Beauty Salon and Day Spa Business Plan [Sample Template]
By: Author Tony Martins Ajaero
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Are you about starting a beauty salon and spa? If YES, here’s a complete sample day Spa business plan template & feasibility report you can use for FREE .
Okay, so we have considered all the requirements for starting a beauty salon and spa. We also took it further by analyzing and drafting a sample beauty salon and spa marketing plan template backed up by actionable guerrilla marketing ideas for beauty salon and spas. So let’s proceed to the business planning section.
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It is true that one have got to eke out a living, but, it is even more important to know that all work and no relaxing could deal a sad blow on the body.
This is one of the reasons why there has been a rise in the spa business all over the world. In America for instance, there are loads of day spas and health spas, which see to it that customers are given the best services that will give you one of the best experiences yet.
One of the ways through which you could capture the hearts of all and sundry and get them coming over and over again, is helping them de-stress from the hectic day to day schedules. This is one of the things that those who already run a spa business have at the back of their minds.
They know that one of the ultimate reasons why they are in business is to make life easier for people. Here is a sample spa business plan that will help you effectively write yours without much hassle.
A Sample Beauty Salon & Day Spa Business Plan Template
1. industry overview.
In the united states of America there is always the need to work so as take care of the basic needs of life. Some folks get to work round the clock with little or no time left for them to take care of their selves. Some do not even mind looking the way they are, since there isn’t ample time to take a second look at how they are.
Yet others wouldn’t mind to muster some little time to pamper their selves. These set of people are the types that do not mind to visit a spa or have a spa attendant come home for a massage. They do not even mind to pay a premium to have all these services and more.
Over the years we have come to see that the spa business have continued to be on the rise, as the demand for it continues to increase. One of the very good things about this trade is the ability to have a spa attendant come for a private service.
In the past this used to be an issue, as some attendants were skeptical. However, today, it is a different ball game entirely, as the spa business have become a no holds barred type of service rendering business. It is no wonder that very business upwardly mobile people can rest assured that they can get the best of spa services.
Starting a spa just like every other business needs for one to be thoroughly calculative. This is because of the need to start on a right footing.
Steps like renting or buying a facility to use, procuring the various equipment that is needed, finding the right employees, as well as getting the required skills involved in starting a spa business, are just some of the hurdles that must be scaled. Nonetheless, there are other very technical steps that have to be cancelled out too.
It is also very important that in running a spa business successfully, there has to be a flexible payment option for customers to use. It is important to state that these days, Spa business also provide some other services asides from the typical spa.
Some go as far as having a drink and food lounge, where customers can unwind whilst they wait, or even after being serviced.
For the spa owners these are also other areas through which they are able to generate more funds for profitability and for running the business to grow successfully. When starting a Spa business, it becomes important to choose a location that is close to a boutique, hair salon or nail salon. This is o that there would be ample opportunity to attract the kind of people that want spa services.
2. Executive Summary
LaCozy Spa World is a new classy neighborhood in Maryland, Washington DC. It promises an all-round day spa experience.
We offer four classy, ultra- chic treatment rooms with premium spa linens and equipment. Our massage styles are second to none, as we offer the very best. They include; the traditional Swedish Massage, Hot Stone Massage, Deep Tissue work, Pregnancy, Sports, Reflexology, amongst many others.
We also have very effective facial and body treatments. We have also got the latest anti-aging products and techniques that can effectively meet the needs of our clients. As a matter of fact, we are specifically located near hair and nail salon, so that we are able to attract clients who would also be in need of spa services.
LaCozy Spa World is a standard Spa lounge in a 4,000 square feet facility. It is therefore no joke to say that we have one of the biggest spas with the latest products and service techniques in Mary land Washington Dc. We have got the very best of attendants who have been well trained to make clients visit a worthwhile and fun packed one.
We have a posh and classy environment that can attract all and sundry to come have a taste of what it means to run an ultra- chic spa. Furthermore, we have gifts for each customer who come to patronize us. Our Spa will be open from 8 a.m. and close 10 p.m. from Mondays to Thursdays, and will run a 24 hour service from Friday to Sunday.
We decided to operate in this format because from our market survey and feasibility studies, we realized that customers have the most flexible time schedules during the weekends. It is pertinent to state that we have the finest DJs in the house every single day of the week, who have been trained to serenade the clients whilst they get serviced.
LaCozy Spa World has well trained employees who have hands on skills, as to how to give clients the very best. It is no wonder that out Mantra at LaCozy is customers first. Our products are majorly organic, and so customers can rest assured, knowing that there wouldn’t be any reaction whatsoever on their skin.
Whether it is the male folks, or the women folks, or even children, bottom line is that we have what it takes to leave them smiling and satisfied. Our bar attendants and those who man our restaurant arm of business, have the best of drinks and foods that can leave them satisfied.
One of the things that most clients look out for in a spas, is the level coziness; we have therefore done adequate research in that area , which is why we have spent quite a lot in making our Spa really beautiful and conducive. Our state of the art facility in Maryland Washington Dc, USA is so attractive that people who our services need cannot but walk in because we use the latest technology in the industry.
Our excellent customer service is second to none, as we have exhaustively trained our employees to know that customer is king in this trade. Furthermore, LaCozy Span World is owned and managed by Madame Helen Oakwood and her family.
She is the financier, and she functions as developer and manager for LaCozy Spa World. She has been a business administrator and sales professional for over 1o years, with a track record that speaks volume. She has worked as a manager in one of the leading Spas in Washington DC. After her retirement there, she decided it was time to start her own business.
3. Our Products and Services
At LaCozy Spa World, our paramount aim is to give our clients an all-round experience so that they do not have to look elsewhere. As such, this is one of the reasons why we propose to offer a wide range of services offered by licensed therapists and aestheticians that would keep our clients asking for more.
Our Ultra- chic facility and ambience sure does promises a lot. Some of the services and amenities that we offer to clients include the following that have been listed below. These are the services and amenities that will be made available to our customers;
- Therapeutic Massage Services
- Body Treatments
- Anti-aging Treatments
4. Our Mission and Vision Statement
- Our Vision is to be the number one Spa Lounge in Washington DC.
- Our mission is to run a money-making business by offering therapeutic massage and aesthetician services in a gentle, classy, professional setting.
Our Business Structure
LaCozy Spa World is set to become one of the leading Spas in Maryland, Washington DC. As such, there would be the need to lay down a solid business structure foundation. This is so that we are able to meet and even surpass our expectation.
We do not intended to take our customers for granted, which is why we are set to make excellent customer our watch word. In realizing this, we know that hiring the best hands would deliver. Web also will lay emphasis on giving our employees a thorough training.
Essentially, we want to build a dedicated workforce that will work together to help the organization achieve its projections. This is so because we know that with the right structure in place, we are able to build systems and structures that will make the business even run on autopilot.LaCozy Spa World will employ skilled people to occupy the following position;
- Manager (Owner)
- Accountant/Cashier
- Marketing Officer
Spa Attendant
Aesthetician
- Coffee and Bar Manager
Restaurant Manager
- Security Guard
5. Job Roles and Responsibilities
Manager (Owner):
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for recruitment
- Responsible for payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities at the Laundromat
- Ensures that the facility is in tip top shape and conducive enough to welcome customers
- Prepares budget and reports for the organization
- Responsible for Training and Development in the organization
- Handles procurement
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team hires
Marketing Officer (2)
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information.
- Represents the company in strategic meetings
- Helps increase sales and growth for the company
- Manages the company’s CRM system
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Sees to it that clients are attended to and on time
- Books clients for massage sessions
- Passes information to the aesthetician about clients
- Reaches out to clients when information needs to reach them
- Takes and book clients for massage sessions
- Carries out all massage styles and formula on the clients
- Makes sure they are satisfied at all times
- Makes sure that all beauty and massage therapies are body friendly.
Coffee Café and Snacks Bar Manager:
- Interacts with customers, take orders for coffee and snacks.
- Responsible for preparing different flavor and style of coffee for customers
- Makes lists of supplies in conjunction with the bar manager
- Ensures that each cup of coffee that leaves the kitchen is tailor made and meet the request of each customer
- Responsible for quality control
- Assesses customers’ needs and preferences and make recommendations
- Makes lists of supplies in conjunction with the management
- Prepares inventory or purchase requisitions as needed to replenish supplies.
- Ensures that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.
- Interacts with customers, take orders for food.
- Responsible for preparing different flavor and style of food for customers
- Makes lists of supplies
- Ensures that each meal that leaves the kitchen is tailor made and meet the request of each customer
- Ensures that the assigned restaurant area is fully equipped with tools and products needed for whipping up meals and serving guests.
Accountant/Cashier:
- Moves round the machines to collect payment after each working shift
- Prepares financial report at the end of every working week
- Handles all financial transaction on behalf of the company
- Interfaces with our bankers
- Responsible for payment of tax, levies and utility bills
- Handles any other duty as assigned by the manager
- Mops the floors
- Wipes down the machines
- Cleans the soap dispensers in your front-load washers
- Washes off the folding tables
- Cleans the bathroom
- Empties the trash
- Washes the windows
- Cleans the vending machines, change machines and video game screens
Security Guards
- Ensures that the facility is secured at all time
- Controls traffic and organize parking
- Gives security tips to staff members from time to time
- Patrols around the building on a 24 hours basis
- Submits security reports weekly
- Handles any other duty as assigned by the restaurant manager
6. SWOT Analysis
Without a shadow of doubt, starting a Spa indeed needs loads of cash, and this especially applies to aspiring entrepreneurs who may not have huge sum of money saved up in a bank. We know that loads of cash is vital in the setting up of a standard Spa business, which is why we decided to do all that is required to build a profitable business.
