start up salon business plan

Free Hair and Beauty Salon Sample Business Plan PDF

Elon Glucklich

6 min. read

Updated February 7, 2024

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.

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• 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.

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.

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 Open a Salon in 2024 (Checklist & PDF)

Are you planning on opening a salon?

That’s awesome!

What will it be? A hair salon, nail salon, barbershop, or maybe a full-service beauty salon or spa?

I’m so happy that you landed on this article.

This is going to be an important read for you.

If you’re looking for a checklist on how to start a salon business, you’re exactly where you need to be.

The salon industry is on the rise. People are spending more and more on beauty, and it’s never been a better time to start a salon.

But let’s talk straight here.

Many salon businesses still fail.

The main reason salon startups fail is not because of a lack of money or poor services.

It’s because of poor planning.

This is why this article is so important to you.

This is why TheSalonBusiness.com and all the resources I publish here even exist.

Today, you’ll get a complete “opening a salon checklist” with all requirements for opening a salon.

If you’re on a tight budget, I’ll even show you how to open a salon with no money.

It’s quite a long article. But it’s probably the best investment of time you can make today.

Pin it to your Pinterest board or bookmark the page to return to it later.

Are you ready to realize your dream?

Let’s go through how to start a salon business.

↓ Pin it for Later ↓

Hear how My Erlandsson Started her Salon Business and Opened her Two Hair Salons

We’ll soon dive into the checklist, but if you want to hear the full story of that experience, watch the video below, where I interview My about how she went from idea to building two thriving hair salons.

How to Open a Salon?

I strongly recommend following 29 actions when opening a hair or beauty salon. The table below is an opening-a-salon checklist you can follow to ensure you cover all you need to do. I will go into each one in detail in this article.

These actions are relevant regardless of whether you plan to start a hair salon, nail salon, barbershop, tanning salon, beauty salon, or spa.

Before we dive into each item on the opening a salon checklist, I wanted to tackle the question I often get: How much does it cost to open a salon, and can I open a salon without money? 

Get Your Mind Ready to Start a Salon Business

You’re embarking on an exciting journey.

However, opening a salon is not always fun and easy. It comes with responsibility and hard work, which can sometimes be challenging. 

This is why the first part of the salon checklist for opening is focused on how to prepare yourself. 

1. Build Your Salon Business Knowledge & Experience

Maybe you’re currently employed in a salon. Or you’re still in school.

Independently on where you are, your focus needs to be on learning the art of running a salon business now.

Obsess about learning.

The more you learn, the more you earn when running your business.

Getting a Cosmetology or Beautician’s degree is just the start. Most schools don’t cover the business side of things as well as they should. That’s why I created this blog in the first place. 

And the beauty is that there are so many places to learn today. Just the fact that you’re reading this post right now tells me that I don’t need to convince you about that 🙂

You’ll need a mix of both practical experience and theoretical knowledge.

Gain Practical Salon Business Experience

Getting some practical experience before you start your own salon can save you a lot of expensive mistakes later.

So, if you’re not already working in a salon, get a part-time job after school (or wherever you spend your days). Get out there. Listen to what people ask for. Get a feel for how the salon business works.

You can learn tons from being in a salon and looking at what’s happening there. And now that you know you’ll be starting a salon yourself, you’ll observe the world through a different lens and see things other people not planning to start a salon will see.

Learn the World of Business

You can subscribe to blogs, YouTube videos, podcasts, etc. for free. Well, I don’t need to tell you that since you’re reading this now.

I publish many free blog posts, videos, and courses to support you.

Here are a few resources I recommend you start with:

• Download my PDF guide to building a thriving salon business
• Sign-up for any upcoming live trainings
• Subscribe to my YouTube channel

That’s probably enough for you to start with 🙂

2. Get a Salon Mentor

You’re not the first one to start a salon.

Many people have gone through the same journey. So why not learn from them?

A mentor is someone you can meet regularly to discuss the challenges and ideas for your new business. Someone with the experience to guide you and give you perspective on what you’re going through.

I would never have been where I am today without my mentors and I strongly recommend that you look in your network if you know someone with the right experience you can reach out to.  

3. Articulate a Vision for Your Beauty Business 

You cannot build a house without having a clear vision and drawing of what it should look like.

I’m sure you’ll agree that starting to build a house without a vision and plan will result in a strange and random structure that will probably never be finished.

The same goes for your salon business.

All things are created twice; First mentally; then physically. The key to creativity is to begin with the end in mind, with a vision and a blue print of the desired result. Stephen R. Covey

To get at least close to your new salon, you need to have a clear and vivid picture of it. Try to really envision what it will be like when you’ve opened the doors. 

What type of clients will you meet in your salon?

What will the salon interior look like?

Will you have staff working for you? If so, what will they be like?

You don’t need to get rational here. Don’t start writing bullet-point lists of everything you’ll have. Instead, picture yourself visually in your salon. Try to feel now what feeling you’ll have when you’re there. 

This might sound fluffy, but it is proven that having a clear and vivid picture of your future significantly increases your chances that this is how your salon will end up.

4. Decide the Type of Beauty Business to Start

I’m sure you already know if you want to start a hair salon, nail salon, barbershop, beauty salon, spa or something else.

But there are many different types of salons you can start. 

Salon Business Types

These are some of the common types of salon models that you should consider when starting your salon business, and there are also variations to each model that you’ll discover.

Try to determine which model resonates best with your budget, risk acceptance, and desire for freedom.  

5. Define who your Ideal Salon Client Is

Starting your own salon business means you’re the boss – right?

Well, yes and no..

In fact, it’s more as if you just got a new boss..

You might know her, she’s called your client 🙂

So who do you want as your boss?

Your salon exists to serve your clients. If you serve your clients well, you’ll also be rewarded. But all people do not want the same thing. Some have a limited budget, some value going to a known salon name, some want a pampering experience, and some have limited time and a fast service.

This is why deciding who your ideal client is is important now. This way, you can design everything about your new salon to speak to her. 

Because you cannot be attractive to everyone.

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

Get as clear as possible about who your ideal salon client is. Picture her in front of you.

I want you to see her.

She can be someone you already know or a fictive character you just make up. It doesn’t matter. What matters is that you have a vivid picture of who she is, what she likes, and what problems she has. The persona is someone you should have in your head as you make thousands of big and small decisions about your business over the coming months and years. 

There are a few questions you can ask yourself as you define who your ideal salon client is.

Who do you want in your Salon?

This is maybe the most important one. You’re going to spend a lot of time with your client, so it better be someone who you actually want in your salon. Otherwise, it will be difficult to serve her well in the long run.

How Big is the Market?

It’s good to get detailed in your definition of your ideal client. The more specific you are, the more she will feel like your salon is exactly for her. But at the same time, you need to make sure there are actually sufficient people in the area who fit the description of your ideal salon client, or you may be niching down your salon too much.

You’ll learn more about how to define your salon’s target market as you create your salon business plan .

How Profitable can you Make the Target Salon Client?

You can make most salon clients profitable. However, your choice of salon client will influence your salon’s business model . For example, you can go after the cost-conscious client with low prices and make that profitable. However, your operations will need to follow. This means shorter appointments, basic services, and less attractive salon locations. This is why you need to have the overall salon vision in mind when choosing the client to go after.

Does she have a Problem you can Solve?

Finally, you should think about how you deliver value to the target client. And you do that by solving her problems. 

Understand what her problem is and how you can solve it. Your solution will often be part of the salon services you offer, but it can also be how you offer them, such as attractive prices, a rich experience, or convenience.

6. Study Your Competition

Competition is a good thing.

You shouldn’t be scared just because you see other beauty salons in the area.

The opposite actually.

I would get more suspicious if there weren’t any other salons in the area as this may be a signal that there’s no need for one. 

The fact that there’s competition proves there’s a market.

But you should stay close to the competition, understand what they are doing, and what’s working and not working for them. This way, you can avoid making expensive mistakes yourself. Coming in later to a market gives you an advantage. You have fresh eyes while they are, in many cases, locked into how to do things, making it more difficult for them to be innovative and come with new thinking. This is what you will do, giving you an edge over them.

But how should you study your competition? 

Do a Google Search

One of the most common ways that people will find your salon is via search. Having your salon showing up at the top of the search result page will be crucial for your success. So you should check out who owns that space in your area and study that salon.

Have a Coffee Outside the Salon Near You

Just spending a few hours looking at their clientele, how they meet their clients, and what they offer can give you insight into their salon’s positioning and clientele.

Follow them on Social Media

Like with search, social media is an important marketing channel for salons . You want to see how they use it and if they have an engaged following. Following them will also give you more insight into what they are doing in the salon and any salon promotions they are currently running.

Browse Other Salon’s Websites

You must go over the websites of all salons in your area. Here you can make note of salon services offered and their pricing . Note all this information down in a spreadsheet or document as you’ll need it when you’re designing your salon offer . 

But you shouldn’t only look at salons in your area. In the end, you want to be different from them. Spend some time also going over other salons’ websites and make notes about their salon branding, marketing, price list, and offer. To help you with this, I’ve pulled together a long list of nail salon websites, hair salon websites, and beauty salon websites here . 

Keep your friends close, but your enemies closer. Mario Puzo

Create your Blue Ocean

The competing salons in your area will influence how big share of the market you can get. This is something we’ll go into in more depth as we start writing your salon business plan .

However, the size of the market is not definite. You can make the market bigger. When you know what competition is up to, you can focus on how you can be different to them. And how you can add additional revenue streams to your salon that they don’t have. 

You can create a Blue Ocean to compete in.

The concept of Blue Ocean Strategy was coined by W. Chan Kim & Renée Mauborgne in their book with the same name . In the book, they make the distinction between a red ocean and a blue ocean, where the red ocean is where traditional businesses compete for market shares. Businesses with a blue ocean strategy go and increase the size of the market by being different from the other.

I recommend you look at competition with that lens.Think about how you can make the market bigger rather than just eating share from your competitors. 

Plan and Setup Your Salon Business

It’s time to build the platform on which you’ll launch your salon business. In the coming steps, you’ll create your business plan and complete all the requirements when opening a salon.

7. Start Drafting Your Salon Business Plan

Opening a salon is a big project.

And the journey to getting there can seem overwhelming in the beginning. Where do I start and what do I do next?

You need a plan.

And I suggest you start drafting one already now. It doesn’t need to be perfect from start. But it will help you ask the right questions when you move forward with your salon business setup.

Let’s cover an overview of the key components of your business plan.

What is a Salon Business Plan?

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

Why do You Need a Salon Business Plan?

The primary reason you need a salon business plan is for you to get in control of your beauty business and to enable the right decisions up front.

A well laid out plan gives you a clear path to follow as you set out while it also helps spot weaknesses in your salon business early. You also need a salon business plan to communicate with others.

If you need to raise money, the bank or investor will want to see your salon business plan before issuing any funds.

Tracking your Progress

Any plan you build is useless unless you’re able to measure and track how you’re living up to the plan. To enable this, you need to get a salon software with strong reporting capabilities that allow you to understand the numbers.

The tool I use and recommend is Mangomint . Not only because of all the powerful reporting features (as shown in the video below), but because it’s simply a pleasure for you, your team, and your clients to use.

What Should a Salon Business Plan Include?

To learn more about all the parts you need when creating your salon business plan, I’ve put together a step-by-step salon business plan guide here .

8. Define Your Salon Start-up Budget

One of the biggest worries for new salon owners is money.

You likely have bills to pay mouths to feed. And it’s hard to predict exactly how much your salon business will generate when.

But you can mitigate this stress through proper budget planning. 

How to Create a Salon Budget

The easiest way to plan out your salon expenses is to create an expense forecast in Live Plan. This allows you to automate the whole process.

If you’re good in Microsoft Excel, you can use that as well of course. 

What’s most important is that you get a realistic budget in place that you can update and maintain as you move forward and learn about what the actual costs are.

But what you you include in your salon expense list? Let’s go over what the common costs are. 

Salon Start-up Costs List

Common  costs when starting a salon  are:

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

Your expense forecast should also include the going costs your salon will have. 

Monthly Salon Expenses List

The biggest monthly expenses a salon have are:

• Rent and utility bills
• Product purchases
• Education 

I’ve also put together a salon cost guide that I recommend you go through which covers the topic in more depth. This guide will help you identify the costs you need to include as well as give you some assumptions that you can work with. 

Access the article here: How much does it cost to start a salon?

9. Find a way to Finance your Salon

If you’ve completed the previous step, you should now have an idea of how much money you’ll need to start your salon business.

Hopefully you have some money saved for you new venture. But chances are you’ll need more money than that to set your salon venture off to a successful start.

There are of course ways you can get additional funding for your salon start-up. I have summarized the options you have here. Needless to say, you need to use caution and conservative business assumptions when you’re raising capital from other sources than your own. This comes with additional risk which you need to be conscious about.

1. Get an Overview of the Money You Already Have

The best is if you can fund part of your salon using the money you already have. Consider what you have in your savings account, if you have any stocks you can sell, if you own a property you can draw credit from, or if you have things you can sell like jewellery or cars.

2. Let Family and Friends Invest in Your Salon

You may have people around you who believe in your venture and are ready to support you. The benefit of this is that it eliminates credit approvals and bank fees. However, you want to make sure that you’re not putting your relationships at risk. Thus, I would really only consider accepting friends and family support if you are confident you can return the payment.

3. Use Credit Cards for Short Term Financial Help

Credit cards are commonly used when starting up a business to get short term funds for investments. This can be a great help for your cash flow but you of course need to be certain that you’re able to pay back after the short payment period.

Interest rates for credit cards after the payment period can be high so if you’re not using it safely you can end up in a bad place that you want to avoid.

4. Get a Bank Business Loans for your Salon

There are providers that specialize in small business loans. A popular place to turn for loans is Fundera. They compare different loan providers for you so that you can find the best solution for you.

It can be difficult to get a regular loan from providers if you’re just starting out and don’t have and proven business performance to show. This is where SBA financing comes in.

5. SBA Financing for Salons

If you’re not able to get a regular bank loan you may still be able to get an SBA secured loan . What this means is that the U.S. Small Business Administration guarantees the loan for you. This reduces the risk for the lender and in turn the cost of the Loan.

To find out who offers SBA secured loan, you can compare SBA loan options at Fundera . You should be prepared for that the application process for these loans to be long even if the cost of the loans are typically lower than traditional bank loans. 

So you should apply for your SBA loan as soon as you know you need one.

Financing Summary

It’s not as easy to get good financing when you’re starting a new salon business as when you have a well-established salon and just need additional funds to grow.

You can always check what loans you can get at Fundera. They also have a proven track record of being able to find solutions to new business where the traditional banks have said no.

Even if you can get a loan, you still want to make sure you do not take too high risk yourself. You want to be confident in your ability to pay it back. What will help you get that confidence is a good salon business plan . This is also something that bank will want to see to give you a loan.

10. Decide on your Salon’s Legal Business Structure

You’re making good progress!

You’re starting to get a log of the foundations in place to launch your new salon business. So it’s soon time to officialize your new business!

But before you do, you must decide what legal structure your business should be.

What Legal Business Structure Should a Beauty Salon Be?

Salon owners can choose from five possible legal structures when starting a salon business: Sole Proprietorship, Partnership, Limited Liability Company (LLC), S Corporation, or C Corporation but an LLC is probably your best option. 

The choice of business structure affects how much taxes you’ll pay, your liability, how much administrative work you need to do as well as your ability to get loans and raise money.  

An LLC business setup protects you from personal liability. It’s only the money that you put into your business that you have at risk. This is the main reason you should consider an LLC vs. a Sole Proprietorship. 

LLCs are also flexible. They don’t require shareholder meetings, a board of directors, and other formalities that a corporation does.  On top, there’s also more flexibility when it comes to taxation. 

However, the right legal structure could be different for you. There are services like Zen Business that can help you here.

11. Come up with a Good Salon Name

You have reached the exciting (or daunting in some cases) part of your opening a salon checklist.

It’s time to come up with a name for your salon.

There are four questions I recommend you ask yourself as you start brainstorming on good salon names for your business.  

Here is my video with tips when naming a salon or spa business.

A) Does the Salon Name Reflect You and Your Salon?

Your salon’s name should be unique and distinct to you. In order to land on the right name, take 2 minutes to think about how you’d like your salon to be perceived (e.g. classy, creative, or cool) as well as what it is that makes your salon unique. This can be the specific services you offer or the story about why your hair salon exists in the first place.

B) Does the Name Make it Intuitive that it is e.g. a Hair Salon?

You will be using your salon’s name in all your future  salon marketing activities . And in many cases, you only have a split second to communicate who you are.

This is why it’s vital that people immediately understand what type of business you run, or you’ll lose their attention. So if you’re using a more cryptic but cool name, you might want to add “Salon”, “Hair”, or “Nails” to the name so that people understand what you’re about.

C) Can you Find an Available Website Domain Name?

Soon after you’ve locked on your salon name, you’ll need to  create your salon website  and business email addresses. To do that, you need a domain name (e.g. examplesalon.com).

As all businesses are increasingly moving online and the cost of a domain name is low, the number of available domain names are becoming fewer. This is why it’s good to do a check already now to see if the name you want is available or you might want to adapt your name.

The easiest way of doing this is by using  Namecheap . They allow you to search for names and generate more ideas. If it’s busy, you can try with appending your “hair”, “salon”, or your city to the name. When you find something good, you can grab it at a low price with Namecheap to ensure no one else takes it.

D) What will the Name Look Like as a Hair Salon Logo?

Your hair salon name not only needs to sound good. It needs to look good.

You don’t necessarily need to finalize your logo at this stage, but it’s a good idea to at least test what it could look like when you turn it into a logo. As you do this exercise, you might realize that certain letters would be better than others, which could influence your final hair salon name.

It’s really easy to do this test with Canva. Canva is a free design tool that most entrepreneurs use to design things for their businesses. They also offer a free 30-day trial of their paid plan, which gives you access to great logo assets. Thus, I’d suggest you get on the free trial to generate your logo ideas (which you can complete in less than the trial period).

E) Brain Storm Name Ideas

As I receive many questions about name ideas, I’ve put together this enormous salon naming guide. It’s a PDF that contains thousands of name ideas and walks you through a process to help ensure you decide on the right name for your business.

Download the salon naming guide PDF here .

12. Register your Salon Business

It’s time to get your business registered with the state.

How you should register your business is determined by the business structure and location. But you’ll likely need to get a tax ID first as well as required licenses and permits for your salon .

This is not difficult but to make life easy for you, you can use a service like Zen Business to set up the business for you.

You just need to select the desired business structure and fill out a simple questionnaire.

This will save you time that you instead can invest in getting your new salon up and running. 

13. Obtain Required Salon Licences and Permits

There are a few licenses and permits you’ll need when you open a salon. 

We should be thankful that this is the case as it ensures professional knowledge and service quality, which protects salon clients. It also keeps unserious players away from our industry. 

Let’s go over what the common ones are.

What Licenses do I Need to Open a Salon? 

The licenses and permits you need to open a salon are:

• State Cosmetology or Beautician’s License
• Salon Retail Seller Permit
• Salon Business Operation License
• Federal Employer Identification Number (EIN)
• Certificate of Occupancy

On top of the above, you’re (in most states) also required to have salon insurance . I’ll cover what salon insurance you need later on in this guide.  

To learn more about the licenses you’ll need when opening a salon as well as how much you should expect your salon licenses to cost, you can read my complete guide on licences for beauty salons here . 

Build out your Salon Location

Your physical salon is at the heart of your business. In the next step, we’ll review how you find and set up your salon facility.

14. Find a Good Salon Location

Location, location, location.

These are the three most important things for a salon or spa business.

But is the salon location as important as it used to be?

If your salon has a strong presence on social media , you’ll not be as dependent on street traffic as in the past.

Your salon gets visibility and attracts clients online instead. This is why I thought the quote from Jeff Bezos was fitting here.

The three most important things in retail are location, location, location. The three most important things for our consumer business are technology, technology, technology. Jeff Bezos

But even if you build a strong online presence, the location of your salon remains important. 

Where you’re located says a lot about you.

And it needs to be convenient for your target client to get to you.

Salons based in an area with a high amount of people walking or driving by also need to invest less in marketing their salons. They get that for free, thanks to the location. 

But picking the right salon location comes down to much more than street traffic and the convenience for clients to get there.

In fact, in my guide to choosing a salon location , I include a checklist with 21 things that you must consider before signing your lease agreement.

15. Protect Yourself, Your Employees and Your Salon with the Right Salon Insurance

Running a salon comes with risk.

Things will go wrong.

A client could slip and break an ankle. You could accidentally give the wrong advice to a client that causes them injury. One of your staff could get injured. Or you could spill out chemicals during a mobile salon home visit.

These are just some examples of things you’re liable for as a salon owner. And just some reasons why you need to ensure you have the right insurance policies in place for your salon.

It’s natural to look for savings opportunities when starting a salon, but don’t let your insurance be one of them. This could cost you a lot down the line. Some insurance is also required in most states.

Below are common insurances you’ll need, even if it can differ depending on the salon type.

You can combine some policies to help you save money. I explain more about that in my guide to salon insurance that you can read here . 

16. Design Your Salon Layout

First impression.

This is the most important thing when people walk into your salon. The experience people have when they arrive is what will set the standard of what type of salon you are and if your salon is right for them.

Your salon is also the workplace for you and your staff. And it’s not laid out in a way that is practical, you’ll soon go crazy.

So when you create your salon layout, you need to balance the appearance with the practicality.

How exactly to layout your salon will, of course, differ depending on your salon dimensions. You can learn more about the recommended common salon room dimensions in my other article .

I have put together a list of salon decor and design ideas that you can check out for inspiration. For more salon design and decor ideas, I think Pinterest is the best platform for free inspiration. I try to pin nice ideas that I come across on my Pinterest board here .

Your salon lighting also plays a massive role in your salon’s appearance. Check out my article about salon lighting design to learn about lighting fixtures and options for salons.

Below are some specific salon design ideas to have in mind as you layout your salon.

Small Salon Design Ideas

It’s natural that your first salon will be smaller which means optimizing the space will be crucial to you. Here are some small salon design ideas: 

• Make the most of salon daylight. A brighter salon feels more spacious.
• Use a mirrored wall, as this creates a perception of a larger space.
• Consider island styling stations vs. against the wall to create more space

Read my article on small salon design ideas for more inspiration here.

Salon Reception Area Design & Layout

The salon reception and retail area should be the first thing clients see as they walk into the salon. 

You want to keep your reception tidy and clean. This is a working space for making bookings, answering the phone, and in many case and other administrative tasks. But you need to be careful that it doesn’t end up looking messy with paper a stationary lying around.

Don’t hide your retail behind the reception desk. Your client needs to be able to pick up products during check out without the receptionist having to give it to them. You can also make room for promotional display and impulse purchase products at the check out. 

The reception waiting area is a good place to promote your services and products. Make sure your retail is visible from the waiting area and have your salon service menu available to people as they wait.

As a rule of thumb, the amount of chairs you need in your waiting area is about half of the number of styling stations you have. Let’s say you have eight styling stations, in that case it should be sufficient with four chairs.

Get more inspiration for salon reception designs here .

Styling Station Area Layout

This is where your clients will spend the most time. Privacy is important here. Your clients need to feel comfortable. It can be tempting to add in more styling stations to grow revenue but you need to consider the space for your clients and also staff working around the chair.

Allow at least 40 inches between salon chairs to avoid that clients sit on each other. And ensure there’s sufficient working space around stations and behind the chair.

Make sure you have good styling station lighting so that your staff can work effectively and the result on the client looks as good as possible.

Get more ideas for styling station designs here .  

Salon Backwash Area Design

The backwash area is not just a place to wash hair. It’s a place where you provide a client experience. It’s also one of your best opportunities to upsell your client on care treatments and talk about the products you’re using to increase sales of retail.

Try to separate out the backwash area from the busy salon space. This should be a calm and relaxing area. Allow for 32 inches left to right for each shampoo station and 36 inches behind the station for the stylist.

As a rule of thumb, you need a shampoo station for every three styling stations. That is, if you’re a large salon with 15 styling stations, you should be ok with 3 shampoo stations.

17. Order the Salon Equipment and Tools you Need

Salon equipment is a big expense when you’re just starting a new salon. So you want to get this right. The best place to find salon equipment at a good price is on the web. 

Most salon equipment manufacturers are now present on Amazon. And this is also where I’ve found the best prices for salon equipment and accessories. 

Equipment Needed for Hair Salons

Some of the large equipment you need as you start out your salon are:

• Salon chairs
• Styling station
• Back wash unit

These will be your bigger expense items. But on top, there’s a number of other things you’ll need like cutting shears, combs & brushes, styling tools, carts, and service accessories. 

To help you build a check-list of the things you’ll need, I’ve put together a complete list of recommended hair salon equipment here .  

This list includes cost estimates for each items to help you build a budget. I’ve also included recommendations for the best equipment as well as low cost alternatives if you’re just starting out.

Check out my recommended equipment for hair salons

Create Your Salon Brand and Offer

You should now have your salon location and all the requirements to open a salon in place. Awesome!

But what should you offer in the salon? What’s your salon’s value proposition?

This is what we’ll work on next.

18. Create a Salon Logo

Your logo is a core asset of your brand.

You’ll use it everywhere: social media, website, business cards, and more.. 

So you want to get it right. 

There are two ways that you can go about creating your logo. Either you hire a salon marketing agency to do it for you or you do it yourself.

Using a salon marketing agency will cost you a bit more but ensures you get a perfect result. However, you don’t actually need to be a Photoshop guru today to create a professional logo. 

You can use Canva to generate a logo for you in just a few minutes using their online service.

For logo inspiration you can check out my list of salon logo design ideas . In the video below, I’m also walking you through some good principles to consider when designing your logo.

19. Design the Visual Identity of your Salon

Your salon brand is much more than just your logo.

Several visual components make up the look and feel of your brand.

• The colors you use
• The look and feel of images
• The font(s) you use
• The way you write and talk

How you put this together is crucial for your brand. You need to do it in a way that resonates with the target client. If you know your target salon client is old men, you probably would not use bright pink colors and pop music in your salon. You’d probably go for a more traditional, dark color, approach. 

Your salon software should allow you to customize the booking experience and client interactions to fit your brand colors.

Below is an example using Mangomint for online booking where you can see how big the difference is when you customize the booking experience to your brand.

You need to be consistent here.

The colors you choose should be reflected in your salon decor, your social media , and your website .

People should feel that they are in contact with your salon even if they don’t see your name and logo. The visual identity should be enough.

This is how you build a strong connection with your client. 

This is how you build a brand.

Let me tell you more in the video below.

20. Create a Strategic Salon Service Menu

Your service menu is at the core of any salon business.

In fact, what you list on your menu and how you use it can make a massive difference to your business.

An issue I see all too often is that salon owners irrationally discount their services. It’s as if they “want to be nice” to their clients and don’t think they can charge full price.

This is one of the biggest issues in our industry.

