options to streamline the checkout process and help customers feel confident about their purchases.

07. Build your brand

Your branding is just as important as your product or service. It starts with a great business name and logo that makes a statement about your style and personality. Your beauty logo should be attractive to your target audience and consist of colors representative of your brand. Make sure it appears everywhere: use it proudly on your website, social media accounts, marketing materials and product packaging (if applicable).

Looking to design a logo from scratch? Try Wix's free logo maker .

When launching a new business, it’s also important for you to consider what essential assets round out the heart of your brand. You’ll want to draft up a compelling mission statement, define your core values, your business ethics and establish your brand’s voice. These elements shape your business identity and further resonate with your target audience.

Brand recognition takes repetition and consistency, and when you combine branding with a positive shopping experience, customers are more likely to shop with you again.

08. Source and manage inventory

Whether you choose to dropship your products or purchase them wholesale, always take the time to research your sourcing options. Determine what aspects are most important to your business and your target market. Consider the following when selecting a supplier:

Minimum order quantity

Shipping speed and cost

Customer service

Fulfillment services

Product variety

Also, don't be afraid to contact potential suppliers directly to negotiate terms. You may be able to work out a deal.

Choose a product mix that aligns with your target market and business niche, and start by curating a small selection of products. As your business grows, expand your inventory based on customer feedback and sales data.

You’ll also want to implement an inventory management system to track product inventory, sales and reorder points. For example, Wix eCommerce makes it easy to successfully manage and track your inventory right from your website dashboard.

Effective inventory management is crucial for maintaining optimal stock levels, meeting customer expectations and maximizing profitability. Regularly review and refine your inventory strategies to adapt to your market's needs and drive the success of your beauty business.

desktop inventory management system

09. Provide excellent customer service

This point cannot be stressed enough. By providing excellent customer service, you entice your shoppers to visit your store again. Stay responsive to customer feedback and continually improve your products based on their needs and preferences.

Consider creating a Customer Service Credo to list your service expectations for your team. For example:

Respond to customer inquiries or complaints promptly, take ownership of issues, proactively work toward a solution and follow up to ensure a satisfactory resolution.

Listen attentively to customers, understand their needs and concerns while showing empathy and making them feel valued and heard.

Provide personalized interactions with customers, address them by name and consider their preferences or past interactions with your business.

Treat customers with respect, courtesy and professionalism at all times and use a positive and friendly tone, even in challenging situations.

Provide clear and concise information, avoiding jargon or technical terms that may confuse customers.

Go above and beyond to meet customer needs by offering additional assistance, recommendations or special considerations when appropriate.

Encourage and actively seek customer feedback to understand areas for improvement and then implement changes to enhance your products, services or overall customer experience.

Delivering consistent customer service across all channels and touchpoints while maintaining a high standard of service quality.

10. Promote your business

There are several ways to promote your business. Start by identifying your unique selling points, then determine which methods (such as social media campaigns, email marketing or influencer partnerships) align best with your business. From there, develop a comprehensive marketing strategy that not only attracts potential customers but also engages, nurtures and converts them into loyal advocates of your brand.

Below are some easy ideas to get you started.

Promote your brand on social media: Select the platform where your target market is most active, create a business account and share high-quality photos and short videos showcasing your products in action.

Build an email list: Add a sign-up link on your website, urging social media followers to visit and sign up (you can also incentivize them with a sign-up bonus or coupon). Utilize newsletters for feedback, product announcements, tips and driving traffic to your website.

Utilize paid advertising platforms: Create paid ads on Google or your preferred social media platform, setting clear goals and defining your audience. Engage potential customers with captivating visuals and persuasive copy, and leverage data insights to optimize marketing strategies for maximum ROI.

Expand your reach through local marketing: Participate in local shows, events or offer to host in-home parties with special host bonuses. Check with the local Chamber of Commerce for additional resources for new businesses in your area.

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How To Write a Business Plan for Beauty School in 9 Steps: Checklist

By alex ryzhkov, resources on beauty school.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan

Welcome to our blog post on how to write a business plan for a beauty school! With the beauty industry experiencing steady growth and an increasing demand for beauty professionals, now is the perfect time to embark on your journey in this exciting field.

The beauty school industry has been thriving, with an annual growth rate of approximately 3.4% in the past five years. This growth is fueled by the rising popularity of beauty-related services and the increasing number of individuals seeking education and training in these areas.

So, if you're looking to start your own beauty school and make the most of this flourishing industry, it's crucial to have a well-structured business plan in place. By following our comprehensive checklist of 9 essential steps , you'll be on your way to creating a successful beauty school that stands out among the competition.

Let's dive into the first step: conducting thorough market research to gain valuable insights into the demand for beauty education in your target area. By understanding your potential customers' needs and preferences, you can tailor your curriculum and services to meet their expectations.

Once you've gathered market research, it's important to define your target market. Determine who your ideal students are and what they are looking for in a beauty school. This will guide your curriculum development and marketing efforts.

Competitive analysis is another vital step in the process. By researching and analyzing your competitors, you can identify their strengths and weaknesses, allowing you to differentiate your beauty school and offer unique value to your students.

Industry trends play a significant role in the success of your beauty school. Stay up-to-date with the latest developments, such as new techniques, emerging technologies, and changing consumer preferences, to ensure your curriculum remains relevant and competitive.

Understanding your unique selling proposition (USP) is crucial for attracting students and setting your beauty school apart from the rest. What sets you apart? Is it your comprehensive curriculum, experienced instructors, or industry connections? Define your USP and leverage it in your marketing efforts.

Your mission statement should clearly outline your beauty school's values, goals, and commitment to excellence. It serves as a guiding force for your business and resonates with your target market, attracting students who align with your vision.

Ensuring financial feasibility is essential for the long-term success of your beauty school. Analyze your costs, revenue streams, and projected financial performance to ensure your business is viable and sustainable.

Choosing an appropriate business structure, such as a sole proprietorship or LLC, is an important decision that impacts your legal and financial responsibilities. Seek advice from a professional to determine the best structure for your beauty school.

Last but not least, establishing effective marketing and advertising strategies is crucial for attracting students and generating awareness about your beauty school. Utilize various channels, such as social media, industry partnerships, and targeted advertising, to reach your target audience.

By following these 9 crucial steps , you'll be well-prepared to create a comprehensive and compelling business plan for your beauty school. Stay tuned for our upcoming blog posts, where we'll delve deeper into each step, providing you with detailed insights and actionable tips for success!

Conduct Market Research.