As such, we are taking meticulous steps in seeing that we do the needful. Part of the needful step required to be taken, is conducting a SWOT Analysis.
It is for that reason that we employed the services of Mr. Adolphus Nettune, an HR and Business consultant who is renowned for the trade, to help us conduct SWOT analysis for our company and he did a pretty good job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of LaCozy Spa World;
LaCozy Spa World is centrally located where there are salons and nail studios. We see this as a strength, as we will be able to attract clients who might as well need to be massaged, pampered, amongst others.
We believe that locating our business in Maryland, Washington Dc would eventually work out for good as we look to attract a great deal of people. Yet another strength is the fact that we have equipment that are second to none and the equipment will help us give our clients the best of services.
The weakness of LaCozy Spa World can be said to be the fact that it is a new business, which is owned by an individual (a small family), and we may not have the financial capacity to sustain the kind of publicity that can give us leverage.
- Opportunities:
We are centrally located in one of the busiest areas of, Maryland, Washington DC and we are open to all the available opportunities that the city has to offer. Our business concept has us positioned in such a way that we will attract all and sundry.
One of the major threats that confronts businesses all over the world is economic downturn; when the economy is bad it affects consumers spending which in turn impacts businesses negatively. Another threat that may likely just affect us is the competition which is found in the spa industry.
Every day, more and more people are going into the industry, and we dare add that only the strong will survive, which is why we are working hard to position ourself in a way that makes everyone want to check us out.
7. MARKET ANALYSIS
- Market Trends
The ability for spa business owners to continue to seek out ways to serve their clients in the most appropriate ways is one of the keys to attracting loads of clients. This is where a beauty salon & spa marketing plan comes in handy. One of the ways that this is done is by having additional complementary services to their business offerings.
It is for this reason that once a Spa is classy, conducive and relaxing, then profit is assured because people would always want to check the services out. It is also as a result of this that we at LaCozy Spa World have some additional services, like a drink bar; where clients, or even their family or friends can hand out and wait for them whilst they get their bodies massaged and cared for.
Also there is a Karaoke session that allows our in- house DJ to entertain folks. We have also got a restaurant that would offer great meals for the delight of customers. In Maryland, Washington DC for instance; there are only a few people offering these services and so we want to key into the trend.
Yet another thing that can be attributed as one of the success factor, as can be observed about other successful existing Spa, is the fact that they have invested quite a lot in making the Spa Facility a haven to behold. We have also keyed into the trend and we have succeeded in making the interior and exterior a classy one indeed.
8. Our Target Market
Before arriving at the place that would be suitable for our ultra- chic Spa, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings.
As a result we found that Maryland, Washington DC just might be our best bet, as we are sure to attract upwardly mobile people, working class folks, as well as non- working class people. Hence, these are the category of people that we intend marketing our Spa business to;
- Busy Corporate Executives
- House Wives
- Business Owners
- Visitors/Travelers
Our competitive advantage
From our recently concluded feasibility studies and market survey, we observed that the competition sure is a stiffer one because there are quite a number of people who run spas around where we are located. It is for this reason that we have added some more services like the drink bar, restaurant and the Karaoke lounge, because we know that there are only a very few who measures up to want we want to offer.
Yet another competitive advantage we have over others is that we have a standard Spa facility that offers additional complementary services that will definitely help us attract and retain customers. We are categorically hopeful that we have a state of the art Spa facility with the best massage techniques ever.
We also have an advantage because of the type of products we offer our clients, which has no side effect at all. We know how harmful some chemicals can be, that is why we have keyed into using organic products.
9. SALES AND MARKETING STRATEGY
- Sources of Income
LaCozy Spa World will generate income from the following service offerings;
- Offering massages
- Offering skin therapies
- Sale of organic beauty products
- home services
10. Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field with reference to similar business in Maryland, Washington DC.
We know that we are well positioned and we will definitely attract clients that will not only patronize our spa, but clients that will patronize our bar and restaurant. This means that we will generate additional income from these sources.
Below is the sales projection for our business, it is based on the location of our LaCozy Spa World and the type of services and products that we will be offering;
- First Year-: $80,000
- Second Year-: $120,000
- Third Year-: $180,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any Spa offering same additional services like us within 4.5 miles radius from our facility.
- Marketing Strategy and Sales Strategy
Essentially, the marketing strategies which we will adopt will be such that can guarantee us a great turn over. Furthermore, our sales strategies is going to be driven basically by making available an ultra- chic facility, excellent customer service and provision of complementary services.
We will be on our toes all the time to make sure that we build a loyal customer base. These customers are such that will always patronize us over and over again and as well help us use word of mouth publicity to get their friends and acquaintance to patronize us.
We want to drive sales through using really effective organic products, excellent services, so that we can surpass the expectations of the clients we are able to attract overtime. We shall also keep our clients glued to us by the constant trainings which we will give to our employees so that they can continue being at the plateau of their skills.
Over and above, our unique selling proposition is that we have various complementary service offerings such as a drink bar, Karaoke lounge, restaurant, as well as the massage techniques we have to offer. We make bold to say that there aren’t too many people who are into Spa business, the way want to run ours.
In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but ensure that they become loyal customer. Part of the marketing and sales strategies that we will adopt are;
- Open LaCozy Spa World with a loud party. We shall also offer free trial for all our visitors for the first three days of launching the business.
- Advertise our Spa business on national dailies, local TV stations and local radio station
- Promote LaCozy Spa World online via our official website and all available social media platforms
- Continuously Improving the performance of our brands
- Hire the services of experts to make our brands the first choice for in Washington DC
- Delivering consistent customer experiences to all our guest; making our first impression count positively
- Make use of attractive hand bills to create awareness and also to give direction to our state of the art facility.
- Adopt direct mailing coupon marketing approach
- Position our signage/flexi banners at strategic places
- Create a loyalty plan that will enable us reward our regular customers
- Engage on road shows within our neighborhood to create awareness for our business.
11. Publicity and Advertising Strategy
We are aware of the power of publicity and advertisement for new businesses like ours which is why we created a budget that will help us access various publicity and advertising platforms that will enable us reach out to our potential market.
At LaCozy Spa World, we will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our business. Here are the platforms we intend leveraging on to promote and advertise LaCozy Spa World;
- Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our Laundromat business in relevant magazines- beauty and non-beauty magazines, local newspaper, local TV stations and local radio station.
- Promote our Spa business online via our official website
- List our Spa business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- Install our Bill Boards on strategic locations
- Direct coupon mailing approach
- Engage in road show from time to time
- Distribute our fliers and handbills in target areas all around Las, Vegas.
12. Our Pricing Strategy
At LaCozy Spa World, our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in the city we are located.
Be that as it may, the management of LaCozy Spa World have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us. The prices of our products (Organic skin care products, drinks, foods, amongst others) will be same as what is obtainable in any part of the United States of America.
- Payment Options
Basically, we have put in place different receiving payments options; especially for our complimentary service offerings. In other words, our payment policy is going to be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;
- Payment by cash /coins
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.
13. Startup Expenditure (Budget)
This is the key areas where we will spend our start – up capital on;
- The Total Fee for Registering the Business in Maryland, Washington DC – $750.
- Legal expenses for obtaining licenses (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) – $4,500.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Consultant – $2,000.
- Insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- Cost of accounting software, CRM software and Payroll Software – $3,000
- Cost for leasing facility for the Spa – $70,000.
- Cost for facility remodeling – $50,000.
- Other start-up expenses including stationery – $1000)
- Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory – $15,000
- Storage hardware (bins, utensil rack, shelves, glasses case) – $2,720
- The cost for Washer hook-up fees (sewer connection) – $800
- Cost for serving area equipment for Bar and Restaurant( glasses, flatware) – $5,000
- The cost for the purchase of furniture and gadgets (, Printers, Telephone, TVs, Sound System, toys, vacuum cleaner, tables and chairs et al) – $30,000.
- The cost of Launching a Website – $600
- The cost for our grand opening party – $5,500
- Miscellaneous supplies (cleaning supplies, soap, invoices for wash-and-fold, bathroom supplies, etc.) – $10,000
We would need an estimate of $1 million to successfully launch our Spa business in Washington DC Please note that the startup cost is higher than the average startup cost for a Spa business simply because we intend adding a bar, and restaurant.
Generating Funding/Startup Capital for LaCozy Spa World
LaCozy Spa world is a family business and it will be financed by the owner who is also the Laundromat manager. These are the areas where we intend sourcing for fund for LaCozy Spa World;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from family members and friends (soft loans)
- Generate a larger chunk of the startup capital from the bank.
14. Sustainability and Expansion Strategy
LaCozy Spa World is set to become the number Spa business in the whole of Washington DC, which is why we took our time to craft out business plan that will help us sustain the business , as well as grow the business. Part of the plans we have in place to sustain our business is that we will have efficient machines and equipment.
We will also continue to deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in diversifying our services; expand our products and service offerings once the need arises.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit licenses ( Health department license and business license, Fire department permit, Air and water pollution control permit, and Sign permit et al ): Completed
- Purchase of Insurance for the Business: Completed
- Acquiring facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of Massaging machines and: In Progress
- Purchase of furniture and gadgets (Printers, Telephone, TVs, Sound System, video games, toys, vacuum cleaner, tables and chairs et al): In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – suppliers of all our needed laundry accessories, drinks, and tobacco et al: In Progress
Expert business plan and financial models
Beauty Salon Business Plan Template & PDF Example
- September 4, 2024
- Business Plan
Creating a comprehensive business plan is crucial for launching and running a successful beauty salon. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your salon’s identity, navigate the competitive market, and secure funding for growth.