It comes with several negative consequences. It’s the start of a negative spiral where salon owners aren’t able to pay competitive wages, which in turn leads to high staff turnover, which in the end can lead to burnout of the salon owner.

This needs to end.

And a simple way to deal with it is by being disciplined with your service menu.

Take the time you need to build your menu and set your prices.

If profitability is important to you (which I hope it is), you will price your services differently depending on who delivers the service. You may even offer different prices depending on if the service is booked at peak hours or not.

To be able to support a more sophisticated price list like this, you’ll need intelligent salon software. Below is what it looks like when I’m setting up for service in Mangomint .

This platform allows for a lot of flexibility when it comes to pricing and managing your services.

Let’s go through some more principles when building a strategic price list.

Designed with your Target Salon Client in Mind

All your services are there to serve your target client. If you’re not sure what she wants, ask her. She might not know what it is that she wants, but as you get to know her better you’ll spot ideas that you can add to further strengthen your offer. 

The Role of Core Services

You’ll have two types of services on your menu. Your core services and your add-on service. 

The core services are your bread and butter. This is the haircut, basic color services or the standard pedicure or manicure. These are the services people would call and book even if they had not seen your menu. 

There’s a natural demand for these services and it’s typically what a first-time client would come in for.

You should avoid discounting these services unless for a special, tactical promotion. But it’s risky. Instead, you should benchmark prices for these services closely with competition in the area. I’m not saying you should have the same price. But if you go higher, you should have a reason why. And the same if you go lower. These are the prices that your client is most aware of when comparing you to other salons. 

For more examples of hair salon core services, check out my separate article with a list of salon services to consider for your hair salon menu .

The Role of Add-on Services

Add-on services are different. As the name suggests, these are additions or upgrades to a client’s visit. It could be a premium version of your core service. Like a balayage color instead of a regular color service. It can also be a care treatment that you add to the appointment.

These are powerful tools to increase the client spend per visit. Some of them will have to be pre-booked, but others can be added on during the visit.

For ideas on add-on hair salon services, check out my salon price list guide here . 

Promoting your Services

There are many ways you can run promotions on your services.

And service promotions can be a very effective tool to drive and grow your business. But you don’t want to do it in a way that undermines your prices. And there’s strategies to enable this. 

To learn more about how you can create salon promotions without undermining your pricing, you can read my salon promotions guide here . 

Keeping your Salon Menu Up-to-Date

Maintaining an up-to-date service menu should be part of your service strategy.

This is how you keep clients for long. You’re their go-to-person for beauty trends and they expect you to bring what’s new to them. By continuously updating your menu you’ll explore new ways of growing your business – you remove what doesn’t work and build on what’s working. 

21. Decide on Your Salon Retail Assortment

Retail sales are a powerful profit driver in your salon revenue model . 

Income from retail is typically split 50/50 between you and the brand where you part adds directly to your profit as the costs associated with retail sales is low. It doesn’t take up extra time from you to sell a product with the service and you only need a small area at your reception with some shelving solution do so. 

But what retail products should you offer?

Let’s go through a few principles to have in mind when designing your salon retail assortment.  

Figure out what your Client Wants

Like with many things in this opening a salon checklist, designing your retail offer starts with understanding your target client.

What type of brands is she looking for? What products complement the service offering you’ve designed for her?

By talking to her you’ll get insight into what she’s looking for. Listen and test things out to see what works. 

Don’t Offer Products that Compete

There’s little point in having many similar products from different brands. Unless you have a very large retail area and your strategy is to be a one-stop-shop for all retail, it should focus on fewer brands that complement each other.

For example, let’s say you’re a hairdresser, then you could have one good base styling brand, one good base care brand, and one electrical styling brand. On top of that, you’d have specialized brands. For example, a haircare brand for hair loss, or a vegan brand if that’s a feature desired by your client.

Research shows that too many options lead to people not making any choice instead ( Psychology Today ). Your sales of one brand will just cannibalize on the other similar brand so you don’t necessarily make more sales but just need a larger retail area and more brands to be trained with your staff.  

Start with a small core brand offering and then expand. Having fewer brands looks more professional, and it’s also easier to upsell a client to a product within the same brand than to recommend products from two different brands.

Working with one product supplier also means you’ll purchase more from them compared to if you were shopping from multiple suppliers. This typically enables you to get more favorable terms with them.

Get the Support Needed to Get your Salon Started

Your new salon is starting to take shape. But you’ll soon realize that you cannot do everything yourself. You’ll need good support systems and partnerships to effectively run your salon business.

In the following section, I’ll cover some of the foundational things you’ll need to get your salon setup.

22. Get a Good Salon Software

The right salon software can be your best friend when starting and running a salon business.

It can drive your business forward through built-in salon marketing features. It gets you in control of your business through the right reporting. It takes care of the mundane tasks you shouldn’t really be wasting your time on – like appointment and inventory management. 

Before you open the doors to your new salon, you need to have a good solution in place. 

Some of the things salon software will help you with are:

• Online Booking
• Client Management
• Automated Text and E-mail Messages
• Inventory Management
• Payroll Management
• Point of Sale Checkout
• Credit Card Payment

I’ve mentioned Mangomint a few times already in this guide. This is the most sophisticated and well designed platform available today.

This thing is beautiful, super intuitive to use for you, your staff, and your clients. It also leverages smart automations that allow you to run your business with much less friction compared to other platforms.

Below is what the Mangomint calendar looks like.

I strongly recommend you give this a try. In fact, it’s free to create an account which you can play around with in a free trial before you need to decide.

Try Mangomint for free here .

If you want to learn how Mangomint compares to other options available, I recommend you go through my list of the best salon software right now .

23. Get a Domain Name and E-Mail Address for your Salon

Few things look as unprofessional as businesses with a Hotmail or Gmail address. Wouldn’t you agree?

When you start your salon you want to make sure you also register a domain name that reflects your business. A domain name is your address on the internet e.g. “yoursalonname.com/.ca/.co.uk”. Registering a domain like that allows you to have it pointing to your website using “www.yoursalonname.com” as well as for your e-mail “ [email protected] ”.

The cost of a domain name is very low. This is why all businesses have them. It also means it can be difficult to find one that is available for your salon. Especially if you want a .com address.

However, given your salon is most likely a local business that only exists in your country, you should register a domain for your specific country. For example, if your salon is based in the UK, you should register a “.co.uk” domain.

Even then it can be difficult to find a name that fits your salon. So you’ll probably need to try a few variations. Let’s say you’re starting a nail salon with the name “Infinity” and you’re based in London UK. You’ll need to try some variations of “Infinity.co.uk”. For example “Inifinitynails.co.uk”, “Inifinitylondon.co.uk”, or “Inifinitynailslondon.co.uk” etc. until you find something that works for you. 

Check what domain names are available using the search bar below.

24. Setup your Salon Website

All salons need a website today.

There’s no getting around that. 

This is the hub of everything you do. This is where all your salon marketing activities points to and this is where clients get to know you before they book their first appointment. 

Your website is often the first impression people have with you.

So you want it to be a good one. 

And, it’s critical that the salon software you choose to go with allow you to integrate online booking on your website. Not all salon software does this, but it forces you to link out to a separate website that they control for clients to book.

Not great for the client experience.

Below is how Mangomint solves this. Independently of your website’s design, the booking widget fades in on top of your website so that people can book, purchase gift cards, etc., without leaving your website.

You have a two options when it comes to creating your salon’s website:

You can hire a salon marketing agency to create the website for you or you can do it yourself using a salon website builder .

It’s not difficult to create a website today. You don’t need to know any coding to do so. So if you’re on a small budget, this is an option today.

Depending on how you decide to go about this, I recommend you go through one of the lists below to capture some ideas and inspiration for your website.

• Top salon website examples
• Best barbershop website examples
• Best spa website examples

25. Setup your Salon’s Social Media

I’m sure it doesn’t come as a surprise to you that social media is important when you’re opening a new salon.

This is where your clients are and this is how you get your new salon visible in front of them. So you need to start setting up your new salons presence on social media immediately. 

But where should you start? 

I understand this can feel overwhelming at first. And you need to be smart about how you use social media for your salon.

It’s very easy to spend a lot of time posting and interacting with others on social media without it really leading to new clients for you. 

This is why I’ve put together a complete guide to social media for salons here .

This is a good place for you to start when your building out your salon’s social media strategy and setting up your account.

26. Order Salon Business Cards and Branded Material

Now that you’re starting to approach your salon opening, it’s time to order some branded material to use when promoting your salon.

Branded material includes Business cards, salon menus, promotional signs, clothing, etc. All this helps to bring to life a consistent picture of your new salon brand.

I have compiled a list of salon business card ideas that I recommend you go through for more inspiration.

Scale Your Salon Business

Awesome! Your salon business is set up.

It’s now time to move from being a new salon into a profitable and growing salon business. The final part of this open a salon checklist is focused on accelerating your salon business growth.

27. Build a Salon Marketing Plan to Accelerate Your Business

Now that you have your salon setup, your focus should shift to growing it.

You’ll need more clients through the doors and you need each client to spend more with you.

The reason I write on this blog is to help salon owners start and grow their businesses. So you’ve certainly landed in the right place. If you haven’t done so already, I suggest you sign up for one of my free courses that’ll give you more ideas on how you can grow your salon business.

But let’s build a plan for how you can grow your salon business.  

How do you Grow a Salon Business?

There are 7 ways you can grow a salon business:

• Grow your salon clientele
• Get your existing clients to visit your salon more frequently
• Sell more services/products per salon visit
• Sell more expensive services/ products during each salon visit
• Reduce your salon operation cost
• Add additional, non-traditional, income streams to your salon business
• Scale up your salon business

You can read my article on how to grow your salon business here . In this article, I break down each driver of salon growth that will help you define how you should measure and track your business to ensure you focus on the right things. 

What Activities can you do to Grow your Salon Business?

Now that you know what you need to focus on an measure to grow your business, what activities should you fill your plan with that will get you there?

Only you can decide what activity is right for you. It all depends on the specific challenges your salon business has. 

To get you started, I’ve curated a list with the most effective salon marketing ideas here . I recommend you go over the list and pick a few that you’ll focus on over the coming months.  

28. Hire Salon Staff and Motivate Your Team

You’ll not be able to make your salon successful without a strong team to support you. 

And to scale your business you’ll need to shift your focus to hiring talented staff to grow the business together with you. 

But you cannot only focus on hiring new salon staff. 

You also need to make sure that the team you have in place enjoy their work and perform their best.

Salon staff turnover is a big concern for many salon owners. The cost of hiring and re-training staff is high. 

There are several strategies you can implement to keep your salon staff motivated .  

In fact, I’ve put together a complete guide for you with 13 ways to motivate salon staff that I strongly recommend you read as you start to grow your team of salon employees. Check out my article  “13 Highly Effective Ways to Motivate Salon Staff”.

29. Review and Adapt your Salon Business Plan

If you’ve followed the opening a salon checklist outlined in this article, you should have a salon business plan in place now. 

But your salon business plan is not a document you create once and never touch again. 

The opposite.

It’s a living document that you should revise regularly to set new goals for your business and incorporate all the learnings you’re making on the way.

Because you’ll learn a lot as you open your salon. 

But it’s easy to lose the big picture when you’re busy dealing with the next issue ahead. You need to make sure you find to work on your business and not only in the business.

Take a step back regularly to look at what is working and not. Double down on what’s working and drop the things that didn’t go as expected.

This is an ongoing process.

And this is the art of running a successful salon business. 

Congratulations! 

You made it to the end of this article. Well done!

I told you at the start that reading this through would be the best investment of time you can make today. I hope I delivered on that. If I did, I would be very grateful if you wanted to share this with friends using the social buttons on this page. 

We’ve covered the list of 29 steps to open a salon. 

It was a long list. But starting a salon business is also a long journey.

You’ve taken an important first step on the journey today. But there’s more to come. Let’s stay connect on the way. This website is packed with resources to help you along the way.

I’m really excited for you now. 

All the best on this new and beautiful adventure!

Common Questions & Answers

How to open a salon with no money.

To open a salon with no money you need to create a detailed salon business plan  in which you minimize up front salon equipment investments, are highly prudent about all salon operation costs, and enable smart loans and investments into your business. Below are specific tactics you can implement to enable a salon start without money.

• Build a one year “salon bootstrap plan”: Start with a low cost salon business model  (booth rental, home salon, or mobile salon) that carries minimal cost but allow you to build up capital and experience to open your ideal salon.
• Borrow salon equipment:  Build a plan for what equipment you need to buy when and borrow tools in the beginning until you’ve built some capital. 
• Get a full view on how much you can self-fund:  Identify any savings accounts, real estate, pension accounts, 401k, that you can use as security for a loan. Also turn to friends and family for capitial support. Self funding gives you full control of your business but you also carry all risk so you need to be careful and seek personal financial advice first.
• Get venture capital from investors: Give a share in your salon business to an investor in return for up front capital.
• Apply for an SBA backed loan:  When banks thinks your business is too risky to lend money, the U.S. Small Business Administration you can agree to guarantee your loan. You can compare SBA loans at Lendio. 

I’ll go into more detail on salon financing options in the finance your salon section of this article but these are some of the common ways to get support if you want to start a salon with no money.

How Much Does it Cost to Open a Beauty Salon?

The cost of opening a beauty salon is around $62’000 for a good but basic setup in your own physical location. Nail salon start up cost is typically lower than for hair salons or barber shops. Cost can be significantly higher ($500’000+) but there are also ways you can start your salon business on a much smaller budget ($2’000).

Common salon startup costs are:

• Buy out of current salon
• Leasehold improvement
• Salon marketing
• Legal and consulting fees

For a full break down on salon startup costs , you can read my article here

Helpful Resources for Starting a Salon Business

These resources can offer valuable information, guidance, and support for small businesses, including those starting various salon businesses. They can help with business planning, marketing, financing, and operations.

U.S. Small Business Administration (SBA)  – The Small Business Administration (SBA) provides many resources for small businesses, such as business planning guides, loan programs, and educational materials.

Small Business Development Centers (SBDCs)  – SBDCs offer free consulting, training, and resources to support entrepreneurs in starting and growing their businesses.

GSA  – The GSA helps small businesses learn more about doing business with the government, government contracting opportunities, and marketing their contracts.

Consumer Financial Protection Bureau  – The Consumer Financial Protection Bureau offers resources for small business owners, including information on small business lending and access to credit. The bureau’s goal is to raise awareness and provide support for small businesses in the lending marketplace.

SCORE — SCORE is a non-profit organization that offers free mentoring services and resources to small business owners. It guides various aspects of starting and running a business, including business planning, marketing, and financial management.

Top Salon Industry Associations for Aspiring Salon Owners

Here are the top organizations you should know, offering support, resources, and networking opportunities to set your salon up for success.

Professional Beauty Association (PBA)

The PBA is a comprehensive resource for beauty professionals. Membership provides many benefits, including scholarship opportunities, liability insurance, health benefits, and discounts on industry events and education. The PBA’s wide-ranging support and advocacy make it a great asset for navigating the complexities of starting and running a successful salon.

Associated Hair Professionals (AHP)

AHP is a tailored resource for hairstylists and barbers. The organization offers liability insurance and business support to help members reach their career goals. With AHP, you’ll gain access to quality education and innovative solutions crucial for your salon’s success and growth.

American Association of Cosmetology Schools (AACS)

While AACS supports cosmetology schools, the information and trends it provides are also invaluable for salon owners. Staying current on the latest teaching methods, industry trends, and regulations is key to keeping your services updated and your salon compliant.

Intercoiffure America/Canada

For an enhanced reputation and networking opportunities, consider joining Intercoiffure America/Canada . This association represents the highest level of the hairdressing industry, offering access to influential figures and the chance to elevate your salon’s standing.

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Related Posts

• What Licenses do I Need to Open a Salon? The Ultimate Guide
• 3 Important Maternity Leave Tips for Salon Owners & Stylists
• How Much Does Salon Insurance Cost?

John Hallberg

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

How to Write the Perfect Salon Business Plan in 6 Steps

Discover how to craft a winning salon business plan in just six steps! Boost your salon's success with expert tips, market analysis, and strategy insights.

No credit card required.

As a salon owner, having a well-thought-out business plan is essential to the success of your business. A salon business plan outlines your business goals, market analysis, marketing strategies, financial projections, and other key details, serving as a roadmap that guides you through the process of starting, running, and growing your salon. In this article, we’ll go over the key elements of a salon business plan and provide tips on how to write the best business plan for salons in 2023.

Try GlossGenius free for 14 days!

How much does it cost to run a salon .

Before you start writing a salon business plan, it’s important to get an idea of the startup and ongoing costs. As we discuss in this article , the costs of starting a salon range from $62,000 for an existing salon to $90,000 for a new operation. With some of the expenses, you’ll incur one-time costs – other expenses will be ongoing such as supplies and inventory. Here are some of the typical costs associated with starting a salon: 

Existing Salon 

When you buy an existing salon, be it a hair salon or nail salon, you save on the costs of buildout, salon equipment , and salon marketing, assuming the salon already has some of these elements in place. Here’s what you can expect to pay for the following:

• Rent deposit: $4,500
• Buyout of current salon: $10,500
• Leasehold improvements: $15,000
• Equipment: $10,000
• Initial supplies: $8,000
• Initial inventory: $4,000
• Certifications and licenses: $4,000
• Marketing: $5,000
• Legal or consulting fees: $1,000

Grand total: $62,000

The upfront costs of building out a brand-new salon, marketing it to local clients, and getting the business up and running will likely exceed those of buying an existing salon. Here are the typical expenses you can expect to incur for a new salon:

• Buyout of current salon: $0
• Leasehold improvements: $35,000
• Equipment: $25,000
• Marketing: $8,000

Grand total: $89,500

You may also want to budget for the following:

• If you need a loan or financing to cover startup costs, expect to pay interest rates of 1.25% to 10%.
• Salon insurance ranges from $50 to $1,000 per month.
• Salon booking software and a point of sale (POS) system range from free to $500 per month. GlossGenius starts at an industry-low $24 per month with low payment processing fees and includes a website, a branded card reader, and other extras.
• A salon website can cost you thousands, but with GlossGenius, it’s included free! Beautiful and customizable, your website is packed with scheduling features and is easy to navigate, helping to increase bookings and future appointments.

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How Profitable Is Owning a Salon?

If you owned a salon during the pandemic, no doubt you experienced your fair share of struggles between lockdowns, closures, and reduced business hours. According to Statista , the U.S. market size of beauty salons dropped from $69 billion in 2019 to $42.3 billion in 2020. Fortunately, things are beginning to look up for hair, skin, nail, and other types of salons, with the market valued at $53.6 billion as of 2022.

You can take advantage of the comeback by approaching your salon startup with a solid plan in place, a realistic budget, and a marketing strategy. A beauty salon business plan can help you identify any questions , opportunities, and potential roadblocks so you can have the best chances of getting funding, earning a return on your investment and achieving profitability. The more you control your expenses and market your business successfully, the more profitable you will be – so be sure to take your time creating a salon business plan for your needs.

6 Steps to Writing a Hair Salon Business Plan

The business plan is the most important document for any salon owner. It’s a formal, written plan that describes the future of your business and how you intend to achieve it. A good business plan will help you stay on track, get funding if you need it, and avoid costly mistakes as you navigate through choppy waters in this industry. 

We know what you’re thinking – that a business plan is a monster of a document that will take a ton of time to create. But, it doesn’t have to be. In fact, you can pare it down to one page and still have an effective, clear document that outlines everything you (and any other interested parties) need to know about your new salon. Below are six steps to writing a salon business plan that will ensure your success.

Here are six steps to creating your salon business plan:

• Create an Executive Summary
• Map Out Your Branding Vision
• Research Your Industry
• Create a Client Acquisition Strategy
• Management and Operations
• Financial Planning

Let's dive deeper into each one.

1. Create an Executive Summary

The executive summary is the first section of your business and management plan and provides a brief overview of your salon business. This section should include your mission statement , business objectives, target market, products and beauty services, and financial projections. It should be concise, engaging, and compelling to grab the attention of potential investors, lenders, or partners. It also serves to clarify your goals so you can come back to them anytime you need a refresher or wish to update this information.

Your executive summary is just that: a summary. This means you do not have to get into every detail in this section; you’ll provide a more complete analysis in the individual sections of your business plan. Here are some key elements to include in the executive summary:

• An opening “hook.” The first sentence or two of your executive summary needs to draw in the reader; otherwise, your business plan might not get the attention it deserves. Grab your audience’s attention by sharing a compelling fact about your company, a memorable story related to your industry, or some other well-crafted description of your business that will make your business plan stand out.
• Summary of your business. Describe what your company does, what services and products you will offer, who will run the company, and other high-level details.
• Market analysis. Briefly describe the market landscape for your own salon to show there is a proven need for your services. Be sure to address who your competitors are, any advantages you have compared with others, and any research you’ve conducted to demonstrate there is a demand for your services in the area. 
• Products and services. Highlight the specific services your salon will offer, any products you will sell, and any other information showing that your salon will fill the need you’ve described in your market analysis summary – and how you’ll do it better than the competition.
• Financial information and projections. Give your reader an overview of your business financials, including any current sales and profits, the funding amount you’re looking to acquire or any funding you already have, and your projections for growth.
• Future plans. Tell your reader exactly how you plan to use any funds you acquire and how their investment could pay off. Imagine where you want your business to be in a year, five years, and so on. Make it clear how funding will help you get there.

2. Map Out Your Branding Vision

Branding isn’t just about creating a unique identity for your business; it’s also about helping people connect with that identity and remember your name anytime they need your services. Branding helps both current clients and new customers recognize who you are and why they would want to seek out your salon. In your business plan, be sure to map out your branding vision by including:

• A description of your salon business. Describe who you are and what you do.
• Your mission and vision statement. Briefly summarize why your salon should exist, its primary objective, and how you plan to achieve your goals.
• An overview of your products and services, your pricing strategy, and any unique features or benefits that differentiate your salon from others in the market. Discuss the specific services you will offer and their price points, plus any product lines you will carry, such as hair care products, makeup, or skincare.
• A description of the target audience and customer demographics. Include relevant research on your market and the people who will buy what you’re offering.

3. Research Your Industry

This section should include a market analysis that provides an in-depth look at the salon industry, including trends, customer demographics, competition, and opportunities. It should also identify your target market and describe how you plan to reach them. This section should demonstrate your knowledge of the market and your ability to capitalize on it, with details on:

• The industry and trends. Provide an overview of the salon industry with relevant statistics, especially those that pertain to your area of expertise and geographic location.
• Your competition. Conduct a competitive analysis to gain insights into your competition, their marketing strategies, and the services and products they offer. The goal is to show how you will capture market share using stronger business strategies that set you apart from your competitors.
• Market segmentation. With market segmentation , you break down a larger target market into a smaller group of customers you plan to serve. Demographics such as age and income, geographic location, lifestyles or psychographics, and behavioral factors like price sensitivity or product loyalty are just a few approaches to market segmentation that you can consider for your business plan.
• SWOT analysis. The SWOT analysis is a way to assess your strengths, weaknesses, opportunities, and threats. It's an effective method for identifying your business strengths and weaknesses as well as external factors that may affect the success of your salon business.

4. Create a Client Acquisition Strategy

The client acquisition section of your salon business plan should describe how you plan to attract and retain customers as a hairstylist . It should outline your advertising and promotional strategies, such as social media marketing , SMS marketing , email marketing, and referral programs. This section should also discuss your sales strategy, including how you plan to increase sales and generate revenue.

• Description of marketing channels and tactics . Outline the different channels you will use to generate leads, such as social media, blog articles, emails, and text messages. 
• Sales forecasting and projections. Discuss how you will convert leads into clients, nurture them through the pipeline, and retain a loyal clientele. Include a realistic estimate of the quantity of goods and services you can sell within the forecast period (for example, monthly, quarterly, and annually). For a salon business, it’s helpful to determine the customer lifetime value of your typical client as well as the customer acquisition cost. You can then break down this number for the forecast period to determine the costs and sales projections.
• Customer acquisition and retention strategies. Include which strategies you will use and the associated costs, such as pay-per-click (PPC), search engine optimization (SEO), and paid ads on social media. Describe how you will retain customers – for example, through loyalty programs and responses to feedback and reviews on social media and Google. ‍
• Pricing strategy. It’s critical that you price your services and products competitively to drive revenue and profits. Detail the pricing strategy you plan to implement based on your buyer persona and competitive analysis. The strategy could be based on a variety of factors, but geographic location and local competition will likely be the biggest factors dictating your salon pricing strategy.

5. Management and Operations

The management and staffing section of your salon business plan should describe the organizational structure of your salon, including the roles and responsibilities of each staff member. It should also discuss your hiring and training practices, employee benefits , and compensation plans. This section should demonstrate your ability to attract and retain a skilled and motivated team, with information on your:

• Organizational structure. Spell out who runs the show and who reports to whom.
• Management team and staff. If you plan to hire a manager , look for someone who has experience in the industry and understands what it takes to run a salon. This person should also have good people skills and be able to work well with others.
• Business operations and processes. Consider which other support personnel you will need, such as an accountant and a dedicated marketing specialist. Don’t be a hero; you can’t do it all alone. ‍
• Legal and regulatory requirements. Include information on any legal advice you will employ to stay compliant with local, state, and federal guidelines.

Note that with GlossGenius, you can manage your team and collaborate with them to make your operations run more smoothly. Our software helps you delegate, mentor, and partner with others based on customizable permissions that let you grant as much or as little access as you wish. Easily manage your scheduling, booking, commissions, and reporting from one intuitive dashboard.

6. Financial Planning

Financial planning is a crucial section to include in any salon business plan. A cash flow forecast shows the anticipated amount of money coming into the business, as well as what you will spend on expenses. It also projects growth over time, which allows you to make predictions about future revenue and expenses so that you can better plan for them in advance.

The best way to get started with your financial projections is by creating an income statement (also called a profit and loss statement), which breaks down all income sources by category (e.g., retail sales and commissions), along with their associated costs (e.g., salaries). This will help provide insight into where your profits are coming from as well as areas where they could improve. Here are some key areas to cover in your salon business and marketing plan:

• Revenue and expense projections. Your revenue projections should consider the number of clients you expect to serve, as well as the average price per service. Your expense projections should reflect all costs associated with running your salon, such as utilities, rent, and supplies.
• Capital requirements and funding sources. Detail how much money you need to start and run your small business, including all costs associated with opening the salon. Describe the funding sources that you intend to use for starting your salon business, whether from personal funds, salon loans , or investors.
• Break-even analysis and profitability projections. A break-even analysis is a financial tool that shows how much revenue you need in order to cover your fixed costs (rent, utilities, etc.) and variable costs (such as salons supplies and staff wages). Profitability projections show how much profit you expect from your salon business for each year of operation. This is based on your estimates of revenue and expenses. You can use this information when seeking funding from investors or lenders.
• Financial ratios and metrics. A financial ratio is a measurement of the relationship between two numbers, usually expressed as a percentage or a fraction. For example, the working capital ratio compares your current assets to liabilities; this metric allows you to measure liquidity. Include the appropriate ratios and metrics in your business to demonstrate your company’s financial health.

