Salon and other businesses that revolve around beauty are a huge venture in the United States. For instance, the average hair salon revenue in the country is $245,000.
Also, the industry is said to generate annual revenue of $63 billion USD, a report by thesalonbusiness.com says. Similarly, zippia data shows that the State of Washington is the highest-paying salary for stylists.
With these, if you are a trained hairstylist with the right skills to make people look good via quality hair care, there is a huge market for you in the industry.
Whether you are planning to render a home service or rent a shop and hire qualified hairstylists to run your salon, this article explores six cardinal points to include when writing hairdressing salong business plan.
You need a roadmap of business direction which would also guide your growth and ensure you properly maximize revenue for your business.
Key points to include in the hairdressing salon business plan
As a professional stylist, you might be familiar with a business plan. As a new entrant into the business, it is very necessary to see to it that your plan contains these integral sections:
Executive Summary
Every real business plan must have what is called an executive summary. This is usually what your business plan starts with. It appears at the beginning of the document. The executive summary is a quick one-page introduction to the company.
When crafting the executive summary, make sure to add what makes your business unique from the rest of the pack.
The executive summary is the first thing the reader comes across when checking out your business plan. A properly written one will create a good impression.
It may make or mar the rest of the business plan, as such, make it captivating, it must be a bang that will spur the investor or partner to want to read the rest of the document.
Also, your executive summary should contain great details about your hair salon, where you spell out your general services, your marketing plans, and even those that will work with you. You can also decide to input your mission statement here.
Business description
While writing a description for your hair salon business, you should start with an introduction that captures important details revolving around your location as well as any specialized services your business will offer.
In this section, you can talk about this:
The Management Team
If you have a team, it is necessary to introduce each of them as well as their expertise. In all you do, it should be glaring that you guys have what it takes to run a successful salon
The Legal Structure in Place
A serious business must have a legal business structure in place, and this must be well explained in the business plan. And if you’re partnering with a law firm, it should be stated.
Hiring plan
Give a good explanation of how you will bring in other talents to ensure the success of your enterprise.
Even if you are starting alone, you will have to employ more experts as the business is growing. You can also talk about the method of compensation for your employees.
Value Proposition
There are so many hair salons around, and more will still come. Therefore, it is necessary to clarify your competitive advantage.
What edge do you have over the rest that will make clients prioritize your salon? These things should be carefully indicated.
Services And Products
Highlight each of your services, and see to it that under each of them you write a description that should list prices, as well as other details such as the duration it will take to complete each one of them.
Additionally, you should list out the products you sell plus their prices. You should also include the profits to be expected from sales of each of the products.
Market Analysis
One of the core preparations you must carry out before starting your hair salon business is to conduct thorough market research. This can determine a whole lot of things revolving around your success or otherwise.
Try to realize market trends (particularly in the area you will be operating), and get them adequately captured in the plan. What hairdressing services are now in great demand in the industry?
The market analysis section of your business plan should also capture client demographics. What gender usually visit hair salon? How much are they willing to spend on services and products whenever they come around?
You should additionally identify competitors as well as their target audiences, and understand their strengths and weaknesses.
These details will prove very helpful in directing what your focus should be, and you will have an edge over several others.
In your business plan, make sure your target market is very defined, and highlight how you plan to overcome any challenging market issues.
Marketing Strategy
You should be very strategic about this since it can determine the level of success you will record when you eventually kick start your hair salon business.
While you are expected to do a very broad brainstorming to touch your marketing strategy, you won’t have to include all your marketing plans in your business plan.
This section aims to prove to any investor or lender that you have done your homework dutifully, and that you know what you want.
Therefore, this part should contain the specific strategies you are to utilize to reach your target market. You can give an overview of the manner plan to use each of the marketing channels at your disposal (such as social media, email, etc).
It is also important to add your marketing and advertising budget in this section, including the expected returns. The aim is to prove that all you will spend won’t become a waste.
Financial Plan
One of the core things that will influence the growth of your hair salon business is how well you can budget and plan for your financial future. These are integral things you should highlight in this section of your business plan:
Startup costs
Even if you intend to start very small, you will still have to spend some resources to kick-start your hair salon business. Hence, you should highlight all the expected startup expenses (such as inventory, cost of business registration, etc).
Operational costs
This denotes ongoing expenses required to keep the business running after starting. These will include likes of wages, rent, and so on. Experts have advised that you include a budget for miscellaneous expenses too, just in case something comes up unexpectedly.
Financial projections
You can get the services of an accountant to craft five-year financial projections for the business, and include them in this final section.
One of the reasons we could recommend that you work with an expert is that investors and lenders usually pay great attention to this spot when you go to them. This is because they want to see how quickly the business can grow as well as how likely it will survive.
Final Thought:
There are a lot of benefits attached to having a formidable business plan for your hairdressing salon. It doesn’t matter if you are just starting out or if you are already established, you should have a strong plan that will be a roadmap for your growth.
A Salon business plan will be beneficial for business loans and getting resources from investors.
Reference:
- John Hallberg. “Is Owning a Hair Salon Profitable?”. thesalonbusiness.com
- Featured image by Delbeautybox