This article not only breaks down the critical components of a beauty salon business plan, but also provides an example of a business plan to help you craft your own.
Whether you’re an experienced entrepreneur or new to the beauty industry, this guide, complete with a business plan example, lays the groundwork for turning your beauty salon concept into reality. Let’s dive in!
Our beauty salon business plan is designed with clarity and thoroughness, addressing all crucial aspects needed for a comprehensive business plan. It details the salon’s operations, strategic approach, market environment, competitive landscape, management team, and financial projections.
- Executive Summary : Provides a snapshot of your beauty salon’s business, market environment, management, and financial overview.
- Salon & Location : Describes the beauty salon’s ambiance, equipment, and unique features.
- Treatments & Pricing : Details the types of beauty treatments and services offered, along with pricing.
- Key Stats : Includes industry size , growth rates, and significant statistics relevant to the beauty salon sector.
- Key Trends : Highlights current market trends affecting the beauty industry (customer preferences, technological advancements, etc.).
- Key Competitors : Analyzes main competitors in the area and your salon’s competitive edge.
- SWOT : Analyzes strengths, weaknesses, opportunities, and threats.
- Marketing Plan : Describes promotional strategies to draw in and keep clients.
- Timeline : Lays out key milestones and objectives from launch to expansion, covering at least the first 12 months.
- Management : Introduces the team behind the salon, detailing their roles and contributions to the salon’s success.
- Financial Plan : Projects the salon’s 5-year financial performance, including expected revenue and expenses, and outlines funding expectations.
Beauty Salon Business Plan
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Executive Summary
The Executive Summary serves as an introduction to your beauty salon’s business plan, providing a succinct overview of your salon and the variety of beauty services it offers. This section should outline your salon’s market positioning, the comprehensive range of beauty treatments and services provided, its location, size, and a brief on operational practices.
Additionally, this section should assess how your beauty salon positions itself within the local market. It should enumerate the number of direct competitors in the vicinity, identify these competitors, and emphasize your salon’s unique selling points that set it apart.
It’s also essential to include details about the management and co-founding team, specifying their roles and how they contribute to the salon’s operational and strategic goals. Lastly, a summary of the financial projections, highlighting expected revenue and profit margins over a 5-year period, should be incorporated to outline the financial plan of your beauty salon.
Beauty Salon Business Plan Executive Summary Example
Business Overview
A concise and informative business overview is pivotal. It introduces essential details like the salon’s name, location, and a snapshot of its daily operations.
These details set the stage for your salon, framing its unique characteristics. A unique selling proposition (USP) distinguishes your salon. Whether focusing on premium organic products, specialized skincare treatments, or personalized client experiences, the USP should stand out in your executive summary, encapsulating your salon’s unique value proposition .
Example: In the US beauty salon industry valued at $57 billion, experiencing a 7.0% CAGR, “Radiance Beauty Haven,” located in the heart of Vibrant City Heights, occupies a spacious 2,500 square feet area on Oak Street. We specialize in a myriad of premium beauty services, including haircare, skincare, nail artistry, makeup, and spa therapies. Our USP lies in providing customized beauty solutions with a focus on organic, cruelty-free products, offering clients a holistic and rejuvenating experience.
Market Overview
Understanding the market size , growth trends, and industry dynamics is crucial. This section should highlight the potential of the local beauty and wellness market, supported by relevant data such as market value and growth rates. Discussing trends, such as the rising demand for natural beauty products or holistic wellness therapies, sheds light on the evolving landscape and your salon’s positioning within it.
Equally important is outlining the competitive landscape. Identify key competitors and elucidate how your salon distinguishes itself within this framework. Whether through specialized services, exceptional customer care, or innovative beauty techniques, this section showcases how your salon stands out amidst the competition.
Example: In the local beauty and wellness market of Vibrant City Heights, valued at $8 million annually with a 10% growth rate, Radiance Beauty Haven stands out by emphasizing organic, cruelty-free beauty products and personalized wellness experiences. Amidst competition, our commitment to holistic beauty practices positions us as the preferred choice for clients seeking a revitalizing and natural approach to beauty care.
Management Team
The expertise and background of your management team are significant assets. Highlight the qualifications and experiences of key team members in your executive summary.
This could include your salon manager’s extensive experience in beauty service management or your marketing director’s specialized skills in client engagement. Demonstrating the team’s proficiency builds credibility and assures potential investors and partners of your salon’s capacity for success.
Example: At Radiance Beauty Haven, Emma Johnson, with a decade of experience in beauty service management and business development, leads the team. Supported by a roster of skilled beauty professionals and wellness experts, each dedicated to curating luxurious and personalized client experiences, the salon promises expertise and excellence in every service.
Financial Plan
A concise overview of your financial goals and projections is crucial. Summarize revenue targets, profit margins, and anticipated growth trajectories, offering a clear picture of your salon’s financial trajectory.
Example: Radiance Beauty Haven aims for a projected revenue of $700,000 within its first year, targeting a 20% net profit margin. Investment in premium beauty equipment and a strategic focus on personalized client experiences, complemented by a robust marketing strategy aimed at wellness enthusiasts, drive anticipated growth and profitability within the local market.
For a Beauty Salon, the Business Overview section is structured into 2 slides:
Salon & Location
Illustrate the ambiance and layout of your beauty salon, highlighting features that create a welcoming and luxurious experience for clients. Discuss the salon’s strategic location, emphasizing how its accessibility and the surrounding area contribute to attracting your target market . Mention the benefits of your chosen location, such as high foot traffic or nearby complementary businesses.
Treatments & Pricing
Explain the variety of beauty treatments and services your salon offers, including facials, manicures/pedicures, makeup, waxing, and more specialized services. Provide an overview of your pricing structure , showing how it aligns with the quality of services and the expectations of your clientele. Also, introduce any special offers, memberships, or loyalty programs designed to retain customers and enhance their experience at your salon.
Industry Size & Growth
In the Market Overview of your beauty salon business plan, initially address the overall size of the beauty salon industry and its prospects for growth. This provides a foundational understanding of the market’s scale and potential for expansion.
Key Market Trends
Next, explore recent trends within the industry, such as the increasing consumer preference for holistic beauty treatments, the demand for eco-friendly and natural beauty products, and the rise of personalized beauty services. For example, point out the growing popularity of bespoke skincare routines and treatments that cater to individual skin concerns, as well as the shift towards sustainable practices in beauty care.
Competitive Landscape
A competitive analysis is not just a tool for gauging the position of your beauty salon in the market and its key competitors; it’s also a fundamental component of your business plan.
This analysis helps in identifying your beauty salon’s unique selling points, essential for differentiating your business in a competitive market.
In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.
Identifying Your Beauty Salon’s Competitors
The initial phase involves identifying and mapping out competitors within the vicinity of your beauty salon. Consider various establishments, such as hair salons, spas, nail studios, and wellness centers, as your primary competitors. For instance, if your salon specializes in organic skincare treatments, your direct competitors might include nearby spas known for their natural therapies, as well as upscale salons offering similar services. Additionally, explore indirect competitors such as makeup stores or mobile beauty services that might cater to overlapping clientele.
Utilize online tools like Google Maps, Yelp, or social media platforms to gain insights into competitor distribution and customer reviews. Reviews often provide valuable information about competitors’ strengths and weaknesses . For instance, if several reviews highlight the exceptional customer service and expertise at “Glow Spa & Beauty,” this signifies a key strength of your competitor, influencing customer preferences.
Beauty Salon Competitors’ Strategies
Analyzing competitors’ strategies encompasses various dimensions:
- Service Offerings: Evaluate the array of services offered by competitors. If “Natural Hair & Wellness” is gaining traction with its emphasis on sustainable beauty practices and holistic treatments, this signals a market inclination towards eco-friendly beauty solutions.
- Technological Advancements: Consider the technological aspects incorporated by competitors. A salon like “Innovate Beauty Lab,” focusing on cutting-edge beauty tech such as laser treatments or AI-driven skincare analysis, might attract a different clientele compared to a traditional salon offering classic beauty services.
- Pricing Structure: Compare your salon’s pricing with that of competitors. Are your services priced similarly to mid-range salons or more in line with premium offerings at “Luxury Beauty Haven”?
- Marketing Approaches: Study how competitors market their services. Do they heavily rely on social media campaigns, influencer collaborations, or do they prioritize loyalty programs and referrals to attract customers?
- Customer Experience: Assess the in-salon experience. For example, “Serenity Spa & Salon” might be recognized for its tranquil ambiance and personalized attention, contributing to an exceptional customer experience.
- Operational Innovations: Observe if competitors employ innovative techniques for efficiency and convenience, such as “Effortless Beauty Bar” utilizing appointment apps or self-check-in kiosks.
What’s Your Salon’s Value Proposition?
Define your beauty salon’s unique value proposition . It could be specializing in bespoke bridal makeovers, offering exclusive organic hair treatments, or providing niche services like permanent makeup artistry that distinguish your salon.
Identify gaps in the market through client feedback and industry trends. For instance, an increasing demand for sustainable beauty products might present an opportunity if competitors are yet to cater extensively to eco-conscious consumers.
Tailor your salon’s offerings and ambiance according to your location. A salon situated in a cosmopolitan area might focus on avant-garde trends and express services. At the same time, one in a suburban locale might emphasize a relaxing, family-friendly environment to cater to a different demographic.