A well-written salon business plan is essential for the success of your business. It provides a roadmap for achieving your business goals, attracting investors, and securing funding. By following the tips outlined in this article, you can write the best business plan for your salon and ensure your salon’s success!

As you’re creating your salon business plan, remember to start your free trial with GlossGenius and give yourself the best chances for success. From salon management to payment processing, we’ve got your new salon covered – making it easier to get up and running sooner rather than later.

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Salon Business Plan Template

Used 5,700 times

You're finally ready to open your own salon. This salon business plan template and tips will help guide you how to present your salon as a sound investment.

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Prepared by: ​ [Sender.FirstName] [Sender.LastName] ​ [Sender.Company] ​

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Executive summary

In order to fulfill the vision in this salon business plan, we will require (amount) in capital which will be allocated roughly according to the following table:

If our beauty salon is fully capitalized, we hope to be profitable by (time period).

​ [Sender.Company] will be owned and run by [Sender.FirstName] ​ [Sender.LastName] in the (intended area of business operations). Our mission is to serve the (area) population with premium services including (for a hair salon, services could include cuts, colors, blowouts, styles, etc. but gear these services to the specific type of salon) and more. [Sender.Company] is seeking funding in order to (describe the purpose of desired funds i.e. build or rent a facility, buy salon equipment, hire staff, etc.).

Marketing plan

Target market.

Our clientele is made up largely of (families, working professionals, high-income households, etc.) and we intend to cater to this market by (write down the specific strategies geared towards this target market).

Competition

Our competition is made up of minimal/many salon businesses with the most significant competitors including (names of main competitors) . We plan to win customers from our competitors by offering (describe differentiating factors you plan to use to outshine your competition i.e. more services, better prices, nicer salon facilities, etc.).

Specific marketing plan

​ [Sender.Company] will take advantage of targeted marketing strategies to win customers from our competitors and build our brand. These strategies include (describe some of the specific strategies that you intend to use for salon marketing).

Products and services

​ [Sender.Company] will offer its clients a range of premium services including (describe various services) . We will also sell a variety of products such as (describe types of products).

Operations plan

Beauty salons require a consistent supply of materials to operate effectively, and these supplies include (describe supplies). We have established relationships with various suppliers and have negotiated rates for these necessary items giving us pricing assurances for the foreseeable future.

​ [Sender.Company] intends to hire (number) of staff and have (number) chairs operating. Our hours of operations will be from (describe days and hours the salon will be open).

All of our staff will be fully licensed and compliant with local and regional regulations. In (area) salon staff are required to have (describe specific licensing required) , and this will be a hiring requirement for our personnel.

Expense projection

We expect our monthly outlay of expenses to approximate to the following:

Management team

​ [Sender.Company] will be run primarily by [Sender.FirstName] ​ [Sender.LastName] who has extensive industry experience and is fully equipped to run a salon business. (Go into additional detail here).

(Add more biographies for other business owners or key management personnel here)

​ [Sender.FirstName] [Sender.LastName] ​

​ [Sender.Company] ​

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How to Write a Successful Salon and Spa Business Plan

• April 12, 2024

Julis Navarro

Table of contents.

You’ve dreamt of opening your own salon and spa , and now you’re ready to make it a reality. Congrats! You’re in for a rewarding journey ahead. Now is the time to prepare your new venture for long-term success with a comprehensive business plan.

Why should you write a business plan? A spa and salon business plan is your playbook—it’s your vision for your company and the steps you’ll take to bring it to life. Developing a business plan will help you outline your goals, strategize, and make informed decisions. It involves thorough research of your target market and competitors, as well as creating effective marketing strategies and assessing finances.

This blog will guide you through nine essential steps to develop a successful salon and spa business plan—whether you’re a hairstylist, an esthetician, a massage therapist, or a cosmetologist. Follow along with our free downloadable template and create your very own road map toward a flourishing business.

1. Start With the Executive Summary

The executive summary is the first section of your business plan. Think of it as a high-level overview of your salon and spa business. It should include a brief description of your business, its unique selling proposition, goals, mission statement, and keys to success.

The executive summary sets the tone for the rest of your spa and beauty salon business plan, so write it concisely and compellingly to grab the attention of potential investors and lenders.

2. Include Your Company Description and History

Why should a potential lender or investor care? This second section dives deeper into what makes your salon and spa unique—such as its services, target clientele, and competitive advantage.

If you’re already in business, you should also highlight your growth and success by including a brief business history. This will enable potential partners or investors to feel confident that you’re a worthwhile venture.

A well-crafted company description and history will help your salon or spa business plan stand out in the industry and give interested parties a clear idea of what your company offers.

3. Perform a Market Analysis

Performing market research provides the context of where your business will fit in. This requires thoroughly examining the current state of the salon and spa industry, identifying your target market, assessing the demand for your services in your area, and doing a competitive analysis to develop unique selling points.

Once you understand your desired clients’ needs, you can identify reasons why they might choose you over your competitors. As you write your spa’s or salon’s business plan, position your business with the insights from your market research, so that your company can rise above a crowded market.

4. Detail Your Services and Pricing

This section enables potential lenders and investors to understand the scope of your provided services and your pricing strategy. It also helps you establish your business in the marketplace and communicate clearly with your customers. Highlight your value by outlining your services and prices—this, in turn, will illustrate how you will make money for your salon and spa business.

5. Explain Your Marketing and Sales Strategy

How will you attract customers and keep them happy? In a salon or spa business plan, this section outlines your methods for getting customers interested and generating sales. It should provide details on the target market’s psychographics and demographics, as well as your marketing strategies for engaging with them.

This can include initiatives, such as collaborations, social media marketing, partnerships, advertising, and promotional activities —all the ways you plan to raise awareness and acquire customers.

The sales plan should also detail pricing strategies, like bundles or discounts, and establish referral or loyalty programs to encourage repeat business. Ultimately, a salon or spa business must leverage thoughtful marketing and sales strategies for continued success.

6. Outline Your Operational Plan

Mapping out your daily operations, including opening hours, staffing, and service processes, allows potential lenders to envision your spa and salon business functioning at its best. It also ensures you have thought through the small details that can make or break your business.

In this section, you can also include information about your suppliers and a description of your facility to round out your operational plan. You’ll also need to think through operational needs, like:

• What client scheduling software to use
• Which types of salon insurance you’ll need
• The payment processing tools that will best fit your needs—and more.

7. Highlight Your Management Team and Organization

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 responsibilities, credentials, areas of expertise, and previous work in the salon and spa industry.

You should also touch on your current and future staffing needs in this section. By showcasing your management team’s skill level and by forecasting employee organization, you will show investors that you have the necessary leadership to manage and grow your salon and spa business effectively.

8. Present Your Financial Projections

Now it’s time to talk numbers. Your salon and spa business plan must include financial projections, which examine the financial health and anticipated profitability of the company. It outlines startup costs, a timeline for estimated income, expenses like salon and spa equipment and insurance, and a cash flow forecast.

Lenders and investors can determine your company’s viability based on these forecasts. It also helps you establish realistic financial objectives and create plans for success. Financial predictions are essential in proving the company’s financial viability and potential for growth in a spa and beauty salon business plan.

9. Finish With an Appendix

The final piece in a business plan for salons is the appendix, which provides additional details and supporting documentation. It includes market research data, financial forecasts, résumés of key employees, and other pertinent details that give your plan more substance and credibility.

By including an appendix, potential investors or lenders can learn more about the intricacies of your 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

Writing a salon and spa business plan is crucial for several reasons. It helps you define your business goals and objectives, outlining the direction of your salon or spa. It creates a clear road map for success and guides your decision-making process.

A well-written spa or beauty salon business plan can also secure funding from investors or lenders, showcasing your professionalism, salon marketing plan and market knowledge, and potential for profitability.

Moreover, it is a valuable tool for monitoring progress and making necessary adjustments to ensure long-term success. Even if you’re not seeking funding, thoroughly thinking through every aspect of your business ensures nothing critical is overlooked as you grow.

Now that you know how to write a successful spa and salon business plan and why it’s important, it’s time to get started on yours. Use our free downloadable template below and lay the groundwork for the business you envision!

FAQs About Writing a Salon and Spa Business Plan

What is a salon and spa business plan.

A salon and spa business plan outlines goals, strategies, and financial projections. This plan serves as a road map 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.

Why Should I Write a Salon and Spa Business Plan?

A salon and spa business plan is crucial for success in the beauty and wellness industry. A well-developed business plan is essential for funding, attracting investors, and guiding operations. Even if you’re not seeking funding, it ensures no critical aspects of your business are overlooked.

What Is the Business of a Spa?

A spa is a business that offers relaxation and rejuvenation services to consumers – massage therapy , facials, body treatments, and other health services like yoga or meditation sessions. The goal of a spa is to create a calm and pleasant atmosphere where clients can relax and take care of themselves, away from the stress of daily life.

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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Salon Business Plan Ultimate Guide + Free Example

July 6, 2023

Adam Hoeksema

When it comes to starting a salon, you may be eager to dive into the world of beauty and make your clients look and feel their best. However, it's important to recognize that writing a business plan is a crucial step, especially when seeking support from potential lenders and investors.

While it may not be the most exciting task, a well-prepared business plan demonstrates your commitment and professionalism, making it an essential tool to secure the necessary funding and outline your salon's path to success. It's also important to make sure your business plan and financial projections are realistic and inline with some industry averages for salons .

This guide is going to help you walk through the following:

• Salon Business Plan Outline
• Conducting Market Research for Your Salon Business Plan
• Creating Financial Projections for Your Salon Business Plan

Example Salon Business Plan

Salon business plan faqs.

With that in mind as the path forward, let’s dive in. 

What Should be Included in a Salon Business Plan?

A salon business plan must convincingly show to prospective financiers and loan providers why clients would opt for your salon, why you or your crew are best suited to oversee the salon operations, and how the financial projection to ensure a favorable financial return on their investment. Here is a thorough breakdown of our complimentary salon business plan template .

‍ Salon Business Plan Outline ‍

I Executive Summary

II Market Analysis

III Business Description

IV Marketing and Sales Strategies

V Menu of Services and Pricing

VI Operational Plan

VII Financial Plan

• Startup Costs
• Projected Financial Summary
• Annual Sales, Gross Profit and Net Profit
• Key Financial Ratios
• Watch how to create financial projections for your very own salon
• Income Statement
• Balance Sheet
• Cash Flow Statement

VIII Conclusion

How to Conduct Market Research for a Salon Business Plan

At the core of any salon business plan is market research. It's necessary to understand your position within the market and establish that there is a substantial demand for your unique salon concept, location, and pricing tiers. You can delve more into our salon market research approach here, but essentially, you're seeking to understand your competitors, obtain insights on potential customer traffic, select an ideal location, and foresee any seasonal trends that may affect your business. Below are some tools and tactics for executing market research for your planned salon.

What Will be the Cost to Advertise my Salon?

We suggest using Google Keyword Planner to help you identify which keywords to promote to attract customers to your salon's website. The tool also offers an estimate of the cost per click for advertising using various keywords, as demonstrated below:

What Keywords are Customers Searching for?

We use both Google Keyword Planner and Ahrefs to identify which keywords are driving traffic to your competitors' websites. For example, you can run a report on a competitor's site to identify the keywords they rank for and the amount of organic traffic each keyword garners. This data can guide your SEO initiatives.

How Seasonal are Salons?

We like to utilize Google Trends to determine how seasonal your salon concept might be. For instance, you can observe below that the search volume for “salons near me” in the United States is somewhat seasonal in nature.  June is consistently the peak, with the late fall tending to be the low point of the season

How Many Customers Visit my Competitors Each Month?

Finally, we recommend pulling foot traffic reports on your competitors to understand the average number of customers they typically serve in their salons. You can see an example below showing the number of visits per month for a specific location:

Ultimately, your potential customer base's size for your salon will be a crucial assumption underpinning your financial projections. Thus, grasping how many customers frequent your competitors can help you predict potential traffic to your salon.

How to Create Financial Projections for a Restaurant Business Plan

With comprehensive market research completed, it's time to develop financial projections for your salon. Our salon financial projection templates rely on various factors, such as client traffic and service capacity, to form the basis of your revenue projections. While some salons may have limitations on the number of available appointments, others may be constrained by the time it takes to deliver services effectively. Creating accurate financial projections is crucial to showcase your salon's potential to repay loans and provide a return on investment to potential stakeholders. To achieve this, consider the following steps:

• Estimate startup costs for your salon
• Forecast revenue (employee based, booth rent, salon suite, hybrid)
• Project supplies and labor cost
• Estimate your operating expenses like rent and utilities
• Calculate how much investor or loan capital you will need to open

Our salon projection template will guide you through this process and help format your projections in a standard format that meets the requirements of potential investors or lenders. Typically, startup salon projections should include an integrated income statement, balance sheet, and cash flow forecast.

By following these steps and utilizing our salon projection templates, you'll have a solid foundation for presenting your salon's financial outlook and demonstrating its potential profitability.

Below you will find the text of our salon business plan. You can also access a downloadable Google Doc version of this salon business plan template here , enabling you to make personalized edits. Additionally, we have created a helpful video walkthrough that guides you through the process of tailoring the business plan to suit your salon concept.

Table of Contents

Executive Summary

Our salon, called "Lux Beauty Spa," is a full-service beauty and wellness center that aims to provide a luxurious and rejuvenating experience for all of our clients. Our mission is to enhance the beauty and well-being of each individual that walks through our doors, through personalized and expert services. 

We will offer a wide range of services including hair styling, nail care, skin treatments, massage therapy, and more.

Our target market is women and men of all ages who are looking for a high-quality beauty and wellness experience. We will be located in a high-end shopping center in downtown to attract our affluent target market. Our projected start-up costs are $200,000, and we anticipate reaching profitability within two years.

Market Analysis

The beauty and wellness industry is growing, with a projected global market size of $716.3 billion by 2027. In our target market, there is a growing demand for high-end beauty and wellness experiences, and a trend towards holistic and natural approaches to self-care.

Our main competitors include established high-end salons and spa centers in the area, but we differentiate ourselves through our focus on personalization and luxury. We will also offer services and products not commonly found in traditional salons, such as custom skincare treatments and exclusive hair care lines.

Business Description

Lux Beauty Spa will be a limited liability company (LLC), owned and operated by two experienced beauty professionals. We will be fully licensed and insured, and comply with all state and local regulations.

Services Offered:

Lux Beauty Spa will offer a comprehensive range of beauty and wellness services, including:

• Hair styling: We will have a team of skilled hair stylists offering cuts, coloring, and styling services for all hair types. We will use high-quality hair care products and tools, including well-known and exclusive brands.
• Nail care: Our nail technicians will offer a variety of nail services including manicures, pedicures, and gel polishes.
• Skin treatments: Our licensed estheticians will offer custom skincare treatments, including facials, peels, and microdermabrasion. We will use only the finest and natural skincare products.
• Massage therapy: Our licensed massage therapists will offer a range of massage services, including Swedish, deep tissue, and hot stone.

Marketing and Sales Strategies

To attract and retain clients, we will employ several marketing and sales strategies, including:

• Online advertising: We will create a professional and attractive website, and use targeted online advertising to reach our target market.
• Promotions and discounts: We will offer promotions and discounts to new clients and for special occasions, such as birthdays and holidays.
• Loyalty program: We will reward our regular clients with exclusive discounts and special offers.
• Referral program: We will incentivize our clients to refer their friends and family to Lux Beauty Spa with discounts and bonuses.

Menu of Services and Pricing

Our menu of services and pricing will be competitive with other high-end salons in the area. We will offer packages and memberships for regular clients, as well as a la carte services for those who prefer one-time treatments. Our prices will reflect the luxury and quality of our services and products.

Operational Plan

Lux Beauty Spa will operate 7 days a week, from 9 AM to 9 PM. Our staffing will include a manager, hair stylists, nail technicians, estheticians, massage therapists, and a receptionist. We will use scheduling software to manage appointments and ensure efficient use of our resources. Our inventory management will include regular monitoring of product levels and restocking as needed. We will also keep detailed financial records and regularly review our performance to make necessary adjustments to our operations.

Financial Plan

Our projected start-up costs are $200,000, which will cover rent, equipment and supplies, marketing, and salaries. Our operating expenses will include rent, utilities, supplies, salaries, and marketing. Our sales revenue will come from services and product sales, and we anticipate a steady growth in revenue over the next two years.

Our financial projections show we’ll break even in year 3 and grow profit considerably after that.

All of the unique financial projections you see below were generated using ProjectionHub’s Salon  financial projection template s. Use PH20BP to enjoy a 20% discount on the template. 

Startup Costs:

Projected Financial Summary:

Annual Sales, Gross Profit and Net Profit:

Key Financial Ratios:

Watch how to create financial projections for your very own salon:

Income Statement:

Balance Sheet:

Cash Flow Statement:

Lux Beauty Spa is poised to become a leading luxury beauty and wellness center, offering personalized and expert services to our affluent target market. With a strong focus on quality and luxury, we are confident in our ability to achieve profitability and success in the beauty and wellness industry.

What should I include in a salon business plan?

A salon business plan should include sections on executive summary, company description, market analysis, target market and services, pricing and packages, marketing and promotion strategies, location and facilities, staffing and management, and financial projections.

How can I determine the ideal location for my salon?

When selecting a location for your salon, consider factors such as foot traffic, visibility, accessibility, competition in the area, parking availability, and proximity to your target market. A location near residential areas or commercial districts with a high demand for salon services can be ideal.

How can I estimate financial projections for my salon?

Financial projections for a salon should include estimates for start-up costs, monthly expenses (such as rent, utilities, products, and employee salaries), projected revenue based on service pricing and expected clientele, and a break-even analysis to determine when your salon will become profitable.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Aug 10, 2023

How to Create a Business Plan for Your Salon: Your Beauty Blueprint to Success

Dive into a step-by-step guide on creating a business plan tailored for salon success. From mission clarity to financial foresight, unlock strategies to turn your beauty passion into a flourishing enterprise.

Introduction

In the world of beauty, creativity, passion, and skill often take center stage. Yet, behind every successful salon, there lies a robust and strategic plan, paving the way for its triumph. Creating a business plan is much like designing a new hairstyle or look. It involves envisioning what you want to achieve, understanding the tools and techniques required, and meticulously crafting until the final result mirrors the initial inspiration. For aspiring salon owners or those looking to elevate their existing business, a comprehensive plan isn't just a page of numbers and forecasts. It's the beauty blueprint to success, detailing every facet of the venture, from its foundational mission to the intricate details of daily operations. Dive in as we explore how to build this blueprint, ensuring your salon doesn't just survive, but thrives in the dynamic beauty industry.

Understanding Your Salon’s Mission and Vision

Every successful business venture begins with a clear sense of purpose, and for salons, this sense of purpose is captured in its mission and vision statements. Think of these statements as the guiding lights for your salon's journey, helping you stay on course during both calm and stormy seas.

1. Defining Your Salon's Purpose and Long-term Goals:

Mission Statement : This succinctly captures why your salon exists and its core purpose. It's about the present – what you do, who you serve, and what value you bring. Ask yourself: What promise are you making to your clients every time they walk through your doors?

Vision Statement : This paints a picture of your desired future. It's aspirational and gives everyone in the salon a clear idea of what success looks like in the long run. Imagine where you want your salon to be in 5, 10, or even 20 years. What impact will you have made? What legacy will you leave behind?

2. Crafting These Statements:

Creating mission and vision statements might seem daunting, but it's an introspective process. Consider your passions, what motivated you to start or run a salon, and the kind of difference you hope to make in the beauty industry.

For a deep dive into crafting compelling mission statements and to draw inspiration from successful salons, visit Noona's comprehensive guide on salon mission statements . They offer invaluable insights and examples that can guide you in molding statements that resonate with your brand's essence.

In conclusion, understanding and articulating your salon's mission and vision is paramount. They don't just serve as internal guiding posts but also communicate to clients, staff, and stakeholders what your salon truly stands for. As you proceed with your business blueprint, refer back to these statements to ensure each decision aligns with your salon's core purpose and aspirational goals.

Market Analysis

Before setting the cornerstone of your salon, understanding the market you're stepping into is pivotal. A comprehensive market analysis allows you to understand the beauty industry's landscape, your target customers, and your potential competitors. This ensures that when you open your salon doors, you're not just another business in the community but a highly anticipated addition.

1. Understanding the Beauty Industry Landscape:

Trends and Forecasts : The beauty industry is dynamic, with new trends emerging rapidly. From eco-friendly products to tech-driven beauty solutions, keeping an eye on these changes ensures your salon stays relevant and ahead of the curve.

Regulations and Licensing : Ensure you're aware of any industry-specific regulations, certification needs, and licensing that could impact your operations.

2. Identifying Your Target Market:

Demographics : Understand the age, gender, income, and other demographic factors of your ideal customer. Is your salon catering to young professionals, teenagers, or perhaps a mature audience?

Psychographics and Buying Behaviors : Dive deeper to know your audience's lifestyle, preferences, and buying habits. Do they prefer organic products? Are they looking for a luxurious experience or quick service solutions?

3. Analyzing Your Competition:

Strengths and Weaknesses : List out local salons and understand what they're doing right and where they might be falling short. This can provide insights into potential market gaps you can fill.

Market Gaps : Once you understand your competition's offerings, identify what's missing. Is there a service, product, or experience that customers desire but isn't available? That's your opportunity to shine.

4. Location, Location, Location :

While understanding your market is key, finding the perfect spot to set up shop is equally vital. The location of your salon plays a massive role in its accessibility, visibility, and overall success. Consider factors such as foot traffic, nearby businesses, ease of parking, and the demographic of the local population. For a comprehensive guide on selecting the ideal location for your salon, delve into Noona's expert advice on choosing a salon location .

To wrap up, a thorough market analysis doesn't just give you a view of the playing field but also offers the insights needed to strategize your moves. With a deep understanding of the industry, your customers, and your competitors, you're poised to make decisions that position your salon for long-term success.

Services and Pricing

In the beauty world, the range of services you offer and their associated pricing can make or break your salon's reputation and profitability. Offering the right mix of services, matched with a pricing strategy that reflects your brand's value and the market's willingness to pay, is a delicate balance to strike.

1. Choosing the Right Services to Offer:

Diverse Portfolio : Depending on your target market, your salon might benefit from offering a wide range of services from haircuts, coloring, and treatments to nails, skincare, and even massage.

Specialization : On the other hand, some salons thrive by specializing in a few niche services, becoming the go-to spot for those particular treatments.

Continuous Innovation : The beauty industry is ever-evolving. Regularly review and update your services to keep up with trends and customer demands.

2. Pricing Strategy:

Competitive Pricing : Analyze what other salons in your area charge for similar services. While you don't want to drastically undercut or overshoot these figures, understanding the market rate is crucial.

Value-based Pricing : Instead of just setting prices based on competition, consider the value you're offering. If you provide a luxurious experience or use high-end products, your prices should reflect that.

Discount Strategies : Occasional promotions or loyalty discounts can attract and retain customers. However, ensure they don't undermine your brand's perceived value.

3. Upselling and Cross-selling:

Maximizing Customer Value : Once a customer is in your chair, there's potential to introduce them to other services or products. Train your staff on tactful upselling techniques to enhance the customer's experience without seeming pushy.

Package Deals : Offering bundled services at a slightly reduced rate can encourage clients to indulge in more treatments, increasing your per-visit revenue.

4. Crafting Your Salon Price List :

Your price list isn't just a utility; it's a reflection of your brand. Its design, clarity, and presentation can enhance the client's perception of your salon. For innovative ideas on creating an appealing and effective price list, explore Noona's detailed guide on hair salon price list ideas .

In conclusion, the services you offer and their corresponding prices play a significant role in defining your salon's brand image and profitability. By aligning them with market demands and your salon's unique value proposition, you pave the way for both satisfied customers and a thriving business.

Marketing and Promotion Strategies

At the heart of every flourishing salon is not just talented stylists and impeccable services, but also an effective marketing strategy. In a world increasingly swayed by digital impressions and word-of-mouth, how you market and promote your salon can be the determining factor in its success. Let's dive into crafting a strategy that makes your salon the talk of the town.

1. Branding:

Establishing Your Salon’s Identity : Your brand is more than just your logo or color scheme. It's the experience you promise, the values you uphold, and the story you tell. Everything from your salon's interior design to staff uniforms should resonate with your brand's essence.

Unique Selling Proposition (USP) : Determine what sets your salon apart. Is it a unique treatment you offer? An exceptional training program for your stylists? Ensure your USP is highlighted in all marketing materials.

2. Digital Marketing:

Website : In today's digital age, a salon without a website is like a shop without a signboard. Ensure your website is visually appealing, mobile-friendly, and contains essential information like services, prices, contact details, and customer reviews.

Social Media : Platforms like Instagram, Facebook, and Pinterest are ideal for showcasing your work. Regularly post before-and-after photos, salon events, promotions, and client testimonials.

Email Marketing : Build a list of client emails to send out newsletters, promotions, or updates. This not only drives repeat business but also helps in fostering a community.

3. Offline Marketing:

Local Advertising : Consider placing ads in local newspapers, magazines, or radio stations. This type of advertising can effectively reach your local target demographic.

Partnerships : Collaborate with local businesses, such as boutiques, gyms, or cafes, for mutual promotions. This could be in the form of cross-promotions, discounts, or sponsored events.

Event Sponsorships : Participate in or sponsor local events, beauty pageants, or workshops. This boosts brand visibility and positions your salon as an active member of the community.

4. Customer Engagement and Loyalty Programs:

Referral Programs : Encourage your existing clients to refer friends and family by offering them incentives or discounts.

Loyalty Cards : Introduce a loyalty card system where frequent visits or purchases earn points, which can be redeemed for services or products.

Feedback Channels : Create channels for clients to offer feedback, whether it's through comment cards, online reviews, or suggestion boxes. This not only provides valuable insights but also makes clients feel valued and heard.

5. Seasonal Promotions and Campaigns:

Themed Packages : Offer packages or discounts during festive seasons, holidays, or even less busy months to boost sales.

Collaborative Campaigns : Partner with beauty product brands to run promotional campaigns, offering bundled products with select services.

In wrapping up, marketing is not just about visibility but also about creating connections. By building a coherent brand, engaging with your audience both online and offline, and offering value through various promotions, your salon is poised not just to attract clients but to turn them into loyal advocates.

Operational Plan

An operational plan serves as the engine room of your salon, ensuring that all parts work in harmony to produce the desired outcome: unparalleled service, satisfied customers, and a successful business. This plan encompasses everything from the location of your salon to the daily management of services and resources.

1. Choosing a Salon Location:

Strategic Location : Your salon's location can greatly influence foot traffic, brand visibility, and accessibility. A location in a bustling area or near complementary businesses (like clothing boutiques or coffee shops) might be ideal.

Demographics : It's essential to ensure that the local population matches your target clientele in terms of age, income, and beauty needs.