Market research is a critical step when starting a beauty school. It allows you to gather important information about your target audience, industry trends, and potential competitors . This research will provide you with the insights needed to make informed decisions and tailor your business plan accordingly.

Start by identifying your target market, which could include individuals looking to start a career in the beauty industry or professionals seeking further education and specialization. Understand their needs, preferences, and demographics through surveys, focus groups, or online research. This will help you shape your curriculum and services to meet their specific requirements.

Next, analyze the competition. Look into other beauty schools in your area to assess their offerings, pricing, and reputation . This will give you an idea of what sets you apart and how you can position your school as unique in the market. Additionally, identify any gaps or opportunities for improvement that you can leverage to gain a competitive advantage.

Another crucial aspect of market research is identifying and analyzing industry trends. Stay updated with the latest advancements, techniques, and technologies in the beauty industry. This will help you anticipate future demands and stay ahead of the curve . Attend industry conferences, read industry publications, and engage with beauty professionals to gain valuable insights.

Tips for conducting market research:

  • Utilize online survey tools to collect data from your target audience.
  • Visit competitor websites and social media platforms to gather information about their services.
  • Attend industry trade shows or events to network and learn about current trends.
  • Read beauty industry blogs and forums to gain insights from industry professionals.

By conducting thorough market research , you will gain a deeper understanding of your potential customers, competitors, and the overall industry landscape. This knowledge will be invaluable as you move forward with developing your business plan for a successful beauty school.

Define The Target Market.

Defining your target market is a crucial step in creating a successful business plan for your beauty school. It involves identifying the specific group of individuals who will be most interested in and benefit from your services. By understanding your target market, you can tailor your offerings to meet their needs and effectively market your beauty school to attract them as students.

When defining your target market, consider factors such as demographics, psychographics, and behavior. Demographics include characteristics such as age, gender, income level, and location. Psychographics encompass factors like interests, attitudes, and lifestyle choices. Behavior refers to actions and patterns of potential customers, such as their preferred beauty treatments or willingness to invest in education.

Here are some tips to help you define your target market:

Research the beauty industry:

Identify your unique offerings:, create buyer personas:, segment your market:, consider the competition:.

By clearly defining your target market, you can create a business plan that specifically addresses their needs and desires. This will help you attract the right students and position your beauty school for success in the competitive beauty industry.

Analyze The Competition.

When starting a beauty school, it is crucial to analyze the competition in the industry. This step helps you understand the current players in the market, their strengths and weaknesses, and how you can position your beauty school to stand out.

Research other beauty schools in your area and beyond. Look for schools that offer similar courses and programs. Take note of their pricing, curriculum, teaching methods, and facilities. This will give you an idea of what you will be up against and help you identify areas where you can differentiate your beauty school.

Visit the competitor schools if possible. Observe their classrooms, meet their instructors, and talk to their current students. This firsthand experience will provide valuable insights into the overall student experience, the quality of training provided, and any potential gaps or weaknesses that you can address in your own beauty school.

Take a close look at their online presence. Analyze their website, social media accounts, and online reviews. Look for any unique selling points they emphasize and how they engage with current and prospective students. This will help you understand their marketing strategies and identify potential opportunities for improvement or differentiation.

  • Take note of the strengths and weaknesses of your competitors to develop strategies that showcase your own unique advantages.
  • Consider offering specialized courses or unique programs to differentiate your beauty school from the competition.
  • Identify any gaps in the market that are not being adequately addressed by your competitors and explore how you can provide solutions for those needs.

By analyzing the competition thoroughly, you will gain valuable insights that can shape your own beauty school's curriculum, teaching methods, pricing, marketing strategies, and overall positioning in the market. Use this information to create a business plan that sets your beauty school apart and attracts students.

Identify And Analyze Industry Trends

Identifying and analyzing industry trends is a crucial step in developing a successful business plan for a beauty school. By understanding the current trends and shifts in the beauty industry, you can better position your school to meet the needs and demands of the market. Here are some key considerations when it comes to identifying and analyzing industry trends:

  • Stay updated: Regularly research and follow industry publications, blogs, and social media accounts to stay informed about the latest trends in the beauty industry. This will help you identify emerging techniques, technologies, and preferences in the field.
  • Attend industry events: Participating in beauty trade shows, conferences, and networking events can provide valuable insights into the latest developments, market shifts, and consumer preferences within the industry. These events also offer an excellent opportunity to connect with industry experts and professionals.
  • Study competitor behavior: Look closely at your competitors and their actions to gain a better understanding of their strategies and the trends they are capitalizing on. Analyze their marketing campaigns, product offerings, and customer feedback to identify any gaps or opportunities that you can leverage.
  • Examine consumer preferences: Understanding the evolving preferences and needs of beauty consumers is essential for your beauty school. Conduct surveys, interviews, or market research to gather insights directly from your target market. This will help you tailor your curriculum and services to meet their expectations and stay ahead of the curve.
  • Utilize social media listening tools to monitor conversations and trends in the beauty industry.
  • Engage with industry influencers and thought leaders to gain valuable insights and perspectives.
  • Stay open to innovation and be agile in adapting your curriculum and services to align with emerging trends.

By diligently examining industry trends, you can position your beauty school to successfully meet the changing demands of the market and ensure the long-term growth and profitability of your business.

Determine The Unique Selling Proposition

One of the essential steps in writing a business plan for a beauty school is determining your unique selling proposition. This is what sets your beauty school apart from the competition and makes it stand out in the market. Your unique selling proposition is a combination of factors that make your beauty school distinct and appealing to your target audience.

To determine your unique selling proposition, consider what makes your beauty school different from others in the industry. This could be a specialized curriculum, high-quality instructors, state-of-the-art facilities, or a strong emphasis on both practical skills and business training. Identify the key features and benefits that make your beauty school unique.

Once you have identified your unique selling proposition, it's important to communicate this to potential students and clients. Highlight your unique features and benefits in your marketing materials, website, and advertising campaigns. Show potential students why your beauty school is the best choice for their education and future career.

Tips for determining your unique selling proposition:

  • Research your competition to see what they are offering and how you can differentiate yourself.
  • Survey potential students and salon owners to understand their needs and preferences.
  • Emphasize your school's strengths and the advantages it offers compared to other beauty schools.
  • Consider what problems or pain points your audience is facing and how your beauty school can address them.
  • Showcase your success stories, such as student achievements and job placement rates, to build trust and credibility among potential students and industry professionals.