First, undertake a SWOT analysis for the beauty salon, identifying Strengths (such as a diverse range of beauty treatments and experienced beauticians), Weaknesses (like substantial ongoing costs or intense local competition), Opportunities (for instance, an increasing interest in self-care and beauty services), and Threats (such as economic downturns impacting discretionary spending).
Marketing Plan
Next, craft a marketing strategy that describes ways to attract and retain customers through targeted advertising, special introductory offers, active engagement on social media platforms, and participation in community events.
Marketing Channels
These channels are vital for building brand awareness and engaging potential clients.
Digital Marketing
- Leverage Social Media: Showcase your expertise and salon ambiance on platforms like Instagram, Facebook, and Pinterest. Engage your audience through captivating content and live sessions.
- Email Marketing: Regular newsletters featuring beauty tips, exclusive offers, and updates can keep your audience engaged and informed.
- Website and SEO : Develop a professional website optimized for local SEO to rank high in search results.
Local Engagement
- Print Media and Flyers : Design eye-catching flyers distributed in local hotspots. Collaborate with local businesses or influencers for joint promotions.
- Community Events : Participate in or host local events to showcase your salon’s services and connect with potential clients.
- Partnerships: Collaborate with complementary local businesses like hair salons, spas, or bridal shops for joint promotions or package deals, amplifying brand visibility.
Promotional Activities
- Membership Drives : Introduce loyalty clubs offering exclusive benefits to loyal clients, such as early access to new services or VIP appointments. Offer referral bonuses not only to clients but also to staff to encourage team participation.
- Holiday Specials: Apart from holiday-themed packages, consider extending your holiday promotions beyond discounts. Organize charity events or initiatives, aligning your salon with a social cause to resonate with socially conscious customers.
- Referral Bonuses: Incentivize existing clients by offering discounts or freebies for referring new customers to your salon.
Sales Channels
In addition to marketing, various sales strategies can enhance customer satisfaction and maximize revenue for a beauty salon.
Upselling and Cross-Selling
- Enhanced Services : Offer add-on treatments or specialized beauty packages for special occasions.
- Retail Products: Retail beauty products within your salon and educate customers about the benefits of at-home beauty care products.
- Package Deals: Provide bundled services at reduced prices.
Online Booking and Sales
- Efficient Booking System: Implement a user-friendly online booking system on your website and social media platforms. Offer incentives for online bookings.
- E-Commerce Integration : Sell beauty products, gift cards, or exclusive salon merchandise through your website.
- Virtual Consultations : Offer online consultations for personalized beauty advice.
Membership and Loyalty Programs
- Membership Options: Create membership plans offering a range of benefits, such as discounted monthly services or exclusive access to new treatments, encouraging clients to commit to regular visits.
- Loyalty Rewards: Develop a digital loyalty program rewarding clients for every purchase and encouraging repeat business.
Strategy Timeline
Finally, map out a comprehensive timeline that highlights essential milestones for the beauty salon’s launch, promotional campaigns, customer growth, and plans for scaling the business, ensuring that the salon advances with strategic intent and defined objectives.
The Management section focuses on the beauty salon’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the salon towards its financial and operational goals.
For your beauty salon business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.
The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your beauty salon’s approach to securing funding, managing cash flow, and achieving breakeven.
This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.
For your beauty salon business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).
Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds
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Spa Business Plan Template (Examples Inside!)
Published November 21, 2023
As with any business, a business plan is the first step to starting a successful spa. You will continuously reference—and potentially revise—your spa’s business plan to guide your growth and overall success. A business plan for a spa follows the same structure as any other, with a few caveats to be aware of. To stay competitive, spas often diversify their services to include a range of different beauty, fitness, and wellness offerings, with a strong focus on retail sales. Does this describe your spa, or, maybe, your competition? Your business plan will cement your spa’s identity, define its target demographics & competition, and illustrate how it may grow and evolve over time.
Below, we’ve outlined each section of your spa’s business plan, with the kind of information you should include in each. After reading, check out this free spa business plan template PDF for a visual that brings it all to life!
Download Your Free Spa Business Plan
Unsure where to start planning your business? This downloadable PDF guides you through each step of crafting a professional spa business plan, giving you the confidence to approach investors, secure funding, and launch your dream spa!
1. Executive Summary
This section includes:
Intro - Business Name & Location
Begin with the name of your spa business, and its street address, neighborhood, town/city, state/province, etc.
Mission Statement
This is where you state your spa’s core purpose, values and the principles that guide the business. Whatever you stand for and wish to promote, say it here.
Financial Forecast & Funding Requirements
This is a summary of your financial expectations. This includes:
- Projected revenue
- Profit margins
- Break-even analysis (based on the average of your first-year figures for total sales by values and operating expenses)
You may also include when you expect to become profitable, as well as your 3-year & 5-year financial outlooks. If you require funding to open your spa, state how much you’ll need and how you will use it.
2. Business Description
Spa Concept Description
Define the theme you organize your spa business around, the ambiance you’re trying to create and the overall experience you aim to create for clients.
Customer Demographics
Who are your target clients, generally? What are their demographics, preferences, and behaviors? Include age groups, income & education levels, professions and lifestyle characteristics.
Competitor Analysis
Identify any direct (other spas) or indirect (gyms, chiropractors, massage studios) industry competitors in your area and, potentially, in your niche. What do they offer? What are their strengths and weaknesses? Are they potentially missing the set of services you plan to offer? Which gaps can you fill in the market?
Unique Selling Points & Competitive Advantages
What sets your spa apart from the competition? This could be a unique combo of personalized wellness services, a specific atmosphere, flawless customer service, or anything else that makes your spa distinctive. Really sell it here!
3. Market Research & Analysis
Industry Overview
Provide an in-depth look at the spa industry, including its current state, trends, and significant developments. This could include information on the growth of adjacent industries, including the wellness & beauty sector, or yoga & fitness.
Market Trends & Growth Potential
Explore in detail the prevailing trends influencing the spa industry. The rise of holistic wellness, technological advancements and consumer demand for personalized service could affect your spa business. Discuss the growth potential these present for the spa market and how you’ll embrace these trends to enjoy that growth.
Detailed Target Market Analysis
This is where you’ll include a detailed understanding of your target market and the specific segments of the population you aim to serve, highlighting their needs, desires, pain points, and how your spa caters to them. Think of this as a granular look at what you introduced above.
Customer Needs & Preferences
What is your target audience looking for in a spa experience, and how can your spa fulfill those needs better than the competitors you introduced above?
SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
Companies use SWOT analyses all the time to find internal strengths & weaknesses, as well as external opportunities and threats. This analysis helps in formulating strategies to capitalize on strengths and opportunities while addressing weaknesses and mitigating threats.
4. Organization & Management
Legal Structure
Define the legal structure of your spa business. Is it an LLC (Limited Liability Company), a corporation, an S corporation, sole proprietorship or partnership? Explain the reasoning behind this. For example, an LLC is attractive to many spa businesses because it provides personal liability protection, as well as ease in maintenance and broad flexibility in terms of taxation and structure 1 .
Ownership & Management Team
Define your spa’s ownership structure. List all the names and roles of key stakeholders and members of your management team.
Staffing Requirements
Specify the number of employees your spa needs, their roles, and the qualifications or skills you’re looking for. For example, you may need massage therapists, estheticians, and even nutritionists, personal trainers or yoga instructors. Beyond that, you may also need someone with at least 10 years of experience running wellness businesses.
Roles & Responsibilities
A continuation of above, clearly define the roles and responsibilities of each key staff member, from the management and operational sides to any specialized roles within the spa.
Hiring Plans
Outline how you plan to hire and keep employees. This could include recruitment strategies, training programs, and employee development plans. This section is particularly important toward attracting and retaining the best talent. It may be helpful to research how other successful spa businesses do this.
5. Services & Products
Description of Spa Services & Treatments
Give a detailed list and description of all the spa services and treatments you offer.
Pricing Strategy
Outline your pricing structure for each service. Give sound reasoning for how you arrived at these prices and how they compare to competitors in your market. This not only requires research into the spa market, but also economic data relevant to your town, city, state, etc.
Suppliers & Product Sources
Identify your suppliers for equipment, skincare products, and any other items essential to your spa operations. Detail the relationships you have or plan to set up with these suppliers. You may have to establish many partnerships depending on the breadth of services & products you offer.
Proprietary Spa Treatments & Services
Does your spa offer any unique treatments that you created and may have exclusive rights to? Highlight them in this section. Explain what makes these treatments special and how they contribute to your competitive advantage.
6. Sales & Marketing Strategy
Marketing & Advertising Plans
Outline your overall marketing strategy. This should include both online (website, social media, paid media) and offline channels (physical marketing collateral). Specify your target audience and the key messages you want to convey across all channels.
Sales Channels (e.g., online, walk-ins)
Describe the channels through which you will sell your spa services. This could include online booking platforms (we happen to know of a great one ), walk-ins, partnerships with hotels, fitness studios, chiropractors and other businesses/distribution methods.
Promotions & Branding Strategies
Detail any promotional activities you plan to undertake to attract customers. Discuss your branding strategies and how you want your spa to be perceived in the market.
Customer Acquisition & Retention
Outline how you plan to attract new customers to your spa. Additionally, describe your strategies for retaining existing customers, such as loyalty programs, special offers or membership plans.
7. Funding & Financial Projections
Startup Costs & Initial Funding Requirements
Break down your spa’s estimated startup costs. This could include expenses such as lease payments, renovations, equipment purchases, initial inventory, and marketing expenses.
Financial Forecasts
This is a detailed financial projection for your spa. Include prospective income statements, balance sheets, and cash flow statements. The figures and graphs in this section are not arbitrary. Provide realistic assumptions and projections based on thorough market research.