Facility Needs : Think about size, layout, and infrastructure. Does it allow for future expansion? Does it resonate with your brand's aesthetic? For a more in-depth guide on pinpointing the perfect location, delve into Noona's expert insights on choosing a salon location .

2. Design and Ambiance:

Interior Layout : Create a space that's both functional for staff and inviting for clients. This includes considering the placement of styling stations, waiting areas, and retail sections.

Brand Consistency : The design should echo your brand's identity, from colors to decor elements, ensuring clients get a cohesive experience.

3. Staffing:

Hiring : Recruit not just based on skills but also on alignment with your salon's culture and ethos.

Training : Regular training ensures that your team is updated with the latest industry techniques and customer service standards.

Retention Strategies : Implement measures to retain top talent, such as competitive compensation, a positive work environment, and growth opportunities.

4. Equipment and Supplies:

Sourcing Quality Products : Whether it's haircare products or skincare treatments, ensure you're using reputable and high-quality brands. This not only affects service quality but also your salon's reputation.

Inventory Management : Implement a system to track product usage, reorder stocks in time, and monitor expiration dates.

5. Daily Operations and Management:

Booking and Scheduling : Use digital tools or salon management software to handle appointments, reduce overbookings, and ensure timely services.

Hygiene and Sanitation : Especially in the post-pandemic world, maintaining impeccable hygiene standards is non-negotiable. Regularly clean and sanitize equipment, stations, and communal areas.

Customer Experience Enhancement : From a warm welcome to post-service follow-ups, ensure every client's journey in your salon is memorable.

For actionable strategies and insights on managing your salon's daily operations, refer to Noona's comprehensive guide on running a successful hair salon .

In conclusion, while vision and strategy are essential, it's the operational plan that brings them to life. Ensuring every aspect of your salon's operations runs smoothly is crucial to creating a lasting and favorable impression in the minds of clients and ensuring your venture thrives.

Financial Projections and Strategy

Your salon’s financial strategy is the backbone of your business plan. While beauty and aesthetics are at the forefront of the industry, the underlying financial projections and strategies are what keep the business thriving. Addressing the cost implications, forecasting profits, and being prepared for various financial scenarios can mean the difference between a thriving salon and one that struggles.

1. Start-Up Costs:

Location and Lease : Depending on your chosen location, the cost of leasing or buying a space can vary significantly. Factor in any modifications or renovations required to tailor the space to your salon's needs.

Equipment and Supplies : From hairdressing chairs to specialized equipment, the initial set-up costs can be substantial. For a detailed breakdown of essential equipment costs, explore Noona's guide on salon equipment essentials .

Licenses and Permits : Ensure you've budgeted for any required business licenses, permits, and certifications.

Initial Inventory : Stocking up on products for treatments and retail. For an exhaustive list and deep dive into the expenses of setting up a salon, refer to Noona's comprehensive breakdown on the cost to open a hair salon .

2. Operational Costs:

Salaries and Wages : This includes compensation for all staff, from stylists to receptionists.

Utilities : Regular expenses like electricity, water, internet, and other utilities.

Maintenance and Repairs : Regular maintenance of equipment and the facility.

Marketing and Advertising : Budget for ongoing promotional activities and campaigns.

3. Revenue Projections:

Service Revenue : Projected income from all the services offered. Consider factors like average price, number of bookings per day, seasonality, etc.

Product Sales : If you retail beauty products, estimate potential earnings from these sales.

Additional Income Streams : This could be from workshops, training sessions, or renting out space.

4. Break-Even Analysis:

Identify the point where your salon's total revenues will cover total costs. Knowing this will provide clarity on when your salon will start turning a profit.

5. Financial Safety Nets:

Contingency Fund : Always have a fund for unforeseen circumstances or emergencies.

Insurance : Invest in comprehensive insurance to protect against potential liabilities or damages.

6. Growth Investments:

Reinvestment Strategy : Determine a portion of profits to reinvest in the business, be it for expansion, training, or introducing new services.

Financial Aids and Loans : Understand the options available should you need financial support to scale or improve operations.

In conclusion, the beauty of your salon won’t just depend on the services you offer or the ambiance you create but also on the sound financial strategies you put in place. With thorough financial planning, you can ensure that your salon not only offers exceptional beauty services but also stands on solid financial ground.

Implementation Timeline

Laying out a strategic business plan is just the first step. Bringing your vision to life requires actionable steps, all tied to a realistic and coherent timeline. Here, we'll detail a typical implementation timeline for setting up a salon, ensuring you hit key milestones efficiently and systematically.

1. Research and Planning (Weeks 1-4):

Market Analysis : Understand your target clientele, study competitors, and identify market gaps.

Financial Forecasting : Detail your budget, source initial capital, and lay out your financial projections.

2. Location and Infrastructure (Weeks 5-12):

Location Scouting : Identify and finalize the right salon location. For insights, refer to the previously linked article on choosing a salon location.

Lease and Licenses : Secure the necessary permissions, licenses, and finalize your lease.

Infrastructure Planning : Layout design, interior decoration, and ambiance creation.

3. Procurement (Weeks 9-16):

Equipment and Supplies : Purchase necessary equipment and set up the salon space. Dive into Noona's guide on salon equipment essentials for detailed insights.

Initial Inventory : Stock up on products and supplies you'll need for both treatments and retail.

4. Hiring and Training (Weeks 13-20):

Job Listings and Interviews : Post job vacancies, conduct interviews, and finalize your core team. For best hiring practices and insights, consult Noona's salon hiring guide .

Training and Orientation : Ensure your team is aligned with the salon's mission and vision. Conduct training sessions to standardize services and customer interactions.

5. Marketing and Launch Preparation (Weeks 17-24):

Branding and Website Development : Create your salon's visual identity, and establish an online presence.

Promotions and Advertisements : Announce your salon's upcoming launch. Consider offering early-bird specials or opening discounts to attract initial clientele.

Final Touches : Ensure the salon space is set up, all equipment is tested, and inventory is organized.

6. Grand Opening (Week 25):

Launch Event : Consider hosting an event or open house. Invite potential clients, local businesses, and media.

Service Trials : Offer complimentary or discounted services on the launch day to give potential clients a taste of your expertise.

7. Review and Iterate (Weeks 26-52):

Feedback Collection : Actively collect feedback from your initial customers.

Performance Analysis : Review financial and operational performance. Identify areas of improvement and growth opportunities.

Continuous Marketing Efforts : Keep the momentum going with regular marketing campaigns, partnerships, and promotions.

To sum up, a clear, structured timeline not only ensures that you stay on track but also aids in visualizing the trajectory of your salon's setup and growth. By breaking down the process into actionable steps, you increase the likelihood of launching successfully and building a thriving beauty haven.

Potential Challenges and Solutions

Every business venture, including a salon, is bound to face challenges. Anticipating these obstacles and preparing solutions in advance can provide a smoother path to success. Below are some common challenges salon owners may encounter and suggested solutions for each.

1. Challenge: Intense Competition

Solution : Carve out a niche for your salon. Offer specialized services, unique experiences, or target a specific demographic that is underserved in your area. This will help differentiate your salon from competitors.

2. Challenge: Fluctuating Client Volume

Solution : Implement a loyalty program, offer off-peak discounts, or create package deals to incentivize repeat business and even out demand. Seasonal promotions can also help attract customers during quieter times.

3. Challenge: Retaining Skilled Staff

Solution : Create a positive work environment, offer competitive compensation, provide opportunities for professional growth, and maintain open communication channels. Recognition and rewards for exceptional performance can also boost morale and loyalty.

4. Challenge: Staying Updated with Industry Trends

Solution : Regularly attend industry seminars, workshops, and trade shows. Also, invest in continuous training for your staff to ensure they stay updated with the latest techniques and trends.

5. Challenge: Managing Operational Costs

Solution : Adopt efficient inventory management systems, reduce waste, and regularly review and renegotiate contracts with suppliers. Utilizing energy-efficient equipment and fixtures can also help cut down on utility costs.

6. Challenge: Negative Reviews or Feedback

Solution : Address any negative feedback promptly and professionally. Use it as an opportunity to learn, improve, and showcase your commitment to customer satisfaction. Encourage satisfied customers to leave positive reviews to balance the narrative.

7. Challenge: Regulatory and Licensing Changes

Solution : Stay informed about local and state regulations pertaining to the beauty industry. Join industry associations and subscribe to relevant newsletters to stay updated on any regulatory changes.

8. Challenge: Technology Integration and Upgrades

Solution : Allocate a budget for periodic technology updates, whether it's salon management software, booking systems, or digital marketing tools. Seek feedback from staff and customers to identify areas needing technological enhancement.

9. Challenge: Economic Downturns

Solution : Build a financial safety net or contingency fund. Diversify your service offerings to cater to different price points, ensuring you can attract a broader clientele during economic slowdowns.

10. Challenge: Health and Safety Concerns (e.g., Pandemic-related shutdowns)

Solution : Implement strict hygiene and sanitation protocols. Offer services that can be adapted to health guidelines, like at-home beauty kits or virtual beauty consultations. Stay informed on health advisories and adjust business operations accordingly.

In conclusion, while challenges are inevitable in the journey of building and running a salon, they can also serve as catalysts for growth and innovation. By anticipating potential hurdles and having strategies in place, you can navigate through them effectively, ensuring your salon's resilience and long-term success.

FAQ (Frequently Asked Questions)

1. Why is a business plan essential for my salon? A business plan serves as a roadmap, guiding you through the various stages of establishing and running your salon. It not only helps secure funding but also aids in identifying potential challenges, streamlining operations, and setting clear goals.

2. How often should I update my salon business plan? A business plan is a living document. While the foundational elements might remain consistent, it's advisable to review and update it annually. Regular updates can also be made whenever there's a significant change in the market or your business.

3. Can I start my salon without a formal business plan? While it's technically possible to start without a formal plan, it's not recommended. A business plan provides clarity, sets objectives, and helps in making informed decisions. Skipping this step can lead to unforeseen challenges and missed opportunities.

4. How can I differentiate my salon from competitors? Focus on creating a unique selling proposition (USP). Whether it's a specialized service, exceptional customer experience, or niche market focus, your USP will help you stand out. Regular market analysis and customer feedback can guide you in refining your offerings.

5. What if my financial projections aren't met? It's not uncommon for businesses to face discrepancies between projections and actuals. Regularly monitor your financials, adapt your strategies, and consider seeking advice from financial experts. It's essential to remain flexible and proactive in your approach.

6. How do I handle negative feedback or reviews? Always address negative feedback professionally and constructively. It provides an opportunity for growth and showcases your commitment to customer satisfaction. Encourage satisfied clients to share their positive experiences to balance out any negative narratives.

7. How can I ensure the health and safety of my clients, especially during uncertain times like pandemics? Stay updated with health guidelines from local and global health organizations. Implement strict sanitation protocols, train your staff, and communicate these measures clearly to your clients to ensure trust and safety.

By delving into this FAQ section, we hope to have addressed some of your burning queries. Embarking on the salon business journey is undoubtedly challenging but equally rewarding. With the right information, guidance, and determination, success is not just a possibility but a surety.

Setting up and running a successful salon is a dream that many aspire to but only a few achieve with flying colors. The journey involves not just passion for beauty and aesthetics but also a deep understanding of the business landscape, keen foresight, and meticulous planning. From conceptualizing a unique value proposition to managing the intricate financials, each step in the salon business journey is crucial.

This comprehensive guide aimed to shed light on key aspects of creating a business plan for your salon, providing insights and strategies to navigate the multifaceted world of the beauty business. By focusing on your salon's mission and vision, understanding the market, pricing your services right, crafting effective marketing strategies, managing operations smoothly, making sound financial decisions, and preparing for challenges, you're not just creating a business — you're building a legacy.

In the ever-evolving beauty industry, staying agile, being receptive to feedback, and continuously learning and adapting are the hallmarks of lasting success. With your dedication, passion, and the right strategies, your salon can not only enhance beauty but also become a beautiful success story in its own right.

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Creating a Successful Salon Business Plan: A Step-by-Step Guide

• January 23, 2024
• For Salon Owners

If you plan to open a salon, besides setting the objectives, you’ll need to know how you’re going to achieve them. Or, in other words, you need a sound salon business plan.

Creating a salon business plan can help you identify specific goals and strategies, as well as provide guidance on how you can reach them and see your business thrive. Knowing how to craft your plan is vital, as it can easily make or break your salon business.

This article will walk you through how to create a salon business plan step-by-step.

Why is a Salon Business Plan so Important?

What is a salon business plan.

A salon business plan is a formal, written statement of the goals you want to set for your business. It explains why you want to set those goals and what your plan is for reaching them. A salon business plan might also include information about the individuals or teams working toward those goals with you.

A good salon business plan gives an overview of where your business is at now and explains where you want to be in the future. It also includes marketing information and research that impact your business plan in general. In fact, think of your salon business plan as a road map where you show where you are now and explain where you’re headed and what it will take to get there.

As you build your salon business plan, it’s important to include information about the process of opening your salon. This information is important because, right from the get-go, you lay the groundwork for success. This groundwork then helps you run and grow your salon business .

Why is a business plan essential for the success of your salon?

A salon business plan is an essential tool for the growth and success of any salon. It is important as it helps you to jot down your ideas and thoughts, arrange them in an organized manner, and develop an overall plan to implement them.

Writing a salon business plan also enables you to identify potential difficulties and challenges that may arise in the future. Once you’ve identified them, you can create a strategy to address them.

Having a business plan is just one of the essential steps to opening your very own salon – to see what other boxes need to be checked, download our Opening a Salon checklist PDF :

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Benefits of having a sound salon business plan

A well-crafted salon business plan comes with many benefits:

• A Greater Success Rate : A good business plan allows you to mitigate risks, make better-informed decisions, and improve your chances of running a successful salon.
• Better Financial Management : A well-written salon business plan includes your budget, financial projections, and expense management. This helps you keep tabs on your salon’s financial health, which leads to financially sound decisions.
• Improved Marketing Strategies : A sound business plan requires you to conduct market research and develop marketing strategies. Then you can identify your target market, predict customer preferences, and adjust your marketing efforts to be more effective.
• Increased Operational Efficiency : A salon business plan ensures that you implement efficient operational processes. This allows your salon to keep running smoothly and leads to increased customer satisfaction.

How to Write a Salon Business Plan in Just 12 Steps

• Write an executive summary
• Create effective mission and vision statements
• Include a salon business description
• Analyze the market and identify your target audience
• Check what your competitors are up to
• Identify products and services you wish to offer
• Craft a sound financial plan
• Tackle management and organization
• Plan your everyday operations
• Think about your marketing strategy
• Think about sales
• Don’t forget to include risks

1. Write an Executive Summary

An executive summary explains what your salon is like and why it is successful. In most cases, a potential investor would go straight to this section to get an idea of what the business is like. If the executive summary isn’t interesting or compelling, they won’t read any further. That makes it an essential section and the first step when writing your salon business plan.

The executive summary should include information that is relevant to stockholders or investors. Include details about your target market, business objectives, and financial projections. Don’t forget to add information about your products and service menu, as well as your vision and mission. The main idea is to let the reader know what’s up, grab their attention, and make them want to keep reading.

Key components

An executive summary of every salon business plan should include the following information:

Business overview : Introduce the reader to your salon. Include information like the name and location, and a brief description of your core values, vision, and mission.

Market analysis : Provide a summary of your research on your target market. Include details about the target market’s trends and demographics. Then highlight gaps or opportunities in the market that you plan to capitalize on.

Your business objectives : Clearly identify your business goals and state what you want your salon to achieve. This might include details like expansion plans, revenue targets, or customer acquisition goals. In this section, you can include any goals that will affect your salon’s growth and success .

Products and Service menu : Give a brief overview of what your salon offers. Make sure your unique features and competitive advantages stand out. Explain what your salon is doing to meet the needs of the target market.

Marketing strategies : Explain your marketing strategy. This includes information about advertising, branding, social media, and so on. If you have any original ideas for how to make your salon stand out from the competition, make sure to highlight them.

Your financial projections : Provide a detailed financial plan overview. Include any information about profit targets, expenses budget, and revenue forecasts. Highlight any achievements or milestones you have reached that prove the financial viability of your salon.

Any funding requirements : Clearly explain the funding requirements for your salon. Explain how much funding you need, how you will use the funds and any other potential sources of funds you have.

2. Create Effective Mission and Vision Statements

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A mission statement is a short explanation of why you created your salon, what your goal is, and how you want to achieve it. Your mission statement is an important part of your salon business plan, so it should be the first thing you see on the page. It’s a good idea to put it at the top of the page where you and others can see it and be reminded of your purpose.

The mission statement gives you the chance to express your purpose and intention. It not only explains why you started the salon, but it also explains what you have to offer. It shows what sets you apart from the competitor salons and captures the spirit with which you run your salon.

In just a few words, your mission statement can determine what drives your business.

Defining your purpose and aspirations

Part of the purpose of a mission statement is to define your purpose and what you offer. Your purpose is the reason you exist and what you have to offer potential customers. To get an idea of what your mission statement should include, ask yourself “Why does my salon exist?”

A vision statement serves a similar purpose. It explains where you want to take your business and what you hope to achieve. It defines your goals and the future impact you want to have. To identify the key points that will go into your vision statement, ask yourself “Where do I see my salon in the future?”

Putting your purpose and your long-term goals in writing plays an important role in having a successful business plan.

How to craft mission and vision statements

Here are a few examples of things you can consider when you are writing your mission statement and your vision statement. This will help you come up with ideas that reflect your identity and direction as a salon.

• Have a brainstorming session with your team. Ask them “What do you think makes this salon unique? What do you love about working here? What do you personally want to achieve?”
• Identify core values. What specific values do you want to uphold in everything you do? Some examples of core values are: creativity, integrity, excellence, diversity, and
• Put your mission statement in writing. Use your core values as a starting point. Then write a short, simple sentence that sums up your salon’s purpose and what you offer to clients.
• Write your vision statement. Write a short, inspiring sentence that describes your long-term goals for the salon and what you want to achieve.
• To make this process easier, consider using AI writing tools to help craft clear and compelling statements.
• Review and refine. Once you have your mission and vision statements written down, take some time to review them. Make sure your statements are both clear and concise, as well as compelling.

In case you need a bit of help, take a look at some brilliant salon mission statement examples sure to inspire you.

Also, writing an effective slogan will only underline the message you wish to send, so make sure you have one ready.

3. Include a Salon Business Description

Company description.

A company description is a quick overview of your business that explains the core values of your company. This part of your salon business plan is all about giving a quick and simple rundown to the readers. It’s meant to give them a general idea of what your business is all about.

Outlining the details

Your salon business description provides all the basic details about your salon. You should include the name of your salon, the location, and your contact information. Also, include the details about the legal structure of your salon. This information is the foundation of the rest of your business description. Thus, it’s important that the information is accurate and up to date.

Company history and brand story

In this section, you should provide some information about the background and history of your salon. When was your business founded? What led to you starting your business? Whatever your story is, this section is your chance to tell it.

Describe what you offer and your USP

This section details what your clients can expect to find at your salon. You can use this section to provide details about new beauty products or services you are offering. If you are working on your own line of products, this is also a good place to mention it and provide an estimated timeline for when it will be available.

Your salon’s USP (unique selling proposition) is what makes your salon stand out from the rest of the market. It is very important to highlight your USP in your business description.

4. Analyze the Market and Identify Your Target Audience

The market analysis shows that you’ve put some serious thought into your target audience. You’ve also done some research to find out what the competitors are missing out on. What’s more, it shows that you really know your area and have made some changes to your approach to fit in.

When you identify and analyze your potential clients, you are better able to adjust your marketing strategy to catch their eye.

Conducting market research

Market research means collecting data about the needs, preferences, and behavior of potential clients. Then you analyze this data. Market research helps you identify who your target market is and what their expectations and needs are. Based on these findings, you can create a marketing strategy that is appealing to that audience in particular.

Conducting market research also helps you identify who your competition is. Knowing this helps you get a good idea of reasonable pricing and ideal locations. Factoring this information in helps you gain and retain clients.

Here are some ideas on how you can make the entire process more interactive and fun (both for you and the participants):

Salon pop-up surveys

Set up a pop-up booth or station near popular local spots and events. Engage with passersby, offering quick surveys with a fun incentive like discount coupons for your salon. This allows you to gather diverse opinions and attract potential customers .

Instagram polls and stories

Leverage the interactive features of social media. Use Instagram polls and stories to ask your followers about their favorite salon experiences, desired services, or beauty trends. Encourage them to share their thoughts and tag friends for a chance to win a free service.

Salon open house events

Host an open house event at your salon. Invite the local community to explore your space, meet your staff, and participate in live demonstrations or mini-makeovers. Use the opportunity to collect feedback and preferences directly from attendees.

Collaborative mood boards

Create collaborative mood boards or Pinterest boards where clients and potential clients can contribute their favorite hairstyles, colors, and beauty inspirations. This not only gathers valuable insights but also fosters a sense of community and involvement.

Beauty trend workshops

Organize workshops on the latest beauty trends. Invite participants to share their thoughts on emerging styles and treatments. This not only serves as a research platform but also positions your salon as a trendsetter in the community.

Community surveys with prizes

Distribute physical or digital surveys within the local community, emphasizing the importance of their opinions. Include a prize draw or a special discount for survey participants, encouraging more people to contribute.

Interactive social media challenges

Create engaging challenges on social media platforms, encouraging followers to share their favorite salon experiences or dream makeover ideas. Use a unique hashtag to track responses and offer prizes for the most creative entries.

Beauty polls and quizzes

Develop entertaining online polls or quizzes related to beauty and salon preferences. Share these on your website and social media to capture audience insights while providing a fun and interactive experience.

By infusing creativity and engagement into your market research efforts, you not only gather valuable information but also strengthen the connection between your salon and the community. The more interactive and enjoyable the process, the more likely you are to receive enthusiastic and authentic responses from your audience.

Identifying behaviors, demographics, and preferences

Once you have information on your target market you can use it to better understand them. Here are a few things to look at:

The behavior of your target market. This refers to the way clients make purchasing decisions, their brand loyalties, and other similar behaviors. In general, behaviors can include anything that affects a client’s decision-making process.

Demographics refer to the characteristics of your potential clients.

Geographic location, educational background, and income can all impact the way clients respond to your marketing strategy.

Even the age and gender of the people you want to draw in can affect which strategies you use. Understanding this will help you create a marketing plan that resonates with the clientele you want to attract.

Then you have to factor in the preferences of your target market. What do they like and dislike? What kinds of ambiance are they drawn to? Which salon services are most popular with this group? What are their thoughts on pricing? What do they look for in customer service? All these factors play their part in whether or not a potential customer chooses your salon.

Client analysis

This part of your salon business plan is all about who your potential clients are. Depending on where your salon is, you might get certain types of people coming in. Or, it might be a mix of different types. You need to include details about who your market is made up of and what they’re like.

Here are a few things involved in conducting a client analysis for your salon:

• Define the scope and the objective of the analysis. Include information about the services and products, the time frame, and the area your customers are coming from.
• Collect data from a variety of sources and analyze. You can use surveys, online reviews, industry reports, interviews, and social media, as well as other sources.
• Identify specific customer groups. This includes demographics, needs, and behaviors.
• Create a profile for each customer group. Include descriptions of preferences, characteristics, expectations, and motivations.
• Evaluate the salon’s current performance. How are you doing with customer retention, satisfaction, and loyalty? How much is your salon profiting?
• Identify specific areas where you can improve customer relationships.

5. Check What Your Competitors Are Up To

A competitive analysis explains your plan for your salon to dominate the market. It is important for your competitive analysis to give a brief explanation of the existing competitors. This can include direct competition, like another salon, or indirect competition. The indirect competition includes any other option for clients to receive the products or services you offer. In this section of your salon business plan, you can bring out the strengths and weaknesses of your competition and explain how your target market views them.

Knowing your competition will help you determine what your own advantages are. Then you can capitalize on those advantages to attract and keep more customers. Once you can pinpoint your unique strengths, you are better equipped to carve out your own place in the market. It will give you a starting point to work from to identify a new way to attract customers. It may also help you find something unique to offer that no one else in the area is offering.

Conducting a SWOT analysis

To be able to succeed and stand out from the competition, it is helpful to carry out a SWOT analysis . SWOT is an acronym for strengths, weaknesses, opportunities, and threats. This analysis will help you diagnose the factors that play a role in the potential and performance of your competition.

What are the strengths of your competitors? Maybe a competing salon has a good reputation and a strong brand. Perhaps they offer a wide range of services or have a skillful team. They might have a good relationship with their suppliers, offer a clean and welcoming atmosphere, or have an optimal location.

What are their weaknesses? Perhaps they offer a limited number of services or have staff that lacks experience. They might be struggling with high overhead costs or have a difficult location. Or they may be on the losing end of high competition and/or struggle to maintain customer loyalty.

Opportunities for a salon include expansion opportunities or new services and products. Other opportunities include increased online presence, partnering opportunities, or new technology and trends.

What is a threat to a salon? Economic recessions, loss of customers to the competition, and negative reviews all threaten the success of a salon. Other threats include supply chain disruptions, legal problems, and environmental and health risks.

6. Identify Products and Services You Wish to Offer

This part of your salon business plan lays out all the different services that your salon will offer its customers. You can expect a wide range of services, from haircuts, styling, coloring, treatments, manicures, pedicures, facials, and many more. Each service is described in detail, including the techniques used, expected results, and pricing structure. We’ve also got a great selection of salon products that you can buy, like hair care items, skincare products, and beauty accessories.

By providing a comprehensive overview of the salon’s products and services, we’re showing that we’re committed to meeting all our customers’ needs and preferences. We want to make sure everyone feels welcome and satisfied with their experience at our salon. This sets the stage for a successful and thriving salon business.

7. Craft a Sound Financial Plan

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Here is where you provide details about the financial history, budget, and projections for your salon. Any potential investors or lenders will be especially interested in this section of your salon business plan.

When writing this section, you should include your financial plan for your salon for the next 3-5 years, as well as your financial history going back 3-5 years. If the salon has income, include financial statements. You should also include potential funding sources and your plan for keeping your salon running.

A good budget is the foundation for any effective financial plan. A budget allows you to distribute resources like time and funds effectively. A good budget also allows you to make better decisions about saving and spending and set goals for your finances.

Start by identifying all the sources of income for your salon. This includes product sales, service fees, and so on. Then identify all the expenses your salon has, like rent, salaries, supplies, and other operational costs. You could make a category for expenses that are always the same, like rent, and another for expenses that vary from month to month, like supplies. This might help you to see patterns and identify areas where you could cut back on some costs.

Once you have identified all your income and expenses, then you can set goals. From time to time, check your progress against your budget to see how you are doing and if you can make any further adjustments.

Income streams

Adding income streams is a good way to increase revenue. The following are a few options you could explore:

• Subscriptions : Charge fees for a set period of time instead of per transaction.
• Advertising : Promote certain brands in-store and online.
• Freemium plans : Certain services are free and “premium” services cost extra.
• Third-party licensing : Give third parties the right to use or sell your patented products.
• Renting or Leasing : Rent out assets (for example, real estate or products) for a price.