In conclusion, determining your unique selling proposition is crucial in writing a business plan for a beauty school. It helps you establish a strong position in the market and attract the right students and clients. By highlighting your unique features and benefits, you can effectively differentiate your beauty school from competitors and position it as a top choice in the industry.

Develop A Clear Mission Statement.

A clear mission statement is a fundamental part of any business plan, as it provides a sense of purpose and direction for your beauty school. It defines the essence of your school's values and goals, and serves as a guide for decision-making and strategic planning.

When developing your mission statement, it is important to consider the core values that your beauty school will uphold. Think about the qualities and principles that you want to be known for, such as excellence, professionalism, creativity, and innovation.

Your mission statement should be concise, yet impactful. It should clearly articulate the purpose of your beauty school and the benefits it will provide to students. A well-crafted mission statement should inspire and connect with your target market, and differentiate you from your competitors.

Tips for developing a clear mission statement:

  • Keep it concise: Aim for a mission statement that can be easily understood and remembered.
  • Focus on the benefits: Clearly communicate the value that your beauty school will bring to students.
  • Be unique: Differentiate yourself from other beauty schools by highlighting what makes you special.
  • Involve key stakeholders: Get input from your team members and incorporate their perspectives into the mission statement.
  • Revise and refine: Continuously review and update your mission statement as your beauty school evolves.

By developing a clear mission statement, you can establish a strong foundation for your beauty school and communicate your purpose and values to potential students, staff, and stakeholders. It will guide your decision-making, inspire your team, and help you build a successful and impactful beauty school.

Assess Financial Feasibility

Before proceeding further with your business plan, it is crucial to assess the financial feasibility of your beauty school venture. This step involves evaluating the financial requirements and potential profitability of your business idea.

First, calculate the initial investment needed to launch your beauty school. This includes expenses like lease or purchase of a property, renovation and setup costs, equipment and supplies, licensing and permits, and initial marketing expenses. Take into account any personal savings or investment capital you have available, as well as potential sources of funding such as loans or partnerships.

Next, estimate the ongoing operating costs of your beauty school. This includes expenses like payroll for instructors and staff, utility bills, property maintenance, insurance, marketing and advertising, and administrative expenses. Ensure that you have a clear understanding of these costs and have a realistic plan for resource allocation.

Tip 1: To obtain a more realistic estimate of your financial feasibility, create a detailed budget and forecast the revenue and expenses for at least the first two to three years of operation. Consider consulting with a financial advisor or accountant to ensure accurate calculations.

Tip 2: Research the industry standards for pricing and tuition fees charged by other beauty schools in your area. This will help you determine if your pricing structure aligns with market expectations and if it will be sufficient to cover your expenses and generate profits.

Once you have a clear understanding of the financial requirements and potential profitability of your beauty school, you can make informed decisions about the feasibility of your business idea. This assessment will enable you to refine your business plan and make strategic adjustments if necessary.

Create A Business Structure.

Creating a solid business structure is essential for the success and smooth operation of your beauty school. It involves determining the legal and organizational framework within which your business will function.

The first step in creating a business structure is to decide on the legal structure of your beauty school. You have several options such as sole proprietorship, partnership, corporation, or limited liability company (LLC). Each structure has its own advantages and disadvantages, so it's important to research and choose the one that best fits your specific needs and goals.

Once you have decided on the legal structure, you need to register your business with the appropriate government agencies. This includes obtaining any necessary licenses, permits, and certifications required to operate a beauty school in your area.

Next, you should establish an organizational structure for your beauty school. This involves defining the roles and responsibilities of key personnel, such as directors, instructors, administrative staff, and support staff. Clearly defining these roles will help ensure smooth operations and promote accountability within your organization.

Additionally, developing standard operating procedures (SOPs) and creating policies and guidelines are essential to ensure consistency in the delivery of education and services. Documenting these processes will also be helpful for training new staff and maintaining quality control.

  • Consult with a business attorney or accountant for guidance on choosing the right legal structure for your beauty school.
  • Ensure compliance with local, state, and federal regulations regarding licensing and permits.
  • Develop a comprehensive employee handbook that outlines expectations, policies, and procedures to streamline operations and minimize potential conflicts.

By creating a solid business structure, you are setting a strong foundation for the growth and success of your beauty school. This step will help you establish a clear framework for daily operations, facilitate legal compliance, and enhance the overall effectiveness of your business.

Outline Marketing and Advertising Strategies

Once you have conducted thorough market research, defined your target market, analyzed the competition, identified industry trends, determined your unique selling proposition, developed a clear mission statement, assessed financial feasibility, and created a solid business structure, it's time to outline your marketing and advertising strategies. These strategies will help you effectively promote your beauty school and attract potential students.

1. In-depth online presence: In today's digital age, having a strong online presence is crucial for any business. Create a professional website that showcases your beauty school's programs, facilities, and success stories. Optimize your website with relevant keywords to improve search engine rankings and attract organic traffic. Additionally, establish active social media profiles on platforms such as Facebook, Instagram, and YouTube to engage with your target audience.

2. Utilize targeted advertising: Consider investing in targeted online advertisements to reach individuals who are most likely to be interested in enrolling in a beauty school. Platforms such as Google Ads and Facebook Ads allow you to customize your ad campaigns based on demographics, interests, and search intent. This will help you maximize your advertising budget and increase the chances of attracting qualified leads.

3. Build partnerships: Collaborate with local salons, beauty influencers, and other relevant businesses to build valuable partnerships. Offer joint promotions or cross-promote each other to expand your reach and gain exposure to a wider audience. Additionally, partner with brands and suppliers in the beauty industry who can provide resources and exclusive offers to your students.

4. Host events and workshops: Organize events and workshops targeted towards individuals interested in beauty-related fields. These events can include makeup tutorials, hair styling demonstrations, or guest lectures from industry experts. By providing valuable educational content and networking opportunities, you will create a positive brand image and attract potential students.

  • Offer special discounts or scholarships for early enrolment to incentivize potential students.
  • Create engaging video content showcasing your beauty school and student success stories.
  • Encourage satisfied students to leave positive reviews on platforms such as Google, Yelp, and social media.
  • Attend beauty expos and industry events to network with industry professionals and gain visibility.

By following these outlined marketing and advertising strategies, you will be able to attract the right audience to your beauty school and position yourself as a reputable institution in the industry. Remember to continuously evaluate and adjust your strategies based on the feedback and results you receive to ensure long-term success.

Writing a business plan for a beauty school is a crucial step in ensuring the success and profitability of your venture. By following these 9 steps, you can create a comprehensive plan that covers all the essential aspects of starting and running a beauty school.