Break-even Analysis
A break-even analysis determines the point at which your spa will cover all its expenses and start generating profit. This analysis is necessary for understanding your timeline to profitability.
Funding Sources (e.g., loans, investors)
Clearly state how much funding you are seeking and how you plan to use it. Identify potential sources of funding, such as personal investment, loans, or equity financing.
8. Location & Facilities
Physical Location
Describe the location of your spa, including the address, size of the facility, and any unique features of the surrounding area.
Building Lease or Purchase
Outline the terms of your lease, including the duration, monthly rent, and any special conditions. If you purchased the property, then provide details of the purchase.
Layout & Design Plans
Describe the layout and design of your spa, including floor plan, interior design elements, and how the space is optimized for a relaxing and comfortable experience.
Equipment & Technology Requirements
List all equipment needed for spa operations. This could include massage tables, skincare machines, Cryotherapy chambers, sensory deprivation tanks, computer systems for scheduling, and any other essential technology for your spa business.
9. Licensing & Compliance
Regulatory & Licensing Requirements
List the specific licenses and permits needed to run a spa in your location. These include business licenses and health department permits, as well as other industry-specific certifications, such as:
- Massage therapy license
- Cosmetology license
- Yoga instructor certification
- Reiki practitioner certification
- Wellness coach certification
- Medspa staff certifications
- Spa manager certification
Health & Safety Standards
Detail the measures you have in place to ensure the health and safety of your clients and staff. Discuss compliance with industry standards and any additional precautions you are taking.
Insurance Coverage
Providing details about insurance coverage is important for risk management. Describe the insurance coverage for your spa.
These include, but are not limited to:
General liability insurance
Professional liability insurance
Property insurance
Business interruption insurance
Product liability insurance
Worker’s compensation insurance
Cyber liability insurance
Employment practices liability insurance (EPLI)
10. Risk Analysis
Potential Risks & Challenge
Identify and analyze potential risks and challenges to your spa business. These may be economic downturns, changes in consumer attitudes & preferences, or unexpected events, such as natural disasters.
Contingency Plans
Outline contingency plans for addressing the risks identified above. Describe how you plan to mitigate their impact and navigate challenges that may arise during your spa's operation.
Risk Mitigation Strategies
List your strategies for minimizing or eliminating potential risks to your spa business. This may involve diversification of services, which increases revenue streams, helps your spa stay relevant, spreads your investments and attracts new clients. You may also list potential strategic partnerships, or emergency financial planning to weather economic uncertainties.
11. Appendices
Additional Information
Include any additional information that supports or complements the main body of your business plan. This could be:
- Resumes of key team members
- Detailed market research data
- Legal documents (contracts, permits, etc.)
Organize this section clearly and logically with each document or piece of information accurately labeled and referenced in the business plan where relevant.
It’s important to know that every business plan is arranged a bit differently, especially for spas, which offer such a diverse range of services. Think of this article and sample as a general template, be sure to conduct thorough research, and gather data to support your business plan. Make sure that your business plan is detailed and convincing for any potential investors you’ll need to fund your business. Choosing the industry standard for spa booking and management software is one way to show stakeholders that you’re serious about running a thriving business. Start your 30-day FREE trial and experience how Vagaro can help you start an efficient & profitable spa!
Sources: https://dayspaassociation.com/forming-your-corporation/
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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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Beauty Salon Business Plan Template
Written by Dave Lavinsky
Beauty Salon Business Plan
You’ve come to the right place to create your beauty salon business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their beauty salons.
Below is a salon business plan example to help you create your own beauty salon business plan.
Executive Summary
Business overview.
Major Lengths Beauty Salon is a newly established hair and beauty bar located in Glendale, Arizona that is founded by Jenna Diaz, a local hair stylist and aesthetician that has worked in the industry for over 15 years. Jenna’s knowledge in hair, nail, and facial trends have made her a popular stylist in the community. As her client list continues to grow, Jenna realizes that it’s time for her to open up her own salon.
Major Lengths Beauty Salon will be located in Glendale’s upscale district in a 5,000 square foot retail space. The area is highly trafficked with middle to high income residents who spend on luxury items such as cars, clothes, jewelry.
The beauty salon will offer haircuts and treatments, facials, manicures, and pedicures. Major Lengths will also carry a large selection of hair and beauty products that will be available for purchase. Jenna will have a loyalty program where the top clients will receive discounts on their service as a thank you for remaining loyal and referring other potential clients to the salon.
Product Offering
The following are the services that Major Lengths Beauty Salon will provide:
- Color Treatment
- Healthy Hair Treatment
- Nail Services
Customer Focus
Major Lengths Beauty Salon will target the male and female adult population of Glendale, although the majority of clientele will be women. They will be middle to high income and working in a variety of industries, such as medical, legal, business, education, or other white collar professions. The salon will target stay at home mothers as well who enjoy a day of pampering.
Management Team
Major Lengths Beauty Salon will be owned and operated by Jenna Diaz, a local Arizona hair stylist and aesthetician. Her years of experience and in the industry have allowed her to meet the following talented individuals.
Jenna has recruited a talented nail technician and aesthetician from her previous salon to join her at Major Lengths. Jenna regards them as the best in the industry and knows that their quality of work is up to her high standards. They also have a loyal and large list of clients that will likely follow them to the new salon.
While the three of them will be in charge of their respective department, Jenna will be the head manager to oversee the entire operation of the beauty salon.
Success Factors
Major Lengths Beauty Salon will be able to achieve success by offering the following competitive advantages:
- Latest hair and nail trends
- Modern and comfortable environment
- More selection of each service offered than any other salon in town
- Major Lengths Beauty Salon offers the best pricing in town
Financial Highlights
Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon. The funding will be dedicated towards securing the retail space and purchasing the salon furniture, equipment, decorations, opening inventory, and working capital. The breakout of the funding is below:
- Beauty salon build-out: $30,000
- Opening inventory, furniture, equipment, decorations: $40,000
- Three months of overhead expenses (payroll, rent, utilities): $15,000
- Marketing costs: $5,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Major Lengths Beauty Salon.
Company Overview
Who is major lengths beauty salon.
Major Lengths Beauty Salon is a newly established hair and beauty bar located in Glendale, Arizona. The company is founded by Jenna Diaz, a local hair stylist and aesthetician that has dedicated her career to making women look and feel their best. Throughout her years in the beauty industry, Jenna gained extensive knowledge in hair, nail, and facial trends as well as how to give exceptional customer service to all of her clients. Jenna realizes that men and women invest a lot of time and money into their appearance and she takes extra care to ensure her clients not only feel special, but walk away with their desired result.
Major Lengths Beauty Salon will be located in Glendale’s upscale district in a 5,000 square foot retail space. The area is highly trafficked with middle to high income residents who spend on luxury items such as cars, clothes, jewelry. Some of Arizona’s most expensive homes are within a 15-mile radius from the location. The salon will be decorated with a contemporary style, have modern furnishings, and include a welcoming waiting and reception area, large hair styling room, and separate areas for facials and nail services.
Major Lengths Beauty Salon History
Major Lengths is owned and operated by Jenna Diaz, a local hair stylist and aesthetician who has made her career working in the beauty industry for the past 15 years in Glendale. She has gained extensive knowledge through her continuing education and industry seminars. Jenna has a long list of loyal clientele who will follow her to her new salon. Aside from her beauty salon knowledge and expertise, Jenna has taken local business courses to learn salon management and leading a small team of stylists, manicurists, and aestheticians.
Since incorporation, Major Lengths Beauty Salon has achieved the following milestones:
- Registered Major Lengths Beauty Salon, LLC to transact business in the state of Arizona.
- Has obtained the necessary salon permits and licenses for the state of California.
- Has a lease contract in place for the 5,000 square foot beauty salon.
- Has developed the complete list of salon services and products.
- Has developed the beauty salon’s logo and branding image.
- Began recruiting a team of stylists, manicurists, and nail technicians.
Major Lengths Beauty Salon Products
The following will be the services Major Lengths Beauty Salon will provide:
Industry Analysis
The Beauty Salon industry is expected to increase in size by 2.5% over the next five years. Demand for industry services mirrors broader economic performance, as economic growth boosts consumer spending on personal care products and services. Specifically, new products and services have favorably contributed to industry revenue growth over the majority of the past five years.
Online platforms such as Instagram and Facebook have provided a convenient and low-cost marketing strategy for many stylists and technicians to garner new clientele. Higher service prices and increased consumer spending on high-margin merchandise and services have also fueled revenue growth, as operators capitalize on rising per capita disposable income. Continued growth in household income over the outlook period is expected to drive consumer spending and boost demand for premium personal care services. Moreover, equipped with larger budgets, consumers will likely continue to favor professional salon products and services, such as hair coloring services, over less expensive alternatives sold at drugstores and supermarkets. Environmental sustainability concerns are expected to become more prevalent over the next five years, leading salons to offer a wider array of eco-friendly products that appeal to trending consumer preferences. Specifically, nontoxic products will likely benefit industry revenue, staff and patrons. This growing niche will likely drive hair salon revenue over the coming years.
Customer Analysis
Demographic profile of target market.