As you create your financial projections, factor in the demand in the market and the volume of customers. You should also include your pricing strategy for the products and services you offer. It would be helpful to go back and review your sales history. Then you can isolate specific trends. This will help you make more sound financial decisions moving forward. It would also be helpful to you to do some research on the current market.

Alternative funding options

There are a variety of options when it comes to alternative funding sources for your salon. Each option has pros and cons. Some options include loans, grants, crowdfunding, or partnerships.

Loans may offer somewhat low interest rates. However, it’s important to find out what they require for collateral or how strict the repayment terms are.

Grants can offer funds that you don’t have to repay, but they might have strict eligibility requirements and limits on how you can use the funds.

Crowdfunding can get you funds from a pool of investors, but it might mean sharing control or ownership of your salon.

Partnerships can get you access to extra capital and more expertise. On the downside, partnerships can mean profit-sharing. You may also have to consult with your partners before you make decisions.

Expense management

If you want your salon business plan to have success, it is vital that you manage your expenses carefully. To maximize your earnings, you have to optimize your expenses and control the costs your salon faces. This is the only way to make sure that your salon remains financially stable.

Regularly review your expenses and identify ways to cut costs without sacrificing quality. Be on the lookout for chances to negotiate better deals on supplies and cut out unnecessary expenses. For example, could you choose equipment that is more energy efficient? Is there a way you could maximize the lifespan of the products you use and cut back on supply costs?

Hiring freelancers or contractors

Hiring a contractor or freelancer can have a lot of benefits. These independent professionals can provide you with the expertise you need to do a specific project or task. Some of the benefits they offer include:

• Saving on Costs: Hiring contractors and freelancers can save you money on payroll taxes, training, benefits, and more. You pay for the work they do and depending on your needs you can adjust your budget.
• Greater flexibility: You hire contractors and freelancers only as you need them and for as long as you need. You can adjust the scale of your team depending on the demand of the project and their availability.
• Expertise: Freelancers and contractors bring in fresh ideas and perspectives. Their knowledge of the industry is also an asset to your salon business. They can also carry out tasks that are beyond your skill set or that require special equipment and tools.

8. Tackle Management and Organization

The management and organization plan is the backbone of your salon business plan. It shows how your salon will operate and reach its goals. This section gives an in-depth look at the salon’s management team, including their qualifications, experience, and roles inside the salon. It also explains how the salon will be structured, how decisions will be made, and how different teams will work together.

By sharing a clear management and organization plan, your business plan shows that the salon has capable people and a well-structured system to make it in the competitive beauty industry.

9. Plan Your Everyday Operations

The salon’s operational plan outlines the day-to-day procedures and practices that drive the smooth functioning of the salon. It covers all the essential operational aspects, from staff scheduling and client management to inventory control and quality assurance.

The plan sets out who’s responsible for what, so everyone works together like a team to give customers the best service. It includes strategies for optimizing appointment bookings , managing walk-ins , and handling peak hours efficiently .

Moreover, the operational plan addresses health and safety protocols, emphasizing the importance of maintaining a clean and hygienic environment for both clients and staff. By adhering to the operational plan, the salon can enhance productivity, elevate the overall customer experience, and create a thriving and well-organized salon environment.

Implementing booking software into your salon’s everyday operations

As a forward-thinking salon owner, integrating booking software into your daily operations isn’t just a tech-savvy move – it’s a strategic investment that brings a myriad of benefits to your business.

Booking software simplifies the appointment process, allowing clients to schedule services seamlessly. With real-time updates, your staff can manage and optimize appointments, reducing the risk of scheduling conficts and ensuring a smooth workflow.

Also, booking software enables you to create and manage staff schedules effortlessly. With automated notifications and reminders, your team stays informed, reducing scheduling conflicts and enhancing overall productivity.

Not to mention that clients appreciate the convenience of booking online, as it allows them to be in charge of everything – they can choose services, select preferred staff members, and book appointments at their convenience.

Revolutionize Your Salon Management with Trafft: A Solution Tailored for Salon Owners

As a salon owner, you’re no stranger to the challenges that come with managing a bustling beauty business.

Managing appointments, handling last-minute rescheduling, dealing with overbooking, creating and managing staff schedules, and struggling to be there for your clients in the middle of the night – these are just some of the common pain points you face as a salon owner.

Enter Trafft ! Tailored with your specific challenges in mind, Trafft is designed to transform your daily chaos into an efficient salon experience.

What do you get from Trafft?

• Say Goodbye to Daily Organizational Chaos : Bring order to the chaos with real-time updates and efficient scheduling. Trafft makes organizing your calendar, keeping track of appointments, and managing staff schedules a breeze.
• Minimize No-Shows : With Trafft’s automated reminders, you can reduce no-shows and make sure that each appointment slot is valuable. You’ll receive timely notifications via email or SMS which will help you cultivate a reliable and engaged customer base.
• Reschedule with Ease : When your clients choose a new time, Trafft will send notifications to both of you. Plus, it’ll confirm the booking and update all your calendars. No need to worry about canceling an appointment – Trafft will do it for you!
• Be Available 24/7: Allow clients to schedule appointments at their convenience. Transform your salon into a 24/7 beauty oasis, breaking free from traditional booking hour constraints.

So, are you ready for a salon management revolution? Embrace Trafft and start your transformation now!

10. Think about your marketing strategy

This is your game plan for your salon to bring in new clients and promote your services. A thorough marketing plan , with plenty of marketing ideas and marketing tools you plan to use, is essential. It allows you to stand out from the competition and reach your target market. It also allows you to create connections with your customers and achieve your marketing goals.

This is the most flexible section of your salon business plan . As your business grows and the market changes, your marketing plan will adapt to it.

Marketing strategies that attract and retain clients

It’s important for salon owners and managers to create strategies for advertising and marketing. This helps to attract new customers and retain existing clients , as well as improve the reputation and visibility of the salon. Here are a few strategies you might try:

• Create a salon website or social media account . There customers can get information about your prices, services, location, and hours. Websites and social media accounts are great ways to showcase your work or advertise special events and promotions.
• Try offering discounts, coupons, referrals, loyalty programs, or gift cards . This will encourage customers to visit the salon more frequently and make them more likely to spread the word to friends and family.
• Participate in local events . Are there any festivals, fairs, charity drives, or fashion shows coming up? These events are a great opportunity for the salon to showcase its skills and services. It also gives you the chance to network with potential customers and partners and generate publicity.
• Look for opportunities to partner with other local businesses like spas, hotels, gyms, or restaurants. You can cross-promote services and offer deals or packages to shared customers.
• Send emails or newsletters to customers about your latest news, tips, beauty trends, and offers.
• Ask for feedback from customers . Then use their responses to improve customer satisfaction and quality of service.

11. Think About Sales

In this section of your salon business plan, you should outline the strategies and tactics that will be employed to drive revenue and achieve your salon’s financial objectives.

This section delves into the target market and defines the salon’s unique selling proposition, emphasizing what sets it apart from competitors. It details the pricing strategy for various services and products, taking into consideration factors such as market demand, competition, and the perceived value of offerings.

The sales plan also identifies promotional activities and marketing campaigns that will be executed to attract new clients and retain existing ones. It includes a timeline for these initiatives, along with a budget allocation for marketing expenses. Furthermore, the section discusses techniques for upselling and cross-selling to maximize the average transaction value per customer.

By laying out a comprehensive sales plan, the business plan showcases the salon’s dedication to achieving financial success and growth through a well-structured and effective sales approach.

12. Don’t Forget to Include Risks

The risk management section of the salon business plan addresses the potential challenges and uncertainties that the salon may encounter during its operations.

This section identifies and assesses various risks, including financial, operational, legal, and industry-specific risks. It outlines the proactive measures that will be implemented to mitigate these risks and ensure business continuity.

Strategies such as obtaining insurance coverage, adhering to strict health and safety protocols, implementing sound financial practices, and conducting regular staff training are discussed to minimize potential liabilities. Additionally, contingency plans are detailed to handle unexpected situations, such as economic downturns or natural disasters.

By carefully analyzing and addressing potential risks, the risk management section demonstrates the salon’s commitment to safeguarding its interests and building resilience, providing potential investors and stakeholders with confidence in the salon’s ability to navigate challenges and succeed in the long run.

So, What’s the Secret to Creating a Successful Salon Business Plan?

Running a successful salon requires more than just a flair for aesthetics; a robust salon business plan is equally essential. This plan is not a one-time document but a dynamic tool that evolves alongside your business. It serves as a roadmap, guiding your financial decisions, attracting funding, and steering your salon toward lasting success.

When writing your salon business plan, don’t forget to include a detailed market analysis, your financial projections, operational plan, services and pricing strategy, marketing, and branding.

Be sure to check in on your plan regularly and see how you’re doing compared to your goals.

Remember, a well-thought-out salon business plan is not just a formality; it’s a dynamic tool that empowers you to make informed decisions, navigate challenges, and seize opportunities for growth. Invest time and effort in crafting a plan that aligns with your vision, and watch your salon flourish.

Looking for More Salon-Related Resources?

If you enjoyed this article about creating a successful salon business plan, you should check out these as well:

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• How To Manage A Salon Successfully (Salon Manager Tips)
• How To Run A Successful Salon (The Salon Owner Guide)
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• The Best Salon Slogans and Mottos to Use for Your Own
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FAQ on Salon Business Plan Essentials

Why do i need a salon business plan.

A salon business plan is essential because it serves as a roadmap, guiding you through the process of starting and growing your business.

It outlines your goals, target market, services, pricing, and marketing strategies, helping you stay on track and make informed decisions.

A well-prepared business plan can also be valuable when seeking financing, as it demonstrates your commitment and expertise to potential investors or lenders.

What should I include in the company description?

In the company description, provide an overview of your salon, including the name, location, and ownership structure.

Explain your salon’s mission, vision, and core values, as well as the unique selling points that set you apart from competitors. This section should also highlight the salon’s atmosphere, target clientele, and the specific services you plan to offer.

What is an example of a salon mission statement?

An example of a salon mission statement could be: “At [Your Salon Name], we are dedicated to delivering exceptional beauty experiences that empower our clients to look and feel their best. Our mission is to create an inviting, inclusive environment where creativity thrives, and our team is committed to providing personalized, high-quality services that enhance natural beauty and boost confidence.”

What is the best business structure for a salon?

The most common business structures for salons are Sole Proprietorship, LLC (Limited Liability Company), or Corporation. Each has its own advantages. Sole Proprietorship is simpler but offers less liability protection. LLC combines liability protection with flexibility. A Corporation provides strong liability protection but involves more complex formalities. Consult with a business advisor to determine the best fit for your salon.

How do I choose the right services for my salon?

Choosing the right services for your salon starts with understanding your target market and their needs.

Research your local area and identify gaps in the market or underserved segments. Consider your own skills and expertise, as well as those of your team, and focus on services that align with your strengths.

Offering a mix of essential and specialized services, such as haircuts, coloring, and unique treatments, can help you stand out and attract a loyal clientele.

How do I set salon pricing?

Setting salon pricing requires balancing the cost of providing services with what customers are willing to pay.

Research competitor pricing in your area and consider factors such as your target market, the quality of your services, and your salon’s atmosphere. You can opt for tiered pricing based on the experience of the stylist or offer service bundles to encourage customers to try additional services.

Be prepared to adjust your pricing as your business grows and evolves.

What’s the best way to market my salon?

Marketing your salon requires a combination of traditional and digital strategies.

Word-of-mouth referrals from satisfied clients can be powerful, so encourage customers to share their experiences with friends and family. Utilize social media to showcase your work, engage with potential clients, and share promotions.

Collaborate with local businesses or participate in community events to raise brand awareness. Don’t forget about email marketing, loyalty programs, marketing tools , and targeted advertising to attract new customers and retain existing ones.

How can I ensure a top-notch customer experience?

Providing an exceptional customer experience is crucial for salon success. Start by hiring skilled, friendly staff who share your vision and commitment to customer satisfaction. Offer ongoing training to ensure your team stays up-to-date on industry trends and techniques.

Also, handle bookings professionally, with the help of salon scheduling software and booking apps .

Create a welcoming, clean, and comfortable salon environment, and be responsive to customer feedback. Consistently delivering high-quality services and personalized attention will help you build a loyal client base.

How do I manage salon inventory and supplies?

Effective inventory management is essential for a successful salon. Implement a system to track product usage and sales, ensuring that you always have adequate supplies on hand without overstocking. Regularly review your inventory levels and adjust your ordering frequency or quantities as needed.

Negotiate with suppliers for the best prices and consider implementing inventory management software to streamline the process.

What legal requirements should I be aware of?

Before opening your salon, familiarize yourself with any legal requirements, such as licenses, permits, and zoning regulations.

You may need a cosmetology license, business license, or specific permits for your location. Additionally, ensure your salon meets local health and safety guidelines and complies with employment laws. Consult with a legal professional if you’re unsure of your obligations.

How do I create financial projections for my salon?

Creating financial projections for your salon involves estimating future revenue, expenses, and cash flow. Start by estimating your income from services and product sales, taking into account factors like pricing, target market, and more.

Outline your anticipated expenses, such as rent, utilities, salaries, marketing, and inventory costs. Create a cash flow statement to ensure you have enough working capital to cover your expenses and support your salon’s growth.

Use your financial projections to set realistic goals and adjust your business plan as needed. Regularly review your financial performance and compare it to your projections, making necessary changes to stay on track and achieve your objectives.

How do I measure the success of my salon business?

Measuring the success of your salon business involves tracking key performance indicators (KPIs) that align with your goals.

Common KPIs for salons include revenue growth, client retention, client acquisition, average ticket value, and employee productivity.

Track these metrics regularly to assess your salon’s performance and identify areas for improvement. Additionally, use customer feedback, online reviews , and testimonials to gauge the overall satisfaction of your clients and the quality of your services.

This information can help you refine your business strategies and ensure your salon’s ongoing success.

• 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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Small Business Trends

How to create a salon business plan.

What is a Salon Business Plan?

Once you enter the growth phase, the plan helps you showcase the value of your business to potential investors and new partners.

Why Do I Need a Salon Business Plan?

A good business plan is not just essential in the early stages of your business. It is relevant in the future as well. For example, if you want to expand your business and start a franchise you may need investment. Potential investors or business partners will be interested in understanding your vision and where you think your business will be in the next couple of years. This is where your business plan will be a key document to attract funds.

Getting Started

Writing a salon business plan.

The cover page is useful when you’re trying to provide key information about your business. But you may also choose to skip this since you will share the information in the salon description section.

Table of Contents

Executive summary.

Brevity is key when creating an executive summary. Include high-level growth plans and financial information to hook your reader. If they find the section compelling, they will continue reading for more information.

Mission Statement

Describe your salon.

The company description provides a quick overview of your business. It describes what your company all about and its core values. This section should be brief and straightforward so the readers quickly get some background information.

Research shows relaxed customers are willing to pay 10-15% more than tense clients. Salon environment plays an important part in helping clients feel relaxed. And this makes it important for you to focus on creating the right ambiance.

Services and Product Lines

The services and products you offer to your clientele play a huge part in differentiating your salon from competition. That’s why, it’s important to describe the benefits your products and services provide to customers.

Hair Salon Services

Beauty salon services, what problem does the salon solve, how does your salon provide a solution to the problem.

Identifying a problem to be solved is just the first step. Once you have found the problem, you must figure out how your salon will help solve it for your customers. Otherwise, you will not be able to take advantage of a customer need to offer products and services your clients truly value.

The Salon Business

The hair salon business.

In this specific section, you can describe the hair salon business in detail. How long have you been running this business? How many people do you employ? What’s the unique selling point? These are just some of the questions you must attempt to answer to provide a clear description of your business.

The Beauty Salon Business

Business organization and management model.

The business organization and management model should include the number of employees, their roles, salon partnerships and management structure. It should be transparent in explaining how each employee, partner and vendor play a part in providing customer service and retaining clients for the salon.

Hair Salon Organization Example

Beauty salon organization example, multiple income stream revenue model.

The COVID-19 pandemic has been especially hard on service-based businesses such as salons. Many salon owners suffered huge losses leading to an eventual shutdown of their business. The crisis has highlighted the need for multiple income sources to stay afloat. That’s why many salon owners are adding multiple income streams to their business.

Hair Salon Income Streams

Beauty salon income streams, funding for hair and beauty salons.

Running a successful salon, of course, comes for a price. And as a small business owner, you may not always have the means to execute your growth plans. This is where funding can support your business goals.

Target Market and Customer Analysis

The next step is to understand the market dynamics that will impact your business. Here, you need to do your research well. For example, what are the local area laws and regulations that you must comply with while running your beauty salon? Are there any special permits that you must procure before you open the shop? A comprehensive market analysis will help you find answers and avoid hassles later.

Competition Analysis

Marketing analysis and activities plan.

The products you offer and the prices of your services are important elements of your marketing analysis. You could have the most exciting products that still won’t sell because their prices are exponentially higher than what your competitors offer. Or you could be selling products that customers don’t want to buy. Your marketing plan will help you find the sweet spot where your products and price points make the most sense for your business — and your customers.

Major Targets, Expectations and Milestones to Achieve

If you have additional documents to share more information about your products, services or marketing plan, you may choose to include an appendix. This is an optional section that you may also choose to skip if you feel you have covered everything in the salon business plan.

Tips for Creating a Salon Business Plan

Don’t delay, keep the plan up to date, make sure your business plan is focused.

You may have ten brilliant ideas to take your business to the next level, but it’s easy to get distracted. Make sure your salon business plan is focused so you know where your priorities lie.

What is the difference between a hair salon and a beauty salon?

How do i start a salon business plan, how much does it cost to start a salon business, how much does it cost to run a salon monthly.

While the costs differ based on the area, you should set aside approximately $6,000 a month to run your salon. Some of your monthly expenses would include insurance ($50-$1,000 a month), marketing expenses ($100-$500 a month), products ($100-$600 a month) and cleaning ($50-$200 a month) among others. With a business plan, you will have a clearer idea about how much you need to spend every month.

Is owning a salon profitable?

What is the best business structure for a hair salon.

How to Start a Salon Business

Starting your own salon business is a great way to make money and control your destiny. This article covers how to start a salon step by step, including what you need to do before opening your doors for business so that when the day comes, you’ll be able to jump right into making money.

This article covers how to start a salon step by step, including what you need to do before opening your doors for business so that when the day comes, you’ll be able to jump right into making money.

Importantly, a critical step in starting a salon is to complete your business plan. To help you out, you should download Growthink’s Ultimate Salon Business Plan Template here .

Download our Ultimate Salon Business Plan Template here

15 Steps To Start a Salon Business:

• Choose the Name for Your Salon Business
• Determine the Type of Salon Business You Will Launch
• Develop Your Salon Business Plan
• Choose the Legal Structure for Your Salon Business
• Secure Startup Funding for Your Salon Business (If Needed)
• Secure a Location for Your Business
• Register Your Salon 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 Salon Business
• Buy or Lease the Right Salon Business Equipment
• Develop Your Salon Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Salon Business
• Open for Business

1. Choose the Name for Your Salon Business

The first step to starting a salon is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your salon:

• Make sure the name is available: Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple: The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing: Come up with a name that reflects the desired brand and/or focus of your salon business.

2. Determine the Type of Salon Business You Will Launch

The next step is to determine the type of salon business you will launch. The four main types of salon businesses are:

• Hair Salon : : A hair salon primarily focuses on providing a range of hair-related services such as haircuts, hairstyling, hair coloring, hair extensions, and treatments. Hair salons cater to both men and women and may offer additional services like scalp treatments, blowouts, and specialized haircare products.
• Nail Salon : A nail salon specializes in nail care services, including manicures, pedicures, nail art, acrylic or gel nail enhancements, and nail treatments. These salons often offer a variety of nail polish colors, designs, and techniques to enhance the appearance and health of clients’ nails.
• Spa Salon : A spa salon offers a broader range of services, including skincare treatments, massages, body treatments, facials, and relaxation therapies. These salons aim to provide a holistic experience focused on relaxation, rejuvenation, and overall well-being.
• Beauty Salon: A beauty salon is a comprehensive establishment that offers a combination of various beauty services. In addition to hair and nail care, a beauty salon may provide services such as makeup application, waxing, eyebrow and eyelash treatments, and skincare. Beauty salons aim to provide clients with a complete range of beauty enhancement options.

3. Develop Your Salon Business Plan

One of the most important steps in starting a salon business is to write a salon business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

To enhance your planning process, incorporating insights from a  sample salon business plan  can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your business plan should include the following sections:

• Executive Summary: This section should summarize your entire business plan so readers can quickly understand the key details of your salon business.
• Company Overview: This section provides the reader with information about the background of your salon business and the specific type of salon services you offer. For instance, do you specialize in hair salon services, nail salon services, spa and relaxation treatments, or a comprehensive range of beauty services.
• Industry Analysis: Here you will document key information about the salon industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis: In this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing the services like the ones you will offer?
• Competitive Analysis: Here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan: Your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your salon business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan: Here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team: This section details the background of your company’s management team.
• Financial Plan: Finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your salon business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

4. Choose the Legal Structure for Your Salon Business

Next you need to choose a legal structure for your salon business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the salon business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a salon business together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a salon business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a salon business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your salon business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

5. Secure Startup Funding for Your Salon Business (If Needed)

In developing your salon business plan, you might have determined that you need to raise funding to launch your business.

If so, the main sources of funding for a salon business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a salon business that they believe has high potential for growth.

6. Secure a Location for Your Business

Having an appropriate space holds significant importance for your salon business.

To discover the perfect location, consider the following steps:

• Exploring various neighborhoods while keeping an eye out for “for lease” indicators.
• Getting in touch with a commercial real estate agent specialized in retail spaces.
• Conducting online searches focused on commercial real estate options.
• Sharing your requirements with your contacts and checking if anyone within your network has valuable connections to assist you in securing the ideal salon space.

7. Register Your Salon Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

8. Open a Business Bank Account

It is important to establish a bank account in your salon’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

9. Get a Business Credit Card

You should get a business credit card for your salon business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

10. Get the Required Business Licenses and Permits

To establish a salon business, you typically need several licenses and permits to ensure legal compliance and operation. The exact requirements can vary based on your location and the services you intend to offer. However, here is a general list of licenses and permits you may need:

• Business license – You need to register your business with your state and local municipality. Requirements vary but generally you’ll need to provide your business name, address, owner’s name, etc.
• Salon license – Most states require a special license to operate a salon. This involves submitting an application, paying a fee, and passing an exam on salon practices and regulations.
• Cosmetology licenses – Stylists need to be licensed cosmetologists in the state where the salon is located. This requires completing a certain number of training hours (often 1,500+ hours) and passing written and practical exams.
• Building permits – If you’re constructing or renovating your salon space, you’ll need permits for the construction work being done. Requirements depend on where you’re located.
• Sales tax permit – You need to register with your state department of revenue to collect and remit sales tax. You may also need a local business tax license.
• Insurance – Salon business insurance is highly recommended to cover liability, property damage, etc. Make sure your policy meets your state’s minimum requirements.
• Health department license – Most states require salons to have a health/sanitation license demonstrating you meet safety and cleanliness standards. An inspection is usually required.

So in summary – business license, salon license, individual stylists’ cosmetology licenses, building permits if renovating, sales tax permit, business insurance, and health department license are typical requirements to operate a hair salon legally. Check with your state and local government for specifics.

11. Get Business Insurance for Your Salon Business

Operating a salon business comes with potential risks, and having the right insurance coverage is crucial to protect your business, assets, and clients. Here are some types of insurance you may need for your salon business:

• General liability insurance – This covers any injuries to customers or damage to property that occurs in your salon. It protects you in case of slip-and-fall accidents, injuries from services, equipment damages, etc. Liability limits of $1 million per occurrence are common.
• Professional liability insurance – Also called errors and omissions insurance, this covers negligence claims if a stylist damages a client’s hair or scalp during a service. Limits of $1 million are typical.
• Workers’ compensation insurance – Required in most states, this covers medical bills and lost wages if an employee gets injured on the job. Rates vary based on salon size and location.
• Property insurance – Protects against loss due to damage/theft of your salon equipment, furnishings, inventory, etc. Make sure to get adequate coverage for high value items.
• Business owner’s policy – A BOP bundles general liability, property coverage, and business interruption insurance into one policy. This can be more convenient than separate policies.
• Cyber liability insurance – Provides protection if your salon experiences a data breach, network outage, or if clients’ personal info is compromised.

Check your state’s specific insurance requirements for salons. An insurance broker can also advise on appropriate coverage types and limits based on your operations and risks.

12. Buy or Lease the Right Salon Business Equipment

Here is an overview of some of the basic equipment needed to operate a salon business:

• Salon chairs – Sturdy, adjustable chairs so clients can sit comfortably during services. Often hydraulic or electric.
• Shampoo stations – Specialized sinks and chairs for washing/conditioning hair. Reclining backrests are common.
• Hairstyling stations – Includes mirror, countertop space for tools and products, drawer storage, and chair for client.
• Barbershop stations – Similar to styling stations but may include barber chairs and additional storage for shaving tools.
• Hood dryers – For drying and setting hair. Positioned at individual stations.
• Facial beds – Cushioned tables so clients can lie down for facials, waxing, etc.
• Towel warmers – Heated units keep towels warm for clients throughout the day.
• Salon sinks – Convenient sink areas for stylists to wash tools and hands between clients.
• Point of sale system – Computerized system to accept payments, schedule appointments, and track inventory.
• Disinfection tools – UV sanitizers, barbicide, autoclaves to properly clean and disinfect all implements.
• Hair washing tools – Spray bottles, pitchers, hoses for comfortably washing client’s hair in the sink.
• Storage – Rolling carts, cabinets, shelves to organize products, tools, and supplies.

The specific equipment needs will vary based on services offered, but this covers some of the essentials for operating stations in a professional salon environment.

13. Develop Your Salon Business Marketing Materials

Marketing materials will be required to attract and retain customers to your salon business.

The key marketing materials you will need are as follows:

• Logo: Spend some time developing a good logo for your salon business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website: Likewise, a professional salon business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts: Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your salon business.

14. Purchase and Setup the Software Needed to Run Your Salon Business

Here are some of the key software solutions that are useful for managing and running a salon business:

• Appointment booking software – Allows clients to book appointments online and lets you manage your staff’s schedules. Popular options include Square Appointments, Booker, SalonRunner.
• Point of Sale (POS) system – Ring up sales, take payments, manage inventory. Some popular salon POS systems are Salon Iris, Rosy, Phorest.
• Accounting software – Track income, expenses, taxes. QuickBooks is a common accounting platform for small businesses like salons.
• Payroll software – Pay employees and handle payroll taxes. Examples include Gusto, Patriot Payroll, SurePayroll.
• CRM software – Manage client contacts, appointment history, marketing. Options like Insightly and SlickPie have salon-focused features.
• Inventory management – Track product usage and reorder supplies. Can integrate with POS system. Examples: BeautyTracks, Simplifi.
• Email marketing – Send promotions, announcements, birthday specials to clients. MailChimp is a popular email platform.
• Social media management – Schedule posts and engage with followers on Instagram, Facebook, etc. Hootsuite, Buffer are useful tools.
• Analytics – Measure website traffic, online bookings, sales data. Google Analytics provides good insight.