Begin by conducting thorough market research to understand the demand for beauty courses and identify your target market. Analyze the competition and industry trends to stay ahead in this dynamic field.

Define your unique selling proposition and develop a clear mission statement that sets your beauty school apart from others. Assess the financial feasibility of your business idea and create a sound business structure.

Lastly, outline effective marketing and advertising strategies to attract potential students and highlight the benefits of your beauty school. Partnering with local salons for internships and job placement opportunities can enhance the value you provide to your students.

By meticulously crafting a business plan using these steps, you will have a solid foundation to launch and grow your beauty school with confidence.

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How to write the business plan for a beauty supply store

beauty supply store business plan

As a beauty supply store owner, having an effective business plan is essential to success.

Whether you are starting up a new business or looking to expand an existing one, writing a comprehensive and well-thought-out business plan can provide the guidance needed for future growth and profitability.

Our in-depth guide provides information on why it is important to write a business plan for your beauty supply store, what needs to be included in the plan, as well as tools that can be used to write it.

Let's get started!

In this guide:

Why write a business plan for a beauty supply store?

Information needed to create a business plan for a beauty supply store, how do i build a financial forecast for a beauty supply store, the written part of a beauty supply store business plan, what tool should i use to write my beauty supply store's business plan.

There are several reasons to write a beauty supply store business plan. Below, we cover some of the most important ones!

To draw up a roadmap

Writing a business plan is an important step in setting up or running any kind of beauty supply business.

It forces entrepreneurs to think ahead and set objectives for the next 3 to 5 years, which is invaluable both for startups and existing businesses.

A well-crafted business plan will provide clarity on what needs to be done to achieve success. Additionally, it can also be used as a tool to measure progress over time and make adjustments when necessary.

To get clarity on your cash flow

A carefully crafted business plan also provides you with an accurate financial forecast with which you can compare your progress regularly.

This is key to ensuring your beauty supply store remains a viable and profitable business.

To secure financing

Securing financing for a beauty supply store can be difficult, which is why having the right business plan is essential.

Investors will want to see that your beauty supply store has the potential for healthy growth, profitability, and cash generation before they invest their money.

A well-crafted business plan will provide them with the confidence they need to invest in your venture.

Carefully research and analyse the beauty supply industry to help build realistic financial projections based on market trends.

Now that we understand the importance of writing a business plan for a beauty supply store, let's look at what information is needed to create such a plan.

Create your beauty supply store business plan online!

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beauty supply store business plan online

Writing a beauty supply store business plan requires researching and projecting a lot of key information. In this section, we cover three key aspects that you should focus on before drafting your plan!

Carrying out market research for a beauty supply store

Carrying out market research is essential when writing a business plan for any beauty supply store.

Market research provides an understanding of the current industry trends and allows you to accurately forecast revenues for your business.

For example, you could survey possible customers in your area and find out what they would be willing to pay for skincare products. Alternatively, you could find out how much other beauty supply stores in the area are charging and base your pricing decisions on that (assuming that you are using a competitive pricing strategy).

This information can then be used to create realistic financial projections that will help secure financing from investors if needed.

Additionally, it can also provide insight into customer needs and preferences which can help inform product offerings and marketing strategies.

Ultimately, carrying out market research before writing a business plan for a beauty supply store is important to ensure success and profitability in the long run.

Developing the marketing plan for a beauty supply store

A marketing plan contains all the necessary information related to the budgeting of sales and marketing expenses, which are actions that need to be taken to reach success.

It requires research on market trends and demographics, careful consideration of budget allocations, and a strategy based on the strengths and weaknesses of the business.

Additionally, having a marketing plan helps you stay organized and focused when it comes to making necessary investments to grow your business.

You need to budget for and allocate the correct amount of investment for each part of your marketing strategy (promotional spending, advertising, etc.).

The staffing and equipment needs of a beauty supply store

Thinking about the equipment and human resources required to deliver your beauty suply store's business plan is a key prerequisite before you can start drafting the document.

You will need to determine how much resources need to be allocated towards recruitment plans (hiring process), staff salaries and other operational costs.

You will also need to assess what investments are required for the store itself (furniture, POS system, etc.) and how much capital these will require.

Once you have the information needed to create a business plan for a beauty supply store, you can start building your financial forecast.

A financial forecast will help determine how much money you need to start and operate your business and how long it will take before it begins turning a profit.

It can also provide insight into any potential risks or investments that may be necessary to ensure success.

A financial forecast includes four key statements: profit and loss, balance sheet, cash flow and a sources and uses table.

The projected P&L statement

The projected P&L statement for a beauty supply store shows how much revenue and profit the store is capable of making and how successful it might be in the future.

Investors will look at this before deciding on whether to invest money or not. They would like to see a reasonable return on their investment within a given period.

example of projected profit and loss statement in a beauty supply store business plan

The projected balance sheet of your beauty supply store

The balance sheet for a beauty supply store is a financial document that shows the total value of an entity's assets and liabilities at a given point in time.

This provides a snapshot of the business's financial health and is useful for lenders, investors, and business owners who want to assess the solvency and liquidity of the store.

example of projected balance sheet in a beauty supply store business plan

The projected cash flow statement

A cash flow statement for a beauty supply store is used to show how much cash the business is generating or consuming.

It shows the amount of money coming into the store and going out, like when you buy supplies or pay staff wages.

Having this information helps you to make sure that your business has enough cash to keep running and can help you anticipate potential seasonal cash shortfalls.

example of projected cash flow statement in a beauty supply store business plan

The initial financing plan

The initial financing plan (also called a sources and uses table) is an important tool when starting a beauty supply store.

It shows where the money needed to set up the store will come from (sources) and how it will be allocated (uses).

Having this plan helps you understand what costs are involved in setting up the store, so you can make sure that everything is taken care of before launching.

example of sources and uses of funds in a beauty supply store business plan

Once the financial forecast of a beauty supply store business plan is reviewed and understood, it is time to focus on the written part of the plan.

The written part of a beauty supply store plan is composed of 7 sections.

We cover each section in detail below.

1. The executive summary

The executive summary of a beauty supply store plan should start with a business overview providing essential information about the type of store, its ownership structure, and any unique products or services that it offers.

Next comes the market overview, which should provide an overview of industry trends, as well as an understanding of the target customer demographics.

Key financials, such as startup costs and projected profits and cash flows should also be included in the executive summary.