The precise demographics for Glendale, Arizona are:
Total Population | 130,250 |
---|---|
Male | 51.40% |
Female | 48.60% |
15 to 19 years | 10.60% |
20 to 24 years | 16.30% |
25 to 29 years | 21.90% |
30 to 34 years | 25.40% |
Household Income $50,000 to $74,999 | 3.50% |
Household Income $75,000 to $99,999 | 11.50% |
Household Income $100,000 to $124,999 | 17.40% |
Household Income $125,000 to $149,999 | 20.50% |
Household Income $150,000 to $199,999 | 21.60% |
Household Income $200,000 or more | 25.50% |
Customer Segmentation
Major Lengths Beauty Salon will primarily target the following customer profiles:
- Stay at home mothers and fathers
- Working professionals
- College students
- Retired females
- Mothers with adult or teenage daughters
Competitive Analysis
Direct and indirect competitors.
Major Lengths Beauty Salon will face competition from other companies with similar business profiles. A description of each competitor company is below.
Hair Xtreme
Hair Xtreme is located on the west side of Glendale and is owned by a local hair stylist with over 30 years of experience. Hair Xtreme specializes in haircuts and hair coloring services as well as hair color correction. The owner is also certified in Balayage highlighting by the prestigious L’oreal SOHO Academy. Hair Xtreme Beauty Salon was established to create a higher level of service in the Glendale community and has amassed a large clientele. The salon is regarded as the go-to salon for anyone looking for extreme color or haircut transformation. The pricing of services are on the higher end of the spectrum and caters to the community in the middle to higher income range.
Hair Xtreme Beauty Salon’s full list of services include haircuts, balayage, ombre, highlights, color retouch, hair treatments, and special occasion styles. The salon is open Tuesday through Saturday and is by appointment only.
The Complete Package
The Complete Package is not only a hair and nail salon in Glendale, but also provides massage treatment, eyelash extensions, and body treatments. The salon is moderately priced and leans to be more affordable to target the population who doesn’t spend lavishly on beauty services, but also occasionally like to get pampered. Owned and operated by a mother and daughter team of hair stylists, The Complete Package is located in a small retail shopping center in the middle of the city. The salon has been in operation for over 20 years and was founded by Kate Beneducci. She was able to bring The Complete Package into operation due to her experience and background in cosmetics, marketing, and management. Every single stylist is a certified cosmetologist and are all required to attend a mandatory training every year to learn the latest techniques.
The Complete Package’s full list of salon services include hair, makeup, eyelash extensions, and nails. The full list of spa services include waxing, facials, microdermabrasion, massage, and body treatments. The salon regularly posts promotions to increase customer loyalty. The Complete Package is open daily by appointment and is able to take walk-ins Friday through Sunday.
Fringe Beauty Salon and Spa
Fringe Beauty Salon and Spa is located on the west side of Glendale, Arizona and was established in 2013 as a premier beauty salon. Fringe caters to the higher income clientele and their pricing is the most expensive in town. The owner relocated to Glendale to start her own beauty salon after working in the beauty industry in New York and Los Angeles for many years. She did hair and salon services for many celebrities and has been known to be the stylist for awards shows such as the Emmys and Oscars.
As a Glendale native, she relocated to her hometown to provide a higher quality of salon services to the community. The full list of services for Fringe Beauty Salon include haircuts, hair treatments, hair color, balayage, ombre, special occasion, manicures, pedicures, massage, facials, eyelash extensions, waxing, and makeup.
With a luxury atmosphere and relaxing spa environment, Fringe Beauty Salon and Spa is frequently booked for those wanting a full day of pampering.
Competitive Advantage
Major Lengths Beauty Salon will be able to offer the following advantages over their competition:
- Friendly and knowledgeable staff who are all trained and experienced in the latest hair and beauty trends.
- Complete list of beauty salon services intended to provide a full day of pampering and relaxation.
- Casual and comfortable environment with a luxurious feel.
- Major Lengths Beauty Salon offers the best pricing in town for the high quality of services provided. Their pricing structure is the most cost effective compared to the competition.
Marketing Plan
Brand & value proposition.
Major Lengths Beauty Salon will offer the unique value proposition to its clientele:
- Complete list of beauty salon services all provided by trained and knowledgeable hair stylists, manicurists, and aestheticians.
- Pricing is affordable and moderate so customers perceive value when visiting the beauty salon.
Promotions Strategy
The promotions strategy for Major Lengths Beauty Salon is as follows:
Website/SEO Marketing
Major Lengths Beauty Salon has hired an advertising firm to develop their branding image and logo. They will also develop the hair salon’s website. The website will include a full list of services, pricing, and pictures. The advertising company will also manage the company’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Glendale beauty salon” or “beauty salon near me”, Major Lengths Beauty Salon will be listed at the top of the search results.
Word of Mouth/Referrals
Jenna Diaz has a long list of loyal clients that have been with her for decades. They will follow her to the new salon and will receive additional clients from their referrals.
Social Media
Once the branding and logo is finalized, Jenna will use social media to her advantage and create social media business pages on all of the popular social media platforms. She will commit to posting daily to increase the list of followers and use it to regularly engage with customers.
Print Advertising
Major Lengths Beauty Salon will invest in professionally designed print ads to display in local magazines and hand out flyers to local businesses.
The pricing of Major Lengths Beauty Salon will be moderate and on par with competitors so customers feel they receive value when purchasing their salon services.
Operations Plan
The following will be the operations plan for Major Lengths Beauty Salon.
Operation Functions:
- Jenna Diaz will be the Owner and Manager of the beauty salon. She will order salon inventory and products, oversee staff, payroll, and manage customer service.
- Melanie Brooks – Head nail technician that will oversee the nail department.
- Fiona Adams – Head aesthetician that will oversee the facial and massage departments.
- Jenna has hired third party companies to manage the bookkeeping, accounting, tax payments, insurance, and legal requirements.
Milestones:
Major Lengths Beauty Salon will have the following milestones complete in the next six months.
8/1/202X – Finalize retail space for beauty salon
8/15/202X – Begin build-out of beauty salon to include stylist stations, facial and massage rooms, and nail service area
9/1/202X – Order opening inventory
9/15/202X – Begin marketing campaign
9/22/202X – Hire staff of hair stylists, nail technicians, massage therapists, and aestheticians
10/1/202X – Major Lengths Beauty Salon Grand Opening Event
Major Lengths Beauty Salon will be owned and operated by Jenna Diaz, a local Arizona hair stylist and aesthetician. Jenna has made an impressive career helping women achieve their desired look and feel. As an Arizona native, Jenna has attended the local beauty college and attends industry trade shows and training seminars annually. She has amassed a large and loyal clientele and has even done hair treatments, cuts, and facials for local celebrities and sports personalities. Jenna is committed to establishing a beauty salon in her hometown of Glendale and making it a place where the women and men flock to when they want the latest hairstyle, manicure, or facial.
While the three of them will be in charge of their respective department, Jenna will be the head manager to oversee the entire operation of the beauty salon. She will also outsource a third party insurance company, CPA, and attorney to take care of her insurance, legal obligations, and tax filings. Jenna will also employ a part time bookkeeper to handle her day to day accounting and payroll of staff.
Financial Plan
Key revenue & costs.
The revenue drivers for Major Lengths Beauty Salon are the sales from hair services, nail services, massages and facials.
The cost drivers will be the overhead costs required to staff the beauty salon. The expenses will be the payroll cost, rent, utilities, salon inventory, and marketing materials.
Funding Requirements and Use of Funds
Major Lengths Beauty Salon is seeking $100,000 in debt financing to open the beauty salon. The funding will be dedicated towards securing the retail space and purchasing the salon furniture, equipment, decorations, opening inventory, and working capital. Jenna will need to allocate funds for the first three months of payroll and operating expenses as well as spend approximately on branding and marketing. The breakout of the funding is below:
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Beauty Salon Services Sold Per Month: 300
- Average Revenue per Month: $20,000
- Beauty Salon Lease per Year: $110,000
Financial Projections
Income statement.
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
Expenses & Costs | ||||||
Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
LIABILITIES & EQUITY | ||||||
Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | ||||||
Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
CASH FLOW FROM INVESTMENTS | ||||||
Investment | ($180,950) | $0 | $0 | $0 | $0 | |
Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
CASH FLOW FROM FINANCING | ||||||
Cash from equity | $0 | $0 | $0 | $0 | $0 | |
Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Beauty Salon Business Plan Template FAQs
What is a beauty salon business plan.
A beauty salon business plan is a plan to start and/or grow your beauty salon. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your beauty salon business plan using our Beauty Salon Business Plan Template here .
What are the Main Types of Beauty Salons?
There are a number of different kinds of beauty salons, some examples include: Beauty salon focusing strictly on hair styling, beauty salon offering hair removal services, skin care services, nail services, tanning services, or massage services, and beauty salon offering products.
How Do You Get Funding for Your Beauty Salon Business Plan?
Beauty salons are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for a beauty salon or a hair salon business plan.
Why do You Need a Business Plan Template?
If you’re looking to start a beauty salon business or grow your existing salon business, you need a business plan. A hair salon business plan template will help you raise funding, if needed, and plan out the growth of your beauty salon in order to improve your chances of success. Your salon business plan is a living document that should be updated annually as your company grows and changes.
Where Can I Get a Beauty Salon Business Plan PDF?
You can download our free beauty salon business plan template PDF here . This is a sample beauty salon business plan template you can use in PDF format.
How To Create the Ultimate Spa Business Plan
B uilding your ultimate spa business means figuring out your brand, audience, and services. Picking the right software matters for both initial and prolonged success.
Ramp Up Your Revenue With the Ultimate Spa Business Plan
There is no time like the present to start a spa business. Although creating your spa business plan might feel like a daunting task, AestheticsPro is here to let you know that crafting the ultimate spa business plan can be done, and we can help you figure it out. From creating your own unique brand to coordinating your services, you can get your spa off to a great start by forming and sticking to a plan.