The right software can help salon owners maximize efficiency, organization, and productivity in day-to-day operations.

15. Open for Business

You are now ready to open your salon business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How Big is the Salon Industry?

The business of beauty and wellness is a fast-growing and dynamic sector in the United States, with over 1.2 million total salon businesses and sales of more than $62 billion annually.

What are the Key Segments of the Salon Industry?

Salons are businesses that specialize in the application of cosmetics to both women and men. Hair salons, nail salons, and skincare treatments. Many salons promote themselves as full-service establishments that provide a wide range of services including haircuts, manicures, waxing, skincare, and tanning.

Hair and Nail Salons

Salons that specialize in hair and nail treatments are perhaps the most common type of salon. Many salons now offer a range of different beauty treatments such as waxing, skincare, manicures, pedicures, tanning, facials, and haircuts to name a few.

Skincare Treatments

There has been a growing interest in skin treatments such as Yon-Ka Oxygene and Oxygen facials, chemical peels, and microdermabrasion. These types of salon treatments can revitalize and rejuvenate your skin, leaving it looking fresh and young.

Facials provide an opportunity to relax while receiving pampering treatments.

Tanning Salons

Salon tanning beds are popular with clients who want to lose or maintain their summer tans. The Tan Co’s Salon Tanning Bed is becoming increasingly common throughout salons today.

Waxing and Skincare Treatments

These services are perfect for women who don’t have the time to do their own waxing and skin care treatments.

Salons provide a wide range of beauty treatments that vary from one salon to another. In addition, services can change rapidly due to new products, changing styles, and increasing demand for certain treatments.

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What external factors affect the salon market.

There are a number of factors that affect the salon market. Some of these include:

• New Beauty Technology and Products – Beauty salons need to keep up with new technologies such as the Beauty Light Pro-face and body machine which uses lasers to reduce acne scars, wrinkles, and stretch marks.
• Changing Styles – New hairstyles are constantly being created, and skin care trends change frequently.
• Competitive Pressures – Salon owners need to know how much competition they’re up against when setting salon prices, choosing suppliers, and marketing their salon services.
• Changing Demographics – demographics play an important role in who will use your salon’s beauty treatments. Consider the effect of an aging population on demand for skincare treatments, for example.
• Economics – The state of the economy has a major effect on the industry. When the economy is struggling, people tend to cut back on discretionary spending which includes beauty treatments such as haircuts and manicures; however, when the economy is thriving, business tends to thrive as well.

Who are the Key Competitors in the Salon Industry?

Direct competitors in the salon industry are other beauty salons and spas within your geographical area.

In order to attract clients, you’ll need to offer competitive pricing and a range of services that will help differentiate you from the competition. Some ways that you can do this include being open earlier, staying open later, have longer operating hours, having faster service times, providing gift certificates or coupons for future services, being more flexible on price, and providing a more luxurious experience with better seating arrangements and customer bathrooms.

Key competitors of the industry also include manufacturers who produce chemicals, equipment, and other supplies required to run a salon business. In addition, home-based 1:1 beauty service providers such as skincare experts, make-up artists, and waxers should also be considered as competitors to your salon.

There are also a number of indirect competitors that you need to be aware of as well including:

Traditional hair salon services such as those offered by Sports Clips, barbershops, ethnic hair salons, Supercuts, and more. Barber Shops tend to offer more traditional men’s haircuts, but they also offer services that women are looking for such as straight razor shaves.

Traditional beauty salon services such as those offered by nail spas, meditation salons, karate dojos, and more. Meditation or wellness salons provide a wide range of treatments including skincare treatments, reflexology massage, reiki sessions, and more.

These establishments can be a challenge because they are often not considered a “serious” competitor by the typical owner who focuses only on competing against other salons. However, it is important to recognize the threat that these competitors can pose because they may attract customers who would typically come to your salon.

What are the Key Customer Segments in the Salon Market?

Your salon’s key customer segments are women who want to improve their appearance. However, it’s important not to forget men as well. In fact, some salons target men with specific haircuts and grooming treatments.

Beauty salons typically attract two main customer segments:

• Customers who regularly visit salons (e.g., weekly or monthly) for beauty treatments such as haircuts, manicures, pedicures, facials, and skincare treatments. These customers regularly purchase products to maintain their beauty treatments at home.
• Customers who only visit the salon occasionally – usually for specific events such as weddings or proms. These customers purchase a few beauty products a year to maintain their salon-purchased treatments such as those who buy shampoo from the grocery store but regularly go to the salon for haircuts.

Having a clear understanding of your salon’s key customer segments will help you create an ideal customer persona that can be used in the following sections when developing your marketing strategy.

What are the Typical Startup Costs for a New Salon Business?

The typical salon startup costs include the following:

• Physical location – You will need to initiate a lease agreement or purchase your salon’s physical location. The cost for monthly rent may vary greatly depending on the type of salon, its size, and location. For example, if you are planning to open your own hair salon in Los Angeles, California, expect the monthly rent to be $4,000 or more while the average monthly rent for a hair salon in Salt Lake City, Utah is around $700.
• Physical buildout – Most salons require renovation work to make the space look appealing and functional. You will need to update the lighting, floors, paint, wall coverings (e.g., wallpaper or large prints), counters, furniture (e.g., hair salon chairs, manicure tables), and salon equipment (e.g., hairdryers, shampoo sinks).
• Salon Equipment – These include the physical tools you will need to perform beauty treatments such as hairdryers, curling irons, straighteners, combs, brushes, rollers, styling products (e.g., hair spray), makeup, skincare products (e.g., facial creams or oils). You may also need to purchase beauty supplies such as cotton balls, napkins, tissues, disposable cups for beverages.
• Salon Operating Supplies – These are the items you will use on a daily basis in your beauty business while others are used less frequently such as cleaning supplies (e.g., disinfectants, bleach), paper towels, and plastic bags for rubbish.
• Salon Furniture – You will need salon furniture to seat your customers while they receive their beauty treatments. Consider purchasing salon-specific furniture rather than using generic furniture you already own such as dining or office tables and chairs.
• Cash Register – You will need a cash register to keep track of your salon’s revenue.
• Salon Supplies & Inventory – This category includes items that are paid for when they are purchased e.g., beauty supplies, inventory-items you pay only after selling them-and stored in the salon. Examples include shampoo, hair color, ties, headbands, cotton balls, facial washcloths.
• Business Insurance – You will need to purchase at least two types of insurance: salon insurance and general liability insurance (also called business owner’s policy). Ensure you contact an experienced independent insurance agent who can guide you through the process.
• Salon Accounting Software – There are many good salon accounting software options available on the market, but many salon owners use less expensive software such as QuickBooks instead of purchasing salon-specific accounting software.
• Marketing and Promotional Campaigns – Besides advertising, there are many ways you can promote your business including flyers, postcards, social media campaigns (e.g., Facebook ads or Twitter promotions), business cards, coupons, direct mailings.
• Legal and Licenses – You will need to purchase legal documents (e.g., business contracts) and licenses (e.g., tax registration certificate).

When you are trying to figure out how much money you want to start a salon, your main costs will be related to the physical buildout of your salon.

Your rent is one of the biggest expenses for new salons, especially if you are located in an expensive city such as New York City or Las Vegas.

Location is everything in the industry so it’s important to choose your salon location wisely. You don’t want to be in a bad location that scares people away or makes it difficult for them to get to your salon.

Getting salon fixtures is a must if you are building the space from scratch. You will need to get shampoo stations, stylist workstations, reception areas, waiting spaces, etc.

Music and entertainment systems are also necessary parts of your buildout.

Things like nail bars can be added later but it’s easier to get those installed on day one.

You will need to get a general business license and apply for your salon license as well as any other state or city-level licenses that you think you might need.

Salon insurance is also essential to protecting yourself and your assets from business liability.

Your budget will look very different depending on the scale of your salon type and design. It’s important that you do not underestimate the costs when planning for your salon space, but also don’t kill your budget either.

Is Owning a Salon Profitable?

Yes, salon businesses are profitable. Some salons have a list of clients who visit frequently and return for the same services over time, while others need to constantly acquire new clients. To remain profitable, you must ensure that your business meets three criteria:

• Your salon is within an accessible location
• You have a good handle on salon finances
• You purchase salon supplies and equipment at the best price possible.

What are the Keys to Launching a New Salon Business?

If you’ve made it to the decision of opening a salon business, chances are that you have been planning for a long time already. It’s essential to be as prepared as possible before opening your doors.

Below is a list of essentials that every salon owner should look into:

• Salon management software – You need to keep track and organize all data related to the salon.
• Concierge services – These can help you with getting clients in the door. If you have an excellent service that people want, then they will be willing to pay for it.
• Salon website – Your salon website is one of your biggest marketing tools. It should look professional and convey a sense of your own salon brand.
• Business banking – Get a business account and debit card as soon as possible. While you’re at it, set up an automatic payment option like direct deposit and online bill pay to make your life easier.
• Salon insurance – From the salon’s property to employee compensation, you need good coverage for everything.
• Marketing plan – Create a salon marketing plan that will work best for you.
• Quality hair and beauty products – Invest in the best salon products. If your products are top quality, then all you have to do is get them out there and let results speak for themselves.

Be efficient with your time and resources so that you can focus on growing your business.

If you start building strong business relationships with your clients and getting their word of mouth, then new clientele will come to your salon without even needing a marketing plan. Everything comes full circle so make sure to spend effort on each part of the process.

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How to Start a Salon FAQs

How do i turn my salon into a thriving business.

It's time to take your dream of opening your own salon and make it become a reality. Follow these simple guidelines to turn your startup into a thriving salon business:

Build Trust

Before people will trust any service or product being sold by you, they need to know who it is that they are trusting. This means that before starting any kind of advertisement campaign about the launch of your new salon you should work on building relationships with potential customers first. 

You might do this by hosting demonstrations for how hairstyling works at an event near them which could also act as an advertisement for how qualified staff members are. If people are happy to buy your services then they are more likely to spread word of mouth about how great your salon is.

Promote What You are Selling

Once you have people's attention with the product or service that you are offering, it is time to use this opportunity to sell yourself. 

Try promoting yourself through targeted online adverts which will let people who would most often visit a salon know that there is something new in town with your advertisement appearing on websites including social media accounts and others where people who might be interested in visiting a beauty salon might spend their free time. 

This kind of press can go a long way especially if your stylists already have experience working at other successful salons which could potentially give an incentive for more customers to come to try out your salon.

Take on Contract Work

Some local businesses in your industry might only be interested in working with the most successful salons, but there is no reason why you can't prove that you are just as reputable. Try taking on contract work for major hair care brands at the launch of your new business, offering them a deal where they give you their business and in return, you promote their products to your customers. This could be extremely beneficial when trying to recruit new stylists especially if they have experience working under the same brands already. People trust familiar names so having these kinds of big-name companies involved with the wonders of your own work for credibility.

Keep Up Quality

Keeping high-quality standards across all aspects of running a salon is important to keep your loyal customers happy and could also potentially attract larger salons to work with you. After all, the more successful you are at running a high-quality salon the more people will want to come to you for their hair care needs. Make sure that everything from the salon equipment used to how well trained every member of staff is working is like clockwork if you want even bigger companies interested in having contracts with you.

Be Consistent

Your salon brand should be recognized before long as one which always keeps up its promises; this kind of reputation can help generate word-of-mouth advertising rapidly. The name 'Salon X' might not mean much now, but after three years of offering high-quality services, it might be known throughout your city as being a salon that consistently delivers the highest quality services. This kind of brand awareness can be a great help when trying to get more contracts from big-name brands.

How Much Does it Cost to Start a Salon?

It is subjective how much money you need to open a salon but most salons will spend around $300,000 for their buildout. If you want to make sure that your salon is successful, you should be prepared to invest at least 6 months’ worth of your salary as well as the cost of your buildout.

What are the Financial Requirements to Open a Salon?

The financial requirements for opening a salon will depend on how much you can personally invest in your business. Salons generally start with developers that want to get into the salon industry, but then there are also models where salons are franchised or managed by existing salon owners.

Small Business Administration loans - These are available for small business owners that meet certain requirements, but it does require a decent credit score and a history of on-time payments. Read more about how to get an SBA loan here.

Equity financing - This generally requires setting up some sort of contractual arrangement between yourself and investors. The more capital you can provide yourself with, the better.

Business loans - There are a handful of bank options available for small business owners that meet certain requirements to get a loan from a bank. Read more about how to get a business loan here.

Partnerships and collaborations - Depending on your experience in the salon industry it might be possible to find a partner that will invest in your salon/salon business.

The more capital you can bring yourself, the better off you'll be long-term. Make sure to budget accordingly before opening your doors.

How Can I Get Clients in My Salon?

It's one thing to have a new salon and a solid business plan, but you need to make sure that people actually come in and try out your services.

You'll want to think about:

• How will you get the word out there? Social media campaigns, flyers on community boards, direct mailers, etc. Try not to use too much advertising or you'll burn through your budget quickly.
• What's in it for the client? Obviously, you want to have happy, satisfied clients who want to come back. This will be easier if you offer excellent customer service and quality products.
• How much are you charging? If your services are affordable, then people won't think twice to book an appointment. If you offer higher-end services, then make sure to have a clientele base that is willing and able to pay for them.
• Will you offer specials? Offering a special for a limited time is a great way to attract new clients and let them feel how much they can save by booking an appointment with you.
• What will your salon environment be like? Make sure that it's clean, peaceful, and relaxing to help clients feel at home.

There is no magic wand or quick fix for getting new clients in the door of your salon business. It takes hard work and patience but if you can provide quality products and services, then your clients will come running.

How Do I Improve Salon Business Operations?

You want to make sure that every part of your salon's operations runs smoothly from massive production to everyday tasks. Things should run as seamlessly as possible between making appointments, scheduling employees, tracking inventory, and receiving payments. That way life is simple for the owner and managers so they can focus on improving important things such as revenue or cost-efficiency. In order to keep your business up and running, you should also follow these steps.

Make sure that everyone is on the same page when it comes to salon documentation. For example, what information goes into the client record? How are appointments scheduled? What are different appointment types? Make sure that all employees know this information so that there aren't discrepancies in how tasks are carried out or who is responsible for them.

Be flexible with scheduling time off for employees. It makes sense to have set times off, but make sure to be accommodating if they need to reschedule their appointments due to an emergency or personal reasons.

What will your salon's payroll look like? Will you hire freelancers or permanent employees? Keep track of each person's hours worked and time off.

Lastly, you should always be trying to improve your salon business operations so that your salon can run as efficiently as possible. This will leave the owner more time for important tasks such as growing their clientele or expanding services offered.

How Do I Grow My Salon Business?

Growing a salon business is hard work but there are some things you can do to help boost your success rate. If you want to grow a salon business, make sure to:

• Focus on branding . Make sure that people recognize your name and what it stands for. This way they will know exactly what they're paying for every single time they walk through the doors of your salon.
• Promote your salon business through social media platforms . This is a great way to promote new products or services and let people know what's going on at your salon.
• Attend industry events . Make sure that you attend as many beauty conventions, expos, and salon expos as possible. These events are a great place for networking with other professionals in the industry which can be very beneficial to promote your brand name.
• Make as many connections as you can . The more people that know your name, the more likely they are to return for future services.
• Be consistent with your pricing and products . If clients feel like they can rely on you then there is a higher chance that they will return to your salon business time and time again.

Where Can I Download a Salon Business Plan PDF?

You can download our salon business plan PDF template here. This is a business plan template you can use in PDF format.

Additional Resources

American Salon

Beauty Cast Network

Beauty Launchpad

BeautyMark Marketing  

Other Helpful Business Plan Articles & Templates

•  Contact Us

• February 27th, 2024
• Business Tips

How to Write a Hair Salon Business Plan

Are you thinking about opening your own hair salon? Or maybe you already have a salon and are thinking about opening another location?  

Well, when it comes to opening a new salon business, knowing how to write a hair salon business plan can make or break your success. The good news is—we’re here to help. 

In this article, we’ll go over the ins and outs of creating a hair salon business plan. This includes everything from market analysis and financial projections to your goals for the future. Having a plan will help you obtain funding and stay on track as you grow. 

Let’s get started. 

Do I Really Need to Write a Business Plan for a Hair Salon?  

You wouldn’t drive from San Francisco to Boston without either a GPS or a map, right? So, you shouldn’t run a business without a plan either. 

A hair salon business plan is a roadmap for your beauty business. Whether you have two chairs or 200, it’s essential for your ongoing success. 

In fact, opening or expanding a business has a lot more at stake than a drive across the country. You may have saved or taken out a loan to start your salon. And you likely have employees or contractors who are dependent on your business sense, too. 

A business plan gets you organized when you’re first starting out or opening a new location. Plus, it keeps you on track as you grow. You can reach or exceed your goals, but you must know what they are first. And you need to have a detailed set of strategies to use along the way. 

Let’s go back to our road trip metaphor.  

Suppose you want to get from California to Massachusetts. First, you figure out how many miles or hours the journey will take. Then, you divide that by how many miles or hours you can comfortably drive in a day. That’s how many days it will take. Finally, you plan overnight stops along the way for each of those days to make the drive doable. 

A salon business plan isn’t much different. You probably have goals for things like: 

• How much gross income you want to bring in 
• How much profit you want after overhead and labor 
• Ideal business model structure (e.g., booth rent vs. commission) 
• Services you would like to offer clients 
• Places where you’d like to open additional salons 

Without a specific business plan for how to make them happen, those are just pie-in-the-sky dreams. You need a more granular approach to turn them into a reality. 

For instance, how much money do you need to make each month to reach your desired net profits? If that’s how much you need to make each month, what do you need to make daily, assuming you’re open five days per week? How many chairs do you need to have? At what capacity do you need to operate? 

Not to mention, you’ll almost certainly need a formal business plan if you want to get financing for your salon. Salon equipment and real estate can be quite expensive. A bank may loan you money to get set up, but only if they see you have done your homework first. 

Lenders don’t want to back a business that is more likely to fail than to succeed. And new hair salons have an average success rate of 50% in the first three years of operation. 

That means half of those businesses will fail. Most fail not because of a lack of talent or ambition but because the owner doesn’t know how to properly run a business. You can be the best hairstylist in the world. But if you consider things like business accounting and marketing, you will likely lose more money than you are bringing in every month. 

Do you want to be in the 50% of new salons that thrive? Keep reading to learn the step-by-step method of developing a business plan for your salon. 

RELATED ARTICLE:  

Owning a Hair Salon: Your Launch Guide  

How to Write a Hair Salon Business Plan: Step by Step  

Below you’ll find information on each section commonly included in a business plan. But first, here’s a tip to help you make the most of these categories. 

Use the SMART method for setting goals. What are SMART goals ? They are: 

• Specific – highly detailed, not vague 
• Measurable – able to be quantified with hard numbers and actionable items mapped out to achieve the goal you’ve set 
• Achievable – doable within the framework of your business model 
• Relevant – related to your salon today, not somewhere else or too far in the future 
• Time-bound – tied to specific dates for end goals and milestones 

Any time you set a long-term or short-term goal, ask, “Is it SMART?” If not, dig deeper to get the details you need to make it work. 

Executive Summary  

Think of the executive summary as the introduction to your salon business plan. It gives brief information about: 

• The purpose of your salon and who it will serve 
• Your business objectives (offer something novel, expansion, etc.) 
• How your salon will be different from your competitors 
• Why you think the business will perform well 

For instance, you could talk about how you plan to open a salon in a busy urban area to cater to downtown employees. Your client demographic is primarily white-collar workers aged 25 to 45. 

Your unique selling proposition , or USP, is what makes the salon special. Say it’s that it will offer 20 and 50-minute appointments to fit into standard lunch breaks. Additionally, you’ll have 10-minute appointments for fast services during coffee breaks. 

Customers can get a quick trim on their fringe or ends. Beard and mustache trims are another rapid service you will offer. Everything can be booked and paid for online to streamline the process and get customers in and out in a jiffy. 

Maybe after work hours, your salon will be open for more traditional appointments. And you’ll have more quickie services available for businesspeople going out at night. They can get an updo, blowout, or style refresh before a date. On Fridays, you’ll offer manicure services too. 

In your business plan, you’d want to outline howyour USP will help your salon be successful. For our example, you might say you believe the salon will do well financially because of three factors: 

• The area is currently underserved by hair salons. 
• You are catering to the needs of businesspeople in your locale. 
• You hired an experienced stylist who’s bringing their clients with them. 

You don’t have to get into a ton of detail yet. This is a proverbial bird’s eye view of your business proposition. You could, however, outline a rough roadmap of how you envision your business will start and where you see it going in one year and five years. 

For instance, perhaps you plan to start with one location and 10 chairs. Five years from now, you want to open two additional locations. At that time, you will add new services like brow waxing and makeup consultations. 

You can mention market analysis in this section, too. Market analysis looks at competition and consumer needs in your niche. However, there will be a place later in your business plan to address this in more detail. 

Remember, your executive summary is an investor or lender’s first impression of your salon business. Therefore, you want to make it shine. 

Company Description  

This section goes into detail about the structure of your company. How long have you been in business? Who are the owners and managers? 

You’ll also want to review how many employees or contractors you plan to have. Will they be employed under W2 status, or will they contract as 1099 workers? 

Will hair stylists pay you a fee for the use of a chair? Will your salon take a cut of their fees? How will tipping be structured? 

For example: 

• Our salon is a startup organization that is not yet in business. 
• It is co-owned by two stylists who participate 50-50 in leadership. 
• There will be 10 chairs in total in the salon. 
• Eight contract stylists will be working as 1099 independent contractors. 
• Contract stylists will pay a monthly chair rental fee and a percentage of their billables to the owners. 
• All tips will go to the employed stylists, with a percentage going to a shampoo assistant. 
• Contract stylists make a commission on products sold in the salon. 
• You will also have two paid receptionists who will be W2 employees. 

You will go into more detail about financials in the Services and Pricing section. But this section should give readers an understanding of the basics of your planned salon operations. 

You can also include funding or investing requests in this section. Again, you will have further opportunity to dive into financials later. But touching on what you need to open or expand gets readers primed as they go through the next four sections. 

Market Analysis  

The market analysis section of your business plan is another area where you can wow readers and make your salon stand out. It answers the question, “Why you, and why now?” 

Remember, you don’t want to fit in with all the other salons in the area. Instead, you want yours to be unique . 

Your hair salon might be unique because of its business model, like the hypothetical one described in the executive summary. Or it could be you have a string of well-known stylists. 

Perhaps you offer extra luxury services and product lines. Maybe you offer great prices. It could be the whole vibe of your salon that’s one of a kind. Maybe it’s a retro nod to the ‘70s or a high-tech glimpse into the future. 

You don’t want to pitch your salon with a kitchen sink-style of features. After all, when you appeal to everyone, you really appeal to no one. But you can list several unique attributes that will give you a competitive market edge. 

In this section, you’ll show what the current market is like in your location. How many other salons are within a mile or two? Who do they cater to? Is there a gap you can fill to capture more market share? 

Be realistic. If everyone who comes through your door is on a tight budget, you can’t offer $300 color jobs. You need to match your services to your demographics. 

If you’ve ever sold a real estate property, you’ve done something similar to a business market analysis. You or your agent prepare “comps” or comparables. The comps show how your property is special, while reviewing what the rest of the area has to offer. 

Whether your salon is brand new or you’re opening a new location for your existing salon business, you may need to conduct market research. You can do this on your own or hire a consultant to do it for you. 

The more populated the area in which you operate, the more complicated market research is likely to be. If you’re in a suburb or rural community, there may only be a few hair salons to compete with. 

Don’t forget to include how your USP and ability to fill a need relates to industry trends. Let’s use the example above. There is a current national trend towards more online conveniences for salon customers. So, offering online payments and booking is going to help you stay at the front of the curve. 

Also, employees are feeling busier than ever these days. They struggle with work-life balance. And many are returning to the office after working remotely for several years. 

Your salon leverages this trend as well by providing stress-free quick appointments that fit into work breaks. Workers can get their hair done over their lunch hour and make better use of their personal time after work. 

If you have an existing business that you’re expanding, you can survey your clientele. Maybe you’re going to a second location because it’s underserved. Or perhaps you’re adding more services because that’s what clients want.  

It’s great to be able to give objective data that says there’s a need for your services. 

Hair Salon Industry Trends for Growing Your Salon Business  

Marketing Strategy  

How do you plan to promote your new salon or additional location? That’s the focus of this section of the plan. 

Some common salon marketing methods include: 

• SEO website 
• Social media accounts 
• Paid advertising 
• Loyalty programs 
• Cross-promotion with other businesses 
• Flyers in area office buildings 
• Bulk mailings with coupons 
• Free makeovers 
• Local news editorial coverage 
• Online review platforms 

An SEO (search engine optimized) website is a great place to start promoting your business. You can add other components later. An optimized website is set up to rank higher on search engines like Google and Bing. 

How do you improve a website’s SEO? 

• Use keywords related to your exact services that clients would search for when looking for a hair salon. 
• Be sure to mention your location multiple times on the website, including your state and local landmarks. 
• Add a blog for value-added content with links to authoritative sources. 
• Get your salon mentioned on other websites and in social media mentions. 

This section overlaps with your market analysis. You’ll be using your unique selling proposition to focus marketing campaigns. Every marketing effort is an opportunity to promote what makes your salon stand out. 

Talk about how you plan to cement the two cornerstones of a healthy salon business: 

• Repeat customers who book appointments regularly 
• New customers who keep things fresh and balance natural attrition 

How to Design and Roll Out a Beauty Salon Rewards Program  

Management and Organization  

Here’s where you can go into more detail about your salon’s company structure and staff payment plan. You can include elements like credentials here, particularly if you or a manager have a business background or education. 

Don’t simply list how you plan to pay workers. Explain why this is best for your salon business’s long-term financial health. 

Are you and any other owners taking a salary? What corporate structure are you using (LLC, S corp, etc.)? Your state may determine how you want to set this up.  

Speaking with an accountant can clarify questions for you, especially about taxes. 

Services and Pricing  

This section of your hair salon business plan outlines the meat and potatoes of what your salon will offer. It is essentially a menu of all the services and treatments you provide. It also includes prices for each. 

You can mention why you chose the pricing model you did. For example, if you’re serving affluent clients in a resort area, you can justify charging a little more. Or you might do group pricing because you serve a lot of bridal parties. 

Don’t forget to add any products you plan to sell. Why is carrying these items beneficial to your business? 

Financial Projections  

Financial projections are the nuts and bolts that lenders want to see. They’ll also keep you on the right path as you grow your salon. 

You’ve already outlined your services and pricing. Now, it’s time to do the math and calculate what that means in terms of income. 