Finally, the executive summary should lay out the ask, which is essentially why this business plan will be beneficial and what the business is looking for from potential investors.

2. The presentation of the company

This section should provide important information about the business’s legal entity and ownership structure, such as whether the store is a corporation, limited liability company, or sole proprietorship. Also, mention what percentage of the business each partner owns.

This section should also provide detailed information about where the beauty supply store will be located. This includes a description of the physical location and an overview of the catchment area.

The presentation of the company should also include details about the store’s management team, such as the owners, managers, and key personnel who will be responsible for running the business. Provide an overview of their qualifications and experience related to the beauty supply store’s operations.

3. The products and services section

When writing the products and services section you should provide an accurate description of what your business sells.

For example, do you sell makeup, hair care supplies, nail polish or skincare items? Do you also offer styling services such as haircuts or colour treatments?

Are there any specialities that set your business apart from other stores in the area?

It’s important to provide a comprehensive list so that readers can get an idea of what customers should expect.

business plan products and services: entrepreneur working in a beauty supply store

4. The market analysis

In this section of your beauty supply store's business plan, you should include detailed information about demographics and segmentation, target market, competition, barriers to entry, and regulation.

This will help demonstrate to potential investors or banks that you understand the industry you are entering.

Demographics and segmentation provide insight into who is buying beauty supplies and why. It can also give clues as to which types of products might be most successful in certain areas based on the population’s preferences.

Knowing one’s target market helps ensure that marketing efforts are focused on those most likely to purchase from the store. For example, your beauty supply store could target women aged between 25 and 44.

Additionally, you need to understand both existing competition as well as possibly new entrants into the industry so that you can better position your business against them.

Be sure to research and have in mind any regulations that affect beauty store owners as well as generic regulations that apply to all businesses.

5. The strategy section

The strategy section of a business plan for a beauty supply store should include the following subparts: pricing strategy, marketing plan, milestones, and risks and mitigants.

Outline how your products are priced whilst also mentioning any discounts or promotions that will be available. For example, you could offer 25% off in-store for first-time customers.

It is also important to include a comprehensive marketing plan that outlines the tactics the business will use to acquire and retain customers.

Additionally, milestones should be included that set out achievable goals for the store. Finally, potential risks should be identified and mitigants proposed to mitigate those risks.

6. The operations section

The operations section of a beauty supply store business plan should include comprehensive information about the staff, assets and suppliers.

You should list the roles of staff members and provide an outline of their responsibilities.

Furthermore, it is necessary to articulate a recruitment plan for identifying and hiring new personnel - you might be using a recruitment agency or a list of contacts in your network to do so.

Additionally, information about the store’s opening hours as well as the key assets and intellectual property it needs to operate should be included in the business plan.

Finally, you should mention any suppliers that you plan to work with and explain why you chose that supplier. This should include any competitive advantages that the supplier may bring to the store and how it will add value.

7. The presentation of the financial plan

This is where you will present the financial forecast that we talked about earlier in this guide.

Now that you have a better understanding of what should be included in the content of your beauty supply stores' business plan, it’s time to look at the tools that can help you create one.

Create your beauty supply store plan online!

In this section, we will review three solutions for creating a business plan for your beauty supply store: using Word and Excel, hiring a consultant to write the plan, and using online business planning software.

Create your beauty supply store's business plan using Word or Excel

Using Excel and Word to write the business plan for a beauty supply store can be enticing due to the low cost of these programs.

However, Excel is not the ideal solution for creating a financial forecast. Unless the business owner has expertise in accounting and financial modelling, it can be difficult to create an accurate forecast with minimal mistakes.

Even if the forecast is created correctly, a bank or investor may be sceptical of its accuracy.

Using Word to write a business plan has its own set of drawbacks. It requires starting from a blank page, meaning the business owner must spend time formatting the document once written.

Hire a consultant to write your beauty supply store's business plan

You might feel that outsourcing your beauty supply store business plan to an accountant or consultant is a good idea. They are used to writing business plans and can create sound financial forecasts without errors.

However, most accountants lack specific industry expertise to accurately forecast sales, and consultants may not have the same level of expertise as an entrepreneur who is familiar with their business.

The fees are also generally quite expensive: budget around £1,500 (US$2,000) for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders).

Use an online business plan software for your beauty supply store's business plan

Another alternative is to use online business plan software.

There are several advantages in doing so:

  • You are guided through the writing process by detailed instructions and examples for each part of the plan 
  • You can be inspired by already-written business plan templates and examples
  • You can easily make your financial forecast by letting the software take care of the financial calculations for you
  • You get a professional document, formatted and ready to be sent to your bank or investors
  • You can easily compare your forecast against your accounting data to make sure you are on track to deliver your plan, or make adjustments if needed

If you're interested in using this type of solution, you can try our software for free by signing up here .

We hope that this article has helped you to better understand how to write the business plan for your beauty supply store. Do not hesitate to contact us if you still have questions!

Also on The Business Plan Shop

  • Hair salon business plan template
  • Executive Summary - The most crucial part of your business plan
  • How to do a market analysis for a business plan

Know someone in the beauty supply store industry? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

Published on 20 Jan 2023 , last update on 28 Mar 2023 , as per our editorial standards .

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Cosmetic Business Plan Template & Guidebook

Are you dreaming of opening your own cosmetic business, but feel like you don't know where to begin? With the right guidebook and business plan, you can be well on your way to realizing your goals and making a success out of your venture. The #1 Cosmetic Business Plan Template & Guidebook is an essential tool for any budding entrepreneur or established business owner looking to take their cosmetics business to the next level. With specialized strategies and well-researched advice, this guidebook provides everything you need to know about setting up and growing a profitable cosmetics business.

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  • How to Start a Profitable Cosmetic Business [11+ Steps]
  • 10+ Best & Profitable Cosmetic Business Ideas [2023]

How to Write a Cosmetic Business Plan in 7 Steps:

1. describe the purpose of your cosmetic business..

The first step to writing your business plan is to describe the purpose of your cosmetic business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a cosmetic business:

Our mission is to provide our customers with the highest-quality beauty products and services. We strive to surpass our customer's expectations through a commitment to quality, innovation and exceptional customer service. We will use our expertise in cosmetic science and technology to develop innovative, safe and healthy products that enhance our customer's beauty.

Image of Zenbusiness business formation

2. Products & Services Offered by Your Cosmetic Business.

The next step is to outline your products and services for your cosmetic business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

Image of Zenbusiness business formation

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your cosmetic business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your cosmetic business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your cosmetic business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

Form an LLC in your state!

write a business plan on beauty making

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a cosmetic business?