Create Your Brand
Before you do anything else, think about how you want to present your spa. What is its brand? What do you wish to convey to potential clients? Is your spa more upscale or low-key? How you visually present your vibe matters, so consider your brand while building your spa business plan or medical spa business plan.
Start by picking a relevant and catchy name. This name should reflect your target clientele, and it can also reference your community or family name. From there, you will want to select your typography and logo for visual cues, then think about how you will integrate photography and a color palette.
Determine Which Services You'll Offer and What Equipment You'll Need
Once you have nailed your brand, consider which services you will offer and which pieces of equipment you will need. You can diversify your med spa or spa business plan as you see fit. A business can be considered a spa if it offers at least two of the following services:
- - Body treatments (including hair removal and skincare)
- - Skin care (makeup included)
- - Massage care
Med spas are defined by the American Med Spa Association ( AmSpa ) as a hybrid between an aesthetic medical center and a day spa. They provide services like Botox, neurotoxins and injectables, and fillers.
You are probably going to want to provide at least a few of the services mentioned above, if not all of them (in which case you will be considered a full-service spa). Consider hiring an employee who is knowledgeable about services you are less familiar with. Also bear in mind that you will need to adhere to state and local licensing laws.
If you are running a day spa, you will need facilities like lockers and showers for your clients, as well as sound-proof rooms for quiet massage treatments. You might also want to invest in things like massage chairs or tables, hot towel warmers, furniture for the reception area, a pedicure ottoman, and a jacuzzi or hydrotherapy tub.
Hone In on Your Target Audience
Who are you really catering to? Who is your ideal client? Consider what will attract the right client. What is in demand right now? Massages are popularly sought-after by clients, and the majority of spa-goers tend to get them at least once a year.
Look around at the vast spa industry for clues to who goes to spas. AmSpa reports that men account for around 10% to 20% of all cosmetic treatments. Men are going to spas more and more, and they are certainly worth integrating into your target audience.
Market Your Spa
How you market your spa matters. Jumping on social media on occasion just won't cut it - you need to be strategic and consistent. Marketing is psychologically-based and multi-faceted. Used properly, social media platforms are a great way to start off, and they can help you get some initial promotions noticed by the general public. Using a lead generator, like the Lead Generator API offered by AestheticsPro , on your site along with social media and email marketing makes it easy for leads to request more information. You can include a special promotion discount or package deal for those who subscribe to your newsletter.
According to recent studies, 85% of consumers trust print ads the most when making a purchasing decision. Print marketing has not yet gone out of style, but you need to factor in the cost of it versus online marketing. Do not rule print marketing out entirely from your aesthetic spa business plan.
Select the Software You Will Need
AestheticsPro offers a wide range of software options for your spa. Client management tools lets you easily access client information and share knowledge among your team. You can coordinate the scheduling of rooms, equipment, and services with service and scheduling management tools. You can also utilize revenue boosting features such as gift cards, packages, loyalty points, and rewards and referrals. No matter which features you use within a software application, you will find that software designed specifically for the medical spa industry will save you time and money while keeping you compliant and organized.
If you're stuck, contact AestheticsPro . Check out our demo and look at a med spa business plan sample. Building a business plan for a spa can be accomplished without a lot of hassle, and we are here to help you.
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Hair And Beauty Salon Business Plan
Start your own hair and beauty salon business plan
Trend Setters Hair Studio
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.
There is a need for a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship.
We plan to supply services and products that enhance our clients’ physical appearance and mental relaxation.
We will be targeting male and female clients who are fashion conscious and have disposable income. Our clients are mostly women, but we will make sure to include men who fit the criteria as well
Competition
There are a number of salons like ours, but they are mainly in the very high income parts of MyTown and surrounding areas. We do not intend to compete with these so called “Day Spas.” We wish to offer a middle ground for those clients who can’t quite afford those high-end luxury salons.
Trend Setters will, upon commencement of operations, sell a wide range of beauty services and products. We will provide quality hair, nail, and skin services, along with top lines of beauty products. What will set Trend Setters apart from the competition is our commitment to providing all of these services in one convenient location.
Expectations
The forecast shows small profits leveling out in the third year. We believe this is realistic, even conservative. Of course we will be watching actual results on a monthly basis, and revising the forecast as necessary.
Financial Highlights by Year
Financing needed.
We plan on needing $60K owner’s investment and getting a $50K vendor financing to purchase equipment.
Starting costs include $50K cash cushion, $9K starting expenses before launch, and $53K tangible assets at launch.
Problem & Solution
Problem worth solving.
There is a demand for high fashion haircuts, manicures, and pedicures at reasonable prices. Men and women should not need to sacrifice their essentials to get a treatment that makes them feel good about themselves.
Our Solution
Trend Setters is a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at a reasonable price/value relationship. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work.
Target Market
Market size & segments.
The market is our town, middle class, mostly women, so largely moms, working moms, and singles.
We’re not doing formal market research because we know this market pretty well and we’re comfortable with market prospects in our town. We’ve been in this business for decades now. If we execute right, our customers will come in as we bring in our beauticians and barbers.
Current Alternatives
We’re well aware of a lot of competition, existing salons, all over town. We are not going to try to compete with the expensive spa salons around, with visibly fancy locations; and we are going to look nicer and price above the less fashionable strip mall and in-home options.
We’re not pretending to be unique. We intend to bring in loyal customers because we are good people, easy to work with, good at what we do, friendly, and helpful.
Our Advantages
Trend Setters wants to set itself apart from other beauty salons that may offer only one or two types of services. Having come from such a salon, Curley has realized, from talking with her clients, that they desire all of the services that we are proposing, but they remain frustrated because they must get their hair done at one place, and nails done at another. Although the focus of Trend Setters is hair services, we do wish to offer our clients the convenience of these other services in one location.
There are a number of salons like ours, but they are mainly in the very high-income parts of MyTown and surrounding areas. We do not intend to compete with these so-called "Day Spas." We wish to offer a middle ground for those clients who can’t quite afford those high-end luxury salons.
Our business atmosphere will be a relaxing one where clients can kick back and be pampered. Soft drinks will be offered to clients as they enter for service. Televisions will be located in the waiting and hair-drying area.
Keys to Success
The keys to success in our business are:
- Location: providing an easily accessible location for customers.
- Environment: providing an environment conducive to giving relaxing and professional service.
- Convenience: offering clients a wide range of services in one setting, and extended business hours.
- Reputation: reputation of the owner and other "beauticians" as providing superior personal service.
Marketing & Sales
Marketing plan.
We anticipate regular steady social media presence, in Facebook and Twitter. Our experience has shown that social media is the best advertising for this type of business. We will, however, run specials occasionally. We will also ask clients for social media referrals, and reward them with discounted or free services depending on the number of clients they bring. We will also offer discounts to the new clients who have been referred.
We expect income to increase steadily over the next three years, as the reputation of the salon, its stylists and services become apparent to the general public. Second year revenues also anticipate the addition of one new stylist.
Locations & Facilities
The salon will be located in a retail strip mall at 1234 Stylish Road, MyTown. The salon will utilize 1,540 square feet. The location is strategically situated on one of the busiest streets in MyTown. It is a high profile area, with easy access from all parts of town.
Milestones & Metrics
Milestones table.
Milestone | Due Date | |
---|---|---|
Sept 14, 2018 | ||
Sept 24, 2018 | ||
Oct 01, 2018 | ||
Nov 12, 2018 | ||
Nov 30, 2018 |
Key Metrics
The key metrics that will make this business a success is:
- Average revenue per client per month.
- Average breakdown revenue from previous clients vs. revenue from new clients. We’ll develop specific standards as we go, so first we track. This will show us repeat business and new leads from word of mouth.
- New clients from word of mouth. We’re going to have the discipline to ask new clients how they heard about us. As we develop the business we’ll track this metric and see how the different people compare.
- Facebook likes and Twitter follows. We’ll develop standards as we develop the business. We need experience to see how this works.
Ownership & Structure
Curley Comb, co-owner with Roller Comb, Jr., co founded and co own this llc
Management Team
Curley Comb, co-owner with Roller Comb, Jr., her husband, has worked in a prestigious, upscale salon in MyTown, Texas for the past two years. Curley has created a large client following through hard work and dedication. Curley, and her talented team of beauticians, has what it takes to make this venture an extremely successful one. We expect our growing reputation to lead to new clients and beauticians to support our anticipated growth.
Personnel Table
FY2019 | FY2020 | FY2021 | |
---|---|---|---|
Stylist 1 | $52,242 | $54,000 | $54,000 |
Barber | $49,440 | $54,000 | $54,000 |
Stylist 2 (0.78) | $19,200 | $60,000 | $60,000 |
Owner | $60,000 | $75,000 | $93,750 |
Receptionist | $30,000 | $31,500 | $33,075 |
Totals | $210,882 | $274,500 | $294,825 |
Financial Plan investor-ready personnel plan .">
Key assumptions.
- We’ll be using a full commission model with stylists and barber getting 60% commission on revenue. Industry average runs 45-65%. We’re on the high end because we are not offering a guaranteed base. This is what we’re used to. The owner will take a straight salary plus dividends on profits.
- We’ve looked at the booth rental model but we’re used to commission and that creates a more orderly process for payments too, with all stylists able to use our credit card account.
- There can occasionally be issues with commission base related to reporting revenue, but we are a small salon with the owner mostly present.
- We project revenues lower than average over the first few months, and then stable. We anticipate annual increase to stay steady throughout the following year to account for the normal flow of new clients coming into the salon. Estimates for sales revenue and growth are intentionally low, while anticipated expenses are exaggerated to the high side to illustrate a worst-case scenario.