Answer these questions first: 

• What do you expect your salon to gross (total income) in a year? 
• What are your overhead expenses (rent/mortgage, staff, utilities, wholesale supplies, etc.)? 
• What portion of your expenses are due to payroll? 
• Do you have to make capital purchases for equipment? Will these be paid with a lump sum, financing, or rental payments? 
• What is the net profit you expect (gross income minus overhead and expenses)? 
• Where do you predict expenses or income will change over the next few years? 

You want to make your business plan financial projections look truly professional. So, break them down into these categories: 

• Sales forecast – total sales expected over the next several years 
• Expenses budget – all the costs you need to operate 
• Profit and loss (P&L) statement – a 12-month summary of revenue versus expenses 
• Cash flow statement – how cash moves in and out of your business, including monthly payments 
• Projected balance sheet – items that aren’t in your P&L, like interest debt, equity, and other factors that affect the net worth of your business 
• Break-even analysis – what you need to earn (at least) to make your expenses and start turning a profit 

A certified public accountant (CPA) can help you put together this part of your business plan for a reasonable fee. It’s well worth it if it helps you obtain investors or bank funding. 

How You Can Start Writing a Hair Salon Business Plan Right Now  

Ready to get started on your hair salon business plan today? Use these tips right away to make it both convincing to lenders and helpful as an internal roadmap: 

• Write a mission statement. To write a solid executive summary, it’s helpful to first compose a mission statement. This delves into why you want to open your business in the first place. Some people include this in their executive summary. Others keep it private and use it as an inspirational jumping-off point. 
• Include milestones in your financial projections. These are points where you will examine progress and see if you’re on target. Be ready to course correct if you’re not hitting your goals. 
• Compile an appendix. It’s a good idea to include an appendix in your business plan with copies of extra materials. This is an ideal place to include photos of your salon, certifications, licenses, and financial documents. It will keep everything organized for you and make you look more professional to lenders. 
• Enlist help. If you have questions about certain sections of your salon business plan, consider consulting with the appropriate professionals. Paying a one-time fee to an attorney or CPA can save you money and headaches down the line. You could even consider hiring a business manager to deal with office and financial issues. 
• Research your competition. If you’re not sure what services to offer or how you stand out, do some in-person recon. Visit competitor salons and check out influencers on social media. How can you align with service gaps and trends to make the most of your business? 
• Explore salon management software. Salon management software can save you a lot of time and make your job a lot easier. For instance, you can use it to quickly and easily generate reports to keep a pulse on your performance. It’ll also help you with other tasks related to your financial success. The best salon management software can automate appointments, keep track of inventory, and assist with marketing. 

Learn How to Manage a Hair Salon Business with SalonBiz  

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How To Write a Salon Business Plan

By Homebase Team

So you’re thinking of opening a salon business—congrats! Gearing up to owning your own business is a huge step.

But if you’ve never owned a salon before or are simply looking to give your existing business a refresh, you’re probably thinking, “Where do I even start?”  Well, the first step is to write a salon business plan.

What is a business plan for a salon?

A salon business plan is a written document that covers your business goals and how you’re going to reach them.

Every business plan looks different. But for a salon, your business plan will likely include details like who your target customer is, where your salon is going to be located , what salon services you’ll offer, and more. 

Why you need a business plan for your salon

As a salon owner, the thought of writing a detailed business plan might immediately put your stomach in knots. But we promise that the time and effort you take to put a business plan together for your salon will pay off in spades.

Here are some reasons why you should have a business plan for your salon.

To prove your salon business is a good—and profitable—idea

As entrepreneurs, we often have a million great ideas.  But a new business is a big commitment and investment.

Your decision to launch a salon is most likely a great one. But a business plan doubles as a gut check to make sure that you have a solid plan in place. This way, you can open your salon doors with confidence knowing that you’re almost guaranteed to be a success.

To help you reach your short and long-term salon goals

What are your business goals? What steps do you need to take to reach them? How long will it take to reach those goals?

A well-written business plan answers these questions and more. It’s essentially a roadmap that answers all and helps outline how you’ll reach your business goals. Then as you open and grow your business, you can look back and make sure you’re on track!

To help you get funding (and other loans)

Banks and investors often want to see a business plan before they provide you with funding. Having a business plan shows that you’ve done your research, have a plan in place, and that you’re less likely to be a risk.

Even if you don’t need a loan or an investment, financial products like credit cards can be hard to come by if you don’t have a business plan.

To determine your revenue and labor costs

Salons often need multiple stylists and administrative staff. Depending on your goals and the size of your salon business, a business plan can help you determine how many employees you need to hire and train to serve your customers.

Without forecasting your labor costs, you can find yourself with too many customers and not enough workers—or vice versa.

Things to consider before you start writing a business plan for your salon

Before you can start writing your business plan, it’s time to do a bit of brainstorming and research. There are some key questions you’ll want to ask yourself before you start putting pen to paper.

• Where will your salon be located?
• What experience do you have that will help you grow your business?
• Are there similar salons in your area?
• Is there something that will make your business stand out from other salons?

Once you’ve spent some time thinking about these factors, it’s time to get writing.

How to write a salon business plan in 7 steps

Here’s a simple step-by-step breakdown of how to write a business plan and the important tidbits you need to know as you get started.

1. Executive summary

The first thing anyone will read in your business plan is the executive summary. Think of it like an elevator pitch. It’s a brief summary that covers all the most important details so the reader wants to learn more about your business.

As a general rule, your executive summary should cover:

• A short overview of your business venture
• Your salon mission or vision
• Your short and long-term business goals
• Highlights around why \ your salon will be successful

2. Company overview and description

This section should be an overview of your company and what makes it unique. Who are you? What do you do? Why do you do it?

Don’t be afraid to dive into your background and the circumstances that led to you wanting to start your salon business. This is your opportunity to tell your story and share what makes you and your business special as an entrepreneur.                                                                                                                     

3. Market analysis

There are almost a million salons in the US—and that only covers hair salons. The thing about salons is that they can be similar and still be successful. But it’s important to understand how your particular salon will stack up. A market analysis looks at all the competing salons in your region—and beyond—to help you understand your positioning in the market. This then influences everything from your pricing strategy, your service offering, or even your location. 

For example, in your market analysis, you might find that you fall into the category of a premium salon, which means you’ll need to target a more affluent market. Or you might find yourself looking in an oversaturated area, so you’ll want to choose a location with less competition.

4. Salon business offerings

Not all salons are alike. For example, your salon may specialize in blowouts. Or you may have a full-service nail salon. 

Before you open, you should have a clear understanding of the services and products that your salon business might offer. Think of this section of your business plan as a menu of services that your potential customers can choose from.

5. Salon operations and management

This is where you’ll talk about the operational side of your business. Some things to think about around salon management might include:

• Will you rent out chairs to stylists or will you hire them as employees? 
• What will your business hours look like?
• How will you schedule salon appointments ?
• What overhead costs will you have?
• What salon management software will you use?

6. Marketing and public relations (PR) strategies

As much as we wish customers would appear out of thin air, for the most part, you need to drum up excitement for your business. That’s marketing. 

In the marketing section of your business plan, you’ll want to Include details such as your brand messaging, how you’ll reach potential customers, and what marketing and PR investments you plan to make.

7. Financial projections

Calculating your financials isn’t the most glamorous part of owning a salon business, but it’s one of the most important.

When writing a business plan, you need to review your short- and long-term financial projections. This is essentially an estimate of how much money you expect to spend and make over the course of the next few years. 

The goal is to show that you’ll have a profitable business. And if not, it allows you to tweak your business strategy so you can create a financial plan that you feel comfortable with.

Free salon business plan template

Need some help getting started? 

We’ve put together a free template that covers all the basics. Use this as a starting point, so you know that your business plan is comprehensive and includes everything you need ahead of opening day.

Download your free salon business plan template here.

Business tools as sharp as your shearing scissors

Once you have a salon business plan, it’s time to make a plan for hiring and managing your employees. Homebase is the all-in-one employee management tool loved by 100,000 + salons and small businesses. 

With Homebase, you can:

• Schedule employees for your salon in just a few clicks.
• Track employee hours and run payroll from one app.
• Stay on top of employee compliance and labor laws with expert HR guidance.

Salon business plan FAQs

Why should you create a business plan for your salon even if you aren’t looking for financing.

A business plan is more than just a document to help you secure financing for your salon business. It can help you organize your business strategy and outline the steps needed to reach your business goals.

What is the best way to create your salon business plan?

The best way to create your salon business plan is by following these steps:

• Write an effective executive summary.
• Create a company overview and description.
• Conduct a thorough market analysis.
• Outline your services and business offerings.
• Decide how you want to manage your salon business.
• Make a plan for marketing your business.
• Put together your financial projections.

You can also use our free salon business plan template to get started.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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Starting a Hair Salon Business: A Step-by-Step Guide

Are you a trendsetter with an eye for style and a passion for beauty? If so, starting your own hair salon business might be the perfect venture for you. Turning your love for hair into an effective business is an exciting endeavor that requires careful planning, dedication, and a flair for creativity.

From crafting your salon’s unique identity to attracting a loyal clientele, here’s a step-by-step guide to help you kickstart your journey in the world of hairdressing.

Table of Contents

Dreams and Visions

Close your eyes and imagine the hair salon you’ve always dreamed of. What kind of atmosphere do you want to bring to life? What services will make it stand out? Begin by clearly defining your vision. This vision will be your guiding light as you navigate the steps of launching your hair salon. Whether you’re aiming for a sophisticated and upscale ambiance or a friendly and cozy vibe, the environment you create will shape the lasting impressions your clients take away.

Start by envisioning the emotions you want your clients to experience when they walk through your doors. This sense of direction will be your compass as you tackle the practical aspects of getting your hair salon up and running. Regardless of whether you’re striving for an elegant and refined setting or a relaxed and approachable atmosphere, the backdrop you establish will play a pivotal role in the memories your clients form.

Read more about: Salon Insurance Costs: A Closer Look

Market Research

Before you take the plunge, it’s important to do some homework on your local market. Get to know the people who might be interested in your salon. What do they like and what do they need? Take a close look at the other salons around – what are they doing that seems to be working, and how can you set yourself apart? This information will help you fine-tune your services and make sure you catch people’s attention.

Start by looking into the folks you hope will visit your salon. Understand their preferences and requirements. Investigate the other hair salons nearby – what strategies are making them stand out, and how can you do things differently? Armed with this knowledge, you can adjust your services to fit what people want and offer something that’s distinct.

Craft a Business Plan

Think of a business plan as your navigation guide. It’s like having a map that shows you how to get where you want to go. Lay out the structure of your salon, the services you’ll offer, how much you’ll charge, who you’re trying to reach, and how you’ll let them know about your salon. It’s also important to estimate how much money you’ll need to start and run your salon, including things like equipment and bills.

Having a clear plan is super helpful. It’s not just for you to make decisions based on, but it’s also like showing off your idea to people who might give you money to start. They’ll see that you’ve thought everything through and that you’re serious about making your salon an achievement. It’s like having a detailed recipe for a yummy dish – you’ll know what ingredients you need and how to put them all together.

Beauty Salon Place

Picking the right spot for your salon is really important. Think about how many people walk by, how easy it is for them to get there, and how close it is to the people you want to visit. Being in a busy spot near stores or where people live might be just right. Your salon’s spot should show what it’s like and be convenient for the people who might come.

Read more about: Symphony of Space: Harmony in Beauty Salon Floor Plan Composition

Legalities and Licensing

Steer through the legal stuff. Get your business officially registered and gather the licenses you need. Stick to the rules about health and safety that are set. Depending on where you are, you might also need special papers to offer services like coloring hair or using chemicals.

Dealing with the legal aspects is important. Go through the process of getting your business registered officially and acquiring the necessary licenses. Make sure to adhere to the health and safety regulations that are in place. Depending on where you’re located, you might need specific certifications to offer certain services like hair coloring or treatments involving chemicals.

Stylish Interiors

Create a space that’s attractive and matches your salon’s style. Think about how it looks – the decorations, colors, and arrangement should make people feel comfortable. Spend on good furniture, chairs that are cozy for styling, and mirrors that show well. Keep in mind, the surroundings you make add to the entire experience.

Craft an environment that’s appealing and in line with your salon’s theme. Think about how the space will look – the decorations you choose, the colors you use, and how you arrange everything should make people feel at ease. Spend on getting good-quality furniture, chairs that are comfortable for clients, and mirrors that provide good lighting. Keep in mind, the setting you create plays a part in shaping the overall experience.

Equipment and Products

Get all the important things you need for your salon – like really good scissors, hairdryers, and stuff for styling hair. Team up with suppliers that are well-known to make sure your salon gives great services. Think about using products that are good for the environment or don’t harm animals, so you can attract more types of customers.

Equip yourself with the necessary tools for your salon – high-quality scissors, hairdryers, and products used for styling. Collaborate with reliable suppliers to ensure your salon delivers top-level services. Consider incorporating eco-friendly or products that don’t involve animal testing, as this can make your offerings appealing to a broader range of clients.

Building Your Team

Putting together the best team is crucial. Search for hair stylists who are licensed and really good at their job. It’s important that they also believe in the same things your salon stands for and looks like. Being really good at treating customers well is also a big deal. The way your team interacts with customers shapes the whole experience in a big way.

Creating your team is a big deal. Find licensed hair stylists who are skilled and enthusiastic. They should match the values and the look of your salon. Remember, the way your team members treat customers plays a huge role in how the whole experience comes together.

Grand Opening Spectacle

Kick off your salon with a big splash. Arrange a grand opening event to showcase your services to the local community. Provide special offers or free consultations to catch the attention of potential customers. Social media platforms can play a significant role in spreading the news and generating anticipation for the big day.

Marketing Magic

Read more about: Style Reimagined: Fresh Hair Salon Grand Opening Concepts

Client Loyalty Programs

Client Loyalty Programs are designed to show appreciation to customers who consistently choose a particular business for their needs. These programs offer various benefits to valued clients, encouraging them to stick with the brand. One common approach is through membership discounts, where loyal customers receive special reduced prices on products or services. Businesses might also employ referral incentives, where existing customers are rewarded for bringing in new clients.

By implementing these loyalty programs, companies aim to cultivate a steady and enduring customer base. This is crucial for the sustained growth of the business over time. When customers feel valued and enjoy special privileges, they are more likely to remain loyal. This consistency in customer patronage provides a stable foundation for the business, fostering trust and ongoing positive relationships.

Continual Education

By attending these educational opportunities, your team gains insights into fresh methods and approaches, which can be applied to the services your salon offers. This ongoing learning process ensures that your salon remains relevant and attractive to clients. People are drawn to innovative and modern services, which can set your salon apart from competitors.

Continuous education not only benefits your team but also contributes to the overall growth of your salon’s reputation. It showcases your commitment to excellence and dedication to providing the best possible experience to clients. This investment in learning leads to higher customer satisfaction and loyalty, which ultimately strengthens your salon’s position in the industry.

Feedback and Adaptation

Creating an open dialogue with your clients is essential. Encourage them to share their thoughts openly, whether positive or constructive. This dialogue helps build trust and a stronger relationship between your salon and its clients. It also gives you a chance to learn from any mistakes or shortcomings and implement changes to prevent them from happening again.

Financial Management

Effective Financial Management is essential for the stable growth and health of your business. It involves carefully overseeing your financial situation, including how much money comes in (revenue), how much goes out (expenses), and the difference between them (profit margins).

Budgeting is a key aspect of financial management. It means planning how you’ll use your money in the most efficient way. Allocating your resources wisely ensures that you’re not overspending in certain areas, which can lead to financial troubles.

By managing your finances well, you’re setting up a strong foundation for growth. Sustainable growth means your business can expand without risking financial instability. This involves making sure that the money you’re earning is greater than what you’re spending and that you have a financial buffer for unexpected situations.

Passion and Perseverance

The path of starting a salon isn’t always smooth; you’ll encounter obstacles that might test your resolve. However, your unwavering passion will help you overcome these challenges. Passion is like the fuel that keeps your determination burning bright, inspiring you to find solutions and keep moving ahead.

Starting a hair salon is not just about cutting and styling hair – it’s about creating an experience that transforms the way people feel about themselves. By combining your creative vision with business acumen, you can build a salon that becomes a hub of beauty, self-expression, and connection in your community. So, grab those scissors and start shaping your dream into reality – the world of hair awaits your magic touch.

Frequently Asked Questions

Q: how do i go about selecting the right location for my hair salon business.

A: Choosing the ideal location involves assessing foot traffic, accessibility, and your target demographic. A bustling area near shopping centers or residential neighborhoods often proves advantageous. Your salon’s setting should align with its atmosphere and cater to your intended clientele.

Q: What licenses and certifications are necessary to start a hair salon business?

Q: what are effective marketing strategies for attracting customers to a hair salon business.

A: Creating a strong online presence through a professional website and active social media profiles is essential. Share high-quality visuals of your work, engage with your audience, and offer promotions to entice potential clients. Encourage satisfied customers to leave reviews and leverage word-of-mouth referrals to build your reputation.

To learn more on how to start you own salon checkout my startup documents here.

Hi! I am Shawn and I am a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online salon business resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a salon business owner, I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.

Salons For Sale

Opening a salon: a comprehensive guide to a successful hair salon business.

Opening a salon is an exciting venture, offering a chance to provide great work opportunities to salon professionals while providing a valuable service to your community. But where do you start? From creating a hair salon business plan to hosting a grand opening, this comprehensive guide will walk you through the steps to launch your salon successfully.

Hi there and welcome to the ultimate salon owner’s platform, Salonspa Connection ! My name is Susan Wo s, I work with salon owners across the world with recruitment and selling salon businesses . I put together this guide to help you understand how to navigate how to open a salon!

Key Takeaways

Create a comprehensive salon business plan and define your niche to stand out.

Conduct market research, set financial goals & obtain licenses/permits before opening.

Design an inviting atmosphere with essential equipment & hire the right salon staff for success!

Table of Contents

Creating Your Salon Business Plan

The initial step to open a salon involves writing a business plan . The beauty industry includes hair salons, nail salons, barber shops and spas is worth around $532 billion a year. To succeed in this competitive market, you need a well thought out plan. Think through your business model, do market research, and get your head around financial goals.

Connecting with fellow business owners in the hair salon industry provides valuable insights and advice, especially when starting your own salon as a new business. There are ton of great Facebook groups chock full of owners, ready to give advice.

We also recommend booking a free call with a salon coach who aligns with your values and goals as a salon owner.

Defining Your Niche- Starting a Salon with Specifics in Mind

When planning the kind of salon you want to open and the culture you want to create, it’s important to consider your target beauty salon clientele. Tailor your products and services to suit the specific needs of your target customers, and be open to adjusting your offerings should things change.

By defining unique or niche services you set your salon apart from other salons in the area. This will not only make your salon stand out but will also help streamline your marketing efforts. Targeting your ideal salon clients, (and employees), is key to exponential growth!

Conducting Market Research When Opening a Salon

Doing market research helps to identify potential opportunities, such as buying an established salon , reduces business risk. Outpacing the competition will be one of your top concerns for not only salon clients but for employees as well.

You can conduct market research by joining salon owner and manager groups on social media, attending trade shows, and keeping an eye on industry trends.

Assessing the results of your market research will help you spot patterns, assess the competitive salon landscape, and uncover hidden growth opportunities.

Setting Financial Goals Before You Open a Hair Salon

Setting realistic financial goals is vital for your salon’s future. This includes projecting revenue, calculating startup costs, and determining your break-even point.

You should also consider leasing or purchasing salon equipment. Styling chairs and stations can be purchased at wholesale prices or through equipment financing to save on start up expenses. By working with an advisor or utilizing financial tools, you can ensure the long-term financial health of your salon.

Legal and Licensing Requirements

Before opening your salon, you must navigate legal and licensing requirements, such as registering your business and obtaining necessary licenses and permits. Ensuring you meet these requirements will help protect your salon’s success and avoid potential legal issues down the road.

Registering Your Business

To register your business, you’ll need to officially set up your salon with the state regulatory board and obtain an Employer Identification Number (EIN) from the IRS. This unique, nine-digit number will be used for tax purposes and is an essential step in legitimizing your salon.

Obtaining Licenses and Permits

Licenses and permits, including a business license, are official documents issued by government authorities that grant permission for your salon to operate. Depending on your location and the type of salon, you may need cosmetology licenses, health and safety permits.

To meet the necessary requirements you will need to pass cosmetology inspections to maintain a compliant and successful salon.

Choosing the Perfect Location

The perfect location for your salon space greatly influences visibility. Getting access to clients and giving the competition a run for their money is an essential factor to consider. Jo Hopper, a salon owner with 15 years of experience, recommends finding a great spot with ample parking to make it easy and enticing for clients to visit your salon.

Evaluating Potential Locations

When considering locations for your salon, think about factors such as foot traffic, nearby businesses, and growth potential. Assign numerical values to these factors and make an informed decision on the best location for your salon.

Lease Negotiation and Property Acquisition

Once you’ve chosen the perfect location, it’s time to negotiate lease terms or purchase the property. This process may involve working with real estate agents, salon brokers or attorneys to ensure a smooth transaction.

Make sure to keep future growth in mind when negotiating your lease or purchase agreement, so your salon has the flexibility to expand as needed.

Designing and Equipping Your Salon

With your location secured, it’s time to design and equip your salon with an inviting atmosphere and essential equipment. This includes creating a comfortable and welcoming environment that reflects your salon’s brand, culture and aesthetic.

You will likely need to purchase necessary equipment like styling chairs and stations. Hiring a designer or space planner can help you achieve the perfect layout and design for your salon.

If you are opening a salon suite, utilize this checklist to ensure you have everything you need. Read more about the salon software technology needed to run an efficient salon and get the right insurance to protect yourself against the unforeseen.

Creating an Inviting Atmosphere Salon Owners Would Envy

A salon with an enticing atmosphere plays a huge role in attracting and retaining both clients and potential employees. Consider the colors, design elements, furniture, and decor that best capture your salon’s brand and aesthetic.

Additionally, think about the music, scents and the overall “feel” of the salon. Create a pleasant atmosphere in line with your salon’s identity- the kind of salon you would want to spend time in.

Purchasing Essential Equipment

When purchasing equipment to provide top-notch hair services, such as styling chairs and salon stations, consider buying at wholesale prices or exploring leasing options to save on initial expenses.

To make sure your salon operates efficiently and effectively, ensure you have all the tools and supplies needed. Hair dryers, shears and other personal items tend to come with the hair stylists that will be working for you.

In a booth rental salon business model, you will supply much less tools and equipment. An employee based salon, spa or barbershop will require you to supply most everything for employees.

Assembling Your Salon Dream Team

Engaging the appropriate team of stylists and support staff is imperative for the success of your salon. Focus on aligning your team with your salon’s culture and values, and invest time in the hiring and training process to ensure your team provides the best service possible.

Hiring Stylists for New Salon Owners

When hiring stylists, look for individuals with the right personality, skill level, and compatibility with your salon’s culture and values. Vet salon pros carefully to ensure they have the necessary qualifications to provide quality service to your clients.

Get familiar with salon recruiting resources , networking events, classes, and trade shows that can help you connect with talented stylists.

Traditional Marketing Tactics When You Open a Hair Salon

Don’t underestimate the power of traditional marketing tactics to build your salon business. Marketing efforts such as local advertising, partnerships with local businesses, and referral programs. These methods can help you build relationships within your community and draw in more customers.

Combine traditional and digital marketing efforts to create a well-rounded marketing plan that effectively reaches your target audience.

Launching Your Salon

As you prepare to create a business plan for your salon’s launch, ensure all aspects of your business are ready, from staff training to inventory management.

A successful launch includes a memorable grand opening event that generates buzz and attracts new clients, ultimately contributing to your salon’s success.

Preparing for Opening Day

Prior to opening day, ensure your staff is well-equipped with necessary training and your inventory is well-organized. This includes training in customer service, product knowledge, and safety protocols.

Proper organization and preparation will help ensure a smooth and successful launch, setting the stage for your salon’s future success.

Grand Opening Event Get in Front of Business News Daily

A grand opening event is an excellent opportunity to showcase your salon and generate excitement among potential clients. Contact the news or local media channels for coverage to get in front of a ton of new people. Here are some tips to plan a memorable event:

Offer refreshments, discounts and giveaways to guests.

Organize activities that highlight your salon’s unique offerings.

Promote your grand opening event through social media, email campaigns, and word of mouth.

Opening a salon is an exciting and rewarding journey. By following this comprehensive guide, you’ll be well on your way to launching a successful salon that reflects your unique vision and serves your community with exceptional service. Remember, preparation is key, so invest time in planning, training, and marketing to ensure your salon’s long-term success.

Frequently Asked Questions

Is owning a salon profitable.

It appears that owning a salon can be profitable, but may not be the most lucrative business. How much you can make depends on the salon business model you choose.

The average salon profit is 8.2%, but it can range from 2-17%. Success in a salon requires a combination of effective hairstylist recruitment and business management.

How much money should you have to start a hair salon?

Starting a hair salon typically requires an investment of at least $40,000 for taking over an existing salon or up to $500,000 to build one from the ground up.

What are some essential steps to take before opening a salon?

Before opening a salon, it is essential to create a business plan , obtain necessary licenses and permits, select the perfect location, design and equip the salon, assemble your team, and market the business.

How can I effectively market my salon?

Tap into both online and offline marketing channels. Social media, local ads, collaborations with other businesses nearby, and referral programs, help to effectively market your salon.

What should I consider when choosing a location for my salon?

When deciding on a location for your salon, think about the foot traffic, surrounding businesses, and potential for growth in the area. Make sure to research thoroughly to find the best spot for your business.

Best of luck to you in new salon ownership!

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10 Best Nail Salon Franchise Opportunities for 2024

If you are considering opening a nail salon , you need to decide whether to join a nail salon franchise or go alone as an independent nail technician. Franchising can be a great way to start in the nail care industry.

What You Will Learn

We will learn about some of the best nail salon franchises, pros and cons of nail salon franchise and overall costs.

Jump to The Section You Like

Pros and cons of nail salon franchising, how much does a nail salon franchise cost, 10 top nail salon franchise opportunities.

If you want to know if joining nail salon franchises is right for you, it is important to first look at the risks and benefits faced by franchisees of nail salon chains.

Advantages of Joining a Nail Salon Franchise

High-profile Brand. While new nail salons often need to build brand awareness and customer base from the ground up, a franchise can be a shortcut to a marketing boost with the support of an existing, trusted name.

Customer Base. Nail salons that are part of a franchise chain can rely on a name familiar to customers almost everywhere. This reduces initial advertising costs, attracts customers on the first service appointment, and can bring higher profits and better growth to your location than an independent nail salon when it first opens.

Business Management Support. Franchisees can expect to receive professional development opportunities for management and employees, as well as a business network that will provide advice and free assistance to help run day-to-day operations ( nail salon equipment , training materials, business plans, and supplies may also be included in the fee ).