  • Business license: A business license is required to legally operate a cosmetic business.
  • Product liability insurance: This form of insurance provides coverage for costs associated with product injury, illness, or death caused by a product that was manufactured, sold, or distributed by the business.
  • Business plan: A business plan is essential for any cosmetic business in order to develop a roadmap for achieving success.
  • Work space: Depending on the size and scope of the business, you may need to rent or buy a retail space.
  • Containers: You'll need containers for storing your products, such as bottles and jars.
  • Labeling supplies: You'll need labels and labeling equipment to clearly label your products with name, ingredients, and other relevant information.
  • Packaging materials: You'll need packaging materials such as boxes, bags, and wrapping paper.
  • Raw materials and supplies: Depending on the type of cosmetics being made you will need raw materials such as fragrances, dyes, preservatives, etc.

5. Management & Organization of Your Cosmetic Business.

The second part of your cosmetic business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your cosmetic business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Cosmetic Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a cosmetic business varies based on many different variables, but below are a few different types of startup costs for a cosmetic business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your cosmetic business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your cosmetic business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your cosmetic business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

write a business plan on beauty making

Frequently Asked Questions About Cosmetic Business Plans:

Why do you need a business plan for a cosmetic business.

A business plan for a cosmetic business is essential to help you create a roadmap for your venture, set realistic goals and expectations, identify potential challenges and opportunities, and secure financing. A detailed business plan will also enable you to create an effective marketing strategy, determine pricing structures, anticipate cash flow needs, and create a detailed budget. Additionally, it will help ensure that you have the necessary resources in place to maintain and grow your cosmetic business over the long term.

Who should you ask for help with your cosmetic business plan?

It is advisable to consult with a business consultant or a financial advisor who has experience in writing business plans for the cosmetics industry. Additionally, you can find information and resources online to help guide you through the process of creating a business plan.

Can you write a cosmetic business plan yourself?

Yes, it is possible to write a cosmetic business plan yourself. You will need to research the industry, develop a business model, and outline your financial goals. Additionally, you will need to create a marketing plan, determine pricing and production methods, and consider other factors such as competition. Finally, you will need to write up the plan and make sure it is coherent and convincing.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Small Business Trends

How to create a farm business plan.

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Crafting a comprehensive farm business plan is a crucial step towards transforming your agricultural visions into tangible realities. This plan serves as a blueprint, enabling you to formally articulate your thoughts, ideas, and aspirations. Engaging in this process can lead to profound insights, illuminating the path to a thriving agricultural enterprise.

Even though the term ‘farm business plan’ might evoke a sense of formal rigidity, it’s important to remember that this document is, in fact, a living, evolving entity. Just like a seedling that sprouts, grows, and changes with the seasons, your business plan is not meant to be static.

It’s something you nurture, revise, and expand as circumstances dictate and as your farm business matures. Feeling pressure to perfect your business plan from the outset could be paralyzing. Instead, we suggest you view this document as a foundation that can be continuously built upon.

farm business plan

To get you started, we offer a detailed farm business plan template. This invaluable resource can be tailored and expanded to suit your unique agricultural venture, whether you’re cultivating a sprawling wheat field or nurturing a boutique organic herb garden.

The most effective business plans are those that exhibit flexibility and resilience, characteristics that are at the heart of any successful farm business. Agriculture, by its very nature, is a domain subject to the whims of Mother Nature. From unpredictable weather patterns to seasonal variations, farmers of all kinds grapple with an array of external factors.

Therefore, your farm business plan should not only anticipate these challenges but also prescribe adaptive measures to navigate through them. It’s this inherent adaptability that transforms a good farm business plan into a great one.

Small Business Deals

Writing a farm business plan template: 15+ things entrepreneurs should include.

farm business plan

A farm business plan, like any strategic document, should be comprehensive, encompassing all aspects of your operation, be it agricultural (crops) or product-based. Utilize these 15 key sections to shape your farm business plan template.

Do bear in mind that while these sections are integral, they are by no means exhaustive. Your farm business plan may necessitate additional topics based on your specific farming operations.

Creating a robust business plan is of paramount importance, whether you’re kickstarting a farm venture or acquiring an existing one. Our farm business plan template starts off with an executive summary.

Executive Summary

The executive summary provides an essential overview of your farm business. It helps to streamline communication and understanding between various stakeholders, such as internal team members, potential lenders, business partners, and customers. When drafting your executive summary, consider the following key components:

  • Business Profile : Provide a snapshot of your farm business, describing its nature and scope. Are you into crop cultivation, livestock rearing, or any specialized farming practices?
  • Products : Clearly outline what product or products your farm will produce. These could range from dairy products to specific crops or even services like agrotourism.
  • Production Methodology : Describe how you plan to achieve your production goals. This could involve discussing your farming techniques, usage of technology, or unique methodologies.
  • Target Audience : Identify the individuals or groups who will be interested in your farm products or services. These might be local consumers, restaurants, farmers’ markets, or even online customers.
  • Key Strategies : Highlight the strategies you plan to implement to run and grow your business. This could cover marketing techniques, sustainability practices, or partnerships.
  • Mission and Vision : Briefly outline the mission and vision of your farm business. This helps to convey your long-term objectives and core values.

Remember, your executive summary is essentially the first impression of your business plan. Making it comprehensive, clear, and compelling will help attract interest and support from stakeholders.

Goals and Objectives

A well-crafted business plan should encapsulate both personal and economic goals and objectives. Many successful farm business plans also address environmental stewardship and community outreach. You may want to include goals around preserving farm resources for future generations, ensuring that both the operational and stewardship aspects remain within the family.

Introduction

Your introduction should provide information about the business owners, including their backgrounds and levels of industry experience.

Mission Statement and Values of Your Farming Business Plan

write a business plan on beauty making

This section enables you to express the core values that led you to the farming business, whether it’s an urban farming venture or a homemade product-based farm. Your mission statement should reflect these values. Sustainable practices and conservation are often key motivations that draw people to farming, so don’t be shy to share your commitment to such principles.

Industry History

Understanding your place within the wider agricultural landscape is key. Be sure to research farms that have historically dominated your region, whether they specialize in vineyards, urban farming, or livestock rearing. Use this research to make educated projections about the future.

Company Background and History

Share the history of your farm if it has been a long-standing family venture or the journey leading up to your purchase if it wasn’t. If your farm business is a startup, focus on the business experience and backgrounds of the involved parties.