- Our direct costs are mainly stylist and barber commissions plus direct costs of the products we intend to sell, plus an estimate for the ongoing cost of products, supplies, etc.
- Product sales are a minimal part of our market. We are not quite sure how much revenue will be derived from products, so we took a low-ball approach and estimated sales of $800 a month. Also in the sales projections table are services such as nails and massages. We are not quite sure how much revenue these two services will generate. We are certain that in time these services will be a large part of our revenue, but to err on the conservative side, we estimate revenues from these services to be only $1,500 a month for the first year.
Revenue by Month
Expenses by month, net profit (or loss) by year, use of funds.
We estimate initial purchase of $50,000 in equipment plus $1,000 for starting inventory and $2,000 for other current assets (supplies mostly) and $9,000 in initial loss for expenses incurred before launch. These include legal, location fix-up, early marketing expenses, branding, logo, and social media.
We also estimate needing $50,000 cash cushion when we start.
Total starting costs, therefore, are $9K in expenses plus $103,000 in assets including $53,000 tangible assets and $50,000 cash in the bank.
Sources of Funds
We anticipate $60,000 in owner investment from owner savings, which shows up as paid-in capital in the initial balance; plus a 5-year $50,000 vendor/manufacturer loan to finance initial equipment.
Projected Profit & Loss
FY2019 | FY2020 | FY2021 | |
---|---|---|---|
Revenue | $336,570 | $427,600 | $437,600 |
Direct Costs | $146,214 | $200,400 | $200,400 |
Gross Margin | $190,356 | $227,200 | $237,200 |
Gross Margin % | 57% | 53% | 54% |
Operating Expenses | |||
Salaries & Wages | $90,000 | $106,500 | $126,825 |
Employee Related Expenses | $13,500 | $15,975 | $19,024 |
Rent | $18,000 | $30,000 | $33,000 |
Marketing | $6,731 | $8,552 | $8,752 |
Amortization of Other Current Assets | $0 | $0 | $0 |
Total Operating Expenses | $128,231 | $161,027 | $187,601 |
Operating Income | $62,124 | $66,173 | $49,600 |
Interest Incurred | $1,832 | $1,457 | $1,065 |
Depreciation and Amortization | $10,000 | $10,000 | $10,000 |
Gain or Loss from Sale of Assets | |||
Income Taxes | $5,029 | $5,472 | $3,853 |
Total Expenses | $291,307 | $378,355 | $402,920 |
Net Profit | $45,263 | $49,245 | $34,680 |
Net Profit/Sales | 13% | 12% | 8% |
Projected Balance Sheet
Starting Balances | FY2019 | FY2020 | FY2021 | |
---|---|---|---|---|
Cash | $50,000 | $87,971 | $107,163 | $91,584 |
Accounts Receivable | $0 | $0 | $0 | |
Inventory | $1,000 | $1,000 | $1,000 | $1,000 |
Other Current Assets | $2,000 | $2,000 | $2,000 | $2,000 |
Total Current Assets | $53,000 | $90,971 | $110,163 | $94,584 |
Long-Term Assets | $50,000 | $50,000 | $50,000 | $50,000 |
Accumulated Depreciation | ($10,000) | ($20,000) | ($30,000) | |
Total Long-Term Assets | $50,000 | $40,000 | $30,000 | $20,000 |
Total Assets | $103,000 | $130,971 | $140,163 | $114,584 |
Accounts Payable | $2,000 | $1,395 | $1,906 | $2,040 |
Income Taxes Payable | $2,341 | $1,372 | $966 | |
Sales Taxes Payable | $192 | $192 | $192 | |
Short-Term Debt | $9,220 | $9,595 | $9,986 | $10,393 |
Prepaid Revenue | ||||
Total Current Liabilities | $11,220 | $13,523 | $13,457 | $13,591 |
Long-Term Debt | $40,780 | $31,185 | $21,198 | $10,805 |
Long-Term Liabilities | $40,780 | $31,185 | $21,198 | $10,805 |
Total Liabilities | $52,000 | $44,708 | $34,655 | $24,396 |
Paid-In Capital | $60,000 | $60,000 | $60,000 | $60,000 |
Retained Earnings | ($9,000) | ($19,000) | ($3,737) | ($4,492) |
Earnings | $45,263 | $49,244 | $34,681 | |
Total Owner’s Equity | $51,000 | $86,263 | $105,508 | $90,188 |
Total Liabilities & Equity | $103,000 | $130,971 | $140,163 | $114,584 |
Projected Cash Flow Statement
FY2019 | FY2020 | FY2021 | |
---|---|---|---|
Net Cash Flow from Operations | |||
Net Profit | $45,263 | $49,245 | $34,680 |
Depreciation & Amortization | $10,000 | $10,000 | $10,000 |
Change in Accounts Receivable | $0 | $0 | $0 |
Change in Inventory | $0 | $0 | $0 |
Change in Accounts Payable | ($605) | $511 | $133 |
Change in Income Tax Payable | $2,341 | ($969) | ($406) |
Change in Sales Tax Payable | $192 | $0 | $0 |
Change in Prepaid Revenue | |||
Net Cash Flow from Operations | $57,191 | $58,787 | $44,408 |
Investing & Financing | |||
Assets Purchased or Sold | |||
Net Cash from Investing | |||
Investments Received | |||
Dividends & Distributions | ($10,000) | ($30,000) | ($50,000) |
Change in Short-Term Debt | $376 | $391 | $407 |
Change in Long-Term Debt | ($9,595) | ($9,986) | ($10,393) |
Net Cash from Financing | ($19,220) | ($39,595) | ($59,986) |
Cash at Beginning of Period | $50,000 | $87,971 | $107,163 |
Net Change in Cash | $37,971 | $19,191 | ($15,578) |
Cash at End of Period | $87,971 | $107,163 | $91,584 |
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Starting a spa can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.. 1. Develop A Spa Business Plan - The first step in starting a business is to create a business plan for your spa that outlines all aspects of the venture. This should include market research on the spa industry, potential target ...
Financial Plan. A clear presentation of your financial goals and projections is key. This should include targets for revenue and profit margins, showcasing the financial viability and growth potential of your spa. Example: Serenity Oasis Spa aims to hit $1.3 million in yearly revenue with a 16% EBITDA margin by 2028.
Here is a sample spa business plan that will help you effectively write yours without much hassle. A Sample Beauty Salon & Day Spa Business Plan Template 1. Industry Overview. In the united states of America there is always the need to work so as take care of the basic needs of life. Some folks get to work round the clock with little or no time ...
July 22, 2024. Business Plan. Creating a comprehensive business plan is crucial for launching and running a successful beauty salon. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your salon's identity, navigate the competitive market, and secure funding for growth.
This section of your spa business plan highlights your spa's main offerings. It provides a comprehensive overview of what clients can expect when they book an appointment and how your services differentiate you from competitors. It also helps potential investors understand your spa business's revenue streams.
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 ...
1) Salons with Day Spa Services: Hair salons that offer limited spa services like massage and facials. 2) Heath & Beauty Products: Stores selling only merchandise products covering the wide range of products available, but not inclusive of those sold by salons and spas. 3) Hotels with Spa Services: Major hotels with on-site spas.
Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.
Download this template to create your own spa business plan, with the following sections: Executive Summary, including an overview of your spa business, your target market, the various services you provide (think massage, facials, waxing, etc.), and your competitive landscape. Organization and Management, including hiring needs and other ...
Marketing Plan. Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a spa business plan, your marketing plan should include the following: Product: in the product section you should reiterate the type of spa that you documented in your Company Analysis.
A business plan provides a snapshot of your salon as it stands today, and lays out your growth plan for the next five years. It explains your business's goals, business model, the type of services you will offer (beauty services, spa services, nail services, skin care services and/or hair salon services), management team, target market, and a marketing plan for the many ways you can reach ...
PlanBuildr's Beauty Salon business plan template will help you to quickly and easily complete your Beauty Salon business plan. ... Fringe Beauty Salon and Spa is located on the west side of Glendale, Arizona and was established in 2013 as a premier beauty salon. ... This is a sample beauty salon business plan template you can use in PDF format ...
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.
The real version of Growthink's Ultimate Spa Business Plan Template is much more than a fill-in-the-blanks template. That template professionally guides you step-by-step so you can quickly, easily and expertly complete your business plan. Perhaps most importantly, it includes complete financial projections.
How you visually present your vibe matters, so consider your brand while building your spa business plan or medical spa business plan. Start by picking a relevant and catchy name. This name should reflect your target clientele, and it can also reference your community or family name. From there, you will want to select your typography and logo ...
994.MoSCoW Prioritisation1 IntroductionIn an Atern project where time has been fixed, understanding the relative importance of things is vital to. making progress and keeping to deadlines. Prioritisation can be applied to requirements, tasks, products, use cases, us. r stories, acceptance criteria and tests. MoSCoW is a techn.
Cash at End of Period. $87,971. $107,163. $91,584. Download This Plan. Explore a real-world hair and beauty salon business plan example and download a free template with this information to start writing your own business plan.
Vnukovo, formally Vnukovo Andrei Tupolev International Airport, is a dual-runway international airport located in Vnukovo District, 28 km southwest of the centre of Moscow, Russia.
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Discover peace of mind and emerge refreshed at Quantum Spa & Health Club at Ararat Park Hyatt Moscow. Soap Massage. 60 min. — RUB 13 000. 90 min. — RUB 16 000. A relaxing program that is the best technique for skin cleansing and ultimate pampering. It starts with deep peeling over the entire body and is complemented by a full-body foam ...