Bulls Stock Buying. An advantage of franchise businesses is that there is no need to replenish inventory of your nail products individually. In addition, because the entire franchise network, either regionally or in several locations, buys in bulk, the total amount charged by suppliers to individual companies when ordering goods is reduced, resulting in lower-than-usual prices.

Getting Started with Little Experience. As part of a successful nail salon chain, franchisees receive great assistance with advertising, sales process, and basic nail salon management .

Tested Business Models. Nail salon franchises tested our business model in multiple locations and have perfected manuals on how to operate efficiently, marketing strategy, customer satisfaction feedback management, and salon hygiene approach to success in the industry, making it a safer investment.

Low Risk of Failure. Nail salon franchises have a lower risk of failure than independent businesses. Partnering with a well-known full-service nail salon chain can be an excellent marketing tool to maximize your initial investment.

Freedom. Nail salons and their owners are part of a larger support network and can access various resources that independent nail artists cannot.

Profitability. One of the advantages of joining a franchise is that you already have a space in the nail industry, customers are familiar with your services and products, and the franchisee can benefit from that visibility and the customers you bring.

Disadvantages of Nail Salon Franchising

Let's look at the most common disadvantages that prospective franchisees need to understand before making the initial investment.

The Initial Investment. Popular nail salon chains, even small franchises, usually require an initial investment (or franchise fee) to join. The cost can vary depending on the franchise opportunity and location. You can always look for a co founder to help you meet the financial requirements of your new business.

Rules and Policies. Some franchise agreements require compliance with professional standards, such as hours of operation, advertising, and holidays.

Creative Restrictions. Franchised nail salon do not necessarily have artistic control over their layout, website, nail salon design , unique services or the music they play, which can be difficult to address.

Monthly Fees. Depending on the franchise agreement, there may be ongoing costs such as royalties and training fees.

Potential Competition. Because of the variety of interests in a nail salon chain, you may be forced to deal with managers or employees you don't like.

You Don't Own the Brand. Franchising is great, but it does not give you the opportunity to build your business under your own brand, which can make it harder to get out of doing so later.

Let's take a look at some average franchise fees and what they cover.

Franchise Fee

This is the initial investment a franchisee makes to join. Most nail salons have initial franchise fee ranging from $20,000 to $50,000.

In return, you can set up and market your nail salon with the company brand name, business systems, training materials, staff uniforms, and anything else they offer (such as a website).

If your company buys in bulk or contracts with vendors, you may get discounts on nail supplies and retail inventory.

If you are opening multiple units or locations simultaneously, you may be eligible for a discount on this initial cost.

Opening Inventory

This is the product required to open a new nail salon. Typically, nail franchise products must be purchased and sold, and specific products must be used by the company. These costs can vary widely, but it is common to spend $5,000 to $10,000.

Royalties are annual fees you pay to nail salon franchises for the continued use of their services and company name. Royalties can be a fixed amount or a percentage of gross revenue.

Training and Setup

This includes everything from signage and furniture upgrades to decor, staff and management training, and possibly even website templates and IT services. Including rent, the cost can range from $100,000 to $300,000.

So how much does it cost to franchise a nail salon? It probably depends largely on the franchise company, whether your location is leased or owned, and the value of the services they provide.

There are many different opportunities available to nail salon franchisees. Here is a list of the best nail salon franchises we have found for you.

#1. Regal Nails Salon and Spa

Founded in 1997 in Louisiana, Regal Nails now has locations throughout the United States. They’re known for their high standards in customer service and cleanliness.

Anyone hoping to join Regal Nails should be prepared with an initial investment of $170,525 - $748,470. Their ideal candidate also has previous nail salon experience and a strong work ethic.

#2. Namaste Nail Sanctuary

This franchise aims to provide clients with a full mind-body experience, complete with serene music, Zen-inspired architecture, private rooms and even a meditation space. This is more than your typical nail salon.

They charge a $29,000 franchise fee, and recommend an initial investment of at least $220,000 to get things up and running.

#3. Frenchies Modern Nail Care

Anyone looking to run a Frenchies nail salon franchise can expect a ton of training and support along the way. They can provide new owners with training, assistance finding and leasing a new location and even information about vendors for equipment, tools and supplies.

Frenchies requires new franchise owners to have a minimum net worth of $350,000, $150,000 in ready cash, and the ability to make an initial investment of $262,444 - $447,016. They charge 5.5% in royalties.

#4. M.C. Nail Bar

Headquartered in Florida, M.C. Nail Bar is a sister business of the M.C. Spa franchise and has the same relaxing atmosphere. Both businesses serve regular clients but also have a membership program with additional rewards.

This nail salon franchise costs $35,000 for new locations and just $25,000 for conversions. You’ll need a minimum net worth of $225,000 and a salon space that’s at least 1,500 square feet.

#5. MiniLuxe

This nail salon franchise provides the standard manicures and pedicures, but some locations also offer basic waxing services, too. One thing that sets MiniLuxe apart from other nail salons is the fact that clients can also book home visits for nail care.

If you want to set up a MiniLuxe franchise, be prepared to invest at least $250,000 including the franchise fee.

#6. Herbal Nail Bar

This is a great option for anyone with an interest in natural nails and eco-friendly beauty. They offer new franchisees two options: you can either own a single unit in a defined territory, or multiple units within a larger area.

They provide new members with detailed, hands-on training and charge a franchise fee of $29,900. The initial investment required is $233,100 - $292,700, and you can expect to pay 5% in royalties.

#7. Bellacures

With its main location being named one of the best nail salons in Los Angeles by LA Magazine, Time Out LA, and Refinery29, this nail franchise has a strong brand presence. Previous nail salon experience is not required, but ideal candidates will have management experience.

Bellacures provides every new franchisee with training and support along the way. They charge franchise fees that range from $133,300 - $285,417.

#8. Nail Garden

They market themselves as a full service nail boutique and waxing salon, providing quality manicures, pedicures and other services to clients at reasonable prices. With multiple locations throughout the southern United States, this franchise has tons of experience training new members.

If you want to set up your own Nail Garden nail salon, you’ll need to have some previous experience in managing or running a business, plus $530,000 - $560,000 including the $45,000 franchise fee.

#9. Hammer & Nails

If you’re interested in owning a men’s grooming franchise, this is definitely one you should check out. Hammer & Nails offers clients hand and foot nail services, along with some additional services.

Hammer & Nails charges franchisees a 6.5% royalty fee, and they require you to be able to make a $248,200 - $526,950 investment to get set up. This amount includes the $49,950 franchise fee.

#10. Prose Nails

Prose currently has nail salon franchise locations in 12 states, and is still expanding. They offer manicures, pedicures as well as kid-friendly services, making this a fun spot for the whole family to visit and indulge in some self care.

If you want to join the Prose franchise, you should have at least $90,000 in liquidity and a net worth of at least $600,000. They charge a franchise fee of $45,000 plus 6% royalties.

Before deciding whether or not to join a nail salon franchise, look at what opportunities are available and make a budget. It may be the best way for you to start your own business. There are some drawbacks as well as many responsibilities.

The economics of franchise contracts https://www.journals.uchicago.edu/doi/abs/10.1

Factors for new franchise success https://search.proquest.com/openview/df4f81db89eb286b

Why franchise companies expand overseas https://www.sciencedirect.com/science/article/pii/0883902

About the author Bartek Kulasza

Bartek Kulasza creates informative content that focuses on efficient business management. He covers salon software, marketing and sales, budgeting and reporting, salon design and equipment, inventory management, growing customer base, helping businesses optimize operations, enhancing customer experience, and increasing profitability.

• Nail Salons
• Nail Salon Franchise

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December 10, 2020, do you really need a business plan for a startup, by: andrey zadorozhnyy, published on: july 6, 2018.

Ready to start a business? I'm sure you've been told to start writing a business plan immediately. But do you really have to?

Last week one of my friends who is planning to start his own business came to me to find out if I could help him with writing a business plan. He needs the plan to show it to banks or angel investors in order to get some financial support. From an investors’ perspective, it seems logical to ask an entrepreneur for a plan illustrating some figures. They not only want to see a PowerPoint presentation full of ideas but also to be able to measure the costs and future returns. But is it really worth it to make a business plan for an entrepreneur?

Yes, but…

Some people say “Yes”.

“If you can’t explain it simply, you don’t understand it well enough.” – Albert Einstein’s quote helps to realize why a business plan is necessary for a startup. It helps to figure out and explain your product to others; it is your plan for how you’re going to sell it. This model on paper helps you structure your ideas in a bit more logical, clustered form. According to Jon Westenberg, founder of Creatomic, a  business plan has to show :

• What your product is, and what it does;
• Your strategy for bringing that product to market;
• Details about your revenue model;
• Goals and milestones;
• The method you’ll use to know if you’ve failed;
• Your customer personas and target market;
• Your financial needs.

Thus, the key point here is that the plan must be clear and simple not only to the entrepreneur but also to an investor. Otherwise, the product is too complicated.

Also, we can’t overlook the discussions about creating a business plan when we talk about lean startups. Some entrepreneurs, including Tim Berry, suggest making a specific type of business plan – the “lean business plan”. This is a type of a plan which should be used, revised and changed. It should evolve with the development of your startup, it’s continuously cycle-based on three similar repeating phases: plan, review and revise.

According to the research  by Francis J. Greene and Christian Hopp in 2017, who studied more than 1000 U.S.-based entrepreneurs, making business plan gives startups more chances for success. “Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical non-planning entrepreneurs.” They also concluded that there are two major groups of entrepreneurs who do it: high-growth oriented startup entrepreneurs and entrepreneurs seeking external financial support.

…not all the time.

However, others think differently saying “No” to a business plan.

Brian Hamilton, Chairman of Sageworks, believes that entrepreneurs don’t know how their startups would work in reality . In new business, the areas like product, pricing, marketing, and distribution are unpredictable in the beginning. Entrepreneurs make hypotheses about different aspects of their business and test them in reality. It’s one of the features of a founder, to be flexible and bold, to change the plans that don’t work or work not good enough. At the same time, the business plan can be even harmful; it creates pressure on the entrepreneur, forcing them to follow the wrong path instead of creatively evolving and shaping the future of their business.

Neil Patel says that writing a business plan takes a lot of time and effort which should rather be spent on developing the business itself. Starting a business is an energy- and time-consuming process, so as human beings, entrepreneurs should set priorities. If you prioritize writing a plan, rather than focusing on sales, marketing, development, etc., you lose valuable time.

Our world changes faster and faster every day. Technology is evolving, customer preferences alter, macroeconomic conditions vary. Nowadays, the situation when your business plan will be outdated after a short period of time is very real.

Tony Robbins said : “The most painful mistake I see in first-time entrepreneurs is thinking that just having a business plan or a great concept is enough to guarantee success. It’s not. Business success is 80% psychology and 20% mechanics. And, frankly, most people’s psychology is not meant for building a business.”

Guy Kawasaki said: “I believe that is no longer necessary to write a business plan. You can’t foresee the future five years from now. You know, you’d be lucky if you can foresee one year from now. And even one year from now, you gonna be one year late. Because you just don’t know.”

Find The Golden Mean

The recent study of Greene and Hopp shows that the question is not about whether a business plan should be done or not, but WHEN. According to their research, the most successful entrepreneurs were those who wrote their business plan between 6 and 12 months after deciding to start a business. This increases the probability of venture viability by 8%. They also found that the optimal time to spend on the plan is 3 months, less or more time will have no effect. Writing a business plan during activities such as talking to customers, getting the product ready for market and thinking through promotional and marketing activities, increases a startup’s chances by 27%.

In conclusion, I’d like to say, that if you plan every step of your future venture or rely only on inspiration and creativity, the most important what you should do is to have faith in yourself.

Oh, and what about my friend? I advised him that if he wants to start a business, he should make a simple spreadsheet, a roadmap of his financial costs and revenues. These figures and percentages should reflect the goals of his business. I also told him to keep it close to his garbage bin, because after some months of production, sales and payments; after his enterprise starts running, he will have to throw it away.

And THEN create a real business plan .

____________

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GOP called over for “pro-labor” rebrand: They “want working class people to sit down and shut up”

Jd vance seeks union support as reports reveal workers at start-up he funded faced “nightmarish conditions", by marin scotten.

At the Democratic National Convention on Monday night, United Auto Workers (UAW) president Shawn Fain sported a shirt that read “Trump is a Scab,” making it clear that his union stood with Democratic nominee Kamala Harris and her running mate Tim Walz.

"For us in the labor movement it's real simple: Kamala Harris is one of us," Fain said in his speech. 

His support isn’t surprising. Historically, most labor unions have supported Democrats. But this election season, Republicans has made a deliberate effort to appeal to the working class.

Teamsters boss Sean O'Brien, the head of America's largest union, became the first-ever union president to speak at the Republican National Convention last month.

“President Trump had the backbone to open the doors to this Republican convention, and that’s unprecedented. No other nominee in the race would have invited the Teamsters into this arena,” said O’Brien.

O’Brien’s appearance at the event was a shock to many, but it’s part of a larger campaign by Trump’s Republican Party to rebrand itself as pro-labor and move away from the Reagan-era economics of big business expansion that have marked the GOP for decades.

The rebrand was boosted by Trump's selection of JD Vance as his running-mate. The Ohio native has positioned himself as a champion for the working class who will help dismantle “the regime,” a term he and his peers use to describe liberal elites in the government, business and higher education.

Vance has become the face of a group of young Republicans known as the New Right , who believe current democratic systems have failed the United States and must be dismantled. Instead, Vance supports economic populism and the industrialization of America’s industries, which he says would bring more jobs back to low and middle-class Americans. 

But despite the pro-labor image they’re pushing, Vance and Trump are anything but.

Last week, allegations surfaced that workers at a start-up funded by Vance faced “nightmarish conditions.” AppHarvest was a start-up designed to use new technology to grow vegetables at an industrial scale and deemed “the future of farming” in Appalachia.

But reporting from CNN revealed employees, many of whom were migrant workers, were subject to grueling working conditions inside greenhouses. Even after he launched his political career, Vance remained an investor in the company. AppHarvest went bankrupt last year. 

We need your help to stay independent

The Ohio native also opposed the PRO Act , which would increase collective bargaining rights for millions of workers. Though he does support some unions, his support is dependent on the political stance of the union’s leadership. He has explicitly said there are “good unions” like police unions and “bad unions” like the Starbucks Workers United.

“I think it’s dumb to hand over a lot of power to a union leadership that is aggressively anti-Republican,” Vance told Politico .

Trump’s record too is staunchly anti-labor . Just last week, the UAW announced the union is filing federal charges against Trump for arguing that striking workers should be fired in a discussion with X CEO Elon Musk. 

“Donald Trump will always side against workers standing up for themselves, and he will always side with billionaires like Elon Musk, who is contributing $45 million a month to a Super PAC to get him elected,” Fain said in a statement . 

“Both Trump and Musk want working class people to sit down and shut up, and they laugh about it openly. It’s disgusting, illegal, and totally predictable from these two clowns,” he added. 

Throughout his term as president, Trump restricted union rights to organize, weakened worker protections, refused to raise the federal minimum wage and appointed members to the National Labor Relations Board (NLRB) who have fought against unions. 

In 2018, the Supreme Court also issued a devastating blow to public sector unions, making it easier for government employees to not pay union dues if their workplace is unionized.

Things could get worse if he’s elected in November. Project 2025’s plan for the Department Labor would make overtime pay for workers more complicated to navigate, recommends Congress consider abolishing all public sector unions and even recommends the teenagers be allowed to work in “dangerous jobs.” 

“Some young adults show an interest in inherently dangerous jobs. Current rules forbid many young people from working in such jobs,” Project 2025’s labor document reads. “This results in worker shortages in dangerous fields and often discourages otherwise interested young workers from trying the more dangerous job.”

about the GOP and labor

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• "Two-bit union buster": Fired-up AOC says "Trump would sell this country for a dollar”
• AOC: GOP would rather sacrifice child labor laws than allow legal immigration

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I grew up in Connecticut and moved to Europe for college. I never intended for the move to be permanent.

• Liza Jean Miezejeski decided to attend college in Europe to avoid student debt.
• After completing college in Prague, Miezejeski moved to Brussels to pursue a master's degree.
• Now, the 25-year-old has no plans to return to the US, where she fears she will go through "culture shock."

This as-told-to essay is based on a conversation with Liza Jean Miezejeski, a content creator and founder of Skola, a startup to help students navigate moving to Europe to attend university. It has been edited for length and clarity.

In high school, when it was time to start planning for the future, all I felt was fear — the fear of graduating from college with debt .

It was 2015, and I was a sophomore. One day, on a drive through our Connecticut town with my mom, we heard on the radio that Americans were moving to Germany for free education .

It sounded perfect. "You should do this," my mom agreed.

So, we started researching colleges in Europe. The Anglo-American University in Prague was my top choice because of its affordability and its curriculum. A high school diploma wasn't required to apply, so I applied early and got in.

I only knew one other student from my high school who moved abroad for their studies. The rest of my schoolmates went to college in Boston, New York, or other parts of New England.

I was excited, but I didn't fully understand what I was getting myself into until I was in Prague, the capital of the Czech Republic.

At first, I thought that everyone hated me

I don't think I knew what culture shock meant until I moved to Prague. In my hometown, it's normal to say "hi" to everyone you pass.

But Czechs looked at me weirdly when I did the same in Prague. It took me a while to realize it was a cultural difference, but I eventually got used to it.

Studying abroad taught me to become more open-minded

Before moving to Europe , I didn't realize how much of my thinking about the world was from a US-centric perspective. In Europe, the students I studied with were from all over the world. I learned about their cultures, ways of life, and languages.

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As cheesy as it sounds, the learning did not stop there. As an international student , getting on public transportation, grabbing a coffee, and everything I did for the first time was a learning experience. It was exciting, and as a result, made everything I did interesting.

And even though the cheaper tuition was my main reason for moving to Europe, the opportunity to travel and see the world was also a big pro.

I slowly realized I didn't want to leave Europe

I had originally intended to complete the three-year college program in Prague and then return to the US. I did not even consider the possibility that people could leave the US permanently .

When I spent a semester abroad in Malaysia in 2019, a friend asked if I intended to return to the US .

"No," I replied almost immediately, realizing I had made the decision unconsciously. My entire adult life and everything I knew were now in Europe. If I returned to the US, I would experience culture shock and have to "relearn" being an adult, I thought.

After I completed my bachelor's degree in Humanities, Society, and Culture in 2021, I didn't return to my hometown in Connecticut . But despite feeling at home in Prague, I decided to move to Brussels to pursue a master's in Digital Media, Communication, and Society at the Free University of Brussels.

After graduating in 2022, I stayed on in Brussels and worked as a communications and marketing consultant. In January, I founded Skola , a startup that supports US students planning to relocate to Europe for college. I also started a TikTok account where I create content about moving abroad and international studies.

For now, there's nothing pulling me back to the US except my family, whom I visit once a year. Hopefully, I'll be able to get them to move here.

It's not just lower tuition fees that make the cost of living more affordable

I was rushed to the emergency room after fracturing my pelvis on a ski trip and paid nothing out of pocket — thanks to the public health insurance I received in the Czech Republic.

In Brussels, I don't need a car. As a student, I paid 12 euros, or $13, for an annual season ticket that provides unlimited use of public transportation.

I did not need to take out loans for school, either. When I started my bachelor's in Prague, tuition fees cost around $6,500 a year, although the fees have increased since . In comparison, the cost of in-state tuition at the University of Connecticut, excluding other fees, is estimated at $17,010 a year, according to its website .

My master's program was also affordable — around $4,700 for the one-year program. According to UCONN's website , the tuition fee for a master's program there is around $19,512 a year for full-time in-state students, excluding other costs.

I have no plans to move back to the US

My boyfriend is Belgian, and his family is from here. We also have a dog, and my life is well set up here.

I only have two and a half more years before I can apply for citizenship, which requires applicants to have lived in Belgium legally for at least five years .

I would love to celebrate getting citizenship here by living somewhere else in Europe for a year or traveling around a bit.

But I plan to return and stay in Brussels longterm. I feel more at home here now.

Do you have a story about choosing to attend college outside the US that you want to share? Get in touch with the reporter, Erin: [email protected] .

• Main content

Press Release

Amd to significantly expand data center ai systems capabilities with acquisition of hyperscale solutions provider zt systems.

  — Strategic acquisition to provide AMD with industry-leading systems expertise to accelerate deployment of optimized rack-scale solutions addressing $400 billion data center AI accelerator opportunity in 2027 —

• ZT Systems, a leading provider of AI and general purpose compute infrastructure for the world’s largest hyperscale providers, brings extensive AI systems expertise that complements AMD silicon and software capabilities 
• Addition of world-class design and customer enablement teams to accelerate deployment of AMD AI rack scale systems with cloud and enterprise customers 
• AMD to seek strategic partner to acquire ZT Systems’ industry-leading manufacturing business 
• Transaction expected to be accretive on a non-GAAP basis by the end of 2025

SANTA CLARA, Calif., Aug. 19, 2024 (GLOBE NEWSWIRE) -- AMD (NASDAQ: AMD) today announced the signing of a definitive agreement to acquire ZT Systems , a leading provider of AI infrastructure for the world’s largest hyperscale computing companies. The strategic transaction marks the next major step in AMD’s AI strategy to deliver leadership AI training and inferencing solutions based on innovating across silicon, software and systems. ZT Systems’ extensive experience designing and optimizing cloud computing solutions will also help cloud and enterprise customers significantly accelerate the deployment of AMD-powered AI infrastructure at scale.

AMD has agreed to acquire ZT Systems in a cash and stock transaction valued at $4.9 billion, inclusive of a contingent payment of up to $400 million based on certain post-closing milestones. AMD expects the transaction to be accretive on a non-GAAP basis by the end of 2025.

“Our acquisition of ZT Systems is the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers,” said AMD Chair and CEO Dr. Lisa Su . “ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities. This acquisition also builds on the investments we have made to accelerate our AI hardware and software roadmaps. Combining our high-performance Instinct AI accelerator, EPYC CPU, and networking product portfolios with ZT Systems’ industry-leading data center systems expertise will enable AMD to deliver end-to-end data center AI infrastructure at scale with our ecosystem of OEM and ODM partners.”

Headquartered in Secaucus, New Jersey, ZT Systems has more than 15 years of experience designing and deploying data center AI compute and storage infrastructure at scale for the largest global cloud companies. ZT Systems’ design, integration, manufacturing and deployment capabilities have made them one of the leading providers of AI training and inference infrastructure.

“We are excited to join AMD and together play an even larger role designing the AI infrastructure that is defining the future of computing,” said Frank Zhang, CEO of ZT Systems. “For almost 30 years we have evolved our business to become a leading provider of critical computing and storage infrastructure for the world’s largest cloud companies. AMD shares our vision for the important role our technology and our people play designing and building the computing infrastructure powering the largest data centers in the world.”

Following transaction close, ZT Systems will join the AMD Data Center Solutions Business Group. ZT CEO Frank Zhang will lead the manufacturing business and ZT President Doug Huang will lead the design and customer enablement teams, both reporting to AMD Executive Vice President and General Manager Forrest Norrod . AMD will seek a strategic partner to acquire ZT Systems’ industry-leading U.S.-based data center infrastructure manufacturing business.

The acquisition of ZT Systems marks the latest in a series of investments by AMD to significantly strengthen the company’s AI capabilities. In the last 12 months, in addition to increasing organic R&D activities, AMD has invested more than $1 billion to expand the AMD AI ecosystem and strengthen the company’s AI software capabilities.

Additional Transaction Details   The transaction has been unanimously approved by the AMD Board of Directors. The acquisition is currently expected to close in the first half of 2025, subject to certain regulatory approvals and other customary closing conditions.

Conference Call and Webcast Details  AMD will hold a conference call for the financial community at 8:30 am EDT today to discuss the transaction. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at  ir.amd.com . The webcast will be available for 12 months after the conference call.

Advisors  Citi is acting as exclusive financial advisor to AMD and Latham & Watkins LLP is serving as its legal advisor. Goldman Sachs & Co. LLC is acting as exclusive financial advisor to ZT Systems and Paul, Weiss, LLP is serving as its legal advisor.

About AMD   For more than 50 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website , blog , LinkedIn and X pages.

About ZT Systems   ZT Systems is a leading supplier of hyperscale server solutions for cloud computing and artificial intelligence. With over 29 years of experience, ZT Systems is headquartered in Secaucus, NJ. Global manufacturing spanning the US, EMEA and APAC helps ZT Systems deliver on our mission of empowering our digital world with the most advanced technology infrastructure for cloud and AI. Learn more at   ztsystems.com .

Cautionary Statement   The statements in this press release include forward-looking statements concerning Advanced Micro Devices, Inc. (AMD), ZT Systems, the proposed transaction described herein and other matters. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology including “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “pro forma,” “estimates,” “anticipates,” “designed,” or the negative of these words and phrases, other variations of these words and phrases or comparable terminology. The forward-looking statements in this press release relate to, among other things, data center AI accelerator opportunity, obtaining applicable regulatory approvals, satisfying other closing conditions to the transaction, the expected timing of the transaction, and the integration of the businesses, sale of ZT Systems’ manufacturing business, and the expected benefits, accretion, synergies and growth to result therefrom. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. These risks include, among other things: failure to obtain applicable regulatory approvals in a timely manner or otherwise; failure to satisfy other closing conditions to the transaction or to complete the transaction on anticipated terms and timing; negative effects of the announcement of the transaction; risks that the businesses will not be integrated successfully, the ability of AMD to sell ZT Systems’ manufacturing business on a timely basis or at all, or that AMD will not realize expected benefits, cost savings, accretion, synergies and/or growth, or that such benefits may take longer to realize than expected; the risk that disruptions from the transaction will harm business plans and operations; risks relating to unanticipated costs of integration and sale of ZT Systems’ manufacturing business; significant transaction, integration and separation costs, or difficulties and/or unknown or inestimable liabilities in connection with the transaction or sale of ZT Systems’ manufacturing business; restrictions during the pendency of the transaction that may impact the ability to pursue certain business opportunities or strategic transactions; the potential impact of the announcement or consummation of the transaction or sale of ZT’s System’s manufacturing business on AMD’s, ZT Systems’ or the combined company’s relationships with suppliers, customers, employees and regulators; and demand for AMD’s, ZT Systems’, or the combined company’s products.  For a discussion of factors that could cause actual results to differ materially from those contemplated by forward-looking statements, see the section captioned “Risk Factors” in AMD’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. AMD does not assume, and hereby disclaims, any obligation to update forward-looking statements, except as may be required by law.

© 2024 Advanced Micro Devices, Inc. All rights reserved. AMD, the AMD Arrow logo, AMD Instinct, AMD EPYC and combinations thereof are trademarks of Advanced Micro Devices, Inc.

Media Contact:   Drew Prairie   AMD Communications  512-602-4425  [email protected]  

Investor Contact:   Mitch Haws   AMD Investor Relations  408-749-3124  [email protected]

Released August 19, 2024

Microsoft to host cybersecurity summit after CrowdStrike-induced IT outage

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