Competitor Analysis

Understanding your competition is crucial. In the agricultural sector, farmers often share resources, such as a high-tech corn planter , or cooperate in marketing endeavors. Factor in such synergies when analyzing competitors.

Target Market

Clearly define your target market. This can include area groceries, farmers’ markets, or online customers. If you’ll be relying on online sales, ensure your website is professionally designed, keyword optimized, and easily discoverable.

Products and Services

Describe each product or service offered by your farm, highlighting those features most appealing to your target market.

Organization, Human Resources, and Management Plans

These interconnected elements cover your farm’s day-to-day operations, employee roles and responsibilities (including their job descriptions ), and overarching management plans.

SWOT Analysis

Conduct a SWOT analysis to identify your farm’s strengths, weaknesses, opportunities, and threats. This will help you strategize on how to leverage your strengths, mitigate your weaknesses, exploit opportunities, and neutralize threats.

Your vision is the roadmap for your farm’s future. It should express not just your financial aspirations but also your plans for the farm operation in the long run.

Growth Strategy

A comprehensive growth strategy should outline your plans for debt reduction, savings, and business expansion. Keeping detailed farm production records is key to evaluating the effectiveness of your growth strategy.

Financial Plan

Your financial plan should include elements like balance sheets, income statements, projected cash flows, loan repayment schedules, and depreciation factors.

Marketing Strategy

A robust marketing strategy is essential for your farm’s success. Look into brochures, advertisements, and joining co-op groups. Resources from institutions like the University of Minnesota and Cornell University offer comprehensive insights into effective marketing strategies for farm businesses.

Establishing a Farming Business Entity

Discuss the legal structure of your farm business. Will it be a sole proprietorship, a partnership, an LLC, or a corporation? Outline the pros and cons of each and why the chosen structure is the best fit for your farm business.

Detailed Description of Farm Operations

Include a section that provides an in-depth look at your day-to-day farm operations. This can cover everything from crop rotation plans, livestock breeding programs, to the use of technology and machinery in your farming activities.

Risk Management Strategies

Address potential risks and challenges your farm might face, such as natural disasters, market fluctuations, or pest infestations. Discuss the strategies you plan to implement to mitigate these risks, like insurance coverage, diversification, and emergency response plans.

Sustainability and Environmental Impact

Highlight your farm’s approach to sustainability and its impact on the environment. Discuss practices like organic farming, conservation techniques, and renewable energy usage, which demonstrate your commitment to environmental stewardship.

Community Involvement and Social Responsibility

Describe how your farm business plans to engage with and contribute to the local community. This could include hosting educational farm tours, participating in farmers’ markets, or supporting local food programs.

Supply Chain and Vendor Relationships

Detail your farm’s supply chain and vendor relationships. Explain how you plan to source inputs like seeds, feed, or equipment, and any partnerships with local suppliers or distributors.

Technology and Innovation

Discuss the role of technology and innovation in your farm business. This could include the use of precision agriculture, innovative irrigation systems, or the adoption of farm management software to enhance efficiency and productivity.

Training and Development Plans

Explain how you intend to train and develop your staff. Include plans for ongoing education, skill development, and potentially, leadership training for future farm managers.

Expansion and Diversification

Outline your long-term plans for expansion and diversification. This could involve adding new crops, branching into agrotourism, or exploring value-added products like farm-produced jams or cheeses.

Exit Strategy

Consider including an exit strategy for your farming business. This could be a plan for succession, selling the business, or transitioning to a different type of agricultural operation.

Wrap up your business plan with a conclusion that reiterates your farm’s core mission and vision, and express your enthusiasm and commitment to making your farm business a success.

Frequently Asked Questions

Include a FAQ section at the end of your business plan to address common questions potential investors or partners may have about your farm business. This can include queries about your business model, funding needs, or market potential.

Provide an addendum for additional documents that support your business plan. This can include resumes of key team members, detailed financial projections, market research data, or letters of support from future customers or partners.

Do I Need a Business Plan for My Farm?

Even if you’re knee-deep in the dirt, tending to your crops or livestock, every farming enterprise has the core elements of a business at its heart. These include aspects such as operations, marketing, human resources, and finances. When you embark on developing a farm business plan, it might astonish you to see where the journey takes you. You could end up discovering facets of your farm business that you hadn’t previously considered.

One of the many advantages of constructing your business plan is the opportunity it affords to involve others. Employees, family members, even your loyal farm dog might have innovative small farm business ideas that could significantly enhance your farm’s productivity and marketability. A different perspective can often yield solutions for issues you might not have even been aware of. Therefore, encourage an open exchange of thoughts and ideas. Who knows, the next great idea could be lying right under your hay bale!

write a business plan on beauty making

More than just a document outlining your farm’s structure, your farm business plan should serve as a valuable decision-making tool. With it, you can confidently navigate the varied terrain of farm management, from daily operations to larger strategic initiatives. When you’ve got a meticulously crafted, robust farm business plan, it doesn’t just narrate your farm’s story, but also provides you with a roadmap to future growth and success.

Beyond this, a top-notch farm business plan can also be a lever that helps you access critical financing. Lenders and investors are more likely to support your venture when they see a well-structured, thoughtful business plan that articulates your vision, illustrates your understanding of the market, and demonstrates your commitment to fiscal responsibility.

So, where to begin? Let’s dive into our fundamental guide to crafting a farm business plan using our adaptable template. This resource has been designed to help you capture every aspect of your agricultural venture, laying a strong foundation for a bountiful future.

How Do I Write a Small Farm Business Plan?

write a business plan on beauty making

Don’t sit down to write the whole thing. Chip away, one section at a time. Keep in mind that the plan doesn’t have to be the definitive last word. You can make adaptations.

How do you start a farm business plan?

Start with one piece of the business plan. One of the hardest sections of a business plan to write is the Mission Statement . If you get bogged down there, continue and come back to it later.

How much do farm owners make a year?

As you can imagine, the net income varies greatly by type of farm business.

The bottom line after expenses may not be high. Farmers need to consider net worth as assets grow and the farm property increases in value.

How much does it cost to start a small farm?

Getting set up to raise 100 beef cattle costs lots more than getting set up to raise 100 rabbits.

Things like property acquisition, soil preparation, equipment and machinery and the key costs. Other costs may be i rrigation systems , packaging and trucking.

What is the most profitable farming business?

Poultry farming is currently the most profitable – and common – farm business in the world. It includes chicken, turkey, quail, ducks and goose, that are being raised for meat or eggs.

