Hair Salon Business Plan

Business Plan Articles

If you are starting a hair salon, it is likely that you will require a business plan at some point. The experts at Pro Business Plans have helped dozens of salons across the United States to start and grow with a professional salon business plan. This article is designed to provide information on what is included in a quality hair salon business plan and how it is typically structured.

hair salon business plan

Hair Salon Business Plan

There are many things to consider when creating a new hair salon including the location of operations, extent of services provided, culture created at the salon, and pricing structure. A high end boutique style salon in an urban area is strikingly different than a low budget franchise salon in a working class residential area. Both hair salons can be equally profitable, but investors will want to understand the unique positioning of your salon and how it compares to others within a proximity of competition. The following sections will outline each component of the hair salon business plan and how they combine to build a strong investment case.


Business Model

The business model section of a hair salon business plan is designed to communicate what your company does to generate a profit and how it will outperform its regional competition. This may appear relatively universal for all hair salons; however, it is in fact not so easy to form a generalization. For instance, some salons may charge very high prices for a premium service in a high end location. Others may focus on high volume turnover with discounts with the hopes to franchise out in the future. Some salons may provide a very limited amount of hair treatments, whereas others provide a vast amount of services that may include spa treatments or other beauty services.

Marketing Plan

The marketing section generally consists of two separate elements in a salon business plan including the market-entry strategy and the ongoing promotional strategy. The initial launch will consist of several unique factors to create initial market awareness at a low cost inclusive of public relations, mass media promotions, initial sales discounts, and setting up your online presence. The ongoing strategy within the marketing plan includes a perpetuated marketing campaign across social media, paid promotions, and customer loyalty. Retaining walk-ins and first time customers is a critical success factor to most salons since it is geographically limited to its individual brick & mortar location.

Financial Projections

If you are using your salon business plan to acquire investment capital , it is likely that investors will request to see three to five years of projections. These are typically included in the form of an income statement, balance sheet, cash flow forecasts, and profit/loss statement. Investors will use these documents to forecast the profitability and assess the risk of your company relative to others in the market. The most effective method of preparing the financial projections for a hair salon is to base them off prior operating history. If this is your first time in the market, your forecasts will be structured based on similar hair salons operating in the market.

What is Included in Our Custom Hair Salon Business Plan?

  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

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