To ensure your salon’s success in this fiercely competitive market, you must create a well-structured hair salon business plan. A business plan for your salon will help you get there, whether you’re trying to get a business loan for your salon or trying to grow or reinvent your salon business.
I. What is a hair salon business plan
A business plan gives you a glimpse of your salon’s current state and spells out your five-year growth strategy. It defines your company’s objectives and how you plan to achieve them. Market research is also included to back up your plans. Your salon’s success and growth are guided by your business plan.
II. Why do you need a hair salon business plan?
If you want to open a salon or expand an existing one, you’ll need a business plan. A hair salon business plan will assist you in raising funds if necessary and planning the salon’s expansion to increase your chances of success. As your firm develops and changes, your business plan should be updated on a yearly basis.
A business plan will assist you in determining what services you want to provide, where you want to take your salon’s growth, who you want to cater to, and who you’ll be competing against.
A business plan is essential if you are seeking funding from private investors, banks, or other lending organizations, as well as government subsidies.
A business plan will help you increase your salon’s productivity by providing better control and direction, as well as allowing you to make more educated decisions.
A well-developed business plan can help you secure the financing you need to expand to other locations as your salon business grows and gains clients.
III. How to make a perfect hair salon business plan?
It can be difficult to write a super hair salon business plan because it must be flawless. Don’t be concerned! To assist you in creating a successful salon business plan, we’ve broken down the entire process into 7 simple, foolproof phases, complete with templates.
1. Writing a mission and vision statement
a. Mission Statement
b. Vision statement
- Review your long-term objectives so that you can assess how accomplishing them can affect your company and the salon industry as a whole.
- Determine how the visions you would be adopting could assist your clients.
- Your vision statement may be influenced by your company’s long-term objectives. For instance, if you intend to open additional sites in, say, five years, your vision statement can mention that you want to make your salon well-known throughout the community.
2. Create an executive summary
What can you do to create the best executive summary possible for your salon?
Begin by listing all of your short-term objectives for the next six months or a year. Keep your objectives in mind and make sure they’re attainable.
To give an outline of how you will conduct your firm, summarize your approach to it.
Express your salon’s value proposition and how it might position your company in your target market in a clear and succinct manner.
A straightforward template
Divide your business summary into sections for possibilities and expectations, and be sure to include succinct points in each area. This is when the following template can come in handy:
3. Analyze and identify your target market
How to identify and assess your target market
* Find out who you think would be most receptive to the services offered by your salon. For instance, if your salon provides low commitment (temporary) coloring services, you may see a spike in millennial clientele.
Do not forget these bases:
- Personal income/job
4. Perform a competitor analysis
How to analyze your competition
Find out what the neighborhood’s other salons are doing well or poorly.
Find out approximately how much the services offered by the rival salons cost. This aids in determining the cost of services for your salon.
Count the number of salons that cater to a narrow clientele and don’t serve a broad range of people.
Find out what difficulties they are having that are unique to their sector and that you might experience running your own salon.
To prevent encountering such difficulties yourself, consider what they can do differently to improve their condition and incorporate it into your business goal plan.
Have your salon address these market shortcomings.
How to perform your salon’s competitor analysis
5. Write your salon’s business description
- What sort of offerings do you have?
- Would you focus on a particular service, such as bridal makeup or nail art?
- Would you prefer to separate your services for different client types?
- What types of services would you like to bundle?
- Would you provide the customers with free refreshments?
- What aesthetic (Japanese zen, tropical beach day, etc.) are you going for with the decor and atmosphere?
- What would be the “it” factor that sets your salon apart from the others in the neighborhood?
6. Make strategies for advertising and outreach marketing
Google should be able to find your salon. Make sure your company is listed in internet directories if you want it to appear in digital searches.
For a better consumer experience, develop a website or a mobile application.
In order for your customers (and any potential clients) to get to know you on a more personal level, it is always preferable to advertise your business throughout all social media channels. By following nearby small businesses, you can establish a connection with your local business community. To establish your credibility and grow brand awareness, actively communicate with your target audience and publish behind-the-scenes content (such as before and after pictures of clients’ haircuts).
Join forces with companies that might have similar clients to a salon (such as spa retreats) to give discounts and coupons as part of outreach marketing.
Starting off subdued is another important strategy.
- And by low-key, we mean that you should give your clients discounts for “first service.”
- To draw customers, keep service prices cheaper than those at competing salons in the neighborhood.
You can stop offering discounts once a rapport has been built and your customers are confident in the caliber of your services. However, we’ll get to it in a moment. It is also crucial to optimize the discounts so that you don’t incur a total loss.
After you begin receiving clients, it is imperative to maintain the greatest level of service quality. Keep in mind that after leaving your salon, your clients will still be wearing your promotion. This would undoubtedly assist you in getting recommendations from current clients.
7. Figure out your financial plan
You may get a general sense of how your salon would be doing on a monthly or annual basis by writing a detailed financial strategy. Additionally, your financial plan will impact your eligibility if you’re looking for a loan.
Other approaches to developing your financial strategy:
Hire freelancers: To create your financial strategy, work with business plan consultants. All you have to do is provide them with the financial projections and inputs for your salon.
Utilize tools for financial planning: You must provide all of your financial data. With all the charts and projections that an investor would anticipate seeing in a business plan, they employ built-in formulas to provide you with the most accurate financial statements.