It’s also one of the most expensive businesses to start, requiring significant capital investment. The industry is very labor-intensive and labor costs are high.

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write a business plan on beauty making

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IMAGES

  1. Hair and Beauty Salon Sample Business Plan

    write a business plan on beauty making

  2. One Page Day Beauty Spa Business Plan Presentation Report Infographic

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  3. The Business Plan for Your Beauty Salon

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  4. Business Plan For Beauty Salon Ppt

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  5. Free Beauty Salon Business Plan Template

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  6. Conclusion Beauty Salon Business Plan

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VIDEO

  1. Beauty Salon Business Plan

  2. How to Write a Business Plan Step by Step l INTRODUCTION TO BUSINESS PLAN WRITING

  3. Here's a Business Plan Summary Outline You Can Use in Your Small Business #businessplan

  4. 5 steps in writing a business plan

  5. Tips to create a successful business

  6. How to Write Restaurant Business Plan in Hindi

COMMENTS

  1. How to Write a Beauty Products Business Plan

    Step 1: Why your beauty business needs a plan The first step is to set yourself a challenge: ask yourself why you are writing a business plan in the first place. There is no point in going through the motions of writing a beauty product business plan. You need to buy into the very concept of business planning.

  2. How to Write a Beauty Salon Business Plan: Complete Guide

    How to Write a Beauty Salon Business Plan: Complete Guide Jennifer December 29, 2023 Beauty & Wellness Whether you're looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your beauty salon, you will need to prepare a solid business plan.

  3. Beauty Salon Business Plan Template & Guide [Updated 2024]

    If you want to start a beauty salon business or expand your current one, you need a business plan. Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their beauty salons.

  4. Cosmetic Business Plan Template & How-To Guide [Updated 2024]

    Next, provide an overview of each of the subsequent sections of your plan. Give a brief overview of the cosmetic industry. Discuss the type of cosmetic business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing strategy.

  5. Free Hair and Beauty Salon Sample Business Plan PDF

    The 7 elements of an effective hair and beauty salon business plan. 1. Executive Summary. The executive summary provides a high-level overview of your business plan. It should outline the objectives of your hair and beauty salon, such as to offer high-quality services, to expand the client base, or to break into a new market.

  6. How To Write the Perfect Salon Business Plan in 7 Simple Steps

    Here we've broken down the entire process into 7 easy-to-follow, foolproof steps, along with their templates, to help you create a successful salon business plan. Write a mission and vision statement. Create an executive summary. Analyze and identify your target market. Perform a competitor analysis.

  7. How To Create a Successful Salon Business Plan

    1. Create your mission and vision statement First things first — what are you planning to do with your new salon business? To answer this question, you'll need to put some serious thought into your mission and vision statements. These statements articulate the purpose and goals of your salon and will guide the rest of your business plan.

  8. How to Write a Hair Salon Business Plan: Complete Guide

    Hair Salon 5-Year Financial Projections. In addition to startup costs, you will now need to build a solid 5-year financial model as part of your business plan for your hair salon. Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

  9. How to Write a Successful Beauty Salon Business Plan

    Your plan should identify the best way to attract customers to the salon. Here are some strategies that you might consider: a referral program which rewards customers or other businesses who recommend your salon. paid advertising in local press. street signage. promotional discounts for new customers.

  10. How To Write A Beauty Business Plan + Template

    Writing an Effective Beauty Business Plan. The following are the key components of a successful beauty business plan:. Executive Summary. The executive summary of a beauty business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  11. How to Create an Effective Beauty Salon Business Plan

    July 5, 2023 For Salon Owners How to Create an Effective Beauty Salon Business Plan The beauty salon business plan is like your secret weapon for effective management and planning. It's the ultimate tool that helps you and your team develop smart strategies and stay on top of things.

  12. An Effective Beauty Business Plan Sample

    A Beauty Business Plan is a document that outlines the financials, operations, and services of a beauty salon. It typically covers topics like setting up shop, marketing and advertising strategies, cost-cutting measures, clientele assessment, and potential profits. The plan also helps to create a roadmap for owners, guiding them in making ...

  13. Tips on How to Write Your Salon & Spa Business Plan

    A well-crafted company description and history form the foundation of a strong business plan in the salon and spa industry. 3. Prepare a Marketing Plan and Analysis. This step involves identifying the target market, understanding their needs and preferences, and developing marketing strategies to reach and attract them.

  14. How to write a business plan for a beauty salon?

    Why write a business plan for a beauty salon? What information is needed to create a business plan for a beauty salon? What goes in the financial forecast for a beauty salon? What goes in the written part of a beauty salon business plan? What tool can I use to write my beauty salon business plan?

  15. Beauty Salon Business Plan Template (2024)

    Below is a salon business plan example to help you create your own beauty salon business plan. Executive Summary Business Overview 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.

  16. How to write a beauty salon business plan

    Description of business. The first section of your business plan should centre around describing your business. Explain what your idea is and what you are going to provide. This section is an opportunity to pitch your business, so make it as exciting as you can. If you can detail your services, mention why they may be better than at other salons.

  17. Creating a Winning Business Plan for the Beauty Industry

    Creating a successful business plan is essential for any business in the beauty industry to succeed. This article will cover topics such as creating a sustainable e-commerce business model, writing a business plan for a restaurant, writing a business plan for fashion industry success, developing a comprehensive business plan for a fitness center, and strategies for crafting a winning interior ...

  18. Template for writing a business plan for a beauty salon

    05.06.2021 Business tips Writing a business plan for a beauty salon Business Tips Table of Contents Overview of your business In this part, include: Management and organisation of your business In this part, include: Definition of your beauty services In this part, include: Marketing plan In this part, include: Operational plan

  19. How To Write a Business Plan for Beauty Product Production in 9 Steps

    So how can you write a successful business plan for your beauty product production venture? We've got you covered with this comprehensive 9-step checklist. By following these steps, you can ensure that your business plan is well-structured and covers all the essential aspects of your beauty product production business.

  20. A step-by-step guide on how to start a beauty business

    01. Research and define your niche. Let's start with the basics. To establish a beauty brand, it's crucial to understand your target audience. Researching and defining your niche or specific beauty business idea will set you up for success by differentiating you from competitors and attracting your target audience.

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    Your mission statement should clearly outline your beauty school's values, goals, and commitment to excellence. It serves as a guiding force for your business and resonates with your target market, attracting students who align with your vision. Ensuring financial feasibility is essential for the long-term success of your beauty school.

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